Nasdaq Copenhagen
London Stock Exchange
Other stakeholders
1 May 2019
Ringkjøbing Landbobank’s report for the first quarter of 2019
The merger of Ringkjøbing Landbobank and Nordjyske Bank is progressing well and the IT conversion was completed successfully in March. The last of the major operational risks involved in the merger was thus eliminated.
Financial results are also developing as expected with a 4% increase in core income and a 6% fall in total expenses. Core earnings are above budget for the quarter.
Core earnings - pro forma
(DKK million) | Q1 2019 | Q1 2018 | 2018 | 2017 | 2016 |
Total core income | 526 | 506 | 2,001 | 1,917 | 1,861 |
Total expenses and depreciation | -201 | -215 | -866 | -845 | -815 |
Core earnings before impairment charges for loans | 325 | 291 | 1,135 | 1,072 | 1,046 |
Impairment charges for loans etc. | -25 | +13 | -43 | -70 | -211 |
Core earnings | 300 | 304 | 1,092 | 1,002 | 835 |
Result for the portfolio etc. | +26 | +90 | +77 | +84 | +78 |
Profit before special costs | 326 | 394 | 1,169 | 1,086 | 913 |
Profit before tax | 322 | 385 | 952 | 1,064 | 891 |
Highlights of the first quarter of 2019
- The financial statements show an increase of 4% in core income to DKK 526 million
- Expenses fell by 6% to DKK 201 million and the rate of costs was 38.2
- Core earnings were DKK 300 million after impairment charges of DKK 25 million, which is above the budget for the quarter
- The return on equity before tax was 18.1% p.a.
- Continued big increase in customers and 8% growth in loans to DKK 34.2 billion
- Successful completion of IT conversion in March
- The bank’s A1 rating by Moody’s was given positive outlook
Yours sincerely
Ringkjøbing Landbobank
John Fisker
Management’s review
This quarterly report contains both official financial statements and pro forma financial statements. The latter are part of the management's review.
The official financial statements contain both an income statement and core earnings. They comprise figures for the first quarter of 2019 for the merged entity, for the first quarter of 2018 for the “old” Ringkjøbing Landbobank only and, finally, financial figures for the “old” Ringkjøbing Landbobank for the full year 2018 and for the “old” Nordjyske Bank for the period 9 June to 31 December 2018.
The pro forma financial statements contain core earnings comprising figures for the merged entity for the first quarter of 2019 (identical with the core earnings in the official financial statements) and for the full year 2018 for both the “old” Ringkjøbing Landbobank and the “old” Nordjyske Bank for the period 1 January to 31 December 2018, i.e. as if the merger had taken effect on 1 January 2018. The pro forma statements show the non-recurring and merger costs etc. in both banks as separate items.
The pro forma statements have been prepared to give the reader a better overview of the development in the bank’s profit and its financial position. The pro forma statements also contain comparative quarterly figures for 2017 and 2018.
Pro forma financial statements
Core income
Net interest income was DKK 291 million in the first quarter of 2019 compared to DKK 287 million in 2018, an increase of 2%. The bank is satisfied with this development, which included an 8% increase in loans compared to end first quarter last year. Relative to 2018, there were new interest expenses for the subordinated capital issued in June 2018 and for the issued non-preferred senior capital.
Fee, commission and foreign exchange income amounted to DKK 197 million net in the first quarter of 2019, compared to DKK 180 million net in 2018, an increase of 9%. Relative to last year, the fee income from “Securities trading” in particular developed positively.
Earnings of DKK 37 million from sector shares in the quarter remained at an unchanged level relative to 2018. The earnings derive primarily from returns on the bank’s ownership interests in DLR Kredit, BankInvest (BI Holding) and PRAS.
Total core income increased by 4% from DKK 506 million in 2018 to DKK 526 million in 2019. The bank considers the increase satisfactory.
Expenses, depreciation and write-downs
Total expenses including depreciation and write-downs on tangible assets amounted to DKK 201 million in the first quarter of 2019, compared to DKK 215 million in 2018, a fall of 6%. The first quarter of 2018 included a non-recurrent write-down on property of DKK 5 million and after the appropriate adjustment for this, the fall was 4%.
The rate of costs was 38.2% in the first quarter of 2019, compared to 42.4% in the first quarter of 2018.
