Year-end report 2009

Länsförsäkringar Bank – Year-end report 2009 “During the fourth quarter, we surpassed SEK 200 billion in business volumes and Länsförsäkringar is now the fifth largest retail bank in Sweden. I am very proud that Länsförsäkringar has Sweden´s most satisfied retail bank customers for the fifth time and Sweden´s most satisfied retail mortgage customers for the sixth time and the fifth consecutive year according to Swedish Quality Index 2009. The number of customers is continuing to increase. It is also gratifying that we are growing in all product areas, largely due to our strong local organisation. Our banking operations have excellent stability, a high level of credit quality and a strong financial position,” says Mats Ericsson, President of Länsförsäkringar Bank. Summary - Operating profit increased 5% to SEK 258 M (245). - Net interest income declined 5% to SEK 1,148 M (1,211). - Net profit from financial transactions rose to SEK 101 M (1). - Total business volumes increased 23% to SEK 204 billion (165). - Lending rose 27% to SEK 100 billion (79). - Credit quality was highly favourable and the operations maintained a low risk profile. Loan losses amounted to SEK 50 M (65), net, corresponding to a loan loss level of 0.05% (0.07). - The Tier 1 ratio according to Basel II was 12.5% (14.6) and the capital adequacy ratio was 14.8% (17.7). - Länsförsäkringar once again has Sweden’s most satisfied retail bank customers and the most satisfied mortgage customers in a comparison of all Swedish banks according to the Swedish Quality Index (SQI) 2009. - The number of customers rose 8% to 759,000 (700,000) and the number of bank cards increased 23% to 223,000 (181,000). Figures in parentheses pertain to 2008. The full report is available below or at www.lansforsakringar.se/reports.