STOCKHOLM, Sweden, Dec. 18, 2003 (PRIMEZONE) -- The Board of Directors of Lansforsakringar Bank has decided to increase the target level for capital adequacy as well as to establish a target level for the tier 1 ratio. The new target levels were set at 10.5 percent for capital adequacy and 8.5 percent for the tier 1 ratio, with a possible variation of +/-0.5 percentage points. Today, the parent company, Lansforsakringar AB, provided an unconditional shareholder contribution of SEK 250 M and a core capital contribution of SEK 290 M as well as a dated subordinated debenture loan of SEK 580 M. The dated debenture loan has a term of 10 years.
Pro forma at September 30, 2003, the Bank's tier 1 ratio was 10.6 percent and the total capital adequacy was 13.9 percent.
"This measure demonstrates the owner's ambition to secure the Bank's future financial position. The increase is the result of the Bank's increased activity in the mortgage lending market and as an issuer on the capital market. The intention is to further strengthen the Bank's market position," says Tomas Johansson, President, Lansforsakringar Bank.
For additional information, contact:
Tomas Johansson, President, Lansforsakringar Bank +46 (0)8-588 419 82, +46 (0)73-964 19 82 tomas.g.johansson@lansforsakringar.se
Anders Borgcrantz, Executive VP, Lansforsakringar Bank +46 (0)8-588 412 51, +46(0)73-964 12 51 anders.borgcrantz@lansforsakringar.se
Mikael Ostlund, Vice President Corporate Communications, Lansforsakringar +46 (0)8-588 410 94, +46 (0)70-553 12 82 mikael.ostlund@lansforsakringar.se
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