Länsförsäkringar Bank: January – March 2021

”Länsförsäkringar Bank turns 25 this year and we are very proud of the market position that Länsförsäkringar’s banking operations have achieved during this time, with a strong local presence and modern digital services. We are celebrating our 25th anniversary by continuing our outstanding performance in the first quarter of the year. Growth in the banking business was healthy and business volumes performed well. The earnings trend was strong, largely driven by the positive performance of credit losses, but also by the strength of the underlying operations. In terms of income, net commission performed well, while costs increased at a significantly lower rate than in the preceding year. Overall, we delivered our strongest quarter to date. However, we are still in the midst of a pandemic, which means that several macroeconomic risks remain even though the prospects of a recovery have improved. The measures we took at the start of the pandemic to guarantee the continuation of the operations and ensure a high level of availability for customers remain in place, and we are working intensely together with the regional insurance companies to continue to offer the security and excellent service that Länsförsäkringar is known for”, says Sven Eggefalk, President of Länsförsäkringar Bank.

The period in brief, Group
 

• Operating profit increased 45% to SEK 662.9 M (455.9) and the return on equity strengthened to 11.7% (8.7).
• Net interest income declined 1% to SEK 1,195 M (1,210).
• Operating income increased 3% to SEK 1,122 M (1,087).
• Operating expenses rose 2% to SEK 527.3 M (518.9).
• Credit losses amounted to SEK –68.6 M (112.1), net, corresponding to a credit loss level of –0.07% (0.13).
• Business volumes increased 19% to SEK 754.2 billion (631.9).
• Deposits rose 9% to SEK 136.7 billion (125.1). Lending increased 10% to SEK 341.1 billion (311.3).
• Fund volumes increased 41% to SEK 276.4 billion (195.5).
• The Common Equity Tier 1 capital ratio for the Consolidated Situation on 31 March 2021 amounted to 16.5% (16.7*) and for the Bank Group to 14.8% (14.9*).
  
  Figures in parentheses pertain to the same period in 2020.
  * Pertains to 31 December 2020.

Read more
https://www.lansforsakringar.se/financial-bank/

For further information, please contact:

Sven Eggefalk, President Länsförsäkringar Bank AB
+46 (0)8-588 414 37, +46 (0)70-240 47 04

Martin Rydin, CFO 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. The information was submitted for publication, through the agency of the contact person set out above, at 12:00 CET on 29 April, 2021.
 

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.