(Million DKK) | 1st qtr. 2015 | 1st qtr. 2014 | 2014 | 2013 | 2012 | 2011 |
Total core income | 238 | 234 | 907 | 844 | 823 | 767 |
Total costs and depreciations | -70 | -67 | -298 | -273 | -265 | -248 |
Core earnings before impairments | 168 | 167 | 609 | 571 | 558 | 519 |
Impairment charges for loans etc. | -15 | -15 | -87 | -120 | -157 | -129 |
Core earnings | 153 | 152 | 522 | 451 | 401 | 390 |
Result for portfolio | +23 | +24 | +65 | +23 | +49 | +1 |
Expenses for bank packages | 0 | 0 | 0 | -2 | -2 | -11 |
Profit before tax | 176 | 176 | 587 | 472 | 448 | 380 |
The quarter – highlights:
- The profit before tax was DKK 176 million, equivalent to a return of 24% p.a. on equity at the beginning of the year
- The bank’s core earnings were DKK 153 million, which is above budget for the quarter
- 10% increase in the bank’s loans and 12% increase in deposits
- Keen competition in the sector
- Continued good increase in customers in both the branch network and the niche concepts
- Highly satisfactory increase in customer numbers and development in the Private Banking branches in Holte, Aarhus, Herning and Ringkøbing
Please do not hesitate to contact the bank’s management if you have any questions.
Yours sincerely, |
Ringkjøbing Landbobank |
John Fisker |
Management report
Core income
Net interest income was DKK 161 million in the first quarter of 2015 against DKK 158 million in 2014, an increase of 2%. This should be compared to a 10% increase in lending, which reflects the competition in the sector. Interest income was also affected by the falling interest rate level which will show a further impact in the second quarter of 2015.
Fees, commissions and foreign exchange income amounted to net DKK 66 million in the first quarter of 2015 against net DKK 59 million in 2014, an increase of 11%. The reason for the increase is record-breaking remortgaging activity which has continued into 2015.
The total core income in the first quarter of the year increased from DKK 234 million in 2014 to DKK 238 million in 2015. The increase should be viewed in the context of the fact that the total core income was affected positively by an extraordinary once-only income of the order of DKK 10 million in the first quarter of 2014 in connection with the sale of the bank’s shares in Nets.
Costs and depreciations
Total costs including depreciations for tangible assets in the first quarter of 2015 amounted to DKK 70 million against DKK 67 million last year, an increase of 4%, which is thus in keeping with the budget for the quarter.
The rate of costs was computed at 29.5, still the lowest in the country. A low rate of costs is especially important in periods with keen competition and unstable economic conditions as this provides a high level of robustness in the bank’s results.
Impairment charges for loans
Impairment charges for loans of DKK 15 million for the quarter remain unchanged relative to 2014 and are now equivalent to 0.3% p.a. of the total average loans, impairment charges, guarantees and provisions against 0.4% p.a. in the first quarter of 2014.
The bank’s total account for impairment charges and provisions amounted to DKK 947 million at the end of the quarter, equivalent to 5.0% of total loans and guarantees. Actual losses and write-offs on loans etc. continue to be very low, and they were exceeded during the quarter by the items “Interest on the impaired part of loans” and “Receivables previously written off”, such that the total account for impairment charges and provisions increased by net DKK 16 million during the first quarter of the year.
The portfolio of loans with suspended calculation of interest amounts to DKK 58 million, equivalent to 0.3% of the bank’s total loans and guarantees at the end of the quarter.
As a result of the expectations for a slight economic improvement, total impairment charges in 2015 are expected to show a falling trend relative to 2014.
Core earnings
(Million DKK) | 1st qtr. 2015 | 1st qtr. 2014 | 2014 | 2013 | 2012 | 2011 |
Total core income | 238 | 234 | 907 | 844 | 823 | 767 |
Total costs and depreciations | -70 | -67 | -298 | -273 | -265 | -248 |
Core earnings before impairments | 168 | 167 | 609 | 571 | 558 | 519 |
Impairment charges for loans etc. | -15 | -15 | -87 | -120 | -157 | -129 |
Core earnings | 153 | 152 | 522 | 451 | 401 | 390 |
Core earnings were DKK 153 million against last year’s DKK 152 million. The realised earnings are above budget for the quarter.
Result for portfolio and market risk
The portfolio income for the first quarter of 2015 was positive by DKK 23 million including funding costs for the portfolio.
The bank’s holding of shares etc. at the end of the quarter amounted to DKK 301 million, DKK 52 million of which was in listed shares etc., while DKK 249 million was in sector shares etc. The bond portfolio amounted to DKK 3,581 million, and the majority of the portfolio consists of AAA-rated Danish mortgage credit bonds and short-term bank bonds issued by rated counterparties.
The total interest rate risk, computed as the impact on the profit of a one percentage point change in the interest level, was 2.4% of the bank’s Tier 1 capital after deduction at the end of the quarter.
The bank’s total market risk within exposures to interest rate risk, listed shares and foreign currency 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) in the first quarter of 2015was as follows:
Risk in DKK million |
Risk relative to equity end of 1st quarter 2015 in % |
|
Highest risk of loss: | 23.3 | 0.76% |
Lowest risk of loss: | 5.2 | 0.17% |
Average risk of loss: | 14.6 | 0.47% |
The bank’s policy remains to keep the market risk at a low level.
Profit after tax
The profit after tax was DKK 137 million for the first quarter of 2015 against DKK 136 million last year.
The profit after tax is equivalent to a return on equity at the beginning of the year of 18% p.a. after payment of dividend.
Balance sheet
The bank’s balance sheet at the end of the quarter stood at DKK 21,098 million against last year’s DKK 19,713 million.
Deposits increased by 12% from DKK 13,775 million at the end of March 2014 to DKK 15,430 million at the end of March 2015.
The bank’s loans increased by 10% from DKK 13,961 million at the end of March 2014 to DKK 15,378 million at the end of March 2015. The loans figure for 2015 includes reverse transactions to a total of DKK 629 million, and the increase in the bank’s loans excluding these transactions was 6% relative to the end of March 2014.
The growth in the bank’s loans is broadly based on sectors with good underlying growth in new customers from both the branch network and the bank’s niche concepts.
