Länsförsäkringar Bank: January-March 2024

”The first quarter of the year remained dominated by positive sentiment in the financial markets, at the same time as several underlying economic factors continued to show clear signs of a recession. Inflation in Sweden is continuing to decline and the Riksbank’s monetary policy tightening is expected to start to ease during the year. High geopolitical instability is continuing to affect the world and the outlook for the year.
It is reassuring that we are 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 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.
In the housing market, house prices stabilised and rose slightly in the first quarter, in a market of low turnover and low volume growth. We remained successful and continued to capture the most market share in mortgages again this quarter, which indicates that customers appreciate our offering. Our savings offering also started the year with a very strong trend in the fund business, driven by a strong net inflow and successful management.
We are continuing our work against financial crime by taking action and informing customers in both bank-wide campaigns and local activities. At the same time, we continued to allocate resources to the unit at the bank that works to combat financial crime and money laundering, which is of great importance for protecting and safeguarding our customers. It is clear that financial crime has received more and more attention in recent years and is now a major social problem that requires the cooperation of politicians, the authorities and banks.
Our financial position remains very strong, with robust capital and liquidity ratios, and low credit losses. We stand strong with our stable 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 was unchanged at SEK 582 M (582) and the return on equity amounted to 8.5% (9.0).
• Net interest income declined 7% to SEK 1,688 M (1,816).
• Net commission income, excluding remuneration to the regional insurance companies, increased 14% to SEK 403 M (354).
• Operating income increased 15% to SEK 1,447 M (1,262).
• Operating expenses increased 15% to SEK 698 M (605).
• Credit losses amounted to SEK 68 M (-21), net, corresponding to a credit loss level of 0.07% (-0.03), most of which derived from Wasa Kredit.
• Operating profit was impacted by fees levied of SEK 99 M (95) during the period, of which risk tax comprised SEK 65 M (63).
• Business volumes increased 13% to SEK 947 billion (834).
• Lending increased 5% to SEK 387 billion* (370).
• Deposits declined 2% to SEK 148 billion (151).
• Fund volumes increased 31% to SEK 411 billion (314).
• The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 15.0% (15.1**) on 31 March 2024.

Figures in parentheses pertain to the same period in 2023.
*  Loans to the public excluding deposits with the Swedish National Debt Office and similar items.

** Refers to 31 December 2023.
 

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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 24 April 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.