Länsförsäkringar Bank: January – September 2019

”Länsförsäkringar was named the bank with Sweden’s most satisfied customers by the Swedish Quality Index for the sixth consecutive year. This year we also won the same accolade for the corporate market, which is particularly pleasing. We are humbled and proud that Länsförsäkringar has Sweden’s most satisfied customers. Along with the award from Morningstar that we received earlier this year as “Sweden’s Best Fund House Overall 2019”, this gives us a stable platform for continued growth in our banking business. The main factor contributing to this success is our stated strategy whereby we combine our strong local presence with modern digital services through our 23 regional insurance companies to offer a total solution for our customers’ finances. The earnings trend continued to be favourable and we maintained the strong performance in net interest income, while the credit quality of the loan portfolio remains high. Business volumes are continuously increasing in all areas, such as deposits, mortgage lending and funds, and we retained a good balance between savings and deposits in our volumes. This performance is confirmation that Länsförsäkringar continues to be an attractive option in the banking market where the number of customers is steadily growing and our market shares are successively increasing”, says Sven Eggefalk, President of Länsförsäkringar Bank.

The period in brief, Group

  • Operating profit increased 10% to SEK 1,437 M (1,310) and the return on equity amounted to 9.7% (9.8).
  • Net interest income rose 4% to SEK 3,448 M (3,328).
  • Operating income increased 7% to SEK 2,961 M (2,772).
  • Operating expenses amounted to SEK 1,399 M (1,398).
  • Credit losses amounted to SEK 125.6 M (63.9), net, corresponding to a credit loss level of 0.05% (0.03).
  • Business volumes increased 12% to SEK 631.0 billion (563.8).
  • Deposits rose 12% to SEK 117.6 billion (105.1). Lending increased 8% to SEK 302.8 billion (280.4).
  • Fund volumes increased 18% to SEK 210.6 billion (178.3).
  • The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 14.7% (14.6*) on 30 September 2019.
  • The number of customers with Länsförsäkringar as their primary bank rose 9% and the number of bank cards increased 9%.
  • According to the 2019 Swedish Quality Index customer satisfaction survey, Länsförsäkringar Bank remains the player on the banking market with the most satisfied retail customers. Länsförsäkringar Bank also has the most satisfied corporate customers according to the 2019 Swedish Quality Index.
  • In September, Länsförsäkringar Bank successfully issued a 5 year SEK 2.5 billion inaugural senior non-preferred bond.
    Figures in parentheses pertain to the same period in 2018.

    * Pertains to 30 June 2019.

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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. The information was submitted for publication, through the agency of the contact person set out above, at 12:00 CET on 24 October 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.

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