RNS Number:4817K
Spintab AB
29 April 2003
Interim Report
January - March 2003
SPINTAB
JANUARY-MARCH 2003 IN SUMMARY
* Net interest income increased to SEK 1,230 million (1,109)
* Loan Losses declined to SEK 46 million (59)
* Operating profit rose to SEK 1,027 million (906) during the first quarter
* Lending rose by SEK 8 (5) billion during the first quarter
to SEK 376 billion (346).
The Spintab Group, "Spintab," comprises the Parent Company, AB Spintab (publ),
and the wholly owned subsidiary ForeningsSparbanken Jordbrukskredit AB. The
Spintab Group is a wholly owned subsidiary of ForeningsSparbankenAB (publ)
(Swedbank).
Spintab provides long-term financing for housing, municipal investments, and
agricultural and forestry properties. The Spintab Group is quality certified
according to ISO 9001 and since April 10, 2003 is environmentally certified
according to ISO 14001.
Profit
Operating profit before appropriations and taxes amounted to SEK 1,027 million
(906). The return on equity was 17.4 percent (15.7). Net interest income was
higher than the corresponding period of 2002, amounting to SEK 1,230 million
(1,109). The higher net interest income is mainly the result OF a higher lending
volume.
Commissions payable
Commissions payable have increased by SEK 11 million or 9 percent mainly owing
to the positive development of the cooperation with the independent savings
banks and partly owned banks.
Operating expenses
Operating expenses were unchanged at SEK 37 million.
Loan losses
Loan losses amounted to SEK 46 million (59), equivalent to an annual loss level
of 0.05 percent (0.07).
Provisions for anticipated loan losses totaling SEK 460 million (520) as of
March 31, 2003. Specifications of loan losses and claims are shown in Notes 2
and 3.
Lending
Spintab's loan to the public rose by a net of SEK 29,550 million (20,317) during
the last four quarters amounting to SEK 375,587 million (346,037) as of March
31, 2003.
Loans for private homes rose by SEK 21,414 million and agricultural loans by
SEK 3.096 million. Loans for commercial properties rose by SEK 5,038 million.
Spintab's total market share was approximately 30 percent as of March 31, 2003.
Funding
Spintab continues to diversify its funding and as of March 31, 2003 had secured
48 percent of its total funding from foreign money and capital markets.
Shareholders' equity
A conditional shareholders' contribution of SEK 1.4 billion was received from
the Parent Company during the first quarter of 2003. The capital base was also
strengthened through a dated subordinated loan of SEK 970 million during the
same period.
Capital adequacy
As of March 31, 2003 the capital adequacy ratio was 11.8 percent (12.6), of
which the primary capital ratio was 9.3 percent(9.5).
Interest rate risk
An increase in market interest rates of one percentage point as of March
31, 2003 would have reduced the value of Spintab's interest-bearing assets and
liabilities, including derivatives, by approximately SEK 403 million (423).
A one-percent increase in market interest rates would have increased net profit
on financial operations by SEK 0 million (0).
Taxes
Profit has been charged with estimated tax.
Accounting change
The interim report has been prepared in accordance with recommendation RR 20 of
the Swedish Financial Accounting Standards Council and follows the same
accounting principles as the most recent annual report. The recommendations that
took effect on January 1, 2003 have been taken into account but have not had a
significant impact.
Financial reporting
Spintab's interim report for the first six months of 2003 will be released on
August 22, 2003.
