Company Announcement
No. 14 / 2007
22 August 2007
Executive Board:
Carsten Roth
Phone number +45 59 57 60 00
Interim financial report1 January - 30 June 2007
Disclaimer:
This document is an unauthorised translation of the Danish original. In the
event of any inconsistencies the Danish version shall apply.
Contents
Page
Management's review 3
Statement by Management 7
Group
Income statement for the period 1 January - 30 June 2007 8
Balance sheet at 30 June 2007 9
Statement of changes in equity for the period 1 January - 30 June 2007 11
Cash flow statement for the period 1 January - 30 June 12
Notes - Group 14
Parent
Income statement for the period 1 January - 30 June 2007 22
Balance sheet at 30 June 2007 23
Statement of changes in equity for the period 1 January - 30 June 2007 25
Notes - Parent 26
Management's review
--------------------------------------------------------------------------------
| Group financial | H1 | H1 | FY | H1 | H1 | H1 |
| highlights | 2007 | 2006 | 2006 | 2005 | 2004* | 2003* |
| DKK'000 | | | | | | |
--------------------------------------------------------------------------------
| Net interest and fee | 67.7 | 64.7 | 129.7 | 59.5 | 52.3 | 43.7 |
| income | | | | | | |
--------------------------------------------------------------------------------
| Value adjustments | 10.9 | 3.8 | 16.5 | -2.7 | 5.5 | 5.1 |
--------------------------------------------------------------------------------
| Staff costs and | -45.7 | -45.1 | -89.0 | -40.2 | -33.2 | -29.2 |
| administrative | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Impairment losses on | -8.1 | -5.6 | -8.8 | 0.8 | -4.8 | -7.7 |
| loans and | | | | | | |
| receivables, etc | | | | | | |
--------------------------------------------------------------------------------
| Profit before tax | 23.5 | 19.6 | | 16.0 | 18.7 | 11.2 |
| | | | 49.7 | | | |
--------------------------------------------------------------------------------
| Loans | 1,681 | 1,398 | 1,528 | 1,124 | 848 | 710 |
--------------------------------------------------------------------------------
| Equity | 284 | 258 | 277 | 244 | 233 | 190 |
--------------------------------------------------------------------------------
| Total assets | 2,262 | 1,992 | | 1,615 | 1,350 | 1,262 |
| | | | 2,110 | | | |
--------------------------------------------------------------------------------
Group financial ratios
--------------------------------------------------------------------------------
| Capital adequacy ratio, % | 12.1 | 11.2 | 11.6 | 10.3 | 13.3 | 14.0 |
--------------------------------------------------------------------------------
| Core capital ratio, % | 7.7 | 8.6 | 8.6 | 10.7 | 13.8 | 12.9 |
--------------------------------------------------------------------------------
| Return on equity before | 8.4 | 7.7 | 18.8 | 6.6 | 8.3 | 6.3 |
| tax for the period, % | | | | | | |
--------------------------------------------------------------------------------
| Return on equity after tax | 6.7 | 5.7 | 14.6 | 4.6 | 6.1 | 4.4 |
| for the period, % | | | | | | |
--------------------------------------------------------------------------------
| Operating income over | 1.42 | 1.38 | 1.49 | 1.39 | 1.47 | 1.29 |
| operating expenses, DKK | | | | | | |
--------------------------------------------------------------------------------
| Interest rate risk, % | 1.2 | 1.5 | 1.7 | 1.8 | 1.9 | 2.4 |
--------------------------------------------------------------------------------
| Currency position, % | 10.5 | 11.0 | 9.2 | 7.0 | 9.3 | 13.9 |
--------------------------------------------------------------------------------
| Currency risk, % | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Loans in ratio to deposits | 118, | 110. | 113,0 | 102,2 | 90,3 | 81,9 |
| | 2 | 2 | | | | |
--------------------------------------------------------------------------------
| Loans in ratio to equity | 5.9 | 5.4 | 5.5 | 4.5 | 3.5 | 3.2 |
--------------------------------------------------------------------------------
| Loan growth for the | 10.0 | 13.2 | 23.7 | 32.6 | 19.4 | 7.3 |
| period, % | | | | | | |
--------------------------------------------------------------------------------
| Excess liquidity in | 15.7 | 15.1 | 13.3 | 35.6 | 94.8 | 41.2 |
| relation to statutory | | | | | | |
| requirements of liquidity, | | | | | | |
| % | | | | | | |
--------------------------------------------------------------------------------
| Total of substantial | 105. | 103. | 100.4 | 57.3 | 55.1 | 45.5 |
| commitments, % | 1 | 7 | | | | |
--------------------------------------------------------------------------------
| Impairment ratio for the | 0.3 | 0.2 | 0.3 | 0.0 | 0.3 | 0.6 |
| period, % | | | | | | |
--------------------------------------------------------------------------------
| Earnings per share for the | 10.2 | 7.7 | 21.2 | 6.5 | 6.9 | 4.4 |
| period, DKK | | | | | | |
--------------------------------------------------------------------------------
| Equity value per share, | 159 | 139 | 150 | 129 | 117 | 103 |
| DKK | | | | | | |
--------------------------------------------------------------------------------
| Price/earnings per share | 28.3 | 33.0 | 14.0 | 31.7 | 19.7 | 25.0 |
| for the period, DKK | | | | | | |
--------------------------------------------------------------------------------
| Price/equity value per | 1.8 | 1.8 | 1.9 | 1.6 | 1.2 | 1.1 |
| share, DKK | | | | | | |
--------------------------------------------------------------------------------
* Comparative figures for financial instruments, including loans, have not been
restated for 2003 and 2004 to reflect the Executive Order on Financial
Reports for Financial Credit Institutions and Investment Companies, etc (the
Executive Order on Financial Reports) implemented in 2005.
Management's review
Development in activities and finances
The pre-tax profit for the period amounts to DKK 23.5m against DKK 19.6m for H1
2006. This performance is materially affected by the total business volume - in
terms of sum of loans, deposits and guarantees - having improved in all fields.
The Bank's total business volume is DKK 4,626m against DKK 4,080m at 30 June
2006, a rise of 13%.
Net interest and fee income amounts to DKK 67.7m compared with DKK 64.7m in H1
2006. Both interest income and interest expenses have been impacted by general
changes in interest rates in H1 2007. Particularly the Bank's deposit product
"Variabel Højrente" (account with a floating high-interest rate) that was open
to deposits in February had an adverse effect on interest expenses. The rise in
fee and commission income occurred primarily in guarantee commission, foreign
business and commission from investment funds.
Value adjustments amount to DKK 10.9m against DKK 3.8m in H1 2006. This major
improvement is attributable to total capital gains of DKK 11.7m on the Bank's
portfolio of shares.
Staff costs and administrative expenses total DKK 45.7m against DKK 45.1m in H1
2006.
Impairment losses on loans and receivables, etc amount to DKK 8.1m compared with
DKK 5.6m in H1 2006. The increase has been caused by a major one-off impairment
loss relating to a manufacturing business where the basis for the sale of its
products no longer exists. Other impairment losses are small and do not vary
from those previously forecasted.
