• Core income for the first six months amounted to DKK 1,597 million, up 12% on H1 2013 - the growth being driven by market-value adjustments regarding the sale of the Nets sharehold-ing and sustained growth in net income from fees, charges and commissions, while there was pressure on net interest income in Q1, in particular.
• Costs & expenses ended at DKK 890 million, which is 4% up on H1 2013 and in line with expect-ations - thus, the cost/income ratio improved to 0.56.
• Core earnings before impairment amounted to DKK 707 million - 24% up on H1 2013.
• Impairment of loans and advances, etc. shrank by 17% (YOY), amounting to DKK 169 million, equal to an impairment ratio, excl. mortgage credit lending, of 0.78% p.a.
• The negative lending trend was reversed, with bank lending at end-H1 bouncing back to its end-2013 level - before consolidation of the portfolio acquired from FIH Erhvervsbank.
• The Group is in a comfortable capital and liquidity situation, with a Common Equity (Tier 1) ratio of 14.2%, an excess coverage relative to the solvency need ratio of 7.2 percentage points (DKK 3.2 billion), and strategic liquidity of DKK 17.6 billion.
• In light of developments in H1, Spar Nord Bank maintains its full-year forecast for core earnings before impairment of about DKK 1.1 billion, to which should be added DKK 175 million regarding the divestment of the Bank’s Nets shareholding.
Q2: Healthy growth in lending and net interest income
• Net interest income increased 5% on Q1, amounting to DKK 416 million - driven by growth in bank lending of DKK 700 million and redemption of hybrid core capital at the end of May.
• Net income from fees, charges and commissions in the amount of DKK 195 million was retained at a highly satisfactory level - for one thing because of a sustained high activity level in the asset and investment management area.
• A quarter characterized by strategic initiatives: the redemption of governmental hybrid core capital, divestment of Swedish leasing activities and acquisition of customer portfolios from Basisbank and FIH Erhvervsbank.
