Länsförsäkringar Bank (LB) investor relations material

Executive summary

• Operating profit rose 2% year-over-year to SEK 1,198 M, with return on equity stable at 8.1%.

• Business volumes increased 11% to SEK 1,149 billion, driven by growth in mortgages, funds, and deposits.

• The bank captured market share in the mortgage market despite subdued overall credit growth in Sweden.

• Integration of SAVR and digitalisation of mortgage processes are key strategic initiatives.

Financial highlights

• Net interest income declined 2% year-over-year to SEK 2,883 M, but increased 4% sequentially from Q1.

• Net commission income (excluding regional insurance remuneration) increased 17% to SEK 1,030 M.

• Operating income rose 5% to SEK 3,181 M, while operating expenses increased 15% to SEK 1,818 M.

• Net credit losses were positive at SEK -48 M, mainly due to a non-recurring sale of credit-impaired loans.

• Fund volumes grew 21% to SEK 548 billion, with net inflows of SEK 1.5 billion in H1 and SEK 5.5 billion in Q2.

Outlook and guidance

• The bank expects continued growth in the mortgage and savings markets, supported by digitalisation and integration of SAVR.

• Focus remains on cost control and efficiency to ensure long-term competitiveness.

• Macroeconomic uncertainty persists, with potential risks from geopolitical tensions and monetary policy shifts.