Annual report
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Landshypotek Bank Annual Report 2025 A With passion for a richer life countrywide Annual Report 2025
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Landshypotek Bank Annual Report 2025 B Contents Reporting calendar Annual General Meeting of Shareholders 23 April 2026 Interim Report January – March 6 May 2026 Interim Report January – June 20 July 2026 Interim Report January – September 26 October 2026 The year in figures 2 2025 in brief 3 CEO’s Statement 4 Events in 2025 6 Landshypotek Bank in brief 7 Administration Report 9 Corporate Governance Report 15 Financial statements and notes 29 Sustainability Report 77 Addresses 99
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Landshypotek Bank Annual Report 2025 1 Landshypotek Bank Annual Report 20251 Landshypotek is a specialist bank in savings and lend- ing, and has grown substantially in the past few years. Customers appreciate the bank’s simple and open nature, with transparent terms and conditions for mortgages and savings, in addition to its expertise in customer service and the circular business model of farming and forestry. The customer-centric challenger bank is increasingly seen as a strong alternative in the Swedish banking market. The bank was founded by customers back in 1836 and is still owned today by farming and forestry customers, organised under a cooperative association. The bank’s surplus is returned to these customers. Over the years, Landshypotek’s financing has facilitated hundreds of thousands of investments in a living and sustainable coun- tryside – in open landscapes, well-kept forests and locally produced food. T oday, savings accounts and mortgages with the bank provide safe finances and better living for people across the country. Our long history of financing and our roots in land use provide the security that Landshypotek needs to be a responsible bank that promotes long-term customer rela- tionships and cares about the environment and society. Landshypotek wants to increase customer value and so- cietal benefits – with a passion for a richer life throughout the country. With passion for a richer life countrywide
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Landshypotek Bank Annual Report 2025 2 Landshypotek Bank Annual Report 20252 million Net interest income amounted to SEK 1, 158 Operating profit amounted to SEK 502 million billion Lending amounted to SEK 118.2 Deposits amounted to SEK 25.9 billion The bank’s borrowing and savings customers totalled 123 thousand The Avg. No. of employees was 246 The year in figures
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Landshypotek Bank Annual Report 2025 3 On review of the year, Landshypotek demonstrated stability, continued developing to benefit customers and further strengthened its market position. In 2025, we grew robustly both in mort - gages and in lending for farming. When Swedish Quality Index presented its customer satisfac - tion measurement for mortgage banks, we captured one of the leading positions and, through growth and increased presence, we have continued to reinforce our market-leading position in lending for farming. Net profit for the year improved and was driven by more customers and increased lending. From this position of strength, we are now taking the next step in the bank’s journey. At the end of the year, the Board of Directors adopted a new strategy that strengthened our role as a savings and lending specialist bank, with a broadened offering and increased cus - tomer value. We are investing – with the ambition to create even greater customer value and to outpace market growth. Johan Ericson, CEO: SEK million 2025 2024 Net interest income 1,158 1,124 Operating profit 502 489 Profit after tax 393 381 Loans to the public 118,151 111,110 Change in loans to the public, % 6.3 6.1 Interest margin, L TM, % 1.00 1.05 Deposits from the public 25,945 27,090 Change in deposits from the public, % -4.2 -6.8 C/I ratio including financial transactions 0.53 0.53 C/I ratio excluding financial transactions 0.52 0.53 Credit loss level, % 1) 0.01 0.00 T otal capital ratio, % 23.2 19.6 Rating, long-term Standard & Poor’s, covered bonds AAA AAA Standard & Poor’s A A Fitch A A Average number of employees, L TM 246 236 1) An outcome is only presented in the case of a negative earnings impact. • Operating profit amounted to SEK 502 million (489). • The underlying operating profit, excluding the net result of financial transactions, was SEK 510 million (496). • Net interest income amounted to SEK 1, 158 million (1, 124). • Costs totalled SEK 621 million (603). • Net credit losses impacted earnings with SEK 14 million (loss: 4). • Loans to the public amounted to SEK 118.2 billion (111. 1). • Deposits from the public amounted to SEK 25.9 billion (27. 1). 2025 In brief
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Landshypotek Bank Annual Report 2025 4 CEO’s Statement Our financial performance improved on last year and we grew significantly faster than the market. Lending increased just over SEK 7 billion to a total of slightly more than SEK 118 billion. Our operating profit improved SEK 13 million to a total of SEK 502 million. This strong performance is built on the stability of our banking busi - ness, good credit quality and our market growth. Despite lending margin pressure, we increased our net interest income during the year to nearly SEK 1.2 billion. Landshypotek stands on very solid ground. Demand remains high for our covered bonds and we have good access to the capital market. Our credit quality is excel - lent. While we have raised our provisions for credit losses slightly, actual losses remain low. We continue to invest in the bank’s development and costs continue to rise in a controlled manner and in accordance with our plan. We also see great potential for continued growth by contributing even more value to the market and our customers. In 2025, we continued to grow in lending for farming and to reinforce our leading position. Farming is currently undergoing a bit of a resurgence with great interest from society. Many farmers also have positive outlooks thanks to good harvest outcomes, the forestry sector’s prolonged economic strength and increasing interest in Swedish-produced food. Society’s investments in sustainability and preparedness provide further hope for increased demand. Our close proximity to customers, From a position of strength, we are now taking the next step of our journey In a changing and challenging world, Landshypotek Bank strengthened its position going forward in 2025. Increasing numbers of customers have chosen us for loans and savings, and despite a cautious market and intense competition we have continued to grow our lending. Our operating profit also continues to improve – confirming our underlying strength as we now, with a new strategy, develop an even better bank for our customers and for the Swedish banking market.
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Landshypotek Bank Annual Report 2025 5 by developing the strength that lies in our foundation and our proximity to customers. Our ambition is to be proactive and personal and maintain customer focus throughout the business, taking responsibility for long- term relationships. In addition to strengthening customer relationships in lending, we will be placing particular focus on developing new savings offerings. At the same time, we are convinced that our value-driven foundation – with roots in Swedish farming and forestry – will attract more people, both farmers and other custom - ers. By offering secure opportunities to borrow and save, Landshypotek creates societal benefit and contributes to the development of the entire country. A bank like Landshypotek is sorely needed, one that cares about customers and society, with a clear heart and a passion for a richer life countrywide. We look for - ward to continued development in 2026. Johan Ericson CEO of Landshypotek Bank expertise and sector knowledge enables us to identify considerable potential in meeting the future needs and investment requirements of farms – both to increase pro - duction and to transition to more sustainable agriculture. Farmers are now gearing up to meet current expecta - tions and opportunities, and as the leading financier of the farming sector, we want to be there to facilitate this change of gear. In mortgages, the benefits of our customer interest rate transparency, ease of contact and our values are being recognised by more and more customers. This was confirmed by Swedish Quality Index’s major mortgage survey, where customers ranked us as one of the top banks for mortgages. While we grew substantially in the mortgage market at the start of the year when we started lending on tenant-owner apartments, the mortgage market has been subdued during the year. Following several years of strong deposit growth, 2025 was more of a challenge. While our deposit volumes posted a slight negative trend, they have remained stable. It is important for us to be able to offer competitive sav - ings rates and, in the long term, we are investing in new approaches to strengthen the customer offering. Our strong performance allows us to continue develop - ing Landshypotek and enables the cooperative associ - ation to propose a healthy dividend of SEK 216 million to our owners – farming and forestry customers. We have continued our development during the year in a time of rapid change where our short decision-making paths entail a clear strength. As the market has rapidly shifted, we have been able to act with the same pace, including in our interest rate decisions. As application volumes reached levels never before seen, the entire bank mobilised to meet the need. Many of the year’s developmental initiatives have strengthened us for the future. We have continued to lead the way with green bonds and we issued a unique green bond that also includes sustainable farming during the year. We also continued to develop new products and digital services as we maintained a high market pres - ence. Now, we are starting the next phase of our development. In the fourth quarter, the Board decided a new strategy for the coming years. We continue to invest in the bank’s future and are moving forward with planned investments and clear growth ambitions in all customer segments. Our performance demonstrates the clear need in the Swedish banking market for a strong customer-cen - tric challenger and a bank specialising in saving and lending. As such, we are consciously working to increase customer value and to become an even better every- day partner. We are doing this in part by broadening our offering and meeting more customer needs and in part Dividend for the year to farming and forestry customers Landshypotek Bank’s earnings facilitate the bank’s continued development. The earnings also allow for a healthy dividend to the owners in Landshypo - tek’s circular business model: our loan customers within farming and forestry. The Board of the cooperative association pro - poses a dividend of SEK 216 million to its members. This represents a return of 10 percent on each capital contribution and is a strong contribution to Swedish agriculture. The dividend will be pre - sented to the bank’s owners at this year’s regional meetings and a vote will be held at the Annual Association Meeting on 23 April. During the year, individual investments from mem - bers added a total of SEK 87 .5 million to contrib- uted capital, which helps strengthen the bank’s Common Equity Tier 1 capital, which amounted to SEK 2,159 million.
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Landshypotek Bank Annual Report 2025 6 Lower interest rates mean opportunities for customers During the year, Landshypotek has lowered its lending interest rates on multiple occasions, both for farm financ - ing and for mortgages. Following the interest rate peak in winter 2024, the lowered policy rate and continued falling market interest rates resulted in more stable interest rates in 2025. This has provided farmers with better conditions to plan their investments and concurrently encouraged mortgage customers to raise their activity. Spring dividend to farmers – SEK 207 million The Annual Association Meeting of Landshypotek Ekon - omisk Förening resolved to distribute a dividend of SEK 207 million to the members – our customers who borrow on farm and forest properties. This is the Landshypotek’s second highest dividend to date and clearly underlines the value of the cooperative model. The dividend was paid in May 2025 and corresponded to a yield of 10 percent on member contributions. In March, over 1,300 agricultural customers participated at the association’s regional meetings. Bank-wide efforts to combat fraud During the year, Landshypotek participated in the indus - try-wide initiative Become Scamaware – an information campaign against fraud coordinated by the Swedish Bankers’ Association. In parallel, the bank developed several proprietary services to strengthen customer protection, including functions that make it possible to delay payments. Fraud is a growing societal problem and, together with other banks, Landshypotek works actively to counter it. Green bonds deliver strong climate performance The effect of Landshypotek’s green bonds was high - lighted in reporting to investors in the spring. The bonds financing sustainable forestry across Sweden have con - tributed to carbon removal and substitution effects cor - responding to about 2.5 million tonnes of carbon dioxide. As a result, for every million SEK invested, approximately 220 tonnes of carbon is stored or avoided. Pioneering new initiative – Green framework now also includes farming Following the successful issue of green bonds linked to sustainable forestry, farming has now also been added to the updated green bond framework. This includes invest - ments in climate adaptation, reduced climate impact and increased biodiversity within farming. The framework was reviewed by S&P Global Ratings, one of the world’s leading assessors of green bond frameworks. Events in 2025 New capital adequacy rules creating opportunities The revised capital adequacy rules implemented on 1 January 2025 entailed a strengthening of the bank’s capital ratios as a result of the easing of capital require - ments. This is because Landshypotek’s core operations – lending against collateral in immovable property at low loan-to-value ratios – has a low risk profile. Participation in new TV series about Swedish farmers In February 2026, the series Svenska bönder (En: Swedish Farmers) had its premiere on Viaplay and TV3. Svenska bönder is a program following five farmers in their everyday lives and work. The initiative, which was presented in the autumn, was enabled by several agri - cultural organisations, with Landshypotek one of those participating. The series provides a close and realistic picture of life on farms and highlights the significance of farming in a society with a growing interest in Swedish food production and the countryside. Survey shows: Savers risk losing thousands A survey from Landshypotek Bank showed that the sav - ings interest rate at major banks has fallen drastically – in some cases approaching zero. Passive savers thus risk losing thousands of kronor every year. Landshypotek has also adjusted its savings interest rates, but continues to offer a competitive rate from the first krona, with no minimum amount or lock-in. Customers rank Landshypotek as top tier The Swedish Quality Index (SKI) shows that Landshy- potek belongs to those banks that are ranked highest by mortgage customers. The results confirm that customers appreciate transparent terms, clear communication and simplicity in their banking. High willingness to invest – but cautiousness persists The need for investments in agriculture is increasingly raised in public debates with the aim of strengthening food production, preparedness and the green transition. Lands- ypotek’s surveys show that willingness to invest among farmers is at its highest level since 2012. At the same time, many remain cautious due to the uncertain operating envi- ronment and are focusing on building buffers. More lending opportunities to housing and agriculture Landshypotek has raised its loan-to-value ratio for mort - gages from 75 percent to 85 percent, making it possible for more customers to finance their homes through the bank. T o meet the needs of farming businesses regard - ing flexibility, a new loan product that supplements the traditional property loan has been launched. It offers a credit limit that can be adapted over time and drawn in stages for, inter alia, construction projects, thus making it easier to manage changing financial needs.
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Landshypotek Bank Annual Report 2025 7 Landshypotek Bank – in brief • Landshypotek is a specialist bank for bor- rowing and for saving, that was founded back in 1836. In terms of lending, Landshypotek is now one of the ten largest banks in Sweden. The bank is also considered systemically important for lending to the farming and for- estry industries. • The bank is owned by its customers who borrow for farming and forest properties. They are also organised into the Lands - hypotek Ekonomisk Förening. Which makes Landshypotek the country’s largest mem - ber-owned bank. • The surplus from the bank’s operations is distributed to the owners in a circular busi- ness model, thereby supporting the continued development of Sweden’s farming and for- estry. This year, the Board of the cooperative association has proposed a dividend of SEK 216 million, which is enabled through a Group contribution from Landshypotek Bank. • The bank is a leading financier of farming and forestry, and has a strong presence in agricul- ture Sweden. Account managers have a good level of local knowledge and special expertise regarding conditions for farming and forestry. Elected representatives in eleven regions strengthen our proximity to our customers. • In a short time, the bank has grown significantly and captured market shares in the mortgage market. A digital presence and transparent and negotiation-free interest rates facilitate simplic- ity and clarity for customers. Repeated surveys indicate that customer satisfaction is high. • The bank’s lending is climate positive. When calculating GHG emissions and uptake linked to our total lending, uptake outweighs our emissions. • Landshypotek has local offices and meeting places all around the country for our farming customers. Shared functions have several loca- tions but primarily in Stockholm and Linköping, where customer service is also located. The bank has slightly more than 270 employees. Landshypotek Bank Annual Report 20257
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Landshypotek Bank Annual Report 2025 8Landshypotek Bank Annual Report 20258
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Landshypotek Bank Annual Report 2025 9 Hå Administration Report Landshypotek Bank Annual Report 20259 Administration Report 10 Financial report 10 Net interest income 10 Net commission income 10 Net result of financial transactions 10 Costs 10 Credit losses and credit loss allowance 10 Operating profit 10 Other comprehensive income 10 Assets 10 Liabilities 11 Funding 11 Deposits from the public 12 Capital and capital adequacy 12 Group contributions 12 Rating 12 Sustainability report pursuant to the Annual Accounts Act 12 Proposed appropriation of profits 13
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Landshypotek Bank Annual Report 2025 10 Administration Report Financial report Net interest income Net interest income amounted to SEK 1,158 million (1,124), up as a result of increased lending volumes. Interest income totalled SEK 4,209 million (5,019), and interest expenses totalled SEK 3,052 million (3,896), both down primarily as a result of year-on-year lower interest rates. Net commission income Net commission income totalled SEK 28 million (19), up mainly due to the farm package – a fee for all of the bank’s farming and forestry customers – did not encompass the entire 2024 year. Net result of financial transactions The net result of financial transactions amounted to a loss of SEK 8 million (loss: 7), of which the unrealised loss amounted to SEK 7 million (loss: 4) and the realised loss to SEK 1 million (loss: 3). Costs Costs amounted to SEK 621 million (603), up due to increases in employees and IT-related costs as a result of an accelerated pace of development. Credit losses and credit loss allowance Overall, credit losses generated a negative net earnings impact of SEK 14 million (loss: 4) for the year, of which Lending increased SEK 7 .1 billion in 2025 and amounted to SEK 118.2 billion at the end of the year. Deposits decreased just under SEK 1.1 billion over the year and amounted to SEK 25.9 billion. Net inter- est income totalled SEK 1.2 billion, up year-on-year due to larger lending volumes. Costs increased SEK 18 million for the year, which was attributable to increases in employees and IT-related costs as a result of an accelerated pace of development. The bank continued to post extremely good credit quality. net credit losses for non-credit-impaired assets had a positive earnings impact of SEK 3 million (loss: 2) and credit-impaired assets had a negative earnings impact of SEK 17 million (loss: 2). Gross non-credit-impaired assets amounted to SEK 117,264 million (110,145) and the credit loss allowance to SEK 8 million (10). Gross credit-impaired assets amounted to SEK 921 million (987) and the credit loss allowance to SEK 26 million (10). The provisions for cred - it-impaired assets pertained to individual commitments within varying types of farming and geographic locations. The bank continued to post extremely good credit qual - ity.For more information, refer to Note 9. Other comprehensive income Other comprehensive income amounted to SEK 22 million (3), of which financial assets at fair value had a positive effect of SEK 14 million (14) as a result of falling credit spreads at the same time as declining cross- currency basis spreads had a positive impact of SEK 8 million (negative: 11). Assets The largest asset item in the balance sheet is loans to the public, which amounted to SEK 118.2 billion (111.1). The geographic distribution of lending remains stable over time. SEK million 2025 2024 Net interest income 1,158 1,124 Net commission income 28 19 Other operating income -2 -2 Of which net result of financial transactions -8 -7 Costs -621 -603 C/I ratio including financial transactions 0.53 0.53 C/I ratio excluding financial transactions 0.52 0.53 Net recognised credit losses -14 -4 Credit loss level, % 1) 0.01 0.00 Imposed fees -46 -46 Operating profit 502 489 Operating profit excluding the net result of financial transactions 510 496 1) An outcome is only presented in the case of a negative earnings impact.
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Landshypotek Bank Annual Report 2025 11 Landshypotek Bank’s liquidity portfolio totalled SEK 13.3 billion (11.5). The portfolio comprises Swedish covered bonds with the highest credit rating and bonds issued by Swedish municipalities and regions. The holding of interest-bearing securities functions as a liquidity reserve. The liquidity portfolio was 1.6 times (2.0) larger than refinancing requirements for the next six months. The ratio is affected by the allocation of maturing debt for longer than six months and can, therefore, change between measurement periods. Liabilities Funding Landshypotek Bank actively raises funds via the capital markets. Landshypotek Bank as far as possible always strives to meet investors’ wishes regarding tenors and interest-rate structures. Investor relations are of major importance as part of ensuring that investors’ levels of awareness and interest are maintained in Landshypotek Bank and its activities. Covered bonds are bonds that carry a preferential right in a defined cover pool. Covered bonds outstanding totalled SEK 91.9 billion (81.3). Assets in the cover pool corresponding to SEK 113.7 billion (104.6) are in place as collateral for these bonds. Landshypotek Bank has one international NMTN programme with a limit corresponding to around SEK 108.2 billion (113.0). The EMTN programme is denominated in EUR and has decreased somewhat over the year due to changes in the exchange rate. During the year, covered bonds to a nominal value of SEK 27 .5 billion (24.2) and senior bonds to a nominal value of SEK 1.0 billion (1.4) were issued. In parallel, covered bonds to a nominal value of SEK 17 .0 billion (16.4) and senior bonds to a nominal value of SEK 1.9 billion (2.3) matured or were repurchased. Covered bonds are Landshypotek Bank’s most import - ant source of funding. Landshypotek Bank’s covered bonds have an AAA credit rating from the rating agency Standard & Poor’s. The cover pool comprises loans with agricultural and for - est properties, and houses or tenant-owner apartments as collateral and supplemental collateral that comprises covered bonds issued by other credit institutions, and bonds issued by Swedish municipalities.
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Landshypotek Bank Annual Report 2025 12 The credits in Landshypotek Bank’s cover pool have an average loan-to-value ratio of 44.6 percent (43.7). The L TV or loan-to-value ratio shows loan amounts in relation to the value of the collateral. Landshypotek Bank has some 56,000 loan customers who have mortgaged approximately 43,000 properties and tenant-owner apartments. In many cases, the difference was attrib - utable to more than one individual jointly pledging their shared property. The number of loans amounts to about 110,000. Cover pool and covered bonds, SEK million Cover pool Loans 112,765 Supplemental collateral 900 T otal cover pool 113,665 Covered bonds Issued in SEK 89,436 Issued in foreign currency 2,424 T otal covered bonds 91,860 Excess collateral, 23.7% 21,805 Key figures, cover pool, SEK million L TV – Loan-to-value ratio Average volume-weighted L TV 44.6% Number of pledged properties 42,802 Number of borrowers 56,378 Number of loans 109,671 Lending volume in the cover pool per L TV interval <10% 28% 10–20% 23% 20–30% 19% 30–40% 14% 40–50% 9% 50–60% 5% 60–70% 2% 70–80% 0% Of Landshypotek Bank’s lending, 51 percent takes place against collateral where the loan amount is less than 20 percent of the value of the collateral. Only 2 percent of lending is against collateral where the loan amount is 60 percent or more of the value of the collateral. Deposits from the public Deposits from the public totalled SEK 25.9 billion (27 .1). Capital and capital adequacy Landshypotek Bank, together with the Parent Com - pany Landshypotek Ekonomisk Förening, constitutes a consolidated situation from a supervisory and capital adequacy perspective. The total capital ratio for the con- solidated situation amounted to 22.1 percent compared with 19.0 percent as of 31 December 2024 and the CET1 capital ratio was 19.3 percent (16.1). At Landshypotek Bank AB, the total capital ratio amounted to 23.2 percent (19.6) and the CET1 capital ratio was 18.9 percent (15.8). The capital situation has strengthened as a result of changes in the Basel IV framework, which entered force on 1 January 2025. Group contributions Contingent upon the approval of the General Meeting, a Group contribution will be paid by Landshypotek Bank AB in the amount of SEK 232 million (251) to Landshypo - tek Ekonomisk Förening. Rating Landshypotek Bank has credit ratings from two differ - ent rating agencies, Standard & Poor’s and Fitch. No changes took place during the year. Rating Long Short S&P covered bonds AAA S&P A A-1 Fitch A F1 Sustainability report pursuant to the Annual Accounts Act Landshypotek Bank has prepared a sustainability report pursuant to the Annual Accounts Act. Landshypotek Bank’s sustainability report includes information about how the bank works with its material sustainability areas. Landshypotek Bank’s report for the 2025 financial year is based on the EU’s new regulations for sustainability reporting (CSRD/ESRS). The Sustainability Report is available on pages 77–93. Funding SEK million In issue 31 Dec 2025 Limit In issue 31 Dec 2024 Swedish commercial paper – 10,000 – MTN programme 1) 1,560 60,0001) 3,160 NMTN programme 2) 92,126 108,169 80,456 Registered covered bonds 2,705 2,863 Tier 1 capital instruments 900 900 1) Medium Term Note Programme. No longer an active program for issuing new transactions. 2) Nordic Medium T erm Note and Covered Bond Programme. The limit is EUR 10,000 million.
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Landshypotek Bank Annual Report 2025 13 Proposed appropriation of profits SEK The following unrestricted equity is at the disposal of the Annual General Meeting: Retained earnings 4,359,991,370 Group contributions -232,000,000 T ax effect of Group contribution 47,792,000 Net profit for the year 393,185,914 4,568,969,284 The Board of Directors proposes that the funds at the Annual General Meeting’s disposal be allocated as follows: T o be carried forward 4,568,969,284 4,568,969,284 A Group contribution has been paid in the amount of SEK 232,000,000 which has reduced unrestricted equity as of the balance sheet date by SEK 184,208,000 after taking the tax effect into account. All things considered, the Board believes that the Group contribution is justifiable with respect to the require - ments that the business’ nature, scale and risk impose on the amount of equity, and given the consolidation require - ments, liquidity and position in general. The Board of Directors proposes that the year’s funds at the disposal of the Annual General Meeting, SEK 4,568,969,284 be carried forward. The annual accounts have been prepared in accordance with generally accepted accounting principles and pro - vide a fair representation of the company’s position and performance. Five-year Summary, SEK million 2025 2024 2023 2022 2021 INCOME ST A TEMENT Net interest income 1,158 1,124 1,251 1,118 995 Net commission income 28 19 19 10 12 Other operating income -2 -2 -10 7 -8 Operating expenses -582 -560 -548 -510 -451 Depreciation and amortisation -40 -43 -42 -41 -47 Credit losses/recoveries -14 -4 5 4 5 Imposed fees -46 -46 -41 -41 -35 Operating profit 502 489 636 548 471 BALANCE SHEET Assets Loans to the public 118,151 111,110 104,751 105,647 93,968 Other assets 15,107 13,212 13,762 13,664 12,050 T otal assets 133,259 124,322 118,513 119,311 106,018 Liabilities Funding 123,827 114,639 108,984 109,509 98,559 Other liabilities 1,593 2,093 2,604 3,183 899 Equity 7,839 7,590 6,925 6,619 6,560 T otal liabilities and equity 133,259 124,322 118,513 119,311 106,018 Key financial ratios Interest margin, % 1.00 1.05 1.17 1.08 1.10 Credit loss level, % 1) 0.01 0.00 – – – Return on equity, % 5.7 5.7 7.7 7.1 6.4 1) An outcome is only presented in the case of a negative earnings impact.
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Landshypotek Bank Annual Report 2025 14
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Landshypotek Bank Annual Report 2025 15 Corporate governance Foundation for corporate governance at Landshypotek Bank 16 Deviations from the Swedish Corporate Governance Code 16 Owners’ control 16 Owner directive 16 Articles of Association 16 Annual General Meeting 2025 17 Extraordinary General Meeting 2025 17 Election Committee 17 External auditors 18 The Board of Directors 18 The Board’s composition and eligibility 18 The Board’s responsibilities and its procedures 19 Evaluation of the Board of Directors 20 Internal control and risk management 20 The first line of defence – business operations 20 The second line of defence – independent control functions 20 Third line of defence – internal audit 21 Internal control over financial reporting 21 Remuneration system 21 CEO 22 Responsibilities of the CEO 22 The Bank Management and committees 22 Business operations 22 Corporate culture – a small bank with a vital mission 22 Market disclosures 23 Board members 24 Senior management 26 Landshypotek Bank Annual Report 202515
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Landshypotek Bank Annual Report 2025 16 Foundation for corporate governance at Landshypotek Bank Governance model and regulations Landshypotek Bank strives to implement corporate governance that is marked by its focus on structure, processes, and efficient governance and control, and which comprises a value-steered employee culture that reinforces own responsibility and commitment. The bank has high ambitions in terms of good corporate gover - nance, risk management and internal control. Governance is conducted pursuant to external rules for corporate governance that include, inter alia, the Com - panies Act, the Annual Accounts Act, the Banking and Financing Act, and the applicable parts of the Swedish Corporate Governance Code. The fundamental internal framework for corporate gov - ernance comprises, inter alia, the Articles of Association, the owner directive, formal work plans for the Board and its committees, the CEO’s instruction, report plans and policies. Policies, guidelines and instructions that clarify the dele - gation of responsibility and working methods at the bank comprise key tools for the Board and CEO in their work with governance and control. Deviations from the Swedish Corporate Governance Code Given the ownership structure with just one shareholder and the fact that the bank is not a listed company, certain parts of the Code are not appropriate for the bank. The following deviations from the Code are made in this cor - porate governance report: General Meeting Code rule 1.1 There is no publication on the website of information pertaining to general meetings of shareholders and shareholders’ right to propose business at the general meetings. The aim of this rule is to provide shareholders with the opportunity to prepare themselves in a timely fashion ahead of the Annual General Meeting and to have business taken up in the notification thereof as well as to enable shareholders to partake of the information. A deviation is made as the bank has only one share - holder. Election Committee Code rules 2.3–2.6 Instead of following the Code’s rules governing Board appointments, nomination issues are prepared pursuant to an instruction for the Election Committee adopted by the General Meeting. The aim of these rules is to provide all shareholders with, among other things, insight into the nomination process and to prevent major shareholders gaining sole influence over nominations. A deviation is made as the bank has only one shareholder. Board procedures Code rule 8.1 This rule means that the Board must ensure that the company’s financial reporting meets other requirements of listed companies. A deviation is made as the bank is not a listed company. Owners’ control Owner directive Landshypotek Bank is a wholly owned subsidiary of Landshypotek Ekonomisk Förening. Landshypotek Ekon- omisk Förening’s Board has adopted an owner directive. The aim of the owner directive is to provide direction for a financially sustainable business model and to clarify the owner’s requirements of the bank and the targets that the bank is expected to achieve. The overriding objective with ownership of the bank is to secure long-term competitive financing for Swedish farming and forestry. The owner directive sets out, inter alia, a number of overarching principles regarding the bank’s independence. Moreover, overarching goals are stipulated for market share and profitability. Performance vis-à-vis the owner directive is reported on an ongoing basis to the Board of Directors of Landshypotek Ekonomisk Förening. Articles of Association The Articles of Association is the fundamental document that defines the framework for the Bank’s activities. The Articles of Association contain provisions on the minimum and maximum number of Board members and that the Board members and Chairman of the Board be appointed by the General Meeting. No provisions exist governing the appointment or removal of Board members. Any amend- ment of the Articles of Association requires notification to be issued at the earliest six weeks and at the latest four weeks before the General Meeting that will examine the Corporate Governance Report Corporate governance is a key support in Landshypotek Bank’s efforts to create value for its stakeholders and for the Board with its effective governance and control of operations.
