Interim Report January-June 2017
”It is gratifying to see that the bank’s solid performance is continuing and we are capturing further market shares within both savings and lending. Business volumes are growing in all product segments and the earnings trend remains favourable with net interest income performing strongly and with low loan losses. We firmly believe that the combination of our strong local presence and our leading digital services forms the basis of our success and creates the conditions for continued inflows of new customers and high customer satisfaction. Accordingly, we are continuing to make investments to safeguard our position as the leading bank in digital services. The Swedish economy is continuing to perform well despite risks related to rising housing prices. Additional measures for limiting risk are being discussed and in this context is it important to first ensure that such action will not negatively affect how the housing market operates.” says Anders Borgcrantz, President of Länsförsäkringar Bank.
The period in brief, Group
- A number of organisational changes were made on 1 January 2017 wherebyoperations were transferred from the Parent Company, Länsförsäkringar AB, to the Bank Group. A total of 116 full-time employees joined the Bank Group.
- Operating profit increased 6% to SEK 737.3 M (697.2) and the return on equity amounted to 9.5% (9.8).
- Net interest income increased 18% to SEK 1,911 M (1,618).
- Operating income increased 10% to SEK 1,557 M (1,422).
- Operating expenses rose 15% to SEK 798.8 M (692.3).
- Loan losses amounted to SEK 21.0 M (32.5), net, corresponding to a loan loss level of 0.02% (0.03).
- Business volumes increased 15% to SEK 486.4 billion (422.4).
- Deposits increased 11% to SEK 97.1 billion (87.6). Lending increased 14% to SEK 242.2 billion (213.0).
- The Common Equity Tier 1 capital ratio for the consolidated situationamounted to 22.8% (20.6%*) on 30 June 2017.
- The number of customers with Länsförsäkringar as their primary bank rose 10% and the number of bank cards increased 11%.
Figures in parentheses pertain to the same period in 2016.
* Refers to 31 March 2017.
For further information please contact:
Anders Borgcrantz, President, Länsförsäkringar
Bank AB, +46 (0)8-588 412 51, +46 (0)73-964 12 51
Martin Rydin, CFO, Länsförsäkringar Bank AB,
+46 (0)8-588 412 79, +46 (0)73-964 28 23
Stefan Karkamanis, Investor Relations, Länsförsäkringar Bank AB
+46 (0)8-588 402 90, +46 (0)72-147 22 93
The Länsförsäkringar Alliance comprises 23 local and customer-owned regional insurance companies and the jointly owned Länsförsäkringar AB. Customers are provided with a complete offering of banking and insurance services through their local, regional insurance companies. We offer animal and crop insurance through Agria Djurförsäkring and total solutions for reliable mortgage transactions are offered through Länsförsäkringar Fastighetsförmedling.