Länsförsäkringar Bank (LB) Q3 2025 earnings summary

Executive summary

• Operating profit for January–September 2025 declined 9% year-over-year to SEK 1,719 million, with return on equity at 7.9% (down from 9.0%).

• Net interest income fell 12% to SEK 4,377 million, mainly due to a lower investment margin from reduced market interest rates.

• Net commission income (excluding regional insurance company remuneration) rose 7% to SEK 1,360 million, driven by fund and card business.

• Operating income increased 5% to SEK 4,510 million, while operating expenses rose 20% (10% excluding last year’s VAT recovery effect).

• The acquisition of SAVR AB was completed, strengthening the digital savings offering.

Financial highlights

• Business volumes grew 5% year-over-year to SEK 1,047 billion, with lending up 5% to SEK 419 billion and deposits up 6% to SEK 162 billion.

• Fund volumes increased 4% to SEK 466 billion, supported by net inflows and positive market trends.

• Credit losses decreased to SEK 115 million (from SEK 161 million), with a credit loss level of 0.03% (0.05%).

• Cost/income ratio before credit losses and fees levied was 0.52 (0.46), and after these items 0.62 (0.56).

• Common Equity Tier 1 capital ratio for the consolidated situation was 14.9% (15.0% as of June 2025).

Outlook and guidance

• The Swedish economy remains weak but shows signs of recovery; the Riksbank lowered its policy rate to 1.75% and signaled the end of the rate cut cycle.

• The bank expects continued stable earnings and business volume growth, with a focus on digital savings and customer experience.