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| 13. October 2008 |
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| OMX Nordic Stock Exchange Copenhagen | |
| Nikolaj Plads 6 | |
| 1007 København K | |
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Stock exchange announcement no 23/2008
Lokalbanken joins the new Government guarantee.
The Danish Government has issued a 2-year guarantee for all deposits and
unsecured claims in Danish banks.
Today, Lokalbanken decided to join the new guarantee scheme which is
administered by the Danish banking sector's contingency association, "Det
Private Beredskab".
The accession to the guarantee scheme implies that Lokalbanken's net fee income
in the next two years will be burdened by approx DKK 25m annually. To this may
be added additional expenses if payment of excess and guarantee commission is
sustained, cf the terms and conditions of the scheme.
In 2008, Lokalbanken's participation in the scheme is expected to affect the
Bank's pre-tax profit negatively by DKK 5-6m.
Lokalbanken's profit for 2008 will be adjusted downwards by this amount and a
further amount of approx DKK 20m due to the significant unrealised capital loss
on the Bank's portfolio of securities, especially in the most recent period of
the quarter. At the same time, a slightly increasing need for write-downs in
relation to the initially budgeted amount has been identified. The basic
operations of Lokalbanken continue to develop in a satisfactory manner.
The Bank's pre-tax profit for 2008 is therefore expected to amount to approx DKK
25-35m.
Lokalbanken's Supervisory Board has in conformity with the intentions of the new
scheme decided that no dividends will be paid in the next two years.
Yours faithfully
Lokalbanken i Nordsjælland a/s
Executive Board
Bruno Riis-Nielsen