Loans are up by 20% from DKK 1,398m to DKK 1,681m. Deposits have gone up by 12%
from DKK 1,289m to DKK 1,446m. Guarantees have gone up by 8% from DKK 1,393m to
DKK 1,499m.
The Bank's equity is up from DKK 258m to DKK 284m.
For purposes of hedging the Bank's loans in ratio to deposits, DKK 50m in
subordinated capital was raised at 1 May 2007 in cooperation with Nykredit Bank
of Copenhagen in addition to the Bank's natural liquidity.
Skælskør Bank has in the last six months carried through a LEAN project on the
home loan line. One of the results of this is that the Bank is going to set up a
branch service centre in Slagelse. When fully run in, the resources of about
five year-round employees will be freed. These employees will form part of the
Bank's staff of customer advisers.
It has been decided that the Bank will continue the LEAN project in other
product lines, which will lead to cost savings in coming years.
The new business centre for remotely located customers has now been established
in temporary premises in connection with the Bank's Slagelse branch. The
business centre which primarily serves customers living outside western Zealand
is currently experiencing much activity.
Particular factors affecting developments
A number of new accounting provisions were adopted in 2005. In particular, these
changes have implied significant changes in valuation (measurement) of loans.
The Bank has worked on establishing a data model designed to ensure compliance
with the new financial reporting requirements. The work has been impeded by the
necessary supporting computer systems not yet being fully available to the Bank.
So the Bank has had to establish alternative systems to comply with regulations.
The Bank currently works on improving the principles applying to group-based
impairment losses, in particular. As the Bank does not have data going far
enough back in time this implies that the calculation of the value of
group-based impairment losses is subject to some degree of uncertainty.
Management believes, however, that the Bank fully complies with the rules of the
Executive Order on Financial Reports so that uncertainty is immaterial to the
annual report.
The Bank has in cooperation with Bankernes EDB-central initiated the
implementation of the necessary systems and processes to ensure correct
accounting treatment in future. The Bank estimates that Bankernes EDB Central
will have a solution ready for group-based impairment losses in early 2008.
Unusual circumstances
It is no secret that a case is pending with the Competition Appeals Tribunal
against Skælskør Bank and six other banks. The case concerns alleged agreed
pricing and division of the market among the relevant banks.
We have lodged an appeal because we have not at any time made agreements - or
for that matter coordinated efforts - about any of the allegations made by the
Competition Council. The only mistake we have made is an unfortunate wording in
our cooperation agreement which could have been corrected with a little guidance
by the Competition Authority.
The Supervisory Board of Skælskør Bank has decided to adjust the Bank's
organisation to become more capable of decisive action, and furthermore a
succession process has been initiated as the Bank has engaged Robert Grønlund,
LLM, as administrative manager. The present administrative manager, Marianne
Hansen, will continue as finance manager of the Bank.
Outlook for all of 2007
The outlook for all of 2007 in the annual report for 2006 was that performance
would go down by around DKK 3.8m on profit for 2006. Our outlook for 2007
remains unchanged. We still expect a profit on the order of DKK 42-46m.
Special assumptions and uncertainties
Please refer to the discussion of particular factors that may also affect
performance for all of 2007.
Related party transactions
The Bank has had the following related party transactions in H1 2007.
--------------------------------------------------------------------------------
| | H1 2007 | H1 2006 |
--------------------------------------------------------------------------------
| Administration | 15 | 63 |
--------------------------------------------------------------------------------
| The Bank's deposits from subsidiaries | 5.766 | 5.969 |
--------------------------------------------------------------------------------
| The Bank's loans to subsidiaries | 8.586 | 11.266 |
--------------------------------------------------------------------------------
All related party transactions have been conducted on an arm's length basis.
Please also see note 13 which contains a specification of all related party
transactions for H1 2007.
Statement by Management
We have today presented the interim report of Skælskør Bank for the period 1
January - 30 June 2007.
The interim report has been prepared in accordance with IAS 34 in respect of the
semi-annual consolidated financial statements, the Executive Order on the
application of International Financial Reporting Standards for companies subject
to the Danish Financial Business Act in respect of the semi-annual parent
financial statements as well as additional Danish disclosure requirements for
interim reports of listed financial companies.
We consider the applied accounting policies appropriate for the interim report
to provide a true and fair view of the Group's and the Parent's assets, equity
and liabilities and financial position at 30 June 2007 as well as of their
activities and the consolidated cash flows for H1 2007.
The interim report has not been audited or reviewed by the Bank's auditors.
Skælskør, 22 August 2007
Carsten Roth Peter Melchior
Chief Executive Officer Chairman of the Supervisory Board
Income statement 1 January - 30 June 2007
--------------------------------------------------------------------------------
| Group | Note | H1 | H1 | FY |
| | | 2007 | 2006 | 2006 |
| | | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| Interest income | 3 | 69,768 | 51,640 | 114,021 |
--------------------------------------------------------------------------------
| Interest expenses | 4 | -26,514 | -13,509 | -32,424 |
--------------------------------------------------------------------------------
| Net interest income | | 43,254 | 38,131 | 81,597 |
--------------------------------------------------------------------------------
| Dividends from shares, etc | | 1,343 | 627 | 654 |
--------------------------------------------------------------------------------
| Fees and commissions income | | 25,403 | 27,588 | 50,825 |
--------------------------------------------------------------------------------
| Ceded fees and commission expenses | | -2,317 | -1,613 | -3,390 |
--------------------------------------------------------------------------------
| Net interest and fee income | | 67,683 | 64,733 | 129,686 |
--------------------------------------------------------------------------------
| Value adjustments | 6 | 10,855 | 3,816 | 16,459 |
--------------------------------------------------------------------------------
| Other operating income | | 420 | 2,980 | 4,940 |
--------------------------------------------------------------------------------
| Staff costs and administrative | 7 | -45,743 | -45,106 | -88,970 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation, amortisation and | | -1,668 | -1,228 | -3,692 |
| impairment losses relating to | | | | |
| intangible assets and property, | | | | |
| plant and equipment | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | | 0 | -1 | 0 |
--------------------------------------------------------------------------------
| Impairment losses on loans and | 8 | -8,073 | -5,589 | -8,770 |
| receivables, etc | | | | |
--------------------------------------------------------------------------------
| Profit from investments in | | 0 | 0 | 0 |
| subsidiaries and associates | | | | |
--------------------------------------------------------------------------------
| Profit before tax | | 23,474 | 19,605 | 49,653 |
--------------------------------------------------------------------------------
| Income taxes | | -4,673 | -5,202 | -11,223 |
--------------------------------------------------------------------------------
| Profit for the period | | 18,801 | 14,403 | 38,430 |
--------------------------------------------------------------------------------
| Earnings per share (EPS) | | 10.5 | 7.7 | 21.2 |
--------------------------------------------------------------------------------
| Diluted earnings per share (DEPS) | | 10.5 | 8.0 | 21.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Balance sheet at 30 June 2007
