Stadshypotek's interim report January - March 2012

FINANCIAL PERFORMANCE

January to March 2012 compared with January to March 2011
For the period January to March 2012, operating profit increased by SEK 530
million to SEK 1,944 million (1,414). Net interest income amounted to SEK 1,958
million (1,438), with the branch in Norway accounting for SEK 116 million (105),
the branch in Denmark accounting for SEK 23 million (19) and the branch in
Finland, established on 1 May 2011, accounting for SEK 48 million (-). Excluding
these branches, net interest income thus rose by SEK 457 million, which was due
to an increase in lending volume and to improved margins as a result of the
company's good position in the funding market. Net gains/losses on financial
items at fair value amounted to SEK 56 million (31).

Expenses rose by SEK 5 million to SEK 66 million (61), primarily due to
increased costs for purchased services from the parent company and IT expenses
related to the branch in Finland. Net loan losses amounted to SEK -3 million
(10). Before deduction of the provision for probable loan losses, the volume of
impaired loans was SEK 112 million (93). Of this amount, non-performing loans
accounted for SEK 74 million (45), while SEK 38 million (48) related to loans on
which the borrowers pay interest and amortisation, but which are nevertheless
considered impaired. There were also non-performing loans of SEK 1,042 million
(542) that are not classed as being impaired loans. After deductions for
specific provisions totalling SEK -49 million (-36) and collective provisions of
SEK -7 million (-6) for probable loan losses, impaired loans totalled SEK 56
million (51).

Q1 2012 compared with Q4 2011
Stadshypotek's operating profit for the first quarter of 2012 increased by SEK
303 million to SEK 1,944 million (1,641). Net interest income increased by SEK
244 million to SEK 1,958 million (1,714). SEK 116 million (91) of the net
interest income was attributable to the branch in Norway, SEK 23 million (25) to
the branch in Denmark and SEK 48 (46) million to the branch in Finland.
Excluding these branches, net interest income thus rose by SEK 219 million. Net
gains/losses on financial items at fair value amounted to SEK 56 million (23).

Expenses decreased by SEK 19 million to SEK 66 million (85), mainly due to a
reduction of SEK 17 million in administrative expenses. The reduction was mainly
due to the fact that administrative expenses during the fourth quarter were
charged with higher expenses for updating existing foreign loan programmes and
with the initial expenses associated with setting up loan programmes for covered
bonds in Australia and Norway.

GROWTH IN LENDING
During the period, loans to the public increased by SEK 2 billion (14) to SEK
846 billion.

CAPITAL ADEQUACY
The capital ratio according to Basel II was 56.8 per cent (49.1) while the Tier
1 ratio calculated according to Basel II was 40.3 per cent (37.7). Further
information on capital adequacy is provided in the "Capital base and capital
requirement" section on page 15.

RATING
Stadshypotek's rating remained unchanged during the year, with a stable outlook.



                   Covered
 Stadshypotek        bonds    Long-term    Short-term
-----------------------------------------------------
 Moody's               Aaa            -           P-1

 Standard & Poor's                  AA-          A-1+

 Fitch                              AA-           F1+




Stockholm, 26 April 2012

Per Beckman
Chief Executive

For more information about Stadshypotek, please go to: www.stadshypotek.se




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