Länsförsäkringar Bank (LB) Q4 2024 earnings summary

Executive summary

• Operating profit increased 6% year-over-year to SEK 2,290M, with return on equity stable at 8.1%.

• Net interest income declined 6% to SEK 6,632M, but net commission income (excluding regional insurance remuneration) rose 23% to SEK 1,723M.

• Business volumes grew 15% to SEK 1,034B, driven by strong fund inflows and mortgage growth.

• Credit quality remained high, with low credit losses and a credit loss level of 0.04%.

• Customer satisfaction ranked highest among retail banks, supporting continued growth.

Financial highlights

• Total operating income increased 2% year-over-year to SEK 5,653M.

• Operating expenses declined 3% to SEK 2,784M, aided by a SEK 176M VAT recovery; excluding non-recurring items, expenses rose 9%.

• Net gains from financial items amounted to SEK 28M, up from SEK -1M last year.

• Fund volumes surged 29% to SEK 475B, with net inflows of SEK 34B.

• Lending increased 5% to SEK 403B, and deposits rose 3% to SEK 155B.

Outlook and guidance

• The economic outlook in Sweden is improving, with inflation near target and further interest rate cuts expected in 2025.

• The mortgage market remains competitive but is showing signs of recovery, with expectations of rising house prices in 2025.

• The bank aims to maintain strong credit quality and customer focus amid ongoing macroeconomic uncertainty.