Max Bank downgrades earnings expectations for 2008

Based on a review of the Bank's preliminary financial statements for 2008, the
previously announced earnings expectations for the Bank are downgraded; please
see the Bank's quarterly report of 28 October 2008. Earnings expectations
before translation/market value adjustments and tax for 2008 are accordingly
downgraded from a loss of DKK 25-55m to a loss of DKK 140-145m. After negative
translation/market value adjustments of DKK 32m and tax, etc, a total loss
after tax of DKK 115-120m is expected. 

The downgrading is attributable primarily to both realised and expected losses
on a limited number of large loan commitments secured by way of securities, in
which the Bank's security, as a result of the declining share markets, has been
reduced considerably in value. The total loss on loans and advances is thus
expected to amount to approx DKK 190m for 2008, which is attributable primarily
to these loans and advances secured by way of securities. The indication of
impairment in 2008 has been computed in close cooperation with the Bank's
external auditors. 

The Bank's profit before impairment losses, translation/market value
adjustments and tax is for FY 2008 expected to total DKK 48m compared to DKK
39m in 2007. 

During 2008, the Bank has reduced its total loans and advances balance by DKK
750m from DKK 4.95bn at 31 December 2007 to DKK 4.2bn at 31 December 2008. 

Based on the above earnings expectations, at 31 December 2008 the capital
adequacy ratio is calculated at 11.3% in relation to the Bank's internal
capital adequacy requirement, which based on the market development has been
increased to 8.8% in accordance with the new Basel II rules. 

At year-end 2008, the Bank still has a considerable liquidity, where the excess
cover in relation to the legal requirements amounts to 161%. 

As additional information on capital structure, we point out that the Bank's
total subordinate loan capital and hybrid core capital has the following
maturity structure: 

Repayment, Type of capital, Principal(DKK'm)
March 2012, Subordinate loan capital, 50
November 2012, Subordinate loan capital, 75
June 2013, Subordinate loan capital, 50
September 2014, Subordinate loan capital, 100
May 2015, Subordinate loan capital, 100
December 2015, Subordinate loan capital, 50
Indefinite life, Hybrid capital, 100
Total DKKm 525

For 2009, Max Bank expects a moderate profit before translation/market value
adjustments and tax, ie after expected impairment losses on loan commitments
and payment of guarantee commission to the government guarantee for banks.
These earnings expectations are based on the following assumptions, among
others: 

• In 2009, the Bank's interest margin will approximately remain unchanged from
the current interest margin at year-end 2008 
• In 2009, Max Bank's costs in connection with the Bank's accession to the
government guarantee scheme for banks will not exceed approximately DKK 27m 
• Impairment losses on loans and advances total 0.5-1.0% of the aggregate loans
volume 
• The Bank will continue to pursue its conservative investment strategy with a
low share portfolio and a low interest rate risk on the bond portfolio. 

In connection with the publication of the Bank's performance for Q1-Q3 2008 on
28 October 2008, Max Bank announced a number of initiatives to improve the
Bank's prospective performance. This has ia implied a staff reduction by approx
10%. The cost-saving has been included in the above expectations for 2009, as
well as costs relating to the removal to the Bank's new main office. Max Bank
will retain its strong focus on increasing the Bank's profitability and
securing a cost base which reflects the current economic trends. 


	

Hans Fossing Nielsen	Henrik Lund
Chairman			Chief Executive Officer
 
Please direct any questions to CEO Henrik Lund, Tel: +45 21 72 17 86.