Nasdaq Copenhagen
London Stock Exchange
Other stakeholders
10 April 2018
Ringkjøbing Landbobank’s report for the first quarter of 2018
- Early publication
As indicated in the report below for the first quarter of 2018, the Danish FSA carried out a “major” inspection of the bank during the quarter.
The inspection process was satisfactory and it was concluded just before Easter. The inspection meant early clarification of several items and the bank already has a total overview. The full first-quarter report is thus finalised and approved by the bank’s management today.
Publication has thus been brought forward compared to the financial calendar for 2018 which was announced earlier.
Please do not hesitate to contact the bank’s management if you have any questions.
| Yours sincerely, |
| Ringkjøbing Landbobank John Fisker Jørn Nielsen |
Ringkjøbing Landbobank’s report for the first quarter of 2018
- Substantial growth and upward adjustment of expectations
Profit before tax increased by 36% to DKK 269 million, equivalent to a 30% return on equity at the beginning of the period, which is considered highly satisfactory. Core earnings showed an increase of 27% to DKK 217 million and are thus well above budget for the first quarter of the year.
| (DKK million) | Q1 2018 | Q1 2017 | 2017 | 2016 | 2015 | 2014 |
| Total core income | 274 | 251 | 1,019 | 983 | 954 | 907 |
| Total expenses and depreciation | -83 | -75 | -334 | -318 | -306 | -298 |
| Core earnings before impairment charges for loans | 191 | 176 | 685 | 665 | 648 | 609 |
| Impairment charges for loans etc. | +26 | -5 | -10 | -48 | -60 | -87 |
| Core earnings | 217 | 171 | 675 | 617 | 588 | 522 |
| Result for the portfolio etc. | +52 | +27 | +60 | +44 | 0 | +65 |
| Profit before tax | 269 | 198 | 735 | 661 | 588 | 587 |
The quarter - highlights
- Upward adjustment of expectations for core earnings by DKK 100 million to the range DKK 700 - 775 million
- Upward adjustment of expectations for profit before tax by approximately DKK 150 million to the range DKK 700 - 875 million
- Profit before tax was DKK 269 million, equivalent to a return of 30% p.a. on equity at the beginning of the period
- Core earnings were DKK 217 million, which is well above budget for the quarter
- Reversal of impairment charges by DKK 26 million
- During the first quarter, the Danish FSA carried out a “major” inspection with a satisfactory result
- Increase in the bank’s loans of 10% and an increase in deposits of 5%
- The bank has determined new capital targets in connection with the implementation of the MREL requirement
- The adopted share buy-back programme of DKK 170 million is expected to be initiated later in the 2nd quarter
- A good image and high customer satisfaction continue to increase customer numbers
Management’s review
Core income
Net interest income was DKK 167 million in the first quarter of 2018 compared to DKK 161 million in 2017, an increase of 4%. The bank is satisfied with this development, but it should also be compared to a 10% increase in lending volumes, which underlines that interest income is still influenced by a changed mix of loans with more low-margin and low-risk products. This item is also still influenced by the competition in the sector and continuing low interest rates.
Fee,commission and foreign exchange income amounted to DKK 85 million net in the first quarter of 2018 compared to DKK 71 million net in 2017, an increase of 19%.Fee income in the first quarter of 2018 was primarily affected positively by an increase in income from securities trading, asset management and custody accounts and from guarantee commission and mortgage credit commission.
Earnings from sector shares increased by DKK 4 million to DKK 21 million in the first quarter of 2018. The earnings derive primarily from return on the bank’s ownership interests in DLR Kredit and BankInvest Holding (BI Holding).
In March 2018, the board of directors of BI Holding, in which the bank had an ownership interest of 10.3% at the end of March 2018, decided to change the valuation principles for the company’s shares. The change in the valuation principles resulted in a revaluation of the bank’s ownership interest by DKK 52 million. Although the revaluation can be related to a sector share, it has been booked in the bank’s statement of core earnings under the item “Result for the portfolio” because it is a once-only income that does not influence the bank’s regular income from its holding of sector shares.
Total core income in the first quarter increased by 9% from DKK 251 million in 2017 to DKK 274 million in 2018.
Costs and depreciation
Total costs including depreciation and write-downs on tangible assets amounted to DKK 83 million in the first quarter of 2018 compared to DKK 75 million last year, an increase of 11%.
The increase compared to the first quarter of 2018 is related to a DKK 3 million increase in staff costs and a DKK 5 million non-recurrent write-down on property.
The rate of costs was unchanged relative to the 2017 level and was computed at 30.3 for the first quarter of 2018, which continues to be the lowest in Denmark.
The bank expects total costs to increase by 3-5% for the year as a whole including the above write-down on property.
Impairment charges for loans
The bank reversed impairment charges during the first quarter of the year, and a total of DKK 26 million was thus carried to income during the quarter compared to an expense of DKK 5 million in 2017. The reversals were made on the basis of improved credit quality in certain exposures, and as a whole there were no new impairment charges during the quarter.
With effect from 1 January, the bank started using impairment rules that are compatible with the IFRS 9 reporting standard. The IFRS 9 rules are incorporated into the Danish Executive Order on Financial Reports for Credit Institutions and Investment Firms etc. and with the introduction of IFRS 9, the previous impairment model, which was an incurred loss model, has been replaced by an expected loss model.
The new expected loss model means that, on initial recognition, a financial asset must be impaired by the expected credit loss for a twelve-month period (stage 1). If the credit risk for the asset subsequently increases significantly relative to initial recognition, the asset must be impaired by the expected credit loss over the asset’s remaining life (stage 2). Impairment charges for exposures at stages 1 and 2 are calculated on the basis of a statistical model.
If there is objective evidence of impairment (stage 3), the asset must be impaired by the expected credit loss over the asset’s remaining life, but interest income must be recognised in the income statement based on the effective interest method applied to the impaired amount.
The IFRS 9 rules resulted in additional impairment charges of DKK 59 million at the beginning of 2018; the effect on the bank’s equity after tax at the beginning of the period is thus DKK 46 million, equivalent to 1.2% of equity. Further reference is made to the section “Capital structure”.
Individual impairment charges (stage 3) were DKK 558 million at the end of the quarter, while stages 1 and 2 impairment charges totalled DKK 371 million on 31 March 2018.
The bank’s total account for impairment charges and provisions was DKK 971 million at the end of the quarter, equivalent to 4.0% of total loans and guarantees.
The portfolio of loans with suspended calculation of interest amounted to DKK 22 million, equivalent to 0.1% of the bank’s total loans and guarantees at the end of the quarter.
On the basis of the quality of the bank’s loans portfolio and prospects for economic development, the bank still expects total impairment charges in the coming quarters to remain low.
Core earnings
| (DKK million) | Q1 2018 | Q1 2017 | 2017 | 2016 | 2015 | 2014 |
| Total core income | 274 | 251 | 1,019 | 983 | 954 | 907 |
| Total expenses and depreciation | -83 | -75 | -334 | -318 | -306 | -298 |
| Core earnings before impairment charges for loans | 191 | 176 | 685 | 665 | 648 | 609 |
| Impairment charges for loans etc. | +26 | -5 | -10 | -48 | -60 | -87 |
| Core earnings | 217 | 171 | 675 | 617 | 588 | 522 |
Core earnings were DKK 217 million compared to DKK 171 million last year, which is well above budget for the quarter.
Result for the portfolio and market risk
The result for the portfolio for the first quarter of 2018 was positive by DKK 52 million net including funding costs for the portfolio. DKK 52 million is attributable to the revaluation of the bank’s ownership interest in BI Holding. Further details are given in the section “Core income”.
