Management
Vestre Stationsvej 7
Postboks 189
DK-5100 Odense C
Tel.: +45 6520 4060
Fax: +45 6617 8394
www.fioniabank.dk
12 January 2009
NASDAQ OMX Copenhagen A/S
Announcement no. 1/2009
Adjustment of strategy
Based on the development in the autumn 2008, the Management of the bank has
adjusted the banks business strategy and assessed the cost level in relation to
the present business possibilities and has compared the cost level to
comparable banks. As a consequence the bank has decided to reduce the number of
employees with up to 70 employees, corresponding to about 10% of the total
staff at the end of 2008. The reductions of employees will be executed within
all functions in the bank, but with different weight according to the assessed
business potential.
Fionia Bank's position as a strong regional bank focusing on Funen and the
Triangle Region will generally continue unchanged, but business and customer
focus will be strengthened further by appointing directors for private
customers, business customers and Markets with reference to the Management of
the bank. Concurrently, material changes in the organisation and the
co-operation with the staff functions will be made.
A phase-out of the bank's commitments within larger, commercial property
projects and mortgage financing is started. The bank's present portfolio of
larger commitments within the property area is managed by a group of
specialists. The focus and effort during the latest months - in connection with
the incipient reduction I in market rates - has at present slightly improved
the bank's risk position in some of the commitments and has reduced the
concentration of loans to the bank's largest
customers.
The adjusted strategy makes it possible to increase the banks focus on private
customers and smaller and medium-sized business customers on Funen and the
Triangle Region. The banks strategy towards wealthy costumers and the
cooperation with local saving banks in connection with the banks competence
within wealth management, asset management and securities trading will also be
developed further.
The reduction of the staff - where the conditions has been negotiated with the
Financial Services Union - will only have a limited effect on the banks cost
level in 2009, but is expected to result in a significant improvement of the
bank's financial ratios from 2010. The Management assesses this to be a
condition for attracting capital for the future development of the bank and to
access the international capital markets on competitive terms.
Please address any questions to this announcement to member of the Executive
Board Kaj Østergaard Mortensen.
Yours sincerely
Henrik Borup Jeppesen
Member of the Executive Board
Kaj Østergaard Mortensen
Member of the Executive Board
