Länsförsäkringar Bank: January-September 2023

”The third quarter remained dominated by a high level of global uncertainty and continuing fiscal austerity by the central banks. Although inflation in Sweden has clearly started to decline and we can now start to see a peak in interest rates, the high interest-rate levels are expected to continue for some time to come. Macroeconomic sentiment was more negative, with GDP starting to fall, unemployment rising slightly and continuing focus on the risks in the commercial property sector.
In such a climate, it is reassuring to be a bank with low risks, diversified business and the strength of our local profile close to customers and roots in non-life insurance. We have a very small share of commercial property lending and maintained a very high level of credit quality. We are standing strong in uncertain times and can direct our full attention to supporting our customers with financial services and advice in order to create financial security and opportunities.
It is very gratifying that Länsförsäkringar Bank again topped the Swedish Quality Index’s SKI Bank customer satisfaction survey. We came first in the sustainability index ranking and second in the customer satisfaction ranking of retail customers in Sweden, which we see as confirmation that customers appreciate our customer-centric profile and our local focus.
House prices were stable in the quarter, with the market continuing to feature low turnover and low volume growth. At the same time, we continued to successfully capture market shares and now have more than SEK 300 billion in mortgage loans in our loan portfolio. Our savings offering also performed well with healthy growth in fund volumes driven by a strong net inflow and successful fund management.
Our financial position remains very strong, which can also be seen in the EBA’s stress tests of the European banking sector published in July. Länsförsäkringar Bank was the best of all European banks in terms of the bank that would experience the least impact on Common Equity Tier 1 capital in the most negative scenario. This was despite the scenarios for the Swedish market being more difficult than for the European average.
We stand strong with our continuing strong earnings, very high credit quality and committed employees, and this provides an important foundation for our long-term growth and our opportunities to assist customers with their private finances and financial topics”, says Sven Eggefalk, President of Länsförsäkringar Bank

The period in brief, Group:

• Operating profit rose 5% to SEK 1,703 M (1,629) and the return on equity amounted to 8.6% (8.7).
• Net interest income increased 40% to SEK 5,232 M (3,728).
• Net commission income, excluding remuneration to the regional insurance companies, increased 3% to SEK 1,060 M (1,025).
• Operating income increased 10% to SEK 4,005 M (3,654).
• Operating expenses increased 12% to SEK 1,935 M (1,728).
• Credit losses amounted to SEK 73 M (46), net, corresponding to a credit loss level of 0.02% (0.02).
• Operating profit was impacted by fees levied of SEK 293 M (251) during the period, of which risk tax comprised SEK 190 M (158).
• Business volumes increased 8% to SEK 864 billion (802).
• Lending increased 4% to SEK 378 billion* (364).
• Deposits declined 4% to SEK 150 billion (156).
• Fund volumes increased 19% to SEK 336 billion (282).
• The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 15.0% (14.7**) on 30 September 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.

** Refers to 30 June 2023.

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

Martin Rydin, 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 27 October 2023 at 12:00 p.m. CEST
 

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.