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Länsförsäkringar Bank: Interim Report January - June 2015

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”Länsförsäkringar Bank continued to report a strong performance with increased business volumes in all product segments and a favourable trend in operating profit, driven by strong net interest income and solid cost control. Growth in lending remains characterised by high credit quality and loan losses are very low. However, it is important that the macroeconomic risks related to household indebtedness are managed and we welcome additional initiatives that could result in a stronger amortization culture. We remain at the forefront regarding digital solutions and Länsförsäkringar Bank was the first bank in Sweden to launch a banking service for the Apple Watch and Android Watch during the quarter” says Rikard Josefson, President of Länsförsäkringar Bank.

The year in brief, Group

  • Operating profit Operating profit increased 31% to SEK 559 M (428) and the return on equity strengthened to 8.8% (8.0).
  • Net interest income increased 17% to SEK 1,411 M (1,208).
  • Operating income increased 13% to SEK 1,323 M (1,168).
  • Operating expenses excluding impairment increased 6% to SEK 733 M (690).
  • Loan losses amounted to SEK 0 M (–23), net, corresponding to loan losses of 0.00% (–0.03).
  • Business volumes increased 13% to SEK 378.2 bn (334.2).
  • Deposits increased 8% to SEK 78.3 bn (72.8).
  • Lending increased 14% to SEK 191.2 bn (167.2).
  • The Core Tier 1 ratio amounted to 19.9% (15.4*) on 30 June 2015.
  • In June, Länsförsäkringar Bank issued an Additional Tier 1 Capital loan (AT1) in SEK of a nominal SEK 1.2 bn.
  • Länsförsäkringar Bank’s rating for long-term funding from Moody’s was upgraded to A1 and for short-term funding to P-1.
  • The Bank Group received permission from the Swedish Financial Supervisory Authority to change its IRB model and change the limit for retail exposures.

Figures in parentheses pertain to the same period in 2014.*Pertains to 31 March 2015.  

http://www.lansforsakringar.se/stockholm/om-oss/in-english/financial-reports/lansforsakringar-bank/

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

Frida Adrian, Investor Relations Manager, Länsförsäkringar Bank AB,
+46 (08)-588 403 52, +46 (0)73-867 43 84

 
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.

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Q2 Länsförsäkringar Bank Q2 2015

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