--------------------------------------------------------------------------------
| Group | Note | 30/6 | 30/6 | 31/12 |
| | | 2007 | 2006 | 2006 |
| | | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| Cash and demand deposits with | | 28,374 | 50,618 | 29,586 |
| central banks | | | | |
--------------------------------------------------------------------------------
| Receivables from credit | | 139,659 | 125,852 | 149,956 |
| institutions and central banks | | | | |
--------------------------------------------------------------------------------
| Loans and other receivables at | | 1,681,02 | 1,397,772 | 1,527,899 |
| amortised cost | | 3 | | |
--------------------------------------------------------------------------------
| Bonds at fair value | | 173,764 | 237,068 | 214,417 |
--------------------------------------------------------------------------------
| Shares, etc | | 134,846 | 84,944 | 103,302 |
--------------------------------------------------------------------------------
| Intangible assets | | 0 | 2,000 | 0 |
--------------------------------------------------------------------------------
| Total land and buildings | | 54,354 | 58,324 | 55,261 |
--------------------------------------------------------------------------------
| Investment property | | 19,926 | 31,815 | 13,171 |
--------------------------------------------------------------------------------
| Owner-occupied property | | 34,428 | 26,509 | 42,090 |
--------------------------------------------------------------------------------
| Other property, plant and | | 9,126 | 6,699 | 5,467 |
| equipment | | | | |
--------------------------------------------------------------------------------
| Current tax assets | | 0 | 0 | 691 |
--------------------------------------------------------------------------------
| Deferred tax assets | | 1,586 | 1,429 | 1,323 |
--------------------------------------------------------------------------------
| Other assets | | 39,430 | 24,821 | 22,329 |
--------------------------------------------------------------------------------
| Prepayments | | 179 | 1,995 | 76 |
--------------------------------------------------------------------------------
| Total assets | | 2,262,34 | 1,991,522 | 2,110,307 |
| | | 1 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Balance sheet at 30 June 2007
--------------------------------------------------------------------------------
| Group | Note | 30/6 | 30/6 | 31/12 |
| | | 2007 | 2006 | 2006 |
| | | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| Debt to credit institutions and | | 338,045 | 277,186 | 321,659 |
| central banks | | | | |
--------------------------------------------------------------------------------
| Deposits and other payables | | 1,445,58 | 1,289,293 | 1,374,119 |
| | | 4 | | |
--------------------------------------------------------------------------------
| Current tax payable | | 3,377 | 6,356 | 0 |
--------------------------------------------------------------------------------
| Other liabilities | | 38,178 | 69,809 | 30,189 |
--------------------------------------------------------------------------------
| Deferred income | | 1,018 | 1,664 | 1,525 |
--------------------------------------------------------------------------------
| Total payables | | 1,826,20 | 1,644,308 | 1,727,492 |
| | | 2 | | |
--------------------------------------------------------------------------------
| Provisions | | | | |
--------------------------------------------------------------------------------
| Provisions for pensions and | | 1,427 | 1,427 | 1,427 |
| similar liabilities | | | | |
--------------------------------------------------------------------------------
| Provisions for deferred tax | | 2 | 177 | 0 |
--------------------------------------------------------------------------------
| Provisions for loss on guarantees | | 760 | 1,678 | 1,992 |
--------------------------------------------------------------------------------
| Other provisions | | 713 | 1,455 | 2,393 |
--------------------------------------------------------------------------------
| Total provisions | | 2,902 | 4,737 | 5,812 |
--------------------------------------------------------------------------------
| Subordinated debt | | | | |
--------------------------------------------------------------------------------
| Subordinated debt | | 149,422 | 84,592 | 99,560 |
--------------------------------------------------------------------------------
| Total subordinated debt | | 149,422 | 84,592 | 99,560 |
--------------------------------------------------------------------------------
| Equity | | | | |
--------------------------------------------------------------------------------
| Share capital | | 37,000 | 37,000 | 37,000 |
--------------------------------------------------------------------------------
| Revaluation reserve | | 1,668 | 1,471 | 1,471 |
--------------------------------------------------------------------------------
| Retained earnings | | 245,147 | 219,415 | 238,972 |
--------------------------------------------------------------------------------
| Total equity | | 283,815 | 257,886 | 277,443 |
--------------------------------------------------------------------------------
| Total equity and liabilities | | 2,262,34 | 1,991,522 | 2,110,307 |
| | | 1 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Statement of changes in equity 1 January - 30 June 2007
--------------------------------------------------------------------------------
| Group | Share | Revalua | Porposed | Retaine | Total |
| | capita | -tion | dividend | d | DKK'000 |
| | l | reserve | s | earning | |
| | DKK'00 | DKK'000 | DKK'000 | s | |
| | 0 | | | DKK'000 | |
--------------------------------------------------------------------------------
| Equity at 1 January 2006 | 38.000 | 1.471 | 5.700 | 205.129 | 250.300 |
--------------------------------------------------------------------------------
| Dividends paid | | | -5.700 | | -5.700 |
--------------------------------------------------------------------------------
| Dividends on own shares | | | | 228 | 228 |
--------------------------------------------------------------------------------
| Purchase and sale of own | | | | -1.345 | -1.345 |
| shares, net | | | | | |
--------------------------------------------------------------------------------
| Capital | -1.000 | | | 1.000 | 0 |
| injection/reduction | | | | | |
--------------------------------------------------------------------------------
| Profit for the period | | | | 14.403 | 14.403 |
| transferred to equity | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 June 2006 | 37.000 | 1.471 | 0 | 219.415 | 257.886 |
--------------------------------------------------------------------------------
| Purchase and sale of own | | | | -5.593 | -5.593 |
| shares, net | | | | | |
--------------------------------------------------------------------------------
| Employee shares | | | | 1.123 | 1.123 |
--------------------------------------------------------------------------------
| Profit for the period | | | 7.400 | 16.627 | 24.027 |
| transferred to equity | | | | | |
--------------------------------------------------------------------------------
| Equity at 1 January 2007 | 37.000 | 1.471 | 7.400 | 231.572 | 277.443 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividends paid | | | -7.400 | | -7.400 |
--------------------------------------------------------------------------------
| Dividends on own shares | | | | 188 | 188 |
--------------------------------------------------------------------------------
| Purchase and sale of own | | | | -5.673 | -5.673 |
| shares, net | | | | | |
--------------------------------------------------------------------------------
| Employee shares | | | | 259 | 259 |
--------------------------------------------------------------------------------
| Revaluation reserve | | 197 | | | 197 |
| relating to property | | | | | |
--------------------------------------------------------------------------------
| Profit for the period | | | | 18.801 | 18.801 |
| transferred to equity | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 June 2007 | 37.000 | 1.668 | 0 | 245.147 | 283.815 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash flow statement 1 January - 30 June 2007
--------------------------------------------------------------------------------
| Group | 30/6 | 30/6 | 31/12 |
| | 2007 | 2006 | 2006 |
| | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| Profit for the period before tax | 23,474 | 19,605 | 49,653 |
--------------------------------------------------------------------------------
| Impairment losses on loans and | 8,073 | 5,589 | 8,770 |
| receivables, etc | | | |
--------------------------------------------------------------------------------
| Paid, non-recognised fees | 5,985 | 4,937 | 5,468 |
--------------------------------------------------------------------------------
| Depreciation, amortisation and | 1,668 | 1,228 | 3,692 |
| impairment losses relating to | | | |
| intangible assets and property, plant | | | |
| and equipment | | | |
--------------------------------------------------------------------------------
| Gains/losses on sale of intangible | -112 | 0 | -5,577 |
| assets and property, plant and equipment | | | |
--------------------------------------------------------------------------------
| Value adjustment, investment property | 33 | -37 | -418 |
--------------------------------------------------------------------------------
| Unrealised price adjustments of | -8,952 | -1,675 | -7,088 |
| securities | | | |
--------------------------------------------------------------------------------
| Non-paid interest | 13,337 | 7,065 | 2,672 |
--------------------------------------------------------------------------------
| Other non-paid operating items | 1,489 | 1,224 | 448 |
--------------------------------------------------------------------------------
| Income taxes paid, net | -2,037 | -1,611 | -13,746 |
--------------------------------------------------------------------------------
| Changes in loans | -167,182 | -172,013 | -305,852 |
--------------------------------------------------------------------------------
| Changes in deposits | 71,465 | 99,082 | 183,908 |
--------------------------------------------------------------------------------
| Changes in credit institutions, net | 29,166 | 121,290 | 152,983 |
--------------------------------------------------------------------------------
| Changes in other assets and equity and | -18,245 | 32,703 | 22,856 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Cash flows from operating activities | -41,838 | 117,387 | 97,769 |
--------------------------------------------------------------------------------
| Acquisition, etc of intangible assets | 0 | -700 | -700 |
--------------------------------------------------------------------------------
| Sale of intangible assets | 0 | 0 | 2,000 |
--------------------------------------------------------------------------------
| Acquisition, etc of property, plant and | -11,359 | -15,088 | -20,131 |
| equipment | | | |
--------------------------------------------------------------------------------
| Sale of property, plant and equipment | 7,285 | 17,327 | 31,022 |
--------------------------------------------------------------------------------
| Fixed asset investments | -2,394 | -90 | -520 |
--------------------------------------------------------------------------------
| Fixed asset divestments | 0 | 0 | 364 |
--------------------------------------------------------------------------------
| Cash flows from investing activities | -6,468 | 1,449 | 12,035 |
--------------------------------------------------------------------------------
| Dividends paid | -7,400 | -5,700 | -5,700 |
--------------------------------------------------------------------------------
| Subordinated debt | 50,000 | 0 | 15,000 |
--------------------------------------------------------------------------------
| Acquisition/sale of own shares and | -5,485 | -1,371 | -4,585 |
| related dividends | | | |
--------------------------------------------------------------------------------
| Cash flows from financing activities | 37,115 | -7,071 | 4,715 |
--------------------------------------------------------------------------------
| Increase/decrease in cash and cash | -11,191 | 111,765 | 114,519 |
| equivalents | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at beginning | 179,224 | 64,705 | 64,705 |
| of period | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of | 168,033 | 176,470 | 179,224 |
| period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and demand deposits with central | 28,374 | 50,618 | 29,586 |
| banks | | | |
--------------------------------------------------------------------------------
| Securities which mature in less than | 0 | 0 | 12,462 |
| three months | | | |
--------------------------------------------------------------------------------
| Receivables from credit institutions | 139,659 | 125,852 | 137,176 |
| which fall due in less than three months | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of | 168,033 | 176,470 | 179,224 |
| period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notes - Group
Notes
Accounting policies
Significant changes in accounting estimates
Interest income
Interest expenses
Business segments and profit before tax for H1 2007
Value adjustments
Staff costs and administrative expenses
Impairment losses on loans and other receivables,etc
Contingent assets and liabilities
Own shares
Tax on profit for the period
Dividends
Related parties
Group overview
Events after the balance sheet date
Notes - Group
1. Accounting policies
The interim report is presented in accordance with IAS 34 in respect of the
consolidated financial statements for the period 1 January to 30 June 2006, the
Executive Order on the application of International Financial Reporting
Standards for companies subject to the Danish Financial Business Act in respect
of the parent financial statements for the period 1 January to 30 June 2006 as
well as additional Danish disclosure requirements for interim reports of listed
financial companies.
This is the first interim financial report presented by the Bank under IAS 34,
and this has involved further disclosure requirements for the following areas
compared with previous interim financial reports:
Consolidated cash flow statement under IAS 7
Certain segment information under IAS 14
Earnings per share (ESP) and diluted earnings per share (DEPS) are presented
directly on the face of the income statement under IAS 33
Any other requirements for notes.
The accounting policies applied in this interim financial report are consistent
with those applied in the Bank's annual report for 2006. The annual report for
2006 was prepared in accordance with International Financial Reporting Standards
(IFRS) as adopted by the EU as well as additional Danish disclosure
requirements. We refer to the annual report for 2006 for a more detailed
description of the accounting policies, including definitions of the disclosed
financial ratios which have been calculated in accordance with “Recommendations
and Ratios 2005” issued by the Danish Association of Financial Analysts.
The following new or amended Standards and Interpretations have become effective
for the financial year 2007:
IAS 32, Financial Instruments: Disclosures and Presentation
IFRS 7, Financial Instruments: Disclosures
IFRIC 7, Applying the Restatement Approach under IAS 29 Financial Reporting in
Hyperinflationary Economies
IFRIC 8, Scope of IFRIC 2
IFRIC 9, Reassessment of Embedded Derivatives
IFRIC 10, Interim Financial Reporting and Impairment.
The application of these new or amended Standards and Interpretations has not
resulted in any changes to the accounting policies applied to recognition and
measurement. Compared to the annual report for 2006, application of IFRS 7 to
the annual report for 2007 will imply changes and additions to the disclosures
in the notes regarding financial instruments; IFRS 7 is not relevant for this
interim financial report.
The interim financial report is presented in Danish kroner (DKK), which is the
Parent's functional currency.
2. Significant changes in accounting estimates
Several financial statement items cannot be measured reliably, but only be
estimated. Such estimates comprise assessments made on the basis of the latest
information available at the time of the financial reporting. It may be
necessary to change previous estimates due to changes in the matters on which
the estimate was based or due to new information, further experience or
subsequent events.
Unusual circumstances
The interim financial report for H1 2007 has not been affected by material
exceptional financial statement items.
Changes in accounting estimates
The accounting estimates made by the Bank in the annual report for 2006 have not
been changed in the interim financial report for H1 2007.
