Länsförsäkringar Bank: Interim report January-March 2007

” We are the challenger on the Swedish bank market. Our primary focus remains directed toward growth. This could be either organic or structural growth as a means to establish an ever more distinct position for Länsförsäkringar as a challenger and price-pressure force in the Swedish market. The positive trend will continue also in 2007. The upgrade in our credit rating by the rating institutes is an excellent example of this and our mortgage loan activities have made a clear impression on both customers and competitors. Our ambition is to be one of the three largest players in the mortgage market within the next few years”, says Tomas Johansson, President Länsförsäkringar Bank.

Summary

>Operating income amounted to SEK 66 M (53) before loan losses and to SEK 54 M (39) after loan losses.
>Revenue was up 7% to SEK 259 M (243) and administration expenses increased by 2% to SEK 193 M (190).
>Net interest income rose by 6% to SEK 234 M (220).
>The cost/income ratio declined to 0.75 (0.78).
>Loan losses remained low, amounting to SEK 12 M (14).
>Return on equity after standard tax was 4.7% (3.7).
>Lending to the public increased to SEK 56 billion (49) and deposits from the public rose 13% to SEK 25 billion (22).
>Fund volumes rose to SEK 65 billion (58).
>Mortgage lending by the subsidiary Länsförsäkringar Hypotek rose by 18% to SEK 38 billion (32). >Sales in March doubled compared with March 2006.
>On March 23, the Swedish Financial Supervisory Authority (Finansinspektionen) approved the subsidiary Länsförsäkringar Hypotek’s application for a license to issue covered bonds.
>A two-year housing bond was issued on March 9.
>During the period, Standard & Poor’s and Moody’s upgraded the bank’s rating.

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


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