Länsförsäkringar Bank: Year-end report 2019

”In summary, 2019 was another good year for Länsförsäkringar Bank. We are delighted to state that we remain the player with Sweden’s most satisfied bank customers according to the Swedish Quality Index. The solid performance of the business is continuing and our position as one of the leading retail banks in Sweden was further strengthened. Growth in business volumes for the year was high, whilst maintaining a healthy balance between savings and lending. Our market shares are continuously increasing, which is confirmation that we are a natural choice for customers in an ever more competitive market, but also a clear reflection of the tremendous work done by regional insurance companies, where our strong local presence is generating favourable results. Coupled with our strategy of being a leading player in the digital arena, we believe that this is one of the main reasons for the constant high level of customer satisfaction. During the year, we successfully implemented a new core banking system and launched our Open Banking platform. Going forward, this gives us greater ability to meet customers in the digital arena and opens more opportunities for developing the digital banking services of the future to continuously create security and added value for our customers”, says Sven Eggefalk, President of Länsförsäkringar Bank.

The year in brief, Group

• Operating profit amounted to SEK 1,893 M (1,510) and the return on equity amounted to 9.5% (8.3).
• Net interest income rose 3% to SEK 4,617 M (4,497).
• Operating income increased 6% to SEK 4,027 M (3,783).
• Operating expenses amounted to SEK 1,926 M (2,178).
• Credit losses amounted to SEK 207.2 M (94.7), net, corresponding to a credit loss level of 0.06% (0.04).
• Business volumes increased 17% to SEK 656.0 billion (561.3).
• Deposits rose 10% to SEK 119.3 billion (108.1). Lending increased 6% to SEK 307.1 billion (289.4).
• The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 15.4% (14.7*) on 31 December 2019.
• The number of customers with Länsförsäkringar as their primary bank increased 9% and the number of cards increased 9%.
• Länsförsäkringar Bank issued its inaugural senior non-preferred bond in September.
• Länsförsäkringar Bank implemented a new core banking system in April.
• According to the 2019 Swedish Quality Index customer satisfaction survey, Länsförsäkringar Bank has the banking market’s most satisfied retail and corporate customers.
• Morningstar named Länsförsäkringar Best Fund House Overall Sweden 2019 in March.
  
  Figures in parentheses pertain to the same period in 2018.
  * Pertains to 30 September 2019. 

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

Anders Borgcrantz, CFO, Länsförsäkringar Bank AB,
+46 (0)8-588 412 51, +46 (0)73-964 12 51

Martin Rydin, Head of Treasury Länsförsäkringar Bank AB,
+46 (0)8-588 412 79, +46 (0)73-964 28 23

Stefan Karkamanis, Investor Relations, Länsförsäkringar Bank AB
+46 (0)8-588 402 90, +46 (0)72-310 00 80

This is information that Länsförsäkringar Bank AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 12:00 CET on 6 February 2020.

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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