Shares etc. at the end of the quarter amounted to DKK 715 million, DKK 41 million of which was in listed shares etc. and DKK 674 million in sector shares etc. The bond portfolio amounted to DKK 3,293 million, and the majority of the portfolio consists of AAA-rated Danish government and mortgage credit bonds.
The total interest rate risk - computed as the impact on the profit of a one percentage point change in the interest level - was 0.9% of the bank’s tier 1 capital at the end of the quarter.
The bank’s total market risk within exposures to interest rate risk, listed shares etc. and foreign currency remains at a moderate level, and this policy will continue.
The bank’s risk of losses based on a Value at Risk model (computed with a 10-day horizon and 99% probability) was as follows in the first quarter of 2018:
| Risk in DKK million | Risk relative to equity end of Q1 2018 in % | ||
| Highest risk of loss: | 9.1 | 0.24 | % |
| Lowest risk of loss: | 3.3 | 0.09 | % |
| Average risk of loss: | 5.5 | 0.15 | % |
| End of period risk of loss: | 4.4 | 0.12 | % |
Profit after tax
Profit after tax was DKK 224 million for the first quarter of 2018, compared to DKK 158 million last year.
The profit after tax is equivalent to a return on equity at the beginning of the period of 25% p.a. after payment of dividend.
Balance sheet
The bank’s balance sheet at the end of the quarter stood at DKK 27,004 million compared to last year’s DKK 24,441 million.
The bank’s deposits increased by 5% from DKK 18,565 million at the end of March 2017 to DKK 19,511 million at the end of March 2018. The bank’s loans increased by 10% from DKK 18,186 million at the end of March 2017 to DKK 19,925 million at the end of March 2018.
The bank’s portfolio of guarantees at the end of the quarter was DKK 3,076 million compared to DKK 2,484 million in 2017.
The Danish FSA’s inspection
The Danish FSA has just completed a “major” inspection of the bank which was carried out in February and March.
The inspection process was satisfactory. There was no objective evidence to suggest that additional impairment charges for loans were required, and the calculated individual solvency requirement was approved at an unchanged level. The final report on the inspection is expected to be published in May 2018.
Liquidity
The bank’s liquidity situation is good. The bank’s short-term funding with term to maturity of less than 12 months amounts to DKK 1.2 billion, balanced by DKK 6.0 billion primarily in short-term investments in the Danish central bank and in liquid securities.
The bank's loans at the end of the quarter were at the same level as the bank's deposits. The loan portfolio is thus more than fully financed by the bank’s deposits and equity. In addition, part of the loan portfolio for wind turbines in Germany is refinanced back-to-back with KfW Bankengruppe, which means that DKK 923 million can be disregarded in terms of liquidity.
In terms of liquidity, the bank must comply with the LCR requirement. On 31 March 2018 the bank’s LCR was 256% and the bank thus met the statutory requirement of at least 100%.
On 31 December 2016, the LCR requirement replaced the statutory Section 152 requirement, which was phased out on the same date. However, the latter must still be disclosed, and the figure at the end of March 2018 was 130%.
During the first quarter of the year, the bank strengthened its long-term liquidity by entering into longer-term deposit and money market agreements and issues for the equivalent of a total of DKK 185 million euros with terms from 5 to 10 years and with disbursement in the first quarter of 2018 and later.
This was done with a view to funding growth, remaining independent of the short-term money market and strengthening the bank’s short-term and long-term LCR.
Capital structure
It was announced at the bank’s annual general meeting on 28 February 2018 that the bank’s management had worked with new capital targets. These targets are now finalised and the bank will operate with three targets in the future.
The common equity tier 1 capital ratio must be 13.5%, the total capital ratio must be 17% and the total capital for covering the MREL add-ons must be 22%. The targets are minimum figures that must be met at the end of the year, but there may be major fluctuations in the capital ratios over the year due to the capital rules applying to share buy-back programmes. Finally, no time-limit has been set for when the targets for the common equity tier 1 capital ratio and the total capital ratio must be met.
The total capital target for covering the MREL add-ons must be met already at the beginning of 2019, because the bank has decided to meet the fully phased-in MREL requirement from that date.
The Danish FSA has given the bank a provisional MREL requirement of 17.9% but it will be recalculated later this year. To this must be added a countercyclical capital buffer of 0.50% which will be introduced with effect from 31 March 2019. To comply with the MREL requirement, the bank had established funding to meet the requirements for grandfathering of contractual senior funding already at the end of 2017. DKK 2.0 billion of this can be included in the sum needed to comply with the bank’s MREL requirement at the beginning of 2019. The bank will thus have comfortable excess cover to meet both the MREL requirement and its own target. The bank further expects that it must raise tier 3 capital during 2020 or 2021.
Equity at the beginning of 2018 was DKK 3,817 million. To this must be added the profit for the period, while the dividend paid must be subtracted and adjustments must be made for movements in the bank’s holding of own shares, after which the equity at the end of the quarter was DKK 3,785 million.
The bank’s total capital ratio was computed at 17.6% at the end of the first quarter of 2018, and the tier 1 capital ratio at 16.1%.
| Capital ratios | Q1 2018 | Q1 2017 | 2017 | 2016 | 2015 | 2014 |
| Common equity tier 1 capital ratio (%) | 16.1 | 16.4 | 16.5 | 16.9 | 17.1 | 17.5 |
| Tier 1 capital ratio (%) | 16.1 | 16.4 | 16.5 | 16.9 | 17.1 | 17.5 |
| Total capital ratio (%) | 17.6 | 17.9 | 17.8 | 18.8 | 18.8 | 17.5 |
| Individual solvency requirement (%) | 9.0 | 9.0 | 9.0 | 9.0 | 9.0 | 8.9 |
The statement of capital is influenced by the deduction of the entire DKK 170 million share buy-back programme from the capital, the equivalent of 0.9 percentage points.
The bank has calculated the individual solvency requirement at the end of March 2018 at 9.0%. To this should be added a capital conservation buffer of 1.9%; the total requirement for the bank’s total capital is thus 10.9%.
Compared with the actual total capital of DKK 3.5 billion, the capital buffer at the end of March 2018 was thus DKK 1.3 billion, equivalent to 6.7 percentage points.
Capital reduction and share buy-back programme
It was decided at the annual general meeting held on 28 February 2018 to cancel 538,000 of the bank's own shares. The capital reduction is expected to be finalised during May 2018. The bank’s actual share capital is thus DKK 21.812 million in nom. DKK 1 shares.
The general meeting also adopted a new share buy-back programme, under which the bank may buy back own shares for up to DKK 170 million for cancellation at a future general meeting. The new programme has not yet been initiated and no shares reserved under it. The programme is expected to be initiated later in the 2nd quarter.
The Supervisory Diamond
The bank complies with the Danish FSA’s Supervisory Diamond which contains five different benchmarks and associated limit values which Danish banks must observe.
The benchmark for large exposures was changed with effect from 1 January 2018. In future it will be calculated as the sum of the bank’s 20 largest exposures relative to its common equity tier 1 capital with a limit value of 175%.
