Länsförsäkringar Bank

One of Sweden's largest retail banks

Länsförsäkringar Bank is one of Sweden's largest banks. The strategy is based on the Länsförsäkringar Alliance's large customer base, a strong brand and local presence through the customer-owned regional insurance companies.

Banking services are offered primarily to the 3.9 million customers of the Länsförsäkringar Alliance. Customer contact takes placeduring personal meetings at 128 of the regional insurance companies' branches throughout Sweden and via digital services and telephone.

The aim is, based on low risk, to continue to drive growth in volumes and profitability, have the most satisfied customers and increase the share of customers who have both banking and insurance with Länsförsäkringar.

Contacts

Länsförsäkringar Bank AB (publ)
Street address: Tegeluddsvägen 11-13
Postal address: SE-106 50 Stockholm
Telephone: +46 8 588 400 00

Sven Eggefalk
President Länsförsäkringar Bank AB
+46 8 588 414 37
+46 70 240 47 04
Sven.Eggefalk@lansforsakringar.se

Martin Rydin
CFO, Länsförsäkringar Bank AB
+46 8 588 412 79
+46 73 964 28 23
Martin.Rydin@lansforsakringar.se

Stefan Karkamanis
Investor Relations Länsförsäkringar Bank AB
+46 8 588 402 90
+46 72 310 00 80
Stefan.Karkamanis@lansforsakringar.se

Financial information

January – December 2020

The period in brief, Group

Operating profit amounted to SEK 1,844 M (1,893) and the return on equity amounted to 8.5% (9.5).
Net interest income rose 5% to SEK 4,845 M (4,617).
Operating income increased 6% to SEK 4,278 M (4,027).
Operating expenses amounted to SEK 2,109 M (1,926).
Credit losses amounted to SEK 325.5 M (207.2), net, corresponding to a credit loss level of 0.09% (0.06).
Business volumes increased 11% to SEK 729.4 billion (656.0).
Deposits rose 14% to SEK 136.4 billion (119.3). Lending increased 11% to SEK 340.0 billion (307.1).
Fund volume increased 10% to SEK 253.0 billion (229.6).
As of the third quarter, Länsförsäkringar Bank and its subsidiaries are subject to consolidation at the sub-group level (sub-consolidated basis).
The Common Equity Tier 1 capital ratio for the Consolidated Situation on 31 December 2020 amounted to 16.7% (16.4*) and for the Bank Group to 14.9% (14.3*).
The number of customers with Länsförsäkringar as their primary bank increased 6% to 586,000 (553,000).
According to the 2020 Swedish Quality Index customer satisfaction survey, Länsförsäkringar Bank remains the leading player in terms of customer satisfaction among retail customers.

Figures in parentheses pertain to the same period in 2019.
* Pertains to 30 September 2020.

Read the full report from Länsförsäkringar Bank.

Financial calendar
Date	Report
April 29, 2021	Q1 2021
July 21, 2021	Q2 2021
October 27, 2021	Q3 2021

Current Rating

Standard & Poor's

Long: A/Stable
Short: A-1(K-1)

Moody's

Long: A1/Stable
Short: P-1

Historical Ratings

2015 May Länsförsäkringar Bank's long-term credit rating was revised to A1/stable from A3/Stable outlook from Moody's. Short-term rating was revised to P-1 from P-2.

2013 June Länsförsäkringar Bank's long-term credit rating was revised to A3/stable from A2/negative outlook from Moody's. Short-term rating was revised to P-2 from P-1.

2011 October Länsförsäkringar Bank's long-term credit rating was revised to A2/negative from A/2stable outlook from Moody's.

2007 February Länsförsäkringar Bank upgraded from long-term A-/positive to A/stable and from short-term A-2 to A-1 from Standard & Poor's. Upgraded from long-term A3/stable to A2/stable and from short-term P-2 to P-1 from Moody's.

2006 January Länsförsäkringar Bank upgraded from long-term A-/stable to A-/positive from Standard & Poor's.

2004 May Länsförsäkringar Bank upgraded from BBB+/stable to A-/stable from Standard & Poor's. Graded long-term A3/stable and short-term P-2 from Moody's.

2002 July Länsförsäkringar Bank graded long-term BBB+/stable and short-term A-2 from Standard & Poor's.

Funding

In nominal values and excluding repurchase agreements, as per December 31, 2020

Funding programmes
	Limit Nom	Outstanding Nom	Remaining average term
Medium Term Note	SEK 40 billion	SEK 19.5 billion	1.7 years
Domestic Commercial Paper	SEK 15 billion	SEK 0.2 billion	0.1 years
Euro Commercial Paper	EUR 1.5 billion	SEK 0.3 billion	0.3 years
Euro Medium Term Note	EUR 4 billion	SEK 20.3 billion	2.3 years
Total		SEK 40.2 billion	2.3 years

EMTN and AT1 Prospectuses

Credit update

Credit update Q4 2020

Risks and Capital Adequacy

Länsförsäkringar Bank Group applies the Internal Ratings Based (IRB) approach. The advanced IRB approach is applied to all retail exposure and for counterparty exposures to corporates and the agricultural sector up to SEK 5 M.

