(million DKK) | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 |
Core income | 767 | 758 | 753 | 735 | 696 | 609 | 511 | 417 | 368 | 328 |
Total costs etc. | -248 | -240 | -238 | -239 | -234 | -208 | -190 | -184 | -163 | -155 |
Core earnings before write-downs | 519 | 518 | 515 | 496 | 462 | 401 | 321 | 233 | 205 | 173 |
Write-downs on loans | -129 | -138 | -159 | -77 | +11 | +69 | +5 | +4 | -10 | +6 |
Core earnings | 390 | 380 | 356 | 419 | 473 | 470 | 326 | 237 | 195 | 179 |
Result for portfolio | +1 | +38 | +56 | -73 | -18 | +103 | +35 | +51 | +106 | +30 |
Bank package I and Deposit Guarantee Fund |
-11 | -80 | -107 | -28 | 0 | 0 | 0 | 0 | 0 | 0 |
Profit before tax | 380 | 338 | 305 | 318 | 455 | 573 | 361 | 288 | 301 | 209 |
The core earnings increased by 3% to DKK 390 million, which is at the top of the upwardly adjusted DKK 350-400 million range.
Annual report – highlights:
- Increase of 12% in pre-tax profit from DKK 338 million to DKK 380 million
- The profit is equivalent to a return on equity of 17% after payment of dividend
- The rate of costs was computed at 32.4%, still the lowest in the country
- Substantial increase in deposits of 9% and a fall of 3% in loans, so that they now are in balance
- Capital adequacy ratio of 21.4, equivalent to cover of 268%
- Core capital ratio of 19.8%
- The bank’s market value is DKK 3.3 billion
- Highly satisfactory increase in customers in both branch network and Private Banking
- Payment of dividend of DKK 13 per share, equivalent to DKK 66 million
- Recommendation to the general meeting that 100,000 bought back shares be cancelled
- Proposal for a new buy-up programme for 100,000 shares, equivalent to approx. DKK 66 million
- Expectations of core earnings for 2012 in the DKK 300-400 million range
- The CEO Bent Naur will retire at the end of April 2012
Please do not hesitate to contact the bank’s management if you have any questions.
Yours sincerely, | ||
Ringkjøbing Landbobank | ||
Bent Naur | John Fisker |
Management Report
Changes in management
Bent Naur has decided to retire at the end of April 2012 on the occasion of his sixty-fifth birthday. Bent Naur has been CEO of the bank since 1987.
The board of directors has appointed John Bull Fisker as the new CEO as of 1 May 2012. John Bull Fisker is 47 years old and has been an employee of the bank since 1995. John Bull Fisker has been a member of the board of management since 1999.
Jørn Nielsen has been appointed assistant manager of the bank as of 1 March 2012. Jørn Nielsen is 39 years old and has been an employee of the bank since 1993. Jørn Nielsen was appointed credit controller in 1998 and credit manager in 2009.
Core income
Net interest income was DKK 607 million in 2011, an increase of 4% compared to last year. An upward trend was seen during the year in the net interest income, which derives from the increasing deposit figures and a increasing interest margin. Like the rest of the financial sector, the bank increased the interest margin in 2011. The very low interest level is pulling in the opposite direction as it results in a lower return on the bank’s portfolio of securities and cash resources.
(Million DKK) | 4th qtr. 2011 | 3rd qtr. 2011 | 2nd qtr. 2011 | 1st qtr. 2011 | 4th qtr. 2011 | 3rd qtr. 2011 | 2nd qtr. 2011 | 1st qtr. 2011 |
Net interest income | 163 | 154 | 150 | 140 | 139 | 144 | 150 | 150 |
Fees, commissions and foreign exchange earnings amounted to net DKK 152 million in 2011 against net DKK 167 million in 2010, a fall of 9%. The year was characterised by low trading and conversion activity within securities trading and asset management, and the larger volumes therefore did not result in a corresponding increase in income. The activity on the housing market was also low, with fewer transactions and conversions.
The total core income was 1% higher in 2011, with an increase from DKK 758 million in 2010 to DKK 767 million in 2011.
Costs and depreciations
Total costs including depreciations on tangible assets amounted to DKK 248 million in 2011, 4% higher than last year.
The rate of costs was computed at 32.4%, still the lowest in the country. A low rate of costs is especially important in periods of difficult economic conditions as the bank’s results are thus very robust, which is also reflected in the computation of the bank’s individual solvency requirement.
Write-downs on loans
Write-downs on loans showed a fall of 7% to net DKK 129 million in 2011 against DKK 138 million last year. The write-downs are equivalent to 0.9% of the total average of loans, write-downs, guarantees and provisions. The bank’s customers appear to be coping better with the weak economic conditions than the average in Denmark. The present level of write-downs is considered satisfactory.
The bank’s total account for write-downs and provisions amounted to DKK 650 million at the end of the year, equivalent to 4.5% of total loans and guarantees. Actual write-downs on loans (including interest on the account for write-downs) continue to be low at a mere DKK 43 million, such that the account for write-downs and provisions increased by net DKK 85 million during the year.
The portfolio of loans with zeroed interest amounts to DKK 61 million, equivalent to 0.43% of the bank’s total loans and guarantees at the end of the year. This is at the same level as last year.