The Danish FSA’s benchmarks and associated limit values and the bank’s key figures at the end of March 2018, etc. are given in the table below.
| The Supervisory Diamond (Danish FSA limit values) | Q1 2018 | Q1 2017 | 2017 | 2016 | 2015 | 2014 | ||||||
| Stable funding (funding ratio) (< 1) | 0.7 | 0.8 | 0.8 | 0.7 | 0.8 | 0.8 | ||||||
| Excess liquidity (> 50%) | 130.3 | % | 130.3 | % | 116.8 | % | 139.6 | % | 99.7 | % | 140.7 | % |
| Total large exposures (< 175%) | 137.7 | % | N/A | 136.1 | % | N/A | N/A | N/A | ||||
| Total large exposures (< 125%) (previous applicable) | 22.1 | % | 30.3 | % | 22.5 | % | 29.5 | % | 63.4 | % | 47.8 | % |
| Growth in loans (< 20%) | 9.6 | % | 6.7 | % | 10.7 | % | 2.7 | % | 14.0 | % | 7.8 | % |
| Real property exposure (< 25%) | 19.8 | % | 17.2 | % | 18.0 | % | 14.8 | % | 14.1 | % | 11.6 | % |
Ringkjøbing Landbobank thus observes all five current limit values by a good margin.
The Danish FSA has also decided to change the liquidity benchmark with effect from 30 June 2018. The current excess liquidity coverage benchmark calculated on the basis of the minimum requirement in Section 152 of the Financial Business Act will be a future LCR liquidity benchmark and show the ability of banks to survive stressed liquidity for a three-month period. The limit value for the new liquidity benchmark will require the key figure to be greater than 100%. The bank expects to be able to comply with the limit value for the new liquidity benchmark without any problems. Further reference is made to the section “Liquidity”.
Encouraging increase in customer numbers
The bank has previously implemented a large number of outreach initiatives to both current and new customers. The outreach initiatives are scheduled to continue in 2018 at both regional and national levels.
The management has changed the strategy for the bank and no more new branches will be established for the time being. Instead, it was decided to invest in the existing branches and utilise the good potential in the market for attracting additional customers on the basis of the bank’s good image and its customers’ willingness to recommend the bank to others. In the first quarter of 2018 the bank thus added a business customer department to its Private Banking branch in Aarhus.
The good image and high customer satisfaction continue to increase customer numbers, and the bank also saw a highly satisfactory net increase in new customers in both the branch network and within the niche concepts during the first quarter of the year.
Changes in the board of directors
Due to the provision on age in the articles of association, chairman of the board of directors for 16 years, timber merchant Jens Lykke Kjeldsen retired from the bank’s board of directors and from the shareholders' committee with effect from the annual general meeting held on 28 February 2018.
As a consequence, the board of directors has elected the former deputy chairman of the board, CEO Martin Krogh Pedersen, to be the new chairman of the board and manager Jens Møller Nielsen as the new deputy chairman of the board.
The shareholders’ committee will elect one additional member to the bank’s board of directors on 25 April 2018, to bring the total number of board members back up to nine.
Accounting policies and key figures
As indicated in the section “Impairment charges for loans”, the bank’s accounting policy for calculating impairment charges for loans changed with effect from 1 January 2018. It is not practically possible to change the comparative figures for 2017 and earlier years concerning the changed accounting policy and these figures have therefore not been changed.
The accounting policies are otherwise unchanged relative to those in the submitted and audited 2017 annual report.
Expected results for 2018
The bank’s core earnings for the first quarter of 2018 were DKK 217 million, which is well above the budget for the quarter.
On the basis of the realised increase in loans, increasing net interest income, encouraging increase in customer numbers and the reversed impairment charges, expectations for core earnings for 2018 are adjusted upward from DKK 600 - 675 million to DKK 700 - 775 million.
Profit before tax for the quarter was DKK 269 million. On this basis expectations for profit before tax are adjusted upward from DKK 540 - 735 million to DKK 700 - 875 million.
Disclaimer:
This document is a translation of an original document in Danish. The original Danish text shall be the governing text for all purposes and in case of any discrepancy the Danish wording shall be applicable.
Main and key figures
| Q1 2018 | Q1 2017 | Full year 2017 | |
| Main figures for the bank (DKK million) | |||
| Total core income | 274 | 251 | 1,019 |
| Total expenses and depreciation | -83 | -75 | -334 |
| Core earnings before impairment charges for loans | 191 | 176 | 685 |
| Impairment charges for loans etc. | +26 | -5 | -10 |
| Core earnings | 217 | 171 | 675 |
| Result for the portfolio | +52 | +27 | +60 |
| Profit before tax | 269 | 198 | 735 |
| Profit after tax | 224 | 158 | 589 |
| Equity | 3,785 | 3,500 | 3,817 |
| Deposits | 19,511 | 18,565 | 19,110 |
| Loans | 19,925 | 18,186 | 19,351 |
| Balance sheet total | 27,004 | 24,441 | 25,796 |
| Guarantees | 3,076 | 2,484 | 3,184 |
| Key figures for the bank (per cent) | |||
| Return on equity before tax, beginning of period | 30.1 | 23.3 | 21.7 |
| Return on equity after tax, beginning of period | 25.1 | 18.6 | 17.3 |
| Rate of costs | 30.3 | 29.9 | 32.8 |
| Common equity tier 1 capital ratio | 16.1 | 16.4 | 16.5 |
| Tier 1 capital ratio | 16.1 | 16.4 | 16.5 |
| Total capital ratio | 17.6 | 17.9 | 17.8 |
| Individual solvency requirement | 9.0 | 9.0 | 9.0 |
| Key figures per DKK 1 share (DKK) | |||
| Core earnings | 9.9 | 7.6 | 30.9 |
| Profit before tax | 12.3 | 8.8 | 33.7 |
| Profit after tax | 10.3 | 7.0 | 27.0 |
| Book value | 173.5 | 156.6 | 175.0 |
| Price, end of period | 332.0 | 309.0 | 321.5 |
| Dividend | - | - | 9.0 |
Statements of income and comprehensive income
| Note | Q1 2018 DKK 1,000 | Q1 2017 DKK 1,000 | Full year 2017 DKK 1,000 | |
| 1 | Interest income | 174,072 | 177,157 | 694,136 |
| 2 | Interest expenses | 10,318 | 15,948 | 53,094 |
| Net interest income | 163,754 | 161,209 | 641,042 | |
| 3 | Dividend from shares etc. | 852 | 567 | 10,258 |
| 4 | Fee and commission income | 90,291 | 76,431 | 322,717 |
| 4 | Fee and commission expenses | 9,612 | 10,326 | 42,486 |
| Net interest and fee income | 245,285 | 227,881 | 931,531 | |