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Landshypotek Bank Annual Report 2025 17 proposed amendment. Landshypotek Bank has only one shareholder and no limitations apply to the number of votes the shareholder may cast at the General Meeting. Annual General Meeting 2025 The Annual General Meeting of Landshypotek Bank was held on 29 April 2025. Kjell Nilsson was the Annual Gen- eral Meeting’s Chairman The owner was represented by Per-Olof Hilmér. The AGM was attended by the bank’s and the association’s Board members, the CEO, auditors and members of the Election Committee. The General Meet- ing elected the Board, Election Committee and auditors for the period until the next AGM. The General Meeting re-elected the following Board members, Ann Krumlinde, Ole Laurits Lønnum, Lars-Johan Merin, Johan Nordenfalk and Lars Sjögren. Anna-Karin Celsing and Johan T rolle Löwen declined re-election. No new members were elected to the Board of Directors. At the AGM, Anders Nilsson, with Therese Ljung as deputy, and Petra Nilsson, with Ulrika Arnoldsdotter as deputy, were designated as the employee representatives. Ann Krumlinde was elected Chairman of the Board. Furthermore, the autho- rised auditing firm KPMG AB was elected as auditors. Authorised Public Accountant Dan Beitner was elected Auditor in Charge. The AGM resolved to discharge the Board of Directors and the CEO from liability. Furthermore, resolutions were passed on fees, appropriation of profits and adoption of the annual accounts for 2024. The CEO and Board of Directors presented the work performed in the company and on the company’s Board during the year. The Election Committee presented its work during the year and its assessment of the eligibility of Board members on an individual basis as well as collectively. The General Meeting did not authorise the Board of Directors to issue new shares or buy back the company’s shares. Extraordinary General Meeting 2025 On 15 September, Landshypotek Bank held an Extraor - dinary General Meeting for the election of Elisabeth Bes - kow and Marita Odélius as new members of the bank’s Board of Directors. Election Committee The Election Committee is tasked with preparing election and remuneration issues ahead of the next AGM. The Election Committee follows the instruction
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Landshypotek Bank Annual Report 2025 18 established for the Committee and the adopted policy regarding Board diversity and for assessing the eligibility of Board members. The 2025 AGM resolved that the Election Committee should comprise: Per-Olof Hilmér, Rickard Axdorff, Marie André and Claes Mattsson. Per-Olof Hilmér represents the owner in his capacity as Chairman of Landshypotek Ekonomisk Förening. External auditors The AGM appoints the external auditors to the bank. These auditors must be authorised public accountants. The mandate period of the auditors appointed by the General Meeting is one year. The auditors are responsi - ble for examining the Annual Report and accounts, and also the Board’s and CEO’s administration of the bank. The auditors report the results of their examination in the auditor’s report, which is submitted at the AGM. Fur - thermore, the auditors examine one of the bank’s interim reports and submit their findings in their notes to the Audit Committee and the Board. T o ensure the independence of the external auditor with regard to the audit of the Bank and the Bank’s financial statements, the Board has established a policy governing the independence of the external auditor. Fees to the bank’s auditors are reported in Note 7 . Board of Directors The Board’s members are elected by the General Meet - ing from proposals made by the Election Committee. The Board is responsible for the organisation and administra - tion of the bank affairs. The Board’s composition and eligibility According to the Articles of Association, the Board comprises a minimum of four and a maximum of eight members who are elected each year at the AGM until the AGM the following year. An eligibility assessment is performed in parallel with the appointment of Board members, on re-election of Board members and when needed. The eligibility assessment of Board members is performed by the Election Committee in accordance with the bank’s eligibility assessment policy and Board diversity policy. The eligibility assessment takes into consideration the individual’s expertise, experience,
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Landshypotek Bank Annual Report 2025 19 reputation, integrity and other criteria, such as potential conflicts of interest and the member’s ability to dedicate sufficient time to the assignment. Finansinspektionen conducts a management assessment in conjunction with the appointment of Board members. Among other items, the Board diversity policy states that the background of Board members as well as the Board’s gender balance and ages should be considered to obtain sufficient diversity on the Board. More detailed descriptions of the eligibility assessment and the diversity policy are published on the bank’s website. The Board comprises nine individuals, of which seven were elected at the AGM and two of which are employee representatives – four women and five men. The seven elected Board members are independent in relation to the company and the management of the company. One member is also a Board member of the cooperative association. All of the Board members have extensive experience from trade and industry and/or the farming and forestry industries. The composition of the Board ensures that the Board understands the overall picture of the bank’s operations and the associated risks. None of the Board members or the CEO hold shares or finan - cial instruments issued by the bank. Through their own or their related parties’ membership of Landshypotek Ekonomisk Förening, two of the Board members have member contributions in the cooperative association. The Board’s responsibilities and its procedures The Board is responsible for the organisation and administration of the bank’s affairs. Among other tasks, the Board should also decide issues regarding the bank’s overriding goals and strategies, its risk appetite and risk strategy, the internal capital and liquidity adequacy assessment processes (ICAAP and ILAAP), and decide other matters of greater strategic and financial signifi - cance. The Board also decides over the bank’s business plan and budget, and follows up the bank’s performance in relation to these on an ongoing basis. The Board is also tasked with ensuring that internal rules are in place for effective governance and control of the bank, and that a framework for risk management exists that ensures the bank’s management and follow up of risks is satisfac - tory. The Board is also to perform regular evaluations of whether the bank controls and manages its risks in an efficient and appropriate manner, and ensure the bank complies with the rules applicable for licensable opera - tions. The Board also appoints, evaluates and, if the need arises, dismisses the CEO. The Chairman of the Board is appointed by the Annual General Meeting. The Chairman leads the Board’s work and ensures that the work is performed efficiently and that the Board fulfils its duties. Among other duties, the Chairman is tasked with accepting directives from the association, ensuring that the Board members are provided with satisfactory information and decision data for their work by the CEO on an ongoing basis and that Board members receiving the required training to con - duct Board work efficiently and check that the Board’s decisions are applied efficiently. The Board’s work follows the formal work plan and annual plan adopted at the statutory Board meeting. In 2025, the Board had ten scheduled Board meetings. The Board has established four committees to increase the efficiency of the Board’s work. The committees prepare issues for decision by the Board and have also received specific decision mandates in certain issues. All of the committees have a formal work plan that sets out the tasks and the Board’s delegated decision mandates as well as how the committee should report to the Board. The Board’s Credit Committee The Credit Committee’s primary task is to make deci - sions regarding loans and problem commitments pur - suant to the established credit policy and to decide the members of the Credit Advisory Committee. In addition, the Committee is tasked with preparing amendments and annual confirmation of items including credit policy and decision mandates for granting credit prior to the Board’s decision. Furthermore, the Committee prepares items pertaining to the evaluation of portfolio strategies, the transparency of the credit portfolio, the review of valuation and decision models as well as the evaluation of existing or new delegation rights. Following the statutory meeting in 2025, the members of the Credit Committee were as follows: Ann Krumlinde and Johan Nordenfalk, with Lars Sjögren and Lars-Jo - han Merin as deputies. Credit analysts, the Insolvency Manager or another specially appointed executive pres - ents agenda items. The Credit Committee takes weekly credit decisions and, in addition, held five scheduled meetings in 2025. The Board’s Risk and Capital Committee The principal task of the Risk and Capital Committee is to prepare items for the Board and, through liaison with internal functions to provide the Board with information about and prepare internal rules, and to monitor, analyse and prioritise risk and capital-related issues. The Risk and Capital Committee is also tasked with preparing questions pertaining to measures for counteracting money laundering and financing of terrorism. Following the statutory meeting in 2025, the members of the Committee were as follows: Lars Sjögren, Ann Krumlinde and Lars-Johan Merin. Elisabeth Beskow took office as a member following the Extraordinary General Meeting held in 2025. The Chief Risk Officer or another specially appointed executive presents agenda items. The Committee held seven meetings in 2025.
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Landshypotek Bank Annual Report 2025 20 The Board’s Audit Committee The Audit Committee’s primary tasks are to be responsi - ble for preparing the Board’s work with quality assurance of the financial reporting and to receive the reports from the auditors. In addition, the Committee monitors and reviews the work of internal and external auditors as well as compliance and the work of the data protection officer. The Audit Committee is also responsible for quality-as - suring the bank’s sustainability report. The Committee meets in conjunction with external financial reports and, otherwise, whenever necessary. Following the statutory meeting in 2025, the members of the Committee were as follows: Johan Nordenfalk, Ole Laurits Lønnum and Ann Krumlinde. Marita Odélius took office as a member following the Extraordinary General Meeting held in 2025. The Chief Financial Officer or another specially appointed executive presents agenda items. The Committee held six meetings in 2025. The Board’s Remuneration Committee The main task of the Committee is to act in an advisory role to the Board on issues pertaining to remuneration at the bank. The Committee prepares Board issues regarding the remuneration policy and the overall risk analysis for the company pertaining to the remuneration system. Follow- ing the statutory meeting in 2025, the members of the Remuneration Committee were as follows: Ann Krumlinde, Lars-Johan Merin and Ole Laurits Lønnum. The CEO, HR Manager or other party appointed by the Committee presents agenda items and is responsible for preparing an agenda in consultation with the Chairman for each meet- ing. The Committee held three meetings in 2025. Evaluation of the Board of Directors Each year, the work of the Board is normally evaluated using a systematic and structured process. The eval - uation’s findings are presented to the full Board and the Election Committee. In conjunction with the Board evaluation, the Board’s competence and training needs are reviewed and, based on this review, an annual training plan is prepared for the Board. Internal control and risk management Structure and responsibility The Board is also responsible for ensuring that internal rules are in place for effective governance and control of the bank, and that an appropriate framework for risk man- agement exists that is regularly followed up and evaluated. The basis for the internal governance and control consists of the bank’s control environment in the form of the organisational structure, decision and reporting pathways, authorities and responsibility. The framework for conducting operations is established through internal policies, guidelines and instructions. Day-to-day opera - tions are tasked with complying with these. The busi - ness operations are also responsible for their own risk management and for conducting self-evaluations of their operations. The bank strives to ensure that all operations apply a sound risk culture. Board attendance 2025 Board member Board meetings Credit Committee Risk and Capital Committee Audit Committee Remuneration Committee Ann Krumlinde 1) 10/10 5/5 7/7 4/6 3/3 Ole Laurits Lønnum 2) 9/10 6/6 1/3 Lars Sjögren 10/10 0/5 7/7 Lars-Johan Merin 3) 9/10 0/5 7/7 1/3 Anders Nilsson 10/10 Johan Nordenfalk 10/10 5/5 6/6 Petra Nilsson 10/10 Elisabeth Beskow 4) 3/10 2/7 Marita Odélius 5) 2/10 2/6 Anna-Karin Celsing 6) 2/10 3/7 2/6 2/3 Johan T rolle-Löwen 7) 2/10 0/5 1/6 Therese Ljung 0/10 Ulrika Arnoldsdotter 0/10 1) Appointed as member of the Audit Committee following the statutory Board meeting on 29 April 2025. 2) Appointed as member of the Remuneration Committee following the statutory Board meeting on 29 April 2025. 3) Appointed as deputy member of the Credit Committee following the statutory Board meeting on 29 April 2025. 4) Appointed as Board member and member of the Risk and Capital Committee on 15 September 2025. 5) Appointed as Board member and member of the Audit Committee on 15 September 2025. 6) Stepped down as Board member and member of the Risk and Capital Committee, Audit Committee and Remuneration Committee following the statutory Board meeting on 29 April 2025. 7) Stepped down as Board member and member of the Audit Committee and deputy member of the Credit Committee following the statutory Board meeting on 29 April 2025.
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Landshypotek Bank Annual Report 2025 21 T o ensure appropriate risk management – and to identify, analyse, rectify, monitor, and report risk and internal con - trol – responsibility is divided between various functions based on the three lines of defence principle. The model differentiates between functions responsible for risk and regulatory compliance (first line of defence), functions for monitoring and control (second line of defence) and functions for independent review (third line of defence). The first line of defence – business operations A core principle is that the line organisation forms the first line of defence with responsibility for internal control and risk management. Responsibility for self-assessment is thus located where risk originates. This means that each employee is responsible for managing the risks in their own areas of responsibility. The second line of defence – independent control functions The risk function (including CISO and DSO) and compli - ance are independent control functions and comprise the second line of defence. These functions monitor the business areas’ risk management and regulatory compli - ance. The second line of defence maintains policies and frameworks for the first line of defence’s risk manage - ment and validates the first line’s methods and models for risk measurement and control. Risk function The risk function is responsible for structured and sys- tematic measurement, control, analysis and continuous reporting on all material risks in the bank. The risk function is also tasked with, inter alia, the regular performance of relevant stress tests of material risks and for performing in-depth risk analyses in one or more risk areas where higher risks may exist for the bank. The work is conducted pursuant to a policy decided by the Board that describes its responsibilities and an annual plan. The risk function is independent from operations and the Chief Risk Officer is directly subordinate to the CEO and the Board. CISO (including the DSO) The Chief Information Security Officer (CISO) is tasked with providing advice and support to the CEO and employ- ees, and for structured and systematic measurement, con- trol, analysis and continuous reporting on all information and cybersecurity risks in the bank. This includes, inter alia, monitoring the operations’ information management and ensuring that the necessary technical safeguards are in place. It also includes reviewing changes and develop- ments as well as providing information security advice. The CISO is part of the second line of defence and reports directly to the CEO and the Board. Compliance Compliance is tasked with advising and supporting the CEO and employees with ensuring that the bank’s operations are conducted pursuant to the regulatory frameworks that govern licensable activities and to identify and report compliance risks. The work is con - ducted pursuant to a policy decided by the Board that describes its responsibilities and an annual plan. The Compliance unit is independent from business opera - tions and the Chief Compliance Officer reports directly to the CEO and Board. Third line of defence – internal audit The third line of defence, internal audit, evaluates the bank’s overall management of risk and regulatory com - pliance, and reviews the work of the first and second lines of defence. Internal Audit aims to examine and evaluate internal governance and controls as well as provide an image of how well processes and procedures contribute to the operational goals. This includes, not least, the evalua - tion of the effectiveness of the risk management efforts and the work of the second line of defence. The internal audit review initiatives are conducted pursuant to a pol - icy decided by the Board that describes its responsibili - ties and an annual plan. During 2025, the bank’s internal audit was performed by Ernst & Young AB. Internal control over financial reporting The bank’s Finance Department is responsible for managing internal control over financial reporting to ensure that accurate information reaches external stakeholders. This includes work, such as, ongoing financial accounting, the annual accounts, external reporting and income tax returns. Furthermore, the Accounts Department makes a proactive contribution to decision making and corporate governance through financial follow-ups, forecasts and impact analyses. The Board receives monthly financial reports in addition to the reporting submitted at each Board meeting. In addition, the Finance Department’s Middle Office has a role in the internal control of financial reporting due to its responsibility for administrating the financial system and measuring financial instruments. Middle Office is tasked with continuously evaluating the bank’s valuation methods and ensuring that they comply with estab - lished market practices, internal guidelines, internal policy documents and external regulations for reporting and capital adequacy. Furthermore, External Audit is tasked with examining and evaluating the reliability of the financial reporting. The Board’s measures to follow up on internal control of financial reporting are executed through the Board’s follow-up of the bank’s finances and performance. This is carried out through monthly financial reports and reports at each Board meeting. Moreover, the Board and Audit Committee review and follow-up on the audi - tor’s review reports.
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Landshypotek Bank Annual Report 2025 22 Remuneration system The Board has set out the principles for the remuneration system that encompasses all employees at the bank in the remuneration policy. The remuneration policy is aimed at ensuring that the bank has a remuneration system that counters any incentive to accept unsound risks or act with a short-term perspective. The remuneration system should apply market terms, be non-discriminatory and reward good performance as well as ensure that the employees’ efforts align with the bank’s strategies and pol- icies. Special weighting should be given toward a sound level of risk. The base employee remuneration model consists of a fixed basic salary. The bank has no variable remuneration program. However, the bank does have a profit-sharing foundation to which the bank allocates part of its profits to benefit its employees. Profit sharing is based on long-term company-wide targets in accordance with targets and the guidelines established by the Board and is capped at one price basic amount per employee. Variable remuneration in the form of a bonus can, in individual cases, be paid in arrears to reward exceptional performances. The bank is restrictive with benefits over and above those offered to all employees. Remuneration to the CEO, Bank Management and the managers of the control functions is set by the Board. The principle applied for other employees is that decisions on remuneration are always made by the manager together with the manager’s immediate superior and the HR Manager. Fixed remunera- tion is reviewed each year as part of the salary review and, each year, the bank conducts an employee salary survey. Information regarding the remuneration to the Board, the CEO and the Bank Management is presented in Note 7 . CEO Responsibilities of the CEO The CEO is appointed by the Board and is responsible for the administration of the day-to-day operations. Among other tasks, the CEO must monitor the bank’s operational and performance trends, and take ongoing decisions regarding the operations, development and control of the business. The CEO is responsible for operational compli- ance with the internal policies and strategies established by the Board for the bank. The CEO must review and assess the efficiency of the company’s organisational structure, procedures, measures, methods and the like decided by the bank, and take appropriate measures to correct any inadequacies with the aforementioned. The CEO also evaluates whether the bank controls and manages its risks in an efficient and appropriate manner. The CEO reports to the Board on an ongoing basis liaises closely with the Chairman. The Board has adopted a written instruction governing the role and work of the CEO. The instruction is a complement to the provisions in the Swedish Companies Act and the bank’s Articles of Asso- ciation. T o ensure that the CEO has a good knowledge and understanding of the bank’s organisation structure and processes, the bank’s operations as well as the nature and scope of the bank’s risks, the Board conducts an eligibility assessment of the CEO and carries out an evaluation of the CEO’s performance each year. The Bank Management and committees The Bank Management supports the CEO in his role with the implementation of the guidelines and instructions decided by the Board and with the day-to-day opera - tions. The Bank Management has no decision mandate and all decisions are taken by the CEO. The collective expertise of the Bank Management should contribute to the CEO making good and well-balanced decisions. The Bank Management must ensure that the bank’s employ - ees are guided toward the shared goals and contribute to the fulfilment of the bank’s strategy. In addition to the CEO, the following positions are included in the Bank Management: Chief Commercial Officer, Chief Financial Officer, Head of Operations, Head of Marketing and Communication, Head of Corpo - rates and Chief Risk Officer. In the 2025 financial year, the General Counsel and Chief Sustainability Officer and Head of Strategic Communication were also included in the Bank Management. The CEO has also appointed councils and committees to support operational leadership. The committees that have been established are: the Balance Sheet and Income Statement Committee, Central Credit Advisory Com- mittee, Insider Committee, Committee for Green Bonds, Insolvency Committee and the Pricing Committee. T o ensure that senior executives included in the Bank Management have a good knowledge and understanding of the bank’s organisation structure and processes, the bank’s operations as well as the nature and scope of the bank’s risks, the CEO conducts an eligibility assessment of the senior executives included in the Bank Management. Business operations As of 1 February 2026, the bank has organised busi - ness operations into one business area, under which the Farming & Forestry business area is divided into two regions with 21 offices that have the opportunity of meeting customers locally. Proximity to customers is strengthened by the regional member organisation, which comprises the elected members from the bank’s owner, Landshypotek Ekonomisk Förening. The other business area, Retail market, meets the country’s retail customers digitally and by telephone. Retail market also has a central unit that meets smaller farming customers, regardless of where they conduct operations. In addition, a customer service organisation is in place that handles customers as well as lending and deposits customers. The Chief Commercial Officer reports directly to the CEO and has full responsibility for all risks and the opera - tional performance of the entire business area.
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Landshypotek Bank Annual Report 2025 23 Corporate culture – a small bank with a vital mission Landshypotek Bank is a unique bank in the Swedish banking market. The bank has a clear assignment for Sweden’s farming and forestry sectors and is owned by its farming and forestry loan customers, the bank’s objectives and closeness to customers, together with the ownership model, are important reasons behind the bank’s val- ues-driven organisation and its strong corporate culture. Active, ongoing efforts are being driven at Landshypotek Bank to develop the bank together with the employees. On a number of occasions in 2025, employees gath - ered both digitally and physically to discuss the bank’s development, in smaller groups and all together. As a small bank with some 270 employees, each employee is crucial to the bank’s future. Close dialogue between employees and managers is important at the bank. Therefore, the bank holds regular, structured dialogues between managers and employ - ees. The dialogues aim to form an image of employees’ work situations. Managers follow up the set goals and activities as well as what to focus on for the period until the next dialogue. Each new employee must complete the bank’s obligatory introduction training programmes and participate in the bank’s introduction days. Continuously training the employ- ees comprises a key component of the internal control of operations. All of the policies are published on the bank’s intranet and are revised according to plan, mainly annually. T o support employees in their work, the bank has intro- duced regular regulatory forums, where representatives from the business and the supporting organisation ensure the administration and implementation of new aspects of current regulations. These forums strengthen and stream- line the bank’s efforts to ensure operations are conducted efficiently, with risk-awareness and in compliance with regulations. On a regular basis, the bank also provides regulatory information where changes to important policy documents are presented to employees. Market disclosures Landshypotek Bank has disclosure guidelines that ensure the bank meets the external requirements set for the bank in terms of transparency, openness and disclo - sure as part of the bank’s control framework.
