About 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 3.7 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.
Länsförsäkringar Bank AB (publ)
Street address: Tegeluddsvägen 11-13
Postal address: SE-106 50 Stockholm
Telephone: +46 8 588 400 00
President Länsförsäkringar Bank AB
+46 8 588 412 51
+46 73 964 12 51
CFO Länsförsäkringar Bank AB
+46 8 588 412 79
+46 73 964 12 79
Investor Relations Länsförsäkringar Bank AB
+46 8 588 402 90
+46 72 147 22 93
Interim Report January-September 2017
The period in brief, Group
- A number of organisational changes were made on 1 January 2017 whereby operations were transferred from the Parent Company, Länsförsäkringar AB, to the Bank Group. A total of 116 full-time employees joined the Bank Group.
- Operating profit increased 8 % to SEK 1,166 M (1,077) and the return on equity amounted to 9.8 % (10.0).
- Net interest income rose 16 % to SEK 2,926 M (2,519).
- Operating income increased 11 % to SEK 2,374 M (2,145).
- Operating expenses amounted to SEK 1,173 M (1,033).
- Loan losses amounted to SEK 34.8 M (35.2), net, corresponding to a loan loss level of 0.02 % (0.02).
- Business volumes increased 13 % to SEK 501.1 billion (442.0).
- Deposits rose 10 % to SEK 99.3 billion (90.0). Lending increased 15 % to SEK 251.7 billion (219.3).
- The Common Equity Tier 1 capital ratio for the consolidated situation amounted to 23.4% (22.8*) on 30 September 2017.
- The number of customers with Länsförsäkringar as their primary bank rose 11% and the number of bank cards increased 12%.
- According to the 2017 Swedish Quality Index customer satisfaction survey, Länsförsäkringar Bank is the single player on the bank market with the most satisfied retail and corporate customers.
Figures in parentheses pertain to the same period in 2016.
* Refers to 30 June 2017.
Standard & Poor's
- Long: A/Stable
- Short: A-1(K-1)
- Long: A1/Stable
- Short: P-1
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.
In nominal values and excluding repurchase agreements, as of September 30, 2017
|Limit Nom||Outstanding Nom||Remaining average term|
|Medium Term Note||SEK 30 billion||SEK 27.5 billion||2.2 years|
|Domestic Commercial Paper||SEK 15 billion||SEK 0.0 billion||0.0 years|
|Euro Commercial Paper||EUR 1.5 billion||SEK 0.5 billion||0.4 years|
|Euro Medium Term Note||EUR 2 billion||SEK 7,8 billion||4.1 years|
|Total||SEK 35.8 billion|
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 30 June, 2017
- Core Tier 1 capital amounted to SEK 11,384 M
- Core Tier 1 ratio was 24.3 percent
- Tier 1 capital was SEK 12,584 M
- Tier 1 ratio was 26.8 percent
- Capital base was SEK 15,176 M
- Total capital ratio was 32.4 percent
Consolidated situation, as of 30 June, 2017
- Core Tier 1 capital amounted to SEK 14,248 M
- Core Tier 1 ratio was 22.8 percent
- Tier 1 capital was SEK 15,448 M
- Tier 1 ratio was 24.7 percent
- Capital base was SEK 18,040 M
- Total capital ratio was 28.9 percent
Risk & Capital Management Reports
- Risk and Capital Management 2016
- Risk and Capital Management 2015
- Risk and Capital Management 2014
- Risk and Capital Management 2013
- Risk and Capital Management 2012
- Risk and Capital Management 2011
- Risk and Capital Management 2010
- Risk and Capital Management 2009
- Risk and Capital Management 2008
- Risk and Capital Management 2007
Quarterly disclosure Own Funds
- September 30, 2017
- June 30, 2017
- March 31, 2017
- December 31, 2016
- September 30, 2016
- June 30, 2016
- March 31, 2016
- December 31, 2015
- September 30, 2015
- June 30, 2015
- March 31, 2015
Board of Directors
Members of the Board of Directors
- Johan Agerman born 1962, President and CEO of Länsförsäkringar AB. Chairman since 2017.
- 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.
- Beatrice Kämpe Nikolausson born 1972, President Länsförsäkring Kronoberg. Board member since 2016.
- Bengt-Erik Lindgren born 1950, Chairman of Länsförsäkringar Bergslagen. Board member since 2012.
- Peter Lindgren born 1959, Chairman of Länsförsäkringar Östgöta. Board member since 2016.
- Anna-Greta Lund born 1955, President Länsförsäkringar Södermanland. Board member since 2016.
- Mirek Swartz, born 1962, FTF. Member of the Board since 2015.
- Linda Pettersson, born 1973, (Substitute). Member of the Board since 2015.
Members of the Executive Management
- Anders Borgcrantz born 1961, President.
- Martin Rydin born 1968, CFO and President Länsförsäkringar Hypotek
- Gert Andersson born 1959, Head of Produkt & Process
- Susanne Calner born 1969, Head of CEO Office
- Bengt Clemedtson born 1964, Head of Business
- Eva Gottfridsdotter Nilsson born 1960, President of Länsförsäkringar Fondförvaltning AB
- Louise Lindgren born 1959, CRO
- Marie Lundberg born 1968, President Wasa Kredit
- Richard Lundberg born 1976, Head of Bank Business Service
Risk and Capital Committee
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.
Länsförsäkringar Bank Corporate Governance Reports
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.
Remuneration system and policy
In accordance with the provisions of the Swedish Financial Supervisory Authority, FFFS 2007:5, information pertaining to the Remuneration Policy of Länsförsäkringar Bank AB (Länsförsäkringar Bank) and its application must be published annually.
Länsförsäkringar Bank is part of the Länsförsäkringar AB Group (LFAB Group). A Group-wide remuneration policy has been prepared for the LFAB Group. The policy was revised and latest adopted by LFAB's Board of Directors on June 18, 2013 and by the Board of Directors of Länsförsäkringar Bank on August 27, 2013.
The revised Remuneration Policy for Länsförsäkringar Bank is based on a risk analysis of the risks that may be connected to the Remuneration Policy. The risk analysis resulted in an assessment that very limited risks are connected to the Remuneration Policy and the Remuneration System.
The assessment is based on the Remuneration Policy not having any long-term negative impact on the company's finances, that the balance between fixed and target-related portions is such that the target-related portion is deemed to have very limited impact on the company's capital base, that guaranteed target-related remuneration does not existe except for a new-employed where the target-related remuneration may consist of maximum 50 % of the fixed remuneration during the first year of employment.