Highlights:
• Satisfying result on an extremely solid foundation
• Pre-tax profit DKK 458m compared to DKK 88m in H1 2009
• High solvency ratio 17.7%
• Return on equity 20%
• Impairment level back to historical average - DKK 35m compared to DKK 56m in
H1 2009
• Integration of acquired branches are progressing as planned and they
contribute positively
• Outlook before tax and value adjustments for 2010 maintained in the interval
DKK 470-510m
The pre-tax profit was DKK 458m compared to DKK 88m in the same period last
year. The strong development was primarily due to the sale of Bakkafrost
Holding, which contributed with a capital gain of DKK 380m in Q1 2010.
In H1 2010 interest and fee income and income from insurance activities
increased by 27% to DKK 308m from DKK 242m in H1 2009.
”The result is satisfying - not least because the acquired Danish and
Greenlandic branches already contribute positively, but also because this half
year brought a
normalization of the impairment level”, says Janus Petersen, CEO.
The bank's capital base is still one of the strongest in the Danish banking
sector. Therefore, and because of the bank's strong market position, BankNordik
expects a positive effect on liquidity when the collective governmental state
guarantee on deposits expires by the end of September 2010. Furthermore,
BankNordik is able to withstand even the most extreme - and completely unlikely
- scenario, in which all deposits not covered by the EUR 100,000 guarantee,
which will be introduced by the end of September, is withdrawn.
Forecast 2010
The management maintains the expectations of a Group pre-tax profit before
value adjustment in the interval DKK 470-510m in 2010.
Further the Group now projects impairments in 2010 to be in the range of DKK
70-80m including provisions for guarantees relating to the Private Contingency
Association. Impairments in 2011 are expected to be below the average level the
last 15 years - corresponding to 0.5% of exposures.
Please refer to the H1 Financial Statements for further information.
The interim report is presented at a conference call for analysts and investors
today at 12:30 CET. If you would like to participate in the audio cast, please
dial the relevant number below a couple of minutes before the conference
starts:
International Participants dial: + 44 (0) 207 509 5139
US participants dial: + 1 718 354 1226
Danish participants dial: + 45 32 71 47 67
The presentation will be accessible on the website at www.foroya.fo.
Further information:
Janus Petersen, CEO, tel. (+298) 330 340
