Länsförsäkringar Bank: Interim Report January - June 2018
”Länsförsäkringar Bank continued to perform positively and business volumes increased in all segments. Growth was stable while the credit quality of the loan portfolio remained high with very low credit losses. The inflow of new customers was steady, which is confirmation that customers value Länsförsäkringar’s offering, as can be clearly seen in the sustained high customer satisfaction level. Our market shares continued to increase in both household deposits and mortgages and we strengthened our position as the fifth largest retail bank in Sweden. The bank is currently in an intense IT development phase that will provide opportunities in the future to further scale up the development of the digital offering. The Swedish economy continued to perform well and we see that the housing market is now more stable, which is advantageous for our business model with clear local presence and close customer relationships combined with smart digital solutions.”, says Sven Eggefalk, President of Länsförsäkringar Bank.
The period in brief, Group
- Operating profit increased 20% to SEK 888.2 M (737.3) and the return on equity amounted to 10.3% (9.5).
- Net interest income rose 15% to SEK 2,193 M (1,911).
- Operating income increased 16% to SEK 1,811 M (1,557).
- Operating expenses rose 9% to SEK 873.7 M (798.8).
- Credit losses amounted to SEK 49.0 M (21.0), net, corresponding to a credit loss level of 0.04% (0.02).
- Business volumes increased 13% to SEK 551.4 billion (486.4).
- Deposits rose 8% to SEK 104.4 billion (97.1). Lending increased 14% to SEK 275.8 billion (242.2).
- The Common Equity Tier 1 capital ratio for the consolidated situation amounted to 24.7% (22.7%*) on 30 June 2018.
- Länsförsäkringar Bank received a shareholders’ contribution of SEK 800 M from the Parent Company Länsförsäkringar AB during the period.
- The number of customers with Länsförsäkringar as their primary bank rose 12% and the number of bank cards increased 13%.
Figures in parentheses pertain to the same period in 2017.
* Refers to 31 March 2018.
For further information, please contact:
Sven Eggefalk, President Länsförsäkringar Bank AB
+46 (0)8-588 414 37, +46 (0)70-240 47 04
Anders Borgcrantz, CFO, Länsförsäkringar Bank AB,
+46 (0)8-588 412 51, +46 (0)73-964 12 51
Martin Rydin, Head of Treasury 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)72-310 00 80
The Länsförsäkringar Alliance is comprised of 23 local and customer-owned regional insurance companies and the jointly owned Länsförsäkringar AB. Customers are provided with a complete offering of banking and life and non-life insurance services through their local, regional insurance companies. We offer animal and crop insurance through Agria Djurförsäkring, total solutions for reliable mortgage transactions through Länsförsäkringar Fastighetsförmedling, and financing services such as leasing, instalment payments, and loans through Wasa Kredit.