Impairment charges for loans etc.
Impairment charges for loans represented an expense of DKK 25 million in the first quarter of 2019, compared to an income item of DKK 13 million in 2018.
During the first quarter of 2018, the Danish FSA carried out a “major” inspection with a satisfactory result. The bank in that connection identified reversals of impairment charges on the basis of improved credit quality in certain exposures, which was the reason for the above-mentioned income in the first quarter of 2018.
In the first quarter of 2019, impairment charges amounted to 0.23% of the gross total average of loans and guarantees in 2019. Impairment charges for the quarter are thus on a par with the fourth quarter of 2018.
Core earnings
(DKK million) | Q1 2019 | Q1 2018 | 2018 | 2017 | 2016 |
Total core income | 526 | 506 | 2,001 | 1,917 | 1,861 |
Total expenses and depreciation | -201 | -215 | -866 | -845 | -815 |
Core earnings before impairment charges for loans | 325 | 291 | 1,135 | 1,072 | 1,046 |
Impairment charges for loans etc. | -25 | +13 | -43 | -70 | -211 |
Core earnings | 300 | 304 | 1,092 | 1,002 | 835 |
Core earnings totalled DKK 300 million in the quarter compared to last year’s DKK 304 million, a fall of 1%. Core earnings per share were thus DKK 10.1 for the first quarter of 2019 compared to DKK 9.8 in 2018, an increase of 3%.
Result for the portfolio etc.
The result for the portfolio etc. for the first quarter of 2019 was positive by DKK 26 million net, including funding costs for the portfolio. In comparison, the result for the portfolio etc. for the first quarter of 2018 was positive by DKK 90 million. DKK 104 million was attributable to the revaluation of the bank’s ownership interest in BI Holding.
The result for the portfolio in 2019 was positively affected by developments on the financial markets, with falling interest rates and narrowing credit spread.
Profit before special costs
The profit before special costs was DKK 326 million for the first quarter of 2019 compared to DKK 394 million for the first quarter of 2018.
Special costs
The bank considers amortisation and write-downs on intangible assets to be a special item. Posting amortisation and write-downs to this item enhances the quality of equity and helps to reduce the deduction when computing total capital. Amortisation and write-downs on intangible assets amounted to DKK 4 million in the first quarter of 2019, compared to DKK 6 million in 2018.
The payment of merger and restructuring costs as well as non-recurring costs ended in 2018 and the bank expects no such costs during 2019.
Profit before and after tax
The profit before tax was DKK 322 million, equivalent to a return of 18.1% p.a. on average equity. Adjusted for intangible assets, the return on average equity was 21.5% p.a.
The profit after tax was DKK 259 million, equivalent to a return of 14.5% p.a. on average equity.
Balance sheet items and contingent liabilities
The bank’s balance sheet total at the end of March 2019 stood at DKK 50,266 million, compared to DKK 47,349 million at the end of March 2018.
The bank’s deposits including pooled schemes increased by 3% relative to 2018: from DKK 36,307 million at the end of March 2018 to DKK 37,439 million at the end of March 2019. The bank’s loans increased by 8%: from DKK 31,647 million at the end of March 2018 to DKK 34,195 million at the end of March 2019.
The positive development in lending from 2018 in both the “old” Ringkjøbing Landbobank and the “old” Nordjyske Bank is continuing in 2019. In 2019, the bank has thus seen a continued highly satisfactory inflow of new customers and a low outflow of customers.
The bank’s contingent liabilities, including guarantees, at the end of the quarter amounted to DKK 7,976 million, compared to DKK 7,821 million at the end of March 2018.
Credit intermediation
In addition to the traditional bank loans shown on the bank’s balance sheet, the bank also arranges mortgage loans for both Totalkredit and DLR Kredit.
