Länsförsäkringar Bank (LB) investor relations material

Executive summary

• Operating profit declined 8% to SEK 2,107 M year-over-year, mainly due to non-recurring expense items including impairments and prior year VAT recovery.

• Return on equity decreased to 7.2% from 8.1% year-over-year.

• Business volumes grew 5% to SEK 1,082 billion, with lending and deposits both up 5%.

• Customer satisfaction remained high, and the bank captured market share in mortgages.

• Acquisition of SAVR completed in Q3, enhancing the savings offering.

Financial highlights

• Net interest income fell 12% to SEK 5,810 M due to a lower investment margin from falling market rates.

• Net commission income (excluding regional insurance remuneration) rose 6% to SEK 1,827 M.

• Operating income increased 8% to SEK 6,105 M, driven by improved commission income.

• Operating expenses rose 23% to SEK 3,414 M, with a 12% increase excluding non-recurring items.

• Credit losses dropped to SEK 143 M, with a credit loss level of 0.03%.

Outlook and guidance

• The Board proposes a dividend of SEK 577 M for 2025.

• The bank remains well-capitalized and positioned for continued growth, with ongoing investments in IT and digitalization.