Highlights

 

  • The bank generated a pre-tax profit of DKK 15 million in Q3 2016, against a loss of DKK 79 million in Q3 2015. The performance was better than expected and satisfactory.

 

  • The forward-looking activities generated a pre-tax profit of DKK 24 million, which was better than expected. The performance was a year-on-year improvement of DKK 21 million, driven primarily by greater business volume, fewer costs and a better return on the investment portfolio.

 

  • Impairment writedowns on private customers amounted a reversal of DKK 8 million in Q3 2016, compared with impairment writedowns of DKK 5 million in Q3 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 18%.

 

  • The winding-up activities reported a loss of DKK 9 million in Q3 2016, marking a significant improvement of DKK 73 million on the year-earlier period. The performance was better than expected.

 

  • Impairment writedowns in the winding-up portfolio amounted to DKK 24 million in Q3 2016, compared with DKK 74 million in Q3 2015.

 

  • The bank expects to generate a full-year profit of about DKK 50 million before tax in the forward-looking activities, which is unchanged from the guidance provided in the H1 report. The outlook for the bank’s winding-up activities is lifted by about DKK 25 million as compared with the guidance provided in the H1 report for a loss of DKK 25-50 million.

 

Other highlights

 

  • Income from the forward-looking activities fell by 8% to DKK 133 million in Q3 2016, against DKK 144 million in Q3 2015. The decline was due to lower interest income resulting from the planned reduction of the bank’s own portfolio of bonds and lower yields on the bonds held in the bank’s own portfolio.

 

  • For the forward-looking activities, costs amounted to DKK 88 million in Q3 2016, which was on a par with the year-earlier period.

 

  • Core earnings in the forward-looking activities amounted to DKK 7 million, against DKK 26 million in Q3 2015. The decline was due to the fact that a large part of the Q3 earnings of Financial Markets were attributable to value adjustments, which do not form part of core earnings. Moreover, Private reported lower income from funding of the bank’s winding-up activities.

 

  • Value adjustments in the forward-looking activities produced a gain of DKK 9 million in Q3 2016, against a loss of DKK 18 million in Q3 2015.

 

  • In Q3 2016, the bank reduced the winding-up portfolio by DKK 25 million adjusted for losses and writedowns. The reduction of the winding-up portfolio is generally progressing better than expected.

 

  • At 30 September 2016, the bank had excess liquidity of DKK 2.7 billion, corresponding to an excess cover of 268% relative to the statutory requirement. The excess cover fell by DKK 0.4 billion in the quarter.

 

  • At 30 September 2016, the bank’s total capital stood at DKK 1.4 billion, and the total capital ratio was 20.9. The bank’s individual solvency need was calculated at 13.7%, and the bank thus had an excess cover of 7.2 percentage points. The banking group had a total capital ratio of 19.8, and the individual solvency need was calculated at 13.6%. The banking group thus had an excess cover of 6.2 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.

Load More Related Articles
Load More In WRIN.tv Newswire

Check Also

Guy Carpenter & RAA Execs on CAT Losses, Elections, & (Re)Insurance Markets

In this edition of CEO Angles, AAIS CEO Ed Kelly welcomes Guy Carpenter Chairman David Pri…