Länsförsäkringar Bank: January-June 2024

"Sentiment remained positive in financial markets through the first half of the year. Swedish inflation continued to fall, which led to the Riksbank making its first much anticipated interest-rate cut in the second quarter. We also noted that the high level of geopolitical instability and election-related uncertainty in several countries with significant economies continued to impact the operating environment.
In light of this uncertain backdrop, we are proud of how we have successfully continued to develop our banking operations. We are clearly advancing our positions both in savings and in lending. It is gratifying that we remain successful in mortgages, where we continued to capture the largest share of market growth as of May. Savings posted another quarter with a strong net inflow, which was partly due to successful fund management and proactive advice. It is clear that customers appreciate our offering and Länsförsäkringar’s strong local presence.
The favourable business performance is also reflected in the stable results we are presenting. We are pleased that net commission income reported a strong trend and is continuing to diversify our income, while credit quality is very high and our financial position is very strong.
With all the media attention in recent months, few will have missed that financial crime and fraud have become problems for society. We feel a great sense of responsibility to protect our customers and continue our efforts to counter this type of crime. We are continuously taking action, with an intense focus on informing customers, while at the same time we are actively participating in bank-wide initiatives and cooperation with the authorities. Unfortunately, it is inevitable that some of the measures we are taking to improve customer protection result in necessary restrictions and, in some cases, restricted access for customers.
It is reassuring and a source of pride that we are a bank with low risks, diverse business, committed employees 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.”, says Sven Eggefalk, President of Länsförsäkringar Bank

The period in brief, Group:

• Operating profit rose 12% to SEK 1,270 M (1,130) and the return on equity amounted to 9.2% (8.6).
• Net interest income declined 5% to SEK 3,353 M (3,515).
• Net commission income, excluding remuneration to the regional insurance companies, increased 20% to SEK 828 M (691).
• Operating income increased 9% to 2,860 M (2,627).
• Operating expenses declined 1% to SEK 1,271 M (1,280), including a cost reduction of SEK 176 M due to recovered VAT in Wasa Kredit. Excluding this item, expenses increased 13%.
• Credit losses amounted to SEK 121 M (21), net, corresponding to a credit loss level of 0.06% (0.01), most of which derived from Wasa Kredit.
• Operating profit was impacted by fees levied of SEK 199 M (196) during the period, of which risk tax comprised SEK 129 M (127).
• Business volumes increased 12% to SEK 976 billion (870).
• Lending increased 5% to SEK 394 billion* (375).
• Deposits declined 1% to SEK 152 billion (153).
• Fund volumes increased 26% to SEK 430 billion (342).
• The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 15.0% (15.0**) on 30 June 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 March 2024.
 

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 19 July 2024 at 12:00 p.m. CET.