The Copenhagen Stock Exchange P.O. Box 1040 DK-1007 Copenhagen K Managing Director Frank Kristensen Torvet 4-5 DK-7620 Lemvig Tel +45 96 63 21 01 Fax +45 96 63 20 29 fk@vestjyskbank.dk 1 May 2007 vestjyskBANK Quarterly Report for the 1st Quarter of 2007 High earning levels have been maintained with a realised profit of DKK 85m before tax. vestjyskBANK - profit for the 1st quarter of 2007 - DKK 85m before tax High earning levels have been maintained with a realised profit of DKK 85m before tax Increase in interest income and fee earnings of 10.0% Continuous increase in business volume: Loans and advances + 28%, deposits + 13% and guarantees + 5% Costs, incl. depreciation and impairment on assets, have increased by DKK 13m to DKK 91m, corresponding to 17.8%. A lower level is expected for the total annual cost development. The cost percentage is calculated at 55%, which fulfils the bank's long-term goal for a cost percentage of approximately 55% Impairment on loans and advances and accounts receivable, etc. constitute a total net reversal of DKK 4m, which is an improvement of DKK 11m compared to 2006 Return on average shareholders' equity of 21.2% p.a. Solvency excluding profit for the period is calculated at 10.2% The previously announced profit forecast for 2007 of DKK 280m before tax is on course SUMMARY For vestjyskBANK the Quarterly Report shows a very satisfactory development in both business volume and earnings. At the end of the 1st quarter of 2007, the cost percentage has been calculated at 55.1 compared with 54.7 at the end of the 1st quarter of 2006, a negative development of 0.4 percentage points. At the end of the 1st quarter, the bank's loans and advances amounted to DKK 12.4bn, deposits to DKK 8.2bn and guarantees to DKK 4.5bn. At the end of the 1st quarter, the total business volume increased by 19% compared with the 1st quarter of 2006, a development covering an increased activity level and business volume with both existing and new corporate and retail customers. FINANCIAL REPORTING Net interest income amounted to DKK 118m, compared with DKK 102m in 2006. This is an improvement of 15%, which can be attributed to the continuously increasing business volume. Altogether, fees and commission income have decreased by DKK 3m to DKK 33m, a decline of 7%. The decline is due to a DKK 1m increase in guarantee provisions, which is attributable to the facilitation of mortgage credit loans and a decrease in other fees, which is the result of a lower level of activity. Fees and commission income are distributed as follows: -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | DKK m | Percentage distribution | -------------------------------------------------------------------------------- | Q1 2007 | Q1 2006 | Q1 2007 | Q1 2006 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Guarantee commission | 9.6 | 8.7 | 29.4 | 24.8 | -------------------------------------------------------------------------------- | Securities trading and | 9.4 | 11.7 | 28.9 | 33.4 | | custody | | | | | -------------------------------------------------------------------------------- | Other fees and | 6.1 | 6.7 | 18.8 | 19.1 | | commissions | | | | | -------------------------------------------------------------------------------- | Payment services | 4.2 | 4.1 | 12.8 | 11.6 | -------------------------------------------------------------------------------- | Loan handling fees | 3.3 | 3.8 | 10.1 | 11.1 | -------------------------------------------------------------------------------- Net interest income and fee earnings amounted to DKK 148m compared with DKK 134m in 2006, an increase of 10%. Market value adjustments show a profit of DKK 24m against DKK 17m in 2006. Costs, incl. depreciation and impairment on material assets, amounted to DKK 91m against DKK 77m in 2006, corresponding to an increase of 17.8%. The relatively high cost increase for the 1st quarter of 2007 is due to non-recurrent costs incurred as well as an increasing activity level. The bank expects that total annual costs will stay within budget, corresponding to a cost percentage of approximately 55%. Impairment on loans and advances and accounts receivable, etc. amounted to a total net reversal of DKK 4m, compared with an expenditure of DKK 