The bank’s portfolio of guarantees at the end of the quarter was DKK 2,660 million against DKK 1,896 million at the end of March 2014 and DKK 2,218 million at the end of 2014. The portfolio of guarantees was thus still extraordinarily high as a result of a high level of activity within conversions.
Liquidity
The bank’s liquidity is good, and the excess liquidity relative to the statutory requirement for liquidity is 147%. The bank’s short-term funding with term to maturity of less than 12 months amounts to DKK 1.1 billion, balanced by DKK 4.7 billion in short-term money market placings, primarily in Danish banks and liquid securities. The bank is thus not dependent on the short-term money market.
The bank’s deposits excluding repo transactions were DKK 536 million greater than loans at the end of the quarter excluding reverse transactions, and the bank’s loans portfolio is more than fully financed by deposits and the bank’s equity. In addition, a part of the loans portfolio for wind turbines in Germany is refinanced back-to-back with KfW Bankengruppe, and the DKK 1,045 million concerned 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.
New liquidity regulations will come into force with effect from 1 October 2015, viz. the so-called LCR (Liquidity Coverage Ratio) key figure. The key figure will show the ability of banks to honour their payment obligations for a 30-day period without access to market funds, and the key figure will subsequently replace the current Section 152 liquidity key figure. The key figure is computed as the proportion of the bank’s cash and cash equivalents / liquid assets to its payment obligations for the next 30 days as computed in accordance with specific rules.
Non SIFI banks must have a cover of minimum 60% on 1 October 2015, gradually increasing by 10% on 1 January 2016 and 1 January 2017 and by 20% on 1 January 2018 such that the key figure must be minimum 100% on 1 January 2018. SIFI banks must have a cover of 100% as early as 1 October 2015.
Ringkjøbing Landbobank wishes to follow the rules applying to SIFI banks and it is thus the bank’s target that the LCR key figure should be 100% on 1 October 2015.
On 31 March 2015 the bank’s LCR key figure was 159% and the bank thus already met the target at the end of the quarter.
Share buy-back programme
It was decided at the annual general meeting in February 2015 to cancel 110,000 own shares, and the capital reduction is expected to be finalised within the next month.
The general meeting also authorised the bank to buy shares for up to DKK 145 million for cancellation at a future general meeting.
Under the new buy-back programme shares had been bought at a total acquisition price of DKK 37.9 million on 21 April 2015, equivalent to a total of 30,000 own shares.
The bank’s holding of own shares at the end of March 2015 totalled 142,351 shares, 110,000 of which are reserved for the approved capital reduction, while 30,000 shares are reserved under the new buy-back programme for later cancellation.
Capital
The equity at the beginning of 2015 was DKK 3,099 million. To this must be added the profit for the period, while the dividend paid and the value of the own shares bought must be subtracted, after which the equity at the end of the quarter was DKK 3,078 million.
The bank’s total capital ratio was computed at 16.4% at the end of the first quarter of 2015, and the Tier 1 capital ratio was computed at 16.4%.
Capital ratios |
1st qtr. 2015 | 1st qtr. 2014 | 2014 | 2013 | 2012 | 2011 |
Common Equity Tier 1 capital ratio (excl. additional Tier 1 capital) (%) |
16.4 | 18.1 | 17.5 | 18.7 | 19.6 | 18.3 |
Tier 1 capital ratio (%) | 16.4 | 18.1 | 17.5 | 19.2 | 20.9 | 19.8 |
Total capital ratio (%) | 16.4 | 18.1 | 17.5 | 20.0 | 22.4 | 21.4 |
Individual solvency requirement (%) | 8.9 | 8.8 | 8.9 | 8.9 | 8.0 | 8.0 |
In the first quarter of 2015, the bank redeemed the hybrid core capital of nom. DKK 200 million issued in 2005, and the capital adequacy computation was also influenced by the fact that DKK 145 million of the new share buy-back programme was deducted from the capital.
The bank calculates the individual solvency requirement on the basis of the so-called 8+ model. The calculation method is based on 8% plus any supplements calculated inter alia for customers with financial problems. The 8+ model thus takes no account of the bank’s earnings and cost base or its robust business model. Despite this, the bank’s individual solvency requirement at the end of the quarter was calculated at 8.9% - unchanged relative to the end of 2014.
Good increase in customer numbers
The bank carried out a large number of outreach initiatives towards both existing and new customers in 2014, including opening of a Private Banking branch in Aarhus on 1 April 2014 and upgrading of the bank’s Private Banking branch in Holte. Other outreach initiatives were also carried out regarding the other niche products and the branch network in central and western Jutland.
The outreach initiatives continue in 2015, and a positive increase in customer numbers in the branch network and within the niche concepts is still being registered.
In addition, the bank’s Private Banking branches in Holte, Aarhus, Herning and Ringkøbing all saw a very positive development and increases in customers in 2015. The bank continue to see major opportunities in this segment, and will continue to focus on Private Banking and to provide highly competent and dedicated staff for serving the segment. The bank wishes to focus on serving its existing customer portfolio, but also to attract new Private Banking customers.
Accounting policies and key figures
The accounting policies are unchanged relative to those in the submitted and audited 2014 annual report.
Expected result in 2015
The bank’s core earnings for the first quarter of 2015 were DKK 153 million, which is above budget for the quarter. Expectations for core earnings for 2015 remain in the range DKK 450 - 525 million.
