Alm. Brand Pantebreve A/S downgrades its full-year profit guidance to
break-even. The original guidance, most recently announced in connection with
the release of the interim report for the first three months of 2008, was for a
DKK 28m profit.
The downgrade is due to a coincidence of several factors, all of which had an
adverse effect on the company's performance.
One reason was the increase in interest rates which had a negative influence on
the market value of the mortgage deed portfolio and entailed higher funding
costs. Another reason was the company's assessment that it had to take a
writedown of mortgage deeds with a high risk of loss.
The losses on mortgage deeds totalled DKK 4.2m in H1 2008, equal to 0.5% of the
portfolio on an annualised basis. The losses are within the budgeted limits.
The company's interim report for the first half-year of 2008 will be released
on 19 August 2008. The report will contain a detailed account of the
developments of the first six months of the year and explain the forecast for
the full year 2008 as well as for the longer term. However, the company retains
its long-term goal of achieving a return on equity of 10.5% p.a. before tax.
Please direct any questions regarding the announcement to Erik Møller, Senior
Vice President, or to Henrik Nordam, Chairman, on tel. +45 35 47 48 49.
Yours sincerely,
Alm. Brand Pantebreve A/S
Henrik Nordam
Chairman
