Highlights

 

  • The bank posted a pre-tax profit of DKK 15 million in Q2 2016, against a loss of DKK 86 million in Q2 2015. The performance was better than expected and satisfactory.

 

  • Core earnings in the forward-looking activities amounted to DKK 13 million (Q2 2015: DKK 14 million). The forward-looking activities reported a pre-tax profit of DKK 15 million, which was in line with expectations. This marked a DKK 23 million improvement on Q2 2015, which was driven primarily by greater business volume, fewer costs and a better return on the investment portfolio.

 

  • Impairment writedowns on private customers amounted to a reversal of DKK 3 million in Q2 2016, compared with DKK 0 million in Q2 2015.

 

  • The bank’s underlying activities continue to develop favourably with an increase in the level of activity. Year on year, the number of full-service customers increased by 13%, and the portfolio of Totalkredit loans for which the bank acted as intermediary grew by 19%.

 

  • The winding-up activities produced a break-even result in Q2 2016, marking a significant improvement of DKK 78 million on Q2 2015. The performance was better than expected.

 

  • Impairment writedowns in the winding-up portfolio amounted to DKK 13 million in Q2 2016, compared with DKK 62 million in the year-earlier period.

 

  • The bank expects to generate a pre-tax profit of about DKK 50 million in the forward-looking activities, marking a downward adjustment of DKK 20 million. The guidance for the bank’s winding-up activities is lifted by DKK 25 million to a pre-tax loss of DKK 25-50 million.

 

Other highlights

 

  • Income from the forward-looking activities increased by 4% to DKK 140 million in Q2 2016, against DKK 135 million in Q2 2015. The improvement was attributable to higher income from the bank’s leasing portfolio.

 

  • Costs related to the forward-looking activities amounted to DKK 91 million in Q2 2016, which was 1% or DKK 1 million lower than the DKK 92 million reported in Q2 2015.

 

  • Value adjustments produced a loss of DKK 1 million in Q2 2016, against a loss of DKK 22 million in Q2 2015.

 

  • In Q2 2016, the bank reduced the winding-up portfolio by DKK 36 million adjusted for losses and writedowns. The reduction of the winding-up portfolio is generally progressing better than expected.

 

  • At 30 June 2016, the bank had excess liquidity of DKK 3.0 billion, corresponding to an excess cover of 288% relative to the statutory requirement. The excess cover increased by DKK 0.3 billion in Q2.

 

  • At 30 June 2016, the bank’s total capital stood at DKK 1.4 billion, and the total capital ratio was 20.1. The bank’s individual solvency need was calculated at 13.8%, and the bank thus had an excess cover of 6.3 percentage points. The banking group had a total capital ratio of 18.7, and the individual solvency need was calculated at 13.5%. The banking group thus had an excess cover of 5.2 percentage points.

 

Contact

 

Please direct any questions regarding this announcement to:

Kim Bai Wadstrøm, Managing Director, tel. +45 35 47 70 14, or Susanne Biltoft, Head of Information and Investor Relations, tel. +45 35 47 76 61.

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