| 5 | Value adjustments | +79,899 | +48,729 | +143,225 |
| Other operating income | 1,050 | 823 | 4,979 | |
| 6, 7 | Staff and administration costs | 76,307 | 73,112 | 327,024 |
| Amortisation, depreciation and write-downs on intangible and tangible assets | 5,926 | 1,069 | 4,249 | |
| Other operating expenses | ||||
| Miscellaneous other operating expenses | 0 | 54 | 326 | |
| Costs Guarantee Fund and Resolution Fund | 750 | 600 | 2,848 | |
| 8 | Impairment charges for loans and other receivables etc. | +25,551 | -4,972 | -10,320 |
| Results from investments in associated companies | 0 | 0 | -20 | |
| Profit before tax | 268,802 | 197,626 | 734,948 | |
| 9 | Tax | 44,375 | 39,750 | 146,308 |
| Profit after tax | 224,427 | 157,876 | 588,640 | |
| Other comprehensive income | 0 | 0 | 0 | |
| Total comprehensive income for the period | 224,427 | 157,876 | 588,640 | |
Core earnings
| Note | Q1 2018 DKK 1,000 | Q1 2017 DKK 1,000 | Full year 2017 DKK 1,000 | |
| Net interest income | 167,157 | 161,196 | 642,707 | |
| 4 | Net fee and commission income excluding trading income | 58,484 | 48,134 | 215,374 |
| Income from sector shares etc. | 20,608 | 17,095 | 70,674 | |
| 4 | Foreign exchange income | 4,516 | 5,230 | 20,902 |
| Other operating income | 1,050 | 823 | 4,979 | |
| Total core income excluding trading income | 251,815 | 232,478 | 954,636 | |
| 4 | Trading income | 22,195 | 17,971 | 64,857 |
| Total core income | 274,010 | 250,449 | 1,019,493 | |
| 6, 7 | Staff and administration costs | 76,307 | 73,112 | 327,024 |
| Amortisation, depreciation and write-downs on intangible and tangible assets | 5,926 | 1,069 | 4,249 | |
| Other operating expenses | 750 | 654 | 3,174 | |
| Total expenses etc. | 82,983 | 74,835 | 334,447 | |
| Core earnings before impairment charges for loans | 191,027 | 175,614 | 685,046 | |
| 8 | Impairment charges for loans and other receivables etc. | +25,551 | -4,972 | -10,320 |
| Core earnings | 216,578 | 170,642 | 674,726 | |
| Result for the portfolio | +52,224 | +26,984 | +60,222 | |
| Profit before tax | 268,802 | 197,626 | 734,948 | |
| 9 | Tax | 44,375 | 39,750 | 146,308 |
| Profit after tax | 224,427 | 157,876 | 588,640 | |
Balance sheet
| Note | 31 March 2018 DKK 1,000 | 31 March 2017 DKK 1,000 | 31 Dec. 2017 DKK 1,000 | |
| Assets | ||||
| Cash in hand and demand deposits with central banks | 291,347 | 279,825 | 308,211 | |
| 10 | Receivables from credit institutions and central banks | 2,405,893 | 2,163,362 | 1,211,577 |
| Receivables with notice from central banks | 2,094,341 | 1,703,184 | 957,086 | |
| Money market operations and bilateral loans - term to maturity less than 1 year | 256,552 | 310,898 | 199,491 | |
| Bilateral loans - term to maturity more than 1 year | 55,000 | 149,280 | 55,000 | |
| 11, 12 | Loans and other receivables at amortised cost | 19,925,208 | 18,185,924 | 19,350,866 |
| Loans and other receivables at amortised cost | 19,002,703 | 17,233,447 | 18,374,249 | |
| Wind turbine loans with direct funding | 922,505 | 952,477 | 976,617 | |
| 14 | Bonds at fair value | 3,292,737 | 2,801,094 | 3,952,614 |
| 15 | Shares etc. | 714,513 | 595,890 | 621,285 |
| Investments in associated companies | 489 | 509 | 489 | |
| Land and buildings, total | 50,515 | 56,045 | 55,647 | |
| Investment properties | 3,561 | 3,561 | 3,561 | |
| Domicile properties | 46,954 | 52,484 | 52,086 | |
| Other tangible assets | 18,833 | 19,495 | 18,811 | |
| Current tax assets | 22,961 | 12,411 | 20,483 | |
| Deferred tax assets | 8,719 | 8,153 | 8,719 | |
| Temporary assets | 5,587 | 5,200 | 4,000 | |
| Other assets | 260,243 | 306,214 | 235,351 | |
| Prepayments | 6,678 | 6,414 | 8,430 | |
| Total assets | 27,003,723 | 24,440,536 | 25,796,483 | |
Balance sheet
| Note | 31 March 2018 DKK 1,000 | 31 March 2017 DKK 1,000 | 31 Dec. 2017 DKK 1,000 | |
| Liabilities and equity | ||||
| 16 | Debt to credit institutions and central banks | 1,882,258 | 1,445,493 | 1,599,416 |
| Money market operations and bilateral credits - term to maturity less than 1 year | 736,218 | 325,664 | 455,285 | |
| Bilateral credits - term to maturity more than 1 year | 223,535 | 167,352 | 167,514 | |
| Bilateral credits from KfW Bankengruppe | 922,505 | 952,477 | 976,617 | |
| 17 | Deposits and other debt | 19,510,746 | 18,564,515 | 19,110,127 |
| 18 | Issued bonds at amortised cost | 1,197,939 | 297,514 | 673,436 |
| Other liabilities | 211,258 | 250,520 | 210,691 | |
| Deferred income | 3,545 | 2,967 | 3,879 | |
| Total debt | 22,805,746 | 20,561,009 | 21,597,549 | |
| 12 | Provisions for losses on guarantees | 27,318 | 7,806 | 10,263 |
| 12 | Other provisions for liabilities | 13,840 | 0 | 0 |
| Total provisions for liabilities | 41,158 | 7,806 | 10,263 | |
| Tier 2 capital | 372,058 | 371,275 | 371,753 | |
| 19 | Total subordinated debt | 372,058 | 371,275 | 371,753 |
| 20 | Share capital | 22,350 | 22,850 | 22,350 |
| Net revaluation reserve under the equity method | 138 | 158 | 138 | |
| Retained earnings | 3,762,273 | 3,477,438 | 3,592,780 | |
| Proposed dividend etc. | - | - | 201,650 | |
| Total shareholders’ equity | 3,784,761 | 3,500,446 | 3,816,918 | |
| Total liabilities and equity | 27,003,723 | 24,440,536 | 25,796,483 | |
| 21 | Own shares | |||
| 22 | Contingent liabilities etc. | |||
| 23 | Assets furnished as security | |||
| 24 | Loans and guarantees in per cent, by sector and industry | |||
| 25 | Miscellaneous comments | |||
Statement of changes in equity
| DKK 1,000 | Share capital | Net revaluation reserve under the equity method | Retained earnings | Proposed dividend etc. | Total share-holders’ equity |
| On 31 March 2018: Shareholders’ equity at the end of the previous financial year | 22,350 | 138 | 3,592,780 | 201,650 | 3,816,918 |
| Changed accounting policy for impairment charges under IFRS 9 | -45,836 | -45,836 | |||
| Adjusted shareholders’ equity at the end of the previous financial year | 22,350 | 138 | 3,546,944 | 201,650 | 3,771,082 |
| Dividend etc. paid | -201,650 | -201,650 | |||
| Dividend received on own shares | 5,112 | 5,112 | |||
| Shareholders’ equity after distribution of dividend etc. | 22,350 | 138 | 3,552,056 | 0 | 3,574,544 |
| Purchase of own shares | -74,190 | -74,190 | |||
| Sale of own shares | 58,482 | 58,482 | |||
| Other equity transactions | 1,498 | 1,498 | |||
| Total comprehensive income for the period | 224,427 | 224,427 | |||
| Shareholders’ equity on the balance sheet date | 22,350 | 138 | 3,762,273 | 0 | 3,784,761 |
Statement of changes in equity
