Core income for Q1 ended at DKK 883 million, up 18% on Q1 2013, with price gains on the sale of our Nets shareholding accounting for DKK 178 million.
• Net interest income dropped by 12% (YOY) on account of a lower volume and a downturn in interest income on the Bank’s bond portfolio - the decline is partly offset by market-value adjustments of the same portfolio.
• The positive trend of recent quarters continued for fees, charges and commissions, reflected in a 5% growth on the same period of 2013; the activity level was particularly high for asset management and portfolio management.
• Market-value adjustments and dividends were extraordinarily high due to the sale of Nets, viz. DKK 250 million – and market-value adjustments relating to the Bank’s bond portfolio were better than expected.
• Costs and expenses ended at DKK 439 million – up 3% on Q1 2013, which is in line with forecasts.
• Accordingly, core earnings before impairment amounted to DKK 444 million.
• Impairment of loans and advances fell to DKK 90 million – corresponding to an impairment ratio of 0.86% p.a.
• Sustained strong capital and liquidity position with a Common Equity (Tier 1) ratio of 14.0%, an overall solvency ratio of 19.4% and a strategic liquidity of DKK 18.0 billion.
• After the end of Q1, an agreement was made with Basisbank regarding the takeover of a portfolio of residential and cooperative housing loans.
• In connection with the sale of Nets, the forecast for the full-year core earnings before impairment – estimated at about DKK 1,100 million at the beginning of the year – was revised upwards by DKK 175 million. This level is maintained in light of the profits recorded in Q1.
