Länsförsäkringar Bank: Interim report January – June 2008

8/25/2008 5:30 AM EST

“The operations continued to grow in almost all areas. Our first-lien mortgages for agricultural and forestry properties remained highly successful and we are growing in the market. Although declining share prices had a negative impact on net commission, earnings improved as a result of increased volumes. The quality of our credit portfolio remained excellent and liquidity was high. The banking operations are becoming an increasingly significant part of the regional insurance companies, which is creating favorable conditions for a strong total offering and secure growth. The number of household financing customers increased steadily and a growing number are also full-service customers with Länsförsäkringar, which is gratifying”, says Anders Borgcrantz, Acting President of Länsförsäkringar Bank.


Summary
Profit before loan losses amounted to SEK 151 M (133) and operating profit amounted to
SEK 123 M (112).
Income was up 10% to SEK 582 M (527).
Net interest income rose by 15% to SEK 553 M (480).
Operating expenses totaled SEK 431 M (394).
The cost/income ratio improved to 0.74 (0.75).
Loan losses remained low and amounted to SEK 29 M (21).
Return on shareholders' equity after standard tax amounted to 4.6% (4.8).
Lending to the public was up 20% to SEK 73 billion (61) and deposits from
the public rose by 19% to SEK 32 billion (27).
Mortgage lending in the subsidiary Länsförsäkringar Hypotek increased
by 20% to SEK 51 billion (42).
The number of customers rose to 676,000 (652,000).
Mats Ericsson was appointed the new President of the company and will
assume his position on September 1.

Figures in parentheses pertain to January – June 2007.


The full report is available below.

For further information, contact

Anders Borgcrantz,
Acting President, Länsförsäkringar Bank AB
+46 (0)8-588 412 51
+46 (0)73-96 412 51
 

Mattias Nordin
Finance Manager Länsförsäkringar Bank AB
+46 (0)8-588 409 08
+46 (0)73-96 409 08
 

Christer Baldhagen,
Senior Vice President Corporate Communications Länsförsäkringar AB
+46 (0)8-588 415 01
+46 (0)70-579 70 66