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”The second quarter of 2019 was yet another successful quarter for Länsförsäkringar’s banking operations. Länsförsäkringar Bank reported strong financial earnings and continues to enjoy a high inflow of new customers. We also noted continued positive growth in business volumes in all business segments, which led to stable growth in market shares. A contributing factor to this success is our stated strategy of offering a complete solution in banking and insurance, both locally and digitally. We are convinced that the high level of customer satisfaction is the result of Länsförsäkringar’s strong local presence combined with continuous investments in the digital area. We also successfully implemented a new core banking system at the start of the second quarter. The replacement of the system marks a key milestone for Länsförsäkringar Bank and the new modern IT platform will further add to our ability to meet our customers in the digital space and open more opportunities for developing the digital banking services of the future. In addition, Länsförsäkringar’s Open Banking platform was launched in June with the aim of building new, innovative services that make everyday life easier and create security and added value for customers”, says Sven Eggefalk, President of Länsförsäkringar Bank.
The year in brief, Group
- Operating profit increased 8% to SEK 957.8 M (888.2) and the return on equity amounted to 9.8% (10.3).
- Net interest income rose 4% to SEK 2,272 M (2,193).
- Operating income increased 8% to SEK 1,960 M (1,811).
- Operating expenses rose 7% to SEK 933.6 M (873.7).
- Credit losses amounted to SEK 69.0 M (49.0), net, corresponding to a credit loss level of 0.04% (0.04).
- Business volumes increased 12% to SEK 616.6 billion (551.3).
- Deposits rose 11% to SEK 115.9 billion (104.4). Lending increased 9% to SEK 301.7 billion (275.8).
- The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 14.6% (15.0%*) on 30 June 2019.
- The number of customers with Länsförsäkringar as their primary bank rose 9% and the number of bank cards increased 10%.
- In April 2019, Länsförsäkringar Bank completed the final implementation of the project of replacing the bank’s IT platform with the new core banking system BaNCS.
Figures in parentheses pertain to the same period in 2018.
* Pertains to 31 March 2019.
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
This is information that Länsförsäkringar Bank AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 12:00 CET on 18 July 2019.
The Länsförsäkringar Alliance is comprised of 23 local and customer-owned regional insurance companies and the jointly owned Länsförsäkringar AB. Customers are provided with a complete offering of banking and life and non-life insurance services through their local, regional insurance companies. We offer animal and crop insurance through Agria Djurförsäkring, total solutions for reliable mortgage transactions through Länsförsäkringar Fastighetsförmedling, and financing services such as leasing, instalment payments, and loans through Wasa Kredit.