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Landshypotek Bank Annual Report 2025 24 Born: 1962, Vadstena, Chairman Director since 2018, Chairman since 2020 Chairman of the Credit Committee and the Remuneration Committee. Member of the Risk and Capital Committee and the Audit Committee. MSc in Business and Economics. Chairman of Consolid Equity II AB (group), Consolid Equity III AB (group), Skabersjö Gods AB and Väderstad AB. Director of Moon Bay and NCG Group. Ann Krumlinde Hyléen Board members As of the publication date of this report Born: 1973, Stockholm, Director Director since 2022 Chairman of the Audit Committee and member of the Credit Committee. Law yer. Chairman of Storsala AB and Stellanor AB. Director of Blekhems Egendom AB and Skabersjö Gods AB. Johan Nordenfalk Born: 1971, Oslo, Director Director since 2020 Member of the Audit Committee and Remu - neration Committee. MSc in Business and Economics. Chairman of Landkreditt Forsikring AS, Landkreditt Förvaltning AS, Landkreditt Boligkreditt AS and Landkreditt Eiendom AS. CEO of Landkreditt SA and Landkreditt Bank AS. Ole Laurits Lønnum Born: 1961, Enebyberg, Director Director since 2025 Member of the Audit Committee. MSc in Business and Economics. Director of Movestic Livförsäkring AB and Loomis AB. Marita Odélius Born: 1967, Enköping, Director Director since 2025 Member of the Risk and Capital Committee. Master of Business Administration. Director of the NFR GROUP AS. Elisabeth Beskow Born: 1959, Fellingsbro, Director Director since 2020 Member of the Remuneration Committee, and Risk and Capital Committee. Deputy member of the Credit Committee. Agrologist. Chairman of Fellingsbro Lager & Fastigheter and WinStaff AB. Director of Oppegården Holding AB, Spannsam Växt AB and Lands - hypotek ek.för. Lars-Johan Merin
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Landshypotek Bank Annual Report 2025 25 Born: 1966, Östersund, Director Director since 2019 Employee Representative for the Swedish Confederation of Professional Associations (SACO). Officer of Landshypotek Bank. Anders Nilsson Changes in the bank’s Board In April 2025, Anna-Karin Celsing stepped down as a member of the Board. In April 2025, Johan Trolle-Löwen stepped down as a member of the Board. In September 2025, Elisabeth Beskow joined as a member of the Board. In September 2025, Marita Odélius joined as a member of the Board. Born: 1963, Stocksund, Director Director since 2023 Economist. Chairman of the Risk and Capital Committee. Deputy member of the Credit Committee. Chairman of Sundfrakt AB and NFT Ventures AB. Director of Road Mobility Services Group (RMS GROUP) AB, Lola Consulting AB, Singapore Payments Network Pte Ltd and Coconet AG. Lars Sjögren Born: 1968, Lund, Director Director since 2024 Employee Representative for the Financial Sector Union of Sweden. Economist, officer of Landshypotek Bank. Petra Nilsson
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Landshypotek Bank Annual Report 2025 26 Senior Management As of the publication date of this report Chief Financial Officer Born: 1981 Education: MSc in Business and Economics. Previous experience: CFO and Chief Compliance Officer Avanza Group. Deputy CEO Avanza Bank Holding AB and Avanza Bank AB. Anna Casselblad CEO Born: 1972 Education: BSc Mathematics Previous experience: CFO Asset & Wealth Management Nordea and CFO CI&IB Nordea. Johan Ericson Chief Commercial Officer Born: 1964 Employed in: 2021 Education: MSc Agronomy and Economics Previous experience: Head of Region South, Business Banking Danske Bank, Head of Finance Center Danske Bank, CFO at Väderstad-Verken AB. Stefan Malmström Chief Risk Officer Born: 1981 Education: MSc in Commercial and Tax Law Previous experience: Risk and Compliance consultant T ranscendent Group, Chief Risk Officer Nordea Hypotek and Senior Control Specialist Nordea Bank. Mats Bergström
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Landshypotek Bank Annual Report 2025 27 Changes in Management during the year In September 2025, Anna Casselblad joined as Chief Financial Officer in conjunction with Jan Lilja stepping down as acting Chief Financial Officer. In February 2026, Martin Kihlberg stepped down from the Bank Management. In February 2026, Tomas Uddin stepped down from the Bank Management. Head of Corporates and acting Marketing Director Born: 1971 Employed in: 2010 Education: Master of Law, LL.M. Previous experience: Acting CEO Landshypotek Bank, Chief Legal Officer Landshypotek Bank, Bank Lawyer Nordea Bank Group Legal. Catharina Åbjörnsson Lindgren Chief Business Development Officer Born: 1981 Employed in: 2022 Education: Business Administration Previous experience: CEO Rocker AB and Lendo AB. Hanna Neidenmark
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Landshypotek Bank Annual Report 2025 28 Landshypotek Bank Annual Report 202528
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Landshypotek Bank Annual Report 2025 29 Financial statements and notes Income statement 30 Statement of comprehensive income 30 Balance sheet 31 Statement of changes in equity 32 Statement of cash flow 33 Alternative performance measures 34 Notes 36 Note 1 Accounting policies 36 Note 2 Risks 40 Note 3 Risk and capital adequacy 45 Note 4 Net interest income 54 Note 5 Net commission income 54 Note 6 Net result of financial transactions 54 Note 7 General administrative expenses 55 Note 8 Depreciation, amortisation and impairment of intangible and tangible non-current assets 57 Note 9 Net credit losses 57 Note 10 Imposed fees 59 Note 11 Income tax on comprehensive income 60 Note 12 Eligible treasury bills, etc. 60 Note 13 Loans to credit institutions 60 Note 14 Loans to the public 61 Note 15 Bonds and other interest-bearing securities 63 Note 16 Derivatives 64 Note 17 Intangible assets 68 Note 18 Tangible non-current assets 68 Note 19 Other assets 68 Note 20 Prepaid expenses and accrued income 68 Note 21 Liabilities to credit institutions 69 Note 22 Deposits from the public 69 Note 23 Debt securities issued, etc. 69 Note 24 Other liabilities 69 Note 25 Accrued expenses and prepaid income 70 Note 26 Subordinated liabilities 70 Note 27 Changes in Equity 70 Note 28 Pledged assets, contingent liabilities and other obligations 70 Note 29 Financial assets and liabilities by category 71 Note 30 Fair-value hierarchy for financial instruments 72 Note 31 Fair value disclosures 73 Note 32 Assets and liabilities by significant currencies 73 Note 33 Change in cash and cash equivalents 74 Note 34 Offsetting disclosures 74 Note 35 Related-party disclosures 75 Note 36 Appropriation of earnings 75 Not 37 Events after the balance sheet date 75 Auditor’s Report 95 Landshypotek Bank Annual Report 202529
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Landshypotek Bank Annual Report 2025 30 Statement of Comprehensive Income Income Statement SEK million Note 2025 2024 Interest income 4,209 5,019 Interest expenses -3,052 -3,896 Net interest income 1 4 1,158 1,124 Net commission income 5 28 19 Net result of financial transactions 6 -8 -7 Other operating income 6 5 T otal operating income 1,183 1,142 General administrative expenses 7 -582 -559 Depreciation, amortisation and impairment of tangible and intangible assets 8 -40 -43 Other operating expenses 1 -1 T otal expenses before credit losses -621 -603 Profit before credit losses 562 538 Net credit losses 9 -14 -4 Imposed fees 1) 10 -46 -46 Operating profit 502 489 T ax expense on profit for the year 11 -109 -108 Net profit for the year 393 381 Earnings per share, SEK 174.5 168.9 Attributable to: Shareholders in Landshypotek Bank AB 347 337 Holders of Tier 1 capital instruments 47 43 1) Landshypotek changed its accounting policy in Q4 2025 and now reports the resolution fee on a new line in the income statement, Imposed fees, previously it was included in Net interest income. The comparative figures have been restated and, accordingly, do not correspond with those for 2024. The same line item also includes lost income on the interest-free deposit with the Riksbank. SEK million Note 2025 2024 Net profit for the year 393 381 Other comprehensive income Items to be reclassified to income statement Financial assets at FVTOCI 18 14 Change in cross-currency basis spreads in fair value hedges 10 -10 T ax on items that will be reclassified 11 -6 -1 T otal items that will be reclassified 22 3 T otal other comprehensive income 22 3 Comprehensive income for the year 416 384 Attributable to: Shareholders in Landshypotek Bank AB 369 341 Holders of Tier 1 capital instruments 47 43
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Landshypotek Bank Annual Report 2025 31 Balance Sheet SEK million Note 2025 2024 ASSETS Cash and balances with central banks 103 – Eligible treasury bills 12 4,410 3,298 Loans to credit institutions 13 415 297 Loans to the public 14 118,151 111,110 Value change of interest-hedged items in portfolio hedges 4 -73 Bonds and other interest-bearing securities 15 8,951 7,950 Derivatives 16 1,087 1,532 Intangible assets 17 42 42 T angible non-current assets 18 21 34 Other assets 19 21 11 Current tax assets 0 76 Prepaid expenses and accrued income 20 54 45 TOT AL ASSETS 133,259 124,322 LIABILITIES AND EQUITY Liabilities Liabilities to credit institutions 21 1,143 754 Deposits from the public 22 25,945 27,090 Debt securities issued, etc. 23 96,138 86,194 Derivatives 16 968 1,290 Other liabilities 24 560 687 Current tax liabilities 19 74 Accrued expenses and prepaid income 25 45 42 Provisions 0 0 Subordinated liabilities 26 601 602 T otal liabilities 125,420 116,732 Equity Share capital, number of shares outstanding: 2,253,000 (2,253,000) 2,253 2,253 Tier 1 capital 900 900 Statutory reserve 1,017 1,017 FVOCI reserve 3 -19 Retained earnings 3,272 3,059 Net profit for the year 393 381 T otal equity 27 7,839 7,590 TOT AL LIABILITIES AND EQUITY 133,259 124,322
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Landshypotek Bank Annual Report 2025 32 Statement of changes in equity Restricted equity Unrestricted equity SEK million Share capital Statutory reserve Development expenditure reserve Fair value reserve Cross-currency basis spreads in fair value hedges Retained earnings Tier 1 capital To t a l Opening balance 1 Jan 2024 2,253 1,017 – -8 -15 3,278 400 6,925 Comprehensive income for the year 11 -8 337 43 384 T otal change before transactions with owners and holders of Tier 1 capital instruments – – – 11 -8 381 – 384 Tier 1 capital – – – – – – 500 500 Dividend on Tier 1 capital instruments – – – – – -7 -43 -51 Shareholders’ contributions – – – – – 31 – 31 Group contributions paid – – – – – -251 – -251 T ax on Group contributions paid – – – – – 52 – 52 Development expenditure reserve – – – – – – – – Closing balance 31 Dec 2024 2,253 1,017 – 3 -22 3,439 900 7,590 Opening balance 1 Jan 2025 2,253 1,017 – 3 -22 3,439 900 7,590 Comprehensive income for the year 14 8 347 47 416 T otal change before transactions with owners and holders of Tier 1 capital instruments – – – 14 8 347 47 416 Tier 1 capital – – – – – – – – Dividend on Tier 1 capital instruments – – – – – – -47 -47 Shareholders’ contributions – – – – – 64 – 64 Group contributions paid – – – – – -232 – -232 T ax on Group contributions paid – – – – – 48 – 48 Development expenditure reserve – – 0 – – 0 – 0 Closing balance 31 Dec 2025 2,253 1,017 0 17 -14 3,666 900 7,839
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Landshypotek Bank Annual Report 2025 33 Statement of cash flow SEK million Note 2025 2024 Operating activities Profit before tax 502 489 of which interest received 4,209 5,019 of which interest paid -3,052 -3,896 Adjustments for non-cash items -293 -216 Recovery of previous years’ confirmed losses 0 1 Income tax paid -40 -36 Change in loans to the public -7,042 -6,359 Change in loans to credit institutions-316–Change in bonds and other interest-bear - ing securities -1,000 678 Change in other assets -685 -72 Change in liabilities to credit institutions 389 202 Change in deposits from the public -1,145 -1,990 Change in debt securities issued, etc. 9,944 6,889 Change in other liabilities -445 -3 Cash flow from operating activities 186 -417 Investment activities Acquisitions of intangible assets 17 15 Acquisitions of tangible assets 1 2 Cash flow from investment activities 18 17 Financing activities Shareholders’ contributions received 64 31 Change in Tier 1 capital instruments: – 500 Interest expense classified as Tier 1 capital dividend (A T1) -47 -51 Cash flow from financing activities 17 480 Cash flow for the year 222 80 Change in cash and cash equivalents 33 222 80 Opening cash and cash equivalents 297 218 Closing cash and cash equivalents 519 297
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Landshypotek Bank Annual Report 2025 34 Alternative performance measures Alternative performance measures (APMs) are financial metrics of historical or future performance, financial position or cash flows that are not defined in the applica - ble rules for financial reporting (for example, IFRS or the Swedish Annual Accounts Act for Credit Institutions and Securities Companies) nor in the capital adequacy rules. The bank uses APMs when these are relevant for the presentation and follow-up of the bank’s financial perfor - mance over time and when these metrics are deemed by the bank to provide additional valuable information to readers of the financial reports. APMs can be calculated with various approaches and, accordingly, the bank’s metrics are not directly compa - rable with similar metrics presented by other companies. The definitions of the APMs are set out below. Definitions of APMs Aim Change in loans to the public, % The percentage increase in loans to the public during the period. The APM is relevant for monitoring lending growth, which affects the bank’s financial performance. Interest margin, L TM, % Net interest income over the last 12 months in relation to average lending during the period. The APM aims to showcase the interest margin trend in the credit portfolio. Change in deposits from the public, % The percentage increase in deposits from the public during the peri- od. The APM is relevant for monitoring deposits growth, which affects the company’s financial performance. C/I ratio including financial transactions Costs in relation to income including the net result of financial trans- actions. The APM aims to showcase the company’s cost efficiency. C/I ratio excluding financial transactions Costs in relation to income excluding the net result of financial trans- actions. The APM aims to showcase the company’s cost efficiency. Credit loss level, % Net credit losses for the period restated on an annualised basis in rela- tion to average lending during the period. The APM aims to showcase the credit quality and credit risk level in the credit portfolio as well as the risk of future credit losses. Net credit-impaired assets after allowances as a percent - age of total loans outstanding, % Net credit-impaired assets in relation to loans to the public. The APM aims to showcase the credit quality in the credit portfolio and the risk of future credit losses. Return on equity, % Net profit for the year divided by average equity after adjustment for Tier 1 capital debt. The APM aims to provide further information regarding the company’s profitability in relation to equity. Earnings per share, SEK Net profit for the year in relation to the number of shares. The APM is relevant for measuring how much profit the bank gener- ates for its owners.
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Landshypotek Bank Annual Report 2025 35 SEK million 2025 2024 Change in loans to the public 7,042 6,359 Opening balance, loans to the public 111,110 104,751 Change in loans to the public, % 6.3 6.1 Net interest income, accumulated L TM 1) 1,158 1,124 Average loans to the public, L TM 115,252 106,703 Interest margin, L TM, % 1) 1.00 1.05 Change in deposits from the public -1,145 -1,990 Opening balance deposits from the public 27,090 29,080 Change in deposits from the public, % -4.2 -6.8 Costs before credit losses -621 -603 T otal operating income 1) 1,183 1,142 C/I ratio including financial transactions 1) 0.53 0.53 Costs before credit losses -621 -603 T otal operating income excluding financial transactions 1) 1,191 1,148 C/I ratio excluding financial transactions 1) 0.52 0.53 Net credit losses calculated on a full-year basis -14 -4 Average loans to the public, L TM 115,252 106,703 Credit loss level, % 2) 0.01 0.00 Credit-impaired assets, net 888 937 Loans to the public 118,151 111,110 Net credit-impaired assets after allowances as a percentage of total loans outstanding, % 0.75 0.84 Profit after tax 393 381 Average L TM equity 6,881 6,699 Return on equity, % 5.7 5.7 Profit after tax 393 381 Number of shares, million 2 2 Earnings per share, SEK 3) 174.5 168.9 1) Landshypotek changed its accounting policy in 2025 and now reports the resolution fee on a new line in the income statement, Imposed fees. Previously it was included in Net interest income. The comparative figures have been restated and, accordingly, do not correspond with those for 2024. 2) An outcome is only presented in the case of a negative earnings impact. 3) The APM is defined in IFRS. Alternative performance measures
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Landshypotek Bank Annual Report 2025 36 Notes Corporate information This Annual Report pertains to Landshypotek Bank AB (publ), Corporate Registration Number 556500-2762, and is issued as of 31 December 2025. The financial statements have been approved by the Board of Directors of Landshypotek Bank (the “Bank”) as of 10 March 2026 and are subject to final adoption by the Annual General Meeting on 23 April 2026. The bank is domiciled in Stockholm and the address of the head office is Box 14092, SE-104 41 Stockholm. Landshypotek Bank is owned by Landshypotek Ekonomisk Förening, in which all of the Bank’s loan customers in the farming and forestry sector are members. Landshypotek Bank is specialised in lending to Swedish farming and forestry and lending for rural living. Landshypotek Bank also offers home - owner mortgages and savings products to the general public. Landshypotek Bank’s primary sources of funding comprise the capital market and deposits. Basis for preparing the annual accounts Landshypotek Bank prepares its annual accounts in accor - dance with the IFRS Accounting Standards and IFRIC inter - pretations as adopted by the EU (“statutory IFRS”) to the extent possible within the framework of the Swedish Annual Accounts Act for Credit Institutions and Securities Companies (ÅRKL) (1995:1559), the Swedish Pension Obligations Vesting Act and taking into account the relationship between accounting and taxation. Permissible exceptions and supplements to the IFRS Accounting Standards are stated in the Swedish Corporate Reporting Board’s recommendation RFR 2 Accounting for Legal Entities, ÅRKL and the Swedish Financial Supervisory Authority’s regulations and general guidelines for annual reports in credit institutions and securities companies (FFFS 2008:25). The accounting policies are essentially unchanged compared with the preceding year. The cost for the resolution fee has been separated from net interest income in the financial statements and is shown as a separate line item together with the fees for the deposit requirement for the 2025 financial year; compara - tive figures have been restated. The fees for the deposit require - ment pertain to lost interest income as a result of the Riksbank’s decision to require interest-free deposits with the Riksbank. Standards, amendments and interpretations coming into effect during the year No new standards, amendments and interpretations as well as annual improvement projects that have come into force had any material impact on these financial statements. New standards, amendments and interpretations that have not yet come into effect and were not applied in advance IFRS 18 Presentation and Disclosure in Financial Statements was issued in April 2024 but has yet to be adopted by the EU. IFRS 18 enter forces on 1 January 2027 and replaces IAS 1 Presentation of Financial Statements. The new accounting standard mainly primarily entails new requirements for the presentation of the statement of profit or loss and the disclosure of certain profit or loss performance measures. IFRS 18 may impact the presentation of the bank’s financial statements, but is not expected to have any impact on the financial performance and position, own funds or large exposures. The bank is analys - ing the effects of the new standard. No other new standards, amendments and interpretations as well as annual improvement projects that have not yet come into force are expected to have any material impact on these financial statements. Currency and comparative data The functional currency and presentation currency are SEK. All amounts are reported, unless otherwise specified, in SEK million. Comparative figures for the preceding year are stated in parentheses. Measurement of assets and liabilities in foreign currency T ransactions in foreign currency are measured in the functional currency at the rate of exchange prevailing on the transaction date. Monetary assets and liabilities in foreign currency are measured in the functional currency at the rate of exchange prevailing on the balance sheet date. Exchange-rate differ - ences that arise on translation of balance sheet items in foreign currency are recognised in profit or loss. Operating segments Landshypotek Bank does not prepare segment reporting pur - suant to IFRS 8, as the operations are viewed as one operating segment when monitoring and reporting to the company’s chief operating decision maker (CODM). The bank offers loans in Sweden with collateral in immovable property. All operations are conducted in one geographic area and no single customer accounts for 10 percent or more of the company’s income. Classification and measurement rules for financial assets Financial assets are divided into the following categories for measurement: • Financial assets at amortised cost • Financial assets at FVTOCI • Financial assets at FVTPL The company’s business model for administration of financial assets is used as the basis for the classification together with whether the contractual cash flows solely comprise capital and interest. Financial assets at amortised cost The bank’s loans and receivables are managed pursuant to a business model whose objective is to realise the assets’ cash flows to collect the contractual cash flows consisting only of principal and interest on the principal amount outstanding. These assets are therefore valued at amortised cost. Amortised cost pertains to the discounted present value of all future payments deriving from the instrument, where the discount rate comprises the asset’s effective interest rate at the acquisition date. Note 1 Accounting policies
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Landshypotek Bank Annual Report 2025 37 Financial assets at FVTOCI At specified times, the contractual terms for financial assets in this category must give rise to cash flows that only comprise repayments of capital and interest payments on the capital out - standing. The aim of the business model is to collect contractual cash flows on the holdings and to sell the financial assets. The business model for eligible treasury bills, bonds and other interest-bearing securities included in the liquidity portfolio encompasses both the collection of contractual cash flows and selling. The liquidity portfolio is recognised at FVTOCI except in those cases where this would lead to accounting mismatch. Gains and losses that arise as a result of changes in value, which are not attributable to effective interest and impairment, are recognised after taxes via other comprehensive income in the fair-value reserve under equity until the financial asset is sold or derecognised from the balance sheet. The loss allowance for assets is also recognised in other comprehensive income. When the financial asset is derecognised from the balance sheet, the accumulated gain or loss, previously recognised in equity, is recognised in profit or loss. Interest income is rec - ognised in profit or loss using the effective-interest method. Financial assets at FVTPL If a financial asset cannot be classified in one of the above categories, it must be recognised at FVTPL. The company also has the possibility, on initial recognition, to irrevocably identify a financial asset as measured at FVTPL to eliminate or reduce accounting mismatch. Classification and measurement of financial liabilities Under the main rule, all financial liabilities are classified as measured at amortised cost with certain exceptions, such as derivatives with negative values. Aside from derivatives, all liabilities are recognised at amortised cost. Derivatives with negative market values are recognised as financial liabilities at FVTPL. Hedge accounting Hedge accounting is divided into different types of hedging relationships, depending on the purpose of the hedge. Landshy - potek Bank applies hedge accounting for fair-value hedges. The accounting policies in IAS 39 are applied for hedge accounting for macro hedging and the accounting policies in IFRS 9 are applied for other types of hedge accounting. Each hedging rela - tionship identified is expected to be effective for the entire tenor. Effectiveness is tested partly through forward-looking (pro - spective) and partly with a retrospective (hindsight) evaluation. Fair-value hedges for borrowing Hedge accounting is applied for parts of the exposure to inter- est-rate risk in fixed-interest financial liabilities. The aim of the hedge being to offset changes in fair value due to movements in market interest rates. Interest-rate swaps and cross-currency interest-rate swaps are used for this purpose. Changes in the fair value of a derivative formally identified as a hedging instrument, and which fulfil the requirements for hedge accounting, are rec- ognised in profit or loss under the heading “Net result of financial transactions.” In addition, changes in fair value, attributable to the hedged risk, of a hedged liability are also recognised under this heading. Cross-currency basis spreads are excluded from the hedging relationship for cross-currency interest-rate swaps and, instead, recognised in other comprehensive income. Macro hedging of fair value in the credit portfolio Hedge accounting is applied for parts of the exposure to interest-rate risk in fixed-interest financial lending. The aim of the hedge being to offset changes in fair value due to movements in market interest rates. For this purpose, groups of loans with similar risk exposure are identified as a portfolio, which is then hedged using interest-rate swaps. Changes in the fair value of a derivative formally identified as a hedging instrument, and which fulfil the requirements for hedge accounting, are recognised in profit or loss under the heading “Net result of financial transac - tions.” Changes in value attributable to the hedged risk for the hedged credit portfolio are recognised in profit or loss under the heading “Net result of financial transactions” and in the balance sheet on a separate line, “Value change of interest-hedged items in portfolio hedges,” in connection with “Loans to the public.” Fair-value hedges in fixed-interest investments Hedge accounting is applied for fixed-interest bonds in the liquidity portfolio. The hedge aims to cover any changes in fair value excluding credit spreads. Interest-rate swaps are used for this purpose. Changes in the fair value of a derivative formally identified as a hedging instrument, and which fulfil the requirements for hedge accounting, are recognised in profit or loss under the heading “Net result of financial transactions.” In addition, changes in fair value, attributable to the hedged risk, of a hedged asset are also recognised under this heading. The credit spread is recognised under Other comprehensive income. Discontinuation of hedge accounting Hedge accounting is terminated when the hedged item or hedging instrument is sold or expires and when the criteria for hedge accounting are no longer met. Gains or losses, which for cash-flow hedges and fair-value hedges in investments were previously recognised in other comprehensive income, are transferred to profit or loss in conjunction with divestment of the underlying instrument and recognised there under the heading “Net result of financial transactions.” If a fair-value hedge is no longer assessed as effective, the hedging instrument is reclas - sified as a derivative for trading. The accumulated change in fair value for the hedged item at the point in time when the hedging relationship ends is periodised via the net result of financial transactions over the hedged item’s remaining time to maturity. Repos and collateral A repo, also known as a repurchase agreement, is an agreement between two parties to sell and buy back the same asset at a pre- determined price. In these agreements, the asset remains on the seller’s balance sheet since the seller retains all risks associated with the asset. When the bank purchases a repo, it is recorded in the balance sheet under liabilities to credit institutions and in the case of a reverse repo, asset repo, it is recorded in the balance sheet as an asset under loans to credit institutions. The bank has the right to receive collateral in the form of cash, which is reported in the balance sheet under other liabilities. The underlying paper remains on the counterparty’s balance sheet. For more information on collateral, refer to Note 2 Risks and Note 34 Offsetting disclosures. The bank has no encumbered collat- eral in the form of properties taken over in foreclosure.
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Landshypotek Bank Annual Report 2025 38 Transaction-date or settlement-date accounting and derecognition Financial assets and liabilities attributable to lending and depos - its are recognised on the settlement date. Business transac - tions in the money, bond or equity markets are recognised on the transaction date when the material rights and risks transfer between the parties. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the bank has transferred substantially all the risks and rewards of ownership to another party. Financial liabil - ities are derecognised when the liability is extinguished through the fulfilment, cancellation or expiry of the contract. Landshypotek has no modified loans. Netting Financial assets and financial liabilities are offset only when there is a legally enforceable right to offset the items and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Landshypotek Bank does not offset assets and liabilities in the balance sheet. Intangible assets An intangible asset is an identifiable, non-monetary asset without physical form. An asset is a resource that is expected to yield future economic benefits over which control is exercised. Expenses associated with intangible assets are capitalised from the point in time when it is probable that the economic ben - efits that can be calculated in a reliable manner will arise. Amorti - sation is based on the economic life of the asset and starts when the asset can be put to use. Intangible assets are amortised over a period of five to seven years. Straight-line depreciation is used. T esting is conducted of the need for impairment on an annual basis or when there is an indication that the asset may have diminished in value. T angible assets T angible assets are valued at cost less accumulated depre - ciation and any impairment. Each component of a tangible non-current asset with a cost that is significant relative to the aggregate cost of the asset is depreciated separately. The depreciation method used reflects how the future economic benefits of the asset are expected to be used. T angible assets are depreciated over a period of five years. Straight-line depre - ciation is used. Leases Landshypotek Bank has chosen to apply IFRS 16 Leases in legal entities and thus does not use the exemption permitted in RFR 2. Leases pertain to agreements where the bank is the lessee of premises. The right to utilise the leased asset is recognised under T angible assets and the present value of lease fees are recognised as a corresponding liability under Other liabilities. The bank applies the exceptions permitted under the account - ing standard in terms of short-term leases and leases of low- value assets. These leases are recognised as other expenses. Depreciation of right-of-use assets and interest expenses pertaining to lease liabilities are recognised in profit or loss. The lease liability is measured at the acquisition date at the present value of unpaid lease payments at the commencement date. Thereafter, the lease liability increases with the interest expense on the lease liability and decreases in line with lease payments made. The right-of-use asset is initially recognised at cost, which is the original value of the lease liability, including certain other expenses such as lease payments that were paid on or prior to the commencement date. The right-of-use asset is depreciated on a straight-line basis from the commencement date until the earlier of the end of the asset’s useful life and the end of the lease term, which for the bank is normally the end of the lease term. Lease payments are discounted using the incre - mental borrowing rate. Gains or losses attributable to changes in leases are recognised in profit or loss. For more information on leases, refer to Note 8 Depreciation, amortisation and impairment of intangible and tangible non-current assets, Note 18 T angible assets and Note 24 Other liabilities. Provisions Provisions consist of recognised expected negative outflows of resources. Provisions are recognised when a legal or informal obligation has arisen as a result of events that have occurred when it is probable that an outflow of resources will be required to settle the undertaking. Provisions mainly comprise expected credit losses on off-balance-sheet items consisting of commit - ted, but undisbursed credits. Net interest income Interest income and interest expense on financial assets and liabilities are recognised in profit or loss in accordance with the effective-interest method under the respective headings “Interest income” and “Interest expense.” Net commission income Net commission income includes income from the Gårdspa - ketet (ENG: Farm Package), which comprises a fixed fee for the bank’s Farm & Forestry customers as well as costs attributable to services received, such as fees and payment mediation commissions. Net result of financial transactions Realised gains and losses attributable to the purchase and sale of bonds and derivative instruments in the liquidity reserve and the buyback of bonds are recognised under the heading “Net result of financial transactions.” Moreover, unrealised gains and losses attributable to market-value changes of derivative instruments, holdings of financial assets at FVTPL and changes in fair value attributable to the hedged risk of the hedged assets or liabilities in a fair-value hedge are also recognised here. Personnel costs All direct personnel costs, including various forms of social security costs and payroll overheads are classified as person - nel costs. See Note 7 General administrative expenses for more information. Pension costs The bank has both defined-contribution (BTP1) and defined-benefit (BTP2) pension plans. Fixed contributions are paid for BTP1, which is managed by SPP , and no further obliga - tions arise. BTP2 is mainly a defined-benefit pension plan and is calculated in accordance with Finansinspektionen’s regulations (FFFS 2019:9).
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Landshypotek Bank Annual Report 2025 39 Recognition of expected credit losses Credit portfolio Expected credit losses (ECLs) are recognised for the credit portfolio. Each asset is categorised to one of three stages: • Stage 1 comprises performing assets with no significant increase in credit risk compared with initial recognition; • Stage 2 comprises performing assets with a significant increase in credit risk compared with initial recognition; and • Stage 3 comprises defaulted loans. How the asset’s PD risk class has deteriorated since the asset arose is measured, inter alia, to establish whether a loan asset has a significantly increased credit risk compared with the credit risk on initial recognition. If the risk classification exceeds internal limits for increased credit risk, the asset is classified as Stage 2. Where payments are more than 30 days past due, a significant increase in credit risk is also assumed to have taken place. Other qualitative factors used to categorise to Stage 2 comprise the existence of concessions, given that the asset is not in default. If necessary, it is also possible to make a manual adjustment to Stage 2 for financial assets. The definition of default is that set out in external capital ade - quacy rules, namely, that the customer is more than 90 days late with a payment of a material amount or where indications exist that the customer is unable to meet its obligations to the bank. Credit-impaired assets coincide fully with the bank’s definition of default and thus include both absolute and relative thresholds. Therefore, similar to the internal definition of default, absolute and relative exposure thresholds are both applied for the asset to be categorised as Stage 3. For Stage 1 assets, the loss allowance is calculated at an amount corresponding to 12-months’ expected credit losses. For assets in stages 2 and 3, the loss allowance corresponds to the expected credit losses (ECLs) for the assets’ remaining term. The ECLs for performing assets (stages 1 and 2) are initially measured according to the internal calculation model. The calculation model weighs together the ECL outcomes based on three macro-economic scenarios (base, improved and deteriorated) for annual expected credit losses over the assets’ lifetimes. ECLs for Stage 3 assets are estimated mainly through manual valuation of expected losses based on three scenarios. For the credit portfolio, one of the scenarios comprises a fore - cast of macro-economic scenarios for the lifetime calculation. Parameter projections are made for the first five years and, thereafter, the scenario returns to a long-term expected trend of up till 30 years. ECL calculation for the credit portfolio is based on the same basic estimates applied for capital adequacy purposes, with the difference that they are aligned with IFRS 9 requirements and calibrated to reflect current economic conditions. For the credit portfolio, changes in risk of default and property prices have the greatest impact on the size of ECLs. Committed, but undisbursed credits ECLs are recognised for committed, but undisbursed credits. ECLs for committed, but undisbursed credits are calculated using existing IRB models and take forward-looking information into consideration. Liquidity portfolio ECLs are calculated for the parts of the liquidity portfolio that are classified as financial assets at FVTOCI. ECLs for the liquidity portfolio are calculated based on, inter alia, default rates according to Standard & Poor’s rating matrix and on internal his - toric LGD data from credits secured by mortgages on immov - able property. Assets in the liquidity portfolio with an investment grade corresponding to BBB- or better (according to Standard & Poor’s) are considered low risk. The liquidity portfolio com - prises only high-quality securities, which are collateralised at least quarterly, and is therefore classified as Stage 1 and valued at 12-months’ expected credit losses, in line with the exemption for low credit risk exposures. Expected credit losses for the liquidity reserve are a negligible amount and are therefore not recognised in the accounts. Confirmed credit losses When a credit loss is deemed definitive it is recognised as a confirmed credit loss and the recognised value of the receiv - able together with the appurtenant impairment for an expected credit loss is derecognised from the balance sheet. A credit loss is deemed definitive and confirmed when the collateral has been realised and receipt recognised, or when a claim is waived on either legal or voluntary grounds. Received payments per - taining to written off financial assets are recognised in income as recoveries. Restructuring of loans Agreements on concessions that entail a restructuring of the loan receivable are only made on an exceptional basis since all lending is against collateral, the value of which is realised in the event of default. When applicable, restructured loan receivables are commented on in the Administration Report. T ax expenses Recognised tax expenses include taxes for the current year, adjustments relating to prior years’ current taxes and changes in deferred taxes. Deferred taxes are the taxes attributable to all temporary differences that arise between carrying amounts and values for tax purposes of assets and liabilities. Group contributions Group contributions are recognised in accordance with the main rule in RFR 2. Group contributions paid by Landshypotek Bank AB to the Parent Association, Landshypotek Ekonomisk Fören- ing, are recognised directly in equity in Landshypotek Bank and as financial income at Landshypotek Ekonomisk Förening. Judgments and estimates The preparation of annual accounts and the application of accounting standards require management to make judgments and estimates based on historical experience and to make assumptions that are believed fair and reasonable. Estimates and assumptions may impact amounts recognised in the financial statements and actual outcomes may differ from the judgments and estimates made. The most material area that can be affected by judgments and estimates is the calculation of expected credit losses. For more information on the calculation of expected credit losses, see Note 9 Net credit losses and the Recognition of expected credit losses section of the Account - ing Policies.
