Spar Nord Bank - Annual Report 2013


DKK 670 MILLION IN PRE-TAX PROFITS AND A 10.7% RETURN ON EQUITY DRIVEN BY RESPECTABLE GROWTH IN INCOME, SHARP COST DISCIPLINE AND LOWER IMPAIRMENT LOSSES

• The Group’s core income ended at DKK 2,784 million, up 15% on 2012.

• Net interest income grew 14%, and net income from fees, charges and commissions increased 29%, driven by the wider business volume resulting from the merger with Sparbank in November 2012 and a higher activity level in the asset and pension area.

• Market-value adjustments and dividends ended at DKK 201 million, 17% down on 2012 but substantially above expectations at the beginning of the year.

• Total costs ended at DKK 1,646 million, equal to a 10% increase, which is less than expected after the merger with Sparbank.

• Accordingly, core earnings before impairment amounted to DKK 1,137 million, which is 22% up on 2012 and should be viewed in relation to the announced forecast of DKK 1,000-1,100 million.

• Loan impairments dropped to DKK 409 million, thus ending at the forecast level of 0.95% of total loans, advances and guarantees. Relative to 2012, the DKK 184 million reduction is highly satisfactory in light of the major ordinary inspection of the Bank conducted by the Danish Financial Supervisory Authority in Q2 2013.

• Despite yet another year with impressive customer inflow and growth in market share, bank lending was still under significant pressure in 2013, dropping over the year by DKK 1.1 billion. Bank deposits and deposits in pooled schemes grew 4%.

• Consolidation for the year and developments in business volume mean that both the capital and liquidity situations are excellently cushioned with a Common Equity (Tier 1) ratio of 14.1%, a total solvency ratio of 19.4% and strategic liquidity of DKK 17.3 billion.

• In light of the solid capital position, the Board of Directors recommends to the shareholders at the Annual General Meeting that a dividend of DKK 1 be paid per share, equal to a dividend payout ratio of 23%.

• For 2014, core earnings before impairment are expected to hover around the DKK 1.1 billion level, and the impairment ratio is expected to be slightly lower than in 2013.


Attachments

Nr. 2 - Annual Report 2013.pdf