Spintab Group - Key financial
highlights 1999 - 2003
2003* 2002* 2002 2001 2000 1999
Lending
Loan volume, SEK m. 375,587 346,037 367,645 340,997 321,332 307,777
Doubtful, restructured and
non-performing
loans, net SEK m. 481 619 553 631 886 1,716
Profitability
Operating profit, SEK m, 1,027 906 3,839 3,487 3,116 2,901
Interest margin, % 1.07 0.98 1.01 1.02 0.94 0.88
Investment margin, % 1.25 1.25 1.22 1.22 1.17 1.14
Expense ratio, % 0.04 0.04 0.04 0.05 0.07 0.10
Income/expense ratio before
loan losses 0.03 0.04 0.04 0.04 0.06 0.09
Income/expense ratio after
loan losses 0.07 0.10 0.07 0.09 0.13 0.15
Return in equity, % 17.4 15.7 15.9 14.5 13.1 12.3
Earnings per share, SEK 32,14 28,35 120.18 109.17 97.87 91.04
Capital
Capital base, SEK m. 22,411 21,638 20,048 21,879 21,922 22,704
Equity, SEK m. 18,390 16,897 16,251 16,245 16,224 16,206
Number of shares at
beginning/end of period,
million 23 23 23 23 23 23
Equity per share, SEK 799.60 734.65 706.59 706.30 705.39 704.61
Capital adequacy ratio, % 11.8 12.6 10.8 13.1 13.2 14.7
Primary capital, % 9.3 9.5 8.8 9.7 9.8 10.5
Credit quality
Loan losses, SEK m. 46 59 128 194 246 218
Loan loss level, % 0.05 0.07 0.04 0.06 0.08 0.07
Provision ratio for doubtful
claims, % 78.1 85.0 73.4 77.4 61.5 54.9
Share of doubtful claims, % 0.03 0.03 0.05 0.04 0.10 0.24
*as of March 31
Profit and loss account
The Group AB Spintab
March 31 March 31 Change March 31 March 31 Change
SEK million 2003 2002 % 2003 2002 %
Interest receivable 5,482 5,049 8 5,402 4,980 8
Interest payable -4,262 -3,940 8 -4,266 -3,940 8
NET INTEREST INCOME 1,230 1,109 11 1,136 1,040 9
Commissions receivable 9 10 -10 7 9 -22
Commissions payable -131 -120 9 -119 -110 8
Net profit on financial
operations Note 1 0 -1 - 0 -1 -
Other operating Income 2 4 -50 2 3 -33
TOTAL INCOME 1,110 1,002 11 1,026 941 9
Staff Costs -6 -6 0 -5 -5 0
Other administrative
expenses -28 -27 4 -28 -26 8
Depreciation of tangible
fixed assets -3 -4 -25 -3 -4 -25
Other operating expenses 0 0 - 0 0 -
TOTAL EXPENSES BEFORE
LOAN LOSSES -37 -37 0 -36 -35 3
Loan losses Note 2 -46 -59 -22 -46 -59 -22
OPERATING PROFIT 1,027 906 13 944 847 11
Tax on profit for the
period -288 -254 13 -264 -237 11
PROFIT FOR THE PERIOD 739 652 13 680 610 11
Balance sheet
The Group AB Spintab
SEK million March 31 March 31 Dec 31 March 31 March 31 Dec 31
2003 2002 2002 2003 2002 2002
Treasury bills - 99 100 - 99 100
Loans 10 credit
institutions Note 3 19,564 8,804 6,597 40,205 28,360 26,094
Loans to the public Note 3 375,587 346,037 367,645 353,524 327,072 346,655
Other assets 5,117 7,379 5,021 6,253 8,515 6,280
TOTAL ASSETS 400,268 362,319 379,363 399,982 362,046 379,129
Liabilities
Amounts owed to
credit institution 10,724 18,528 12,717 10,724 18,528 12,717
Debt securities in issue
Bonds 270,871 215,853 247,351 270,871 215,853 247,351
Commercial paper, other 84,223 92,004 86,226 84,223 91,999 86,226
Other liabilities 11,090 13,511 12,818 10,996 13,418 12,717
Subordinated liabilities 4,970 5,526 4,000 4,970 5,526 4,000
TOTAL LIABILITIES 381,878 345,422 363,112 381,784 345,324 363,011
Untaxed reserves - - - 138 143 138
Shareholders' equity
Subscribed Capital 11,600 11,600 11,600 11,600 11,500 11,500
Restricted reserves 3,353 3,357 3,353 3,100 3,100 3,100
Profit brought forward 2,798 1,388 -1,366 2,780 1,369 -1,388
Profit for the period 739 652 2,764 680 610 2,768
TOTAL SHAREHOLDERS' EQUITY 18,390 16,897 16,251 18,060 16,579 15,980
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 400,268 362,319 379,363 399,982 362,046 379,129
Note 1. Net profit on financial operations
This item consists mainly of gains and losses in connection with securities
trading within the framework of Spintab's investment guidelines.
