Länsförsäkringar Bank: January – March 2020

”The ongoing outbreak of coronavirus has, in a short space of time, impacted all of Swedish society and in particular the global economy. Both companies and private individuals are facing a type of crisis that we have never experienced before, and there is great uncertainty about how drawn out it will be. Fundamental factors have been changed to their very core and it is difficult to predict the long-term economic effects. However, in this context we can say that Länsförsäkringar Bank has a stable financial position and is well-prepared to manage this critical situation. The banking operations are well capitalised and liquidity is very strong, making the bank resilient. Our strong position combined with our local presence creates solid conditions for supporting our customers. Länsförsäkringar’s strategy of creating security and opportunities for our customers adapts well even to this situation. Measures have been taken to ensure a high level of availability for customers and we are working intensely to continue to offer the security and excellent service that Länsförsäkringar is known for. We are monitoring developments and are in continuous dialogue with the authorities to ensure that we can quickly adapt our operations to the conditions of our customers and markets”, says Sven Eggefalk, President of Länsförsäkringar Bank.

The period in brief, Group

• Operating profit declined 7% to SEK 455.9 M (492.8) and the return on equity amounted to 8.7% (10.2).
• An additional loss allowance of SEK 85.0 M was made in the period due to the outbreak of COVID-19, of which SEK 70.0 M was attributable to Wasa Kredit.
• Net interest income rose 7% to SEK 1,210 M (1,127).
• Operating income increased 11% to SEK 1,087 M (979.8).
• Operating expenses rose 13% to SEK 518.9 M (457.4).
• Credit losses amounted to SEK 112.1 M (29.6), net, corresponding to a credit loss level of 0.13% (0.04).
• Business volumes rose 7% to SEK 631.9 billion (591.0) at the same time as fund volumes declined due to the outbreak of COVID-19 in the first quarter of 2020.
• Deposits rose 14% to SEK 125.1 billion (109.8). Lending increased 6% to SEK 311.3 billion (294.3).
• The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 15.8% (15.4*) on 31 March 2020.
• The number of customers with Länsförsäkringar as their primary bank increased 6% to 563,000 (529,000).
• According to the 2019 Swedish Quality Index customer satisfaction survey, Länsförsäkringar Bank has the banking market’s most satisfied retail and corporate customers.

 
Figures in parentheses pertain to the same period in 2019.
* Pertains to 31 December 2019.  

 
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 28 April 2020.
 
 
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.