| DKK 1,000 | Share capital | Net revaluation reserve under the equity method | Retained earnings | Proposed dividend etc. | Total share-holders’ equity |
| On 31 March 2017: Shareholders’ equity at the end of the previous financial year | 22,850 | 158 | 3,366,627 | 165,020 | 3,554,655 |
| Dividend etc. paid | -165,020 | -165,020 | |||
| Dividend received on own shares | 4,151 | 4,151 | |||
| Shareholders’ equity after distribution of dividend etc. | 22,850 | 158 | 3,370,778 | 0 | 3,393,786 |
| Purchase of own shares | -217,974 | -217,974 | |||
| Sale of own shares | 166,758 | 166,758 | |||
| Total comprehensive income for the period | 157,876 | 157,876 | |||
| Shareholders’ equity on the balance sheet date | 22,850 | 158 | 3,477,438 | 0 | 3,500,446 |
| On 31 December 2017: Shareholders’ equity at the end of the previous financial year | 22,850 | 158 | 3,366,627 | 165,020 | 3,554,655 |
| Reduction of share capital | -500 | 500 | 0 | ||
| Dividend etc. paid | -165,020 | -165,020 | |||
| Dividend received on own shares | 4,151 | 4,151 | |||
| Shareholders’ equity after distribution of dividend etc. | 22,350 | 158 | 3,371,278 | 0 | 3,393,786 |
| Purchase of own shares | -662,983 | -662,983 | |||
| Sale of own shares | 494,433 | 494,433 | |||
| Other equity transactions | 3,042 | 3,042 | |||
| Total comprehensive income for the year | -20 | 387,010 | 201,650 | 588,640 | |
| Shareholders’ equity on the balance sheet date | 22,350 | 138 | 3,592,780 | 201,650 | 3,816,918 |
Statement of capital
| 31 March 2018 DKK 1,000 | 31 March 2017 DKK 1,000 | 31 Dec. 2017 DKK 1,000 | |
Credit risk | 17,166,610 | 15,133,930 | 16,648,306 |
| Market risk | 1,035,977 | 1,183,863 | 1,169,580 |
| Operational risk | 1,890,456 | 1,827,053 | 1,890,456 |
| Total risk exposure | 20,093,043 | 18,144,846 | 19,708,342 |
| Equity | 3,784,761 | 3,500,446 | 3,816,918 |
| Proposed dividend etc. | 0 | 0 | -201,650 |
| Deduction for expected dividend | -77,254 | -44,390 | 0 |
| Addition for transition programme concerning IFRS 9 | 43,544 | 0 | 0 |
| Deduction for prudent valuation | -6,317 | -5,365 | -5,724 |
| Deduction for the sum of equity investments etc. above 10% | -300,825 | -297,375 | -308,194 |
| Deduction of the amount of the share buy-back programme | -170,000 | -170,000 | 0 |
| Actual utilisation of the amount of the share buy-back programme | 0 | 47,717 | 0 |
| Deduction for trading limit for own shares | -55,000 | -55,000 | -55,000 |
| Actual utilisation of the trading limit for own shares | 14,437 | 8,147 | 220 |
| Common equity tier 1 capital | 3,233,346 | 2,984,180 | 3,246,570 |
| Tier 1 capital | 3,233,346 | 2,984,180 | 3,246,570 |
| Tier 2 capital | 372,558 | 371,893 | 372,253 |
| Deduction for the sum of equity investments etc. above 10% | -72,942 | -107,466 | -104,494 |
| Total capital | 3,532,962 | 3,248,607 | 3,514,329 |
| Common equity tier 1 capital ratio (%) | 16.1 | 16.4 | 16.5 |
| Tier 1 capital ratio (%) | 16.1 | 16.4 | 16.5 |
| Total capital ratio (%) | 17.6 | 17.9 | 17.8 |
| Total capital requirement | 1,607,443 | 1,451,588 | 1,576,667 |
| Individual solvency requirement (%) | 9.0 | 9.0 | 9.0 |
| Capital conservation buffer (%) | 1.9 | 1.3 | 1.3 |
| Countercyclical buffer (%) | 0.0 | 0.0 | 0.0 |
| Total requirement for the bank’s total capital (%) | 10.9 | 10.3 | 10.3 |
| Excess cover in percentage points relative to individual solvency requirement | 8.6 | 8.9 | 8.8 |
| Excess cover in percentage points relative to total requirement for total capital | 6.7 | 7.6 | 7.5 |
Notes
| Note | Q1 2018 DKK 1,000 | Q1 2017 DKK 1,000 | Full year 2017 DKK 1,000 | |
| 1 | Interest income | |||
| Receivables from credit institutions and central banks | -2,075 | 2,450 | 710 | |
| Loans and other receivables | 175,608 | 172,297 | 687,492 | |
| Loans - interest on the impaired part of loans | -6,864 | -7,626 | -29,355 | |
| Bonds | 4,120 | 8,520 | 28,291 | |
| Total derivative financial instruments | 1,866 | 1,383 | 2,446 | |
| Of which currency contracts | 1,270 | 958 | 2,654 | |
| Of which interest-rate contracts | 596 | 425 | -208 | |
| Other interest income | 1,417 | 133 | 4,552 | |
| Total interest income | 174,072 | 177,157 | 694,136 | |
| 2 | Interest expenses | |||
| Credit institutions and central banks | 2,678 | 5,297 | 14,213 | |
| Deposits and other debt | 5,345 | 9,140 | 32,436 | |
| Issued bonds | 887 | 117 | 766 | |
| Subordinated debt | 1,370 | 1,367 | 5,651 | |
| Other interest expenses | 38 | 27 | 28 | |
| Total interest expenses | 10,318 | 15,948 | 53,094 | |
| 3 | Dividends from shares etc. | |||
| Shares | 852 | 567 | 10,258 | |
| Total dividends from shares etc. | 852 | 567 | 10,258 | |
| 4 | Gross fee and commission income | |||
| Securities trading | 24,243 | 21,202 | 75,038 | |
| Asset management and custody accounts | 19,858 | 16,527 | 93,203 | |
| Payment handling | 7,967 | 7,028 | 32,277 | |
| Loan fees | 3,206 | 1,760 | 10,660 | |
| Guarantee commission and mortgage credit commission etc. | 20,102 | 16,421 | 77,574 | |
| Other fees and commission | 14,915 | 13,493 | 33,965 | |
| Total gross fee and commission income | 90,291 | 76,431 | 322,717 | |
| Net fee and commission income | ||||
| Securities trading | 22,195 | 17,971 | 64,857 | |
| Asset management and custody accounts | 17,464 | 14,342 | 84,652 | |
| Payment handling | 5,359 | 5,174 | 21,989 | |
| Loan fees | 2,571 | 1,070 | 7,207 | |
| Guarantee commission and mortgage credit commission etc. | 20,102 | 16,421 | 77,574 | |
| Other fees and commission | 12,988 | 11,127 | 23,952 | |
| Total net fee and commission income | 80,679 | 66,105 | 280,231 | |
| Foreign exchange income | 4,516 | 5,230 | 20,902 | |
| Total net fee, commission and foreign exchange income | 85,195 | 71,335 | 301,133 | |
Notes
| Note | Q1 2018 DKK 1,000 | Q1 2017 DKK 1,000 | Full year 2017 DKK 1,000 | |
| 5 | Value adjustments | |||
| Other loans and receivables, fair value adjustment | 604 | 387 | 3,879 | |
| Bonds | -6,237 | 12,369 | 30,502 | |
| Shares etc. | 75,864 | 20,825 | 68,613 | |
| Foreign exchange | 4,516 | 5,230 | 20,902 | |
| Total derivative financial instruments | 8,680 | 9,918 | 19,329 | |
| Of which currency contracts | 7,425 | -3,625 | 467 | |
| Of which interest-rate contracts | 1,030 | 13,270 | 18,011 | |
| Of which share contracts | 225 | 273 | 851 | |
| Issued bonds | -3,528 | 0 | 0 | |
| Total value adjustments | 79,899 | 48,729 | 143,225 | |
| 6 | Staff and administration costs | |||
| Salaries and fees to general management, board of directors and shareholders’ committee | ||||
