Länsförsäkringar Bank, Interim report january – march 2005

4/26/2005 5:00 AM EST

“I am pleased to state that operations are developing in accordance with our established strategy and earnings are at the anticipated level. We are continuing our efforts to achieve increased growth while maintaining a high level of cost efficiency. It also worth mentioning that borrowing costs have declined as a result of our improved credit rating. Mortgage operations are growing and customers are broadening their dealings with the bank, primarily by opening salary accounts and ordering credit/debit cards. We are intensifying our efforts to develop mutual fund services as part of our banking offer, in parallel with improved growth in our funds. Länsförsäkringar is conducting a major advertising campaign during the spring, aimed at raising awareness of Länsförsäkringar as a bank”, says Tomas Johansson, President and CEO, Länsförsäkringar Bank.

Summary
• Operating income amounted to SEK 50.8 M (31.9) before loan losses and SEK 34.4 M
(28.0) after loan losses.
• Revenue was up 13% to SEK 315.0 M (278.5). Administration expenses increased
by 7% to SEK 264.3 M (246.6).
• Net interest income rose by 20% to SEK 218.9 M (182.9).
• Return on equity after standard tax was 4.0% (4.1).
• Lending to the public increased by 28% to SEK 40.9 billion (32.0). Deposits from the
public rose by 5% to SEK 19.1 billion (18.1).
• Mortgage lending by the subsidiary Länsförsäkringar Hypotek rose by 42% to
SEK 25.4 billion (17.9).
• The bank received a capital contribution of SEK 150 M in the form of an unconditional
shareholders’ contribution.
• Capital adequacy was 11.54% (11.99) and the Tier 1 ratio 9.04% (9.11).
• Länsförsäkringar gained 40,000 new bank customers since March 2004, bringing the
total number of bank customers to 579,000 (539,000).

Figures in parentheses pertain to January–March 2004.

You will find the full report at: www.lansforsakringar.se/info/in_english

For further information, contact:

Tomas Johansson, CEO Länsförsäkringar Bank +46 8 588 419 82
  +46 73 96 419 82

Christer Baldhagen, Senior Vice President +46 8 588 415 01
Corporate Communications +46 70 579 70 66