Länsförsäkringar Bank: Interim report January-March 2013

”Länsförsäkringar is growing in its entire banking business. We strengthened our market position in deposits. The loan portfolio, which largely comprises mortgages for private individuals’ homes and first-lien mortgages to the agricultural sector, continues to maintain high credit quality. The capital situation strengthened during the quarter by the bank receiving a conditional shareholders’ contribution and by the issue of a subordinated loan. Funding was successful during the period and the liquidity situation is strong”, says Rikard Josefson, President of Länsförsäkringar Bank.

The period in brief, Group

  • Net interest income increased 13% to SEK 544 M (482).
  • Loan losses remained very low and amounted to SEK 33 M (26), corresponding to unchanged loan losses of 0.08%.
  • Operating profit rose 4% to SEK 136 M (131) and the return on equity amounted to 5.9% (6.2).
  • Business volumes rose 13% to SEK 290 billion (258).
  • Deposits increased 19% to SEK 63 billion (53).
  • Lending rose 13% to SEK 152 billion (135).
  • The Core Tier 1 ratio according to Basel II amounted to 13.6% (11.5). The Tier 1 ratio according to Basel II was 14.1% (12.1) and the capital adequacy ratio according to Basel II was 18.3% (14.0).
  • The number of customers increased 7% to 964,000 (904,000), the number of bank cards rose 14% to 357,000 (314,000) and the number of deposit accounts increased 14% to 1,234,000 (1,081,000).

Figures in parentheses pertain to the comparable period 2012.

The full report

For further information please contact:

Rikard Josefson, President, Länsförsäkringar Bank AB,
+46 (0)8-588 410 75, +46 (0)70-206 69 55

Anders Borgcrantz, Executive Vice President and CFO, Länsförsäkringar
Bank AB, +46 (0)8-588 412 51, +46 (0)73-964 12 51

Anna-Lena Löfvenberg, Investor Relations, Länsförsäkringar Bank AB,
+46 (0)8-588 415 16, +46 (0)73-964 15 16

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.

About Us

Länsförsäkringar is Sweden’s only customer-owned and locally established banking and insurance group. The customers in each of the counties in the country own their local and independent regional insurance company. The 23 regional bank and insurance companies cooperate in the jointly owned Länsförsäkringar AB, which conducts development and provides services within banking, life assurance, non-life insurance and animal insurance. Länsförsäkringar offers a broad range of insurance and banking services for individuals, companies and farming. All companies within the Länsförsäkringar Alliance are environmentally certified in accordance with ISO 14001.