| General management | 1,801 | 1,730 | 7,356 | |
| Board of directors | 0 | 0 | 1,734 | |
| Shareholders’ committee | 0 | 0 | 469 | |
| Total | 1,801 | 1,730 | 9,559 | |
| Staff costs | ||||
| Salaries | 33,955 | 31,698 | 142,368 | |
| Pensions | 3,826 | 3,561 | 14,852 | |
| Social security expenses | 783 | 460 | 1,812 | |
| Costs depending on number of staff | 5,375 | 5,313 | 22,431 | |
| Total | 43,939 | 41,032 | 181,463 | |
| Other administration costs | 30,567 | 30,350 | 136,002 | |
| Total staff and administration costs | 76,307 | 73,112 | 327,024 | |
| 7 | Number of full-time employees | |||
| Average number of full-time-equivalent staff during the period | 277 | 271 | 274 | |
| 8 | Impairment charges for loans and other receivables etc. | |||
| Net changes in impairment charges for loans and other receivables etc and provisions for losses on guarantees and unutilised credit facilities | -19,246 | 12,646 | -6,094 | |
| Actual realised net losses | 559 | -48 | 45,769 | |
| Interest on the impaired part of loans | -6,864 | -7,626 | -29,355 | |
| Total impairment charges for loans and other receivables etc. | -25,551 | 4,972 | 10,320 | |
Notes
| Note | Q1 2018 DKK 1,000 | Q1 2017 DKK 1,000 | Full year 2017 DKK 1,000 | |
| 9 | Tax | |||
| Tax calculated on income for the period | 44,375 | 39,750 | 147,863 | |
| Adjustment of deferred tax | 0 | 0 | -566 | |
| Adjustment of tax calculated for previous years | 0 | 0 | -989 | |
| Total tax | 44,375 | 39,750 | 146,308 | |
| Effective tax rate (%): | ||||
| Tax rate currently paid by the bank | 22.0 | 22.0 | 22.0 | |
| Permanent deviations | -5.5 | -1.9 | -2.0 | |
| Adjustment of tax calculated for previous years | 0.0 | 0.0 | -0.1 | |
| Total effective tax rate | 16.5 | 20.1 | 19.9 | |
| Note | 31 March 2018 DKK 1,000 | 31 March 2017 DKK 1,000 | 31 Dec. 2017 DKK 1,000 | |
| 10 | Receivables from credit institutions and central banks | |||
| Demand | 156,552 | 140,898 | 100,211 | |
| Up to and including 3 months | 2,094,341 | 1,873,184 | 957,086 | |
| More than 3 months and up to and including 1 year | 100,000 | 0 | 99,280 | |
| More than 1 year and up to and including 5 years | 5,000 | 99,280 | 5,000 | |
| More than 5 years | 50,000 | 50,000 | 50,000 | |
| Total receivables from credit institutions and central banks | 2,405,893 | 2,163,362 | 1,211,577 | |
| 11 | Loans and other receivables at amortised cost | |||
| Demand | 1,825,353 | 1,803,107 | 1,975,218 | |
| Up to and including 3 months | 1,079,384 | 920,889 | 651,025 | |
| More than 3 months and up to and including 1 year | 2,172,390 | 2,098,764 | 2,568,864 | |
| More than 1 year and up to and including 5 years | 7,135,311 | 6,415,933 | 6,527,126 | |
| More than 5 years | 7,712,770 | 6,947,231 | 7,628,633 | |
| Total loans and other receivables at amortised cost | 19,925,208 | 18,185,924 | 19,350,866 | |
Notes
| Note | 31 March 2018 DKK 1,000 | 31 March 2017 DKK 1,000 | 31 Dec. 2017 DKK 1,000 | |
| 12 | Impairment charges for loans and other receivables and provisions for losses on guarantees and unutilised credit facilities | |||
| Individual impairment charges | ||||
| Cumulative individual impairment charges at the end of the previous financial year | 577,490 | 589,384 | 589,384 | |
| Changed accounting policy for impairment charges | -577,490 | |||
| Impairment charges / value adjustments during the period | 0 | 49,552 | 179,150 | |
| Reversal of impairment charges made in previous financial years | 0 | -38,212 | -136,853 | |
| Recognised as a loss, covered by impairment charges | 0 | -1,258 | -54,191 | |
| Cumulative individual impairment charges on the balance sheet date | 0 | 599,466 | 577,490 | |
| Collective impairment charges | ||||
| Cumulative collective impairment charges at the end of the previous financial year | 343,282 | 341,457 | 341,457 | |
| Changed accounting policy for impairment charges | -343,282 | |||
| Impairment charges / value adjustments during the period | 0 | 1,045 | 1,825 | |
| Cumulative collective impairment charges on the balance sheet date | 0 | 342,502 | 343,282 | |
| Stage 1 impairment charges | ||||
| Cumulative stage 1 impairment charges at the end of the previous financial year | 0 | - | - | |
| Changed accounting policy for impairment charges | 61,228 | - | - | |
| Stage 1 impairment charges / value adjustment during the period | 2,434 | - | - | |
| Cumulative stage 1 impairment charges on the balance sheet date | 63,662 | - | - | |
| Stage 2 impairment charges | ||||
| Cumulative stage 2 impairment charges at the end of the previous financial year | 0 | - | - | |
| Changed accounting policy for impairment charges | 308,912 | - | - | |
| Stage 2 impairment charges / value adjustment during the period | -1,305 | - | - | |
| Cumulative stage 2 impairment charges on the balance sheet date | 307,607 | - | - | |
| Stage 3 impairment charges | ||||
| Cumulative stage 3 impairment charges at the end of the previous financial year | 0 | - | - | |
| Changed accounting policy for impairment charges | 575,516 | - | - | |
| Stage 3 impairment charges / value adjustment during the period | 38,638 | - | - | |
| Reversal of stage 3 impairment charges during the period | -54,657 | - | - | |
| Recognised as a loss, covered by stage 3 impairment charges | -1,372 | - | - | |
| Cumulative stage 3 impairment charges on the balance sheet date | 558,125 | - | - | |
| Total cumulative impairment charges for loans and other receivables on the balance sheet date | 929,394 | 941,968 | 920,772 | |
Notes
| Note | 31 March 2018 DKK 1,000 | 31 March 2017 DKK 1,000 | 31 Dec. 2017 DKK 1,000 | |
| 12 | Provisions for losses on guarantees | |||
| Cumulative provisions for losses on guarantees at the end of the previous financial year | 10,263 | 6,287 | 6,287 | |
| Changed accounting policy for provisions for losses on guarantees | 20,881 | |||
| Provisions / value adjustments during the period | 6,101 | 2,534 | 7,385 | |
| Reversal of provisions made in previous financial years | -8,476 | -1,013 | -2,095 | |
| Recognised as a loss, covered by provisions | -1,451 | -2 | -1,314 | |
| Cumulative provisions for losses on guarantees on the balance sheet date | 27,318 | 7,806 | 10,263 | |
| Provisions for losses on unutilised credit facilities | ||||
| Cumulative provisions for losses on unutilised credit facilities at the end of the previous financial year | 0 | - | - | |
| Changed accounting policy for provisions for losses on unutilised credit facilities | 12,996 | - | - | |
| Provisions / value adjustments during the period | 844 | - | - | |