Note 2 Loan losses, net
January - March
The Group AB Spintab
SEK million 2003 2002 2003 2002
Claims assess individually
The year's write-off for established
loan losses 45 26 45 26
Reversal of previous provisions for
anticipated loan losses reported in the
year's account as established -35 -20 -35 -20
The year's provisions for anticipated
loan losses 42 33 42 33
Recoveries from previous years' established
loan losses -3 -7 -3 -7
Recovered provisions for anticipated loan
losses -15 -16 -15 -16
The year's net expenses 34 16 34 16
Collective provisions for individually
assessed claims
Allocation to reserve for anticipated losses 11 40 11 40
Collectively valued homogenous groups of
claims with limited value and similar credit
risk
The year's write-off for established loan
losses 6 7 6 7
Recoveries from previous years' established
loan loses -1 -3 -1 -3
Allocations/withdrawals from loan
loss reserve -4 -1 -4 -1
The year's net expense for collectively
assessed claims 1 3 1 3
The year's net loan loss expense 46 59 46 59
Note 3 Claims
(Loans to credit institutions and loans to the public)
The Group AB Spintab
SEK million March 31 March 31 Dec 31 March 31 March 31 Dec 31
2003 2002 2002 2003 2002 2002
Accrued acquisition value 395,611 355,361 374,704 394,186 353,950 373,208
(before accounting for provisions)
Specific provisions for individually
assessed claims -300 -297 -309 -297 -295 -306
Provisions for collectively valued
homogenous groups of claims with limited
value and similar credit risk -46 -62 -101 -48 -62 -101
Collective provisions for claims assessed
individually -112 -161 -52 -112 -161 -52
TOTAL PROVISIONS -460 -520 -462 -457 -518 -459
BOOK VALUE 395,151 354,841 374,242 393,729 353,432 372,749
Total provision ratio for doubtful
claims, % 78.1 85.0 73.4 78.6 85.5 73.9
Provision ratio for individually identified
doubtful claims, % 59.1 58.5 57.3 59.3 58.9 57.6
Doubtful claims
Book value of doubtful claims
(unsettled) 241 254 269 236 249 264
Doubtful claims as % of total lending 0.03 0.03 0.05 0.04 0.03 0.05
Unsettled claims for which interest has been
entered as income
Book value of unsettled claims not included in
doubtful claims and for which accrued interest
has been entered as income 321 465 356 303 441 334
Restructured and reclassified claims
Book value of claims restructured during
the financial period before restructuring 93 28 135 93 28 135
Book value of claims restructured during
the financial period after restructuring 33 26 88 33 26 88
Book value of doubtful claims returned
in status to normal claims during the
financial period 14 33 84 14 33 84
Specification: Loan receivables
Sector Private Real estate Other Munici Credit
SEK million Individuals management corporate lending palities Institutions Total
Accrued acquisition value before
provisions 275,383 81,873 10,861 7,930 19,564 395,611
Specific provisions for claims
assessed individually 25 251 24 300
Collective provisions for claims
assessed individually 112 112
Provisions for collectively
valued homogenous groups 48 48
Book value for claims taking
provisions into account 275,310 81,510 10,837 7,930 19,564 395,151
Book value of doubtful claims 19 218 5 242
(unsettled)
Book value of non-performing 193 128 321
loans where interest is
entered as income
Consolidated statement of cash flows
January - March, The Group AB Spintab
SEK million 2003 2002 2003 2002
Liquid assets at beginning of period* 4,149 1,143 23,647 18,232
Operating activities
Operating profit 1,027 906 944 847
Adjustment for non-cash items including
taxes paid 2,465 1,580 1,668 1,874
Increase/decrease in loans to the public -7,989 -5,099 -6,915 -4,498