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Landshypotek Bank Annual Report 2025 40 Note 2 Risks Risk arises in all financial operations. Sound management of these risks is a core focus at Landshypotek Bank. The foundation of sound risk management is a strong, shared risk culture with responsibility and decision making based on solid knowledge of the bank’s customers. Landshypotek Bank strives to achieve a high degree of risk awareness and a low degree of risk undertaking. A high degree of risk awareness means that each employee understands the risks implied for the company by the individual’s work duties, the degree of risk undertaking that is acceptable and how the indi - vidual needs to behave so as to avoid exceeding the acceptable level of risk. Low risk undertaking is achieved through a combination of a high degree of risk awareness, a low acceptance level for risk undertaking, a distinct decision-making structure, shared definitions and assessment principles, as well as sophisticated tools for risk assessment. The Board specifies the acceptance level for risk undertaking and the CEO ensures that this level of acceptance is implemented in business activities. The main risks to which Landshypotek Bank is exposed are defined below. For further information regarding risks, refer to the Information regarding capital adequacy and risk management, Pillar III. Credit risk Definition Credit risk is defined as the risk that Landshypotek Bank does not receive payment as agreed and that the value of the collat - eral is not adequate and therefore will not cover the outstanding claim. Credit risk in the credit portfolio Landshypotek Bank’s loans to the public totalled SEK 118.2 bil - lion (111.1). Lending encompasses lending to entrepreneurs and homeowners primarily against collateral in immovable property. All lending takes place in Sweden. Management of credit risk Credit process The Risk Policy, which is set by the Board, sets out the frame - works and fundamental principles for granting credit at Land - shypotek Bank. All granting of credit at the bank is to be based on customers’ repayment capacity and loans are only granted if, based on sound reasoning, commitments can be expected to be fulfilled. In addition to a qualitative assessment, the bank’s PD models (estimation of the probability of default) are also used in the assessment of credit risk, and new approvals are only permitted for customers with a good risk rating. The ECL calculation is based on the same PD models, but with appro - priate adjustments to enable capturing an estimate that is as close as possible to the expected value and takes into account forward-looking information. T o further protect the bank against credit losses, accepted collateral primarily comprises collateral in immovable property. Credit portfolio monitoring All commitments are subject to credit monitoring on a sched - uled and ongoing basis. Customers with higher risk levels are monitored more frequently. All credit decisions are to be preceded by a careful risk assessment and risk classification. The credit control unit uses portfolio analysis and stress tests to identify sectors and segments, where risk has risen, for further assessment. Management of problem credits Operations at Landshypotek Bank bear full responsibility for customer relationships, profitability and risks in all customer commitments. When needed, operations are assisted by the central departments with in-depth analyses and with manag - ing problem customers and insolvency cases. The Credit and Business support unit assists with expertise with regard to problem commitments and confirmed insolvency cases. The bank’s insolvency unit works primarily with defaulting commit - ments with the aim of discontinuing the loans with a minimal loss for the bank. The insolvency unit is also responsible for the process of individually estimating expected credit losses for all defaulted loans based on information on the collateral value and other available information, which is then used directly in the ECL calculation. Counterparty risk, credit risk in treasury operations Landshypotek Bank’s counterparty risks comprise credit risk for counterparties in the liquidity reserve, for counterparties with whom Landshypotek Bank has derivative transactions and for counterparties with whom the bank has deposits. The bank’s liquidity reserve comprises interest-bearing securities with high credit ratings and which are all issued by Nordic credit The liquidity reserve broken down by rating, measured at fair value 2025 SEK million Covered bonds Bonds issued by municipalities and regions To t a l AAA 6,244 2,981 9,226 AA+ – 4,135 4,135 Total 6,244 7,116 13,361 2024 SEK million Covered bonds Bonds issued by municipalities and regions To t a l AAA 6,064 2,392 8,456 AA+ – 2,792 2,792 Total 6,064 5,184 11,248
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Landshypotek Bank Annual Report 2025 41 institutions, Swedish municipalities or regions. The objective of the liquidity reserve is to reduce the bank’s liquidity risk. The bank enters into derivative transactions (swap contracts) to reduce interest-rate and currency risk. Counterparties with whom the bank enters into swap contracts are Swedish or international banks with high credit ratings and with whom International Swaps and Derivatives Association (ISDA) agreements and unilateral Credit Support Annexes (CSAs) to Landshypotek Bank’s benefit are in place, which reduce counterparty risk. The bank never pledges collateral since the derivative contracts are in the pool for covered bonds. Refer to the table, Derivative contracts broken down by rating, measured at fair value, for an account of the derivatives’ exposure amount pursuant to the standardised approach for measuring counterparty credit risk exposures (SA-CCR) in the CRR. Liquidity risk Definition Liquidity risk is defined as the risk that Landshypotek Bank will be unable to discharge its payment obligations at the due date. Liquidity risk T o a great extent, Landshypotek Bank is dependent on market funding and the inability to discharge payment obligations connected to market funding can have immediate and serious consequences for the bank. Management of liquidity risk T o maintain good payment capacity, the Board has decided that a liquidity buffer should be available that corresponds to at least the forecast, accumulated net cash outflows for the next 180- day period and the outflows of deposits in a stressed scenario, without any possibility of refinancing. The liquidity portfolio was 1.3 times (2.0) larger than refinancing requirements for the next six months. The ratio is affected by the allocation of maturing debt for longer than six months and can, therefore, change between measurement periods. Landshypotek Bank’s holdings in its liquidity reserve are of the type that may be used as security for loans from the Riksbank as well as for repo financing with financial counterparties. This liquidity reserve gives the bank the opportunity of bridging tem - porary strains on liquidity, but also provides the opportunity of procuring the necessary funds in times of severe liquidity crisis by borrowing against or selling assets in an orderly fashion to reduce the financing need. The bank also measures the liquidity reserve, based on it covering net outflows over a 30-day signifi - cant stress period in accordance with external regulations. The bank’s LCR under EU Regulation 575/2013 and Commission Delegated Regulation (EU) 2015/61 was 300 percent (275) for Landshypotek Bank’s consolidated situation and 300 percent (275) for Landshypotek Bank. Landshypotek Bank has started to offer deposits with the aim of diversifying its funding and, thereby, reducing refinancing risk. Deposits with the bank amounted to SEK 25.9 billion (27.1). Landshypotek Bank performs regular stress tests of liquidity risk. The stress tests are prepared pursuant to Finansinspek - tionen’s regulations (FFFS 2010:7) regarding management of liquidity risks in credit institutions and investment firms, which set general requirements for stress tests. The scenarios are designed according to idiosyncratic and system-wide outcomes. The outcome and the bank’s actions are used to develop and strengthen the bank’s preparedness in the event of potentially stressed liquidity. Derivative contracts broken down by rating, measured at fair value 2025 SEK million Positive market value Exposure amount before credit risk mitigation techniques incl. netting gains and collateral received 2) 3) 4) Exposure amount after credit risk mitigation techniques incl. netting gains and collateral received 2) 3) 4) Credit quality stage 1) 1 – 368 368 2 358 343 343 3 – 24 24 4–6 86 – – Total 444 734 734 2024 SEK million Positive market value Exposure amount before credit risk mitigation techniques incl. netting gains and collateral received 2) 3) 4) Exposure amount after credit risk mitigation techniques incl. netting gains and collateral received 2) 3) 4) Credit quality stage 1) 1 431 474 474 2 747 502 502 3 120 28 28 4–6 – – – Total 1,298 1,004 1,004 1) In accordance with the Commission Implementing Regulation (EU) 2021/2006. 2) Landshypotek received SEK 298 million (282) in cash collateral under derivative contracts. This cash collateral has not been taken into account in the above figures. 3) Netting gains amounted to SEK 118 million (239). 4) Exposure value of derivative instruments based on the standardised approach for measuring counterparty credit risk exposures (SA-CCR) stipulated in the CRR.
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Landshypotek Bank Annual Report 2025 42 Market risk Definition The market risks to which Landshypotek Bank is exposed are interest-rate risk, currency risk, credit-spread risk and basis- spread risk, and are defined as follows: Interest-rate risk The risk that the market value of discounted future inflows and outflows will develop negatively as a result of changes in interest rates. Currency risk The risk of losses on borrowed, lent or invested capital when exchange rates fluctuate. Credit-spread risk The risk of decreased market values as a consequence of widened spreads for risk-free interest for assets measured at fair value. Basis-spread risk The risk of decreased market values for derivatives entered into on borrowing in foreign currencies that cannot be compensated with a corresponding change in the market value of the issued debt instrument. Interest-rate risk Interest-rate risk arises when fixed-interest terms for assets and liabilities are mismatched, and as a consequence of utilising equity to finance fixed-term lending. It is measured, inter alia, as the changes in the present values of assets and liabilities that arise if there is a parallel shift in the interest-rate curve. The bank utilises interest-rate swaps as a tool for managing interest-rate risks. For more information on fixed interest rates, see the table Fixed-interest terms for interest-bearing assets and liabilities on page 43. The total impact of interest-rate risk on the balance sheet’s present values for a parallel upward movement of the inter - est-rate curve of one percentage point amounted to negative SEK 50 million (negative: 101). Currency risk The currency risk that arises when raising funds in currencies other than SEK is hedged by taking all of the cash flows in another currency and reflecting them in the derivative contracts used to hedge currency and interest-rate risk. In nominal amounts, the bank’s funding in foreign currency amounted to SEK 2.7 billion (2.8). Any changes in exchange rates will have no material impact on earnings. Credit-spread risk Credit-spread risk arises from fluctuations in credit spreads in Landshypotek Bank’s liquidity reserve and these also impact earnings. An increase in the credit spread of one basis point (1bp) would lead to a SEK 3.3 million (3.1) decrease in the value of the liquidity portfolio and would be recognised in other com - prehensive income. Basis-spread risk Basis-spread risk arises for Landshypotek Bank when the currency and interest-rate risks that arise in conjunction with borrowing in a foreign currency are reduced by swapping payments in foreign currency for payments in Swedish currency through cross-currency interest-rate swaps. However, if Landshypotek Bank does not terminate the swap agreements ahead of time, the net earnings impact on expiry of the swap agreements would be zero. Due to increased volatility in basis spreads, Landshypotek Bank has chosen not to take up any funding in foreign currencies since 2011. Operational risk Definition Operational risk, referred to at Landshypotek Bank as non- financial risk, is defined as the risk of losses as a result of inappropriate or failed internal processes, human error, faulty systems and external events including legal risk. The definition encompasses risks associated with operational risk, regulatory compliance risk and business model risk. The respective risk areas are broken down into sub-categories (for example, ICT and data security risk, physical security & security risk, third-party risk, risk of fraud, money laundering, etc.). Non-financial risk As a result of the bank’s business focus, non-financial risk at the bank is low. The bank conducts no trading operations or cash management, for example. Risks pertain to homeowner mort - gages, savings accounts and lending to farming and forestry. The bank has a low risk appetite, however, it is neither cost- effective nor possible to try to eliminate all non-financial risk. The bank aims to minimise and/or keep risks at a low level. This is achieved by creating a healthy risk culture and sound risk management where vital skills include effective risk identifica - tion, assessment of risk levels, taking actions, implementing the right controls and monitoring. Non-financial risk is inherent in all aspects of the bank’s oper - ations and is identified based on products, services, functions, processes and IT systems. Management of non-financial risk Awareness is raised and the risk of losses reduced through the identification and management of non-financial risk. The iden - tified risks are assessed on the basis of their likelihood of mate - rialising as well as on how the risk impacts the bank in terms of reputation; and disruption to processes, both regulatory and financial. The bank has a risk management system in which risks are registered, re-evaluated and continuously followed up. Each unit at the bank performs a regular risk analysis of the unit’s risk exposure and identifies risks linked to the bank’s products, ser - vices, functions, processes and IT systems. Incidents and the results of the risk analyses are reported quarterly to the Bank Management and the Board. The main purpose of these efforts is to ensure, as far as possible, early identification of non-finan - cial risks and to take actions to make certain these risks do not materialise. Risk analysis of the units is also complemented through Landshypotek Bank’s business continuity efforts. The aim of business continuity management is to identify the critical parts of operations and, thereafter, work to improve the robustness of these parts. Continuity management should also manage the type of events that cannot be foreseen in the risk analysis, but which could have major consequences for the bank. All new or changed products, processes and/or systems – including reor - ganisations – are evaluated using a shared approval process for material changes with the aim of identifying any potential non- financial risks, and to ensure that measures are implemented to protect Landshypotek from inadvertently taking on risk.
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Landshypotek Bank Annual Report 2025 43 Fixed-interest terms for interest-bearing assets and liabilities 2025 SEK million <3 months 3–12 months 1–3 years 3–5 years >5 years Total Assets Cash and balances with central banks 103 – – – – 103 Eligible treasury bills 4,192 100 – – 100 4,392 Loans to credit institutions 100 – – – – 100 Loans to the public 91,476 9,387 13,061 3,403 721 118,047 Bonds and other interest-bear - ing securities 3,634 800 3,750 750 – 8,934 Derivatives 29,032 249 19,712 7,074 2,835 58,902 To t a l 128,538 10,536 36,523 11,227 3,656 190,479 Liabilities Liabilities to credit institutions 1,143 – – – – 1,143 Deposits from the public 25,945 – – – – 25,945 Debt securities issued 65,767 249 19,862 7,072 2,840 95,790 Derivatives 34,070 9,875 11,475 2,420 780 58,620 Subordinated liabilities 600 – – – – 600 To t a l 127,525 10,124 31,337 9,492 3,620 182,098 Net 1,013 412 5,186 1,735 36 8,381 Interest-rate sensitivity, net 64 -1 -2 -9 -2 50 Cumulative interest-rate sensitivity 64 63 61 52 50 290 2024 SEK million <3 months 3–12 months 1–3 years 3–5 years >5 years Total Assets Cash and balances with central banks – – – – – – Eligible treasury bills 3,168 – 100 – – 3,268 Loans to credit institutions 297 – – – – 297 Loans to the public 84,546 6,678 14,523 4,430 790 110,967 Bonds and other interest-bear - ing securities 3,015 – 5,050 – – 8,065 Derivatives 29,696 5,700 14,559 9,859 3,001 62,815 To t a l 120,722 12,378 34,232 14,289 3,791 185,412 Liabilities Liabilities to credit institutions 754 – – – – 754 Deposits from the public 27,090 – – – – 27,090 Debt securities issued 52,606 5,700 14,709 9,860 3,007 85,882 Derivatives 37,305 5,400 16,030 2,830 810 62,375 Subordinated liabilities 600 – – – – 600 To t a l 118,355 11,100 30,739 12,690 3,817 176,701 Net 2,368 1,278 3,493 1,599 -26 8,712 Interest-rate sensitivity, net -2 -1 -2 -2 0 -7 Cumulative interest-rate sensitivity -2 -3 -5 -7 -7 -24 The above table differs from the maturity analysis, which includes all contracted flows, that is, nominal amounts plus contracted interest payments. The table shows nominal amounts for derivatives. Nominal amounts for inflows from derivatives are shown on the asset side and nominal amounts for outflows on the liability side. The amounts have been allocated according to the dates when interest is reset. This differs from the maturity analysis, which includes all contracted flows, that is, nominal amounts plus contracted interest payments.
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Landshypotek Bank Annual Report 2025 44 Maturity analysis for financial assets and liabilities 2025 SEK million On demand <3 months 3–12 months 1–3 years 3–5 years >5 years Total Financial assets Cash and balances with central banks 103 – – – – – 103 Eligible treasury bills – 24 278 1,751 2,644 106 4,803 Loans to credit institutions 100 – – – – – 100 Loans to the public – 1,446 2,283 5,431 4,929 106,344 120,434 Bonds and other interest- bearing securities – 24 2,114 4,685 2,577 – 9,430 Derivatives – 784 1,246 2,607 1,680 795 7,112 To t a l 204 2,278 5,951 14,474 11,830 107,245 141,982 Liabilities Liabilities to credit institutions – 1,143 – – – – 1,143 Deposits from the public 25,945 – – – – – 25,945 Debt securities issued – 1,537 14,576 42,853 41,881 3,458 104,305 Derivatives – 752 1,213 2,357 1,715 985 7,022 Subordinated liabilities – 604 – – – – 604 Other liabilities – 20 341 – – – 361 To t a l 25,945 4,056 16,130 45,210 43,596 4,443 139,380 Contracted cash flows -25,741 -1,777 -10,179 -30,736 -31,766 102,802 2,603 Granted credit facilities – 286 – – – – 286 Committed, but undisbursed credits – 1,917 – – – – 1,917 2024 SEK million On demand <3 months 3–12 months 1–3 years 3–5 years >5 years Total Financial assets Cash and balances with central banks – – – – – – – Eligible treasury bills – 196 290 2,545 226 – 3,257 Loans to credit institutions 297 – – – – – 297 Loans to the public – 1,408 2,342 5,392 4,771 99,708 113,621 Bonds and other interest- bearing securities – 22 87 6,117 1,039 – 7,265 Derivatives – 327 953 3,149 1,588 1,310 7,327 To t a l 297 1,953 3,672 17,203 7,624 101,018 131,767 Liabilities Liabilities to credit institutions – 754 – – – – 754 Deposits from the public 27,090 – – – – – 27,090 Debt securities issued – 5,326 12,286 38,173 33,762 3,652 93,199 Derivatives – 412 1,113 2,913 1,320 1,338 7,096 Subordinated liabilities – – 5 605 – – 610 Other liabilities – 18 337 8 – – 363 To t a l 27,090 6,510 13,741 41,699 35,082 4,990 129,112 Contracted cash flows -26,792 -4,557 -10,069 -24,496 -27,458 96,028 2,655 Granted credit facilities – 307 – – – – 307 Committed, but undisbursed credits – 2,090 – – – – 2,090 The above tables include all contracted cash flows. The amounts are not discounted and are recognised during the time slot when Landshypotek is entitled to request payment or has an obligation or right to repay. Future variable rates of interest have been included in the calculation for derivatives and financial liabilities. Interest-rate derivatives are settled on a net basis, while currency interest-rate derivatives are settled on a gross basis, which is reflected in the above table. This entails that contracted amounts on maturity are only included for currency interest-rate derivatives. All flows are stated net for interest-rate derivatives.
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Landshypotek Bank Annual Report 2025 45 Note 3 Risk and capital adequacy The bank and its consolidated situation (Landshypotek Ekonomisk Förening and Landshypotek Bank AB) belong to supervisory category 3 according to Finansinspektionen’s annual supervisory review and are categorised as other institutions under Regulation (EU) No 575/213 on prudential requirements for credit institutions and investment firms (the Capital Require- ments Regulation (CRR)). The information in this note refers to the information that must be disclosed pursuant to the capital adequacy disclosure requirements in the CRR, part eight and Finansinspektionen’s regulations FFFS 2010:7, FFFS 2014:12 and FFFS 2008:25. Capital adequacy 2025 The total capital ratio for the consolidated situation amounted to 22. 1 percent compared with 19.0 percent as of 31 Decem- ber 2024 and the CET1 capital ratio was 19.3 percent (16. 1). At Landshypotek Bank AB, the total capital ratio amounted to 23.2 percent (19.6) and the CET1 capital ratio was 18.9 percent (15.8). The minimum capital requirement amounted to 8 percent of the total risk-weighted exposure amount. The combined buffer requirement amounts to 4.5 percent and breaks down as 2.5 per- cent in the form of the capital conservation buffer and 2.0 percent in the form of the countercyclical capital buffer. The combined buffer requirement must be covered by CET1 capital. In October 2024, the bank received the result of Finansinspek- tionen’s supervisory review and evaluation process (SREP). At Group level, the bank has to meet a Pillar 2 requirement (P2R) of 1.9 percent of the Group’s total risk-weighted exposure amount. Moreover, at Group level, the bank should hold additional capital in the form of Pillar 2 guidance (P2G) of 0.5 percent. Accordingly, the capital requirement as assessed by Finansinspektionen for the consolidated situation, including P2G, was 14.9 percent and should be compared with own funds of 22. 1 percent. The leverage ratio for the consolidated situation amounted to 5.5 percent of the total exposure measure (5.6). The minimum capital requirement for the leverage ratio was 3.0 percent, while Swe- den’s financial supervisory authority has also assigned a P2G of 0.5 percent to the consolidated situation. The internally assessed capital requirement for the consolidated situation was SEK 5.0 billion (5.6) and should be compared with own funds of SEK 7.7 billion. The bank is developing an LGD model for retail exposures. Until further notice, and pursuant to Article 3, extra capital is being maintained corresponding to an REA of SEK 1, 149 million.
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Landshypotek Bank Annual Report 2025 46 EU CC1 – Composition of regulatory own funds Consolidated situation SEK million 31 Dec 2025 31 Dec 2024 1 Capital instruments and the related share premium accounts 2,159 2,071 of which: member contributions 2,159 2,071 of which: share capital 2 Retained earnings 1) 4,703 4,567 3 Accumulated other comprehensive income (and other reserves) -17 -39 EU-5a Independently reviewed interim profits net of any foreseeable charge or dividend 241 211 CET1 capital before regulatory adjustments 7,085 6,811 7 Additional value adjustments -13 -11 8 Intangible assets (net of related tax liability) (negative amount) -42 -42 12 Negative amounts resulting from the calculation of expected loss amounts -286 -393 27a Other regulatory adjustments -3 -2 28 T otal regulatory adjustments to CET1 capital -344 -448 29 CET1 capital 6,741 6,363 30 Capital instruments and the related share premium accounts – – 31 of which: classified as equity under applicable accounting standards – – 34 Qualifying Tier I capital included in consolidated A T1 capital issued by subsidiaries and held by third parties 517 608 44 Additional Tier 1 (A T1) capital 517 608 45 Tier 1 capital (T1 = CET1 + A T1) 7,259 6,971 46 Capital instruments and the related share premium accounts 48 Qualifying own funds instruments included in consolidated Tier 2 capital issued by subsidiaries and held by third parties 437 508 58 Tier 2 (T2) capital 437 508 59 T otal capital (TC = T1 + T2) 7,695 7,479 60 T otal risk-weighted exposure amount 34,893 39,466 61 CET1 capital ratio (%) 19.3 16.1 62 Tier 1 capital ratio (%) 20.8 17.7 63 T otal capital (%) 22.1 19.0 64 Institution CET1 overall capital requirements (%) 10.1 10.1 65 of which: capital conservation buffer requirement (%) 2.5 2.5 66 of which: countercyclical capital buffer requirement (%) 2.0 2.0 EU- 67b of which: additional own funds requirements to address risks other than the risk of excessive leverage (%) 2) 1.1 1.1 68 Common Equity Tier 1 capital (as a percentage of risk exposure amount) available after meeting the minimum capital requirements 2) 12.2 9.0 1) Item includes other contributed equity 2) The calculation includes both Pillar I and Pillar II in the minimum capital requirement. Other communication from the bank only encompasses Pillar I.
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Landshypotek Bank Annual Report 2025 47 Capital requirements Consolidated situation SEK million 31 Dec 2025 31 Dec 2024 Internally assessed capital requirement 1) Pillar I capital requirement 2,791 3,157 Percentage of total risk-weighted exposure amount 8.0 8.0 Pillar II capital requirement 656 693 Percentage of total risk-weighted exposure amount 1.9 1.8 Combined buffer requirement 1,570 1,776 Percentage of total risk-weighted exposure amount 4.5 4.5 T otal capital requirement 5,018 5,627 Percentage of total risk-weighted exposure amount 14.4 14.3 Own funds (Tier 1 capital + Tier 2 capital) 7,695 7,479 Percentage of total risk-weighted exposure amount 22.1 18.9 Capital requirement as assessed by Finansinspektionen 2) Pillar I capital requirement 2,791 3,157 Percentage of total risk-weighted exposure amount 8.0 8.0 Pillar II capital requirement 663 750 Percentage of total risk-weighted exposure amount 1.9 1.9 Combined buffer requirement 1,570 1,776 Percentage of total risk-weighted exposure amount 4.5 4.5 Capital requirement, Pillar II guidance 174 197 Percentage of total risk-weighted exposure amount 0.5 0.5 T otal capital requirement (incl. Pillar II guidance) 5,199 5,881 Percentage of total risk-weighted exposure amount 14.9 14.9 Own funds (Tier 1 capital + Tier 2 capital) 7,695 7,479 Percentage of total risk-weighted exposure amount 22.1 18.9 Leverage ratio requirement 3) Leverage ratio requirement 3,995 3,708 Percentage of total exposure amount for the leverage ratio 3.0 3.0 Pillar II capital requirement – – Percentage of total exposure measure for the leverage ratio – – Capital requirement, Pillar II guidance 666 618 Percentage of total exposure measure for the leverage ratio 0.5 0.5 T otal capital requirement (incl. Pillar II guidance) 4,661 4,326 Percentage of total exposure measure for the leverage ratio 3.5 3.5 Tier 1 capital 7,259 6,971 Percentage of total exposure amount for the leverage ratio 5.5 5.6 1) Pertains to Pillar I capital requirements pursuant to the Capital Requirements Regulation (EU) No 575/2013, Pillar II capital requirements according to the bank’s assessment and the combined buffer requirement pursuant to the Capital Buffers Act (2014:966). 2) Pertains to Pillar I capital requirements pursuant to the Capital Requirements Regulation (EU) No 575/2013, Pillar II capital requirements according to Finans- inspektionen’s (SREP 2024) and the combined buffer requirement pursuant to the Capital Buffers Act (2014:966). 3) Pertains to the leverage ratio requirement pursuant to the Capital Requirements Regulation (EU) No 575/2013 and Pillar II capital requirements according to Finansinspektionen’s (SREP 2024). The leverage ratio requirement was introduced in June 2021.
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Landshypotek Bank Annual Report 2025 48 Own funds requirement by risk, approach and exposure class Consolidated situation 31 Dec 2025 SEK million Exposure value1) Risk-weighted exposure amount2) Own funds requirement3) Average risk weight4) Credit risk – IRB approach 118,757 16,596 1,328 14% Retail – real estate collateral 70,496 4,616 369 7% Corporates 48,191 11,909 953 25% Other non-credit-obligation assets 71 71 6 100% Credit risk – Standardised approach 15,073 1,207 97 8% Central governments or central banks 127 0% Regional governments or local authorities 7,116 0% Institutions 1,149 271 22 24% Corporates 5 5 0 100% Retail 18 12 1 70% Secured by mortgage liens on immovable property 411 291 23 71% Exposures in default 2 3 0 131% Covered bonds 6,244 624 50 10% Operational risk 1,778 142 Credit valuation adjustment risk 733 1,103 88 150% Additional risk exposure amount under Article 458 CRR (risk-weight floor) 13,060 1,045 Additional stricter prudential requirements based on Article 3 CRR 1,149 92 To t a l 134,564 34,893 2,791 Consolidated situation 31 Dec 2024 SEK million Exposure value1) Risk-weighted exposure amount2) Own funds requirement3) Average risk weight4) Credit risk – IRB approach 111,002 23,109 1,849 21% Retail – real estate collateral 66,175 5,482 439 8% Corporates 44,718 17,519 1,401 39% Other non-credit-obligation assets 109 109 9 100% Credit risk – Standardised approach 13,653 1,419 114 10% Central governments or central banks 89 0 0 0% Regional governments or local authorities 5,184 0 0 0% Institutions 1,302 419 34 32% Corporates 9 9 1 100% Retail 31 21 2 68% Secured by mortgage liens on immovable property 972 361 29 37% Exposures in default 1 2 0 135% Covered bonds 6,064 606 49 10% Operational risk 2,102 168 Credit valuation adjustment risk 1,004 627 50 62% Additional risk exposure amount under Article 458 CRR (risk-weight floor) 11,062 885 Additional stricter prudential requirements based on Article 3 CRR 1,149 92 To t a l 125,659 39,468 3,157 1) Exposure value calculated in accordance with the CRR. 2) After application of the relevant risk weights. Risk weights for the IRB approach are based on internal risk classification and internal historical data while risk weights as prescribed in the CRR are applied for the standardised approach. 3) Calculated by multiplying the risk-weighted exposure amount by 8 percent. Does not include any buffer requirements. 4) Calculated by dividing the risk-weighted exposure amounts by exposure value for the respective risk/ exposure class.
