Länsförsäkringar Bank: January-September 2024

”The inflation concerns that have impacted the market for most of the year have subsided and been replaced by a focus on growth. In Sweden, inflation has fallen significantly and is now below the Riksbank’s target of 2%, which led to further cuts to the policy rate during the third quarter and clear communication that more rate cuts can be expected. Lower interest rates will hopefully result in an upturn in the economy moving forward. At the same time, geopolitical instability and uncertainty surrounding the US election continued to be felt around the world.

In September, the Swedish Quality Index published its annual customer satisfaction survey for banks, and we are pleased to announce that among retail customers, we have the highest customer satisfaction of the companies listed. We are convinced that this is one of the reasons why we have been able to successfully continue growing our banking operations. In mortgages, we are continuing our success, and as of August we were the bank that had captured the second largest share of this year’s market growth. In savings, another quarter with a strong fund net inflow was posted, which was partly due to successful management and a popular fund range.

Our total business volumes now amount to SEK 1,000 billion for the first time, which is of course a milestone for us. This shows that customers continue to appreciate our offering and Länsförsäkringar’s strong local presence. The healthy growth in our business is also reflected in our continued stable earnings. The trend in net commission income was strong and is continuing to diversify our income and largely offsetting our lower net interest income.

Our credit quality remains very high and our overall financial position is strong.
We are maintaining a fast pace of development and continuously working to ensure that we have a relevant and attractive offering for our customers. During the quarter, we continued the important work of strengthening customer protection and combating fraud. I am very proud of the efforts of our employees both at the bank and locally.

In the continued uncertain global situation, it is reassuring that we are a bank with low risks and a strong local profile, close to customers and with roots in non-life insurance, and we stand strong and can devote our full attention to supporting our customers.”, says Sven Eggefalk, President of Länsförsäkringar Bank

The period in brief, Group:

• Operating profit rose 11% to SEK 1,884 M (1,703) and the return on equity amounted to 9.0% (8.6).
• Net interest income declined 5% to SEK 4,980 M (5,232).
• Net commission income, excluding remuneration to the regional insurance companies, increased 20% to SEK 1,273 M (1,060).
• Operating income increased 8% to SEK 4,309 M (4,005).
• Operating expenses increased 2% to SEK 1,967 M (1,935), including VAT of SEK 176 M recovered in Wasa Kredit in the second quarter. Excluding this non-recurring item, expenses increased 11%.
• Credit losses amounted to SEK 161 M (73), net, corresponding to a credit loss level of 0.05% (0.02), most of which derived from Wasa Kredit.
• Operating profit was impacted by fees levied of SEK 298 M (293) during the period, of which risk tax comprised SEK 194 M (190).
• Business volumes increased 16% to SEK 1,000 billion (864).
• Lending increased 5% to SEK 398 billion* (378).
• Deposits increased 2% to SEK 152 billion (150).
• Fund volumes increased 34% to SEK 450 billion (336).
• The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 15.4% (15.0**) on 30 September 2024.

Figures in parentheses pertain to the same period in 2023.
*  Loans to the public excluding deposits with the Swedish National Debt Office and similar items.

** Refers to 30 June 2024.
 

Read more

https://www.lansforsakringar.se/financial-bank/

For further information, please contact:
 

Sven Eggefalk, President Länsförsäkringar Bank AB,

+46 (0)8 588 414 37, +46 (0)70 240 47 04

Martin Rydin, CFO Länsförsäkringar Bank AB,

+46 (0)8 588 412 79, +46 (0)73 964 28 23

Andreas Larsson, Head of Investor Relations Länsförsäkringar Bank AB,

+46 (0)10 498 70 29, +46 (0)720 84 36 34

This report contains such information that Länsförsäkringar Bank AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication on 22 October 2024 at 12:00 p.m. CET.

The Länsförsäkringar Alliance is comprised of 23 local and customer-owned regional insurance companies and the jointly owned Länsförsäkringar AB. Customers are provided with a complete offering of banking and life and non-life insurance services through their local, regional insurance companies. We offer animal and crop insurance through Agria Djurförsäkring, total solutions for reliable mortgage transactions through Länsförsäkringar Fastighetsförmedling, and financing services such as leasing, instalment payments, and loans through Wasa Kredit.

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