Notes - Group
--------------------------------------------------------------------------------
| | H1 | H1 | FY |
| | 2007 | 2006 | 2006 |
| | DKK'000 | DKK'000 | Dkk'000 |
--------------------------------------------------------------------------------
| 3. Interest income | | | |
--------------------------------------------------------------------------------
| Receivables from credit institutions and | 2,678 | 1,152 | 4,456 |
| central banks | | | |
--------------------------------------------------------------------------------
| Loans and other receivables | 62,170 | 46,172 | 100,171 |
--------------------------------------------------------------------------------
| Bonds | 4,365 | 4,566 | 9,517 |
--------------------------------------------------------------------------------
| Total derivative financial instruments | 0 | -285 | -427 |
--------------------------------------------------------------------------------
| Of this | | | |
--------------------------------------------------------------------------------
| Foreign exchange contracts | 0 | -285 | -427 |
--------------------------------------------------------------------------------
| Other interest income | 555 | 35 | 304 |
--------------------------------------------------------------------------------
| Total interest income | 69,768 | 51,640 | 114,021 |
--------------------------------------------------------------------------------
| The Group has no income from genuine | | | |
| purchase and sell-back transactions. | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4. Interest expenses | | | |
--------------------------------------------------------------------------------
| Credit institutions and central banks | 5,428 | 2,537 | 6,074 |
--------------------------------------------------------------------------------
| Deposits and other payables | 17,994 | 9,054 | 22,194 |
--------------------------------------------------------------------------------
| Subordinated debt | 3,060 | 1,837 | 4,079 |
--------------------------------------------------------------------------------
| Other interest expenses | 32 | 81 | 77 |
--------------------------------------------------------------------------------
| Total interest expenses | 26,514 | 13,509 | 32,424 |
--------------------------------------------------------------------------------
| The Group has no expenses for genuine | | | |
| purchase and sell-back transactions. | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5. Business segments and | Branches | Finance/ | Staff | |
| profit before tax for H1 2007 | Denmark | abroad | functions | Total |
| | DKK'000 | DKK'000 | / other | DKK'000 |
| | | | DKK'000 | |
--------------------------------------------------------------------------------
| Net interest and fee income | 60,801 | 5,463 | 1,419 | 67,683 |
--------------------------------------------------------------------------------
| Profit before tax | 17,853 | 5,198 | 423 | 23,474 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notes - Group
--------------------------------------------------------------------------------
| | H1 | H1 | FY |
| | 2007 | 2006 | 2006 |
| | DKK'000 | DKK'000 | Dkk'000 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 6. Value adjustments | | | |
--------------------------------------------------------------------------------
| Bonds | -3,335 | -5,109 | -2,349 |
--------------------------------------------------------------------------------
| Shares | 11,717 | 5,223 | 15,570 |
--------------------------------------------------------------------------------
| Investment property | -33 | 37 | 418 |
--------------------------------------------------------------------------------
| Total currency, interest, etc | 1,461 | 422 | 1,070 |
--------------------------------------------------------------------------------
| Derivative financial instruments | 1,045 | 3,274 | 1,764 |
--------------------------------------------------------------------------------
| Other assets | 0 | -31 | -14 |
--------------------------------------------------------------------------------
| Total value adjustments | 10,855 | 3,816 | 16,459 |
--------------------------------------------------------------------------------
| Skælskør Bank has no collective pool | | | |
| schemes. | | | |
--------------------------------------------------------------------------------
| 7. Staff costs and administrative | | | |
| expenses | | | |
--------------------------------------------------------------------------------
| Salaries and remuneration to the | | | |
| Supervisory and Executive Boards as well | | | |
| as Committee of Representatives: | | | |
--------------------------------------------------------------------------------
| - Executive Board | 665 | 966 | 2,158 |
--------------------------------------------------------------------------------
| - Pension, etc to the Executive Board | 179 | 197 | 419 |
--------------------------------------------------------------------------------
| - Supervisory Board | 290 | 286 | 569 |
--------------------------------------------------------------------------------
| - Committee of Representatives | 0 | 0 | 115 |
--------------------------------------------------------------------------------
| Staff costs | | | |
--------------------------------------------------------------------------------
| - Wages and salaries | 20,577 | 20,374 | 40,626 |
--------------------------------------------------------------------------------
| - Pensions | 2,478 | 2,285 | 4,702 |
--------------------------------------------------------------------------------
| - Social security costs | 2,062 | 1,760 | 3,573 |
--------------------------------------------------------------------------------
| Other administrative expenses | 19,492 | 19,238 | 36,808 |
--------------------------------------------------------------------------------
| Total staff costs and administrative | 45,743 | 45,106 | 88,970 |
| expenses | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of employees converted | | | |
| into full-time employees 107.0 (114.9 | | | |
| for H1 2006). | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notes - Group
--------------------------------------------------------------------------------
| | Indivi-du | Group-bas | Total |
| | al | ed | DKK'000 |
| | impairmen | impairmen | |
| | t losses | t losses | |
| | DKK'000 | DKK'000 | |
--------------------------------------------------------------------------------
| 8. Impairment losses on loans and other | | | |
| receivables | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| H1 2007 | | | |
--------------------------------------------------------------------------------
| Impairment losses at 1 January 2007 | 22,916 | 1,439 | 24,355 |
--------------------------------------------------------------------------------
| Impairment losses for the period | 10,538 | 0 | 10,538 |
--------------------------------------------------------------------------------
| Reversal of prior years' impairment | -1,931 | -222 | -2,153 |
| losses | | | |
--------------------------------------------------------------------------------
| Other movements | -5,701 | 0 | -5,701 |
--------------------------------------------------------------------------------
| Impairment losses at 30 June 2007 | 25,822 | 1,217 | 27,039 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| H1 2006 | | | |
--------------------------------------------------------------------------------
| Impairment losses at 1 January 2006 | 15,357 | 1,900 | 17,257 |
--------------------------------------------------------------------------------
| Impairment losses for the period | 7,766 | 0 | 7,766 |
--------------------------------------------------------------------------------
| Reversal of prior years' impairment | -2,193 | 0 | -2,193 |
| losses | | | |
--------------------------------------------------------------------------------
| Other movements | 16 | 0 | 16 |
--------------------------------------------------------------------------------
| Impairment losses at 30 June 2006 | 20,946 | 1,900 | 22,846 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FY 2006 | | | |
--------------------------------------------------------------------------------
| Impairment losses at 1 January 2006 | 15,357 | 1,900 | 17,257 |
--------------------------------------------------------------------------------
| Impairment losses for the year | 12,146 | 0 | 12,146 |
--------------------------------------------------------------------------------
| Reversal of prior years' impairment | -3,006 | -461 | -3,467 |
| losses | | | |
--------------------------------------------------------------------------------
| Write-off | -1,581 | | -1,581 |
--------------------------------------------------------------------------------
| Other movements | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Impairment losses at 31 December 2006 | 22,916 | 1,439 | 24,355 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 9. Contingent assets and liabilities | | | |
--------------------------------------------------------------------------------
| Financing guarantees | 1,038,514 | 966,787 | 1,092,556 |
--------------------------------------------------------------------------------
| Other guarantees | 460,599 | 426,180 | 448,085 |
--------------------------------------------------------------------------------
| Total guarantees, etc | 1,499,113 | 1,392,967 | 1,540,641 |
--------------------------------------------------------------------------------
| Other contingent liabilities | | | |
--------------------------------------------------------------------------------
| Irrevocable credit guarantees | 0 | 0 | 75,800 |
--------------------------------------------------------------------------------
| Other obligations | 46,505 | 21,378 | 46,338 |
--------------------------------------------------------------------------------
| Total other liabilities | 46,505 | 21,378 | 122,138 |
--------------------------------------------------------------------------------
Notes - Group
--------------------------------------------------------------------------------
| | Number | Nominal value | Share of own |
| | | | shares of the |
| | | | share capital |
--------------------------------------------------------------------------------
| | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 |
| | Number | Number | DKK'000 | DKK'000 | % | % |
--------------------------------------------------------------------------------
| 10. Own shares | | | | | | |
--------------------------------------------------------------------------------
| Number of own | 47,131 | 73,458 | 943 | 1,469 | 2.5 | 4.0 |
| shares at | | | | | | |
| beginning of | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Purchase | 63,056 | 84,093 | 1,261 | 1,682 | 3.4 | 4.5 |
--------------------------------------------------------------------------------
| Sale | 43,159 | 77,539 | 863 | 1,551 | 2.3 | 4.2 |
--------------------------------------------------------------------------------
| Number of own | | 80,012 | 1,341 | 1,600 | 3.6 | 4.3 |
| shares at end of | 67,028 | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
11. Tax on profit for the period
At 1 January 2007, the deferred tax liability amounted to DKK 1,323k, using a
corporate tax rate of 28%. The passage of the bill to lower the corporate tax
rate to 25% has resulted in an adjustment of DKK 72k to the deferred tax
liability at 1 January 2007, and this has implied that the estimated weighted
average tax rate for the year has now been reduced to 22.86%. The lowering of
the corporate tax rate has been recognised for the entire year with an
adjustment to Q1 that has been recognised in the income statement under tax in
Q2.