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Landshypotek Bank Annual Report 2025 49 EU KM1 – Key metrics template Consolidated situation SEK million 31 Dec 2025 30 Sep 2025 30 Jun 2025 31 Mar 2025 31 Dec 2024 Available own funds (amounts) 1 Common Equity Tier 1 (CET1) capital 6,741 6,624 6,557 6,564 6,363 2 Tier 1 capital 7,259 7,136 7,069 7,066 6,971 3 T otal capital 7,695 7,565 7,499 7,489 7,479 Risk-weighted exposure amounts 4 T otal risk exposure amount 34,893 33,834 33,772 33,150 39,466 4a T otal risk exposure (pre-floor) 34,893 33,834 33,772 33,150 Capital ratios (as a percentage of risk-weighted exposure amount) 5 Common Equity Tier 1 ratio (%) 19.3 19.6 19.4 19.8 16.1 5b Common Equity Tier 1 ratio considering unfloored TREA (%) 19.3 19.6 19.4 19.8 6 Tier 1 ratio (%) 20.8 21.1 20.9 21.3 17.7 6b Tier 1 ratio considering unfloored TREA (%) 20.8 21.1 20.9 21.3 7 T otal capital ratio (%) 22.1 22.4 22.2 22.6 19.0 7b T otal capital ratio considering unfloored TREA (%) 22.1 22.4 22.2 22.6 Additional own funds requirements to address risks other than the risk of excessive leverage (as a percentage of risk-weighted exposure amount) EU 7d Additional own funds requirements to address risks other than the risk of excessive leverage (%) 1.9 1.9 1.9 1.9 1.9 EU 7e of which: to be made up of CET1 capital (percentage points) 1.1 1.1 1.1 1.1 1.1 EU 7f of which: to be made up of Tier 1 capital (percentage points) 1.4 1.4 1.4 1.4 1.4 EU 7g T otal SREP own funds requirements (%) 9.9 9.9 9.9 9.9 9.9 Combined buffer and overall capital requirements (as a percentage of risk-weighted exposure amount) 8 Capital conservation buffer (%) 2.5 2.5 2.5 2.5 2.5 9 Institution-specific countercyclical capital buffer (%) 2.0 2.0 2.0 2.0 2.0 11 Combined buffer requirement (%) 4.5 4.5 4.5 4.5 4.5 EU 11a Overall capital requirements (%) 14.4 14.4 14.4 14.4 14.4 12 CET1 available after meeting the total SREP own funds requirements (%) 12.2 12.5 12.3 12.7 9.0 Leverage ratio 13 T otal exposure measure 133,161 131,258 131,144 128,615 123,594 14 Leverage ratio (%) 5.5 5.4 5.4 5.5 5.6 Additional own funds requirements to address the risk of excessive leverage (as a percentage of total exposure measure) EU 14a Additional own funds requirements to address the risk of excessive leverage (%) – – – – – EU 14b of which: to be made up of CET1 capital (percentage points) – – – – – EU 14c T otal SREP leverage ratio requirements (%) 3.0 3.0 3.0 3.0 3.0 Leverage ratio buffer and overall leverage ratio requirement (as a percentage of total exposure measure) EU 14d Leverage ratio buffer requirement (%) – – – – – EU 14e Overall leverage ratio requirement (%) 3.0 3.0 3.0 3.0 3.0 Liquidity coverage ratio 15 T otal high-quality liquid assets (HQLA) (weighted value – average) 11,266 11,789 10,280 10,747 9,637 EU 16a Cash outflows – total weighted value 4,047 3,873 3,834 4,040 3,906 EU 16b Cash inflows – total weighted value 302 383 332 579 405 16 T otal net cash outflows (adjusted value) 3,745 3,490 3,502 3,461 3,501 17 Liquidity coverage ratio (%) 301 338 294 310 275 Net stable funding ratio 18 T otal available stable funding 116,786 111,423 109,655 113,561 109,167 19 T otal required stable funding 97,111 94,941 93,729 92,887 90,552 20 Net stable funding ratio (%) 120.3 117.4 117.0 122.2 120.6
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Landshypotek Bank Annual Report 2025 50 EU CC1 – Composition of regulatory own funds Landshypotek Bank AB SEK million 31 Dec 2025 31 Dec 2024 1 Capital instruments and the related share premium accounts 2,253 2,253 of which: member contributions of which: share capital 2,253 2,253 2 Retained earnings 1) 4,289 4,075 3 Accumulated other comprehensive income (and other reserves) 3 -19 EU-5a Independently reviewed interim profits net of any foreseeable charge or dividend 393 381 6 CET1 capital before regulatory adjustments 6,939 6,690 7 Additional value adjustments -13 -11 8 Intangible assets (net of related tax liability) (negative amount) -42 -42 12 Negative amounts resulting from the calculation of expected loss amounts -286 -393 27a Other regulatory adjustments -3 -2 28 T otal regulatory adjustments to CET1 capital -344 -448 29 CET1 capital 6,594 6,242 30 Capital instruments and the related share premium accounts 900 900 31 of which: classified as equity under applicable accounting standards 900 900 34 Qualifying Tier I capital included in consolidated A T1 capital issued by subsidiaries and held by third parties – – 44 Additional Tier 1 (A T1) capital 900 900 45 Tier 1 capital (T1 = CET1 + A T1) 7,494 7,142 46 Capital instruments and the related share premium accounts 600 600 48 Qualifying own funds instruments included in consolidated Tier 2 capital issued by subsidiaries and held by third parties – – 58 Tier 2 (T2) capital 600 600 59 T otal capital (TC = T1 + T2) 8,094 7,742 60 T otal risk-weighted exposure amount 34,901 39,438 61 CET1 capital ratio (%) 18.9 15.8 62 Tier 1 capital ratio (%) 21.5 18.1 63 T otal capital (%) 23.2 19.6 64 Institution CET1 overall capital requirements (%) 10.1 10.1 65 of which: capital conservation buffer requirement (%) 2.5 2.5 66 of which: countercyclical capital buffer requirement (%) 2.0 2.0 EU-67b of which: additional own funds requirements to address risks other than the risk of excessive leverage (%) 2) 1.1 1.1 68 Common Equity Tier 1 capital (as a percentage of risk exposure amount) available after meeting the minimum capital requirements 2) 13.3 9.3 1) Item includes other contributed equity 2) The calculation includes both Pillar I and Pillar II in the minimum capital requirement. Other communication from the bank only encompasses Pillar I.
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Landshypotek Bank Annual Report 2025 51 Capital requirements Landshypotek Bank AB SEK million 31 Dec 2025 31 Dec 2024 Internally assessed capital requirement 1) Pillar I capital requirement 2,792 3,155 Percentage of total risk-weighted exposure amount 8.0 8.0 Pillar II capital requirement 656 693 Percentage of total risk-weighted exposure amount 1.9 1.8 Combined buffer requirement 1,571 1,775 Percentage of total risk-weighted exposure amount 4.5 4.5 T otal capital requirement 5,019 5,623 Percentage of total risk-weighted exposure amount 14.4 14.3 Own funds (Tier 1 capital + Tier 2 capital) 8,094 7,742 Percentage of total risk-weighted exposure amount 23.2 19.6 Capital requirement as assessed by Finansinspektionen 2) Pillar I capital requirement 2,792 3,155 Percentage of total risk-weighted exposure amount 8.0 8.0 Pillar II capital requirement 663 749 Percentage of total risk-weighted exposure amount 1.9 1.9 Combined buffer requirement 1,571 1,775 Percentage of total risk-weighted exposure amount 4.5 4.5 Capital requirement, Pillar II guidance – – Percentage of total risk-weighted exposure amount – – T otal capital requirement (incl. Pillar II guidance) 5,026 5,679 Percentage of total risk-weighted exposure amount 14.4 14.4 Own funds (Tier 1 capital + Tier 2 capital) 8,094 7,742 Percentage of total risk-weighted exposure amount 23.2 19.6 Leverage ratio requirement 3) Leverage ratio requirement 3,995 3,707 Percentage of total exposure amount for the leverage ratio 3.0 3.0 Pillar II capital requirement – – Percentage of total exposure measure for the leverage ratio – – Capital requirement, Pillar II guidance – – Percentage of total exposure measure for the leverage ratio – – T otal capital requirement 3,995 3,707 Percentage of total risk-weighted exposure amount 3.0 3.0 Tier 1 capital 7,494 7,142 Percentage of total exposure amount for the leverage ratio 5.6 5.8 1) Pertains to Pillar I capital requirements pursuant to the Capital Requirements Regulation (EU) No 575/2013, Pillar II capital requirements according to the bank’s assessment and the combined buffer requirement pursuant to the Capital Buffers Act (2014:966). 2) Pertains to Pillar I capital requirements pursuant to the Capital Requirements Regulation (EU) No 575/2013, Pillar II capital requirements according to Finans- inspektionen’s (SREP 2024) and the combined buffer requirement pursuant to the Capital Buffers Act (2014:966). 3) Pertains to the leverage ratio requirement pursuant to the Capital Requirements Regulation (EU) No 575/2013 and Pillar II capital requirements according to Finansinspektionen’s (SREP 2024). The leverage ratio requirement was introduced in June 2021.
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Landshypotek Bank Annual Report 2025 52 Own funds requirement by risk, approach and exposure class Landshypotek Bank AB 31 Dec 2025 SEK million Exposure value1) Risk-weighted exposure amount2) Own funds require- ment3) Average risk weight4) Credit risk – IRB approach 118,765 16,603 1,328 14% Retail – real estate collateral 70,496 4,616 369 7% Corporates 48,191 11,909 953 25% Other non-credit-obligation assets 78 78 6 100% Credit risk – Standardised approach 15,071 1,207 97 8% Central governments or central banks 125 0% Regional governments or local authorities 7,116 0% Institutions 1,149 271 22 24% Corporates 5 5 0 100% Retail 18 12 1 70% Secured by mortgage liens on immovable property 411 291 23 71% Exposures in default 2 3 0 131% Covered bonds 6,244 624 50 10% Operational risk 1,778 142 Credit valuation adjustment risk 733 1,103 88 150% Additional risk exposure amount under Article 458 CRR (risk-weight floor) 13,060 1,045 Additional stricter prudential requirements based on Article 3 CRR 1,149 92 To t a l 134,569 34,901 2,792 Landshypotek Bank AB 31 Dec 2025 SEK million Exposure value1) Risk-weighted exposure amount2) Own funds require- ment3) Average risk weight4) Credit risk – IRB approach 110,973 23,080 1,846 21% Retail – real estate collateral 66,175 5,482 439 8% Corporates 44,718 17,519 1,401 39% Other non-credit-obligation assets 80 80 6 100% Credit risk – Standardised approach 13,653 1,419 114 10% Central governments or central banks 89 – – 0% Regional governments or local authorities 5,184 – – 0% Institutions 1,302 419 34 32% Corporates 9 9 1 100% Retail 31 21 2 68% Secured by mortgage liens on immovable property 972 361 29 37% Exposures in default 1 2 0 135% Covered bonds 6,064 606 49 10% Operational risk 2,102 168 Credit valuation adjustment risk 1,004 627 50 62% Additional risk exposure amount under Article 458 CRR (risk-weight floor) 11,062 885 Additional stricter prudential requirements based on Article 3 CRR 1,149 92 To t a l 125,630 39,439 3,155 1) Exposure value calculated in accordance with the CRR. 2) After application of the relevant risk weights. Risk weights for the IRB approach are based on internal risk classification and internal historical data while risk weights as prescribed in the CRR are applied for the standardised approach. 3) Calculated by multiplying the risk-weighted exposure amount by 8 percent. Does not include any buffer requirements. 4) Calculated by dividing the risk-weighted exposure amounts by exposure value for the respective risk/ exposure class.
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Landshypotek Bank Annual Report 2025 53 EU KM1 – Key metrics template Landshypotek Bank SEK million 31 Dec 2025 30 Sep 2025 30 Jun 2025 31 Mar 2025 31 Dec 2024 Available own funds (amounts) 1 Common Equity Tier 1 (CET1) capital 6,594 6,533 6,482 6,434 6,242 2 Tier 1 capital 7,494 7,433 7,382 7,334 7,142 3 T otal capital 8,094 8,033 7,982 7,934 7,742 Risk-weighted exposure amounts 4 T otal risk-weighted exposure amount 34,901 33,841 33,777 33,155 39,438 4a T otal risk exposure (pre-floor) 34,901 33,841 33,777 33,155 Capital ratios (as a percentage of risk-weighted exposure amount) 5 Common Equity Tier 1 ratio (%) 18.9 19.3 19.2 19.4 15.8 5b Common Equity Tier 1 ratio considering unfloored TREA (%) 18.9 19.3 19.2 19.4 6 Tier 1 ratio (%) 21.5 22.0 21.9 22.1 18.1 6b Tier 1 ratio considering unfloored TREA (%) 21.5 22.0 21.9 22.1 7 T otal capital ratio (%) 23.2 23.7 23.6 23.9 19.6 7b T otal capital ratio considering unfloored TREA (%) 23.2 23.7 23.6 23.9 Additional own funds requirements to address risks other than the risk of excessive leverage (as a percentage of risk-weighted exposure amount) EU 7d Additional own funds requirements to address risks other than the risk of excessive leverage (%) 1.9 1.9 1.9 1.9 1.9 EU 7e of which: to be made up of CET1 capital (percentage points) 1.1 1.1 1.1 1.1 1.1 EU 7f of which: to be made up of Tier 1 capital (percentage points) 1.4 1.4 1.4 1.4 1.4 EU 7g T otal SREP own funds requirements (%) 9.9 9.9 9.9 9.9 9.3 Combined buffer and overall capital requirements (as a percentage of risk-weighted exposure amount) 8 Capital conservation buffer (%) 2.5 2.5 2.5 2.5 2.5 9 Institution-specific countercyclical capital buffer (%) 2.0 2.0 2.0 2.0 2.0 11 Combined buffer requirement (%) 4.5 4.5 4.5 4.5 4.5 EU 11a Overall capital requirements (%) 14.4 14.4 14.4 14.4 14.4 12 CET1 available after meeting the total SREP own funds requirements (%) 13.3 13.7 13.6 13.8 9.3 Leverage ratio 13 T otal exposure measure 133,166 131,264 131,148 128,620 123,566 14 Leverage ratio (%) 5.6 5.7 5.6 5.7 5.8 Additional own funds requirements to address the risk of excessive leverage (as a percentage of total exposure measure) EU 14a Additional own funds requirements to address the risk of excessive leverage (%) – – – – – EU 14b of which: to be made up of CET1 capital (percentage points) – – – – – EU 14c T otal SREP leverage ratio requirements (%) 3.0 3.0 3.0 3.0 3.0 Leverage ratio buffer and overall leverage ratio requirement (as a percentage of total exposure measure) EU 14d Leverage ratio buffer requirement (%) – – – – – EU 14e Overall leverage ratio requirement (%) 3.0 3.0 3.0 3.0 3.0 Liquidity coverage ratio 15 T otal high-quality liquid assets (HQLA) (weighted value – average) 11,266 11,789 10,280 10,747 9,637 EU 16a Cash outflows – total weighted value 4,047 3,873 3,834 4,040 3,906 EU 16b Cash inflows – total weighted value 302 383 332 579 405 16 T otal net cash outflows (adjusted value) 3,745 3,490 3,502 3,461 3,501 17 Liquidity coverage ratio (%) 301 338 294 310 275 Net stable funding ratio 18 T otal available stable funding 116,454 111,364 109,599 113,264 108,868 19 T otal required stable funding 97,111 94,941 93,730 92,887 90,552 20 Net stable funding ratio (%) 120.3 117.3 116.9 121.9 120.2
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Landshypotek Bank Annual Report 2025 54 Note 4 Net interest income SEK million 2025 2024 Interest income Interest income on loans to credit institutions 5 8 Interest income on loans to the public 3,867 4,595 Interest income on interest-bearing securities 335 413 Other interest income 3 3 T otal interest income 4,209 5,019 of which interest income on financial assets not measured at FVTPL 4,209 5,019 Average interest on loans to the public 3.37% 4.26% Interest expenses Interest expenses for liabilities to credit institutions -34 -63 Interest expenses for deposits from the public -502 -963 Interest expenses for interest-bearing securities -2,164 -2,489 Interest expenses for subordinated liabilities -20 -29 Interest expenses for derivative instruments -300 -324 Other interest expenses 1) -32 -27 T otal interest expenses -3,052 -3,896 of which interest expenses on financial liabilities not measured at FVTPL -2,752 -3,571 T otal 2) 1,158 1,124 1)Other interest expenses includes interest expenses on the lease liability pertaining to the lease of properties of SEK 0.5 million (expense: 0.8) 2) Landshypotek changed its accounting policy in 2025 and now reports the resolution fee on a new line in the income statement, Imposed fees. Previously it was included in Net interest income. The comparative figures have been restated and, accordingly, do not correspond with those for 2024. All interest income is attributable to the Swedish market. Note 6 Net result of financial transactions SEK million 2025 2024 Financial assets at FVTOCI Realised result of sales of bonds and other interest-bearing securities 5 12 Financial liabilities at amortised cost Realised result on early redemption of own bonds issued 13 17 Financial assets and liabilities at FVTPL Realised result from purchase/sale of derivative contracts in hedging relationships -19 -31 T otal realised result -1 -3 Items included in hedging relationships and subject to hedge accounting Change in value of bonds in issue included in fair-value hedges -251 -544 Value change of interest-hedged items in portfolio hedges 76 277 Change in value of investment bonds included in fair-value hedges 15 45 Change in value of derivatives included in fair-value hedges 153 217 of which reclassification of terminated hedging relationships 1) 62 63 T otal unrealised result -7 -4 To t a l -8 -7 Other comprehensive income, net result of financial transactions 22 3 The terminated hedging relationships are recognised in the balance sheet under Debt securities issued, etc. The remaining amount to be periodised is SEK 140 million, which will continue until May 2031. Note 5 Net commission income SEK million 2025 2024 Commission income 28 19 Commission expense 0 0 To t a l 28 19
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Landshypotek Bank Annual Report 2025 55 Note 7 General administrative expenses SEK million 2025 2024 Personnel costs Salaries, etc. to CEO, senior executives and Board of Directors -21 -20 Salaries, etc., to other risk takers -26 -18 Salaries, etc., to other personnel -138 -138 Provision to profit-sharing foundation -11 -10 Pension costs -35 -34 Social insurance charges -61 -57 Other personnel costs -25 -32 T otal personnel costs -316 -309 Other administrative expenses Travel expenses -2 -3 T elephone and data expenses -2 -2 Office expenses -2 -2 Cost of premises -6 -6 IT expenses 1) -170 -157 Postage -4 -5 Consultants -11 -7 Information expenses -15 -17 Purchased services -12 -13 Marketing expenses -31 -28 Agencies and associations -6 -5 T otal other administrative expenses -261 -246 Fees and expenses to appointed auditors Audit assignment -4 -3 Audit activities other than audit assignment -1 -1 T ax consultancy 0 0 Other services 0 0 T otal fees and expenses to appointed auditors -5 -4 To t a l -582 -559 Specification of pension costs Pension premiums -28 -26 of which to senior executives -5 -5 of which to other risk takers -5 -4 of which to other personnel -18 -17 Directly paid pensions 0 0 Payroll and yield taxes attributable to pension costs -7 -7 T otal pension costs -35 -34 1) IT expenses include costs for leases of low-value assets of SEK 2.4 million (2.3).
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Landshypotek Bank Annual Report 2025 56 Remuneration and other benefits 2025 SEK thousand Basic salary/ Board fees Committee fees Other benefits Pension costs Other com- pensation To t a l Chairman of the Board Ann Krumlinde 680 348 – – 12 1,040 Board member Johan T rolle-Löwen 170 63 – – – 233 Board member Anna-Karin Celsing 170 105 – – – 275 Board member Ole Laurits Lønnum 340 88 – – – 428 Board member Johan Nordenfalk 340 288 – – – 628 Board member Lars Sjögren 340 170 – – – 510 Board member Lars-Johan Merin 340 135 – – – 475 Board member Elisabeth Beskow 99 25 – – – 124 Board member Marita Odélius 99 22 – – – 121 CEO Johan Ericson 4,529 – 23 1,448 23 6,023 Other senior executives (7 persons) 13,233 – 142 3,754 57 17,186 Other risk takers (27 persons) 25,212 – 750 5,150 243 31,355 To t a l 45,553 1,242 915 10,352 335 58,396 2024 SEK thousand Basic salary/ Board fees Committee fees Other benefits Pension costs Other compensa- tion To t a l Chairman of the Board Ann Krumlinde 660 280 – – 11 951 Board member Johan T rolle-Löwen 330 125 – – – 455 Board member Anna-Karin Celsing 330 193 – – – 523 Board member Ole Laurits Lønnum 330 75 – – – 405 Board member Johan Nordenfalk 330 250 – – – 580 Board member Lars Sjögren 330 148 – – – 478 Board member Lars-Johan Merin 330 93 – – – 423 CEO Per Lindblad 4,268 – 21 1,460 18 5,767 Other senior executives (7 persons) 12,677 – 131 3,769 67 16,644 Other risk takers (18 persons) 17,827 – 373 3,805 199 22,204 To t a l 37,412 1,163 525 9,034 295 48,429 No variable remuneration or share-based remuneration has been paid. A mutual notice period of six months applies for the CEO and Landshypotek Bank. In case of termination by the company, compensation is payable of up to 12-months’ remuneration excluding the notice period. For other senior executives and Landshypotek Bank, contractual notice periods of six months apply. 2025 2024 Number of employees 1) Number of men 112 112 Number of women 134 124 To t a l 246 236 Average number of salaried employees, including substitutes 246 236 Directors and senior executives 2) Number of directors 9 9 of whom, men 5 6 of whom, women 4 3 Number of senior executives 8 8 of whom, men 5 6 of whom, women 3 2 1) Average number of FTEs during the year. 2) Number of directors and senior executives as of 31 December
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Landshypotek Bank Annual Report 2025 57 Note 8 Depreciation, amortisation and impairment of intangible and tangible non-current assets SEK million 2025 2024 Intangible assets Amortisation of IT system -18 -21 T angible non-current assets Depreciation of furniture, fixtures and equipment 0 0 Depreciation of right-of-use assets -22 -22 To t a l -40 -43 Note 9 Net credit losses SEK million 2025 2024 Change in credit loss allowance, Stage 1 1 0 Change in credit loss allowance, Stage 2 2 -2 Net credit losses, non-credit-impaired lending 3 -2 Change in credit loss allowance, Stage 3 -15 -2 Write-off for the period for confirmed losses -2 0 Recoveries of previously confirmed losses 0 1 Net credit losses, credit-impaired lending -17 -2 T otal net credit losses -14 -4 No properties were taken over in foreclosure to protect claims. Recognition of loss allowance The bank recognises expected credit losses for financial assets and off-balance-sheet exposures in the credit portfolio, and for the parts of the liquidity portfolio that are classified as financial assets at FVTOCI. Each asset is categorised to one of three stages: • Stage 1 comprises performing assets with no significant increase in credit risk compared with initial recognition; • Stage 2 comprises performing assets with significant increase in credit risk compared with initial recognition; and • Stage 3 comprises defaulted loans. Establishing significant increase in credit risk T o establish whether a loan asset has a significantly increased credit risk compared with the credit risk on initial recognition, among other actions, the bank measures how the asset’s PD risk class has deteriorated since the asset arose. Classifica - tion of an agreement as having a higher risk corresponding to Stage 2 generally requires a risk increase of at least 1–3 PD risk classes. Agreements that were signed at a low level of risk require a greater deterioration in PD risk class to change stages than agreements signed with a higher risk level. Moreover, agreements lacking information regarding the original risk class, and those that are more than 31 days late with a payment are classified as Stage 2. Stage 3 corresponds to default. The bank’s definition of default corresponds with that set out in external capital adequacy rules. Internal risk classification on initial recognition 1) PD interval on initial recognition Significant increase in credit risk PD model 1 (customer categories: Private individuals, Micro-enterprises and Small enterprises) 1 <0.024% 3 Risk classes 2–4 0.024–1.0% 2 Risk classes 5–7 >1.0% and <100% <2 Risk classes PD model 2 (customer category: Medium-sized enterprises) A <0.06% 3 Risk classes B–D 0.06–1.3% 2 Risk classes E–G >1.3% and <100% <2 Risk classes 1) Risk classes and PD estimates for loans with initial recognition from January 2011.
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Landshypotek Bank Annual Report 2025 58 Individually assessed Stage 3 credits ECLs for Stage 3 assets are estimated mainly through individual and manual valuation of expected losses based on three scenarios. The assessment is based on current information that takes into consideration macro-economic and borrower-spe - cific factors that could impact future cash flows, such as current and expected economic conditions, time until recovery and the value of pledged collateral. Measurement For Stage 1 assets, the loss allowance is calculated at an amount corresponding to 12-months’ expected credit losses. For assets in stages 2 and 3, the loss allowance corresponds to the expected credit losses (ECLs) for the assets’ remaining term. The bank’s expected credit losses are subject to continual assessment at both individual and collective levels. The esti - mates are based on internally developed statistical models that take into consideration historical data and probability weighted forward-looking macro-economic scenarios. The most important input data used to measure ECLs is: • Probability of Default (PD) – estimates the probability of an agreement entering into default; • Loss Given Default (LGD) – the assessment of how much of the exposure value that Landshypotek Bank stands to lose in the event of default; • Exposure At Default (EAD) – an estimated credit exposure at a future default date after taking into account expected changes in credit exposure in the form of, inter alia, limit utilisation, extra capital repayments, early redemption and expected risk of default; and • The expected maturity matches the term of the agreement, limited to not longer than 30 years. In the majority of the credit portfolio agreements, PD and LGD are based on internal historical data and utilise the bank’s capital adequacy IRB models (see description in Landshypotek Bank Pillar 3 2025). The estimates have been recalibrated to capture the current financial position. For agreements in the bank’s liquidity portfolio, ECLs are estimated based on, inter alia, the default rates in the rating matrices from an international rating agency. In estimating the future risk, PD and LGD are affected by fore - casts for future economic development through macro-eco - nomic scenarios. Loans to the public broken down by PD interval Stage 1 Stage 2 Stage 3 SEK million 2025 2024 2025 2024 2025 2024 0.00 to <0.15 92,483 85,619 175 396 – 0 0.15 to <0.25 14,338 13,444 130 146 – 0 0.25 to <0.50 4,853 4,726 667 540 – 0 0.50 to <0.75 1,443 1,359 484 526 – 0 0.75 to <2.50 1,245 1,423 662 792 – 0 2.50 to <10.00 91 340 327 558 – 0 10.00 to <100 19 19 348 269 – 0 100 (default) – – – – 921 987 To t a l 114,472 106,931 2,792 3,227 921 987 Probability weighted macro-economic scenarios The calculation model weighs together the ECL outcomes based on three macro-economic scenarios (base, improved and deteriorated) for annual expected credit losses over the assets’ lifetimes. In the case of the credit portfolio, one of the bank’s scenarios includes the macro parameters for interest, GDP and the prop - erty price index. The macro parameters are based on forecasts from reputable, external sources and the assessments of internal experts. Parameter projections are made for the first five years and, thereafter, the scenario returns to a long-term expected trend of up till 30 years for the macro parameters. The bank’s three scenarios for future economic developments (base, improved and deteriorated) amounted to a weighting of 60 percent for the base scenario, 20 percent for the deterio - rated scenario and 20 percent for the improved scenario as of 31 December 2025. In general, a deterioration in the future economic trend will lead to increased credit loss allowances based either on the projected macro parameters or on an increase in the likelihood of the deteriorated scenario taking place. In the same way, improvements in the future economic development will lead to lower credit loss allowances. Sensitivity analyses 2025 2024 Current loss allowance (including credit reserves for loan commitments are included in the balance-sheet item Provisions), SEK million 34 22 Percentage difference in ECL if PD were to increase 100% 18% 49% Percentage difference in ECL if property prices were to decrease 10% 8% 19%
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Landshypotek Bank Annual Report 2025 59 Note 10 Imposed fees SEK million 2025 2024 Resolution fee -42 -46 Fee, Deposit requirement -4 – To t a l -46 -46 The bank has changed its accounting policy and moved the cost for the resolution fee from net interest income to a new line item, Imposed fees; comparative figures have been restated. In 2025, the Riksbank, Sweden’s central bank, decided that all banks and credit institutions with operations in Sweden have to lodge interest-free deposits with the Riksbank. For Landshypotek the deposit amounted to SEK 318 million and the lost interest income on this amount has been recognised as an expense for the entire period until rebalancing in July 2026 under imposed fees. An example follows of what the bank’s credit loss allowance would look like if the respective improved or the deteriorated scenarios were assigned a probability of 100 percent, which would impact the mechanically calculated credit loss allow - ances (individually assessed Stage 3 credits have not been included). For more information, refer to Note 13. Scenario Expected credit loss SEK million 2025 2024 Current loss allowance 34.4 22.0 Improved scenario 33.9 21.3 Deteriorated scenario 35.0 23.3 Macro scenario assumptions for the next five years The following parameters use the bank’s expectations as the base scenario. The improved scenario reflects the most beneficial outcome for the bank and the deteriorated scenario the least beneficial outcome for the bank. The improved and deteriorated scenarios should not be seen as forecasts and nor do they reflect any expected outcome in different economic conditions. Macro-economic risk factors Baseline scenario Deteriorated scenario Improved scenario % 2025 2024 2025 2024 2025 2024 Interest Ye a r 0 2.07 2.74 2.37 3.09 1.78 2.38 Ye a r 1 2.03 2.41 2.54 3.02 1.52 1.80 Y ear 2 2.20 2.37 2.86 3.16 1.54 1.58 Y ear 3 2.36 2.41 3.15 3.35 1.58 1.48 Y ear 4 2.48 2.46 3.37 3.52 1.60 1.40 GDP trend Y ear 0 1.60 0.50 1.14 -0.21 2.06 1.21 Y ear 1 2.90 1.20 2.25 0.19 3.55 2.21 Y ear 2 2.50 3.10 1.71 1.87 3.29 4.33 Y ear 3 1.00 2.70 0.08 1.28 1.92 4.12 Y ear 4 1.50 1.70 0.47 0.11 2.53 3.29 Property index (Value trend since actual valuation) Y ear 0 0.00 0.00 0.00 0.00 0.00 0.00 Y ear 1 0.00 0.00 -3.00 -5.00 4.00 2.00 Y ear 2 0.00 0.00 -5.91 -9.75 8.16 4.04 Y ear 3 0.00 0.00 -8.73 -14.26 12.49 6.12 Y ear 4 0.00 0.00 -11.47 -18.55 16.99 8.24
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Landshypotek Bank Annual Report 2025 60 Note 11 Income tax on comprehensive income SEK million 2025 2024 Profit before tax 502 489 Income tax calculated at national tax rates -103 -101 T ax effects of: Non-taxable income 0 0 Non-deductible expenses -6 -7 Adjustment of preceding year’s tax expense 0 0 T otal income tax related to profit or loss -109 -108 Weighted-average tax rate 21.7% 22.0% of which current tax -109 -108 of which deferred tax 0 0 Income tax related to other comprehensive income Cross-currency basis spreads in fair value hedges Profit before tax -10 10 Current tax 2 -2 Profit after tax -8 8 Fair-value reserve Profit before tax -18 -14 Current tax 4 3 Profit after tax -14 -11 T otal income tax related to other comprehensive income 6 1 of which current tax 6 1 of which deferred tax – – The rate for current and deferred tax amounted to 20.6 percent (20.6). Note 13 Loans to credit institutions SEK million 2025 2024 Loans to banks 100 297 Interest-free deposits with the Riksbank 316 – To t a l 415 297 Note 12 Eligible treasury bills SEK million 2025 2024 Issued by Swedish municipalities and regions 4,410 3,298 To t a l 4,410 3,298 Listed bonds and other interest-bearing securities by category Financial assets at FVTOCI 4,410 3,298 To t a l 4,410 3,298 Valuation of listed bonds and other interest-bearing securities Nominal amount 4,392 3,268 Amortised cost 4,407 3,296 Fair value 4,410 3,298
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Landshypotek Bank Annual Report 2025 61 Note 14 Loans to the public SEK million 2025 2024 Loan receivables, Stage 1 114,472 106,918 Loan receivables, Stage 2 2,792 3,227 Loan receivables, Stage 3 921 987 Gross loan receivables 118,186 111,132 Less credit loss allowance -34 -22 Net loan receivables 118,151 111,110 Disclosures on past due loan receivables, gross Loan receivables past due, 5–90 days 0 45 Loan receivables past due, more than 90 days 370 218 T otal past due loan receivables, gross 370 263 Gross loan receivables 2025 Non-credit-impaired lending Credit-impaired lending SEK million Stage 1 Stage 2 Stage 3 Total Opening balance 106,918 3,227 987 111,132 Increases in loan receivables due to origination and acquisition 16,987 69 1 17,059 Decreases in loan receivables due to derecognition -9,406 -389 -209 -10,003 Decrease in loan receivables due to confirmed losses – – -2 -2 Migration between stages from 1 to 2 -1,283 1,283 – 0 from 1 to 3 -164 – 164 0 from 2 to 1 1,371 -1,371 – 0 from 2 to 3 – -85 85 0 from 3 to 2 – 58 -58 0 from 3 to 1 47 – -47 0 Closing balance 114,472 2,792 921 118,186 Gross loan receivables 2024 Non-credit-impaired lending Credit-impaired lending SEK million Stage 1 Stage 2 Stage 3 Total Opening balance 101,118 2,694 958 104,769 Increases in loan receivables due to origination and acquisition 16,825 309 7 17,140 Decreases in loan receivables due to derecognition -10,099 -447 -232 -10,778 Decrease in loan receivables due to confirmed losses 1) – – 0 0 Migration between stages from 1 to 2 -1,577 1,577 – – from 1 to 3 -233 – 233 – from 2 to 1 826 -826 – – from 2 to 3 – -111 111 – from 3 to 2 – 32 -32 – from 3 to 1 59 – -59 – Closing balance 1) 106,918 3,227 987 111,132 1) The figure has been corrected and does not correspond to the figure for the preceding year.