The development in the bank’s total credit intermediation is shown in the following summary:
Total credit intermediation | 31 March 2019 DKK million | 31 March 2018 DKK million | 31 Dec. 2018 DKK million |
Loans and other receivables at amortised cost | 34,195 | 31,647 | 33,350 |
Arranged mortgage loans and funded home loans - Totalkredit | 33,377 | 31,522 | 32,905 |
Arranged mortgage loans - DLR Kredit | 8,730 | 7,981 | 8,693 |
Total | 76,302 | 71,150 | 74,948 |
Pro forma financial statements
Core earnings
Note | Q1 2019 DKK 1,000 | Q1 2018 DKK 1,000 | Full year 2018 DKK 1,000 | |
Net interest income | 291,248 | 286,704 | 1,147,483 | |
A | Net fee and commission income excluding securities trading | 150,046 | 145,648 | 568,551 |
Income from sector shares | 36,697 | 37,822 | 160,316 | |
A | Foreign exchange income | 5,796 | 6,570 | 30,559 |
Other operating income | 1,326 | 1,182 | 6,223 | |
Total core income excluding securities trading | 485,113 | 477,926 | 1,913,132 | |
A | Securities trading | 41,086 | 28,098 | 87,664 |
Total core income | 526,199 | 506,024 | 2,000,796 | |
B | Staff and administration costs | 198,313 | 206,096 | 846,507 |
Depreciation and write-downs on tangible assets | 2,251 | 7,547 | 15,871 | |
Other operating expenses | 364 | 1,079 | 3,399 | |
Total expenses etc. | 200,928 | 214,722 | 865,777 | |
Core earnings before impairment charges for loans | 325,271 | 291,302 | 1,135,019 | |
Impairment charges for loans and other receivables etc. | -24,899 | +12,760 | -43,118 | |
Core earnings | 300,372 | 304,062 | 1,091,901 | |
Result for the portfolio etc. | +25,528 | +89,691 | +77,267 | |
Profit before special costs | 325,900 | 393,753 | 1,169,168 | |
Amortisation and write-downs on intangible assets | 3,750 | 5,507 | 25,140 | |
Merger and restructuring costs | 0 | 3,500 | 121,688 | |
Non-recurring costs | 0 | - | 70,362 | |
Profit before tax | 322,150 | 384,746 | 951,978 | |
Tax | 63,166 | 58,338 | 173,786 | |
Net profit for the period | 258,984 | 326,408 | 778,192 |
Balance sheet items and contingent liabilities
31 March 2019 DKK 1,000 | 31 March 2018 DKK 1,000 | 31 Dec. 2018 DKK 1,000 | ||
Loans and other receivables at amortised cost | 34,195,389 | 31,647,397 | 33,350,334 | |
Deposits and other debt including pooled schemes | 37,438,745 | 36,306,894 | 36,992,571 | |
Equity | 7,071,381 | 6,644,339 | 7,188,690 | |
Balance sheet total | 50, 265,795 | 47,349,161 | 49,650,528 | |
Contingent liabilities | 7,976,145 | 7,820,731 | 7,829,417 |
Key figures
Q1 2019 | Q1 2018 | 2018 | |
Key figures for the bank (per cent) | |||
Profit before special costs as a percentage of average equity excluding intangible assets, per annum | 21.5 | 25.1 | 18.8 |
Profit before tax as a percentage of average equity, per annum | 18.1 | 22.9 | 13.6 |
Net profit for the period as a percentage of average equity, per annum | 14.5 | 19.5 | 11.2 |
Rate of costs | 38.2 | 42.4 | 43.3 |
Common equity tier 1 capital ratio (%) | 14.1 | 15.1 | 15.0 |
Tier 1 capital ratio (%) | 14.1 | 15.1 | 15.0 |
Total capital ratio (%) | 17.7 | 16.8 | 18.8 |
MREL requirement (%) | 20.2 | - | 19.7 |
MREL capital ratio (%) | 23.9 | - | 25.2 |
Key figures per DKK 1 share (DKK) | |||
Core earnings | 10.1 | 9.8 | 36.5 |
Profit before special costs | 11.0 | 12.7 | 39.1 |
Book value | 238.5 | 214.4 | 240.4 |
Price, end of period | 409.0 | 332.0 | 340.0 |
Basis of calculation, number of shares | 29,644,596 | 30,994,258 | 29,906,383 |
Notes
Note | Q1 2019 DKK 1,000 | Q1 2018 DKK 1,000 | Full year 2018 DKK 1,000 | |
A | Gross fee and commission income | |||
Securities trading | 43,287 | 30,558 | 98,574 | |
