Länsförsäkringar Bank: Interim report January-September 2010

 “For the sixth time, Länsförsäkringar has Sweden’s most satisfied bank customers in the retail market, according to the Swedish Quality Index 2010, and we are proud of this acclaim. Nearly nine of ten customers, who have Länsförsäkringar as their principal bank, also have non-life or endowment insurance with Länsförsäkringar, which shows that our strategy works and is successful. Länsförsäkringar Bank produced the best results to date, with strong net interest income and improved profitability. During the third quarter, business volumes increased and we strengthened our position as the fifth largest retail bank. Credit quality in the loan portfolio remains favourable and refinancing activities have been fully functioning. Liquidity is strong and we are well equipped for the future,” says Mats Ericsson, President of Länsförsäkringar Bank AB. 

The period in brief

• According to the Swedish Quality Index 2010, Länsförsäkringar once again has Sweden’s most satisfied bank customers in the retail market.
• Operating profit rose 27% to SEK 248 M (196).
• Net interest income rose 14% to SEK 973 M (857).
• Third-quarter net interest income increased 31% to SEK 359 M (274) and operating expenses declined 2% to SEK 234 M (239).
• Business volumes increased 16% to SEK 223 billion (193).
• Loan losses remained low and amounted to SEK 50 M (45), net, corresponding to a loan loss level of 0.06% (0.06).
• The Tier 1 ratio according to Basel II was 11.8% (12.7) and the capital adequacy ratio was 13.6% (15.1).
• The number of customers rose 9% to 807,000 (743,000) and the number of bank cards increased 21% to 256,000 (211,000).
• The number of customers with Länsförsäkringar as their principal bank increased 20% to 215,000 (179,000) and the number of products per customer is increasing. 

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 

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.