Länsförsäkringar Bank: January – June 2021

”Länsförsäkringar Bank reports strong earnings for the quarter and growth in the banking business remains healthy in all segments. This solid performance was largely the result of the bank’s and the regional insurance companies’ sustained efforts throughout the pandemic when we continued to offer customers the security and high level of service that exemplifies Länsförsäkringar. During the quarter, Länsförsäkringar Bank signed the UN Principles for Responsible Banking, meaning that we are clarifying our ambition to meet global sustainability challenges and to work towards the goals of the Paris Agreement as well as the UN Sustainable Development Goals. As a local and customer-owned company, we play a vital role in the transition to a more sustainable society, and we will do our utmost to assist our customers in making sustainable choices. We also intensified our efforts in the digital area whereby the continuing digitisation of the banking operations is creating efficiency in our processes, and new opportunities are adding greater customer value and strengthening the customer experience. By advancing our positions in this field, we are taking further steps towards our goal of being the leading player in the digital area, while maintaining our strong local presence”, says Sven Eggefalk, President of Länsförsäkringar Bank. 

The period in brief, Group

• Operating profit increased 40% to SEK 1,228 M (876.4) and the return on equity strengthened to 10.7% (8.3).
• Net interest income fell 2% to SEK 2,366 M (2,423).
• Net commission, excluding remuneration to the regional insurance companies, increased 27% to SEK 625.2 M (491.5).
• Operating income increased 4% to SEK 2,233 M (2,148).
• Operating expenses increased 4% to SEK 1,086 M (1,040).
• Credit losses amounted to SEK –80.0 M (232.2), net, corresponding to a credit loss level of
  –0.04% (0.13).
• Business volumes increased 19% to SEK 793.1 billion (668.8).
• Deposits rose 8% to SEK 142.1 billion (131.1). Lending increased 11% to SEK 352.7 billion (317.5).
• Fund volumes increased 35% to SEK 298.3 billion (220.2).
• As a consequence of the merger between Länsförsäkringar AB and Länsförsäkringar Sak, Länsförsäkringar Bank’s consolidated situation now comprises the Bank Group.
• The Common Equity Tier 1 capital ratio for the Consolidated Situation* amounted to 14.8% (16.5**) on 30 June 2021.
• Länsförsäkringar Bank signed the UN’s Principles for Responsible Banking in the second quarter.
  
  Figures in parentheses pertain to the same period in 2020.
   
  * As of 30 June 2021, the consolidated situation comprises Länsförsäkringar Bank and its subsidiaries (the Bank Group).
  ** Refers to 31 March 2021. Comprises Länsförsäkringar AB as well as Länsförsäkringar Bank and its subsidiaries.
  
  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

Stefan Karkamanis, Investor Relations, Länsförsäkringar Bank AB
+46 (0)8-588 402 90, +46 (0)72-310 00 80
 

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 21 July 2021 at 12:00 a.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.