Main and key figures
1st qtr. 2015 |
1st qtr. 2014 |
Full year 2014 |
|
Main figures for the bank (million DKK) | |||
Total core income | 238 | 234 | 907 |
Total costs and depreciations | -70 | -67 | -298 |
Core earnings before impairments | 168 | 167 | 609 |
Impairment charges for loans etc. | -15 | -15 | -87 |
Core earnings | 153 | 152 | 522 |
Result for portfolio | +23 | +24 | +65 |
Expenses for bank packages | 0 | 0 | 0 |
Profit before tax | 176 | 176 | 587 |
Profit after tax | 137 | 136 | 446 |
Shareholders’ equity | 3,078 | 2,891 | 3,099 |
Deposits | 15,430 | 13,775 | 15,450 |
Loans | 15,378 | 13,961 | 15,507 |
Balance sheet total | 21,098 | 19,713 | 21,238 |
Guarantees | 2,660 | 1,896 | 2,218 |
Key figures for the bank (per cent) | |||
Return on equity before tax, beginning of year, p.a. | 23.7 | 25.3 | 21.1 |
Return on equity after tax, beginning of year, p.a. | 18.4 | 19.6 | 16.0 |
Rate of costs | 29.5 | 28.7 | 32.8 |
Common Equity Tier 1 capital ratio | 16.4 | 18.1 | 17.5 |
Tier 1 capital ratio | 16.4 | 18.1 | 17.5 |
Total capital ratio | 16.4 | 18.1 | 17.5 |
Individual solvency requirement | 8.9 | 8.8 | 8.9 |
Key figures per 5 DKK share (DKK) | |||
Core earnings | 33 | 32 | 112 |
Profit before tax | 38 | 37 | 126 |
Profit after tax | 29 | 28 | 95 |
Net asset value | 659 | 605 | 664 |
Price, end of period | 1,333 | 1,180 | 1,152 |
Dividend | - | - | 26 |
Profit and loss account
Note |
1.1-31.3 2015 DKK 1,000 |
1.1-31.3 2014 DKK 1,000 |
1.1-31.12 2014 DKK 1,000 |
|
1 | Interest receivable | 196,803 | 197,171 | 787,924 |
2 | Interest payable | 29,181 | 36,579 | 139,253 |
Net income from interest | 167,622 | 160,592 | 648,671 | |
3 | Dividend on capital shares etc. | 298 | 830 | 7,897 |
4 | Income from fees and commissions | 71,221 | 64,123 | 261,082 |
4 | Fees and commissions paid | 8,610 | 8,065 | 31,701 |
Net income from interest and fees | 230,531 | 217,480 | 885,949 | |
5 | Value adjustments | +29,404 | +39,334 | +82,293 |
Other operating income | 819 | 1,052 | 4,001 | |
6,7 | Staff and administration costs | 64,893 | 62,209 | 270,532 |
Amortisations, depreciations and write-downs on intangible and tangible assets |
1,224 | 1,470 | 12,192 | |
Other operating costs | ||||
Miscellaneous other operating costs | 0 | 27 | 268 | |
Costs Deposit Guarantee Fund | 4,072 | 3,611 | 15,041 | |
8 | Impairment charges for loans and other debtors etc. | -14,226 | -14,759 | -87,186 |
Result of capital shares in associated companies | 0 | 0 | -11 | |
Profit before tax | 176,339 | 175,790 | 587,013 | |
9 | Tax | 39,350 | 39,750 | 141,152 |
Profit after tax | 136,989 | 136,040 | 445,861 | |
Other comprehensive income | 0 | 0 | 0 | |
Total comprehensive income | 136,989 | 136,040 | 445,861 |
Core earnings
1.1-31.3 2015 DKK 1,000 |
1.1-31.3 2014 DKK 1,000 |
1.1-31.12 2014 DKK 1,000 |
||
Net income from interest | 161,150 | 158,443 | 634,681 | |
Net income from fees and provisions excl. commission | 50,885 | 45,068 | 192,941 | |
Income from sector shares | 10,292 | 15,836 | 25,576 | |
Foreign exchange income | 2,984 | 3,079 | 13,489 | |
Other operating income | 819 | 1,052 | 4,001 | |
Total core income excl. trade income | 226,130 | 223,478 | 870,688 | |
Trade income | 11,726 | 10,990 | 36,440 | |
Total core income | 237,856 | 234,468 | 907,128 | |
Staff and administration costs | 64,893 | 62,209 | 270,532 | |
Amortisations, depreciations and write-downs on intangible and tangible assets |
1,224 | 1,470 | 12,192 | |
Other operating costs | 4,072 | 3,522 | 15,177 | |
Total costs etc. | 70,189 | 67,201 | 297,901 | |
Core earnings before impairments | 167,667 | 167,267 | 609,227 | |
Impairment charges for loans and other debtors etc. | -14,226 | -14,759 | -87,186 | |
Core earnings | 153,441 | 152,508 | 522,041 | |
Result for portfolio | +22,898 | +23,398 | +65,104 | |
Expenses for bank packages | 0 | 116 | 132 | |
Profit before tax | 176,339 | 175,790 | 587,013 | |
Tax | 39,350 | 39,750 | 141,152 | |
Profit after tax | 136,989 | 136,040 | 445,861 |
Balance sheet
Note |
End March 2015 DKK 1,000 |
End March 2014 DKK 1,000 |
End Dec. 2014 DKK 1,000 |
|
Assets | ||||
Cash in hand and claims at call on central banks | 881,378 | 264,989 | 190,873 | |
10 | Claims on credit institutions and central banks | 297,259 | 316,064 | 180,490 |
Claims at notice on central banks | 65,001 | 0 | 0 | |
Money market operations and bilateral loans - term to maturity under 1 year |
112,258 | 113,183 | 60,490 | |
Bilateral loans - term to maturity over 1 year | 120,000 | 202,881 | 120,000 | |
11,12,13 | Loans and other debtors at amortised cost price | 15,377,844 | 13,961,252 | 15,507,134 |
Loans and other debtors at amortised cost price | 13,703,679 | 12,822,547 | 13,842,752 | |
Wind turbine loans with direct funding | 1,045,299 | 1,138,705 | 1,081,240 | |
Reverse transactions | 628,866 | 0 | 583,142 | |
14 | Bonds at current value | 3,580,585 | 4,582,261 | 4,659,495 |
15 | Shares etc. | 300,754 | 229,657 | 283,047 |
Capital shares in associated companies | 530 | 540 | 530 | |
Land and buildings total | 66,231 | 73,318 | 66,401 | |
Investment properties | 6,056 | 8,015 | 6,056 | |
Domicile properties | 60,175 | 65,303 | 60,345 | |