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Landshypotek Bank Annual Report 2025 62 Credit loss allowance 2024 Non-credit-impaired lending Credit- impaired lending Total credit loss allowance lending Of which credit loss allowance for balance-sheet assets Of which provisions for off- balance-sheet exposuresSEK million Stage 1 Stage 2 Stage 3 Opening balance -4 -6 -8 -18 -18 0 Increases due to origination and acquisition -2 -2 -1 -4 -4 0 Decreases due to derecognition 1 1 2 4 4 0 Decrease in allowance due to write-offs – – 0 0 0 0 Changes due to change in credit risk 1 0 2 3 3 0 Changes due to update in the methodology for estimation 0 0 0 1 1 0 Migration between stages from 1 to 2 0 -4 0 -4 -4 0 from 1 to 3 0 0 -5 -5 -5 0 from 2 to 1 0 1 0 1 1 0 from 2 to 3 0 0 0 0 0 0 from 3 to 2 0 0 1 0 0 0 from 3 to 1 0 0 1 1 1 0 Closing balance -4 -8 -10 -22 -22 0 Credit loss allowance 2025 Non-credit-impaired lending Credit- impaired lending Total credit loss allowance lending Of which credit loss allowance for balance-sheet assets Of which provisions for off- balance-sheet exposuresSEK million Stage 1 Stage 2 Stage 3 Opening balance -4 -8 -10 -22 -22 0 Increases due to origination and acquisition -1 0 0 -1 -1 0 Decreases due to derecognition 0 1 1 3 2 0 Decrease in allowance due to write-offs – – -2 -2 -2 0 Changes due to change in credit risk 1 2 -15 -12 -12 0 Changes due to update in the methodology for estimation – – – – – – Migration between stages from 1 to 2 0 -2 – -2 -2 0 from 1 to 3 0 – -1 0 0 0 from 2 to 1 0 1 – 1 1 0 from 2 to 3 – 1 0 1 1 0 from 3 to 2 – 0 0 0 0 0 from 3 to 1 0 – 0 0 0 0 Closing balance -3 -5 -26 -34 -34 0 The maximum credit risk exposure corresponds to total gross loan receivables (including commitments and bonds in the liquidity portfolio) of SEK 118.2 billion (111.1) with collateral in the form of farm and forest properties, houses and tenant-owner apartments. The value of the collateral for the loan receivables amounts to SEK 466.9 billion (SEK 453.2).
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Landshypotek Bank Annual Report 2025 63 Internal Ratings Based (IRB) approach SEK million 2025 2024 SEK million Gross loan receivables Credit loss allowance Gross loan receivables Credit loss allowance Stage 1 Risk class 1 11,076 0 10,440 0 Risk class 2 55,283 0 51,166 0 Risk class 3 43,481 2 40,551 2 Risk class 4 4,188 1 4,113 1 Risk class 5 406 0 606 0 Risk class 6 33 0 42 0 Risk class 7 4 0 0 0 Stage 2 Risk class 1 4 0 0 0 Risk class 2 110 0 269 0 Risk class 3 191 0 280 0 Risk class 4 1,432 1 1,391 1 Risk class 5 570 1 734 2 Risk class 6 472 3 523 5 Risk class 7 13 0 29 0 Stage 3 Risk class 8 921 26 987 11 To t a l 118,186 34 111,132 22 Note 15 Bonds and other interest-bearing securities SEK million 2025 2024 Listed bonds Issued by other financial institutions 2,706 1,886 Issued by housing finance institutions 6,244 6,064 of which covered bonds 6,244 6,064 To t a l 8,951 7,950 Listed bonds and other interest-bearing securities by category Financial assets at FVTOCI 8,951 7,950 Tot a l 8,951 7,950 Valuation of listed bonds and other interest-bearing securities Nominal amount 8,934 8,065 Amortised cost 8,920 7,951 Fair value 8,951 7,950
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Landshypotek Bank Annual Report 2025 64 Note 16 Derivatives Derivatives and hedge accounting Landshypotek applies hedge accounting in the form of fair value hedges to manage the interest rate and currency risk that arises from lending and borrowing at fixed interest rates as well as from borrowing in currencies other than SEK. The hedge account - ing includes all derivatives and the carrying amount includes accrued interest. The bank does not report derivatives net in its balance sheet. The policies applied in hedge accounting are described in Note 1 Accounting policies. Landshypotek Bank uses interest-rate swaps that exchange payments of fixed interest for payments of floating interest to hedge fixed-interest assets, and swaps that exchange payments of floating interest for payments of fixed interest to hedge floating-interest liabilities. An economic relationship exists between the hedged item and the hedging instrument, since the terms of the interest-rate swap correspond to those for the hedged item as regards the nominal amount, interest rate level, tenor, and payment and adjustment dates. The hedging of borrowings in currencies other than SEK is performed using cross-currency interest-rate swaps with the application of micro hedging pursuant to IFRS 9. Fair-value hedges The economic relationship is established through prospective testing on entering the hedge. Credit and basis spreads are not included in the financial hedging of fair value and any market changes in these spreads are recognised in other compre - hensive income. Macro hedging is applied to hedge the fair value fixed-rate lending. The volume of fixed-rate lending is accumulated on an ongoing basis and the volume of interest rate hedges per interest-fixing occasion. When the interest-rate risk per interest-fixing occasion exceeds the bank’s appetite for interest-rate risk, new interest hedges are conducted. Only the risk-free interest is hedged in interest hedges. Commercial mar - gins are excluded when hedging interest. Micro hedging and IFRS 9 are applied for interest-rate swaps and cross-currency interest-rate swaps used for hedging liabilities. Effectiveness testing pursuant to IFRS 9 The economic relationship between the underlying securities and the interest-rate swap is assessed using a qualitative analysis of the critical terms. The critical terms for the financial instruments are matched, particularly with regard to the nominal amount, reference rate, reset date and maturity. The fair values of the hedged item and the hedging instrument are expected to develop in opposite directions as a result of changes in the hedged reference rate risk. The effect of credit risk is not con - sidered to be dominant in the change of fair value. The hedge ratio is 1:1 since the nominal amount of the interest-rate swap matches the underlying securities. The effectiveness of the hedge is assessed by comparing the change in value resulting from changes in the reference rate for the underlying security with the change in value for the identified interest-rate swap. Effectiveness testing pursuant to IAS 39 Lending is grouped in annual intervals based on the next interest rate adjustment date. Each position in the respective time interval is hedged using interest-rate swaps corresponding to a nominal amount that covers part of the total loan amount. A specified loan amount in each time interval is thus identified as the hedged item. The efficiency of the hedged item is assessed prospectively and retrospectively. The prospective assessment uses a qualitative analysis of the critical terms of the hedged item and the interest-rate swap. Value changes in loans that arise from changes in the underlying interest rate are compared with the value changes in the identified interest-rate swaps. Ineffectiveness Ineffectiveness is calculated by comparing the change in fair value of the hedged risk in the hedged item with the change in fair value of the derivative. The hedge is ineffective if the change in fair value of the derivative deviates from the change in value of the hedged item. The main reasons for ineffectiveness in these hedging relation - ships are: • value changes in the floating leg of the derivative; • differences between the initial values of the hedged item and the hedging instrument; and • possible value changes related to counterparty risk in deriva - tive contracts entered into. Derivatives SEK million Nominal amount Assets, carrying amount Liabilities, carrying amount 2025 2024 2025 2024 2025 2024 Derivatives included in hedge accounting Interest-rate swaps, micro hedges 33,205 36,105 619 745 701 1,007 Interest-rate swaps, macro hedges 21,530 22,300 86 192 254 266 Cross-currency interest-rate swaps 3,885 3,970 382 591 13 17 Tot a l 58,620 62,375 1,087 1,528 968 1,290
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Landshypotek Bank Annual Report 2025 65 Derivatives that comprise hedging instruments for interest and currency risk in fair-value hedges 2025 SEK million <3 months 3–12 months 1–3 years 3–5 years >5 years Total Interest-rate risk Interest-rate swaps paying fixed interest and receiving floating interest Nominal amount 2,480 9,875 11,475 2,420 780 27,030 Average fixed interest rate % 2.43 1.47 1.69 2.38 2.04 Interest-rate swaps paying floating interest and receiving fixed interest Nominal amount 541 141 18,900 6,749 2,835 29,166 Average fixed interest rate % 4.05 4.17 2.05 2.59 2.79 Foreign currency risk Currency related derivatives SEK/EUR Nominal amount 448 217 739 912 108 2,424 Average exchange rate 0.11 0.11 0.10 0.10 0.11 To t a l 3,469 10,233 31,114 10,081 3,722 58,620 2024 SEK million <3 months 3–12 months 1–3 years 3–5 years >5 years Total Interest-rate risk Interest-rate swaps paying fixed interest and receiving floating interest Nominal amount 7,530 5,400 16,030 2,830 810 32,600 Average fixed interest rate % 0.44 1.15 1.44 1.70 1.81 Interest-rate swaps paying floating interest and receiving fixed interest Nominal amount 700 5,700 13,871 9,229 3,001 32,501 Average fixed interest rate % 0.92 0.67 0.66 3.49 2.70 Foreign currency risk Currency related derivatives SEK/EUR Nominal amount – – 1,165 761 498 2,424 Average exchange rate – – 0.11 0.10 0.10 To t a l 8,230 11,100 31,066 12,820 4,309 67,525
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Landshypotek Bank Annual Report 2025 66 Hedging instruments 2025 SEK million Balance-sheet item encom- passing hedging instruments Nominal amount hedging instruments Carrying amount Change in fair value used to measure efficiencyAssets Liabilities Interest-rate risk Interest-rate swaps, macro hedging, loans to the public Derivatives 21,530 86 254 -80 Interest-rate swaps, fair-value hedges, liquidity reserve Derivatives 5,500 85 40 -15 Interest-rate swaps, fair-value hedges, debt securities issued, SEK Derivatives 2 7,70 5 534 661 242 Foreign currency risk Cross-currency interest-rate swaps, EUR Derivatives 3,885 382 13 6 58,620 1,087 968 153 2024 SEK million Balance-sheet item encom- passing hedging instruments Nominal amount hedging instruments Carrying amount Change in fair value used to measure efficiencyAssets Liabilities Interest-rate swaps, fair-value hedges, liquidity reserve Derivatives 5,150 185 18 -46 Interest-rate swaps, fair-value hedges, debt securities issued, SEK Derivatives 30,955 560 989 479 Foreign currency risk Cross-currency interest-rate swaps, EUR Derivatives 3,970 591 17 60 62,375 1,528 1,290 218 Hedged items 2025 SEK million Balance-sheet item encompassing the hedged item Carrying amount Cumulative value change in hedged item Change in fair value used to measure efficiencyAssets Liabilities Interest-rate risk Fixed-rate loans to the public Loans to the public 21,532 – – – Fixed-rate loans to the public Value change of interest- hedged items in portfolio hedges – – 4 76 Fixed-rate liquidity reserve Eligible treasury bills, Bonds and other interest-bearing securities 5,433 – 34 15 Fixed-rate funding in SEK Debt securities issued, etc. – 27,337 358 -239 Foreign currency risk Fixed-rate funding in EUR Debt securities issued, etc. – 84 -70 -12 26,965 27,421 326 -160
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Landshypotek Bank Annual Report 2025 67 T otal hedge ineffectiveness SEK million 2025 2024 Hedging of interest-rate risk Derivatives, micro hedging 227 433 Fixed-rate funding in SEK -239 -478 Fixed-rate liquidity reserve 15 45 Fixed-rate loans outstanding SEK, macro hedging 76 277 Derivatives, macro hedging7 80 257 To t a l 0 2 Hedging of foreign currency risk Cross-currency interest-rate swaps, EUR 6 60 Fixed-rate funding in EUR -12 -66 To t a l -6 -6 T otal hedge ineffectiveness -7 -4 All ineffectiveness is recognised in the Net result of financial transactions. The item includes the periodisation of the market value cre - ated from hedged risk attributable to fair-value hedging relationships that were terminated in 2013 and 2018. The terminated hedging relationships are recognised in the balance sheet under Debt securities issued, etc. The remaining amount to be periodised is SEK 140 million, which will continue until May 2031. 2024 SEK million Balance-sheet item encompassing the hedged item Carrying amount Cumulative value change in hedged item Change in fair value used to measure efficiencyAssets Liabilities Fixed-rate liquidity reserve Eligible treasury bills, Bonds and other interest-bearing securities 4,975 – 1 45 Fixed-rate funding in SEK Debt securities issued, etc. – 30,334 597 -478 Foreign currency risk Fixed-rate funding in EUR and NOK Debt securities issued, etc. – 138 -117 -66 27,201 30,472 408 -222
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Landshypotek Bank Annual Report 2025 68 Note 17 Intangible assets SEK million 2025 2024 Opening accumulated cost 219 204 Purchases during the year 18 15 Closing accumulated cost 237 219 Opening accumulated amortisation -177 -157 Amortisation during the year -18 -20 Closing accumulated amortisation -195 -177 To t a l 42 42 Note 18 T angible non-current assets SEK million 2025 2024 Equipment Opening accumulated cost 30 28 Purchases during the year – 2 Retirements/disposals during the year -1 0 Closing accumulated cost 29 30 Opening accumulated depreciation -29 -28 Depreciation during the year 0 -1 Closing accumulated depreciation -28 -29 Right-of-use assets Opening accumulated cost 118 118 Purchases during the year 10 6 Retirements/disposals during the year -6 -6 Closing accumulated cost 121 118 Opening accumulated depreciation -85 -69 Depreciation during the year -22 -22 Retirements/disposals during the year 6 6 Closing accumulated depreciation -101 -85 To t a l 21 34 Note 19 Other assets SEK million 2025 2024 Other receivables 21 11 To t a l 21 11 Note 20 Prepaid expenses and accrued income SEK million 2025 2024 Prepaid expenses 47 40 Other accrued income 6 4 To t a l 54 45
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Landshypotek Bank Annual Report 2025 69 Note 21 Liabilities to credit institutions SEK million 2025 2024 Swedish banks 355 466 Non-Swedish banks 788 288 To t a l 1,143 754 Note 22 Deposits from the public SEK million 2025 2024 Deposits from the public 25,945 27,090 To t a l 25,945 27,090 Note 23 Debt securities issued, etc. SEK million 2025 2024 Bond loans 96,138 86,194 To t a l 96,138 86,194 Debt securities issued – hedged items in fair-value hedges Amortised cost, excluding fair value adjusted for the change in the fair value of hedged risk 28,627 34,331 Amortised cost, including fair value adjusted for the change in the fair value of hedged risk 28,268 33,851 Bond loans The bank’s bond loans encompass covered bonds and senior bonds. Fair-value hedges The bank hedges part of its exposure to interest-rate risk, in fixed-interest financial liabilities, against changes in fair value due to movements in interest rates. Interest-rate swaps and cross-currency interest-rate swaps are used for this purpose. Note 24 Other liabilities SEK million 2025 2024 Liabilities to Group companies 335 323 Accounts payable 15 13 Lease liabilities 20 33 Other liabilities 191 317 To t a l 560 687
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Landshypotek Bank Annual Report 2025 70 Note 25 Accrued expenses and prepaid income SEK million 2025 2024 Deferred income 5 4 Other accrued expenses 41 38 To t a l 45 42 Note 27 Changes in Equity SEK million 2025 2024 Cross-currency basis spreads in fair value hedges Cross-currency basis spreads in fair value hedges, opening balance -23 -15 Change in fair value over the year 10 -10 T ax on change for the year -2 2 Cross-currency basis spreads in fair value hedges, closing balance -15 -23 Fair-value reserve Fair-value reserve, opening balance 4 -8 Change in fair value over the year 18 14 T ax on change for the year -4 -3 Fair-value reserve, closing balance 18 4 T otal reserves at year end 3 -19 Note 28 Pledged assets, contingent liabilities and other obligations SEK million 2025 2024 Pledged assets for own liabilities Loan receivables, covered bonds 112,765 103,689 Collateral pledged under repurchase agreements 839 350 Contingent liability Försäkringsbolaget Pensionsgaranti, FPG 0 0 Bank guarantees 20 20 To t a l 20 20 Other obligations Committed, but undisbursed credits 1,917 2,090 Committed, but undisbursed credit commitments286307T otal 2,203 2,397 Loans to the public have been pledged as collateral for covered bonds issued. In the event of the company’s insolvency, bondholders have priority rights to the assets registered in the cover pool pursuant to the Covered Bond Issuance Act (2003:1223). Possession of other pledged securities passes to the pledgee in the event of bankruptcy. Note 26 Subordinated liabilities SEK million 2025 2024 Due date Currency Nominal amount Interest 2026/2031 SEK 600 3M STIBOR + 1.00% 601 602 To t a l 601 602 Landshypotek Bank has an early redemption option on the debt on 3 March 2026. Should Landshypotek Bank elect not to exercise this option, the debt continues to run until its maturity date, 3 March 2031. The bank intends to redeem the subordinated loan early, for which permission has been obtained from Finansinspektionen. Subordinated loans are subordinate to Landshypotek’s other debts, which means that they carry the right to payment only after other non-subordinated creditors have received payment.
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Landshypotek Bank Annual Report 2025 71 Note 29 Financial assets and liabilities by category 2025 SEK million Financial assets at amortised cost Financial assets at FVTOCI Financial liabilities at amortised cost Derivatives iden- tified as hedging instruments Assets Cash and balances with central banks 103 – – – Eligible treasury bills, etc. – 4,410 – – Loans to credit institutions 1) 100 – – – Loans to the public 118,151 – – – Bonds and other interest-bearing securities – 8,951 – – Derivatives – – – 1,087 T otal financial assets 118,354 13,361 – 1,087 Liabilities Liabilities to credit institutions – – 1,143 – Deposits from the public – – 25,945 – Debt securities issued, etc. – – 96,138 – Derivatives – – – 968 Subordinated liabilities – – 601 – Other liabilities – – 560 – T otal financial liabilities – – 124,387 968 1) The Riksbank’s interest-free deposit requirement has been excluded from the line item Loans to credit institutions since it is not assessed as meeting the definition of a financial instrument. 2024 SEK million Financial assets at amortised cost Financial assets at FVTOCI Financial liabilities at amortised cost Derivatives iden- tified as hedging instruments Assets Cash and balances with central banks – – – – Eligible treasury bills, etc. – 3,298 – – Loans to credit institutions 297 – – – Loans to the public 111,110 – – – Bonds and other interest-bearing securities – 7,950 – – Derivatives – – – 1,532 T otal financial assets 111,407 11,249 – 1,532 Liabilities Liabilities to credit institutions – – 754 – Deposits from the public – – 27,090 – Debt securities issued, etc. – – 86,194 – Derivatives – – – 1,290 Subordinated liabilities – – 602 – Other liabilities – – 687 – T otal financial liabilities – – 115,326 1,290
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Landshypotek Bank Annual Report 2025 72 Note 30 Fair-value hierarchy for financial instruments 2025 2024 SEK million Level 1 Level 2 Level 3 To t a l Level 1 Level 2 Level 3 To t a l Financial assets at FVTOCI Eligible treasury bills, etc. 4,410 – – 4,410 3,298 – – 3,298 Bonds and other interest-bearing securities 8,951 – – 8,951 7,950 – – 7,950 Derivatives identified as hedging instruments Interest-rate swaps – 747 – 747 – 1,010 – 1,010 Cross-currency interest-rate swaps – 340 – 340 – 523 – 523 T otal assets measured at fair value 13,361 1,087 – 14,448 11,249 1,532 – 12,781 Derivatives identified as hedging instruments Interest-rate swaps – 956 – 956 – 1,273 – 1,273 Cross-currency interest-rate swaps – 13 – 13 – 17 – 17 T otal liabilities measured at fair value – 968 – 968 – 1,290 – 1,290 All financial assets and liabilities measured at fair value are classified according to a valuation hierarchy. This hierarchy reflects the observable prices or other information included in the valuation techniques applied. Ahead of each quarter, the values of quoted prices are assessed with regard to whether or not they represent actual and regularly occurring transactions. Transfers can be made between levels in the hierarchy when indications exist that market conditions, e.g., liquidity, have changed. No transfers were made between the levels. Level 1 only comprises listed mortgage bonds and bonds issued by municipalities and county councils. Level 2 comprises derivative instruments and financial liabilities for which there are well-established measuring models based on market data. Level 1 The fair value of financial instruments traded on an active mar - ket is based on the bid price of quoted market prices. Level 2 The fair values of financial instruments and derivative instru - ments not traded on an active market are calculated using the valuation technique of discounting future cash flows. Quoted market rates for the tenor in question are used for discounting. In all cases, listed swap curves are utilised as the basis for measurement. Listed credit spreads relative to the interest-rate swap curve were utilised for measuring the value of bond assets. The interest-rate and cross-currency basis swap curves are used for measurement of interest-rate and cross-currency interest-rate swaps, respectively. Level 3 Input for assets/liabilities that are not based on observable market data.
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Landshypotek Bank Annual Report 2025 73 Note 32 Assets and liabilities by significant currencies SEK million 2025 2024 Assets Loans to credit institutions – EUR 92 288 T otal assets 92 288 Liabilities Liabilities to credit institutions – EUR 92 288 Debt securities issued – EUR 2,774 2,981 T otal liabilities 2,866 3,269 Other assets and liabilities arise in SEK. All assets and liabilities in foreign currency are hedged against exchange-rate fluctuations using derivative contracts. Note 31 Fair value disclosures 2025 SEK million Level 1 Level 2 Level 3 Fair value Carrying amount Assets Cash and balances with central banks – 103 – 103 103 Eligible treasury bills 4,410 – – 4,410 4,410 Loans to credit institutions 1) – 100 – 100 100 Loans to the public – 119,325 – 119,325 118,151 Value change of interest-hedged items in portfolio hedges 4 4 4 Bonds and other interest-bearing securities 8,951 – – 8,951 8,951 Derivatives – 1,087 – 1,087 1,087 T otal assets 13,361 120,619 – 133,980 132,806 Liabilities Liabilities to credit institutions – 1,143 – 1,143 1,143 Deposits from the public – 25,945 – 25,945 25,945 Debt securities issued, etc. – 95,906 – 95,906 96,138 Derivatives – 968 – 968 968 Subordinated liabilities 602 – – 602 601 Other liabilities – 560 – 560 560 T otal liabilities 602 124,522 – 125,124 125,355 1) The Riksbank’s interest-free deposit requirement has been excluded from the line item Loans to credit institutions since it is not assessed as meeting the defini- tion of a financial instrument. 2024 SEK million Level 1 Level 2 Level 3 Fair value Carrying amount Assets Cash and balances with central banks – – – – – Eligible treasury bills 3,298 – – 3,298 3,298 Loans to credit institutions – 297 – 297 297 Loans to the public – 112,603 – 112,603 111,110 Value change of interest-hedged items in portfolio hedges -73 -73 -73 Bonds and other interest-bearing securities 7,950 – – 7,950 7,950 Derivatives – 1,532 – 1,532 1,532 T otal assets 11,249 114,360 – 125,608 124,114 Liabilities Liabilities to credit institutions – 754 – 754 754 Deposits from the public – 27,090 – 27,090 27,090 Debt securities issued, etc. – 85,694 – 85,694 86,194 Derivatives – 1,290 – 1,290 1,290 Subordinated liabilities 601 – – 601 602 Other liabilities – 687 – 687 687 T otal liabilities 601 115,514 – 116,116 116,616
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Landshypotek Bank Annual Report 2025 74 Note 33 Change in cash and cash equivalents SEK million 2025 2024 Loans to credit institutions at beginning of year 297 218 Loans to credit institutions at year end 203 297 T otal change in cash and cash equivalents -94 79 Note 34 Offsetting disclosures Financial assets and liabilities covered by a contractual master netting agreement or similar, but not offset in the balance sheet. 2025 SEK million Amount recognised in the balance sheet Related amounts not offset in the balance sheet Net amounts Financial instruments subject to ISDA agreements Paid (+) /Received (-) collateral – securities Paid (+) /Received (-) cash – collateral Derivatives 1,087 -431 – -299 358 Reverse repos – – – – – To t a l 1,087 -431 – -299 358 Liabilities Derivatives -968 431 -537 Reverse repos 1) -839 – – – -839 To t a l -1,807 431 – – -1,376 1) The amount for reverse repurchase agreements, reverse repos, includes reverse repos from bonds and interest-bearing securities of a negative SEK 839 million (negative: 350). 2024 SEK million Amount recognised in the balance sheet Related amounts not offset in the balance sheet Net amounts Financial instruments subject to ISDA agreements Paid (+) /Received (-) collateral – securities Paid (+) /Received (-) cash – collateral Assets Derivatives 1,532 -755 – -282 495 Reverse repos – – – – – To t a l 1,532 -755 – -282 495 Liabilities Derivatives -1,290 755 – – -535 Reverse repos -350 – – – -350 To t a l -1,640 755 – – -885 Amount recognised in the balance sheet All assets and liabilities are recognised as gross amounts in the balance sheet, calculated on the basis of each individual instrument. Financial instruments Based on contracted master netting agreements, Landshypo - tek Bank can offset cash flows with the same counterparty and value date. The procedure lowers risk for open exposures. Cash collateral received Under contracted International Swaps and Derivatives Association (ISDA) agreements, Landshypotek Bank has the right to receive cash collateral for positive market values from counterparties whose ratings fall below a minimum agreed level. Moreover, Landshypotek is obliged to collect cash collateral from all counterparties for positive market values on derivative contracts entered into after 1 March 2017. Such collateral is paid in cash to Landshypotek Bank’s bank account and is recognised as a liability to the respective counterparty in the balance sheet. Paid-in collateral eliminates risk in positive exposures. If the counterparty defaults, Landshypotek Bank will utilise the paid-in cash collateral. At the reporting date, SEK 299 million (288) had been received as collateral. Reverse repos In reverse repurchase agreements, reverse repos, the right to all cash flows from the financial assets is transferred to a counterparty. However, as the bank retains the significant risks pertaining to the financial assets, the bond is therefore not
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Landshypotek Bank Annual Report 2025 75 Note 36 Appropriation of earnings SEK The following unrestricted equity is at the disposal of the Annual General Meeting: SEK Retained earnings 4,359,991,370 Group contributions -232,000,000 T ax effect of Group contribution 47,792,000 Net profit for the year 393,185,914 4,568,969,284 The Board of Directors proposes that the funds at the Annual General Meeting’s disposal be allocated as follows: T o be carried forward 4,568,969,284 4,568,969,284 Conditional on the approval of the Annual General Meeting, a Group contribution has been paid in the amount of SEK 232,000,000, which has reduced unrestricted equity as of the balance sheet date by SEK 184,208,000 after taking the tax effect into account. The Board of Directors is of the opinion that the proposed divi - dend, in the form of a Group contribution, does not compromise the company’s ability to discharge its obligations in the short and long term, nor to make any necessary investments. The proposed transfer of value can therefore be justified consider - ing that stated in Chapter 17, Section 3, paragraphs 2–3 of the Swedish Companies Act. The Board of Directors proposes that the year’s funds at the disposal of the Annual General Meeting, SEK 4,568,969,284, be carried forward. The annual accounts have been prepared in accordance with generally accepted accounting principles and provide a fair representation of the company’s position and performance. Note 35 Related-party disclosures SEK million 2025 2024 Lending to related parties Lending Interest income Lending Interest income CEO and senior executives 23 1 23 1 Board of Directors 45 2 78 2 To t a l 68 3 101 3 SEK million 2025 2024 Deposits from related parties Deposits Interest expense Deposits Interest expense CEO and senior executives 5 0 8 0 Board of Directors 5 0 31 1 To t a l 10 0 39 1 Lending Permanent employees of Landshypotek are able to borrow money at advantageous terms. The types of loans include both secured and unsecured loans. Since June 2017, no new unsecured loans are offered. Loans taken prior to that date will expire at the end of the loan term, maximum ten years. All lend - ing is subject to customary credit approval processes and the highest amount for which advantageous terms are available is SEK 4 million. Amounts in excess of the above receive the best interest rate provided to customers together with an automatic discount through the Bolån product (refer to www.landshypo - tek.se for applicable discounts). Credit information is obtained from Upplysningscentralen (UC). These loans may be subject to taxation as benefits. Loans of up to 85 percent of the L TV ratio are granted against collateral in houses, tenant-owner apart - ments and holiday homes. Capital repayment plans apply for these loans over a maximum period of 50 years. The fixed-rate periods are one, two, three, four and five years. The applicable interest rate is the bank’s list rate for mortgages together with a 1.75 percentage point discount. Deposits Deposits from related parties are subject to the same terms and conditions as other equivalent deposits with the company. Note 37 Events after the balance sheet date T o enhance conditions for delivering on the new strategy adopted by the Board in December 2025, a new organisation has been decided. As a whole, the Bank’s overall organisation is based on seven business areas: Sales, Business Development, Marketing, Corporates, Finance, Risk and Compliance. The change means that, including the Chief Executive Officer (CEO), the Bank Management will now comprise seven (previously eight) members from 1 February 2026. derecognised from the balance sheet. In the case of reverse re - pos, the carrying amount is deemed an acceptable approxima- tion of the fair value and is treated as such. For current reverse repos at the balance sheet date, refer to the table footnote. Net amounts Net amounts show the remaining market value of contracted swap agreements that can be neither offset nor covered by received collateral.
