YEAR END REPORT 2006

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).