Year-end report 2017
”Once again, we report strong earnings and can summarise 2017 as the best year in the bank’s history. Net interest income trended favourably during the year and the credit quality of the loan portfolio remains high. Business volumes reported healthy growth and market the position improved in all segments. For the 12th time in the past 14 years, Länsförsäkringar Bank is the single player on the bank market with the most satisfied retail customers. In addition, it is highly gratifying to state that we now also have the most satisfied corporate customers as well as the most satisfied mortgage and property-loan customers according to the 2017 Swedish Quality Index. The continued high customer inflow is ultimately confirmation that customers appreciate our offering. We firmly believe that the combination of our strong local presence and our market-leading digital services will continue to create the conditions for high customer satisfaction and additional inflows of new customers in 2018.” says Anders Borgcrantz, President of Länsförsäkringar Bank.
The year in brief, Group
- A number of organisational changes were made on 1 January 2017 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 9% to SEK 1,599 M (1,467) and the return on equity amounted to 10.0% (10.1).
- Net interest income increased 15% to SEK 3,996 M (3,464).
- Operating income increased 12% to SEK 3,258 M (2,904).
- Operating expenses amounted to SEK 1,601 M (1,399).
- Loan losses amounted to SEK 57.7 M (37.6*), net, corresponding to a loan loss level of 0.02% (0.02).
- Business volumes increased 14% to SEK 519.5 billion (456.1).
- Deposits rose 9% to SEK 99.4 billion (91.2). Lending increased 15% to SEK 261.4 billion (226.7).
- The Common Equity Tier 1 capital ratio for the consolidated situation amounted to 23.3% (23.4**) on 31 December 2017.
- The number of customers with Länsförsäkringar as their primary bank rose 11% and the number of cards increased 13%.
- According to the 2017 Swedish Quality Index customer satisfaction survey, Länsförsäkringar Bank is the single player on the bank market with the most satisfied retail and corporate customers. Länsförsäkringar Bank also has the most satisfied mortgage customers and corporate customers for property loans according to the 2017 Swedish Quality Index.
Figures in parentheses pertain to the same period in 2016.
* The comparative figure includes the dissolution of reserves amounting to SEK 23.3 M.
** Pertains to 30 September 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)72-310 00 80
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.