Company Announcement 4 - 2008
The OMX Copenhagen Stock Exchange
7 February 2008
Annual Report 2007 - Increase in Core Earnings of 34 %
2007 Results The Forstædernes Bank results before tax and extraordinary items
increased by 11 % and the post-tax results by 16 % compared to 2006.
Extraordinary profits include a one-off profit of DKK 168m from the sale of
Totalkredit and the revaluation of shares in Sparinvest Holding A/S in 2006.
• The Forstædernes Bank pre-tax results were DKK 359m in 2007 compared to DKK
323m exclusive of the extraordinary profit in 2006. After tax the results were
DKK 275m compared to DKK 237m in 2006 (DKK 405m inclusive of extraordinary
profits).
• Increase in core earnings of DKK 113m to record-breaking result of DKK 442m.
This is 34 % more than the previous record-breaking results in 2006.
• Total growth in our business scope, i.e. deposits, loans/advances, guarantees
and securities in account by a total of DKK 9bn, corresponding to 13 %. In
addition to this the Bank manages securities in account for investment funds to
the order of DKK 45bn.
• Progress in largely all core income areas.
• Net interest income increased by 26 % and ongoing income from securities
trade, asset management and clients' currency transactions increased by 22 %
altogether.
• Improvement of cost rate from 60.3 % in 2006 to 56.7 % in 2007.
• Solvency of 11.2 % and excess liquidity cover of DKK 4.2bn.
Expectations and actions in 2008
In 2008 core earnings are expected to lie between DKK 400m and 450m, which is
level with the record-breaking results in 2007. Compared to the equity as at
the beginning of the year this corresponds to a return of 18 % to 20 %.
• Continued growth in other income, particularly within the asset concept,
investments and currency areas.
• Toughened strategy in the business area with balanced business development
and focus on the best part of the enterprises in terms of credit quality.
• Subdued growth in loans/advances and active work to attract deposits and
securities in account.
• Further improvement of the cost rate to about 52 % by the end of 2008.
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Contact person:
Steffen Torvits, Investor Relations & Press Manager, tel. +45 22 22 20 36
This announcement has been issued both in Danish and English. In case of any
discrepancies, the Danish version shall prevail.