Other tangible assets | 4,064 | 4,593 | 4,666 | |
Actual tax assets | 250,527 | 8,796 | 87,779 | |
Temporary assets | 450 | 1,000 | 997 | |
Other assets | 332,147 | 264,297 | 248,863 | |
Periodic-defined items | 6,177 | 5,878 | 7,633 | |
Total assets | 21,097,946 | 19,712,645 | 21,237,908 |
Balance sheet
Note |
End March 2015 DKK 1,000 |
End March 2014 DKK 1,000 |
End Dec. 2014 DKK 1,000 |
|
Liabilities and equity | ||||
16 | Debt to credit institutions and central banks | 1,929,171 | 2,244,738 | 1,911,215 |
Money market operations and bilateral credits - term to maturity under 1 year |
751,152 | 937,482 | 697,712 | |
Bilateral credits - term to maturity over 1 year | 132,720 | 168,551 | 132,263 | |
Bilateral credits from KfW Bankengruppe | 1,045,299 | 1,138,705 | 1,081,240 | |
17 | Deposits and other debts | 15,429,582 | 13,774,721 | 15,450,273 |
Deposits and other debts | 15,285,279 | 13,774,721 | 15,450,273 | |
Repo transactions | 144,303 | 0 | 0 | |
18 | Issued bonds at amortised cost price | 236,552 | 246,895 | 236,238 |
Other liabilities | 201,100 | 167,456 | 156,231 | |
Periodic-defined items | 1,131 | 164 | 1,205 | |
Total debt | 17,797,536 | 16,433,974 | 17,755,162 | |
Provisions for deferred tax | 14,476 | 13,188 | 14,476 | |
12 | Provisions for losses on guarantees | 7,340 | 4,543 | 3,995 |
Total provisions for liabilities | 21,816 | 17,731 | 18,471 | |
Subordinated loan capital | 200,620 | 201,579 | 200,216 | |
Hybrid core capital | 0 | 168,214 | 165,451 | |
19 | Total subordinated debt | 200,620 | 369,793 | 365,667 |
20 | Share capital | 23,900 | 24,200 | 23,900 |
Reserve for net revaluation under the intrinsic value method | 178 | 189 | 178 | |
Profit carried forward | 3,053,896 | 2,866,758 | 2,949,750 | |
Proposed dividend etc. | - | - | 124,780 | |
Total shareholders’ equity | 3,077,974 | 2,891,147 | 3,098,608 | |
Total liabilities and equity | 21,097,946 | 19,712,645 | 21,237,908 | |
21 | Own capital share | |||
22 | Contingent liabilities etc. | |||
23 | Assets furnished as security | |||
24 | Capital adequacy computation | |||
25 | The supervisory diamond | |||
26 | Miscellaneous comments |
Statement of shareholders’ equity
DKK 1,000 |
Share capital |
Reserve for net revaluation under the intrinsic value method | Profit carried forward |
Proposed dividend etc. |
Total share-holders’ equity |
On 31 March 2015: Shareholders’ equity at the end of the previous financial year |
23,900 | 178 | 2,949,750 | 124,780 | 3,098,608 |
Dividend etc. paid | -124,780 | -124,780 | |||
Dividend received on own shares | 3,385 | 3,385 | |||
Shareholders’ equity after allocation of dividend etc. | 23,900 | 178 | 2,953,135 | 0 | 2,977,213 |
Purchase and sale of own shares | -36,229 | -36,229 | |||
Total comprehensive income | 136,990 | 136,990 | |||
Shareholders’ equity on the balance sheet date | 23,900 | 178 | 3,053,896 | 0 | 3,077,974 |
On 31 March 2014: Shareholders’ equity at the end of the previous financial year |
24,200 | 189 | 2,755,211 | 121,500 | 2,901,100 |
Dividend etc. paid | -121,500 | -121,500 | |||
Dividend received on own shares | 2,022 | 2,022 | |||
Shareholders’ equity after allocation of dividend etc. | 24,200 | 189 | 2,757,233 | 0 | 2,781,622 |
Purchase and sale of own shares | -26,515 | -26,515 | |||
Total comprehensive income | 136,040 | 136,040 | |||
Shareholders’ equity on the balance sheet date | 24,200 | 189 | 2,866,758 | 0 | 2,891,147 |
On 31 December 2014: Shareholders’ equity at the end of the previous financial year |
24,200 | 189 | 2,755,211 | 121,500 | 2,901,100 |
Reduction of share capital | -300 | 300 | 0 | ||
Dividend etc. paid | -121,500 | -121,500 | |||
Dividend received on own shares | 2,022 | 2,022 | |||
Shareholders’ equity after allocation of dividend etc. | 23,900 | 189 | 2,757,533 | 0 | 2,781,622 |
Purchase and sale of own shares | -128,875 | -128,875 | |||
Total comprehensive income | -11 | 321,092 | 124,780 | 445,861 | |
Shareholders’ equity on the balance sheet date | 23,900 | 178 | 2,949,750 | 124,780 | 3,098,608 |
Notes
Note |
1.1-31.3 2015 DKK 1,000 |
1.1-31.3 2014 DKK 1,000 |
1.1-31.12 2014 DKK 1,000 |
|
1 | Interest receivable | |||
Claims on credit institutions and central banks | 2,808 | 5,762 | 16,750 | |
Loans and other debtors | 179,929 | 184,645 | 740,222 | |
Loans - interest concerning the impaired part of loans | -10,242 | -10,954 | -44,221 | |
Reverse loans | 4,444 | 0 | -3,457 | |
Bonds | 18,664 | 21,765 | 90,054 | |
Total derivatives financial instruments, of which | 1,001 | -4,292 | -12,550 | |
Currency contracts | 1,473 | 229 | 193 | |
Interest-rate contracts | -472 | -4,521 | -12,743 | |
Other interest receivable | 199 | 245 | 1,126 | |
Total interest receivable | 196,803 | 197,171 | 787,924 | |
2 | Interest payable | |||
Credit institutions and central banks | 6,396 | 6,628 | 26,425 | |
Deposits and other debts | 18,476 | 24,636 | 92,049 | |
Repo deposits | 65 | 0 | 0 | |
Issued bonds | 1,824 | 2,207 | 7,207 | |
Subordinated debt | 2,345 | 3,098 | 13,023 | |
Other interest payable | 75 | 10 | 549 | |
Total interest payable | 29,181 | 36,579 | 139,253 | |
3 | Dividend from shares etc. | |||