Asset management and custody accounts | 39,801 | 42,447 | 169,097 | |
Payment handling | 29,881 | 25,723 | 111,601 | |
Loan fees | 16,268 | 11,518 | 46,641 | |
Guarantee commission and mortgage credit commission etc. | 53,684 | 52,704 | 215,091 | |
Other fees and commission | 26,606 | 24,823 | 71,487 | |
Total gross fee and commission income | 209,527 | 187,773 | 712,491 | |
Net fee and commission income | ||||
Securities trading | 41,086 | 28,097 | 87,664 | |
Asset management and custody accounts | 36,381 | 40,037 | 159,932 | |
Payment handling | 21,809 | 20,540 | 91,177 | |
Loan fees | 14,942 | 10,184 | 40,363 | |
Guarantee commission and mortgage credit commission etc. | 53,684 | 52,332 | 213,769 | |
Other fees and commission | 23,230 | 22,556 | 63,310 | |
Total net fee and commission income | 191,132 | 173,746 | 656,215 | |
Foreign exchange income | 5,796 | 6,570 | 30,559 | |
Total net fee, commission and foreign exchange income | 196,928 | 180,316 | 686,774 | |
B | Staff and administration costs | |||
Staff costs | 116,871 | 120,755 | 481,705 | |
Administration costs | 81,442 | 85,341 | 364,802 | |
Total staff and administration costs | 198,313 | 206,096 | 846,507 |
Quarterly overviews
Core earnings
(DKK million) | Q1 2019 | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 |
Net interest income | 291 | 289 | 287 | 284 | 287 | 288 | 277 | 280 | 279 |
Net fee and commission income excluding securities trading | 150 | 146 | 136 | 141 | 146 | 130 | 128 | 154 | 138 |
Income from sector shares etc. | 37 | 39 | 34 | 49 | 38 | 31 | 30 | 30 | 29 |
Foreign exchange income | 6 | 8 | 8 | 9 | 6 | 7 | 8 | 8 | 8 |
Other operating income | 1 | 2 | 1 | 2 | 1 | 1 | 2 | 2 | 1 |
Total core income excluding securities trading | 485 | 484 | 466 | 485 | 478 | 457 | 445 | 474 | 455 |
Securities trading | 41 | 17 | 23 | 20 | 28 | 18 | 24 | 20 | 24 |
Total core income | 526 | 501 | 489 | 505 | 506 | 475 | 469 | 494 | 479 |
Staff and administration costs | 198 | 221 | 203 | 217 | 206 | 225 | 202 | 201 | 201 |
Depreciation and write-downs on tangible assets | 2 | 3 | 3 | 2 | 8 | 3 | 3 | 2 | 3 |
Other operating expenses | 1 | 1 | 0 | 1 | 1 | 2 | 1 | 1 | 1 |
Total expenses etc. | 201 | 225 | 206 | 220 | 215 | 230 | 206 | 204 | 205 |
Core earnings before impairment charges for loans | 325 | 276 | 283 | 285 | 291 | 245 | 263 | 290 | 274 |
Impairment charges for loans and other receivables etc. | -25 | -25 | -20 | -11 | +13 | +3 | -17 | -23 | -33 |
Core earnings | 300 | 251 | 263 | 274 | 304 | 248 | 246 | 267 | 241 |
Result for the portfolio etc. | +26 | -20 | +4 | +3 | +90 | -2 | +22 | +26 | +38 |
Profit before special costs | 326 | 231 | 267 | 277 | 394 | 246 | 268 | 293 | 279 |
Amortisation and write-downs on intangible assets | 4 | 4 | 3 | 12 | 6 | 5 | 6 | 5 | 6 |
Merger and restructuring costs | 0 | 26 | 46 | 46 | 4 | - | - | - | - |
Non-recurring costs | 0 | 1 | 0 | 69 | 0 | - | - | - | - |
Profit before tax | 322 | 200 | 218 | 150 | 384 | 241 | 262 | 288 | 273 |
Tax | 63 | 46 | 37 | 33 | 58 | 47 | 52 | 62 | 55 |
Net profit for the period | 259 | 154 | 181 | 117 | 326 | 194 | 210 | 226 | 218 |
Quarterly overview - continued
Balance sheet items and contingent liabilities
(DKK million) | Q1 2019 | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 |
Loans | 34,195 | 33,350 | 32,192 | 31,970 | 31,647 | 31,173 | 30,368 | 30,371 | 29,093 |
Deposits including pooled schemes | 37,439 | 36,993 | 36,866 | 37,313 | 36,307 | 35,854 | 36,065 | 35,593 | 34,161 |
Equity | 7,071 | 7,189 | 7,171 | 7,066 | 6,644 | 6,769 | 6,609 | 6,438 | 6,246 |
Balance sheet total | 50,266 | 49,651 | 49,287 | 49,859 | 47,349 | 46,324 | 46,500 | 45,577 | 43,665 |
