The consolidated profit forecast is downgraded as a result of substantial
negative value adjustments on the bank's portfolio of securities and an
increase in write-downs on Alm. Brand Bank's loan portfolio. The full-year
profit guidance is lowered to a loss of DKK 250m from a loss of DKK 15m as
provided in our most recent forecast announced in mid-August 2008 in connection
with the release of the financial statements for the first half-year of 2008.
• The bank's operating activities are performing in line with expectations.
• However, due to the very negative equity market sentiment and higher interest
rates, the bank expects to record a significant loss on its portfolio of
securities for the full year 2008.
• In addition, the deteriorating economic conditions in Denmark have caused an
increase in the forecast for write-downs on the bank's loan portfolio and
mortgage deeds. As a result, the full-year write-downs including credit losses
on mortgage deeds are expected to increase from around DKK 70m as announced in
mid-August to DKK 200m, corresponding to additional write-downs in the amount
of DKK 130m.
• Finally, the profit guidance for the bank is reduced by a commission payment
of approximately DKK 20m to the state-backed scheme to safeguard depositors and
simple creditors.
Please direct any questions concerning this announcement to Henrik Nordam,
Chief Executive, on tel. +45 3547 4849 or Susanne Biltoft, Investor Relations
Manager, on tel. +45 3547 7661.
Yours sincerely,
Alm. Brand Bank A/S
Henrik Nordam
Chief Executive