| Cumulative provisions for losses on unutilised credit facilities on the balance sheet date | 13,840 | - | - | |
| Total cumulative impairment charges for loans and other receivables and provisions for losses on guarantees and unutilised credit facilities on the balance sheet date | 970,552 | 949,774 | 931,035 | |
| 13 | Suspended calculation of interest | |||
| Loans and other receivables with suspended calculation of interest on the balance sheet date | 22,425 | 55,963 | 24,995 | |
| 14 | Bonds at fair value | |||
| Listed on the stock exchange | 3,292,737 | 2,801,094 | 3,952,614 | |
| Total bonds at fair value | 3,292,737 | 2,801,094 | 3,952,614 | |
| 15 | Shares etc. | |||
| Listed on Nasdaq Copenhagen | 24,373 | 16,463 | 12,233 | |
| Investment fund certificates | 16,793 | 148,096 | 7,994 | |
| Unlisted shares at fair value | 1,402 | 1,437 | 1,402 | |
| Sector shares at fair value | 671,945 | 429,894 | 599,656 | |
| Total shares etc. | 714,513 | 595,890 | 621,285 | |
Notes
| Note | 31 March 2018 DKK 1,000 | 31 March 2017 DKK 1,000 | 31 Dec. 2017 DKK 1,000 | |
| 16 | Debt to credit institutions and central banks | |||
| Demand | 229,540 | 251,286 | 269,160 | |
| Up to and including 3 months | 527,926 | 95,476 | 240,993 | |
| More than 3 months and up to and including 1 year | 127,347 | 133,171 | 97,329 | |
| More than 1 year and up to and including 5 years | 629,363 | 630,929 | 604,614 | |
| More than 5 years | 368,082 | 334,631 | 387,320 | |
| Total debt to credit institutions and central banks | 1,882,258 | 1,445,493 | 1,599,416 | |
| 17 | Deposits and other debt | |||
| Demand | 12,593,496 | 12,139,398 | 12,267,337 | |
| Deposits and other debt with notice: | ||||
| Up to and including 3 months | 1,726,408 | 1,886,928 | 2,646,787 | |
| More than 3 months and up to and including 1 year | 1,899,738 | 1,461,255 | 908,429 | |
| More than 1 year and up to and including 5 years | 1,433,666 | 1,547,668 | 1,468,246 | |
| More than 5 years | 1,857,438 | 1,529,266 | 1,819,328 | |
| Total deposits and other debt | 19,510,746 | 18,564,515 | 19,110,127 | |
| Distributed as follows: | ||||
| Demand | 12,533,645 | 11,965,010 | 12,129,959 | |
| With notice | 1,806,678 | 301,725 | 1,785,363 | |
| Time deposits | 1,592,908 | 3,083,319 | 1,725,906 | |
| Long-term deposit agreements | 2,151,443 | 1,874,437 | 2,008,385 | |
| Special types of deposits | 1,426,072 | 1,340,024 | 1,460,514 | |
| 19,510,746 | 18,564,515 | 19,110,127 | ||
| 18 | Issued bonds at amortised cost | |||
| More than 3 months and up to and including 1 year | 298,046 | 0 | 297,802 | |
| More than 1 year and up to and including 5 years | 748,102 | 297,514 | 375,634 | |
| More than 5 years | 151,791 | 0 | 0 | |
| Total issued bonds at amortised cost | 1,197,939 | 297,514 | 673,436 | |
| 19 | Subordinated debt | |||
| Tier 2 capital: | ||||
| Floating-rate loan, principal of EUR 50 million, | 372,558 | 371,893 | 372,253 | |
| maturity date 20 May 2025 | ||||
| Adjustment to amortised cost | -500 | -618 | -500 | |
| Total subordinated debt | 372,058 | 371,275 | 371,753 | |
Notes
| Note | 31 March 2018 DKK 1,000 | 31 March 2017 DKK 1,000 | 31 Dec. 2017 DKK 1,000 | |
| 20 | Share capital | |||
| Number of DKK 1 shares | ||||
| Beginning of period | 22,350,000 | 22,850,000 | 22,850,000 | |
| Cancelled during the period | 0 | 0 | -500,000 | |
| End of period | 22,350,000 | 22,850,000 | 22,350,000 | |
| Reserved for the adopted capital reduction | 538,000 | 500,000 | 0 | |
| Reserved for subsequent cancellation | 0 | 160,000 | 538,000 | |
| Total share capital | 22,350 | 22,850 | 22,350 | |
| 21 | Own shares | |||
| Own shares included in the balance sheet at | 0 | 0 | 0 | |
| The market value is | 193,053 | 212,357 | 173,187 | |
| Number of own shares: | ||||
| Beginning of period | 538,685 | 515,890 | 515,890 | |
| Purchased during the period | 223,672 | 568,450 | 1,444,027 | |
| Sold during the period | -180,873 | -397,100 | -921,232 | |
| Cancelled during the period | 0 | 0 | -500,000 | |
| End of period | 581,484 | 687,240 | 538,685 | |
| Reserved for the adopted capital reduction | 538,000 | 500,000 | 0 | |
| Reserved for subsequent cancellation | 0 | 160,000 | 538,000 | |
| Nominal value of holding of own shares, end of period | 581 | 687 | 539 | |
| Own shares’ proportion of share capital, end of period (%) | 2.6 | 3.0 | 2.4 | |
| 22 | Contingent liabilities etc. | |||
| Contingent liabilities | ||||
| Financial guarantees | 1,113,237 | 1,038,166 | 1,101,189 | |
| Guarantees against losses on mortgage credit loans | 669,332 | 527,582 | 633,796 | |
| Registration and refinancing guarantees | 857,774 | 557,609 | 969,390 | |
| Sector guarantees | 65,913 | 60,451 | 75,892 | |
| Other contingent liabilities | 369,623 | 300,316 | 403,607 | |
| Total contingent liabilities | 3,075,879 | 2,484,124 | 3,183,874 | |
| Other contractual obligations | ||||
| Irrevocable credit commitments etc. | 110,000 | 123,900 | 392,000 | |
| Total other contractual obligations | 110,000 | 123,900 | 392,000 | |
| 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 reduction of the first-mortgage loans is deducted directly from the funding at KfW Bankengruppe. | ||||
| The balance sheet item is | 922,505 | 952,477 | 976,617 | |
| 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 | 173,620 | 114,471 | 235,418 | |
| Collateral under CSA agreements etc. | 25,552 | 32,304 | 31,609 | |
Notes
| Note | 31 March 2018 | 31 March 2017 | 31 Dec. 2017 | |
| 24 | Loans and guarantees in per cent, by sector and industry | |||
| Public authorities | 0.1 | 0.2 | 0.1 | |
| Business customers: | ||||
| Agriculture, hunting and forestry | ||||
| Cattle farming etc. | 1.8 | 1.1 | 1.7 | |
| Pig farming etc. | 1.5 | 1.7 | 1.7 | |
| Other agriculture, hunting and forestry | 3.6 | 4.0 | 3.9 | |
| Fishing | 2.5 | 2.8 | 2.4 | |
| Mink production | 0.8 | 0.9 | 1.0 | |
| Industry and raw materials extraction | 1.8 | 2.5 | 1.6 | |
| Energy supply | 2.6 | 2.0 | 1.7 | |
| Wind turbines - Denmark | 3.1 | 3.2 | 2.9 | |
| Wind turbines - abroad | 7.6 | 9.3 | 8.1 | |
| Building and construction | 3.2 | 2.2 | 4.3 | |
| Trade | 3.3 | 3.3 | 3.3 | |
| Transport, hotels and restaurants | 1.3 | 1.5 | 1.4 | |
| Information and communication | 0.3 | 0.2 | 0.3 | |
| Finance and insurance | 12.8 | 13.5 | 13.6 | |
| Real property | ||||
| First mortgage without prior creditors | 16.2 | 14.0 | 13.5 | |
| Other real estate financing | 2.3 | 3.6 | 2.7 | |
| Other business customers | 7.0 | 6.5 | 7.1 | |