Shares | 298 | 830 | 7,897 | |
Total dividend from shares etc. | 298 | 830 | 7,897 | |
4 | Gross income from fees and commissions | |||
Securities trading and deposits | 14,603 | 13,630 | 45,378 | |
Asset management | 16,560 | 20,572 | 96,994 | |
Payment handling | 5,979 | 5,571 | 23,883 | |
Loan fees | 6,441 | 1,097 | 11,851 | |
Guarantee commissions | 12,924 | 12,954 | 51,891 | |
Other fees and commissions | 14,714 | 10,299 | 31,085 | |
Total gross income from fees and commissions | 71,221 | 64,123 | 261,082 | |
Net income from fees and commissions | ||||
Securities trading and deposits | 11,726 | 10,990 | 36,440 | |
Asset management | 14,986 | 19,092 | 91,443 | |
Payment handling | 5,190 | 5,014 | 20,849 | |
Loan fees | 5,722 | 650 | 9,723 | |
Guarantee commissions | 12,924 | 12,954 | 51,891 | |
Other fees and commissions | 12,063 | 7,358 | 19,035 | |
Total net income from fees and commissions | 62,611 | 56,058 | 229,381 | |
Foreign exchange income | 2,984 | 3,079 | 13,489 | |
Total net income from fees, commissions and foreign exchange income | 65,595 | 59,137 | 242,870 |
Notes
Note |
1.1-31.3 2015 DKK 1,000 |
1.1-31.3 2014 DKK 1,000 |
1.1-31.12 2014 DKK 1,000 |
|
5 | Value adjustments | |||
Loans and other debtors, current value adjustment | -118 | -201 | 11,129 | |
Bonds | 14,122 | 20,344 | 21,779 | |
Shares etc. | 19,243 | 18,117 | 23,594 | |
Foreign exchange income | 2,984 | 3,079 | 13,489 | |
Total derivatives financial instruments, of which | -7,963 | -4,607 | 3,482 | |
Interest-rate contracts | -8,414 | -4,921 | 2,543 | |
Share contracts | 451 | 314 | 939 | |
Issued bonds | 1,136 | 1,204 | 3,295 | |
Other liabilities | 0 | 1,398 | 5,525 | |
Total value adjustments | 29,404 | 39,334 | 82,293 | |
6 |
Staff and administration costs | |||
Payments to general management, board of directors and shareholders’ committee |
||||
General management | 976 | 960 | 4,031 | |
Board of directors | 0 | 0 | 1,392 | |
Shareholders’ committee | 0 | 0 | 393 | |
Total | 976 | 960 | 5,816 | |
Staff costs | ||||
Salaries | 30,256 | 28,054 | 124,634 | |
Pensions | 3,218 | 3,181 | 12,749 | |
Social security expenses | 226 | 250 | 905 | |
Costs depending on number of staff | 3,924 | 3,307 | 17,826 | |
Total | 37,624 | 34,792 | 156,114 | |
Other administration costs | 26,293 | 26,457 | 108,602 | |
Total staff and administration costs | 64,893 | 62,209 | 270,532 | |
7 | Number of full-time employees | |||
Average number of employees during the period converted into full-time employees |
258 | 258 | 257 | |
8 | Impairment charges on loans and other debtors etc. | |||
Net changes in impairment charges on loans and other debtors and provisions for losses on guarantees | 15,548 | 21,805 | 77,980 | |
Actual realised net losses | 8,920 | 3,908 | 53,427 | |
Interest concerning the impaired part of loans | -10,242 | -10,954 | -44,221 | |
Total impairment charges on loans and other debtors etc. | 14,226 | 14,759 | 87,186 |
Notes
Note |
1.1-31.3 2015 DKK 1,000 |
1.1-31.3 2014 DKK 1,000 |
1.1-31.12 2014 DKK 1,000 |
|
9 | Tax | |||
Tax calculated on the period’s profit | 39,350 | 39,750 | 139,780 | |
Adjustment of deferred tax | 0 | 0 | 1,826 | |
Adjustment of deferred tax due to change in tax rate | 0 | 0 | -538 | |
Adjustment of tax calculated for previous years | 0 | 0 | 84 | |
Total tax | 39,350 | 39,750 | 141,152 | |
Effective tax rate (%): | ||||
The current tax rate of the bank | 23.5 | 24.5 | 24.5 | |
Permanent deviations | -1.2 | -1.9 | -0.4 | |
Adjustment of deferred tax due to change in tax rate | 0.0 | 0.0 | -0.1 | |
Adjustment of tax calculated for previous years | 0.0 | 0.0 | 0.0 | |
Total effective tax rate | 22.3 | 22.6 | 24.0 | |
Note |
End March 2015 DKK 1,000 |
End March 2014 DKK 1,000 |
End Dec. 2014 DKK 1,000 |
|
10 | Claims on credit institutions and central banks | |||
Claims at call | 110,782 | 113,183 | 59,014 | |
Up to and including 3 months | 65,001 | 0 | 0 | |
More than 3 months and up to and including 1 year | 1,476 | 0 | 1,476 | |
More than 1 year and up to and including 5 years | 120,000 | 202,881 | 120,000 | |
Total claims on credit institutions and central banks | 297,259 | 316,064 | 180,490 | |
11 | Loans and other debtors at amortised cost price | |||
At call | 1,381,108 | 1,232,979 | 1,383,877 | |
Up to and including 3 months | 1,413,938 | 487,944 | 1,248,521 | |
More than 3 months and up to and including 1 year | 1,849,005 | 1,783,855 | 1,869,846 | |
More than 1 year and up to and including 5 years | 5,171,769 | 4,831,618 | 5,281,673 | |
More than 5 years | 5,562,024 | 5,624,856 | 5,723,217 | |
Total loans and other debtors at amortised cost price | 15,377,844 | 13,961,252 | 15,507,134 | |
Of which reverse transactions | 628,866 | 0 | 583,142 |
Notes
Note |
End March 2015 DKK 1,000 |
End March 2014 DKK 1,000 |
End Dec. 2014 DKK 1,000 |
|
12 | Impairment charges for loans and other debtors and provisions for losses on guarantees | |||
Individual impairment charges | ||||
Cumulative individual impairment charges for loans and other debtors at the end of the previous financial year | 701,131 | 736,513 | 736,513 | |
Impairment charges/value adjustments during the period | 56,005 | 73,460 | 179,129 | |
