Interim report 1 January - 30 June 2010
(Thomson Reuters ONE) -
The Swedish Covered Bond Corporation (SCBC)
Summary June 2010 June 2009
Net interest income, SEK million 648 203
Operating profit/loss, SEK million 445 -405
Net profit/loss for the period,
SEK million 328 -298
Lending, SEK billion 200.9 157.4
Capital adequacy ratio, % 10.3 12.3
Tier 1 capital ratio, % 10.3 12.3
Volume of international funding,
SEK billion 73.0 68.1
Rating, long-term funding
Standard & Poor's AAA AAA
Moody's Aaa Aaa
All profit and loss figures in parentheses pertain to the year-earlier period.
For balance-sheet items and capital adequacy, the comparative period corresponds
to the immediately preceding year-end.
This is a translation of the Swedish interim report. The auditor has not signed
the translation for approval.
Organisation
The Swedish Covered Bond Corporation, SCBC, is a wholly owned subsidiary of The
Swedish Housing Finance Corporation, SBAB. SCBC conducts its operations in such
a manner that they comply with the requirements specified in the Covered Bonds
Act (2003:1223) and the Swedish Financial Supervisory Authority's regulations
FFFS 2004:11.
Operating profit
SCBC reported an operating profit of SEK 445 million (loss: 405) for the first
six months of 2010. The change was due to "Net income from financial instruments
measured at fair value", which derived from unrealised changes in the market
value of derivative instruments and hedged items. SCBC's total operating income
increased compared with the year-earlier period to SEK 681 million (expense:
188).
Net interest income amounted to SEK 648 million (203). The stability fee
amounted to SEK 16.1 million (-). Expenses for the period totaled SEK 221
million (221). Net loan losses amounted to SEK -15 million (4).
Lending
SCBC does not conduct any new lending activities itself, but acquires loans from
SBAB on an ongoing basis or as required. The intention of the acquisitions is
for these loans to be included in full or in part in the cover pool that serves
as collateral for SCBC's covered bond investors. SCBC's portfolio mainly
comprises loans for residential mortgages, with the retail market as the largest
segment. The portfolio contains no loans for purely commercial properties.
Information regarding SCBC's cover pool is published monthly on scbc.se.
Funding
SCBC's operations are primarily focused on issuing covered bonds in the Swedish
and international capital markets. For this purpose, the company uses two
funding programmes: the Swedish mortgage bond programme for the issuance of
covered bonds and SCBC's EUR 10 billion Euro Medium Term Covered Note Programme.
Both programmes received the highest possible long-term ratings of Aaa and AAA
from the rating agencies Moody's and Standard & Poor's.
SCBC's funding is conducted through the issuance of covered bonds, and to a
certain extent through repo transactions. In addition, SCBC receives funding in
the form of a subordinated loan from SBAB. The value of debt securities in issue
totaled SEK 157.7 billion (139.9). Programme utilisation on 30 June 2010 was as
follows: Swedish covered bonds SEK 83.1 billion (83.9) and Euro Medium Term
Covered Note Programme EUR 7.5 billion (5.2).
The average maturity of the debt portfolio has been extended through continuous
issuances and repurchases in the international and Swedish covered bond markets.
Covered bonds are still the SBAB Group's principal source of funding.
Capital adequacy
SCBC reports credit risk mainly in accordance with the internal ratings-based
approach (IRB approach), and reports operational and market risk in accordance
with the standardised approach. Taking into account the transitional
regulations, the capital quotient was 1.29 (1.39) and the capital adequacy ratio
and Tier 1 capital ratio amounted to 10.3 % (11.1). In accordance with Basel II,
without taking the transitional regulations into account, the capital quotient
was 3.63 (4.14), while the capital adequacy ratio and Tier 1 capital ratio
amounted to 29.0 % (33.1). The calculation of Tier 1 capital and total capital
includes profit for the period.
Accounting policies
SCBC applies statutory IFRS, which means that the interim report has been
prepared in compliance with IFRS subject to the additions and exceptions that
ensue from the Swedish Financial Reporting Board's recommendation RFR 2.3
Accounting for Legal Entities, Finansinspektionen's (The Swedish Financial
Supervisory Authority's) regulations and general guidelines on annual reports in
credit institutions and securities companies undertakings (FFFS 2008:25) and the
Annual Accounts (Credit Institutions and Securities Companies) Act.
This interim report complies with the requirements specified in IAS 34 Interim
Financial Reporting and IAS 1 Presentation of Financial Statements. The
accounting policies and calculation methods remain unchanged compared with the
2009 Annual Report.
Significant events after the balance-sheet date
* No events of material importance to assessments of the company's financial
position have occurred after the close of the report period.
Financial information
The next financial report scheduled for publication is the year-end report for
2010.
The Board of Directors and Managing Director certify that the interim report
provides a fair view of the company's operations, position and earnings, and
describes the significant risks and uncertainties to which the company is
exposed.
Stockholm, 21 July 2010
Eva Cederbalk
Chairman of the Board
Bo Andersson Per Balazsi Johan Brodin
Board Member Board Member Board Member
Johanna Clason
Managing Director
[HUG#1433578]
Interim report 1 January - 30 June 2010: http://hugin.info/141447/R/1433578/379359.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: SCBC via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 23.07.2010 - 10:01 Uhr
Sprache: Deutsch
News-ID 24353
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contact information:
Town:
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Kategorie:
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"Interim report 1 January - 30 June 2010"
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