Länsförsäkringar Bank (LB) Q3 2024 earnings summary

Executive summary

• Operating profit rose 11% year-over-year to SEK 1,884 M, with return on equity at 9.0% versus 8.6% last year.

• Net interest income declined 5% to SEK 4,980 M, but net commission income (excluding regional insurance remuneration) increased 20%.

• Business volumes reached SEK 1,000 billion, up 16% year-over-year, driven by strong fund and mortgage growth.

• Credit quality remains high, with low credit losses and a stable financial position.

Financial highlights

• Operating income increased 8% to SEK 4,309 M year-over-year.

• Operating expenses rose 2% to SEK 1,967 M, but excluding a SEK 176 M VAT recovery, expenses increased 11%.

• Credit losses were SEK 161 M (0.05% of lending), mainly from Wasa Kredit.

• Fund volumes surged 34% to SEK 450 billion, and deposits grew 2% to SEK 152 billion.

• Common Equity Tier 1 capital ratio for the group was 15.4% at quarter-end.

Outlook and guidance

• Lower inflation and policy rate cuts in Sweden are expected to support economic recovery.

• The bank anticipates continued growth in business volumes and stable earnings, with a focus on customer protection and fraud prevention.