Reverse entry - impairment charges made in previous financial years |
-45,365 | -80,229 | -174,736 | |
Booked losses covered by impairment charges | -8,288 | -3,796 | -39,775 | |
Cumulative individual impairment charges for loans and other debtors on the balance sheet date | 703,483 | 725,948 | 701,131 | |
Collective impairment charges | ||||
Cumulative collective impairment charges for loans and other debtors at the end of the previous financial year | 226,272 | 112,652 | 112,652 | |
Impairment charges/value adjustments during the period | 9,852 | 32,082 | 113,620 | |
Cumulative collective impairment charges for loans and other debtors on the balance sheet date | 236,124 | 144,734 | 226,272 | |
Total cumulative impairment charges for loans and other debtors on the balance sheet date | 939,607 | 870,682 | 927,403 | |
Provisions for losses on guarantees | ||||
Cumulative individual provisions for losses on guarantees at the end of the previous financial year | 3,995 | 4,256 | 4,256 | |
Provisions/value adjustments during the period | 4,262 | 829 | 2,261 | |
Reverse entry - provisions made in previous financial years | -914 | -529 | -2,469 | |
Booked losses covered by provisions | -3 | -13 | -53 | |
Cumulative individual provisions for losses on guarantees on the balance sheet date | 7,340 | 4,543 | 3,995 | |
Total cumulative impairment charges for loans and other debtors and provisions for losses on guarantees on the balance sheet date | 946,947 | 875,225 | 931,398 | |
13 | Suspended calculation of interest | |||
Loans and other debtors with suspended calculation of interest on the balance sheet date |
57,842 | 81,698 | 58,244 |
Notes
Note |
End March 2015 DKK 1,000 |
End March 2014 DKK 1,000 |
End Dec. 2014 DKK 1,000 |
|
14 | Bonds at current value | |||
Listed on the stock exchange | 3,580,585 | 4,582,261 | 4,659,495 | |
Total bonds at current value | 3,580,585 | 4,582,261 | 4,659,495 | |
15 | Shares etc. | |||
Listed on NASDAQ Copenhagen | 52,372 | 38,694 | 40,650 | |
Unlisted shares at current value | 1,473 | 1,372 | 1,473 | |
Sector shares at current value | 246,909 | 189,591 | 240,924 | |
Total shares etc. | 300,754 | 229,657 | 283,047 | |
16 | Debt to credit institutions and central banks | |||
Debt payable on demand | 322,413 | 220,529 | 258,042 | |
Up to and including 3 months | 467,451 | 725,183 | 478,264 | |
More than 3 months and up to and including 1 year | 77,047 | 97,653 | 76,818 | |
More than 1 year and up to and including 5 years | 574,030 | 652,142 | 611,326 | |
More than 5 years | 488,230 | 549,231 | 486,765 | |
Total debt to credit institutions and central banks | 1,929,171 | 2,244,738 | 1,911,215 | |
17 | Deposits and other debts | |||
On demand | 9,678,679 | 8,205,431 | 9,209,187 | |
Deposits and other debts at notice: | ||||
Up to and including 3 months | 1,232,930 | 1,546,311 | 1,761,577 | |
More than 3 months and up to and including 1 year | 1,058,932 | 858,229 | 1,064,673 | |
More than 1 year and up to and including 5 years | 1,032,775 | 1,515,063 | 948,383 | |
More than 5 years | 2,426,266 | 1,649,687 | 2,466,453 | |
Total deposits and other debts | 15,429,582 | 13,774,721 | 15,450,273 | |
Of which repo transactions | 144,303 | 0 | 0 | |
Distributed as follows: | ||||
On demand | 9,314,266 | 7,794,891 | 8,815,421 | |
At notice | 337,828 | 350,965 | 348,422 | |
Time deposits | 2,166,313 | 2,322,800 | 2,735,273 | |
Long term deposit agreements | 2,243,940 | 1,884,775 | 2,238,720 | |
Special types of deposits | 1,367,235 | 1,421,290 | 1,312,437 | |
15,429,582 | 13,774,721 | 15,450,273 |
Notes
Note |
End March 2015 DKK 1,000 |
End March 2014 DKK 1,000 |
End Dec. 2014 DKK 1,000 |
|
18 | Issued bonds at amortised cost price | |||
Up to and including 3 months | 0 | 0 | 2,573 | |
More than 3 months and up to and including 1 year | 236,552 | 2,573 | 233,665 | |
More than 1 year and up to and including 5 years | 0 | 244,322 | 0 | |
Total issued bonds at amortised cost price | 236,552 | 246,895 | 236,238 | |
Distributed as follows: | ||||
Issues in Norwegian kroner: | ||||
Nom. 100 million NOK | 85,820 | 90,440 | 82,320 | |
Regulation at amortised cost price and adjustment to current value of issues |
1,338 | 4,564 | 2,473 | |
Issues in euro: | ||||
Nom. 20 million EUR | 149,394 | 149,318 | 148,872 | |
Other issues | 0 | 2,573 | 2,573 | |
236,552 | 246,895 | 236,238 | ||
19 | Subordinated debt | |||
Subordinated loan capital: | ||||
Floating rate loan, principal EUR 27 million, expiry 30 June 2021 |
201,682 | 201,579 | 200,977 | |
Hybrid core capital: | ||||
4.795% bond loan, nom, DKK 200 million, indefinite term |
0 | 200,000 | 200,000 | |
Own holding | 0 | -35,500 | -35,500 | |
Regulation at amortised cost price and adjustment to current value of subordinated loan capital and hybrid core capital | -1,062 | 3,714 | 190 | |
Total subordinated debt | 200,620 | 369,793 | 365,667 | |
20 | Share capital | |||
Number of shares at DKK 5 each: | ||||
Beginning of period | 4,780,000 | 4,840,000 | 4,840,000 | |
Changes during the period | 0 | 0 | -60,000 | |
End of period | 4,780,000 | 4,840,000 | 4,780,000 | |
Of which reserved for approved capital reduction | 110,000 | 60,000 | 0 | |
