The Danish Financial Supervisory Authority
Nasdaq Copenhagen A/S

22 February 2018

Vestjysk Bank's 2017 Annual Report

2017 Highlights
Vestjysk Bank realised a profit after tax of DKK 163 million in 2017. The Bank’s core operations are sound and core earnings of DKK 441 million before impairment are considered satisfactory. Impairment losses, and not least impairment losses relating to the Bank’s agricultural customers, are at a lower level than they were in 2016. This is the main reason the Bank’s profit after tax for 2017 is considered satisfactory under the given circumstances.

The overall plan for the Bank’s ownership and capital situation, as mentioned in the Half-Year Report, has been executed and the Bank has been restored as a well-capitalised bank.

Summary of Vestjysk Bank's results in 2017: 

  • Profit after tax of DKK 163 million (2016: DKK 80 million).
  • Core income of DKK 945 million (2016: DKK 1,004 million), including value adjustments of DKK 23 million (2016: DKK 65 million).
  • Cost ratio of 53.3 (2016: 50.3).
  • Core earnings before impairment of DKK 441 million (2016: DKK 499 million).
  • Impairment of loans and receivables, etc. of DKK 270 million (2016: DKK 416 million). Impairment charges on agriculture still account for the majority of the Bank’s impairment charges.
  • The total capital ratio stood at 19.2 per cent and the individual solvency need at 10.1 per cent, corresponding to excess coverage of 9.1 percentage points or DKK 1,363 million at 31 December 2017. At 31 December 2017, the capital conservation buffer had been phased in at 1.25 percentage points, resulting in a combined capital requirement of 11.3 per cent, corresponding to excess coverage of 7.9 per cent or DKK 1,175 million.
  • At 31 December 2017 the Bank’s LCR was 255 per cent, compared with a requirement of 80 per cent.

Outlook for 2018
Given an unchanged economic climate and an overall decrease in impairment losses, the Bank's total business volume is expected to have the capacity to generate a profit after tax of around DKK 175-250 million. This expectation is based on an assumption of an unchanged economic climate, including specifically the current uncertainty relating to settlement prices for agricultural products. Any further decline in these could impact the Bank’s impairment losses.

Please address any enquiries regarding the present announcement to Jan Ulsø Madsen, CEO, at tel. +45 96 63 21 04.

Vestjysk Bank A/S

Vagn Thorsager                               Jan Ulsø Madsen
Chairman                                        CEO

Vestjysk Bank A/S
Torvet 4-5
7620 Lemvig
Phone +45 96 63 20 00

CVR no. 34631328

Link to company announcement:

Link to Vestjysk Bank's 2017 Annual Report: