RNS Number:2709R
Spintab AB
24 October 2003
Spintab
INTERIM REPORT
JANUARY - SEPTEMBER 2003 IN SUMMARY
* Lending rose by SEK 24 billion during the first nine months to
SEK 392 billion
* Net interest income increased to SEK 3,631 million (3,373)
* Operating profit rose to SEK 3,091 million (2,841) during the third quarter
* Loan Losses declined to SEK 80 million (112)
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 ForeningsSparbanken AB (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 environmentally certified according to ISO 14001.
Profit
Operating profit before appropriations and taxes amounted
to SEK 3,091 million (2,841). The return on equity was 16.2
percent (15.8). Net interest income was higher than the
corresponding period of 2002, amounting to SEK 3,631million
(3,373). The higher net interest income is mainly the
result of a higher lending volume.
Commissions payable
Commissions payable have increased by SEK 41 million or
12 percent, mainly owing to the positive development of
the cooperation with the independent savings banks and
partly owned banks.
Operating expenses
Operating expenses has been reduced with SEK 9 million
and amounted to SEK 102 million (111).
Loan losses
Loan losses amounted to SEK 80 million (112), equivalent
to an annual loss level of 0.03 percent (0.04).
Provisions for anticipated loan losses totaling SEK 389
million (488) as of September 30, 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 32,751 million
(23,586) corresponding period of 2002, amounting to
SEK 392,071 million (359,320) as of September 30, 2003.
Loans for private homes rose by SEK 24,418 million and
agricultural loans by SEK 3,806 million. Loans for commercial
properties rose by SEK 4,527 million.
Spintab's total market share was approximately 30 percent
as of August 31, 2003, according to statistics from The
Swedish Central bank.
Funding
51 percent of the total funding has been raced from foreign
money and capital markets.
Shareholders' equity
A conditional shareholders' contribution of SEK 1.4 billion
was received from the Parent Company during 2003. The
capital base was also strengthened through two dated subordinated
loans of SEK 970 and 1,368 million during the
same period.
Capital adequacy
As of September 30, 2003 the capital adequacy ratio was
11.3 percent (12.0), of which the primary capital ratio was
8.7 percent (9.0).
Interest rate risk
An increase in market interest rates of one percentage
point as of September 30, 2003 would have reduced the
value of Spintab's interest-bearing assets and liabilities,
including derivatives, by approximately SEK 351 million
(383).
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 in 2003 have been
taken into account but have not had a significant impact.
Financial reporting
Spintab's year-end report of 2003 will be released on
February 16, 2004.
Spintab Group - Key Financial Highlights 1999 - 2003
2003* 2002* 2002 2001 2000 1999
Lending
Loan volume, SEK m. 392,071 359,320 367,645 340,997 321,332 307,777
Doubtful, restructured and non-performing
loans, net SEK m. 383 613 553 631 886 1,716
Profitability
Operating profit, SEK m. 3,091 2,841 3,839 3,487 3,116 2,901
Interest margin, % 1.01 1.00 1.01 1.02 0.94 0.88
Investment margin, % 1.18 1.23 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 0.06 0.07 0.07 0.09 0.13 0.15
Return in equity, % 16.2 15.8 15.9 14.5 13.1 12.3
Earnings per share, SEK 96.78 88.91 120.18 109.17 97.87 91.04
Capital
Capital base, SEK m. 22,877 21,607 20,048 21,879 21,922 22,704
Equity, SEK m. 19,877 18,290 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 864.22 795.22 706.59 706.30 705.39 704.61
Capital adequacy ratio, % 11.3 12.0 10.8 13.1 13.2 14.7
Primary capital, % 8.7 9.0 8.8 9.7 9.8 10.5
Credit quality
Loan losses, SEK m. 80 112 129 194 246 218
Loan loss level, % 0.03 0.04 0.04 0.06 0.08 0.07
Provision ratio for doubtful claims, % 91.4 85.0 73.4 77.4 61.5 54.9
Share of doubtful claims, % 0.01 0.02 0.05 0.04 0.10 0.24
* as of September 30
Profit and loss account, the Group
SEK million Jan. - Sept. Jan. - Sept. Change July - Sept. July - Sept. Change
2003 2002 % 2003 2002 %
Interest receivable 16,502 15,902 4 5,536 5,545 0
Interest payable - 12,871 - 12,529 3 - 4,330 - 4,443 - 3
NET INTEREST INCOME 3,631 3,373 8 1,206 1,102 9
Commissions receivable 28 31 - 10 9 10 - 10
Commissions payable - 392 - 351 12 - 134 - 115 17
Net profit on financial
operations Note 1 - 2 2 - 0 0 -
Other operating income 8 9 - 11 2 3 - 33
TOTAL INCOME 3,273 3,064 7 1,083 1,000 8
Staff costs - 17 - 17 0 - 5 - 5 0
Other administrative expenses - 77 - 80 - 4 - 26 - 25 4
Depreciation of tangible fixed assets - 8 - 13 - 38 - 3 - 5 - 40
Other operating expenses 0 - 1 - 0 0 -
TOTAL EXPENSES BEFORE
LOAN LOSSES - 102 - 111 - 8 - 34 - 35 - 3
Loan losses Note 2 - 80 - 112 - 29 0 - 9 -
OPERATING PROFIT 3,091 2,841 9 1,049 956 10
Tax on profit for the period - 865 - 796 9 - 293 - 268 9
PROFIT FOR THE PERIOD 2,226 2,045 9 756 688 10
Earnings per share, SEK* 96.78 88.91 32.87 29.91
Profit and Loss Account, AB Spintab
SEK million Jan. - Sept. Jan. - Sept. Change July - Sept. July - Sept. Change
2003 2002 % 2003 2002 %
Interest receivable 16,223 15,717 3 5,447 5,495 - 1
Interest payable - 12,885 12,545 3 - 4,336 - 4,460 - 3
NET INTEREST INCOME 3,338 3,172 5 1,111 1,035 7
Commissions receivable 23 26 - 12 8 8 0
Commissions payable - 357 - 324 10 - 121 - 105 15
Net profit on financial operations Note 1 - 2 2 - 0 1 -
Other operating income 8 9 - 11 3 3 0
TOTAL INCOME 3,010 2,885 4 1,001 942 6
Staff costs - 16 - 15 7 - 5 - 4 25
Other administrative expenses - 75 - 79 - 5 - 25 - 26 - 4
Depreciation of tangible fixed assets - 8 - 13 - 38 - 3 - 5 - 40
Other operating expenses 0 - 1 - 0 0 -
TOTAL EXPENSES BEFORE
LOAN LOSSES - 99 - 108 - 8 - 33 - 35 - 6
Loan losses Note 2 - 81 - 111 - 27 0 - 8 -
OPERATING PROFIT 2,830 2,666 6 968 899 8
Tax on profit for the period - 792 - 746 6 - 271 - 251 8
PROFIT FOR THE PERIOD 2,038 1,920 6 697 648 8
Earnings per share, SEK* 88.61 83.48 30.30 28.17
*Based on 23 million shares
Balance Sheet The Group AB Spintab
Sept.30 Sept.30 Dec.31 Sept.30 Sept.30 Dec.31
SEK million 2003 2002 2002 2003 2002 2002
Assets
Treasury bills - - 100 - - 100
Loans to credit institutions Note 3 38,774 17,545 6,597 60,817 36,226 26,094
Loans to the public Note 3 392,071 359,320 367,645 368,162 339,215 346,655
Other assets 6,370 7,915 5,021 7,752 8,937 6,280
TOTAL ASSETS 437,215 384,780 379,363 436,731 384,378 379,129
Liabilities
Amounts owed to credit institutions 37,852 13,911 12,717 37,852 13,911 12,717
Debt securities in issue
Bonds 273,019 227,825 247,351 273,019 227,825 247,351
Commercial papers, other 93,180 112,245 86,226 93,180 112,242 86,226
Other liabilities 7,857 6,958 12,818 7,694 6,817 12,717
Subordinated liabilities 5,430 5,551 4,000 5,430 5,551 4,000
TOTAL LIABILITIES 417,338 366,490 363,112 417,175 366,346 363,011
Untaxed reserves - - - 138 143 138
Shareholders' equity
Subscribed capital 11,500 11,500 11,500 11,500 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 2,226 2,045 2,764 2,038 1,920 2,768
TOTAL SHAREHOLDERS' EQUITY 19,877 18,290 16,251 19,418 17,889 15,980
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 437,215 384,780 379,363 436,731 384,378 379,129
