Spar Nord Bank Annual Report for 2016

Spar Nord reports highly satisfactory proft for the year: DKK 838 million net proft and 10.7% return on equity


Spar Nord has just published its Annual Report for 2016 – with the following key announcements:

Low-interest environment and keen competition deliver pressure on net interest income, which dropped 6% from 2015 to 2016, ending at
DKK 1,621 million.

ŸRecord-high income from fees, charges and commissions driven by housing and asset management: Total net income from fees, charges
and commissions came to DKK 1,053 million, up 2% from the previous record-high year (2015).

ŸHighly satisfactory market-value adjustments and dividends in the amount of DKK 434 million after strong performance, particularly for bonds – adjusted for the sale in 2015 of Spar Nord’s shareholding in Nørresundby Bank this represents an increase of 54%.

Costs & expenses were impacted by the migration of systems to a new data-processing service centre and the implementation of a new strategy and ended at DKK 1,896 million – adjusted for one-off items in 2016 this represented a flat development compared with 2015.

Core earnings before impairment ended at DKK 1,271 million, which was somewhat higher than forecast at the beginning of the year.

Loan impairment losses dropped to DKK 242 million, equal to 0.44% of total loans, advances and guarantees.

Solid capital position paves the way for the recommendation that a dividend of DKK 5 per share be distributed for 2016, equal to a payout
ratio of 75%.

Lasse Nyby, Chief Executive Officer of Spar Nord, has the following comment on the financial statements:

”2016 was a busy as well as positive year for Spar Nord, displaying both brisk customer activity and a smooth migration to the new IT platform, plus the so far successful launch of our new strategy. Customers’ activities and our employees’ dedicated efforts have helped us achieve a net profit of DKK 838 million, equal to a 10.7% return on equity. Given the keen competition on the market, and particularly against the backdrop of the modest economic growth and low interest level, we consider the profit to be highly satisfactory.

Looking forward it is clear that 2017 will be characterized by the work on implementing and embedding the new strategy we put forward in autumn 2016 – and get a head start on both growth and efficiency-enhancing initiatives. Externally, the low interest level and the presumably sustained relatively moderate demand for loans and financing will once more drive us to fight hard for the top line. Nonetheless, it will also be a year where we hopefully take yet another step in the right direction on the credit side”.

Should you have any questions in connection with this announcement or the Annual Report as a whole, please contact Ole Madsen, Senior Vice President, Communication & Business Development, at tel. + 45 9634 4010 or at´oma@sparnord.dk.

 


Attachments

Nr. 1 - Årsrapport 2016 - UK.pdf