• Core income ended at DKK 748 million, up 17% on Q1 2012: 17% growth in net interest income,
29% growth in net income from fees, charges and commissions and a 3% drop in market-value adjustments. Growth in core income is driven primarily by the larger business volume after the merger with Sparbank.
• Costs ended at DKK 427 million - 14% up on Q1 2012, but slightly lower than expected.
The cost/income ratio improved to 0.57.
• Core earnings before impairment thus ended at DKK 321 million - 21% up on Q1 2012.
• Loan impairment amounted to DKK 109 million, equal to an impairment ratio of 1% p.a. - in line with expectations.
• Solid capital and cash position: The Common Equity (Tier 1) ratio stood at 12.8%, the excess coverage relative to the solvency need ratio amounted to 6.1% (DKK 2.7 billion) and the excess cash coverage to DKK 16.7 billion.
• Since the merger with Sparbank in Q4 2012, the integration process has been progressing very satisfactorily: Synergies and non-recurring costs are still expected to be realized at the levels announced in connection with the merger.
• Contributions from discontinuing activities (leasing) of DKK 10 million - better than expected.
• The forecasts for full-year core earnings before impairment and non-recurring costs have been maintained at DKK 1,000-1,100 million. Impairment of loans and advances is still expected to end at around 1% of total loans, advances and guarantees.
| DKK m | Q1 2013 | Q4 2012 | Change in % | Q1 2012 | Change in % |
| Net interest income | 451 | 414 | 9 | 386 | 17 |
| Net income from fees, charges and commissions | 196 | 138 | 42 | 152 | 29 |
| Core income | 748 | 630 | 19 | 638 | 17 |
| Costs | 427 | 427 | 0 | 373 | 14 |
| Core earnings before impairment | 321 | 203 | 58 | 265 | 21 |
| Impairment of loans and adv., etc. | 109 | 156 | -30 | 106 | 3 |
| Core earnings | 213 | 48 | - | 159 | 34 |
| Contrib. to sector-wide solutions | -31 | -14 | - | -19 | 64 |
| Profit/loss before tax | 193 | 5 | - | 144 | 34 |
Lasse Nyby, Chief Executive Officer, has the following comments on the financial statements:
- The financial statements just published bear witness to our best first quarter since 2007 - and, in- cidentally, this is our best quarterly performance in 24 quarters. The promising results are greatly due to the highly satisfactory integration of Sparbank, which accounts for the respectable growth we are experiencing in an otherwise challenging market. When we look at the individual lines in the financial statements, we are particularly pleased to see growth in the activity-dependent income and a drop in impairment. Among the challenges we are facing, the sustained low growth in the Danish economy - and thus the pressure on lending volume - gives the greatest cause for concern. Unquestionably, however, the story that the interim financial statements tell is mainly positive: We are recording substantial income growth, keeping tight reins on costs, seeing impairment decline and holding a particularly strong capital and cash position.
For further information, please contact: Ole Madsen, Senior Vice President, tel. +45 9634 4010
Spar Nord Bank A/S, Skelagervej 15, P. O. Box 162, DK-9100 Aalborg, Reg. no. 9380
Tel. +45 9634 4000 - Fax +45 9634 4560 - Swift spno dk 22 - www.sparnord.dk - sparnord@sparnord.dk - CVR no. 13 73 75 84