Given the low growth in the Danish economy also in 2011, which is expected to continue in 2012, the bank is satisfied with the conservative credit policy on the basis of which the bank has always operated. As a natural part of the economic cycle, the bank’s losses are expected to remain at a relatively high level in 2012, but with a continued slightly downward trend relative to the previous three years. It is also still the bank’s judgment that the credit policy, the diversified loans portfolio and the bank’s location in Central and West Jutland will have a positive effect on the bank compared to the general level of losses in the banking sector as a whole.
Core earnings
(Million DKK) | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 |
Total core income | 767 | 758 | 753 | 735 | 696 | 609 | 511 | 417 | 368 | 328 |
Total costs etc. | -248 | -240 | -238 | -239 | -234 | -208 | -190 | -184 | -163 | -155 |
Core earnings before write-downs | 519 | 518 | 515 | 496 | 462 | 401 | 321 | 233 | 205 | 173 |
Write-downs on loans | -129 | -138 | -159 | -77 | +11 | +69 | +5 | +4 | -10 | +6 |
Core earnings | 390 | 380 | 356 | 419 | 473 | 470 | 326 | 237 | 195 | 179 |
Core earnings were DKK 390 million against last year’s DKK 380 million, an increase of 3%. Income in 2011 proved to be so stable that the expectations for core earnings were adjusted upward to the DKK 350-400 million range in October 2011, and the final result is at the top of this range.
Result for the portfolio
The result for the portfolio for 2011 was positive by DKK 1.5 million, including funding costs for the portfolio.
The bank’s holding of shares etc. at the end of the year amounted to DKK 249 million, DKK 12 million of which was in listed shares etc. while DKK 237 million was in sector shares etc. The bond portfolio amounted to DKK 2,756 million, and the great majority of the portfolio consists of AAA-rated Danish mortgage credit bonds and bonds guaranteed by the Danish government, or short-term bank bonds.
The total interest rate risk, computed as the impact on the result of a one percentage point change in the interest level, was 0.7% of the bank’s Tier 1 capital after deduction at the end of the year.
The bank’s total market risk within exposure to interest rate risk, exposure in listed shares etc. and foreign exchange exposure remains at a low level. The bank’s risk of losses calculated on the basis of a value-at-risk model (computed with a 10-day horizon and 99% probability) was as follows in 2011:
Risk in DKK million |
Risk relative to equity end of year in % |
|
Highest risk of loss: Lowest risk of loss: Average risk of loss: |
21.1 1.7 8.4 |
0.85% 0.07% 0.34% |
The bank’s policy remains to keep the market risk at a low level.
Result after tax
The result after tax was DKK 286 million for the year against DKK 257 million last year.
The result after tax is equivalent to a return on equity of 13% after payment of dividend.
Balance sheet
The bank’s balance sheet total at the end of the year stood at DKK 17,549 million against last year’s DKK 18,247 million. Deposits increased by 9% from DKK 11,662 million to DKK 12,755 million. The bank’s loans decreased by 3% to DKK 12,747 million. The underlying growth in new customers from the branch network and within the niches Private Banking and wind turbine financing remains good. However, the changed consumption pattern with a higher savings ratio and the general trend that many customers are deleveraging are generally resulting in greater repayments on the bank’s existing loans portfolio than previously, and the entire growth in 2011 was therefore used to neutralise these repayments.
The bank’s portfolio of guarantees at the end of the year was DKK 1,052 million against DKK 1,049 million in 2010.
Liquidity
The bank’s liquidity is good, and since the banks loans and deposits are at the same level, we made early repayments in the second half-year of 2011 of long-term loans to the equivalent of DKK 1,063 million to optimise the bank’s liquidity. The excess solvency compared to the statutory requirements was 141%. The bank’s short-term funding with term to maturity of less than 12 months amounts to only DKK 390 million, balanced by DKK 4.1 billion in short-term money market placing, primarily in Danish banks and liquid securities.The bank is thus not dependent on the short-term money market.
The bank’s loans portfolio is more than fully financed by deposits and the bank’s equity. In addition, part of the German loans portfolio for wind turbines was refinanced back-to-back with KFW Bankengruppe, and the DKK 808 million in question can thus be disregarded in terms of liquidity. The bank requires no financing for the coming year to meet the minimum requirement that it must always be able to manage for up to 12 months without access to the financial markets.
The deposit guarantee scheme
Ringkjøbing Landbobank has a liability to the mandatory deposit guarantee scheme in Denmark for rescuing Danish banks. The bank’s share of these losses is 0.6%. Amagerbanken, Fjordbank Mors and Max Bank went bankrupt in 2011, and based on the latest available dividend rates, this cost the bank DKK 11.2 million.
Dividend and share buy-back programme
The bank’s board of directors will recommend to the general meeting that dividend of DKK 13 per share, equivalent to DKK 66 million, be paid for the 2011 financial year. Dividend of DKK 12 was paid in 2010. In addition, 100,000 shares at a value of DKK 61 million were bought up during 2011, and a recommendation will be made to the general meeting to cancel these shares to reduce the number of shares in the bank from 5,040,000 to 4,940,000.
A proposal will also be made that a new buy-back programme be established for 2012 under which up to 100,000 shares can be bought up for the purpose of cancelling them at a future general meeting. At the current price this authorisation will reduce equity by DKK 64 million.
