Länsförsäkringar Bank: January – December 2020

”We can summarise 2020 as an extraordinarily unusual year that was mainly dominated by the coronavirus pandemic. The socio-economic impact was widespread and the situation remains challenging for households and companies. While we currently believe the situation to be more stable, the macroeconomic scenario remains uncertain. However, hopes of a quicker recovery have increased now that the vaccination programme has started. Länsförsäkringar Bank took a number of measures to support its customers and ensure a high level of availability when the pandemic broke out. We have worked intensely during the year to continue to offer our customers the security and excellent service that Länsförsäkringar are known for. The strength of our business model with local presence and modern digital services has been crucial, which is also reflected in our high customer satisfaction for both retail and corporate customers. Despite an unusual year, we deliver stable earnings and the banking operations continue to perform well with healthly growth in business volumes. This would not have been possible without the fantastic work of our talented employees during the year, something that I am incredibly pleased and proud of”, says Sven Eggefalk, President of Länsförsäkringar Bank.

The year in brief, Group
 

• Operating profit amounted to SEK 1,844 M (1,893) and the return on equity amounted to 8.5% (9.5).
• Net interest income rose 5% to SEK 4,845 M (4,617).
• Operating income increased 6% to SEK 4,278 M (4,027).
• Operating expenses amounted to SEK 2,109 M (1,926).
• Credit losses amounted to SEK 325.5 M (207.2), net, corresponding to a credit loss level of 0.09% (0.06).
• Business volumes increased 11% to SEK 729.4 billion (656.0).
• Deposits rose 14% to SEK 136.4 billion (119.3). Lending increased 11% to SEK 340.0 billion (307.1).
• Fund volume increased 10% to SEK 253.0 billion (229.6).
• As of the third quarter, Länsförsäkringar Bank and its subsidiaries are subject to consolidation at the sub-group level (sub-consolidated basis).
• The Common Equity Tier 1 capital ratio for the Consolidated Situation on 31 December 2020 amounted to 16.7% (16.4*) and for the Bank Group to 14.9% (14.3*).
• The number of customers with Länsförsäkringar as their primary bank increased 6% to 586,000 (553,000).
• According to the 2020 Swedish Quality Index customer satisfaction survey, Länsförsäkringar Bank remains the leading player in terms of customer satisfaction among retail customers.
• Länsförsäkringar Bank converted issued debit and credit cards to Mastercard during the year.
   
  Figures in parentheses pertain to the same period in 2019.
  * Pertains to 30 September 2020.

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

   
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 8 February 2021.