Länsförsäkringar Bank (LB) investor relations material

Executive summary

• Operating profit for January–June 2025 declined 8% year-over-year to SEK 1,171 M, with return on equity at 8.1% compared to 9.2% last year.

• Net interest income fell 12% to SEK 2,955 M, mainly due to lower market interest rates, while net commission income (excluding regional insurance remuneration) rose 7% to SEK 883 M.

• Operating income increased 6% to SEK 3,042 M, driven by improved commission income; operating expenses rose 24% due to a one-off VAT recovery in the prior year, with underlying cost growth at 9%.

• Credit losses remained low at SEK 86 M, corresponding to a credit loss level of 0.04%, with high credit quality maintained.

• Business volumes grew 6% to SEK 1,031 billion, with lending up 5% and deposits up 8% year-over-year.

Financial highlights

• Net interest income for the group was SEK 2,955 M, down 12% year-over-year; net commission income (excluding regional insurance remuneration) was SEK 883 M, up 7%.

• Operating expenses increased 24% to SEK 1,575 M, mainly due to the absence of last year's SEK 176 M VAT recovery; excluding this, expenses rose 9%.

• Credit losses amounted to SEK 86 M, down from SEK 121 M, with a credit loss level of 0.04%.

• The cost/income ratio before credit losses and fees levied was 0.52, compared to 0.44 last year.

• Common Equity Tier 1 capital ratio for the consolidated situation was 15.0% as of 30 June 2025.

Outlook and guidance

• The economic outlook remains uncertain due to geopolitical turmoil, global trade policy uncertainty, and volatile financial markets.

• The Swedish economy is expected to improve in 2025, but growth will be lower than previously forecast; inflation remains slightly high but is trending downward.

• The acquisition of SAVR AB, a digital trading platform, is expected to strengthen the bank's position in the savings market, pending regulatory approval.