Contingent liabilities | 7,976 | 7,829 | 8,078 | 7,809 | 7,821 | 7,858 | 7,382 | 7,235 | 6,595 |
Statement of capital
(DKK million) | Q1 2019 | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 | Q4 2017 | Q3 2017 | Q2 2017 | Q1 2017 |
Common equity tier 1 | 5,391 | 5,444 | 5,213 | 5,092 | 5,185 | 5,381 | 5,263 | 5,175 | 4,909 |
Tier 1 capital | 5,391 | 5,444 | 5,213 | 5,092 | 5,185 | 5,381 | 5,263 | 5,175 | 4,909 |
Total capital | 6,775 | 6,831 | 6,586 | 6,464 | 5,757 | 5,921 | 5,811 | 5,722 | 5,442 |
Total risk exposure | 38,308 | 36,385 | 34,123 | 33,784 | 34,314 | 34,162 | 32,618 | 32,197 | 31,517 |
Common equity tier 1 capital ratio (%) | 14.1 | 15.0 | 15.3 | 15.1 | 15.1 | 15.8 | 16.1 | 16.1 | 15.6 |
Tier 1 capital ratio (%) | 14.1 | 15.0 | 15.3 | 15.1 | 15.1 | 15.8 | 16.1 | 16.1 | 15.6 |
Total capital ratio (%) | 17.7 | 18.8 | 19.3 | 19.1 | 16.8 | 17.3 | 17.8 | 17.8 | 17.3 |
MREL capital ratio (%) | 23.9 | 25.2 | - | - | - | - | - | - | - |
Miscellaneous comments
The pro forma statements are calculated on the following principles:
The income statement items for the period 1 January to 31 March 2018 and for the full year 2018 on pages 5 and 7 and “Core earnings” in the quarterly overview from the first quarter of 2017 up to and including the second quarter of 2018, on page 8, were calculated as follows: Figures from Ringkjøbing Landbobank’s statement of “Core earnings” as an alternative measure of performance were added to the pro forma figures from Nordjyske Bank converted and adjusted to Ringkjøbing Landbobank’s alternative measure of performance “Core earnings”. “Core earnings” for the first quarter of 2019 in the pro forma financial statements on page 5 are identical to “Core earnings” in the official financial statements on page 18.
Balance sheet items and contingent liabilities as well as capital ratios as at 31 March 2018 on page 5 and 6 and the quarterly overviews of “Balance sheet items and contingent liabilities” and “Statement of capital” from the first quarter of 2017 up to and including the first quarter of 2018 on page 9 were calculated by a simple adding up of figures from the respective accounts from Ringkjøbing Landbobank and Nordjyske Bank, without any adjustments.
Official financial statements
The official financial statements contain an income statement in which the figures for the first quarter of 2019 are for the merged entity, while the figures for the first quarter of 2018 are for the “old” Ringkjøbing Landbobank only. The figures for the full year 2018 comprise financial figures for the “old” Ringkjøbing Landbobank for the full year 2018, plus financial figures for the “old” Nordjyske Bank for the period 9 June to 31 December 2018. This includes merger costs relating to the “old” Ringkjøbing Landbobank and the completion of the actual merger after final approval. The balance sheet figures as at 31 March 2019 and 31 December 2018 are for the merged entity, while the figures as at 31 March 2018 are for the “old” Ringkjøbing Landbobank.
Comments on the official financial statements, the alternative performance measure “Core earnings” and certain balance sheet items appear below.
Net interest and fee income and expenses
Net interest income increased from DKK 164 million in the first quarter of 2018 to DKK 292 million in the first quarter of 2019.
Net fee and commission income was DKK 81 million in the first quarter of 2018, increasing to DKK 191 million in the first quarter of 2019.
In the first quarter of 2019, total net interest and fee income thus increased to DKK 483 million from their level of DKK 245 million in the first quarter of 2018.