Capital
The bank’s equity at the beginning of 2011 was DKK 2,312 million, to which must be added the profit for the period, and from which must be deducted dividend paid and the value of the bought-back own shares, after which the equity at the end of the year was DKK 2,483 million, an increase of 7%.
The bank’s capital adequacy ratio (Tier 2) was computed at 21.4% at the end of 2011. The core capital ratio (Tier 1) was computed at 19.8%.
Solvency coverage | 2011 | 2010 | 2009 | 2008 | 2007 |
Core capital ratio excl. hybrid core | 18.3 | 17.1 | 15.1 | 11.6 | 10.0 |
Core capital ratio | 19.8 | 18.6 | 16.6 | 13.0 | 11.2 |
Solvency ratio | 21.4 | 22.4 | 20.2 | 16.3 | 13.0 |
Individual solvency requirement | 8.0 | 8.0 | 8.0 | 8.0 | 8.0 |
Solvency coverage | 268% | 280% | 253% | 204% | 163% |
The individual solvency requirement for Ringkjøbing Landbobank is calculated at 7,0% because of the bank’s robust business model, and the ratio was thus reported at 8%.
Encouraging increase in customer numbers
The bank implemented several outreach initiatives towards new customers just under two years ago. The basis was the fact that the bank has both the liquidity and the capital to support growth, that we felt comfortable about the bank’s credit facilities, and that our cost structure is suitable for the future. The biggest challenge in times of low growth in society is thus creating growth in the bank’s top line.
The bank’s outreach initiatives will be intensified in 2012, among other things by investing in spreading the bank’s Private Banking platform even further.
A highly positive increase in customers is currently being seen in the branch network and within the Private Banking segment, with transfer of deposits, pension and securities customers. The growth in lending has been swallowed up by repayments on the loans portfolio. In the bank’s judgment, we are, however, currently enhancing the foundation for future earnings.
Accounting policies and key figures
The accounting policies applied are unchanged relative to the audited annual report presented for 2010.
Expectations for earnings in 2012
The bank’s core earnings for 2011 were DKK 390 million, which is at the top of the upwardly adjusted DKK 350-400 million range.
Ringkjøbing Landbobank has a market share of about 50% in that part of western Jutland in which its old branches are located. The bank also has well-established branches in Herning, Holstebro and Viborg which are still operating positively. The bank’s plan is to retain and develop this section of the customer portfolio with good and competitive products, focusing on employee skills and advising customers of the options in a changeable financial world. Additional customers are expected to be gained in 2012 for the bank’s branches in central and western Jutland as a result of the long-term recruitment initiatives and the consolidation in the sector.
The activities in the bank’s Distance Customer department and niche concepts, including the branch in Holte, are together also expected to continue to develop positively in the forthcoming year despite large repayments on the loans portfolio. The focus will be on servicing of the bank’s current customers and further developing of the portfolio within wind turbine financing, medical practitioners and affluent customers.
The expectations for the core earnings for 2012 are in the DKK 300-400 million range. To this must be added the result of the bank's trading portfolio and possible expenses for the deposit guarantee scheme.
Main and key figures
2011 | 2010 | 2009 | 2008 | 2007 | |
Main figures for the bank (million DKK) | |||||
Total core income | 767 | 758 | 753 | 735 | 696 |
Total costs and depreciations | -248 | -240 | -238 | -239 | -234 |
Core earnings before write-downs on loans | 519 | 518 | 515 | 496 | 462 |
Write-downs on loans etc. | -129 | -138 | -159 | -77 | +11 |
Core earnings | 390 | 380 | 356 | 419 | 473 |
Result for portfolio | +1 | +38 | +56 | -73 | -18 |
Costs bank package I and Deposit Guarantee Fund | -11 | -80 | -107 | -28 | 0 |
Profit before tax | 380 | 338 | 305 | 318 | 455 |
Profit after tax | 286 | 257 | 232 | 240 | 348 |
Shareholders’ equity | 2,483 | 2,312 | 2,056 | 1,785 | 1,779 |
Total capital base | 2,818 | 2,943 | 2,747 | 2,458 | 2,110 |
Deposits | 12,755 | 11,662 | 11,187 | 9,073 | 9,162 |
Loans | 12,747 | 13,151 | 13,047 | 13,897 | 14,135 |
Balance sheet total | 17,549 | 18,247 | 17,928 | 18,002 | 19,634 |
Guarantees | 1,052 | 1,042 | 1,486 | 2,386 | 4,804 |
