Q3 2008 in headlines Max Bank is adapting to the changing market conditions as a result of the financial crisis and the slowdown in the national economy, focusing on reduced risk, improved bottom line and consolidation. Max Bank accordingly launches initiatives to improve its bottom line - including a reduction of staff by approx 10%. Continued favourable development in the operating profit on primary banking activities, which net of extraordinary items is up by 24% to DKK 37.0m. Performance for Q1-Q3 2008 is a loss of DKK 27.5m after tax, which is massively impacted by unrealised negative translation/market value adjustments of DKK 31.5m and impairment losses of DKK 56.5m. Undiminished considerable excess liquidity of 124.1% in relation to the legal requirements, corresponding to approx DKK 900m, to which should be added new credit facilities of approx DKK 400m, which is attributable to the new borrowing facilities in the Nationalbanken. Continued high capital adequacy ratio of 16.2%, where the internal capital adequacy requirement calculated in accordance with the new Basel II rules amounts to 8.6%. Earnings expectations before translation/market value adjustments and tax for FY 2008 have been adjusted downwards from a profit of DKK 25-30m to a loss of DKK 35-55m due to developments in Q1-Q3 and the risk of increased write-downs for impairment in Q4 2008. For 2009, Max Bank again expects positive results as a result of the launched initiatives.
Q1 - Q3 2008
| Source: Max Bank A/S