The Swedish FSA’s (Finansinspektionens) decision on capital requirements for Länsförsäkringar Bank

The Swedish Financial Supervisory Authority, SFSA (Finansinspektionen, FI), has finalised and decided upon their supervisory review and evaluation process (SREP) and has decided upon capital requirements and guidance for Länsförsäkringar Bank at group level.

SFSA has decided upon a pillar 2 requirement buffer (P2R) of 2.1%, of which 1.2 %-point needs to be covered with CET1 capital, 0.4 %-point needs to be covered with other tier 1 capital and 0.5 %-point could be covered with tier 2 capital.

SFSA has also decided upon a pillar 2 guidance buffer (P2G) of 0.0% for the Länsförsäkringar Bank group.

This means a total CET1 requirement of 9.2% as of end of September 2022, including the previously decided increase of the countercyclical buffer requirement for Swedish banks which comes into force in September 2022. The total capital requirement will be 13.6% as of end of September 2022.

SFSA has also informed about a pillar 2 guidance regarding the leverage ratio requirement at group level of 0.15% in addition to the minimum leverage ratio requirement of 3.0%.

SFSA has also decided upon capital requirements for Länsförsäkringar Bank AB as well as for Länsförsäkringar Hypotek and Wasa Kredit. The capital levels at group level as well as for the separate entities are clearly well above the requirements from the SFSA.

[This information is such that Länsförsäkringar Bank is obliged to publish according to the EU’s market abuse regulation. The information was given for publication on the 30 September 2022 at 17.00 CET.]

For further information, please contact:

Martin Rydin, CFO Länsförsäkringar Bank AB, +46 739 64 28 23

Andreas Larsson, Head of Investor Relations Länsförsäkringar Bank AB, +46 720 84 36 34

Länsförsäkringar Press office +46 8 588 418 50