Key figures for the bank (per cent) | |||||
Pre-tax return on equity, beginning of year | 16.9 | 16.5 | 17.1 | 19.6 | 29.3 |
Return on equity after tax, beginning of year | 12.7 | 12.5 | 13.0 | 14.7 | 22.4 |
Rate of costs | 32.4 | 31.6 | 31.6 | 32.4 | 33.7 |
Core capital ratio | 19.8 | 18.6 | 16.6 | 13.0 | 11.2 |
Solvency ratio | 21.4 | 22.4 | 20.2 | 16.3 | 13.0 |
Key figures per 5 DKK share (DKK) | |||||
Core earnings | 79 | 75 | 71 | 83 | 94 |
Profit before tax | 77 | 67 | 60 | 63 | 90 |
Profit after tax | 58 | 51 | 46 | 48 | 69 |
Net asset value | 489 | 459 | 408 | 354 | 353 |
Price, end of period | 579 | 725 | 609 | 310 | 858 |
Dividend | 13 | 12 | 0 | 0 | 30 |
Profit and loss account
Note |
1.1 - 31.12 2011 DKK 1,000 |
1.1 - 31.12 2010 DKK 1,000 |
|
1 | Interest receivable | 858,257 | 836,339 |
2 | Interest payable | 245,291 | 241,954 |
Net income from interest | 612,966 | 594,385 | |
3 | Dividend on capital shares etc. | 1,111 | 1,219 |
4 | Income from fees and commissions | 158,303 | 170,389 |
4 | Fees and commissions paid | 24,312 | 25,996 |
Net income from interest and fees | 748,068 | 739,997 | |
5 | Value adjustments | +16,386 | +52,159 |
Other operating income | 4,535 | 3,893 | |
6,7 | Staff and administration costs | 244,068 | 236,374 |
Amortisation, depreciation and write-downs on intangible and tangible assets |
4,375 | 3,219 | |
Other operating costs | |||
Miscellaneous other operating costs | 381 | 195 | |
Costs bank package I and Deposit Guarantee Fund | 11,178 | 46,590 | |
Write-downs on loans and debtors etc. | |||
11 | Write-downs on loans and debtors | -128,799 | -138,217 |
Write-downs on national bank package I etc. | 0 | -33,152 | |
Result of capital shares in associated companies | +11 | +14 | |
Profit before tax | 380,199 | 338,316 | |
8 | Tax | 94,128 | 81,443 |
Profit after tax | 286,071 | 256,873 | |
Other comprehensive income | 0 | 0 | |
Comprehensive income after tax | 286,071 | 256.873 |
Proposed distribution of profit
Total available | 286,071 | 256,873 | |
Dividend | 65,520 | 60,480 | |
Other purposes | 500 | 500 | |
Transferred to reserve for net revaluation under the intrinsic value method | +11 | +14 | |
Appropriation to own funds | 220,040 | 195,879 | |
Total distribution | 286,071 | 256,873 |
Core earnings
1.1 - 31.12 2011 DKK 1,000 |
1.1 - 31.12 2010 DKK 1,000 |
|
Net income from interest | 606,576 | 583,398 |
Net income from fees and provisions excl. commission | 115,200 | 118,145 |
Income from sector shares | 4,437 | 3,931 |
Foreign exchange income | 17,914 | 22,440 |
Other operating income etc. | 4,535 | 3,893 |
Total core income excl. trade income | 748,662 | 731,807 |
Trade income | 18,791 | 26,248 |
Total core income | 767,453 | 758,055 |
Staff and administration costs | 244,068 | 236,374 |
Amortisation, depreciation and write-downs on intangible and tangible assets |
4,375 | 3,219 |
Other operating costs | 381 | 195 |
Total costs etc. | 248,824 | 239,788 |
Core earnings before write-downs on loans | 518,629 | 518,267 |
Write-downs on loans and debtors | -128,799 | -138,217 |
Core earnings | 389,830 | 380,050 |
Result for portfolio | +1,547 | +38,008 |
Costs bank package I and Deposit Guarantee Fund | -11,178 | -79,742 |
Profit before tax | 380,199 | 338,316 |
Tax | 94,128 | 81,443 |
Profit for after tax | 286,071 | 256,873 |
Balance sheet
Note |
End Dec. 2011 DKK 1,000 |
End Dec. 2010 DKK 1,000 |
|
Assets | |||
Cash in hand and claims at call on central banks | 33,935 | 59,597 | |
9 | Claims on credit institutions and central banks | ||
Claims at notice on central banks | 186,989 | 1,329,844 | |
Money market operations and bilateral loans - term to maturity under 1 year |
536,453 | 1,063,528 | |
Bilateral loans - term to maturity over 1 year | 590,876 | 261,335 | |
10,11,12 | Loans and other debtors at amortised cost price | 12,746,560 | 13,151,216 |
Loans and other debtors at amortised cost price | 11,938,197 | 12,326,328 | |
Wind turbine loans with direct funding | 808,363 | 824,888 | |
13 | Bonds at current value | 2,755,912 | 1,546,282 |
14 | Shares etc. | 249,054 | 257,253 |
Capital shares in associated companies | 538 | 527 | |
Land and buildings total | 74,722 | 75,662 | |
Investment properties | 6,681 | 7,261 | |
Domicile properties | 68,041 | 68,401 | |
Other tangible assets | 4,893 | 4,430 | |
Actual tax assets | 12,255 | 20,827 | |
Temporary assets | 1,382 | 150 | |
Other assets | 348,567 | 469,600 | |
Periodic-defined items | 6,887 | 6,953 | |
