Alm. Brand Bank A/S – Interim report Q1 2016


Highlights

 

  • The bank posted a pre-tax profit of DKK 14 million in Q1 2016, against a loss of DKK 68 million in Q1 2015. The performance was satisfactory.

 

  • Core earnings in the forward-looking activities amounted to DKK 21 million (Q1 2015: DKK 18 million). The forward-looking activities reported a pre-tax profit of DKK 8 million, which was below the expected level. The DKK 2 million increase relative to Q1 2015 was driven primarily by greater business volume and fewer costs.

 

  • Impairment writedowns on private customers amounted a reversal of DKK 1 million in Q1 2016, compared with an expense of DKK 6 million in Q1 2015.

 

  • The bank’s underlying activities continue to develop favourably with an increase in the level of activity. Year on year, the number of full-service customers increased by 8%, and the portfolio of Totalkredit loans for which the bank acted as intermediary grew by 19%.

 

  • The winding-up activities reported a profit of DKK 6 million in Q1 2016, marking a significant improvement of DKK 80 million from a loss of DKK 74 million in Q1 2015. The performance was better than expected.

 

  • Impairment writedowns on the winding-up portfolio amounted to a reversal of DKK 1 million in Q1 2016. The favourable trend was driven by reversals on commercial customers and mortgage deeds and a lower level of impairment on agricultural customers.

 

  • The forward-looking activities are expected to generate pre-tax profit of about DKK 70 million in 2016. The winding-up activities are expected to report a pre-tax loss of DKK 50-75 million.

 

Other highlights

 

  • Income from the forward-looking activities increased by 4% to DKK 144 million in Q1 2016 (Q1 2015: DKK 138 million). The improvement was attributable to higher income from the bank’s leasing portfolio.

 

  • Costs related to the forward-looking activities amounted to DKK 88 million in Q1 2016, which was 4% or DKK 4 million lower than the DKK 92 million reported in Q1 2015.

 

  • Value adjustments produced a loss of DKK 14 million in Q1 2016, against a loss of DKK 6 million in Q1 2015, being strongly impacted by a negative return on the own portfolio due to a widening of the credit spread between mortgage bonds and swap rates.

 

  • In Q1 2016, the bank reduced the winding-up portfolio by DKK 145 million adjusted for losses and writedowns. The reduction of the winding-up portfolio is generally progressing better than expected.

 

  • At 31 March 2016, the bank had excess liquidity of DKK 3.7 billion, corresponding to an excess cover of 260% relative to the statutory requirement. The excess cover was reduced by DKK 0.4 billion in the first quarter, and efforts will be made to reduce it further in 2016.

 

  • At 31 March 2016, the bank’s total capital stood at DKK 1.4 billion, and the total capital ratio was 19.3. The bank’s individual solvency need was calculated at 14.3%, and the bank thus had an excess cover of 5.0 percentage points. The banking group had a total capital ratio of 17.9, and the individual solvency need was calculated at 14.3%. The banking group thus had an excess cover of 3.6 percentage points.

 

Contact

 

Please direct any questions regarding this announcement to:

Kim Bai Wadstrøm, Managing Director, tel. +45 35 47 70 14, or Susanne Biltoft, Head of Information and Investor Relations, tel. +45 35 47 76 61.

 

 


Attachments

ABB-04-2016 - Kvartalsrapport Q1 2016_UK.pdf ABB-04-2016 - Selskabsmeddelelse Q1 2016_UK.pdf