Copenhagen, 2012-02-28 08:33 CET (GLOBE NEWSWIRE) --
Highlights
- The bank posted a loss of DKK 160 million before losses and writedowns in 2011, against an expected loss of around DKK 155 million.
- The loss was primarily attributable to the turmoil in the financial markets and to a capital loss on illiquid shares acquired in connection with the winding up of a number of exposures. The performance was highly unsatisfactory but in line with the most recent guidance.
- Total impairment writedowns on loans, including credit losses and writedowns on mortgage deeds, amounted to DKK 994 million.
- Approximately DKK 400 million of the impairment writedowns made in the fourth quarter were, however, attributable to a changed methodology. The method used is expected to comply with the Danish Financial Supervisory Authority’s future method of calculation. The bank had already reserved capital in its solvency need with a view to countering this development and, as a result, this had a limited effect on the bank's overall capital.
- The bank posted a pre-tax loss of DKK 1,154 million.
- At 31 December 2011, the bank had excess liquidity of DKK 6.4 billion, equivalent to an excess cover of 327%.
- Alm. Brand A/S today contributed DKK 300 million of equity to Alm. Brand Bank A/S.
- In 2012, the bank expects to record a profit of around DKK 10 million before tax and before writedowns and credit losses on mortgage deeds.
Other highlights
- The bank’s net interest income fell to DKK 361 million in 2011 from DKK 538 million in 2010. The decline was attributable to a combination of lower interest income from lending caused by a decline in total loans and advances and a general increase in funding costs.
- Impairment writedowns on loans amounted to DKK 768 million, while credit losses and writedowns on the bank’s mortgage deed portfolio totalled DKK 226 million. Accordingly, total losses and writedowns amounted to DKK 994 million in 2011.
- Interest-related value adjustments, excluding credit losses and writedowns on mortgage deeds, totalled a loss of DKK 90 million in 2011. The capital loss was, among other things, due to the fact that the bank had taken positions in anticipation of rising interest rates in the second quarter and in the first half of the third quarter.
- Equity-related value adjustments amounted to a loss of DKK 77 million in 2011. Included in this amount was a DKK 42 million loss on illiquid shares acquired in connection with the winding up of a number of exposures. The market value of the illiquid shares was DKK 137 million at 31 December 2011.
- The bank’s staff costs and administrative expenses totalled DKK 458 million in 2011, against DKK 506 million in 2010. The decline was partly attributable to the new strategy defined in 2009.
- At 31 December 2011, the bank's total capital base stood at DKK 2 billion, and the solvency ratio was 16.8. After the injection of DKK 300 million in equity, the solvency would, all other things being equal, have totalled 19.4% at 31 December 2011.
- The bank's individual solvency need was calculated at 15.4%.
Please direct any questions regarding this announcement to Kim Bai Wadstrøm, Chief Executive, on tel. +45 35 47 70 14 or Susanne Biltoft, Head of Information and Investor Relations, on tel. +45 35 47 76 61.