The tax expense recognised in the income statement for the interim financial
period has therefore been calculated on the basis of the pre-tax profit and an
estimated effective tax rate for the Group as a whole for 2007. The estimated
weighted average effective tax rate for 2007 is 22.6% (26.5% at 30 June 2006 and
22.6% for all of 2006).
12. Dividends
On 16 March 2007, DKK 7,400k in ordinary dividends were paid to the
shareholders, corresponding to DKK 4 per share (2006: DKK 3 per share).
13. Related parties
The Group's related parties include the Bank's Executive and Supervisory Boards
and their persons connected.
Persons connected thereto comprise the subsidiaries Nor Fjor Finans A/S,
Skælskør Bolig A/S and Hovedgaden 50, Dalmose A/S and the course provider,
Hjalet A/S.
Related party transactions in the interim period
Members of the Parent's Executive and Supervisory Boards as well as other
executives of the Group have been remunerated as follows during the interim
financial period:
--------------------------------------------------------------------------------
| | H1 | H1 | FY |
| | 2007 | 2006 | 2006 |
| | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| Fees for the Supervisory Board | 290 | 286 | 569 |
--------------------------------------------------------------------------------
| Wages and salaries | 665 | 966 | 2.158 |
--------------------------------------------------------------------------------
| Pension | 179 | 197 | 419 |
--------------------------------------------------------------------------------
| | 1.134 | 1.449 | 3.146 |
--------------------------------------------------------------------------------
No security or guarantees have been provided for outstanding balances at the
balance sheet date. Receivables and payables will be settled by cash payment.
All related party transactions have been conducted on an arm's length basis.
14. Consolidation
No shareholder holds more then 5% of the Company's share capital at 30 June
2007.
15. Events after the balance sheet date
No events have occurred after the balance sheet date which materially affect the
evaluation of this interim report.
Income statement 1 January - 30 June 2007
--------------------------------------------------------------------------------
| Parent | Note | H1 | H1 | FY |
| | | 2007 | 2006 | 2006 |
| | | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| Interest income | 1 | 69,823 | 51,769 | 114,244 |
--------------------------------------------------------------------------------
| Interest expenses | 2 | -26,623 | -13,642 | -32,759 |
--------------------------------------------------------------------------------
| Net interest income | | 43,200 | 38,127 | 81,485 |
--------------------------------------------------------------------------------
| Dividends from shares, etc | | 1,343 | 627 | 654 |
--------------------------------------------------------------------------------
| Fees and commission income | | 25,418 | 23,231 | 45,402 |
--------------------------------------------------------------------------------
| Ceded fees and commission expenses | | -2,070 | -2,115 | -4,104 |
--------------------------------------------------------------------------------
| Net interest and fee income | | 67,891 | 59,870 | 123,437 |
--------------------------------------------------------------------------------
| Value adjustments | 3 | 8,607 | 2,121 | 15,614 |
--------------------------------------------------------------------------------
| Other operating income | | 137 | -15 | 123 |
--------------------------------------------------------------------------------
| Staff costs and administrative | 4 | -45,890 | -37,815 | -78,240 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation, amortisation and | | -1,659 | -1,662 | -3,268 |
| impairment losses relating to | | | | |
| intangible assets and property, | | | | |
| plant and equipment | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | | 0 | -1 | 0 |
--------------------------------------------------------------------------------
| Impairment losses on loans and | | -8,073 | -5,589 | -8,770 |
| receivables, etc | | | | |
--------------------------------------------------------------------------------
| Profit from investments in | 5 | 1,846 | 1,934 | 757 |
| subsidiaries and associates | | | | |
--------------------------------------------------------------------------------
| Profit before tax | | 22,859 | 18,843 | 49,653 |
--------------------------------------------------------------------------------
| Income taxes | | -4,058 | -4,440 | -11,223 |
--------------------------------------------------------------------------------
| Profit for the period | | 18,801 | 14,403 | 38,430 |
--------------------------------------------------------------------------------
| Earnings per share (EPS) | | 10.5 | 7.7 | 21.2 |
--------------------------------------------------------------------------------
| Diluted earnings per share (DEPS) | | 10.5 | 7.7 | 21.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Balance sheet at 30 June 2007
--------------------------------------------------------------------------------
| Parent | Note | 30/6 | 30/6 | 31/12 |
| | | 2007 | 2006 | 2006 |
| | | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| Assets | | | | |
--------------------------------------------------------------------------------
| Cash and demand deposits with | | 28,374 | 50,618 | 29,586 |
| central banks | | | | |
--------------------------------------------------------------------------------
| Receivables from credit | | 139,659 | 125,852 | 149,956 |
| institutions and central banks | | | | |
--------------------------------------------------------------------------------
| Loans and other receivables at | | 1,688,44 | 1,407,858 | 1,533,296 |
| amortised cost | | 4 | | |
--------------------------------------------------------------------------------
| Bonds at fair value | | 173,764 | 237,068 | 214,417 |
--------------------------------------------------------------------------------
| Shares, etc | | 124,350 | 79,062 | 94,448 |
--------------------------------------------------------------------------------
| Investments in subsidiaries | | 36,080 | 35,216 | 37,235 |
--------------------------------------------------------------------------------
| Intangible assets | | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Total land and buildings | | 26,241 | 31,924 | 31,744 |
--------------------------------------------------------------------------------
| Investment property | | 0 | 5,415 | 5,401 |
--------------------------------------------------------------------------------
| Owner-occupied property | | 26,241 | 26,509 | 26,343 |
--------------------------------------------------------------------------------
| Other property, plant and | | 9,126 | 5,858 | 5,467 |
| equipment | | | | |
--------------------------------------------------------------------------------
| Current tax assets | | 0 | 0 | 1,271 |
--------------------------------------------------------------------------------
| Deferred tax assets | | 1,586 | 1,394 | 1,325 |
--------------------------------------------------------------------------------
| Other assets | | 37,485 | 17,883 | 18,384 |
--------------------------------------------------------------------------------
| Prepayments | | 179 | 234 | 75 |
--------------------------------------------------------------------------------
| Total assets | | 2,265,28 | 1,992,967 | 2,117,204 |
| | | 8 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Balance sheet at 30 June 2007
--------------------------------------------------------------------------------
| Parent | Note | 30/6 | 30/6 | 31/12 |
| | | 2007 | 2006 | 2006 |
| | | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| Equity and liabilities | | | | |
--------------------------------------------------------------------------------
| Debt to credit institutions and | | 338,045 | 277,186 | 321,659 |
| central banks | | | | |
--------------------------------------------------------------------------------
| Deposits and other payables | | 1,451,35 | 1,295,262 | 1,382,111 |
| | | 0 | | |
--------------------------------------------------------------------------------
| Current tax payable | | 1,052 | 4,502 | 0 |
--------------------------------------------------------------------------------
| Other liabilities | | 37,686 | 67,974 | 29,291 |
--------------------------------------------------------------------------------
| Deferred income | | 1,018 | 1,664 | 1,328 |
--------------------------------------------------------------------------------
