Länsförsäkringar Bank: January-June 2025

”The first half of the year was dominated by geopolitical turmoil, uncertainty about global trade policy and periodic volatility in the financial markets. The uncertain global situation is impacting households and companies, and has resulted in a weaker economic recovery, which contributed to the Riksbank lowering its policy rate again in June. Länsförsäkringar Bank maintains its strong financial position, which, together with our local presence and strong customer focus, enables our continued success. We can see that our local presence and availability are success factors, particularly in uncertain times.
We remained successful in a highly competitive mortgage market and, as of the end of May, we were the player that had captured the largest share of market growth this year. During the quarter, we launched the digital loan process for mortgages on tenant-owned apartments, which will hopefully lead to a better experience for our customers and time-savings for our advisors.
The trend in savings was also strong, with healthy growth in deposit volumes and funds performed well. At the end of the period, the bank agreed to acquire SAVR, which offers a digital platform for trading in funds and shares. The acquisition, which is subject toapproval of the Swedish Financial Supervisory Authority (FSA), strengthens Länsförsäkringar’s position in the savings market and will enable an enhanced customer experience going forward.
We changed the name of Wasa Kredit to LF Finans in the second quarter to more clearly include the company in Länsförsäkringar’s customer offering.
Earnings for the period are stable, with net interest income impacted by lower market interest rates, while net commission income continues to perform strongly. Costs are increasing on an annual basis, although this was mainly due to VAT recovered in LF Finans last year, while credit losses remained low.
I would like to extend my sincere thanks to all employees, both locally and at the bank, for your tremendous dedication and contributions to the continuing development of Länsförsäkringar’s banking business. Together we create security and opportunities for our customers, even in challenging times.”, says Martin Rydin, Acting President of Länsförsäkringar Bank

The period in brief, Group:

• Operating profit declined 8% to SEK 1,171 M (1,270) and the return on equity was 8.1% (9.2).
• Net interest income declined 12% to SEK 2,955 M (3,353).
• Net commission income, excluding remuneration to the regional insurance companies, increased 7% to SEK 883 M (828).
• Operating income increased 6% to SEK 3,042 M (2,860).
• Operating expenses increased 24% to SEK 1,575 M (1,271). The comparative period was impacted by a SEK 176 M decrease in costs due to VAT recovered in LF Finans. Excluding this item, the cost increase was 9%.
• Credit losses amounted to SEK 86 M (121), net, corresponding to a credit loss level of 0.04% (0.06), most of which derived from LF Finans.
• Operating profit was impacted by fees levied of SEK 210 M (199) during the period, of which risk tax comprised SEK 137 M (129).
• Business volumes income increased 6% to SEK 1,031 billion (976).
• Lending increased 5% to SEK 415 billion* (394).
• Deposits increased 8% to SEK 164 billion (152).
• Fund volumes increased 5% to SEK 452 billion (430).
• On 30 June, Länsförsäkringar Bank agreed to acquire SAVR AB, which offers a digital trading platform. The acquisition requires approval of the Swedish FSA.
• The Common Equity Tier 1 capital ratio for the Consolidated Situation amounted to 15.0% (15.1**) on 30 June 2025.

Figures in parentheses pertain to the same period in 2024.
* Loans to the public excluding deposits with the Swedish National Debt Office and similar items.

** Refers to 31 March 2025.

Read more

https://www.lansforsakringar.se/financial-bank/

For further information, please contact:

Martin Rydin, Acting President and CFO Länsförsäkringar Bank AB,

+46 (0)8 588 412 79, +46 (0)73 964 28 23

Andreas Larsson, Head of Investor Relations Länsförsäkringar Bank AB,

+46 (0)10 498 70 29, +46 (0)720 84 36 34

This report contains such information that Länsförsäkringar Bank AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication on 22 July 2025 at 12:00 p.m. CEST.

The Länsförsäkringar Alliance is comprised of 23 local and customer-owned regional insurance companies and the jointly owned Länsförsäkringar AB. Customers are provided with a complete offering of banking and life and non-life insurance services through their local, regional insurance companies. We offer animal and crop insurance through Agria Djurförsäkring, total solutions for reliable mortgage transactions through Länsförsäkringar Fastighetsförmedling, and financing services such as leasing, instalment payments, and loans through LF Finans.

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