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 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.

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 2022

The year in period, Group

Operating profit declined 22% to SEK 952.7 M (1,228) and the return on equity amounted to 7.6% (10.7).
Net interest income declined 3% to SEK 2,361.7 M (2,427.7).
Net commission, excluding remuneration to the regional insurance companies, increased 9% to SEK 681.9 M (625.2).
Operating income increased 2% to SEK 2,344.7 M (2,294.5
Operating expenses increased 8% to SEK 1,175 M (1,086).
Credit losses amounted to SEK 48.7 M (-80), net, corresponding to a credit loss level of 0.02% (-0.04).
Operating profit was impacted by fees levied of SEK 167.8 M during the period, of which risk tax comprised SEK 105.7 M.
Business volumes rose 2% to SEK 796.17 billion (782.1
Deposits rose 10% to SEK 155.9 billion (142.1).
Fund volumes declined 6% to SEK 281.2 billion (298.3)
The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 14.9% (15.1*) on 30 June.

Figures in parentheses pertain to the same period in 2021.
* Refers to 31 March 2021.

Read the full report from Länsförsäkringar Bank

Financial calendar
Date	Report
February 11, 2022	Year-end report 2021
March 14, 2022	Annual Report 2021
April 25, 2022	Q1 Report 2022
July 21, 2022	Q2 Report 2022
October 27, 2022	Q3 Report 2022

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

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, 2022

Core Tier 1 capital amounted to SEK 17,804 M
Core Tier 1 ratio was 14.9 percent
Tier 1 capital was SEK 20,004 M
Tier 1 ratio was 16.7 percent
Capital base was SEK 22,594 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 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

Malin Rylander Leijon born 1970, Acting President of Länsförsäkringar AB. Acting chair since 2022.
Anders Grånäs born 1966, President Dalarnas Försäkringsbolag. Board member since 2016.
Peter Lindgren born 1959, President Länsförsäkringar Östgöta. Board member since 2016.
Anna Blom born 1970, Preseident Länsförsäkringar Kalmar. Board member since 2020.
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

Employee representatives

Mirek Swartz, born 1962, FTF. Member of the Board since 2015.
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 Borgcrantz, born 1975, President of Länsförsäkringar Hypotek
Martin Rydin, born 1968, CFO
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
Tobias Ternstedt born 1972, Head of IT
Ellinor Örtegren Johanson born 1958, Head of Financial Crime Prevention.
Mikael Patring born 1975, Head of Credit.

Committees

Remuneration Committee

Malin Rylander Leijon (Chair)
Anders Grånäs

Audit Committee

Peter Lindgren (Chairman)
Anna Blom
Ola Evensson

Credit Committee

Malin Rylander Leijon (Chair)
Anna Blom
Ola Evensson
Niklas Larsson

Risk and Capital Committee

Anders Grånäs (Chairman)
Peter Lindgren
Anna Blom
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.

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