| Total payables | | 1,829,15 | 1,646,588 | 1,734,389 |
| | | 1 | | |
--------------------------------------------------------------------------------
| Provisions | | | | |
--------------------------------------------------------------------------------
| Provisions for pensions and | | 1,427 | 1,427 | 1,427 |
| similar liabilities | | | | |
--------------------------------------------------------------------------------
| Provisions for loss on guarantees | | 760 | 1,678 | 1,992 |
--------------------------------------------------------------------------------
| Other provisions | | 713 | 796 | 2,393 |
--------------------------------------------------------------------------------
| Total provisions | | 2,900 | 3,901 | 5,812 |
--------------------------------------------------------------------------------
| Subordinated debt | | | | |
--------------------------------------------------------------------------------
| Subordinated debt | | 149,422 | 84,592 | 99,560 |
--------------------------------------------------------------------------------
| Total subordinated debt | | 149,422 | 84,592 | 99,560 |
--------------------------------------------------------------------------------
| Equity | | | | |
--------------------------------------------------------------------------------
| Share capital | | 37,000 | 37,000 | 37,000 |
--------------------------------------------------------------------------------
| Revaluation reserve | | 1,668 | 1,471 | 1,471 |
--------------------------------------------------------------------------------
| Retained earnings | | 245,147 | 219,415 | 238,972 |
--------------------------------------------------------------------------------
| Total equity | | 283,815 | 257,886 | 277,443 |
--------------------------------------------------------------------------------
| Total equity and liabilities | | 2,265,28 | 1,992,967 | 2,117,204 |
| | | 8 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Statement of changes in equity 1 January - 30 June 2007
--------------------------------------------------------------------------------
| Parent | Share | Revalu | Porpose | Retaine | Total |
| | capital | a-tion | d | d | DKK'000 |
| | DKK'000 | reserv | dividen | earning | |
| | | e | ds | s | |
| | | DKK'00 | DKK'000 | DKK'000 | |
| | | 0 | | | |
--------------------------------------------------------------------------------
| Equity at 1 January 2006 | 38,00 | 1,471 | 5,700 | 205,129 | 250,300 |
| | 0 | | | | |
--------------------------------------------------------------------------------
| Dividends paid | | | -5,700 | | -5,700 |
--------------------------------------------------------------------------------
| Dividends on own shares | | | | 228 | 228 |
--------------------------------------------------------------------------------
| Purchase and sale of own | | | | -1,345 | -1,345 |
| shares, net | | | | | |
--------------------------------------------------------------------------------
| Capital injection/reduction | -1,00 | | | 1,000 | 0 |
| | 0 | | | | |
--------------------------------------------------------------------------------
| Profit for the period | | | | 14,403 | 14,403 |
| transferred to equity | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 June 2006 | 37,00 | 1,471 | 0 | 219,415 | 257,886 |
| | 0 | | | | |
--------------------------------------------------------------------------------
| Purchase and sale of own | | | | -5,593 | -5,593 |
| shares, net | | | | | |
--------------------------------------------------------------------------------
| Employee shares | | | | 1,123 | 1,123 |
--------------------------------------------------------------------------------
| Profit for the period | | | 7,400 | 16,627 | 24,027 |
| transferred to equity | | | | | |
--------------------------------------------------------------------------------
| Equity at 1 January 2007 | 37,00 | 1,471 | 7,400 | 231,572 | 277,443 |
| | 0 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividends paid | | | -7,400 | | -7,400 |
--------------------------------------------------------------------------------
| Dividends on own shares | | | | 188 | 188 |
--------------------------------------------------------------------------------
| Purchase and sale of own | | | | -5,673 | -5,673 |
| shares, net | | | | | |
--------------------------------------------------------------------------------
| Employee shares | | | | 259 | 259 |
--------------------------------------------------------------------------------
| Revaluation reserve relating | | 197 | | | 197 |
| to property | | | | | |
--------------------------------------------------------------------------------
| Profit for the period | | | | 18,801 | 18,801 |
| transferred to equity | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 June 2007 | 37,00 | 1,668 | 0 | 245,147 | 283,815 |
| | 0 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notes - Parent
Notes with reference
Interest income
Interest expenses
Value adjustments
Staff costs and administrative expenses
Profit from investments in subsidiaries and associates
Impairment losses on ooans and other receivables, etc
Contingent assets and liabilities
Own shares
Related parties
Group overview
Notes - Parent
--------------------------------------------------------------------------------
| | H1 | H1 | FY |
| | 2007 | 2006 | 2006 |
| | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| 1. Interest income | | | |
--------------------------------------------------------------------------------
| Receivables from credit institutions and | 2,678 | 1,152 | 4,456 |
| central banks | | | |
--------------------------------------------------------------------------------
| Loans and other receivables | 62,225 | 46,301 | 100,394 |
--------------------------------------------------------------------------------
| Bonds | 4,365 | 4,566 | 9,517 |
--------------------------------------------------------------------------------
| Total derivative financial instruments | 0 | -285 | -427 |
--------------------------------------------------------------------------------
| Of this | | | |
--------------------------------------------------------------------------------
| Foreign exchange contracts | 0 | -285 | -427 |
--------------------------------------------------------------------------------
| Other interest income | 555 | 35 | 304 |
--------------------------------------------------------------------------------
| Total interest income | 69,823 | 51,769 | 114,244 |
--------------------------------------------------------------------------------
| Skælskør Bank has no income from genuine | | | |
| purchase and sell-back transactions. | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2. Interest expenses | | | |
--------------------------------------------------------------------------------
| Credit institutions and central banks | 5,428 | 2,537 | 6,074 |
--------------------------------------------------------------------------------
| Deposits and other payables | 18,103 | 9,187 | 22,529 |
--------------------------------------------------------------------------------
| Subordinated debt | 3,060 | 1,837 | 4,079 |
--------------------------------------------------------------------------------
| Other interest expenses | 32 | 81 | 77 |
--------------------------------------------------------------------------------
| Total interest expenses | 26,623 | 13,642 | 32,759 |
--------------------------------------------------------------------------------
| Skælskør Bank has no expenses for | | | |
| genuine purchase and sell-back | | | |
| transactions. | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. Value adjustments | | | |
--------------------------------------------------------------------------------
| Bonds | -3,335 | -5,109 | -2,349 |
--------------------------------------------------------------------------------
| Shares | 9,469 | 3,545 | 14,350 |
--------------------------------------------------------------------------------
| Investment property | -33 | 0 | 810 |
--------------------------------------------------------------------------------
| Total currency, interest, etc | 1,461 | 442 | 1,070 |
--------------------------------------------------------------------------------
| Derivative financial instruments | 1,045 | 3,274 | 1,764 |
--------------------------------------------------------------------------------
| Other assets | 0 | -31 | -31 |
--------------------------------------------------------------------------------
| Total value adjustments | 8,607 | 2,121 | 15,614 |
