Länsförsäkringar Bank: Year-end Report 2023

” We can summarise a year in which the final quarter was dominated by positive sentiment in the financial markets, at the same time as numerous underlying factors continued to show clear signs of a recession. Inflation in Sweden is declining and the Riksbank’s fiscal austerity should start to ease moving forward. Meanwhile, GDP has fallen and unemployment has risen slightly, which contributed to continuing uncertainty. Added to this, we have growing geopolitical instability and an ongoing threat to the climate, which means it is easy to understand that households and companies are uncertain about the future.
In a year like this, it is particularly reassuring to be a bank with low risks, diverse business and the strength of our local profile, close to customers and with roots in non-life insurance. We maintain a very high level of credit quality and the share of commercial property lending is very small. 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 sustainable financial security and opportunities.
Therefore, it is very gratifying that Länsförsäkringar Bank again topped the Swedish Quality Index’s SKI Bank customer satisfaction survey. We see our first place in the SKI sustainability index ranking and in consumer loans, together with high rankings both in mortgages and in savings for retail customers, as confirmation that customers appreciate our customer-centric profile and our local focus.
House prices remained stable in the fourth quarter, in a market that continues to feature low turnover and low volume growth. At the same time, we continued to be successful and capture the highest market shares. Viewed in terms of the full-year, we captured the highest volume of all banks, indicating that customers appreciate our offering.
Our savings offering also performed well with a very strong performance in funds, driven by a strong net inflow after capturing the highest market share, and successful management. Our financial position remains very strong, with robust capital and liquidity key figures. During the quarter, we also received a positive outlook for our credit rating from S&P when Länsförsäkringar AB secured a positive outlook rating.
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 2,168 M (2,067) and the return on equity amounted to 8.1% (8.2).
• Net interest income increased 27% to SEK 7,023 M (5,528).
• Net commission income, excluding remuneration to the regional insurance companies, increased 6% to SEK 1,405 M (1,329).
• Operating income increased 10% to SEK 5,542 M (5,033).
• Operating expenses increased 14% to SEK 2,869 M (2,510), including an impairment of intangible assets of SEK 165 M (0). Excluding this impairment, operating expenses increased 8%.
• Credit losses amounted to SEK 114 M (123), net, corresponding to a credit loss level of 0.03% (0.03).
• Operating profit was impacted by fees levied of SEK 391 M (333) during the period, of which risk tax comprised SEK 254 M (212).
• Business volumes increased 10% to SEK 901 billion (820).
• Lending increased 4% to SEK 382 billion* (367).
• Deposits declined 2% to SEK 151 billion (153).
• Fund volumes increased 23% to SEK 368 billion (299).
• A Group contribution of SEK 200 M gross and SEK 159 M net after tax was paid at year-end. The Board proposes a dividend for 2023 of SEK 241 M.
• The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 15.1% (15.0**) on 31 December 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 September 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 9 February 2024 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 Wasa Kredit.