Of which reserved for subsequent cancellation | 30,000 | 20,000 | 110,000 | |
Total share capital | 23,900 | 24,200 | 23,900 |
Notes
Note |
End March 2015 DKK 1,000 |
End March 2014 DKK 1,000 |
End Dec. 2014 DKK 1,000 |
|
21 | Own capital shares | |||
Own capital shares included in the balance sheet at | 0 | 0 | 0 | |
The market value is | 189,754 | 100,649 | 130,781 | |
Number of own shares: | ||||
Beginning of year | 113,525 | 62,554 | 62,554 | |
Purchases during the period | 84,431 | 78,434 | 290,886 | |
Sales during the period | -55,605 | -55,692 | -179,915 | |
Cancellation during the period | 0 | 0 | -60,000 | |
End of period | 142,351 | 85,296 | 113,525 | |
Of which reserved for approved capital reduction | 110,000 | 60,000 | 0 | |
Of which reserved for subsequent cancellation | 30,000 | 20,000 | 110,000 | |
Nominal value of holding of own shares, end of period |
712 | 426 | 568 | |
Own shares’ proportion of share capital, end of period (%) |
3.0 | 1.8 | 2.4 | |
22 | Contingent liabilities etc. | |||
Contingent liabilities | ||||
Finance guarantees | 1,143,890 | 795,922 | 978,987 | |
Guarantees against losses on mortgage credit loans | 72,122 | 56,647 | 62,074 | |
Guarantee against losses Totalkredit | 116,127 | 121,920 | 187,068 | |
Registration and conversion guarantees | 1,068,184 | 186,700 | 728,745 | |
Sector guarantees | 48,596 | 48,175 | 48,596 | |
Other contingent liabilities | 211,196 | 686,313 | 212,340 | |
Total contingent liabilities | 2,660,115 | 1,895,677 | 2,217,810 | |
23 | Assets furnished as security | |||
First mortgage loans are 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 repayment of the first mortgage loans is deducted directly from the funding from the KfW Bankengruppe. | 1,045,299 | 1,138,705 | 1,081,240 | |
As security for clearing etc., the bank has pledged securities from its holding to the Central Bank of Denmark to a total market price of | 299,222 | 365,272 | 275,685 | |
Provision of security under CSA agreements | 87,019 | 63,207 | 86,269 |
Notes
Note |
End March 2015 DKK 1,000 |
End March 2014 DKK 1,000 |
End Dec. 2014 DKK 1,000 |
|
24 | Capital adequacy computation | |||
Computed in accordance with applicable capital adequacy rules (CRR and CRD IV). | ||||
Credit risk | 12,810,859 | 11,935,074 | 12,879,048 | |
Market risk | 1,778,864 | 1,267,580 | 1,464,214 | |
Operational risk | 1,679,498 | 1,567,369 | 1,567,369 | |
Total risk exposure amount | 16,269,221 | 14,770,023 | 15,910,631 | |
Shareholders’ equity | 3,077,974 | 2,891,143 | 3,098,608 | |
Proposed dividend etc. | 0 | 0 | -124,780 | |
Other deductions | -38,357 | 0 | 0 | |
Reserve for net revaluation | 0 | -189 | 0 | |
Deduction for the sum of equity investments etc. > 10% | -204,309 | -73,973 | -143,584 | |
Deduction of frame for share buy-back programme, net | -107,137 | 0 | 0 | |
Deduction of framework for own shares | -55,000 | -141,196 | -55,000 | |
Actual trading framework spent on own shares | 2,927 | 0 | 4,061 | |
Common Equity Tier 1 capital (excl. additional Tier 1 capital) | 2,676,098 | 2,675,785 | 2,779,305 | |
Additional Tier 1 capital | 0 | 131,600 | 131,600 | |
Deduction for the sum of equity investments etc. > 10% | 0 | -131,600 | -131,600 | |
Tier 1 capital | 2,676,098 | 2,675,785 | 2,779,305 | |
Reserve for net revaluation | 0 | 189 | 0 | |
Tier 2 capital | 141,177 | 161,100 | 160,782 | |
Deduction for the sum of equity investments etc. > 10% | -141,777 | -161,289 | -160,782 | |
Own funds | 2,676,098 | 2,675,785 | 2,779,305 | |
Common Equity Tier 1 capital ratio (excl. additional Tier 1 capital) (%) | 16.4 | 18.1 | 17.5 | |
Tier 1 capital ratio (%) | 16.4 | 18.1 | 17.5 | |
Total capital ratio (%) | 16.4 | 18.1 | 17.5 | |
Own funds requirements under Section 124 (2) of the Danish FSA. | 1,301,538 | 1,181,602 | 1,272,850 | |
25 |
The supervisory diamond (Danish Financial Supervisory Authority limits) |
|||
Stable funding (funding ratio) (< 1) | 0.8 | 0.7 | 0.8 | |
Excess liquidity (> 50%) | 146.7% | 169.6% | 140.7% | |
Total large exposures (< 125%) | 27.8% | 39.1% | 47.8% | |
Growth in loans (< 20%) | 5.6% | 0.8% | 7.8% | |
Real estate exposure (< 25%) | 11.5% | 12.7% | 11.6% | |
26 | Miscellaneous comments on: | |||
Main and key figures for the bank
|
Main figures summary
1st qtr. 2015 |
1st qtr. 2014 |
Full year 2014 |
|
Profit and loss account summary (million DKK) | |||
Net income from interest | 168 | 161 | 649 |
Dividend on capital shares etc. | 0 | 1 | 8 |
Net income from fees and commissions | 63 | 56 | 229 |
Net income from interest and fees | 231 | 218 | 886 |
Value adjustments | +29 | +39 | +82 |
Other operating income | 1 | 1 | 4 |
Staff and administration costs | 65 | 62 | 271 |
Amortisations, depreciations and write-downs on intangible and tangible assets | 1 | 1 | 12 |
Other operating costs | 4 | 4 | 15 |
Impairment charges for loans and other debtors etc. | -15 | -15 | -87 |
Profit before tax | 176 | 176 | 587 |
Tax | 39 | 40 | 141 |
Profit after tax | 137 | 136 | 446 |
Main figures from the balance sheet (million DKK) | |||
Loans and other debtors | 15,378 | 13,961 | 15,450 |
Deposits and other debts | 15,430 | 13,775 | 15,507 |