Total staff and administration costs etc., including amortisation, depreciation and write-downs on intangible and tangible assets, amounted to DKK 83 million in the first quarter of 2018, increasing to DKK 205 million in the first quarter of 2019.
The changes in the above items primarily result from the merger.
Value adjustments and market risk
Value adjustments were DKK 80 million in the first quarter of 2018, while the item was DKK 70 million in the first quarter of 2019. The figure for 2018 includes DKK 52 million from a revaluation of the bank’s ownership interest in BI Holding. This derives from a change in the valuation principles in the first quarter of 2018.
The item “Shares, etc.” amounted to DKK 1,500 million at the end of March 2019, with DKK 39 million in listed shares and investment fund certificates and DKK 1,461 million in sector shares etc., mainly in the companies DLR Kredit, BI Holding and PRAS. The bond portfolio amounted to DKK 5,749 million, of which the vast majority consisted of AAA-rated Danish government and mortgage credit bonds.
The total interest rate risk - computed as the impact on profit of a one percentage point change in the interest level - was 1.8% of the bank’s tier 1 capital on 31 March 2019.
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 calculated on the basis of a Value at Risk model (computed with a 10-day horizon and 99% probability) was as follows in the first quarter of 2019:
Risk in DKK million | Risk relative to equity end of period in % | |
Highest risk of loss: | 17.7 | 0.25% |
Lowest risk of loss | 6.9 | 0.10% |
Average risk of loss | 12.7 | 0.18% |
End of period risk of loss: | 16.3 | 0.23% |
Impairment charges for loans etc.
Impairment charges for loans etc. were an expense of DKK 25 million in 2019, compared to an income of DKK 26 million in 2018.
During the first quarter of 2018, the Danish FSA carried out a “major” inspection with a satisfactory result. The bank in that connection identified reversals of impairment charges on the basis of improved credit quality in certain exposures and, overall, there were no new impairment charges during the quarter. This explains the above-mentioned income in the first quarter of 2018.
Individual impairment charges and provisions (stage 3) were DKK 1,484 million at the end of the quarter, while stages 1 and 2 impairment charges and provisions totalled DKK 488 million on 31 March 2019.
The bank’s total account for impairment charges and provisions was DKK 1,972 million at the end of the quarter, equivalent to 4.5% of total loans and guarantees.
The portfolio of loans with suspended calculation of interest amounted to DKK 204 million on 31 March 2019, equivalent to 0.5% of the bank’s total loans and guarantees at the end of the quarter.
Core earnings
(DKK million) | Q1 2019 | Q1 2018 | 2018 | 2017 | 2016 |
Total core income | 526 | 274 | 1,591 | 1,019 | 983 |
Total expenses and depreciation | -201 | -83 | -632 | -334 | -318 |
Core earnings before impairment charges for loans | 325 | 191 | 959 | 685 | 665 |
Impairment charges for loans etc. | -25 | +26 | -81 | -10 | -48 |
Core earnings | 300 | 217 | 878 | 675 | 617 |
Core earnings increased from DKK 217 million in the first quarter of 2018 to DKK 300 million in the first quarter of 2019.
Profit before and after tax
The profit before tax was DKK 322 million in the first quarter of 2019 and the profit after tax was DKK 259 million, compared to DKK 269 million and DKK 224 million respectively in the first quarter of 2018.
Balance sheet items and contingent liabilities
The bank’s balance sheet total at the end of the quarter stood at DKK 50,266 million, compared to last year’s DKK 27,004 million.
Deposits including pooled schemes increased from DKK 19,511 million at the end of March 2018 to DKK 37,439 million at the end of March 2019. The bank’s loans increased from DKK 19,925 million at the end of March 2018 to DKK 34,195 million at the end of March 2019.
Equity increased from DKK 3,785 million at the end of March 2018 to DKK 7,071 million at the end of March 2019.
The bank’s contingent liabilities, including guarantees, at the end of March 2019 amounted to DKK 7,976 million, compared to DKK 3,076 million at the end of March 2018.
All of the changes above are attributable mainly to the effect of the merger. There was also a positive development in both the “old” Ringkjøbing Landbobank and the “old” Nordjyske Bank.