Total assets | 17,549,023 | 18,247,204 |
Balance sheet
Note |
End Dec. 2011 DKK 1,000 |
End Dec. 2010 DKK 1,000 |
|
Liabilities and equity | |||
15 | Debt to credit institutions and central banks | ||
Debt to central banks | 0 | 0 | |
Money market operations and bilateral credits - term to maturity under 1 year |
285,028 | 636,326 | |
Bilateral credits - term to maturity over 1 year | 148,684 | 1,170,976 | |
Bilateral credits from KfW Bankengruppe | 808,363 | 824,888 | |
16 | Deposits and other debts | 12,755,415 | 11,661,654 |
17 | Issued bonds at amortised cost price | 338,958 | 337,617 |
Other liabilities | 301,813 | 592,871 | |
Periodic-defined items | 183 | 282 | |
Total debt | 14,638,444 | 15,224,614 | |
Provisions for pensions and similar liabilities | 5,146 | 5,858 | |
Provisions for deferred tax | 4,789 | 3,929 | |
11 | Provisions for losses on guarantees | 5,038 | 1,383 |
Other provisions for liabilities | 0 | 2,077 | |
Total provisions for liabilities | 14,973 | 13,247 | |
Subordinated loan capital | 198,014 | 488,882 | |
Hybrid core capital | 214,472 | 208,117 | |
18 | Total subordinated debt | 412,486 | 696,999 |
19 | Share capital | 25,200 | 25,200 |
Reserve for net revaluation under the intrinsic value method | 187 | 176 | |
Proposed dividend etc. | 66,020 | 60,980 | |
Profit carried forward | 2,391,713 | 2,225,988 | |
Total shareholders’ equity | 2,483,120 | 2,312,344 | |
Total liabilities and equity | 17,549,023 | 18,247,204 | |
21 | Contingent liabilities etc. | ||
22 | Capital adequacy computation | ||
23 | Miscellaneous comments |
Statement of shareholders’ equity
2010 DKK 1,000 |
Share capital | Reserve for net revaluation under the intrinsic value method |
Proposed dividend etc. |
Profit carried forward |
Total share-holders’ equity |
Shareholders’ equity at the end of the previous financial year |
25,200 | 162 | 0 | 2,030,411 | 2,055,773 |
Dividend etc. paid | 0 | ||||
Dividend received on own shares | 0 | ||||
Shareholders’ equity after allocation of dividend etc. | 25,200 | 162 | 0 | 2,030,411 | 2,055,773 |
Purchase and sale of own shares | -3,595 | -3,595 | |||
Other shareholders’ equity items | 3,293 | 3,293 | |||
Profit for the financial year | 14 | 60,980 | 195,879 | 256,873 | |
Shareholders’ equity on the balance sheet date | 25,200 | 176 | 60,980 | 2,225,988 | 2,312,344 |
2011 DKK 1,000 |
Share capital | Reserve for net revaluation under the intrinsic value method |
Proposed dividend etc. |
Profit carried forward |
Total share-holders’ equity |
Shareholders’ equity at the end of the previous financial year |
25,200 | 176 | 60,980 | 2,225,988 | 2,312,344 |
Dividend etc. paid | -60,980 | -60,980 | |||
Dividend received on own shares | 168 | 168 | |||
Shareholders’ equity after allocation of dividend etc. | 25,200 | 176 | 0 | 2,226,156 | 2,251,532 |
Purchase and sale of own shares | -58.391 | -58,391 | |||
Other shareholders’ equity items | 3,908 | 3,908 | |||
Profit for the financial year | 11 | 66,020 | 220,040 | 286,071 | |
Shareholders’ equity on the balance sheet date | 25,200 | 187 | 66,020 | 2,391,713 | 2,483,120 |
Notes
Note |
1.1 - 31.12 2011 DKK 1,000 |
1.1 - 31.12 2010 DKK 1,000 |
|
1 | Interest receivable | ||
Claims on credit institutions and central banks | 38,712 | 37,150 | |
Loans and other debtors | 775,891 | 748,211 | |
Loans - interest concerning the written-down part of loans | -35,740 | -29,221 | |
Bonds | 58,993 | 47,905 | |
Total derivatives financial instruments, | 20,069 | 31,080 | |
of which | |||
Currency contracts | 9,205 | 13,537 | |
Interest-rate contracts | 10,864 | 17,543 | |
Other interest receivable | 332 | 1,214 | |
Total interest receivable | 858,257 | 836,339 | |
2 | Interest payable | ||
Credit institutions and central banks | 44,311 | 45,468 | |
Deposits and other debts | 169,174 | 146,978 | |
Issued bonds | 12,887 | 21,252 | |
Subordinated debt | 18,605 | 28,049 | |
Other interest payable | 314 | 207 | |
Total interest payable | 245,291 | 241,954 | |
3 | Dividend from shares etc. | ||
Shares | 1,111 | 1,219 | |
Total dividend from shares etc. | 1,111 | 1,219 | |
4 | Gross income from fees and commissions | ||
Securities trading | 24,117 | 34,812 | |
Asset management | 53,997 | 56,624 | |
Payment handling | 19,679 | 19,170 | |
Loan fees | 7,817 | 9,985 | |
Guarantee commissions | 34,898 | 31,270 | |
Other fees and commissions | 17,795 | 18,528 | |
Total gross income from fees and commissions | 158,303 | 170,389 | |
Net income from fees and commissions | |||
Securities trading | 18,791 | 26,248 | |
