Länsförsäkringar Bank: Interim report January-June 2007

“We are continuing to act aggressively in the Swedish banking market and are growing in all areas.
Our earnings and our key figures are continuously improving. We have experienced a major boost
in mortgage transactions and are now capturing more than 11% of new lending, which is an important
step in our ambition to be one of the three largest mortgage companies. Moody’s and Standard & Poor’s gave our covered bonds the highest possible rating in June and the bonds were subsequently issued with great success. The rating is an important sign of the stability, quality and the long-term approach of our operations. Our fund volumes are growing substantially. All of these factors further enhance our competitiveness and give us the strength to continue to challenge and offer customers high levels of service, attractive prices and favorable terms”, says Tomas Johansson, President of Länsförsäkringar Bank.


Operating income amounted to SEK 133 M (112) before loan losses and
SEK 112 M (83) after loan losses, an increase of 35%.
Revenue was up 7% to SEK 527 M (493).
Net interest income rose by 8% to SEK 480 M (445).
Operating expenses increased by 3% to SEK 394 M (381).
The cost/income ratio declined to 0.75 (0.77).
Loan losses remained low, amounting to SEK 21 M (29).
Return on equity after standard tax was 4.8% (3.8).
Lending to the public increased 19% to SEK 60 billion (51) and deposits
from the public rose 20% to SEK 27 billion (23).
Mortgage lending by the subsidiary Länsförsäkringar Hypotek rose by 23% to
SEK 42 billion (34). The market share of new lending in the mortgage market
was slightly more than 11% as of June 30.
The covered bonds in the subsidiary Länsförsäkringar Hypotek received the
highest possible credit rating by both Moody’s and Standard & Poor’s.
The number of customers rose to 652,000 (594,000).

Figures in parentheses pertain to January – June 2006.
All comparative figures have been restated in accordance with IFRS.

The full report is attached to this pressrelease.

For further information, contact:

Tomas Johansson,
President, Länsförsäkringar Bank AB
+46 (0)8-588 419 82
+46 (0)73-96 419 82

Anders Borgcrantz,
CFO, Länsförsäkringar Bank AB
+46 (0)8-588 412 51
+46 (0)73- 96 412 51

Dag Rosander,
Press Officer, Länsförsäkringar AB
+46 (0)8-588 414 99
+46 (0)73-96 414 99

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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