Liquidity
The bank’s liquidity situation is good. The bank’s short-term funding with term to maturity of less than 12 months thus amounts to DKK 0.8 billion, balanced by DKK 8.6 billion, primarily in short-term investments in the Danish central bank and in liquid tradable securities.
The bank’s deposits, excluding pooled schemes and equity, exceeded the bank’s loans by DKK 6.3 billion and these two items therefore more than fully finance the loan portfolio. In addition, part of the loan portfolio for renewable energy projects is financed back-to-back with KfW Bankengruppe, which means that DKK 1.2 billion can be disregarded in terms of liquidity.
In terms of liquidity coverage ratio (LCR), the bank must comply with the statutory requirement of at least 100%. On 31 March 2019, the bank’s LCR was 177%, which thus met the statutory requirement by a good margin.
Capital reduction and share buy-back programme
It was decided at the annual general meeting held on 20 March 2019 to cancel 1,332,462 of the bank's own shares. The capital reduction is expected to be finalised during May 2019. The bank’s actual share capital will thus be DKK 29,661,796 million in nom. DKK 1 shares, see below.
Number of shares | |
Beginning of 2019 | 30,994,258 |
May 2019 Expected capital reduction by cancellation of own shares | -1,332,462 |
After the expected capital reduction | 29,661,796 |
New share buy-back programme | |
Purchased under the new share buy-back programme at the end of March 2019 | -17,200 |
29,644,596 |
The general meeting also adopted a new buy-back programme, under which the bank may buy back its own shares for up to DKK 190 million, for cancellation at a future general meeting. The new share buy-back programme has been initiated partly by DKK 90 million and it will run from 21 March 2019 to 31 July 2019. Under the new share buy-back programme, 17,200 shares had been bought back on 31 March 2019, which the above overview also shows.
Capital structure
The bank’s equity at the beginning of 2019 was DKK 7,189 million. To this must be added the profit for the period, while the dividend paid and the value of the own shares bought must be subtracted. After this, equity at the end of the quarter was DKK 7,071 million.
The bank’s total capital ratio was computed at 17.7% at the end of the first quarter of 2019, and the tier 1 capital ratio at 14.1%.
Capital ratios | Q1 2019 | Q1 2018 | 2018 | 2017 | 2016 |
Common equity tier 1 capital ratio (%) | 14.1 | 16.1 | 15.0 | 16.5 | 16.9 |
Tier 1 capital ratio (%) | 14.1 | 16.1 | 15.0 | 16.5 | 16.9 |
Total capital ratio (%) | 17.7 | 17.6 | 18.8 | 17.8 | 18.3 |
MREL requirement (%) | 20.2 | - | 19.7 | - | - |
MREL capital ratio (%) | 23.9 | - | 25.2 | - | - |
One reason for the fall in the capital ratios relative to the end of 2018 is an increase of 5% in total risk exposure during the first quarter of 2019. This reflects both higher credit risk and greater market exposure which, in turn, is attributable to the increase in the bank’s loans portfolio and a changed composition of its bond portfolio. The higher market risk amounts to 59% of the total increase in risk exposure and a part of it is temporary. In addition, total capital is affected by deductions for the share buy-back programme adopted by the general meeting.
The bank has calculated the individual solvency requirement at the end of March 2019 at 9.3%. To this should be added a capital conservation buffer of 2.5% and a countercyclical buffer of 0.5%; the total requirement for the bank’s total capital was thus 12.3%.
Compared with the actual total capital of DKK 6.8 billion, the capital buffer at the end of March 2019 was thus DKK 2.1 billion, equivalent to 5.4 percentage points.
The bank operates with three different capital targets. The capital targets specify that the common equity tier 1 capital ratio must be at least 13.5%, the total capital ratio must be at least 17% and the MREL capital ratio for covering the MREL requirement must be at least 24% including the capital buffers.
All capital targets are minimum figures that must be met at the end of the year, as there may be major fluctuations in the capital ratios over the year, due to the capital rules applying to deductions for share buy-back programmes.
The MREL requirement had to be met by the beginning of 2019, because the bank has previously decided to meet the fully phased-in MREL requirement from that date. This was also a pre-condition for recognising (grandfathering) previous issues of contractual senior funding (issued before 31 December 2017).