| Total business customers | 71.7 | 72.3 | 71.2 | |
| Private individuals | 28.2 | 27.5 | 28.7 | |
| Total | 100.0 | 100.0 | 100.0 | |
| 25 | Miscellaneous comments Main and key figures
Number of shares / share split
| |||
Main figures
| Summary of the income statement (DKK million) | Q1 2018 | Q1 2017 | Full year 2017 |
| Net interest income | 164 | 161 | 641 |
| Dividend from shares etc. | 1 | 1 | 10 |
| Net fee and commission income | 80 | 66 | 280 |
| Net interest and fee income | 245 | 228 | 931 |
| Value adjustments | +80 | +49 | +143 |
| Other operating income | 1 | 1 | 5 |
| Staff and administration costs | 76 | 73 | 327 |
| Amortisation, depreciation and write-downs on intangible and tangible assets | 6 | 1 | 4 |
| Other operating expenses | 1 | 1 | 3 |
| Impairment charges for loans and receivables etc. | +26 | -5 | -10 |
| Results from investments in associated companies | 0 | 0 | 0 |
| Profit before tax | 269 | 198 | 735 |
| Tax | 45 | 40 | 146 |
| Profit after tax | 224 | 158 | 589 |
| Main figures from the balance sheet (DKK million) | 31 March 2018 | 31 March 2017 | 31 Dec. 2017 |
| Loans and other receivables | 19,925 | 18,186 | 19,351 |
| Deposits and other debt | 19,511 | 18,565 | 19,110 |
| Subordinated debt | 372 | 371 | 372 |
| Equity | 3,785 | 3,500 | 3,817 |
| Balance sheet total | 27,004 | 24,441 | 25,796 |
Quarterly overview
| (DKK million) | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 | Q4 2016 | Q3 2016 | Q2 2016 | Q1 2016 |
| Net interest income | 167 | 165 | 158 | 159 | 161 | 165 | 169 | 165 | 166 |
| Net fee and commission income excluding trading income | 58 | 52 | 48 | 67 | 48 | 70 | 44 | 52 | 48 |
| Income from sector shares etc. | 21 | 19 | 18 | 17 | 17 | 9 | 4 | 15 | 11 |
| Foreign exchange income | 5 | 5 | 5 | 5 | 6 | 4 | 4 | 4 | 4 |
| Other operating income | 1 | 1 | 1 | 2 | 1 | 4 | 2 | 1 | 1 |
| Total core income excluding trading income | 252 | 242 | 230 | 250 | 233 | 252 | 223 | 237 | 230 |
| Trading income | 22 | 13 | 18 | 15 | 18 | 10 | 11 | 11 | 9 |
| Total core income | 274 | 255 | 248 | 265 | 251 | 262 | 234 | 248 | 239 |
| Staff and administration costs | 76 | 98 | 75 | 81 | 73 | 92 | 72 | 74 | 69 |
| Amortisation, depreciation and write-downs on intangible and tangible assets | 6 | 1 | 1 | 1 | 1 | 2 | 2 | 4 | 1 |
| Other operating expenses | 1 | 1 | 0 | 1 | 1 | 0 | 1 | 0 | 1 |
| Total expenses etc. | 83 | 100 | 76 | 83 | 75 | 94 | 75 | 78 | 71 |
| Core earnings before impairment charges for loans | 191 | 155 | 172 | 182 | 176 | 168 | 159 | 170 | 168 |
| Impairment charges for loans and other receivables etc. | +26 | 0 | 0 | -5 | -5 | -12 | -12 | -13 | -11 |
| Core earnings | 217 | 155 | 172 | 177 | 171 | 156 | 147 | 157 | 157 |
| Result for the portfolio | +52 | 0 | +17 | +16 | +27 | +8 | +23 | +11 | +2 |
| Profit before tax | 269 | 155 | 189 | 193 | 198 | 164 | 170 | 168 | 159 |
| Tax | 45 | 29 | 38 | 39 | 40 | 31 | 33 | 30 | 28 |
| Profit after tax | 224 | 126 | 151 | 154 | 158 | 133 | 137 | 138 | 131 |
The Danish FSA’s official key figures / ratios etc. for Danish banks
| Q1 2018 | Q1 2017 | Full year 2017 | ||
| Capital ratios: | ||||
| Total capital ratio | % | 17.6 | 16.4 | 17.8 |
| Tier 1 capital ratio | % | 16.1 | 16.4 | 16.5 |
| Individual solvency requirement | % | 9.0 | 9.0 | 9.0 |
| Earnings: | ||||
| Return on equity before tax | % | 7.1 | 5.6 | 19.9 |
| Return on equity after tax | % | 5.9 | 4.5 | 16.0 |
| Income / cost ratio | DKK | 5.68 | 3.48 | 3.13 |
| Return on assets | % | 0.8 | 0.6 | 2.3 |
| Market risk: | ||||
| Interest rate risk | % | 0.9 | 0.8 | 1.1 |
| Foreign exchange position | % | 1.8 | 0.8 | 1.1 |
| Foreign exchange risk | % | 0.0 | 0.0 | 0.0 |
| Liquidity risk: | ||||
| Liquidity Coverage Ratio (LCR) | % | 256 | 160 | 193 |
| Excess cover relative to statutory liquidity requirement | % | 130.3 | 130.3 | 113.5 |
| Loans and impairments thereon relative to deposits | % | 105.0 | 103.0 | 106.1 |
| Credit risk: | ||||
| Loans relative to shareholders’ equity | 5.3 | 5.2 | 5.1 | |
| Growth in loans | % | 3.0 | 4.0 | 10.7 |
| Total large exposures | % | 22.1 | 30.3 | 22.5 |
| Cumulative impairment ratio | % | 4.0 | 4.4 | 4.0 |
| Impairment ratio | % | -0.11 | 0.02 | 0.04 |
| Proportion of receivables at reduced interest | % | 0.1 | 0.3 | 0.1 |
| Share return: | ||||
| Earnings per share*/*** | DKK | 1,004.1 | 690.9 | 2,604.6 |
| Book value per share*/** | DKK | 17,386 | 15,794 | 17,500 |
| Dividend per share* | DKK | 0 | 0 | 900 |
| Market price relative to earnings per share*/*** | 33.1 | 44.7 | 12.3 | |
| Market price relative to book value per share*/** | 1.91 | 1.96 | 1.84 | |
| * Calculated on the basis of a denomination of DKK 100 per share. ** Calculated on the basis of the number of shares in circulation 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 and the end of the period. | ||||
Management statement
The board of directors and the general management have today discussed and approved the quarterly report of Ringkjøbing Landbobank A/S for the period 1 January to 31 March 2018.
The report is drawn up in accordance with the provisions of the Danish Financial Business Act and other Danish disclosure requirements for listed financial companies. We consider the chosen accounting policies to be appropriate and the estimates made responsible, so that the quarterly report provides a true and fair view of the bank’s assets, liabilities and financial position as of 31 March 2018 and of the result of the bank’s activities for the period 1 January to 31 March 2018. We also believe that the management’s review contains a true and fair account of the development in the bank’s activities and financial circumstances as well as a description of the most important risks and uncertainties which can affect the bank.
The quarterly report has not been audited or reviewed, but the external auditors have verified the profit by carrying out procedures corresponding to those required for a review and have thereby checked that the conditions for ongoing recognition of the profit for the period in the common equity tier 1 capital have been met.
Ringkøbing, 10 April 2018
| General management: | ||
| John Fisker CEO | Jørn Nielsen General Manager | |
| Board of directors: | ||
| Martin Krogh Pedersen Chairman | Jens Møller Nielsen Deputy Chairman | |
| Jon Steingrim Johnsen | Jacob Møller | |
| Lone Rejkjær Söllmann | ||
| Dan Junker Astrup Employee board member | Bo Fuglsang Bennedsgaard Employee board member | |
| Gitte E. S. H. Vigsø Employee board member | ||
Attachment