Group receivables
Parent Company 34,986 16,947 5,512 34,876 16,630 5,421
Subsidiaries - - - 23,713 19,988 21,017
Group liabilities
Parent Company 60,692 28,605 35,956 60,692 28,605 35,956
Assets pledged
Assets pledged for own liabilities 5,780 625 2,657 5,780 625 2,657
Securities pledged as collateral for
forward contracts - - 100 - - 100
Commitments
Loans to the public, amount granted
but not utilized 6,822 5,886 6,135 6,234 5,503 5,738
Interest rate and currancy-related
contracts 316,109 278,361 249,096 316,109 278,361 249,096
Conditional shareholder's contribution 1,400 - - 1,400 - -
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 - September
The Group AB Spintab
SEK million 2003 2002 2003 2002
Claims assessed individually
The period's write-off for established loan losses 156 113 156 112
Reversal of previous provisions for anticipated loan losses
reported in the year's accounts as established - 130 - 63 - 130 - 63
The year's provisions for anticipated loan losses 54 55 54 55
Recoveries from previous years' established loan losses - 17 - 20 - 17 - 20
Recovered provisions for anticipated loan losses - 55 - 26 - 54 - 26
The year's net expense 8 59 9 58
Collective provisions for individually assessed claims
Allocation to reserve for anticipated losses 65 45 65 45
Collectively valued homogenous groups of claims with limited
value and similar credit risk
The year's write-off for established loan losses 15 20 15 20
Recoveries from previous year's established loan losses - 1 - 5 - 1 - 5
Allocations/withdrawals from loan loss reserve - 7 - 7 - 7 - 7
The year's net expense for collectively assessed claims 7 8 7 8
The year's net loan loss expense 80 112 81 111
NOTE 3, CLAIMS
(Loans to credit institutions and loans to the public)
The Group AB Spintab
Sept.30 Sept.30 Dec.31 Sept.30 Sept.30 Dec.31
2003 2002 2002 2003 2002 2002
Accrued acquisition value
(before accounting for provisions) 431,234 377,353 374,704 429,366 375,927 373,208
Specific provisions for individually
assessed claims - 177 - 275 - 309 - 175 - 273 - 306
Provisions for collectively valued
homogenous groups of claims with
limited value and similar credit risk - 166 - 157 - 101 - 166 - 157 - 101
Collective provisions for claims assessed
individually - 46 - 56 - 52 - 46 - 56 - 52
TOTAL PROVISIONS - 389 - 488 - 462 - 387 - 486 - 459
BOOK VALUE 430,485 376,865 374,242 428,979 375,441 372,749
Total provision ratio for doubtful
claims, % 91.4 85.0 73.4 92.1 85.6 73.9
Provision ratio for individually
identified doubtful claims, % 52.3 57.6 57.3 52.6 57.8 57.6
Doubtful claims
Book value of doubtful claims (unsettled) 203 243 269 199 239 264
Doubtful claims as % of total lending 0.01 0.02 0.05 0.01 0.02 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 315 490 356 301 467 334
Restructured and reclassified claims
Book value of claims restructured during
the financial period before restructuring 100 102 135 100 102 135
Book value of claims restructured during
the financial period after restructuring 38 70 88 38 70 88
Book value of doubtful claims returned in
status to normal claims during the
financial period 81 40 84 81 40 84
Specification: Loan receivables
Sector
SEK million Private Real estate Other Credit
individuals management corporate Munici- institution Total
lending palities
Accrued acquisition value before
provisions 290,441 83,968 10,338 7,713 38,774 431,234
Specific provisions for claims
assessed individually - 22 - 151 - 4 - 177
Collective provisions for claims assessed
individually - 166 - 166
Provisions for collectively valued
homogenous groups - 46 - 46
