Länsförsäkringar Bank announces impairment of intangible assets during fourth quarter of 2018
The process on replacing Länsförsäkringar Bank’s IT-platform for deposits, lending and payments is reaching its conclusion and is currently in an intensive phase. The new platform will mean a shift in the bank’s ability to develop its digital offering, enabling the bank to further advance its position in this area. The Board of Directors of Länsförsäkringar Bank has now decided that the transition to the new platform will take place during the second quarter of 2019, which represents a minor delay in relation to the original time plan. In conjunction with the final phase of the project a valuation of the asset has been made. In light of this, the Board of Länsförsäkringar Bank has decided to recognise an impairment of intangible assets of SEK 254 million, which will affect earnings in the fourth quarter of 2018. The assessment is that the impairment will not impact capital adequacy, nor will it have any negative effects on Länsförsäkringar Bank’s capital ratios.
“For just over two and a half years, Länsförsäkringar Bank has worked extensively in order to future-proof the bank’s IT-platform. The investment was made to ensure that our ambitions for sustained growth can be realised and that we can meet the high expectations placed on us by our customers concerning our ability to continue to provide leading digital solutions. This has therefore been a prioritised project to enable us to remain at the forefront moving forward with regards to the development of digital banking services,” said Sven Eggefalk, President of Länsförsäkringar 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