Asset management | 49,887 | 52,068 | |
Payment handling | 17,618 | 16,816 | |
Loan fees | 6,052 | 7,728 | |
Guarantee commissions | 34,898 | 31,270 | |
Other fees and commissions | 6,745 | 10,263 | |
Total net income from fees and commissions | 133,991 | 144,393 | |
Foreign exchange income | 17,914 | 22,440 | |
Total net income from fees, commissions and foreign exchange income | 151,905 | 166,833 |
Notes
Note |
1.1 - 31.12 2011 DKK 1,000 |
1.1 - 31.12 2010 DKK 1,000 |
|
5 | Value adjustments | ||
Loans and other debtors at current value | 6,746 | 4,336 | |
Bonds | 2,619 | 34,044 | |
Shares etc. | -4,956 | 2,702 | |
Shares in sector companies etc. | 3,680 | 2,853 | |
Investment properties | -579 | 0 | |
Foreign exchange income | 17,914 | 22,440 | |
Total derivatives financial instruments, | -10,050 | -11,334 | |
of which | |||
Interest-rate contracts | -10,050 | -11,333 | |
Share contracts | 0 | -1 | |
Issued bonds | -744 | -965 | |
Other liabilities | 1,756 | -1,917 | |
Total value adjustments | 16,386 | 52,159 | |
6 | Staff and administration costs | ||
Salaries and payments to the board of managers, board of directors and shareholders’ committee | |||
Board of managers | 7,237 | 6,946 | |
Reversed provision for pensions | 0 | -919 | |
Board of directors | 1,049 | 828 | |
Shareholders’ committee | 336 | 331 | |
Total | 8,622 | 7,186 | |
Staff costs | |||
Salaries | 111,030 | 109,878 | |
Pensions | 11,522 | 11,320 | |
Social security expenses | 900 | 790 | |
Costs depending on number of staff | 14,719 | 11,962 | |
Total | 138,171 | 133,950 | |
Other administration costs | 97,275 | 95,238 | |
Total staff and administration costs | 244,068 | 236,374 | |
7 | Number of employees | ||
Average number of employees during the financial year converted into full-time employees | 252 | 254 | |
8 | Tax | ||
Tax calculated on the years profit | 93,159 | 83,055 | |
Adjustment of deferred tax | 860 | -1,159 | |
Adjustment of tax calculated for previous years | 109 | -453 | |
Total tax | 94,128 | 81,443 | |
Effective tax rate (percent): | |||
The current tax rate of the bank | 25.0 | 25.0 | |
Adjustment of tax for non-liable income and non-deductible costs |
-0.5 | -0.8 | |
Adjustment of tax calculated for previous years | 0.0 | -0.1 | |
Total effective tax rate | 24.5 | 24.1 |
Notes
Note |
End Dec. 2011 DKK 1,000 |
End Dec. 2010 DKK 1,000 | |
9 | Claims on credit institutions and central banks | ||
Claims at call | 17,910 | 303,528 | |
Up to and including 3 months | 661,989 | 1,429,844 | |
More than 3 months and up to and including 1 year | 43,543 | 660,000 | |
More than 1 year and up to and including 5 years | 590,876 | 261,335 | |
More than 5 years | 0 | 0 | |
Total claims on credit institutions and central banks | 1,314,318 | 2,654,707 | |
10 | Loans and other debtors at amortised cost price | ||
At call | 2,689,793 | 3,528,048 | |
Up to and including 3 months | 476,999 | 585,341 | |
More than 3 months and up to and including 1 year | 2,016,455 | 1,961,971 | |
More than 1 year and up to and including 5 years | 3,666,432 | 4,065,526 | |
More than 5 years | 3,896,881 | 3,010,330 | |
Total loans and other debtors at amortised cost price | 12,746,560 | 13,151,216 | |
11 | Write-downs on loans and other debtors and provisions for losses on guarantees | ||
Individual write-downs | |||
Cumulative individual write-downs on loans and other debtors at the end of the previous financial year | 532,441 | 424,517 | |
Write-downs/value adjustments during the year | 205,130 | 289,432 | |
Reverse entry - write-downs made in previous financial years | -110,870 | -120,381 | |
Booked losses covered by write-downs | -49,349 | -61,127 | |
Cumulative individual write-downs on loans and other debtors on the balance sheet date | 577,352 | 532,441 | |
Group write-downs | |||
Cumulative group write-downs on loans and other debtors at the end of the previous financial year | 31,211 | 41,132 | |
Write-downs/value adjustments during the period | 36,255 | 0 | |
Reverse entry - write-downs made in previous financial years | 0 | -9,921 | |
Cumulative group write-downs on loans and other debtors on the balance sheet date | 67,466 | 31,211 | |
Total cumulative write-downs on loans and other debtors on the balance sheet date | 644,818 | 563,652 | |
Provisions for losses on guarantees | |||
Cumulative individual provisions for losses on guarantees at the end of the previous financial year | 1,383 | 1,376 | |
Provisions/value adjustments during the period | 4,605 | 1,000 | |
