Länsförsäkringar Bank: Year-end report 2016

”It is very pleasing to conclude that the positive performance of the bank continued during the fourth quarter and we can once again report our best ever results in the bank’s 20th year of operations. Business volumes increased in all product segments and the profitability of the business improved. Lending growth remained high, with continued high credit quality and low loan losses. Our capitalization is strong, while we are maintaining a highly favorable liquidity situation. We are strengthening our position in the bank market with an increased number of customers and are the fifth largest retail bank in Sweden. The combination of our strong local presence, our market-leading digital services and personal customer meetings again resulted in Länsförsäkringar Bank having the most satisfied retail bank customers according to the Swedish Quality Index (SKI 2016).” says Rikard Josefson, President of Länsförsäkringar Bank.

The year in brief, Group

  • Operating profit increased 25% to SEK 1,467 (1,175) and the return on equity strengthened to 10.1% (8.9).
  • Net interest income increased 15% to SEK 3,455 M (2,994).
  • Operating income increased 12% to SEK 3,073 M (2,747).
  • Operating expenses amounted to SEK 1,568 M (1,566).
  • Loan losses amounted to SEK 37.6 M (6.1)*, net, corresponding to a loan loss level of 0.02% (0.00).
  • Business volumes increased 13% to SEK 455.1 billion (404.3).
  • Deposits increased 9% to SEK 91.2 billion (83.9).
  • Lending increased 12% to SEK 226.7 billion (202.0).
  • The Common Equity Tier 1 capital ratio for the consolidated situation amounted to 21.2% (20.8**) on 31 December 2016.
  • The number of customers with Länsförsäkringar as their primary bank rose 11% to 419,000 (378,000), and the number of bank cards increased 11% to 517,000 (466,000).
  • According to the Swedish Quality Index’s (SKI) 2016 customer satisfaction survey, Länsförsäkringar Bank has Sweden’s most satisfied retail bank customers.
  • Länsförsäkringar Bank was awarded “Mobile Bank of the Year” at Mobilgalan and “Best Mobile Site and App” at the Web Service Award in 2016.

*) Includes the dissolution of reserves of SEK 23.3 M (60.0).
**) Pertains to 30 September 2016.

Figures in parentheses pertain to the same period in 2015.  


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

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.


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