Interim Report January - June 2010

 “Net interest income in the second quarter of 2010 was the strongest since the fourth quarter of 2008. Margins and yields on shareholders’ equity improved on the preceding quarter. Länsförsäkringar is growing in the retail mortgage market and the  market position was strengthened as a result of a competitive offering and customer trust.
Credit quality was excellent with a low percentage of impaired loans and recoveries that exceeded net loan losses. The liquidity and refinancing situation was strong. Länsförsäkringar is well poised ahead of the forthcoming regulatory changes for banks and mortgage institutions,” says Anders Borgcrantz, President of Länsförsäkringar Hypotek AB. 

The period in brief

• Loans to the public rose 21% to SEK 74 billion (61).
• Operating profit decreased 29% to SEK 61 M (86).
• Net interest income declined 6% to SEK 161 M (171).
• Net interest income for the second quarter rose 14% to SEK 93 M (82).
• Net loan losses amounted to recoveries of SEK 3 M (5), net, since recoveries exceeded net loan losses.
• The Tier 1 ratio according to Basel II was 18.0% (18.2) and the capital adequacy ratio was 20.5% (23.1).
• Covered bonds in the nominal amount of SEK 30 billion (25) were issued during the period, which extended the duration of the borrowing portfolio.
• The number of customers rose 14 percent to 143,000 (125,000).

Figures in parentheses pertain to the same period in 2009. 

The full report is available attached.

For further information please contact: 

Anders Borgcrantz, President, Länsförsäkringar Hypotek AB
Phone: +46 8 588 412 51, +46 73 964 12 51
anders.borgcrantz@lansforsakringar.se

Göran Laurén, Deputy for the President and CFO, Länsförsäkringar Hypotek AB
Phone: +46 8 588 410 73, +46 73 964 10 73
goran.lauren@lansforsakringar.se

Christer Baldhagen, Director of Corporate Communications Länsförsäkringar AB
Phone: +46 8-588 415 01, +46 70 579 70 66
christer.baldhagen@lansforsakringar.se 

lansforsakringar.se/financialhypotek 

The Länsförsäkringar Alliance comprises 24 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.