Länsförsäkringar Bank (LB) investor relations material

Executive summary

• Operating profit rose 9% year-over-year to SEK 684 M, with return on equity at 9.3% versus 8.7% last year.

• Business volumes increased 7% to SEK 1,071 billion, driven by growth in mortgages, funds, and deposits.

• Net interest income declined 6% year-over-year to SEK 1,416 M, while net commission income (excluding regional insurance remuneration) grew 12%.

• Operating expenses increased 19% due to the integration of telephone banking and the SAVR acquisition.

• Credit losses were positive at SEK -100 M, mainly from the sale of credit-impaired loans.

Financial highlights

• Operating income increased 3% year-over-year to SEK 1,544 M.

• Net interest income fell 6% to SEK 1,416 M, while net commission income rose to SEK 504 M (excluding regional insurance remuneration).

• Operating expenses rose to SEK 873 M, up 19% year-over-year.

• Credit loss level was -0.09% compared to 0.02% last year.

• Profit for the period was SEK 532 M, up 9% year-over-year.

Outlook and guidance

• The bank expects continued growth opportunities, especially in savings, supported by the integration of SAVR and ongoing digitalization.

• Geopolitical and macroeconomic uncertainty, particularly due to the war in Iran, is being monitored, but current impacts are limited.