Reverse entry - provisions made in previous financial years | -885 | -993 | |
Booked losses covered by write-downs | -65 | 0 | |
Cumulative individual provisions for losses on guarantees on the balance sheet date | 5,038 | 1,383 | |
Total cumulative write-downs on loans and other debtors and provisions for losses on guarantees on the balance sheet date | 649,856 | 565,035 |
Notes
Note |
End Dec. 2011 DKK 1,000 |
End Dec. 2010 DKK 1,000 | |
12 | Suspended calculation of interest | ||
Loans and other debtors with suspended calculation of interest on the balance sheet date |
61,419 | 66,237 | |
13 | Bonds at current value | ||
Listed on the stock exchange | 2,755,912 | 1,546,282 | |
Total bonds at current value | 2,755,912 | 1,546,282 | |
14 | Shares etc, | ||
Listed on NASDAQ OMX Copenhagen | 12,033 | 25,267 | |
Unlisted shares at current value | 1,460 | 1,490 | |
Sector shares at current value | 214,583 | 209,086 | |
Other holdings | 20,978 | 21,410 | |
Total shares etc. | 249,054 | 257,253 | |
15 | Debt to credit institutions and central banks | ||
Debt payable on demand | 210,686 | 520,010 | |
Up to and including 3 months | 26,619 | 27,169 | |
More than 3 months and up to and including 1 year | 150,127 | 184,789 | |
More than 1 year and up to and including 5 years | 583,111 | 1,570,313 | |
More than 5 years | 271,532 | 329,909 | |
Total debt to credit institutions and central banks | 1,242,075 | 2,632,190 | |
The bank has undrawn long-term committed revolving credit facilities equivalent to | 174,342 | 770,896 | |
16 | Deposits and other debts | ||
On demand | 6,372,268 | 5,755,406 | |
Deposits and other debts at notice: | |||
Up to and including 3 months | 2,166,283 | 2,058,207 | |
More than 3 months and up to and including 1 year | 1,175,194 | 832,457 | |
More than 1 year and up to and including 5 years | 1,561,041 | 1,600,801 | |
More than 5 years | 1,480,629 | 1,414,783 | |
Total deposits and other debts | 12,755,415 | 11,661,654 | |
Distributed as follows: | |||
On demand | 5,822,693 | 5,582,938 | |
At notice | 146,889 | 131,139 | |
Time deposits | 3,740,496 | 2,925,948 | |
Long term deposit agreements | 1,805,129 | 1,860,570 | |
Special types of deposits | 1,240,208 | 1,161,059 | |
12,755,415 | 11,661,654 |
Notes
Note |
End Dec, 2011 DKK 1,000 |
End Dec, 2010 DKK 1,000 | |
17 | Issued bonds at amortised cost price | ||
On demand | 0 | 0 | |
Up to and including 3 months | 2,955 | 0 | |
More than 3 months and up to and including 1 year | 0 | 0 | |
More than 1 year and up to and including 5 years | 336,003 | 337,617 | |
More than 5 years | 0 | 0 | |
Total issued bonds at amortised cost price | 338,958 | 337,617 | |
Distributed as follows: Issues in Danish kroner Nom, 220 million DKK |
220,000 | 220,000 | |
Issues in Norwegian kroner | |||
Nom, 100 million NOK | 95,880 | 95,340 | |
Regulation at amortised cost price and adjustment to current value of issues |
9,241 | 8,440 | |
Other issues | 13,837 | 13,837 | |
338,958 | 337,617 | ||
18 | Subordinated debt | ||
Subordinated loan capital: | |||
3.995% bond loan, nom, DKK 300 million, expiry 9.2.2014 (early redemption) |
0 | 300,000 | |
Floating rate loan, principal EUR 27 million, expiry 30.6.2021 |
200,723 | 201,269 | |
Hybrid core capital: | |||
4.795% bond loan, nom, DKK 200 million, indefinite term |
200,000 | 200,000 | |
Regulation at amortised cost price and adjustment to current value of subordinated loan capital and hybrid core capital | 11,763 | 5,424 | |
Own holding of subordinated loan capital | 0 | -9,694 | |
Total subordinated debt | 412,486 | 696,999 | |
19 | Share capital | ||
Number of shares at DKK 5 each: | |||
Beginning of period | 5,040,000 | 5,040,000 | |
End of period | 5,040,000 | 5,040,000 | |
Reserved for subsequent cancellation | 100,000 | 0 | |
Total share capital | 25,200 | 25,200 | |
20 | Own capital shares | ||
Own capital shares included in the balance sheet at | 0 | 0 | |
The market value is | 58,395 | 6,900 | |
Number of own shares: | |||
Beginning of year | 9,517 | 8,572 | |
Net purchases and sales of own shares during the year | 91,338 | 945 | |
End of year | 100,855 | 9,517 | |
Nominal value of holding of own shares, end of year | 504 | 48 | |
Own shares’ proportion of share capital, end of year (%) | 2.0 | 0.2 |
Notes
Note |
End Dec, 2011 DKK 1,000 |
End Dec, 2010 DKK 1,000 | |
21 | Contingent liabilities etc, | ||
Contingent liabilities | |||
Finance guarantees | 653,353 | 668,504 | |
Guarantees for foreign loans | 5,576 | 8,602 | |
