Länsförsäkringar Bank: Interim Report January-March 2017
”Länsförsäkringar Bank is continuing to perform positively with strong net interest income and good underlying cost control. The Bank Business Service unit and the Economic Research Department were transferred from the Parent Company to the Bank Group during the quarter. In addition, three managers were employed at Länsförsäkringar Fondförvaltning to manage internally managed funds. The number of employees increased by 116 individuals. Business volumes are continuously increasing in all areas and the growth of the loan portfolio remained favourable with high credit quality. The healthy customer inflow is confirmation that customers appreciate the combination of our local presence and focus on customer meetings combined with our market-leading digital services. Our market shares are continuing to increase in both household deposits and mortgages. We are consolidating our position as the leading bank in digital services and in January, we won the Web Service Award for “Best Mobile Site and App” for the second consecutive year.” says Rikard Josefson, President of Länsförsäkringar Bank.
The period in brief, Group
- A number of organisational changes were made during the period whereby operations 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 3% to SEK 352.5 M (340.9) and the return on equity amounted to 9.1% (9.7).
- Net interest income increased 19% to SEK 940.0 M (790.7).
- Operating income increased 7% to SEK 753.8 M (701.4).
- Operating expenses rose 13% to SEK 386.2 M (340.4).
- Loan losses amounted to SEK 15.1 M (20.2), net, corresponding to a loan loss level of 0.03% (0.04).
- Business volumes increased 16% to SEK 467.5 billion (404.5).
- Deposits increased 9% to SEK 91.9 billion (84.5). Lending increased 13% to SEK 232.2 billion (206.0).
- The Common Equity Tier 1 capital ratio for the consolidated situation amounted to 20.6% (21.2*) on 31 March 2017.
- The number of customers with Länsförsäkringar as their primary bank rose 11%. The number of bank cards increased 12%.
*) Refers to December 31 2016.
Figures in parentheses pertain to the same period in 2016.
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
Martin Rydin, Vice Executive President, 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.