Increase/decrease in
holdings of securities, classified as
current assets - - - -
Increase/decrease in borrowings from the
public including retail bonds 66 66 66 66
Increase/decrease in amounts owed to credit
institutions -4,995 -5,883 -4,995 -5,883
Change in other assets and liabilities, net -699 -2,395 353 -2,662
Cash flow from operating activities -10,125 -10,822 -8,879 -10,256
Investing activities
Change in fixed assets -1 -13 -101 -113
Cash flow from investing activities -1 -13 -101 -113
Financing activities
Issuance of interest-bearing securities 47,078 33,736 47,078 33,736
Redemption of interest-bearing securities -22,844 -31,198 -22,844 -31,198
Shareholders' contribution 1,400 - 1,400 -
Increase/decrease in other funding -1,812 8,617 -1,812 8,617
Group contribution paid -3,830 - -3,830 -
Cash flow from financing activities 19,992 11,155 19,992 11,155
Cash flow for the period 9,866 317 11,012 786
Liquid assets at end of period* 14,015 1,460 34,659 19,018
* of which securities pledged
at beginning of period 100 50 100 50
at end of period 0 100 0 100
Liquid assets include, where applicable, cash and balances with central banks,
for net claims the net of demand loan receivables and demand loan liabilities
with maturities up to five days, and Treasury bills and mortgage bonds
eligible for refinancing with Sveriges Riksbank (the central bank), taking into
account repos and short-selling.
Changes in shareholders' equity
Subscribed Other Non-restricted
Group, SEK million capital reserves equity Total
Opening Balance Jan. 1, 2002 11,500 3,357 1,388 16,245
Group contribution paid -3,830 -3,830
Tax reduction due to Group contribution paid 1,072 1,072
Change in tax allocation reserve -4 4 0
Profit for the period 2,764 2,764
Closing Balance Dec. 31, 2002 11,500 3,353 1,398 16,251
Conditional shareholders' contribution 1,400 1,400
Profit for the period 739 739
Closing Balance March 31, 2003 11,500 3,353 3,537 18,390
Subscribed Other Non-restricted
AB Spintab, SEK million capital reserves equity Total
Opening Balance Jan. 1, 2002 11,500 3,100 1,370 15,970
Group contribution paid -3,830 -3,830
Tax reduction due to Group contribution paid 1,072 1,072
Profit for the period 2,768 2,768
Closing Balance Dec. 31, 2002 11,500 3,100 1,380 15,980
Conditional shareholders' contribution 1,400 1,400
Profit for the period 680 680
Closing Balance March 31, 2003 11,500 3,100 3,460 18,060
Specification of Derivatives in the Group on March 31, 2003
Interest rate- Foreign exchange-
related related
Fair Book Fair Book
SEK million value value value value
Derivatives with positive values 1,423 525 1,661 92
Derivatives with negative values 2,014 664 6,497 246
Other derivatives
Credit default swap with fair value SEK 0 million and book value
SEK - 1 million.
The above figures include accrued coupon interest. All derivatives are covered
by hedge accounting, since they are held to eliminate interest and currency
risks. The reported differences between book and fair value are matched by
equivalent offsetting differences between the book and fair values in Spintab's
lending and funding.
Spintab's Ratings
S&P Moody's Fitch
Long-term - Aa3 AA-
Short-term A-1 P-1 F-1+
Stockholm, April 29, 2003
Mikael Inglander
President and CEO
This interim report has not been reviewed by the company's auditors.
For further information, please contact:
Mikael Inglander, President and Chief Executive Officer
Phone +46-8-5859 1314
Mr. Par Sandberg, Head of Accounting
Phone +46-8-5859-1338
This information is provided by RNS
The company news service from the London Stock Exchange
END
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