”We can look back on a first quarter that was deeply affected by rising geopolitical tension and threats of the introduction of significant trade tariffs. The change in the US presidency has resulted in clear policy changes that have fuelled economic concerns and volatility in financial markets, which has also intensified in recent weeks. Companies and households are both facing more uncertainty, which can be expected to impact economic activity. However, Sweden’s strong public finances provide a solid basis for managing the situation well and scope exists for potential fiscal policy stimulus.
Despite the uncertain global situation, Länsförsäkringar’s banking operations continued to perform well. We remained successful in the mortgage market in the first quarter, where we are capturing market shares despite tough competition. The volumes of our managed funds have decreased as a result of the weak stock market performance during the quarter, while our deposit volumes were stable. We can report stable earnings, with net interest income negatively affected by lower market interest rates, as was the case in recent quarters. Expenses continued to be affected by the high pace of development but were in line with our plans. Credit quality is still very high, with very low credit losses.
I would like to thank all employees, both at Länsförsäkringar Bank and locally, for their commitment during the first quarter, which contributed to the continued solid performance of the banking operations. I would also like to thank Sven Eggefalk, who has successfully led the Bank for seven years and is now leaving for a new position. It is with great confidence and a sense of security that I now take over the role of acting President. We have a strong financial situation, which provides a good basis for continuing to create security and opportunities for Länsförsäkringar’s bank customers. Moreover, our strong local presence and foundation means that we are particularly well positioned to support customers in times of uncertainty.”, says Martin Rydin, Acting President of Länsförsäkringar Bank

The period in brief, Group:

• Operating profit rose 8% to SEK 626 M (582) and the return on equity amounted to 8.7% (8.5).
• Net interest income declined 11% to SEK 1,504 M (1,688).
• Net commission income, excluding remuneration to the regional insurance companies, increased 12% to SEK 450 M (403).
• Operating income increased 4% to SEK 1,500 M (1,447).
• Operating expenses increased 6% to SEK 736 M (698).
• Credit losses amounted to SEK 33 M (68), net, corresponding to a credit loss level of 0.02% (0.07), most of which derived from LF Finans (formerly Wasa Kredit).
• Operating profit was impacted by fees levied of SEK 105 M (99) during the period, of which risk tax comprised SEK 69 M (65).
• Business volumes increased 6% to SEK 999 billion (947).
• Lending increased 5% to SEK 409 billion* (387).
• Deposits increased 4% to SEK 155 billion (148).
• Fund volumes increased 6% to SEK 436 billion (411).
• The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 15.1% (15.3**) on 31 March 2025.

Figures in parentheses pertain to the same period in 2024.
*  Loans to the public excluding deposits with the Swedish National Debt Office and similar items.

** Refers to 31 December 2024.
 

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https://www.lansforsakringar.se/financial-bank/

For further information, please contact:
 

Martin Rydin, Acting President and CFO Länsförsäkringar Bank AB,

+46 (0)8 588 412 79, +46 (0)73 964 28 23

Andreas Larsson, Head of Investor Relations Länsförsäkringar Bank AB,

+46 (0)10 498 70 29, +46 (0)720 84 36 34

This report contains such information that Länsförsäkringar Bank AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication on 24 April 2025 at 12:00 p.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 Länsförsäkringar Finans.