Company Announcement 28 - 2008
The OMX Copenhagen Stock Exchange
6 November 2008
Q1-Q3 Report - 2008
Core earnings before impairment losses come to DKK 401m in the first nine
months of 2008, which is 12% up on last year. Core earnings after impairment
losses come to DKK 226m in the first nine months of 2008 compared to DKK 342m
in 2007. The core earnings after impairment losses give a return of 14% on
equity as of the beginning of the year.
In the same period, earnings from investment portfolios are minus DKK 279m
which is not satisfactory and a consequence of the development in the
securities markets.
In the first nine months, pre-tax results then come to minus DKK 53m against
plus DKK 301m in the same period of 2007.
• The combination of rising funding interest and the adverse development in
both the bond and share markets has contributed to negative earnings on our
investment portfolios.
• Net interest income in core earnings increased by 12%.
• Trading income as part of core earnings increased by 6%, among other things
due to increased activity in clients' trading in currencies.
• The cost rate improved from 56.1% to 55.2%.
• Impairment losses amount to DKK 175m corresponding to 0.8% of total
loans/advances and guarantees; this should be seen in the light of the economic
slowdown.
As announced on 6 October 2008, the Bank's participation in the Danish
government guarantee scheme means a downward adjustment of our expectations of
core earnings for all 2008 of about DKK 30m. In addition to this the
continuously deteriorating economic development resulting in impaired
collateral and securities assets means that the Bank is expecting rising
impairment losses in Q4 2008. Core earnings after impairment losses for all
2008 are thus expected to come to the level of minus DKK 50 to minus DKK 100m
compared to the plus DKK 220m to 270m previously announced.
Since 30 September 2008 the Bank's earnings from investment portfolios has been
hit by the continu-ously adverse development in the financial markets with
price drops in both shares and bonds.
As announced on 14 October 2008 Nykredit Realkredit has decided to realize its
purchase of Forstædernes Bank.
The Executive Board
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Contact person:
Steffen Torvits, Investor Relations and 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.