7m in 2006. The quality of the bank's portfolio of loans and advances and guarantees is good. At the end of the 1st quarter, the account for impairment amounted to DKK 219m, corresponding to 1.3% of total loans and receivables, impairment and guarantees. Solvency amounted to 10.2%, a decline of 0.1 percentage point compared with the end of the 1st quarter of 2006. At the end of the 1st quarter of 2007, the bank acquired subordinated loan capital of DKK 100m in the form of a bond loan. BALANCE SHEET The bank's balance at the end of the 1st quarter amounted to DKK 15.2bn against last year's DKK 11.9bn, corresponding to an increase of 28%. Total loans and advances reached DKK 12.4bn, which is an increase of DKK 2.8bn or 28%. The increase is due especially to growth in loans and advances within the business sectors where vestjyskBANK is especially competent - wind turbines, property projects, agriculture and camping sites. Deposits rose from DKK 7.2bn in 2006 to DKK 8.2bn in 2007 - an increase of 13%. The bank's portfolio of guarantees has risen from DKK 4.2bn to DKK 4.5bn, or by 5%. In total, this means that the bank's scope of business - a total of loans and advances, deposits and guarantees - amounted to DKK 25.1m as of 31 March 2007, compared with DKK 21.2bn at the end of the 1st quarter in 2006, corresponding to a growth of 19%. SHAREHOLDERS' EQUITY After the addition of the profit for the period after tax, shareholders' equity at the end of the 1st quarter has been calculated at DKK 1.6bn. THE NEW CAPITAL ADEQUACY REQUIREMENTS With effect from 1 January 2007, new capital adequacy requirements were introduced for calculating credit, market and operational risks. The bank uses the standard method for credit and market risks, as well as the basic indicator method for operational risks. The bank has decided to follow the transition requirements until 1 January 2008. RECOGNITION AND MEASURING Due to the fact that the bank's systems and models have not yet been brought into full conformity with the specific accounting rules, the bank has made some qualified estimates regarding the recognition and measuring of impairment on loans and advances, etc. This particularly applies to the group wise impairment made on loans and advances, etc. Data deficiencies and the resultant estimates are considered not to have any major impact on the evaluation of the Quarterly Report. There are no other uncertainties associated with recognition and measuring. OUTLOOK FOR 2007 The profit for the 1st quarter amounted to DKK 20m above the budgeted forecast, which is primarily attributable to a positive development in the items "Market value adjustments" and "Impairment on loans and advances and other accounts receivable". The profit forecast for 2007 of approximately DKK 280m before tax continues to apply. However, this assumes that no essential, cyclically induced effects will arise in relation to market value adjustments and the need for impairment on loans and advances and guarantees. ACCOUNTING POLICIES With effect from 1 January 2007, vestjyskBANK merged its fully owned subsidiary vestjyskBOLIG A/S with vestjyskBANK A/S. The comparative financial statements for 2006 have been adapted. The accounting policies have not changed in relation to last year. FINANCIAL CALENDAR 2007 15 August 2007 Half-yearly report for 2007 30 October 2007 Q1 - 3 reports for 2007 STATEMENT OF THE BOARD OF DIRECTORS AND THE EXECUTIVE MANAGEMENT The Board of Directors and the Executive Management have reviewed and approved the Quarterly Report of Vestjysk Bank A/S for the period 1 January - 31 March 2007. The Quarterly Report has been prepared in accordance with the Danish Financial Business Act. Furthermore, the Report has been prepared in accordance with other Danish disclosure requirements for listed companies. The accounting policies selected are considered appropriate, inasmuch as the Quarterly Report provides a fair view of the bank's assets, liabilities, financial position and profit. The Quarterly Report has not been audited or reviewed. Lemvig, 1 May 2007 Executive Management Frank Kristensen Board of Directors Anders Bech Peter Grankær Søren Broe Langer Kirsten Lundgaard-Karlshøj Peder Hesselaa Nielsen Peter Bækkelund Rasmussen