Guarantees against losses on mortgage credit loans | 50,138 | 44,098 | |
Guarantees against losses Totalkredit | 118,540 | 112,585 | |
Registration and conversion guarantees | 55,361 | 82,614 | |
Sector guarantees | 39,413 | 37,290 | |
Other contingent liabilities | 129,841 | 88,290 | |
Total contingent liabilities | 1,052,222 | 1,041,983 | |
First mortgage loans were provided for German wind turbine projects. The loans are funded directly by KfW Bankengruppe, to which security in the associated loans has been provided. Each reduction of the first mortgage loans is deducted directly from the funding at the KfW Bankengruppe. | 808,363 | 824,888 | |
As security for clearing and any debt, the bank has pledged bonds from its total holding to the Central Bank of Denmark to a total market price of | 269,005 | 468,198 | |
22 | Capital adequacy computation | ||
Computed pursuant to the Executive order on Capital Adequacy issued by the Danish Financial Supervisory Authority. | |||
Weighted items with credit and counterpart risks | 11,041,407 | 11,110,261 | |
Market risk | 750,457 | 714,897 | |
Operational risk | 1,396,138 | 1,322,788 | |
Total risk weighted items | 13,188,002 | 13,147,946 | |
Share capital | 25,200 | 25,200 | |
Reserve for net revaluation under the intrinsic value method | 187 | 176 | |
Profit carried forward | 2,457,733 | 2,286,968 | |
Core capital | 2,483,120 | 2,312,344 | |
Proposed dividend etc. | -66,020 | -60,980 | |
Deduction from / addition to the core capital | -187 | -176 | |
Core capital after deductions | 2,416,913 | 2,251,188 | |
Hybrid core capital | 200,000 | 200,000 | |
Core capital after deductions incl. hybrid core capital | 2,616,913 | 2,451,188 | |
Subordinated loan capital | 200,723 | 491,575 | |
Deduction from / addition to the capital base | 187 | 176 | |
Capital base after deductions | 2,817,823 | 2,942,939 | |
Core capital ratio excl. hybrid core capital (per cent) | 18.3 | 17.1 | |
Core capital ratio (per cent) | 19.8 | 18.6 | |
Solvency ratio (per cent) | 21.4 | 22.4 | |
Capital base requirements under Section 124 (2,1) of the Danish Financial Business Act | 1,055,040 | 1,051,836 | |
Notes
Note |
|
23 |
Miscellaneous comments on: Main and key figures for the bank and key figures per DKK 5 share - page 7 · Total capital base is computed as the banks capital base after deduction, cf. note 22. · Return on equity at the beginning of the year before and after tax are computed after allocation of dividend etc., net. · Key figures per DKK 5 share are calculated on the basis of respectively 2011: 4,940,000 shares, 2007-2010: 5,040,000 shares. Core earnings - pages 1 and 3
Write-downs - pages 1 and 2
|
Danish Financial Supervisory Authority key figures
for Danish banks
2011 | 2010 | 2009 | 2008 | 2007 | ||
Solvency ratio | % | 21.4 | 22.4 | 20.2 | 16.3 | 13.0 |
Core capital ratio | % | 19.8 | 18.6 | 16.6 | 13.0 | 11.2 |
Pre-tax return on equity | % | 15.9 | 15.5 | 15.9 | 17.9 | 26.1 |
Return on equity after tax | % | 11.9 | 11.8 | 12.1 | 13.5 | 20.0 |
Income/cost ratio | DKK | 1.98 | 1.74 | 1.61 | 1.93 | 3.04 |
Interest rate risk | % | 0.7 | 0.1 | 0.6 | 1.2 | 1.0 |
Foreign exchange position | % | 0.9 | 0.5 | 3.4 | 5.6 | 2.1 |
Foreign exchange risk | % | 0.0 | 0.0 | 0.1 | 0.0 | 0.0 |
Excess cover relative to statutory liquidity requirements |
% | 140.5 | 231.8 | 205.6 | 139.1 | 161.4 |
Loans and write-downs thereon relative to Deposits |
% | 105.0 | 117.6 | 120.8 | 157.1 | 157.4 |
Loans relative to shareholders’ equity | 5.1 | 5.7 | 6.3 | 7.8 | 7.9 | |
Growth in loans for the year | % | -3.1 | 0.8 | -6.1 | -1.7 | 10.8 |
Total large exposures | % | 41.7 | 10.2 | 0.0 | 12.1 | 38.3 |
Cumulative write-down percentage | % | 4.5 | 3.8 | 3.1 | 2.1 | 1.5 |
Write-down percentage for the year | % | 0.89 | 0.94 | 1.16 | 0.48 | -0.06 |
Proportion of debtors at reduced interest | % | 0.4 | 0.4 | 0.4 | 0.1 | 0.1 |
Result for the year after tax per share * / *** | DKK | 1,146.6 | 1,019.3 | 921.0 | 933.8 | 1,324.4 |
Book value per share * / ** | DKK | 10,055 | 9,193 | 8,172 | 7,382 | 7,053 |
Dividend per share * | DKK | 262 | 240 | 0 | 0 | 600 |
Price/result for the year per share * / *** | 10.1 | 14.3 | 13.2 | 6.6 | 13.0 | |
Price/book value per share * / ** | 1.15 | 1.58 | 1.49 | 0.84 | 2.43 | |
* Calculated on the basis of a denomination of DKK 100 per share. ** Calculated on the basis of number of shares outstanding at the end of the year. *** Calculated on the basis of the average number of shares. |