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Landshypotek Bank Annual Report 2025 76 Landshypotek Bank Annual Report 202576
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Landshypotek Bank Annual Report 2025 77 Sustainability Report Sustainability at Landshypotek in 2025 78 Responsibility for people, the environment and society 79 Material sustainability areas 81 Climate change 81 Biodiversity and ecosystems 86 Our employees 87 Business conduct 90 Appendix 1 Execution of the double materiality assessment 92 Appendix 2 General information about the 2025 sustainability report 93 Taxonomy 93 Landshypotek Bank Annual Report 202577
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Landshypotek Bank Annual Report 2025 78 Sustainability at Landshypotek in 2025 • All employees have received sustainability training and extra sustainability and climate courses have been pro - vided to the bank’s farm and forestry account managers and to mortgage officers. • The bank has updated its green bond framework, to the effect that the framework enables important invest - ments in Sweden’s farming and forestry. In 2025, the bank issued SEK 6 billion in green covered bonds that exclusively finances sustainable farming and forestry in Sweden. • The bank adopted an updated climate transition plan that sets out how the bank will reduce its climate impact, both in the credit portfolio and in the bank’s own operations. • The bank has set emission reduction targets for 2030 within its own operations. The targets include reducing emissions from business travel. • The bank has continued working with sustainabili- ty-related risks in the credit portfolio. These risks were considered when preparing the bank’s new business strategy from now to 2030. The bank is developing a new sustainability score for farming and forestry customers, which will be a key tool, not least for meeting the new requirements for managing sustainability-related risks. • The bank has arranged several, internal and external, seminars and information meetings on sustainability. • Despite all the twists and turns surrounding the CSRD/ ESRS, Landshypotek Bank has continued its sustain - ability reporting and intends to keep doing so each year going forward. About the bank and its lending Our lending • Landshypotek finances some 640,000 hectares of arable land and around 110,000 hectares of pasture, corresponding to about 25 percent of Sweden’s pas - ture and arable land. • The average age of farming and forestry customers is 60 and for mortgage customers the average is 52. • Landshypotek lends on farm properties in 280 munici - palities and finances housing in 286 municipalities. How we work • Since 2023, Landshypotek has halved the number of flights. We flew 154 times in 2025 and aim to reduce this further. • Rail travel by employees totalled almost 260,000 km in 2025, equivalent to just over six circumnavigations of the Earth. Our employees • Some 90 percent of Landshypotek’s employees used their wellness allowance in 2025. • Our employees are engaged – both when working and in leisure time. More than 40 percent of our employees have a side activity, including in farming and forestry, sports and community associations, and tenant-own - ers’ associations. 2025 was an eventful year for sustainability at Landshypotek Bank. A brief description of the main events of the year follows: Landshypotek Bank Annual Report 202578
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Landshypotek Bank Annual Report 2025 79 Landshypotek Bank is owned by 31,000 farming and for - estry loan customers, organised as members of Lands - hypotek Ekonomisk Förening. They are represented by around 120 elected representatives, who are themselves farmers or who are otherwise involved in agriculture and forestry. The bank’s surplus is distributed to members as an annual dividend, meaning it is reinvested in the devel - opment of Swedish farming and forestry. By only providing financing for farming, forestry and housing in Sweden, with collateral in the form of pledged property, the bank’s lending operations are naturally lim - ited. As a result of the above, the bank does not finance the extraction of fossil fuels such as coal, natural gas or oil. Card and transaction services as well as securities trading are not part of Landshypotek’s product offering. Operations are represented in 21 branches across the country, from Skellefteå in the north to Lund in the south. The bank finances its lending by issuing bonds in Swed - ish kronor, the majority of which are covered bonds. The bank has issued SEK 12 billion in green covered bonds that exclusively finances sustainable farming and forestry in Sweden. The bank also has a liquidity reserve, which comprises interest-bearing securities, either covered bonds in SEK issued by Nordic credit institutions or securities issued by Swedish municipalities, regions or Kommuninvest. The bank has decided that investments in the liquidity portfolio may not include operations with a focus on fossil fuel (coal, oil, oil sands and gas), weapons, pornography (the production of pornographic material), gambling (gambling and betting operations), tobacco or in companies that systematically violate international conventions and human rights. The bank’s sustainability report pertains to the period from 1 January to 31 December 2025. The bank has chosen to report in a manner inspired by the European Sustainability Reporting Standards (ESRS). The Sus - tainability Report includes the bank’s double materiality assessment which was reviewed in 2025 (see Appendix 1). The double materiality assessment analysed the bank’s impacts, risks and opportunities in own opera - tions as well as upstream and downstream in the bank’s value chain. The double materiality assessment identified the bank’s material sustainability areas and the bank’s policy documents, actions and targets are described per topical area. Responsibility for people, the environment and society ESRS 2 SBM-1 Strategy, business model and value chain The foundation of the cooperatively owned Landshypotek Bank was laid back in 1836, when the country’s farmers joined together to ensure access to capital to develop the growing farming and forestry sectors in Sweden. T oday, we are the market leader for Swedish banks when it comes to lending for the purchase of agricultural properties and investments in farms around the country, plus a growing challenger in the mortgage market. Landshypotek also offers secure savings accounts. Landshypotek Bank Annual Report 202579
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Landshypotek Bank Annual Report 2025 80 ESRS 2 GOV-1 The role of the administrative, management and super - visory bodies ESRS 2 GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies Governance of sustainability-related matters at Landshypotek Bank The Board has the ultimate responsibility for sustainabil - ity-related matters at Landshypotek Bank. The Board of Directors has delegated responsibility for sustainabili - ty-related matters to the CEO who, in turn, has delegated responsibility to the Chief Sustainability Officer. ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes The bank does not apply any form of variable remunera - tion linked to sustainability-related matters. Formal responsibility for sustainability-related matters lies with the Chief Sustainability Officer, but the bank has a stated ambition for sustainability to be integrated into every level of operations. The size of the bank means that all departments need to work with sustainability-related matters every day. A description of how different parts of the bank work with sustainability is presented in the diagram below: HR Compliance unit Business organisation Accounting and Treasury Chief Information Securi- ty Officer (CISO) • Responsible for matters pertaining to own work- force, for example work environment, working conditions, diversity, equal treatment, benefits, etc. • Responsible for ensuring that the bank meets appli- cable legal requirements in close collaboration with relevant departments • Has a close dialogue with the bank’s customers, primarily in the farming and forestry sectors. • Discusses the need for investments in farms and forests within the framework of customer dialogues in order to reduce emissions or adapt farm and forest properties to a changing climate. • Carries out a climate and environmental analysis of the bank’s major farming and forestry customers. • Responsible for the bank’s financial reporting • Finances the bank’s funding and liquidity portfolio in line with the bank’s established rules in the area • Responsible for the bank’s work with information security, encompassing everything from IT sys- tems to data manage- ment processes and procedures. The bank’s Management Group and CEO • Plays an important role in ongoing work with sustainability-related matters pertaining to the bank’s own operations and lending. Board of Directors • Has the ultimate responsibility for sustainability-related matters at the bank. • Is informed regularly about the bank’s work on sustainability-related matters. • Received additional in-depth training in 2025 on regulations pertaining to farming and forestry in Sweden. Risk organisation • Actively identify and measure the bank’s sustainability-related risks linked to lending for farming, forestry and housing. • Risk indicators linked to different kinds of sustainability-related risks in farming, forestry and housing are continuously followed up and reported to the Board. Chief Sustainability Officer and the sustainability team • The Chief Sustainability Officer is responsible for the bank’s sustainability work • The sustainability team is responsible for the bank’s various forms of sustain- ability reporting • The sustainability team supports other departments in their work with sustainability-related matters. Landshypotek Bank Annual Report 202580
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Landshypotek Bank Annual Report 2025 81 Material sustainability areas ESRS 2 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities In 2025, the bank reviewed its double materiality assessment to identify the bank’s material sustainability areas. The bank’s material sustainability areas comprise climate change, biodiversity, our employees and business conduct. A more detailed description of the different steps in the double materiality assessment is provided in an appendix at the end of the sustainability report. Climate change Climate change is a challenge for all parts of society. As a bank, Landshypotek’s direct impact on the climate is very limited. The primary sources of emissions are energy consumption at the bank’s premises and business travel, since many of the bank’s farming and forestry customers live in loca- tions that can only be reached by car. The bank’s largest climate impact is indirect, in the form of the credit portfolio and especially in lending to farming and forestry. Landshypotek Bank finances farming, forestry and living in the countryside. Farming and forestry are two unique sectors in the climate transition, since they are already affected by a changing climate. At the same time, these sectors will play a key role in the climate transition to net zero emissions by producing food and biogenic raw materials. The bank’s lending to the farming and forestry sector also means that the bank’s financed emissions are markedly different from those of other Swedish banks. Swedish forests and arable and pasture land are already today sequestering a considerable amount of carbon. The bank thus finances GHG removals through its lending. At the same time, agriculture accounts for approximately 15 percent of Sweden’s total emissions and significant amounts of fossil fuel are used within Swedish farming and forestry. The main emissions sources in agriculture comprise land use, animals’ digestive processes, and the use and processing of manure. The farming sector is the largest source of Sweden’s total GHG emissions, specifically methane and nitrous oxide. Both have a stronger greenhouse effect than carbon dioxide, but they also break down more quickly in the atmosphere (partic- ularly methane). Since emissions for the sector are based on biological processes, they can vary substantially over regions, times and production methods. There is therefore considerable uncertainty associated with the calcula- tions. This is particularly true for nitrous oxide emissions from nitrogen fertiliser in arable land. Swedish forests and arable and pasture land, in contrast, sequester consider- able quantities of carbon. Every year, Swedish forests and land absorb greenhouse gases corresponding almost to Sweden’s entire GHG emissions. Climate-related risks linked to farming and forestry Farming and forestry are already affected by a changing climate. Adaptation of the sector will be essential for ensuring food production and the supply of biogenic raw materials. The farming and forestry sectors require long-term use of land. Identifying potential climate- related risks for land use, whether in the near future or Landshypotek Bank Annual Report 202581
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Landshypotek Bank Annual Report 2025 82 in the coming decades – will be an important component of the bank’s risk management. The bank has performed an analysis of the primary climate-related physical risks for the farming and forestry sectors. The analysis shows that the risks vary across the country and will impact different operations in different ways. The actions that are best suited for any given activity depend on circum - stances arising from geographical conditions and the type of activity in question. In addition to physical climate-related risks, the bank also follows the progress of regulations that can entail con - sequences for the use of fields and forests (“transition risks”). This includes the EU Nature Restoration Regu - lation (2024/1991) and other legal acts in Sweden that impact how land can be used in farming and forestry, now and in the future. The EU’s Land Use, Land Use Change and Forestry regulation (the LULUCF directive) can also entail consequences for how forests in Sweden are used. The bank’s analysis indicates that transition risks are the largest short-term sustainability-related risks for the bank. Changes in regulations can directly impact farming and forestry customers’ operations and thus impact their repayment capacity and the value of their properties. ESRS E1-1 T ransition plan for climate change mitigation ESRS E1-2 Policies related to climate change mitigation and adaptation The bank’s climate transition plan The Board of Directors of Landshypotek Bank has adopted a transition plan that sets the direction and ambition for the bank’s operations in the face of a changed climate. The bank’s transition plan includes the credit portfolio for farming, forestry and housing as well as own operations. The bank has chosen to focus its efforts on the transition plan for agriculture. The bank’s lending to agriculture has the greatest climate impact, which is why the bank aims to work actively with its farming and forestry customers to phase out fossil fuel in Swedish farming and forestry. Phasing out fossil fuels requires investment in various solutions, including biogas facilities, solar panels and improving the energy effi - ciency of farm buildings. This is something that the bank can finance – and already finances today – and there are good opportunities for the bank to help finance invest - ments to remove fossil fuels from Swedish agriculture in the near future. ESRS E1-3 Actions and resources in relation to climate change policies Actions The bank took several actions in 2025 to reduce its climate impact, in own operations as well as in the credit portfolio: • All employees received annual sustainability training from the bank and in-depth sustainability and climate courses have been provided to the bank’s account managers and mortgage officers. • The bank has updated its green bond framework, to the effect that the framework enables important invest - ments in Sweden’s farming and forestry. In 2025, the bank issued SEK 6 billion in green covered bonds that exclusively finances sustainable farming and forestry in Sweden. • The bank adopted an updated climate transition plan that sets out how the bank will reduce its climate impact, both in the credit portfolio and in the bank’s own oper - ations. • The bank has set emission reduction targets for 2030 within its own operations. The targets include reducing emissions from business travel. An overview was con - ducted of the bank’s travel guidelines to clearly prioritise rail for business travel. ESRS E1-4 Targets related to climate change mitigation and adaptation T argets The bank already has a long-term target of achieving net zero emissions by no later than 2045. In line with the agricultural industry’s roadmap, the bank is also working toward making Swedish agriculture fossil-free by 2030. Neither the bank nor its customers can achieve these targets on their own, however. Political guidance with clear financial incentives is necessary if Swedish farmers are to make the transition. T o ensure the bank’s contri- bution to the long-term overall objectives, the bank has developed a number of goals in its transition plan. They address five different key areas: the offering, customer engagement, funding, expertise and climate-related risks. Landshypotek Bank Annual Report 202582
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Landshypotek Bank Annual Report 2025 83 Offering Goal 2030: The bank is to maintain a competitive finance offering to customers for climate change mitigation and adaptation. The customer pricing model applied by the bank applies the same approach to climate-related risks as for other risks. Customer engagement Goal 2030: Each year until 2030, the bank is holding specialised training sessions for farming and forestry cus- tomers focused on the climate risks and climate transition of agriculture as well as the bank’s role in the transition. Goal 2030: The bank’s account managers hold ongoing dialogues with customers in the professional farmer segment to provide relevant advice about the need for a climate transition, adaptation measures and future investment needs. Funding Goal 2030: By 2030, the volume of green bonds issued will increase 50 percent from 2024’s level of SEK 11.5 billion. Expertise Goal 2030: Until 2030, the bank’s employees are receiv - ing annual training in this area. Goal 2030: At least once every other year until 2030, the Board, management, risk function and business organi - sation will undergo in-depth training initiatives on relevant matters linked to the climate transition for Sweden’s agriculture and housing. Climate-related risks Goal 2030: Climate-related risks are integrated in all aspects of the bank’s risk management, from ongoing customer dialogues to customer pricing. Goal 2030: The bank’s management of climate-related risks is based on appropriate decision data. Emissions reporting – Scope 1, 2 and 3 The bank’s direct climate impact arises mainly from the bank’s premises, business travel and purchased goods and services. As the bank’s customers are spread across Sweden, its operations require a considerable amount of business travel, especially when many customers can only be reached by car. The bank has no Scope 1 emissions, as the bank has no manufacturing operations and owns no vehicles. Scope 2 emissions are calculated for: district heating, district cooling and electricity consumption at office premises. The electricity consumption calculations are based on actual data for a number of offices. Individual electricity consumption measurements are lacking for other offices and emissions data is calculated using the per FTE data for those offices with actual electricity consumption data. The use by all the bank’s offices of electricity from renewable energy sources has helped reduce climate impact in 2025. Emissions from heat - ing and cooling consumption are calculated using the per FTE data for those offices with actual data on such emissions. Scope 3 includes emissions from business travel by rail, car and air as well as from hotel nights, purchased IT equipment and the operation of server halls. The Scope 3 calculations are based on real data from the bank’s server hall and travel suppliers and pertain to employee mileage allowances for business travel by car. In 2025, the bank has adopted emission reduction targets for business travel. By 2030, the bank aims to halve the num - ber of business flights compared with 2024. Moreover, by 2030, emissions from business travel by car will be reduced 37 percent compared with 2023, which is in Landshypotek Bank Annual Report 202583
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Landshypotek Bank Annual Report 2025 84 2025 2024 Change (%) Scope 1 – GHG emissions Gross Scope 1 GHG emissions (tCO 2e) 0 0 0 Scope 2 GHG emissions Gross location-based Scope 2 GHG emissions (tCO 2e) 32.7 42.1 -22% Significant Scope 3 GHG emissions T otal gross indirect (Scope 3) GHG emissions (tCO 2e) Purchased goods and services 3.4 2.6 +31% Business travel 41.0 53.9 -24% T otal GHG emissions T otal GHG emissions (location-based) (tCO 2e) 7 7.1 98.6 -21.8% line with the Swedish national climate target. While the bank prioritises digital meetings, given the spread of the bank’s customers across the entire country, some business travel is required. Wherever possible, rail must be used for business travel. However, some customers, especially in Swedish farming and forestry, can only be reached by car and, accordingly, the bank is also working on solutions to promote fossil-free transportation. The bank’s Scope 3 emissions exclude emissions from the use of software, including AI. That said, AI is used at the bank and the bank is aware that its use entails an environmental cost. Scope 3 – Emissions and removals financed by the bank The bank’s lending to farming, forestry and housing means that the bank finances GHG emissions as well as removals in these sectors. The bank conducted a portfo - lio analysis to calculate the carbon footprint of its credit portfolio to farming, forestry and living in the countryside. The analysis is based on standardised data adapted to the bank’s credit portfolio. The bank’s analysis has entailed the use of a number of assumptions, including the average number of livestock units in different farming activities, GHG emissions from cultivated land and the energy consumption for different farming activities. The findings show that the bank’s credit portfolio has a pos - itive climate impact, in other words, that the underlying properties, with associated activities and operations, in the bank’s credit portfolio together sequester more carbon dioxide than they emit. The bank has issued a total of SEK 12 billion in green covered bonds that exclusively finances sustainable farming and forestry in Sweden. According to the bank’s most recent impact report, the climate impact of projects financed amounts to just under 2.5 million tonnes of CO2 in terms of carbon sequestration in growing forests as well as in substitution benefit. T axonomy reporting The bank’s T axonomy reporting is included in an appendix to the Sustainability Report. The bank has lending to forestry and homeowner mortgages that are encompassed by the EU T axonomy regulation. At pres- ent, agriculture is not encompassed by the T axonomy. T axonomy-eligible operations are assessed on whether they are environmentally sustainable pursuant to certain criteria. The technical criteria are in place for forestry and mortgages. The bank obtains energy rating data for housing in the mortgage portfolio from the National Board of Housing, Building and Planning. The bank then conducts an anal - ysis to determine that no significant harm is being done to the other environmental objectives before it can deter - mine what proportion of its lending on houses meets all the criteria in the T axonomy. Landshypotek Bank Annual Report 202584
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Landshypotek Bank Annual Report 2025 85 Efforts are ongoing, together with other Swedish banks and forestry stakeholders, on the application of the tech - nical criteria for assessing the environmental sustainabil - ity of forestry according to the T axonomy. The bank is currently unable to report whether its lending to forestry meets the technical criteria. The reporting template does not allow for detailed information on lending to SMEs as lending to SMEs (including micro-enterprises) is not included in the T axonomy reporting. The bank only lends to individuals, sole traders, micro, small and medi - um-sized enterprises and is therefore excluded from the GAR calculations. Financed emissions/removals in terms of loan-to-value ratio (tCO2e) Financed substitution benefit in terms of loan-to-value ratio (tCO2e) Land use Removal in growing forests -1,900,000 -1,150,000 Removal in arable and pasture land -71,000 N/A Emissions from arable land +460,000 N/A Emissions from pasture +15,000 N/A Emissions from organogenic soils +330,000 N/A Land use -1,540,000 Emissions from farming operations Milk production +560,000 N/A Beef production +100,000 N/A Poultry +22,000 N/A Pigmeat production +27 ,000 N/A Arable farming +65,000 N/A Forestry +2,000 N/A Emissions +776,000 Housing +3,000 N/A Buildings +24,000 N/A Total emissions and removals -737,000 Total emissions and removals with substitution benefit -1,887,000 Landshypotek Bank Annual Report 202585
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Landshypotek Bank Annual Report 2025 86 Biodiversity and ecosystems SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model ESRS 2 IRO-1 Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks, dependencies and opportunities Farming and forestry have a major impact on biodiversity and are simultaneously the only sec - tors that can create biodiversity. Farming and forestry are therefore two key sectors in efforts to halt biodiversity loss and to promote biodiversity in the country. As a bank, while we have no direct control over how our customers use the land or forest, we expect our customers to follow applicable legislation regarding biodiversity. Sweden has well-established regulations governing how land may be used, and many of these regulations also aim to support biodiversity. The bank expects Swedish authorities to conduct the checks established that ensure our customers are following applicable legislation. E4-2 Policies related to biodiversity and ecosystems Actions The bank has prepared a position paper that sets out the bank’s approach to biodiversity through its lending. E4-4 Targets related to biodiversity and ecosystems The bank does not currently have any biodiversity targets. E4-5 Impact metrics related to biodiversity and ecosystems change A contributing factor to the bank’s decision is the lack of an established measurement method for biodiversity. The bank thus deems it inappropriate to set targets when there is no data available to thoroughly analyse the current situation. M4-3 Actions and resources related to biodiversity and ecosystems The bank implements its overall strategy in this area through various policies. According to Landshypotek’s valuation policy, environmental and climate factors that could positively or negatively impact the future market value of the property must be stated. This includes factors that could impact the ability to use a farm or forest property, for example restrictions due to nature or water protection areas. Biodiversity is also taken into consid - eration when granting credit through a separate climate and environmental analysis. This is applied to all legal entities and farmers beyond a certain size threshold. The analysis looks at environmental and climate risks that impact the customer’s repayment capacity, providing an indication of which actions the customer is taking to create positive benefits and to minimise negative impacts on the environment and climate. Landshypotek Bank Annual Report 202586
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Landshypotek Bank Annual Report 2025 87 The bank’s positive impact includes offering secure employment where employees can influence ways of working and decision-making processes. The bank’s size means that employees have the opportunity to take on a broad range of work tasks, which leads to skills develop- ment and internal mobility. The bank’s potential negative impact primarily pertains to risks linked to stress and mental illness as a result of an excessive workload. The bank’s size can mean that employees may need to juggle many tasks at the same time. While this can lead to more stimulating work, it can also increase the need to prioritise and thus the risk of unhealthy workloads. The bank’s negative impacts are minimised through actions taken in line with the bank’s policy document in the area that aims to ensure comfortable and sustainable employment. ESRS S1-1 Policies related to own workforce The bank’s policy document for the area The bank’s relationship with its employees is based on everyone being of equal value and the bank strives to maintain an equitable relationship between individuals and groups. The bank works continuously with activities with employees and managers to: • Promote job satisfaction, efficiency and continuous development • Support every employee’s participation, engagement and desire to take responsibility • Be an attractive workplace with openness and diversity The bank’s work with employees is based on the policy documents that regulate working conditions, the work environment and similar matters. These policies are: • HR Policy • Remuneration Policy • Landshypotek’s Code of Conduct • Guidelines for handling threats and violence • Instructions for reporting discrimination and unequal treatment • Security Policy • Work environment and diversity guidelines Diversity, inclusion and equal treatment The bank interprets diversity as being about similarities and differences, and not just pertaining to gender equality or the grounds of discrimination (gender, gender identity or expression, ethnicity, age, religion/belief, sexual orien- tation and disability). The employees’ education, family circumstances, childhood environment, values, interests, experiences, etc., are all of equal relevance. For the bank, a diverse workforce is a success factor that contributes differing perspectives, broader skills and more diversi- fied decision-making. The bank believes that the key to creating an inclusive work environment where employees have opportunity to perform based on their abilities lies in openness, respect and acceptance of differences. The bank aims for a gender balance of 40/60 across all employees and all management positions. The bank as a whole has long had an even gender distribution that it works actively to maintain. The bank has established gender balance targets for managers, Bank Manage - ment and for the Board of Directors, presented in the table on page 89. Our employees The bank’s main asset is a thriving workforce, which is also a prerequisite for achieving its strate- gic plan and long-term sustainability. Each employee at Landshypotek Bank accounts for almost half a percent of the bank, so the commitment of each employee to us as an employer, to their workplace and to their tasks is critical for our performance. Accordingly, we attach considerable importance to commitment and to understanding how the bank has evolved. The bank has a significant impact on its employees, since it is the primary employer for many employees. The bank’s impact extends over the short and medium term and can be positive as well as negative, depending on the bank’s working conditions and work environment. Accordingly, sustainable management of its own workforce is integral to the bank’s sustainability efforts, which are based on promoting positive impacts while systematically identifying, preventing and managing the risk of negative impacts. Landshypotek Bank Annual Report 202587
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Landshypotek Bank Annual Report 2025 88 The bank’s work with diversity and equal treatment aims to create a work environment that supports and cele - brates diversity, through the creation of equal rights, obli - gations and opportunities for all. The same opportunities for employment, information, training and development at work apply for all employees. Work with diversity and equal treatment must be naturally integrated into oper - ations and diversity aspects should be naturally taken into account when the bank designs the organisation, allocates tasks, recruits, sets salary, promotes, develops skills and works with the work environment. Accordingly, it is of central importance that the bank actively identifies, averts and prevents all forms of harassment and discrim - ination. Work in this area includes conducting annual employee surveys on the work environment, including one on the theme of inclusion, discrimination and experi - ences of victimisation. We work actively with the survey findings to continue jointly developing the bank and to maintain a safe and respectful workplace. Training and skills Skills development is important for the bank’s compet - itive ability and strengthens its employer brand. Skills development is to be continuous and is to be based on the requirements of the operating environment as well as the bank’s purpose, vision, strategies and goals. All employees have worked actively with self-leadership training in 2025. The bank attaches great importance to providing a structured work and social induction to new employees, to build confidence in the role and facilitate participation, both within their own department and in the bank as a whole. Managers are responsible for ensuring that every employee receives a satisfactory introduction. The same responsibility also applies for reintegrating employ - ees who are returning to service after parental leave, extended sick leave or leave of absence for example. ESRS 1 S1-2 Processes for engaging with own workforce and workers’ representatives about impacts Employee appraisals are performed regularly to develop and discuss individual goals, skills development plans and any issues. Goals are also followed up in connection with annual salary discussions. The bank strives for fair and equal pay, where skills, responsibilities and perfor - mance comprise key criteria for assessment. Dialogues and employee commitment During the year, employee commitment at the bank was evaluated in many ways. In the spring, each employee responded to questions based on a commitment index called the sustainable employee engagement (SEE) index. Evaluating SEE captures the motivation of employees and the prerequisites they have for offering their best for the organisation. It also captures the extent to which employ- ees feel self-fulfilled and recognise personal development in their work, which is positive both for the individual and for the organisation. SEE provides an indication of the extent to which employees understand their organisation’s over- all objectives and how their own contributions meet these objectives. The SEE index consists of nine questions in three areas: motivation, leadership and strategic manage- ment. The results of this year’s survey show that we have healthy prerequisites for sustainable employee engage- ment as employees have provided average value scores of over four on a scale of one to five. We measure the bank’s employee net promoter score (eNPS) by posing the question “How likely are you to recommend Landshypotek Bank as an employer to a friend?” Our eNPS measurements are historically strong. The results of the latest eNPS measurement amounted to 45 (41), which is a very favourable result and far above the average in Sweden, indicating a positive attitude and feeling toward the bank as a workplace. Remuneration and compensation (incl. benefits) ESRS S1-11 Social protection ESRS S1-15 Work-life balance metrics As a bank employee in Sweden, all employees are enti - tled to certain statutory rights, including the right to join a trade union, the right to parental leave and sick pay in the event of an extended absence. Landshypotek Bank strives to be an attractive and responsible employer with competitive employment terms and conditions, and a good work environment. The employees are offered loans at favourable terms, profit sharing and subsidised lunches, for example. Employees of Landshypotek are offered a generous wellness allowance, which was taken up by some 90 percent of employees in 2025. S1-8 Collective bargaining coverage and social dialogue SBM-2 Interests and views of stakeholders ESRS S1-2 Processes for engaging with own workforce and workers’ representatives about impacts S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportuni - ties related to own workforce, and effectiveness of those actions All of the bank’s employees are covered by collective agreements with the Financial Sector Union of Sweden and the Swedish Confederation of Professional Associ - ations (SACO). Each of the two unions have appointed their own representative on the bank’s Board. Landshypotek Bank Annual Report 202588