--------------------------------------------------------------------------------
| Skælskør Bank has no collective pool | | | |
| schemes. | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notes - Parents
--------------------------------------------------------------------------------
| | H1 | H1 | FY |
| | 2007 | 2006 | 2006 |
| | DKK'000 | DKK'000 | Dkk'000 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4. Staff costs and administrative | | | |
| expenses | | | |
--------------------------------------------------------------------------------
| Salaries and remuneration to the | | | |
| Supervisory and Executive Boards as | | | |
| well as Committee of Representatives: | | | |
--------------------------------------------------------------------------------
| - Salaries to the Executive Board | 735 | 712 | 1,431 |
--------------------------------------------------------------------------------
| - Pension, etc to the Executive Board | 179 | 174 | 346 |
--------------------------------------------------------------------------------
| - Supervisory Board | 290 | 286 | 569 |
--------------------------------------------------------------------------------
| - Committee of Representatives | 0 | 0 | 115 |
--------------------------------------------------------------------------------
| Staff costs | | | |
--------------------------------------------------------------------------------
| - Wages and salaries | 20,537 | 17,272 | 36,144 |
--------------------------------------------------------------------------------
| - Pensions | 2,478 | 2,069 | 4,388 |
--------------------------------------------------------------------------------
| - Social security costs | 2,062 | 1,760 | 3,547 |
--------------------------------------------------------------------------------
| - Other administrative expenses | 19,609 | 15,542 | 31,700 |
--------------------------------------------------------------------------------
| Total staff costs and administrative | 45,890 | 37,815 | 78,240 |
| expenses | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of employees converted | | | |
| into full-time employees 107.0 (114.9 | | | |
| for H1 2006). | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5. Profit from investments in | | | |
| associates and subsidiaries | | | |
--------------------------------------------------------------------------------
| Profit from investments in associates | 0 | 0 | 0 |
| | | | |
--------------------------------------------------------------------------------
| Profit from investments in | 1,846 | 1,934 | 757 |
| subsidiaries | | | |
--------------------------------------------------------------------------------
| Total profit from investments in | 1,846 | 1,934 | 757 |
| associates and subsidiaries | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Subsidiaries and associates comprise: |
--------------------------------------------------------------------------------
| Name | Domici | Nature and scope | Owner | Equity | Profi |
| | le | of transactions | ship | 31/12 | t |
| | | | % | 2006 | 2006 |
--------------------------------------------------------------------------------
| Nor Fjor Finans | Skælsk | Purchase, sale | 100 | 21,061 | 1,116 |
| A/S | ør | and | | | |
| | | administration of | | | |
| | | securities and | | | |
| | | real estate | | | |
--------------------------------------------------------------------------------
| Hovedgaden 50, | Skælsk | Renting of | 100 | 13,173 | -164 |
| Dalmose A/S | ør | property | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notes - Parents
--------------------------------------------------------------------------------
| | Individua | Group-bas | Total |
| | l | ed | DKK'000 |
| | impairmen | impairmen | |
| | t losses | t losses | |
| | DKK'000 | DKK'000 | |
--------------------------------------------------------------------------------
| 6. Impairment losses on loans and other | | | |
| receivables, etc | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| H1 2007 | | | |
--------------------------------------------------------------------------------
| Impairment losses at 1 January 2007 | 22,916 | 1,439 | 24,355 |
--------------------------------------------------------------------------------
| Impairment losses for the period | 10,538 | 0 | 10,538 |
--------------------------------------------------------------------------------
| Reversal of prior years' impairment | -1,931 | -222 | -2,153 |
| losses | | | |
--------------------------------------------------------------------------------
| Other movements | -5,701 | 0 | -5,701 |
--------------------------------------------------------------------------------
| Impairment losses at 30 June 2007 | 25,822 | 1,217 | 27,039 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| H1 2006 | | | |
--------------------------------------------------------------------------------
| Impairment losses at 1 January 2006 | 15,357 | 1,900 | 17,257 |
--------------------------------------------------------------------------------
| Impairment losses for the period | 7,766 | 0 | 7,766 |
--------------------------------------------------------------------------------
| Reversals of prior years' impairment | -2,193 | 0 | -2,193 |
| losses | | | |
--------------------------------------------------------------------------------
| Other movements | 16 | 0 | 16 |
--------------------------------------------------------------------------------
| Impairment losses at 30 June 2006 | 20,946 | 1,900 | 22,846 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FY 2006 | | | |
--------------------------------------------------------------------------------
| Impairment losses at 1 January 2006 | 15,357 | 1,900 | 17,257 |
--------------------------------------------------------------------------------
| Impairment losses for the year | 12,146 | 0 | 12,146 |
--------------------------------------------------------------------------------
| Reversal of prior years' impairment | -3,006 | -461 | -3,467 |
| losses | | | |
--------------------------------------------------------------------------------
| Write-off | -1,581 | 0 | -1,581 |
--------------------------------------------------------------------------------
| Impairment losses at 31 December 2006 | 22,916 | 1,439 | 24,355 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 7. Contingent assets and liabilities | | | |
--------------------------------------------------------------------------------
| Financing guarantees | 1,038,514 | 966,787 | 1,092,556 |
--------------------------------------------------------------------------------
| Other guarantees | 460,599 | 426,180 | 448,085 |
--------------------------------------------------------------------------------
| Total guarantees, etc | 1,499,113 | 1,392,967 | 1,540,641 |
--------------------------------------------------------------------------------
| Other contingent liabilities | | | |
--------------------------------------------------------------------------------
| Irrevocable credit guarantees | 0 | 0 | 75,800 |
--------------------------------------------------------------------------------
| Other obligations | 46,505 | 21,378 | 46,338 |
--------------------------------------------------------------------------------
| Total other liabilities | 46,505 | 21,378 | 122,138 |
--------------------------------------------------------------------------------
Notes - Parents
--------------------------------------------------------------------------------
| | Number | Nominal value | Share of own |
| | | | shares of the |
| | | | share capital |
--------------------------------------------------------------------------------
| | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 |
| | Number | Number | DKK'00 | DKK'000 | DKK'000 | DKK'000 |
| | | | 0 | | | |
--------------------------------------------------------------------------------
| 8. Own shares | | | | | | |
--------------------------------------------------------------------------------
| Number of own | 47,131 | 73,458 | 943 | 1,469 | 2.5 | 4.0 |
| shares at | | | | | | |
| beginning of | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| Purchase | 63,056 | 84,093 | 1,261 | 1,682 | 3.4 | 4.5 |
--------------------------------------------------------------------------------
| Sale | 43,159 | 77,539 | 863 | 1,551 | 2.3 | 4.2 |
--------------------------------------------------------------------------------
| Number of own | 67,028 | 80,012 | 1,341 | 1,600 | 3.6 | 4.3 |
| shares at end of | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