Book value for claims taking provisions
into account 290,373 83,651 10,334 7,713 38,774 430,845
Book value of doubtful claims (unsettled) 17 186 203
Book value of non-performing loans
where interest is entered as income 182 133 315
Changes in shareholders' equity
The Group AB Spintab
Non- Sub- Non-
Subscribed Other restricted Total scribed Other restricted Total
capital reserves equity capital Reserves Equity
CLOSING BALANCE DEC. 31, 2002 11,500 3,353 1,398 16,251 11,500 3,100 1,380 15,980
Conditional shareholders' contribution 1,400 1,400 1,400 1,400
Profit for the period 2,226 2,226 2,038 2,038
CLOSING BALANCE SEPT. 30, 2003 11,500 3,353 5,024 19,877 11,500 3,100 4,818 19,418
The Group AB Spintab
Non- Sub- Non-
Subscribed Other restricted Total scribed Other restricted Total
capital reserves equity capital Reserves Equity
CLOSING BALANCE DEC. 31, 2002 11,500 3,357 1,388 16,245 11,500 3,100 1,380 15,969
Profit for the period 2,045 2,045 1,920 1,920
CLOSING BALANCE SEPT. 30, 2003 11,500 3,357 3,433 18,290 11,500 3,100 3,300 17,889
Condensed statement of cash flows
January - September The Group AB Spintab
SEK million 2003 2002 2003 2002
LIQUID ASSETS AT BEGINNING OF PERIOD* 2,887 1,143 19,996 14,231
Operating activities
Operating profit 3,091 2,841 2,830 2,666
Adjustment for non-cash items including taxes paid - 1,921 - 2,245 - 2,201 - 1,415
Increase/decrease in holdings of securities classified
as current assets - 23,688 - 630 - 21,823 - 2,229
Increase/decrease in loans to the public - 24,507 - 18,435 - 21,587 - 16,694
Increase/decrease in borrowings from the public
including retail bonds 201 - 2,338 201 - 2,338
Increase/decrease in amounts owed to credit institutions 21,984 - 3,570 21,984 - 3,570
Change in other assets and liabilities, net -1,341 - 2,676 - 873 - 3,280
CASH FLOW FROM OPERATING ACTIVITIES - 26,181 - 27,053 - 21,469 - 26,860
Investing activities
Change in fixed assets - 2 - 26 - 302 - 226
CASH FLOW FROM INVESTING ACTIVITIES - 2 - 26 - 302 - 226
Financing activities
Issuance of interest-bearing securities 116,215 96,579 116,215 96,581
Redemption of interest-bearing securities - 89,317 - 79,259 - 89,317 - 79,259
Shareholders' contribution 1,400 - 1,400 -
Increase/decrease in other funding 6,954 28,477 6,654 28,477
Group contribution paid - 3,830 - 3,459 - 3,830 - 3,459
CASH FLOW FROM FINANCING ACTIVITIES 31,422 42,338 31,422 42,340
Cash flow for the period 5,239 15,259 9,651 15,254
LIQUID ASSETS AT END OF PERIOD* 8,126 16,402 29,647 29,485
*Of which securities pledged:
at beginning of period 100 50 100 50
at end of period 0 0 0 0
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.
SPECIFICATION OF DERIVATIVES IN THE GROUP ON SEPTEMBER 30, 2003
Interest rate Foreign exchange
SEK million related related
Fair Book Fair Book
value value value value
Derivatives with positive values 1,107 320 986 128
Derivatives with negative values 3,323 1,186 11,687 140
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, October 24, 2003
Jan Lilja
President and CEO
This interim report has not been reviewed by the company's auditors.
For further information, please contact:
Mr. Jan Lilja President and Chief Executive Officer
Phone +46-8-5859 1019
Mr. Par Sandberg, Head of Accounting
Phone +46-8-5859 1338
AB Spintab (publ)
Corporate identification no: 556003-3283
The Company has its registered office in Stockholm
Visiting address: Regeringsgatan 13
Postal address: S-106 11 Stockholm, Sweden
Telephone: +46-8-5859 21 00
Fax: +46-8-10 79 70
Telex: 12168 Spintab s
www.spintab.se
This information is provided by RNS
The company news service from the London Stock Exchange
END
QRTEAXELADXDFEE
