Länsförsäkringar Bank (LB) Q1 2025 earnings summary

Executive summary

• Operating profit increased 8% year-over-year to SEK 626M, with return on equity at 8.7% (8.5%).

• Business volumes grew 6% to SEK 999B, driven by higher fund and mortgage volumes.

• Lending rose 5% to SEK 409B, with continued high credit quality and low credit losses.

• Net interest income declined 11% to SEK 1,504M due to lower investment margin.

• The bank maintained strong market positions despite geopolitical and economic uncertainty.

Financial highlights

• Operating income up 4% year-over-year to SEK 1,500M; operating expenses up 6% to SEK 736M.

• Net commission income (excluding regional insurance remuneration) increased 12% to SEK 450M.

• Credit losses net SEK 33M (0.02% of lending), down from SEK 68M (0.07%).

• Fund volumes up 6% to SEK 436B; deposits up 4% to SEK 155B.

• Cost/income ratio before credit losses and fees at 0.49 (0.48).

Outlook and guidance

• Macroeconomic uncertainty remains high due to global trade tensions and volatile markets.

• Swedish economy expected to grow 1.7% in 2025, but new US tariffs may dampen exports.

• No further Riksbank rate cuts expected in the near term; recovery signs in housing market.