2008 results - Capinordic Group: Level of activity increased by 22 per cent, but results affected by impairment of assets and loan loss provisions - published in Danish 24.03.2009 at 05:04:38

Translation
This text has been prepared in Danish and in English. In case of discrepancies,
the Danish text will prevail. 

Figures in brackets are comparative figures for the same period last year.


Company announcement No. 4/2009 

24 March 2009

2008 results - Capinordic Group: Level of activity increased by 22 per cent,
but results affected by impairment of assets and loan loss provisions 

The Capinordic Group (ticker symbol: CAPI DC) today published its Annual
Report: Net interest and fee income amounted to DKK 374m, negative EBTDA was
DKK 159m and the loss after tax came to DKK 419m (after impairment of
intangible assets of DKK 273m). 

Capinordic maintained an increase in its level of activity, and net interest
and fee income rose by 22 per cent compared with 2007. With the increase, 80
per cent (73 per cent) of the Group's recurring costs are covered by recurring
revenues. Income from Investment Banking and market value and forex translation
adjustments (non-recurring revenue) is not included in the calculation of this
ratio. The Group carried out a number of cost cutting initiatives at the end of
2008 and the beginning of 2009 and will maintain its focus on improving this
ratio. 

Amongst Capinordic's three Business Areas the development was as follows:

Banking 
Net interest and fee income: 211(230)
EBTDA: -195(153)
Impairment losses on intangible assets: -195(0)
Profit (loss) before tax: -429(117)
Total assets: 2,450(3,022)
Total liabilities:	1,253(1,416)


Asset Management
Net interest and fee income: 81(19)
EBTDA: 32(1)
Impairment losses on intangible assets: -78(0)
Profit (loss) before tax: -52(1)
Total assets: 205(179)
Total liabilities:	30(15)

Private Financial Services 
Net interest and fee income: 73(54)
EBTDA: 27(13)
Impairment losses on intangible assets: 0(0)
Profit (loss) before tax: 8(-1)
Total assets: 495(617)
Total liabilities:	93(111)		


Banking
The Banking Business Area was also subject to the difficult market conditions.
Private Banking saw a lower activity level mainly attributable to lower income
from private equity transactions and alternative investments. Investment
Banking saw satisfactory development, realising an increase in its income of 5
per cent. 


Asset Management 
Within the Business Area Asset Management, one focal point throughout 2008 was
the introduction of Capinordic funds. Net inflow of assets under management of
DKK 3.2bn  at year-end 2008, the consolidated assets under management amounted
to DKK 16.4bn. 

Private Financial Services 
The objective for Private Financial Services is to maintain a high customer
inflow and customer focus. It was therefore very satisfactory to see a net
inflow of approx. 20 thousand customer agreements despite the difficult market
conditions. In accordance with strategy, Private Financial Services
additionally focused on enlarging its range of products and developed new
products offered to the Group's existing and potential customers. 


Capital adequacy ratio among the highest in the industry
Total consolidated assets were DKK 3.2bn at year-end 2008 (after recognition of
impairment losses, etc.), and equity came to DKK 1.8bn. The consolidated
capital adequacy ratio was 46 per cent, which is among the highest for
Scandinavian financial players. 

Capinordic has built a satisfactory deposit surplus through traditional banking
activities. Capinordic did not attract capital through the interbank market,
and the Group has an adequate liquidity level. 


Milestones in 2008
Capinordic implemented a number of strategic objectives:
-Launch of Capinordic Bank in Sweden
-Continued high customer inflow
-Organisational and management structure in place with three new Business Areas
and completion of mergers 
-Introduction of new products, including Capinordic funds, several of which
achieved a satisfactory ranking on Morningstar.se 

Initiatives in 2009
To improve results, the focus for 2009 will be: 
-To strengthen the Group's exposure and profile within Asset Management
-To maintain a high customer inflow to Private Financial Services
-To strengthen the customer base within Private Banking and to maintain the
high level of activity within Investment Banking 


Expectations
The Group expects more volatile earnings than usual relative to the individual
quarters, and the expectations for 2009 are fixed within a fairly wide
interval. Capinordic expects: 
-Net interest and fee income amounting to DKK 275-350m
-Profit before tax (exclusive of market value and forex translation adjustments
and loan impairment) at a level of DKK 0-75m 

The complete Annual Report 2008 is attached, and is also available at
www.capinordic.com 

Yours sincerely

Lasse Lindblad
CEO



For further information, please contact:
Lasse Lindblad, CEO
+45 8816 3000, 
+45 4094 0708, 
info@capinordic.com



Comment by Lasse Lindblad, CEO:
“Capinordic was affected by an extremely challenging financial year, our share
price dropped substantially, and our results were not satisfactory. Despite
difficult market conditions, however, Capinordic increased its level of
activity by 22 per cent and can maintain a capital adequacy ratio among the
highest in the market. 

Capinordic successfully realised a number of specific milestones for 2008: as
an example we launched Capinordic Bank in Sweden, saw continued high inflow of
new customers and streamlined the organisation into three new Business Areas. 

At the end of 2008 and the beginning of 2009, we also reviewed our costs and
initiated a number of cuts, particularly on staff and administrative expenses.
The cuts will begin to have an effect from mid-2009, but will only fully impact
in 2010. 

For 2009, our focus is still to maintain the high inflow of customers and
strengthen our profile within Asset Management while focusing on our costs.”