Stock exchange announcement 34 - 2008
NASDAQ OMX, Copenhagen
11 December 2008
Downward revision of Forstædernes Bank's forecasts for 2008
Core earnings before impairment losses for 2008 are expected to be in the
region of DKK 500m, or unchanged on 2007.
Impairment losses for 2008 are forecast to be about DKK 1.1bn. The figure
reflects that part of the expected impairment losses underlying the previously
announced forecast of breakeven in 2009 and 2010 have been brought forward. To
this should be added impair-ment losses resulting from markedly aggravated
economic conditions, impairment of secu-rity received and a provisioning need
in respect of a few major exposures.
Forstædernes Bank expects to post negative core earnings after impairment
losses of about DKK 600m compared with the negative core earnings of DKK
50m-100m previously forecast.
The revised forecast of loan impairments has only a modest effect on the
financial state-ments of the Nykredit Realkredit Group. The reason is that the
Nykredit Realkredit Group provided about DKK 1,500m in the opening balance
sheet in connection with the acquisi-tion of Forstædernes Bank for expected
future impairment of specific exposures which were assessed in relation to the
acquisition of the Bank.
Nykredit contributed subordinate loan capital of DKK 350m to Forstædernes Bank
on 28 November 2008.
In order to increase the share capital in the light of the expected negative
results, the Bank will convene an extraordinary general meeting to be held on
29 December 2008.
Yours sincerely
Executive Board
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Contact:
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.