Subordinated debt | 201 | 370 | 366 |
Shareholders’ equity | 3,078 | 2,891 | 3,099 |
Balance sheet total | 21,098 | 19,776 | 21,238 |
Quarterly overview
(Million DKK) |
1st qtr. 2015 |
4rd qtr. 2014 |
3rd qtr. 2014 |
2nd qtr. 2014 |
1st qtr. 2014 |
4th qtr. 2013 | 3rd qtr. 2013 |
2nd qtr. 2013 |
1st qtr. 2013 |
Net income from interest | 161 | 160 | 158 | 159 | 158 | 156 | 155 | 151 | 153 |
Net income from fees and provisions excl. commission |
51 | 60 | 37 | 51 | 45 | 48 | 33 | 55 | 36 |
Income from sector shares | 10 | 4 | 4 | 2 | 16 | 5 | 3 | 4 | 2 |
Foreign exchange income | 3 | 2 | 4 | 4 | 3 | 3 | 3 | 2 | 5 |
Other operating income | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 0 |
Total core income excl. trade income | 226 | 227 | 204 | 217 | 223 | 213 | 195 | 213 | 196 |
Trade income | 12 | 10 | 7 | 8 | 11 | 7 | 5 | 9 | 6 |
Total core income | 238 | 237 | 211 | 225 | 234 | 220 | 200 | 222 | 202 |
Staff and administration costs | 65 | 79 | 62 | 68 | 62 | 70 | 61 | 66 | 58 |
Amortisations, depreciations and write-downs on intangible and tangible assets |
1 | 7 | 1 | 3 | 1 | 2 | 1 | 0 | 1 |
Other operating costs | 4 | 3 | 4 | 4 | 4 | 4 | 3 | 3 | 4 |
Total costs etc. | 70 | 89 | 67 | 75 | 67 | 76 | 65 | 69 | 63 |
Core earnings before impairments | 168 | 148 | 144 | 150 | 167 | 144 | 135 | 153 | 139 |
Impairment charges for loans and other debtors etc. |
-15 | -24 | -23 | -25 | -15 | -25 | -34 | -40 | -21 |
Core earnings | 153 | 124 | 121 | 125 | 152 | 119 | 101 | 113 | 118 |
Result for portfolio | +23 | +9 | +12 | +20 | +24 | +12 | -4 | +9 | +6 |
Expenses for bank packages | 0 | 0 | 0 | 0 | 0 | 0 | -1 | 0 | -1 |
Profit before tax | 176 | 133 | 133 | 145 | 176 | 131 | 96 | 122 | 123 |
Tax | 39 | 33 | 32 | 36 | 40 | 30 | 23 | 30 | 31 |
Profit after tax | 137 | 100 | 101 | 109 | 136 | 101 | 73 | 92 | 92 |
Danish Financial Supervisory Authority
key figures for Danish banks
1st qtr. 2015 |
1st qtr. 2014 |
Full year 2014 |
||
Capital ratios: | ||||
Total capital ratio | % | 16.4 | 18.1 | 17.5 |
Tier 1 capital ratio | % | 16.4 | 18.1 | 17.5 |
Individual solvency requirement | % | 8.9 | 8.8 | 8.9 |
Earnings: | ||||
Return on equity before tax | % | 5.7 | 6.1 | 19.6 |
Return on equity after tax | % | 4.4 | 4.7 | 14.9 |
Income/cost ratio | DKK | 3.09 | 3.14 | 2.52 |
Return on assets | % | 0.6 | 0.7 | 2.1 |
Market risk: | ||||
Interest rate risk | % | 2.4 | 0.9 | 1.2 |
Foreign exchange position | % | 1.2 | 0.7 | 0.4 |
Foreign exchange risk | % | 0.0 | 0.0 | 0.0 |
Liquidity risk: | ||||
Excess cover relative to statutory liquidity requirement |
% | 146.7 | 170.6 | 140.7 |
Loans and impairments thereon relative to deposits | % | 105.8 | 107.7 | 106.4 |
Credit risk: | ||||
Loans relative to shareholders’ equity | 5.0 | 4.8 | 5.0 | |
Growth in loans for the period | % | -0.8 | 0.8 | 12.0 |
Total large exposures | % | 27.8 | 39.1 | 47.8 |
Cumulative impairment percentage | % | 5.0 | 5.2 | 5.0 |
Impairment percentage for the period | % | 0.07 | 0.09 | 0.47 |
Proportion of debtors at reduced interest | % | 0.3 | 0.5 | 0.3 |
Share return: | ||||
Profit for the period after tax per share * / *** | DKK | 573.2 | 562.1 | 1,853.9 |
Book value per share * / ** | DKK | 13,274 | 12,161 | 13,280 |
Share price relative to profit for the period per share * | DKK | 46.5 | 42.0 | 12.4 |
Share price relative to profit for the period per share * / *** | 2.01 | 1.94 | 1.73 | |
* 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 period. *** Calculated on the basis of the average number of shares. The average number of shares is calculated as a simple average of the shares at the beginning of the period and at the end of the period. |
Management’s statement
The board of directors and the general management have today considered and approved the quarterly report for Ringkjøbing Landbobank A/S for the period 1 January - 31 March 2015.
The quarterly report was prepared in accordance with the provisions of the Danish Act on Financial Activities and further Danish requirements on listed financial companies concerning disclosure. We consider the accounting policies to be appropriate and the accounting estimates made to be responsible, such that the quarterly report provides a true and fair view of the bank’s assets, liabilities and financial position as of 31 March 2015 and of the bank’s activities for the period 1 January - 31 March 2015. We also believe that the management report contains a true and fair account of the bank’s activities and financial position as well as a description of the most important risks and uncertainties which can affect the bank.
The quarterly report is not audited or reviewed, but the external auditors have checked that the conditions for ongoing inclusion of the earnings for the period in the core capital have been met.
Ringkøbing, 22 April 2015
General Management: John Fisker CEO |
Board of Directors: |
Jens Lykke Kjeldsen Chairman |
Martin Krogh Pedersen Deputy chairman |
|
Gert Asmussen |
Inge Sandgrav Bak |
|
Jørgen Lund Pedersen |
||
Bo Bennedsgaard Employee board member |
Dan Astrup Sørensen Employee board member |
|
Gitte E. S. Vigsø Employee board member |