Interim Report January - June 2010

“Operating profit for the second quarter was the bank’s best to date and was attributable to strong net interest income. Increased business volumes and growing market shares reinforced the position as the fifth largest retail bank and fifth largest agricultural bank. Länsförsäkringar also has Sweden’s most satisfied bank customers in the retail market. Our offering is strong and the number of customers, the number of bank products per customer and the number of insurance customers who also become bank customers are continuously growing. Credit quality remained favourable with a low percentage of impaired loans and a low level of net loan losses. The liquidity and financing situation was favourable. Länsförsäkringar is well poised ahead of the forthcoming regulatory changes for banks,” says Mats Ericsson, President of Länsförsäkringar Bank AB. 

The period in brief

• Operating profit rose 10% to SEK 146 M (133).
• Operating income increased 5% to SEK 663 M (633).
• Net interest income rose 5% to SEK 614 M (583).
• Operating expenses were up 3% to SEK 486 M (471).
• Second-quarter net interest income increased 13% to SEK 324 M (287) and operating expenses declined 1% to SEK 251 M (254).
• Business volumes increased 17% to SEK 214 billion (184).
• Loan losses remained low amounting to SEK 31 M (28), net, corresponding to a net loan loss level of 0.06% (0.06).
• The Tier 1 ratio according to Basel II was 11.6% (12.4) and the capital adequacy ratio was 13.4% (15.0).
• The number of customers rose 9% to 793,000 (730,000) and the number of bank cards increased 22% to 247,000 (202,000).
• 89% (85) of household financing customers are also customers of Länsförsäkringar’s non-life insurance and/or life assurance operations. 

Figures in parentheses pertain to the same period in 2009. 

The full report is available attached.

For further information please contact:
Mats Ericsson, President, Länsförsäkringar Bank AB
Phone: +46 8 588 409 63, +46 73 964 09 63
mats.ericsson@lansforsakringar.se
Anders Borgcrantz, Deputy for the President and CFO, Länsförsäkringar Bank AB
Phone: +46 8 588 412 51, +46 73 964 12 51
anders.borgcrantz@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/financialbank