The Foundation IRB Approach is applied for counterparty exposures to corporates and the agricultural sector above SEK 5 M. The Standardised Approach is applied to other exposures.

The bank is monitoring the Capital Requirements Directive CRD IV / CRR and assesses that the Bank Group has a solid basis on which to meet currently coming known requirements.

Bank Group, as of December 31, 2020

Core Tier 1 capital amounted to SEK 16,456 M
Core Tier 1 ratio was 14.9 percent
Tier 1 capital was SEK 18,656 M
Tier 1 ratio was 16.9 percent
Capital base was SEK 21,246 M
Total capital ratio was 19.3 percent

Consolidated situation, as of December 31, 2020

Core Tier 1 capital amounted to SEK 21,475 M
Core Tier 1 ratio was 16.7 percent
Tier 1 capital was SEK 22,775 M
Tier 1 ratio was 17.7 percent
Capital base was SEK 24,519 M
Total capital ratio was 19.1 percent

Risk & Capital Management Reports

Quarterly disclosure Own Funds

Leverage Ratio

Corporate Governance

Board of Directors

Members of the Board of Directors

Fredrik Bergström born 1970, Acting President and CEO of Länsförsäkringar AB. Chairman since 2018.
Per-Ove Bäckström born 1959, President of Länsförsäkringar Gävleborg. Board member since 2015.
Anders Grånäs born 1966, President Dalarnas Försäkringsbolag. Board member since 2016.
Ingrid Jansson born 1950. External member. Board member since 2013.
Peter Lindgren born 1959, President Länsförsäkringar Östgöta. Board member since 2016.
Anna Blom born 1970, Preseident Länsförsäkringar Kalmar. Board member since 2020.
Ola Evensson born 1965, President Länsförsäkringar Älvsborg. Board member since 2020.
Lennart Käll born1958, President Länsförsäkringar Stockholm. Board member since 2020.

Employee representatives

Mirek Swartz, born 1962, FTF. Member of the Board since 2015.
Camilla Lahger, born 1966 (Substitute). Member of the Board since 2018.
Mattias Karlsson born 1974, Saco. Member of the Board since 2020.
Peter Fredby born 1969 (Substitute). Member of the Board since 2020.

Executive Management

Members of the Executive Management

Sven Eggefalk born 1969, President
Martin Rydin, born 1968, CFO Länsförsäkringar Bank
Gert Andersson born 1959, Head of Produkt & Process
Susanne Calner born 1969, Head of President’s Office
Bengt Clemedtson born 1964, Head of Business
Eva Gottfridsdotter Nilsson born 1960, President of Länsförsäkringar Fondförvaltning AB
Louise Lindgren born 1959, CRO
Thomas Högväg born 1968, President Wasa Kredit
Tobias Ternstedt born 1972, Head of IT
Ellinor Örtegren Johanson born 1958, Head of Financial Crime Prevention.
Mikael Patring born 1995, Head of Kredit.

Committees

Remuneration Committee

Fredrik Bergström (Chairman)
Anders Grånäs

Audit Committee

Ingrid Jansson (Chairman)
Fredrik Bergström
Peter Lindgren
Lennart Käll

Credit Committee

Fredrik Bergström (Chairman)
Per-Ove Bäckström
Anna Blom
Ola Evensson

Risk and Capital Committee

Fredrik Bergström (Chairman)
Anders Grånäs
Peter Lindgren
Anna Blom

Code of Corporate Governance

Länsförsäkringar Bank AB's intention is to follow the Swedish Code of Corporate Governance (the Code) in the applicable parts, with consideration of the fact that the bank is not a stock market company.

Deviations from the provision of the Code

Notice and holding of an Annual General Meeting. Deviation from the provisions of the Code with respect to the fact that the company is not a stock market company and has only one shareholder.
Composition of Board of Directors. Deviation from the provisions of the Code occurs regarding independence of Board members and Committee members. According to the instruction for the Nomination
Committee, the Board of Directors is to be appropriately composed with respect to Länsförsäkringar Bank's operations, stage of development and other circumstances, and be characterised by diversity and breadth in terms of the members' competencies, experience and background. It has been decided that these requirements can be fulfilled within the framework of the Länsförsäkringar Alliance.
The mandate period for Board members is, as a general rule, two years. Deviation from the provisions of the Code of a maximum mandate period of one year due to the supremacy of the Annual General Meeting to dismiss and appoint a member irrespective of mandate period. A mandate period that is longer than one year contributes to ensuring continuity and establishing competence within the Board.

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