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Landshypotek Bank Annual Report 2025 89 ESRS S1-10 Adequate wages The bank strives to achieve sound and fair pay scales that ignore background and gender. The bank adheres to the legislation in this area, which entails the bank con - ducting a structured annual salary mapping within the organisation with the aim of identifying, addressing and preventing unfair pay gaps between genders. The bank adopts structured measures in the event that the analysis reveals that unfair pay gaps are present. KPI reporting for own workforce Various KPIs related to own workforce are presented in the following table. It is important to note that Landshy- potek Bank only has operations in Sweden and must therefore comply with applicable legal requirements in terms of parental leave and pension provisions. ESRS S1-6 Characteristics of the undertaking’s employees Gender and age distribution Ta rg et 2025 2024 Change Number of employees – total 246 236 +10 (+4%) Men 60/40 112 (46%) 112 (47%) 0 (0%) Women 60/40 134 (54%) 124 (53%) +10 (+8%) Managers Men 60/ 40 17 (52%) 12 (48%) +5 (+42%) Women 60/ 40 16 (48%) 13 (52%) +3 (23%) Management group Men 60/40 5 (62%) 6 (75%) -1 (-17%) Women 60/40 3 (38%) 2 (25%) +1 (+50%) The Board – bank Men 60/40 4 (57%) 5 (71%) -1 (-20%) Women 60/ 40 3 (43%) 2 (29%) +1 (+50%) Age <30 N/A 21 (9%) 20 +1 (+5%) 30–49 N /A 143 (58%) 140 +3 (+21%) 50> N /A 81 (33%) 76 +5 (+7 %) ESRS S1-7 Characteristics of non-employees in the undertaking’s own workforce Full-time, part-time and non-employee workers in the undertaking’s own workforce 2025 2024 Change Number of employees – total 259 250 +9 (+4%) Full-time employees 243 229 (92%) +14 (+6%) Part-time employees 3 7 (3%) -4 (-57%) Non-employee workers in the undertaking’s own workforce 13 14 (6%) -1 (-7%) ESRS S1-14 Health and safety metrics Sick leave, employee turnover, employee commitment 2025 2024 Change Sick leave – short term 1. 19 1.05 +13% Sick leave – long term 0.6 1.48 -59% Employee turnover 10.5% 6% +75% Concluded employment 27 15 +12 (+80%) New employment 39 50 - 11 (-22%) Employee commitment, eNPS 45 44 +1 Landshypotek Bank Annual Report 202589
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Landshypotek Bank Annual Report 2025 90 The bank’s operations are primarily focused on two key areas: lending and borrowing. Sound and sustainable lending is central to the bank. The bank wants to contrib - ute to our customers’ financial security. The framework and approach for granting credit are set by the bank’s credit regulations. The bank’s Sustainability Policy stipu - lates that the bank is to work with responsible borrowing to ensure responsible investments by integrating sustain - ability aspects in its investment decisions. The Board’s governance, ambitions and targets in busi - ness conduct are set out in several policy documents. This area is essential for conducting banking operations with a high level of trust among the bank’s stakeholders and marks all of the bank’s activities. ESRS G1-1 Business conduct policies and corporate culture The following policy documents address the Board’s governance, ambitions and targets in the area: • Remuneration Policy • Ethics Policy • Code of Conduct • Insider Policy • Customer Complaints Policy • Conflict of Interest Policy • Compliance Policy • Policy for Counteracting Money Laundering and Financing of T errorism • Internal Governance and Control Policy • Board Diversity Policy • Outsourced Operations Policy • Code of Conduct for Suppliers • Eligibility Policy • Risk Policy. Results of the double materiality assessment ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model The double materiality assessment analyses the bank’s impacts, risks and opportunities in business conduct. It is clear that the bank has a significant impact on its prevail - ing corporate culture. Responsible business conduct is not only relevant in terms of sustainability, but is essential for conducting banking operations with a high level of trust among the bank’s stakeholders. The double materi - ality assessment indicated that the overall risk profile for matters pertaining to business conduct are generally low as a result of the bank’s structure and internal gover - nance and control processes. Training and whistle-blower systems All of the bank’s employees undergo annual training in ethics, conflicts of interest and corruption. All lending is subject to duality controls and the whistle-blower function is open to anyone who, in a work-related con - text, becomes aware of information or irregularities of public interest. Business ethics are included in various employee training courses, including induction train - ing for new employees and annual training in business ethics. The bank’s managers and compliance function can always be contacted and consulted in any case of uncertainty. There were no reports made in the whis - tle-blowing system in 2025. Business conduct Responsible business conduct is critical to us as a bank. We lay the foundations for running the bank responsibly by clearly structuring, monitoring and controlling our operations. This is a precondition for creating high levels of trust in us and what we do. Real success entails creating a culture in daily operations whereby every employee understands what is right and wrong. We achieve this through an organisation that welcomes dialogue and changed ways of working, and that identifies, investi- gates and counters any corruption or other moral dilemmas. Landshypotek Bank Annual Report 202590
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Landshypotek Bank Annual Report 2025 91 Corruption and bribery The bank has zero-tolerance for corruption. Objectivity and correct conduct are therefore fundamental in all the bank’s business relationships. ESRS G1-3 Prevention and detection of corruption and bribery The bank regularly conducts – at least once per year – a risk analysis concerning the bank’s corruption risks and conflicts of interest. The risk analysis identifies the likelihood and consequence of the risk materialising and, on the basis of this analysis, appropriate actions are designed where necessary. The bank’s and its employees’ commitments in farming and forestry comprise a major advantage and strength, but may also entail a risk of conflicts of interest and bias. Employees must always notify and await approval from their line manager and the bank’s compliance depart - ment prior to starting any ancillary activities. All ancillary activities reported are followed up annually. In the event of identification of a conflict of interest or bias, the case is always handled by an independent employee of the bank, as stated in the bank’s Conflict of Interest Policy. All conflicts of interest must be reported to the bank’s compliance department for documenta - tion. The bank’s incident reporting system is used when a risk exists of any negative impact on the bank’s inter - nal and external processes, customers and regulatory compliance. ESRS G1-4 Incidents of corruption or bribery The bank had no incidents of corruption or bribery in 2025. Prevention of money laundering Money laundering, terrorism financing and breach - ing sanctions are three areas that are not explicitly addressed in the ESRS. However, these three areas comprise serious threats to society in Sweden and the rest of the world, and combating them is therefore of particular concern to the bank. The bank does not tolerate and does not participate in money laundering, terrorism financing or breaching sanctions. The bank does not enter into new or expanded business relation - ships without sufficient know your customer (KYC) data or where it is deemed that the risk cannot be managed through mitigation measures. KYC data must be continu - ously updated and action taken in business relationships where the customer fails to provide KYC data within a reasonable time. The Board and CEO are ultimately responsible for the bank’s operations taking necessary actions, for the bank’s internal rules complying with external regulatory requirements and that said rules are appropriate, well implemented and complied with in operations. T o ensure an efficient organisation is in place to prevent money laundering and terrorism financing, and to ensure compliance with applicable sanction regulations the bank has appointed the following roles and functions: Designated Supervisor, Central Function Manager, the AML and Anti Financial Crime function, and an authorised decision-maker for independent review. The latter is a senior officer of the bank tasked with developing, implementing and maintaining strate - gies, procedures and controls of an adequate standard to ensure the bank complies with applicable sanction regulations. Read more about Landshypotek Bank’s risks and risk management in Note 2. Management of relationships with suppliers ESRS G1-2 – Management of relationships with suppliers Any partner that the bank enters into legal agreements with must meet the requirements of the bank’s Code of Conduct for suppliers. It includes requirements in areas such as regulatory compliance, sustainability and IT security. A counterparty assessment must be performed prior to the bank entering an agreement with a supplier. The bank uses responses from the counterparty assess - ment to determine whether the counterparty can meet the bank’s requirements for suppliers. Political influence and lobbying activities ESRS G1-5 Political influence and lobbying activities Landshypotek is a member of several organisations, including the Swedish Bankers’ Association and the Federation of Swedish Farmers. The bank acts mainly through its membership of other organisations. In 2025, together with the Swedish Forestry Society (Föreningen Skogen), the bank arranged a seminar on how Swedish forestry owners are impacted by geopolitical concerns and various regulations. In December, the bank arranged an in-house seminar on how farmers are responding to society’s rising expectations. The bank also participated in seminars during Almedalen Week and at Borgeby Fältdagar on the use of fields and forests in Sweden. Additionally, the bank has engaged in various studies, such as on farming’s climate transition and financing possibilities for Swedish farming. Landshypotek Bank Annual Report 202591
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Landshypotek Bank Annual Report 2025 92 The bank updated its double materiality assessment in 2025. The goal of the double materiality assessment is to identify the bank’s material sustainability areas. Analysis of the bank’s impacts, risks and opportunities The bank assesses which impacts and which risks and opportunities exist within the various areas addressed by the topical standards in the original ESRS. The bank’s impacts (negative or positive, actual or potential) are assessed based on severity, scope, irremediable char - acter and likelihood. Severity, scope and irremedia - ble character are assessed on various scales from 0 to 5, and likelihood on a scale from 1 to 5. The bank is deemed to have a material impact on an area if it is important (3), significant (4) or critical (5) in combination with a likeli - hood that is high (4) or very high (5), leading to an overall assessment of significant or critical. Financial materiality Risks and opportunities are assessed based on the potential financial impact and likelihood of the risk or opportunity. Risks and opportunities are assessed based on the potential financial impact, if the risk or opportunity were to occur, on a scale from 1 to 5. An area deemed to be financially material if the financial impact is high (4) or very high (5) in combination with a likelihood that is high (4) or very high (5). The time period for the analysis of risks and opportunities The bank analyses risks and opportunities from different time horizons. For topical standards under the envi - ronmental section (E1-E5), the bank analyses risks and opportunities from a short-term perspective (2011– 2040) and a medium-term perspective (2041–2070). The bank has chosen these time horizons since climate- and environment-related risks are expected to have the greatest impact in the longer term. For other topical standards (S1 to S4 and G1), the bank applies shorter time horizons. The bank analyses risks and opportunities based on short-term (1–2 years), medium-term (3–4 years) and long-term (10+ years) perspectives, since risks and opportunities pertaining to own workforce and business conduct are significantly more acute in nature for the bank to manage. Dialogue with external stakeholders Previously, the bank held a dialogue with external stakeholders to obtain input for the work with the double materiality assessment (DMA). The DMA update focused primarily on the bank’s own assessments of impacts, risks and opportunities, and the bank did not engage in dialogue with external stakeholders when updating the DMA. Continued work with the double materiality assessment Pursuant to the requirements in the ESRS, the bank will annually review its double materiality assessment. Appendix 1 Execution of the double materiality assessment ESRS 2 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities Landshypotek Bank Annual Report 202592
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Landshypotek Bank Annual Report 2025 93 Management of risks linked to sustainability reporting The bank’s sustainability reporting entails a certain amount of risk arising from human error or incomplete data. The bank has implemented certain internal controls for the sustainability reporting processes in order to minimise these risks. The bank’s sustainability report is reviewed internally by various departments to ensure that the information is presented accurately. Data collec - tion from suppliers is reviewed against historic data to detect any discrepancies or gaps. The bank’s sustain - ability report is subject to review by the bank’s external auditors. Appendix 2 General information about the 2025 sustainability report 2025 SEK Climate Change Mitigation (CCM) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Total value Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which transitional Of which enabling Turnover 44,071,253,726 38.4% 1.92 0 0 0 38.4% 1.92% 0 0 0 CapEx 0 0 0 0 0 0 0 0 OpEx 0 0 0 0 0 0 0 0 2024 SEK Climate Change Mitigation (CCM) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Total value Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which transitional Of which enabling Turnover 39,897,000,000 35.9 1.87 0 0 0 35.9 1.87 0 0 0 CapEx 0 0 0 0 0 0 0 0 OpEx 0 0 0 0 0 0 0 0 T axonomy Landshypotek Bank Annual Report 202593
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Landshypotek Bank Annual Report 2025 94 Stockholm, 9 March 2026 Ann Krumlinde Hyléen Chairman Our auditor’s report was submitted on 9 March 2026 KPMG Dan Beitner Authorised Public Accountant Ole Laurits Lønnum Member Lars-Johan Merin Member Anders Nilsson Member/Employee Representative Johan Ericson CEO Lars Sjögren Member Petra Nilsson Member/Employee Representative Marita Odélius Member Johan Nordenfalk Member Elisabeth Beskow Member Signatures of the Board of Directors and CEO
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Landshypotek Bank Annual Report 2025 95 REPORT ON THE ANNUAL ACCOUNTS Opinions We have audited the annual accounts of Landshypotek Bank AB (publ) for the year 2025 except for the corporate gover - nance statement on pages 15–27 and the sustainability report on pages 77–93. The annual accounts of the company are included on pages 9–75 in this document. In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act for Credit Institutions and Securities Companies and present fairly, in all material respects, the financial position of Landshypotek Bank AB (publ) as of 31 December 2025 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act for Credit Institutions and Securities Companies. Our opinions do not cover the corporate governance statement on pages 15–27 nor the sustainability report on pages 77–93. The statutory administration report is consistent with the other parts of the annual accounts. We therefore recommend that the general meeting of share - holders adopts the income statement and balance sheet. Our opinions in this report on the annual accounts are con - sistent with the content of the additional report that has been submitted to the Audit Committee in accordance with the Audit Regulation (537/2014) Article 11. Basis for Opinions We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those stan - dards are further described in the Auditor’s Responsibilities section. We are independent of Landshypotek Bank AB (publ) in accordance with professional ethics for accountants in Swe - den and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. This includes that, based on the best of our knowledge and belief, no prohibited services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided to the audited company or, where applicable, its Parent Company or its controlled companies within the EU. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Key audit matters Key audit matters of the audit are those matters that, in our professional judgement, were of most significance in our audit of the annual accounts of the current period. These matters were addressed in the context of our audit of, and in forming our opinion thereon, the annual accounts as a whole, but we do not provide a separate opinion on these matters. Auditor’s report (Translation from the Swedish original) T o the general meeting of the shareholders of Landshypotek Bank AB (publ), corp. id 556500-2762 Description of the key audit matter The lending at Landshypotek Bank consists of credits secured by agriculture, forestry and housing, meaning loans secured by collateral in immovable property. The lending takes place in Sweden through the bank’s own channels. The bank’s loans to the public amounted to SEK 118,151 million (SEK 111,110 million) as of 31 December 2025, corresponding to 88.7 percent (89.4) of the bank’s total assets. The bank’s provisions for credit losses in the loan portfolio amounted to SEK 34.4 million (22). The credit loss provisions in the bank’s loan portfolio represent the bank’s best estimate of potential losses incurred in the loan portfolio as of the balance sheet date. When provisioning, the bank is required to make assessments and assumptions regarding credit risks and calculations for expected credit losses. The complexity of these calculations, as well as the assessments and assumptions made, leads us to view this as a particularly significant area. Response in the audit We have tested the bank’s key controls in the lending process, including credit decisions, credit review, rating classification and provisioning. We have also tested general IT controls, including access management for relevant systems. We have reviewed the bank’s principles based on IFRS 9 to assess whether the bank’s interpretation of these is reasonable. Furthermore, we have tested the bank’s key controls regarding the provisioning process. We have also sample tested the input data in the models and the accuracy of the calcula - tions, as well as evaluated management’s assessments. In our audit, we have used our internal model specialists to assist us in the audit procedures we have performed. We have assessed the disclosures presented in the annual report and whether the information is sufficiently comprehen - sive as a description of the bank’s assessments. Provision for credit losses See notes 9 and 14 as well as the accounting policies on pages 38–39 of the Annual Report for detailed information and a description of the area.
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Landshypotek Bank Annual Report 2025 96 Other information than the annual accounts This document also contains other information than the annual accounts and is found on pages 1–14, 77–93 and 99. The Board of Directors and the Managing Director are responsible for this other information. Our opinion on the annual accounts does not cover this other information and we do not express any form of assurance con - clusion regarding this other information. In connection with our audit of the annual accounts, our respon- sibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts. In this procedure we also take into account our knowl- edge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated. If we, based on the work performed concerning this information, conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors and the Managing Director The Board of Directors and the Managing Director are respon - sible for the preparation of the annual accounts and that they give a fair presentation in accordance with the Annual Accounts Act for Credit Institutions and Securities Companies. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error. In preparing the annual accounts, the Board of Directors and the Managing Director are responsible for the assessment of the company’s ability to continue as a going concern. They dis - close, as applicable, matters related to going concern and using the going concern basis of accounting. The going concern basis of accounting is however not applied if the Board of Direc - tors and the Managing Director intend to liquidate the company, to cease operations, or has no realistic alternative but to do so. The Audit Committee shall, without prejudice to the Board of Directors’ responsibilities and tasks in general, among other things oversee the company’s financial reporting process. Auditor’s responsibility Our objectives are to obtain reasonable assurance about whether the annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted audit- ing standards in Sweden will always detect a material misstate- ment when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these annual accounts. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the annual accounts, whether due to fraud or error, design and per- form audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of the company’s internal control relevant to our audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and the Managing Director. • Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going concern basis of accounting in preparing the annual accounts. We also draw a conclusion, based on the audit evidence obtained, as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the annual accounts or, if such disclosures are inadequate, to modify our opinion about the annual accounts. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the annual accounts, including the disclosures, and whether the annual accounts represent the underlying transactions and events in a manner that achieves fair presentation. Description of the key audit matter Landshypotek Bank AB’s financial instruments measured at fair value in the balance sheet. For some of these financial instruments, there are no current market prices available, which means that the fair value is determined using valuation tech - niques based on market information. These financial instruments, which are derivative contracts, are categorised as level 2 according to the valuation hierarchy in IFRS accounting standards and corresponded to assets valued at SEK 1,087 million (1,532) and liabilities at SEK 968 million (1,290). Derivative contracts comprise interest rate and currency swaps. The valuation of financial instruments at level 2 involves assessments by the company, as they are valued using models. Against this background, these financial instruments have been assessed as a particularly significant area. Response in the audit We have documented the Bank’s process for acquiring, valuing, and disposing of financial instruments. On a sample basis, we have verified the acquisition, accounting, valuation and disposal of the instruments. With the assistance of our internal valuation specialists, we have challenged the methods and assumptions used in the valuation. We have assessed the methods in the valuation models against industry practices and valuation guidelines. We have evaluated how the financial instruments are classified in the annual accounts, and whether the information in the disclosures is sufficiently comprehensive as a description of the company’s assessments. Valuation of Financial Instruments See notes 2, 12, 13, 15, 16, 23, 29, 30, 31 and 34 as well as the accounting policies on pages 36–38 of the Annual Report for detailed information and a description of the area.
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Landshypotek Bank Annual Report 2025 97 We must inform the Board of Directors of, among other matters, the planned scope and timing of the audit. We must also inform of significant audit findings during our audit, including any signif - icant deficiencies in internal control that we identified. We must also provide the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, mea - sures that have been taken to eliminate the threats or related safeguards. From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the annual accounts and consolidated accounts, including the most important assessed risks for material mis - statement, and are therefore the key audit matters. We describe these matters in the auditor’s report unless law or regulation precludes disclosure about the matter. REPORT ON OTHER LEGAL AND REGULA TORY REQUIREMENTS Opinions In addition to our audit of the annual accounts, we have also audited the administration of the Board of Directors and the Man- aging Director of Landshypotek Bank AB (publ) for the year 2025 and the proposed appropriations of the company’s profit or loss. We recommend to the general meeting of shareholders that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the Managing Director be discharged from liability for the financial year. Basis for Opinions We conducted the audit in accordance with generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibil - ities section. We are independent of Landshypotek Bank AB (publ) in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions. Responsibilities of the Board of Directors and the Managing Director The Board of Directors is responsible for the proposal for appropriations of the company’s profit or loss. At the proposal of a dividend, this includes an assessment of whether the dividend is justifiable considering the requirements which the company’s type of operations, size and risks place on the size of the company’s equity, consolidation requirements, liquidity and position in general. The Board of Directors is responsible for the company’s organisation and the administration of the company’s affairs. This includes among other things continuous assessment of the company’s and the group’s financial situation and ensuring that the company's organization is designed so that the accounting, management of assets and the company’s financial affairs otherwise are controlled in a reassuring manner. The Managing Director shall manage the ongoing administration according to the Board of Directors’ guidelines and instructions and among other matters take measures that are necessary to fulfil the company’s accounting in accordance with law and handle the management of assets in a reassuring manner. Auditor’s responsibility Our objective concerning the audit of the administration, and thereby our opinion about discharge from liability, is to obtain audit evidence to assess with a reasonable degree of assurance whether any member of the Board of Directors or the Managing Director in any material respect: • has undertaken any action or been guilty of any omission which can give rise to liability to the company, or • in any other way has acted in contravention of the Companies Act, the Banking and Financing Act, the Annual Accounts Act for Credit Institutions and Securities Companies or the Articles of Association. Our objective concerning the audit of the proposed appropri - ations of the company’s profit or loss, and thereby our opinion about this, is to assess with reasonable degree of assurance whether the proposal is in accordance with the Companies Act. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted auditing standards in Sweden will always detect actions or omissions that can give rise to liability to the company, or that the proposed appropriations of the company’s profit or loss are not in accordance with the Companies Act. As part of an audit according to generally accepted auditing standards in Sweden we exercise professional judgement and maintain professional scepticism throughout the audit. The examination of the administration and the proposed appropri - ations of the company’s profit or loss is based primarily on the audit of the accounts. Additional audit procedures performed are based on our professional judgement with starting point in risk and materiality. This means that we focus the examination on such actions, areas and relationships that are material for the operations and where deviations and violations would have particular importance for the company’s situation. We examine and test decisions undertaken, support for decisions, actions taken and other circumstances that are relevant to our opinion concerning discharge from liability. As a basis for our opinion on the Board of Directors’ proposed appropriations of the company’s profit or loss we examined whether the proposal is in accordance with the Companies Act. The auditor’s examination of the corporate governance statement The Board of Directors is responsible for the corporate gov - ernance statement on pages 15–27 having been prepared in accordance with the Annual Accounts Act. Our examination of the corporate governance statement is con - ducted in accordance with FAR’s auditing standard RevR 16 The auditor’s examination of the corporate governance statement. This means that our examination of the corporate governance statement is different and substantially less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinions. A corporate governance statement has been prepared. Dis - closures in accordance with chapter 6 section 6 the second paragraph points 2–6 of the Annual Accounts Act and chapter 7 section 31 the second paragraph the same law are consistent with the other parts of the annual accounts and are in accor - dance with the Annual Accounts Act for Credit Institutions and Securities Companies. KPMG AB, Box 382, 101 27, Stockholm, was appointed auditor of Landshypotek Bank AB (publ) by the general meeting of the shareholders on the 29 April 2025. KPMG AB or auditors oper - ating at KPMG AB have been the company’s auditor since 2024. Stockholm, 9 March 2026 KPMG AB Dan Beitner Authorised Public Accountant
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Landshypotek Bank Annual Report 2025 98 The Board of Directors is responsible for the sustaina - bility report on pages 77–93, and that it is prepared in accordance with the Annual Accounts Act in accordance with the older wording that applied prior to 1 July 2024. Our examination has been conducted in accordance with FAR´ s standard RevR 12 The auditor’s opinion regarding the statutory sustainability report. This means that our examination of the statutory sustainability report is different and substantially less in scope than an audit conducted in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. We believe that the examination has provided us with sufficient basis for our opinion. A statutory sustainability report has been prepared. The auditor’s opinion regarding the statutory sustainability report Stockholm 9 March 2026 KPMG AB Dan Beitner Authorized Public Accountant
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Landshypotek Bank Annual Report 2025 99 Addresses Landshypotek Bank AB Regeringsgatan 48 Box 14092 SE-104 41 Stockholm +46 (0)771-44 00 20 HEAD OFFICE Production: Wildeco Ekonomisk information. Images are sourced from Landshypotek Bank’s image bank, iStockPhoto and Adobe Stock. Customer Services +46 (0)771-44 00 20 Website landshypotek.se If you have questions about investments in Landshypotek, offers and services, or an individual banking commitment, please call Customer Service on +46 771 44 00 20. Customer Service can also be reached via chat on www.landshypotek.se or through secure messages on the online bank. Applications for mortgage and first lien mortgages should use the digital application on www.landshypotek.se. facebook.com/landshypotek instagram.com/landshypotekbank Falkenberg T orsholmsvägen 3 SE-311 23 Falkenberg Gävle Vågskrivargatan 5 SE-803 20 Gävle Gothenburg Fabriksgatan 13 Box 5047 SE-402 21 Gothenburg Härnösand Universitetsbacken 1 SE-871 31 Härnösand Jönköping Huskvarnavägen 80 SE-554 54 Jönköping Kalmar Husängsvägen 2 Box 833 SE-391 28 Kalmar Karlstad Älvgatan 1 SE-652 25 Karlstad Kristianstad Krinova Science Park Stridsvagnsvägen 14 SE-291 39 Kristianstad Linköping Vasavägen 5 Box 114 SE-581 02 Linköping Ljungby Kånnavägen 40 SE-341 31 Ljungby Lund Stora Södergatan 8B Box 1017 SE-222 23 Lund Norrköping Åsgöts väg 4 SE-605 92 Norrköping Nyköping Hospitalsgatan 26 SE-611 31 Nyköping Skara Klostergatan 15 SE-532 21 Skara Skellefteå Stationsgatan 21 SE-931 29 Skellefteå Stockholm Regeringsgatan 48 Box 14092 SE-104 41 Stockholm Sundsvall Universitetsallén 32 SE-851 71 Sundsvall Uppsala Bolandsgatan 15 G SE-753 23 Uppsala Visby Kopparviksgatan 9 Box 1102 SE-621 22 Visby Växjö Kungsgatan 5 Box 1205 SE-351 12 Växjö Örebro Gustavsviksvägen 7 SE-702 30 Örebro Östersund Armégränd 5 SE-831 32 Östersund REGIONAL OFFICES
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Visiting address: Regeringsgatan 48, Postal address: Box 14092, SE-104 41 Stockholm, Tel: +46 (0)771-44 00 20 E-mail: kundservice@landshypotek.se See www.landshypotek.se