Länsförsäkringar Bank: Year-end report 2006
“2006 was a successful year for Länsförsäkringar’s bank operations. We are continuing to grow and maintain profitability and efficiency at the same time as we have retained highly satisfied customers. Customer confidence is based on the company’s strong contribution, as a challenger, to intensifying competition through improved conditions and attractive prices, particularly in the mortgage market. Our ambition is to be among the major players in the mortgage loan market within three years. In 2007, we will continue to challenge by focusing on the best for the customer”, says Tomas Johansson, President of Länsförsäkringar Bank.
Summary:
*Operating income amounted to SEK 238 M (203) before loan losses and to SEK 201 M (154) after loan losses. Income includes a nonrecurring gain of SEK 23 M resulting from the sale of receivables previously written off in Wasa Kredit.
*Revenue was up 6% to SEK 1,025 M (971) and administration expenses increased by 2% to SEK 787 M (769). Administration expenses include a nonrecurring item of SEK 13 M attributable to pension provisions.
*Net interest income rose by 6% to SEK 922 M (873).
*The cost/income ratio declined to 0.77 (0.79).
*Loan losses remained low, amounting to SEK 37 M (49).
*An unconditional shareholder contribution totaling SEK 300 M was received.
*Return on equity after standard tax was 4.6% (4.1).
*Lending to the public increased by 14% to SEK 54 billion (47).
*Deposits from the public rose 15% to SEK 24 billion (21).
*Mortgage lending by the subsidiary Länsförsäkringar Hypotek rose by 18% to SEK 37 billion (31).
*Assets under management in mutual funds increased to SEK 62 billion (54).
*The number of customers increased from 593,000 to 604,000.
*Länsförsäkringar continues to have highly satisfied bank and mortgage customers in the private banking market, according to the 2006 edition of the Swedish Quality Index (SQI).
Figures in parentheses pertain to 2005.
Find the full report at www.lansforsakringar.se/reports
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