Länsförsäkringar Bank: January – March 2022
”In an uncertain world, in which attention during the quarter shifted from the pandemic to Russia’s invasion of Ukraine, Länsförsäkringar’s focus remains on being close to our customers. The war in Ukraine had a material impact on energy and commodity prices, for example, which contributed to rising inflation and higher market interest rates, while the extent of the negative impact on global growth is uncertain. Mortgage rates have started to rise after several years of low rates. We can however see that Swedish households and our customers have healthy margins in their personal finances. Competition in the mortgage market continued to be substantial, while our ambitions for capturing market shares remain firm. We are continuing to invest in our digital capabilities and by simplifying and improving the efficiency of our processes to meet customer expectations of a high level of service and good functionality. Earnings for the first quarter were stable and credit losses remained very low, though they were negatively affected by the “bank tax.” We are convinced that Länsförsäkringar’s local business model and close customer relationships, particularly in troubling times, will result in the continued solid performance of the banking business”, says Sven Eggefalk, President of Länsförsäkringar Bank.
The period in brief, Group
- Operating profit amounted to SEK 512.5 M (662.9) and the return on equity amounted to 8.3% (11.7).
- Net interest income declined 2% to SEK 1,202 M (1,223).
- Net commission, excluding remuneration to the regional insurance companies, rose 19% to SEK 354.6 M (298.6).
- Operating income increased 2% to SEK 1,174 M (1,150).
- Operating expenses rose 8% to SEK 570.4 M (527.3).
- Credit losses amounted to SEK –3.8 M (68.6), net, corresponding to a credit loss level of 0.00% (–0.07).
- Operating profit was impacted by fees of SEK 87.6 M levied during the quarter, of which risk tax comprised SEK 52.8 M.
- Business volumes increased 10% to SEK 829.2 billion (754.2).
- Deposits rose 10% to SEK 150.0 billion (136.7). Lending increased 5% to SEK 359.0 billion (341.1).
- Fund volumes increased 16% to SEK 320.2 billion (276.4).
- The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 15.1% (15.3*) on 31 March 2022.
Figures in parentheses pertain to the same period in 2021.
* Refers to 31 December 2021.
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
This report contains such information that Länsförsäkringar Bank AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication on 25 April 2022 at 12:00 a.m. CET.
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.