Länsförsäkringar Bank: Year-end Report 2024

”Länsförsäkringar’s banking operations continued to be successful over the past year, and reported a stable performance in what is undoubtedly an uncertain global backdrop. Our growth journey over time means that our total business volumes now exceed a full SEK 1,000 billion - this is a milestone that we are proud to have achieved. Inflation in Sweden fell during the year, which led to the Riksbank making a number of interest rate cuts. Hopefully, falling interest rates can have a positive effect on the economic activities and the economic climate in the future.
The mortgage market has seen a relatively low level of activity with limited growth and continuing intense competition. In light of this, it is pleasing to confirm that we were successful in securing the second largest share of market growth and are thus continuing to capture market shares.
The trend in savings was also very strong, featuring healthy volume growth with significant inflows to our funds together with successful asset management. It was very pleasing that we could report the largest net inflow of all fund companies in the Swedish market during the year. Deposits were stable, with growth in the second half of the year.
Our strong volume growth was largely due to Länsförsäkringar’s strong local presence and our customer focus. In September, the Swedish Quality Index published its annual customer satisfaction survey for banks, and we are pleased to announce that among retail customers, we have the highest customer satisfaction of the companies listed. Customer satisfaction is also strong in savings, and we are now ranked third in the savings category. We are convinced that high customer satisfaction is one of the reasons why we have been able to successfully continue growing our banking operations.
The healthy growth in our business is also reflected in our continued stable earnings. The trend in net commission income was strong during the year and is continuing to diversify our income and largely offset our lower net interest income.
Our credit quality remains very high and our overall financial position is strong. We are maintaining a fast pace of development and continuously working to ensure that we have a relevant and attractive offering for our customers. During the quarter, we continued the important work of strengthening customer protection and combating fraud, which is an increasing problem for society. I am very proud of the efforts of our employees both at the bank and locally. In summary, we are standing strong and can devote our full attention to creating security and opportunities for our customers.”, says Sven Eggefalk, President of Länsförsäkringar Bank.

The periode in brief, Group: 

• Operating profit rose 6 % to SEK 2,290 M (2,168) and the return on equity amounted to 8.1% (8.1).
• Net interest income declined 6 % to SEK 6,632 M (7,023).
• Net commission income, excluding remuneration to the regional insurance companies, increased 23 % to SEK 1,723 M (1,405).
• Operating income increased 2 % to SEK 5,653 M (5,542).
• Operating expenses declined 3 % to SEK 2,784 M (2,869), including VAT of SEK 176 M recovered in Wasa Kredit in the second quarter. Excluding this non-recurring item, expenses increased 9 %.
• Credit losses amounted to SEK 181 M (114), net, corresponding to a credit loss level of 0.04 % (0.03), most of which derived from Wasa Kredit.
• Operating profit was impacted by fees levied of SEK 398 M (391) during the period, of which risk tax comprised SEK 258 M (254).
• Business volumes increased 15 % to SEK 1,034 billion (901).
• Lending increased 5 % to SEK 403 billion* (382).
• Deposits increased 3 % to SEK 155 billion (151).
• Fund volumes increased 29 % to SEK 475 billion (368).
• A Group contribution of SEK 455 M gross and SEK 361 M net after tax was paid at year-end. The Board proposes a dividend for 2024 of SEK 288 M.
• The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 15.3 % (15.4**) on 31 December 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 30 September 2024.

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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