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 3.9 million customers of the Länsförsäkringar Alliance. Customer contact takes place during personal meetings at 115 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.

Contacts

Länsförsäkringar Bank AB (publ)
Street address: Tegeluddsvägen 11-13
Postal address: SE-106 50 Stockholm
Telephone: +46 8 588 400 00

Sven Eggefalk
President Länsförsäkringar Bank AB
+46 8 588 414 37
+46 70 240 47 04
Sven.Eggefalk@lansforsakringar.se

Martin Rydin
CFO, Länsförsäkringar Bank AB
+46 8 588 412 79
+46 73 964 28 23
Martin.Rydin@lansforsakringar.se

Financial information

January-June 2023

The period in brief, Group

Operating profit rose 19% to SEK 1,130 M (953) and the return on equity amounted to 8.6% (7.6).
Net interest income increased 49% to SEK 3,515 M (2,362).
Net commission income, excluding remuneration to the regional insurance companies, increased 1% to SEK 691 M (682).
Operating income increased 12% to SEK 2,627 M (2,345).
Operating expenses increased 9% to SEK 1,280 M (1,175).
Credit losses amounted to SEK 21 M (49), net, corresponding to a credit loss level of 0.01% (0.02).
Operating profit was impacted by fees levied of SEK 196 M (168) during the period, of which risk tax comprised SEK 127 M (106).
Business volumes increased 9% to SEK 870 billion (797).
Deposits declined 2% to SEK 153 billion (156).
Lending increased 4% to SEK 375 billion* (360).
Fund volumes increased 22% to SEK 342 billion (281).
The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 14.7% (14.7**) on 30 June 2023.

Figures in parentheses pertain to the same period in 2022.

* Loans to the public excluding deposits with the Swedish National Debt Office and similar items.
** Pertains to 31 March 2023.

Read the full report from Länsförsäkringar Bank

Investor presentation Q2 2023

Financial calendar
Date	Report
October 27, 2023	Q3 Report 2023
February 9, 2024	Year-end report 2023

Current Rating

Standard & Poor's

Long: A/Stable
Short: A-1(K-1)

Moody's

Long: A1/Stable
Short: P-1

Historical Ratings

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.

Funding

In nominal values and excluding repurchase agreements, as per June 30, 2022.

Funding programmes
	Limit Nom	Outstanding Nom	Remaining average term
Medium Term Note	SEK 40 billion	SEK 17.5 billion	2.1 years
Domestic Commercial Paper	SEK 15 billion	SEK 0.2 billion	0.1 years
Euro Commercial Paper	EUR 1.5 billion	SEK 0.0 billion	0.0 years
Euro Medium Term Note	EUR 4 billion	SEK 26.0 billion	2.2 years
Total		SEK 43.2 billion	2.2 years

EMTN and AT1 Prospectuses

Green bonds

Länsförsäkringar Bank’s green bond framework is a strong and detailed framework, which enables issuance of green bonds from Länsförsäkringar Bank and from Länsförsäkringar Hypotek.

Green bond framework

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.

Consolidated situation*, as of June 30, 2023

Core Tier 1 capital amounted to SEK 18,668 M
Core Tier 1 ratio was 14.7 percent
Tier 1 capital was SEK 20,868 M
Tier 1 ratio was 16.5 percent
Capital base was SEK 23,958 M
Total capital ratio was 18.9 percent

* As of June 30, 2021, the consolidated situation comprises Länsförsäkringar Bank and its subsidiaries (the Bank Group).

Pillar 3 disclosure

Länsförsäkringar Bank presents its Risk and Capital Management Report in accordance with Part Eight of the Regulation (EU) No 575/2013 (Capital Requirements Regulation or CRR) based on its consolidated situation. From 3 May 2021, Länsförsäkringar Bank’s consolidated situation comprises Länsförsäkringar Bank AB, Länsförsäkringar Hypotek AB, Wasa Kredit AB and Länsförsäkringar Fondförvaltning AB.

Pillar 3 information
June 30 2023
March 31 2023
December 31 2022
September 30 2022
June 30 2022
Mars 31 2022
December 31 2021
September 30 2021
June 30 2021

Older reports

Risk & Capital Management Reports

Quarterly disclosure Own Funds

Corporate Governance

Board of Directors

Members of the Board of Directors

Mathias Collén, born 1981, chair, Acting President of Länsförsäkringar AB.
Ola Evensson born 1965, President Länsförsäkringar Älvsborg. Board member since 2020.
Niklas Larsson, born 1979, President of Länsförsäkringar Göinge-Kristianstad. Board member since 2021
Hans Ljungkvist, born 1952, externally appointed. Board member since 2021
Ulrica Hedman, born 1974, President Länsförsäkringar Uppsala. Board member 2022.
Anki Norrström, born 1952, President Länsförsäkringar Bergslagen. Board member 2022.
Emil Källström, born 1987, external. Board member 2022.

Employee representatives

Anette Andersson, born 1962, FORENA.
Camilla Lahger, born 1966 (Substitute). Member of the Board since 2018.
Mattias Karlsson born 1974, Saco. Member of the Board since 2020.
Lisa-Maria Carensjö, born 1979 (Substitute). Member of the Board since 2021

Executive Management

Members of the Executive Management

Sven Eggefalk born 1969, President
Anders Larsson, born 1965, President of Länsförsäkringar Hypotek
Martin Rydin, born 1968, CFO
Tobias Ternstedt, born 1972, CFO Product Process and Operation, IT.
Susanne Calner born 1969, Head of President’s Office
Bengt Clemedtson born 1964, Head of Business
Eva Gottfridsdotter Nilsson born 1960, President of Länsförsäkringar Fondförvaltning AB
Louise Lindgren born 1959, CRO
Thomas Högväg born 1968, President of Wasa Kredit
Ellinor Örtegren Johanson born 1958, Head of Financial Crime Prevention.
Mikael Patring born 1975, Head of Credit.

Committees

Remuneration Committee

Mathias Collén (Chair)
Anki Norrström

Credit Committee

Niklas Larsson (Chair)
Mathias Collén
Ola Evensson
Hans Ljungkvist

Audit Committee

Ola Evensson (Chairman)
Ulrica Hedman
Emil Källström

Risk and Capital Committee

Hans Ljungkvist (Chairman)
Anki Norrström
Mattias Karlsson, Akademierföredningen
Niklas Larsson

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.

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.

Länsförsäkringar Bank Corporate Governance Reports

Sustainability

Reporting and Self-Assessment 2022 (pdf)

Reporting and Self-Assessment Full-Year 2022