In December 2018, the bank received the final MREL requirement applicable from the beginning of 2019 from the Danish FSA. The Danish FSA fixed the final MREL requirement to be met from 1 January 2019 at 19.7% of the total risk exposure. On 31 March 2019 the requirement increased to 20.2% of the total risk exposure and, on 30 September 2019, will increase further, to 20.7% of the total risk exposure.
To comply with the MREL requirement, the bank had established funding to meet the requirements for grandfathering of contractual senior capital by the end of 2017. DKK 2.0 billion of the funding can be included to meet the bank’s MREL requirement at the end of March 2019. In addition, the bank issued non-preferred senior capital totalling DKK 300 million in December 2018 and for the countervalue of DKK 75 million in the first quarter of 2019.
The bank’s capital for covering the MREL requirement totalled DKK 9,140 million, equivalent to 23.9% of the total risk exposure on 31 March 2019. The excess cover relative to the MREL requirement on 31 March 2019 was thus 3.7 percentage points.
Given the maturity structure in 2020 and 2021 for the subordinated capital issued by the bank and the capital that has been recognised (grandfathered), the bank expects to issue non-preferred senior capital of approximately DKK 1 billion during 2019 and an additional approximately DKK 1 billion during 2020.
The Supervisory Diamond
The bank complies with the Danish FSA’s Supervisory Diamond which contains different benchmarks and associated limit values which Danish banks must observe.
The Supervisory Diamond benchmarks and limit values and the bank’s key figures are given in the following table.
Benchmarks (Danish FSA limit values) | Q1 2019 | Q1 2018 | 2018 | 2017 | 2016 |
Funding ratio (<1) | 0.8 | 0.8 | 0.7 | 0.8 | 0.7 |
Liquidity benchmark (>100%) | 165.8% | 130.3% | 179.5% | - | - |
Total large exposures (<175%) | 120.8% | 137.7% | 106.0% | 136.1% | - |
Growth in loans (<20%) | 71.6%* | 22.1% | 72.3%* | 10.7% | 2.7% |
Real property exposure (<25%) | 15.6% | 19.1% | 15.8% | 18.0% | 14.8% |
* The increase was mainly caused by the merger. The pro forma growth in loans relative to March 2018 was 8.0% and for the full year 2018 7.0%.
Rating
The bank is rated by the international credit rating agency Moody’s Investors Service (Moody’s).
On 24 April 2019, Moody’s affirmed the following ratings among others:
Rating | Assigned rating |
Baseline Credit Assessment | a3 |
Adjusted Baseline Credit Assessment | a3 |
Long Term Bank Deposit | A1 |
Short Term Bank Deposit | P-1 |
Long Term Issuer Rating | A2 |
Short Term Issuer Rating | P-1 |
On the same date, the Outlook was changed from “Stable” to “Positive”.
IT conversion
The IT conversion of the two IT platforms was carried out successfully in the weekend 16-17 March 2019 and the bank now operates on one IT platform.
The successful completion also eliminated the last major operational risk of the merger.
Digital Financial Institution of the Year
The bank was named Digital Financial Institution 2019 in the group “Medium-sized financial institutions” at the conference Digital Financial Institution of the Year held by FinansWatch in April and based on a Wilke analysis.
Expected results for 2019
The bank’s core earnings for the first quarter of 2019 were DKK 300 million, which is above the budget for the quarter.
Profit before tax for the first quarter of 2019 was DKK 322 million.
The expectations for core earnings in the range DKK 950 to 1,150 million and profit before tax in the range DKK 900 to 1,200 million are maintained for 2019.
Accounting policies
The accounting policies are unchanged relative to those in the submitted and audited 2018 annual report.
Statements of income and comprehensive income
Note | Q1 2019 DKK 1,000 | Q1 2018 DKK 1,000 | Full year 2018 DKK 1,000 | |
1 | Interest income | 313,083 | 174,072 | 996,906 |
2 | Interest expenses | 21,353 | 10,318 | 70,411 |
Net interest income | 291,730 | 163,754 | 926,495 | |
3 | Dividends from shares etc. | 221 | 852 | 27,619 |
4 | Fee and commission income | 209,527 | 90,291 | 538,862 |
4 | Fee and commission expenses | 18,395 | 9,612 | 48,293 |
Net interest and fee income | 483,083 | 245,285 | 1,444,683 | |
5 | Value adjustments | +69,892 | +79,899 | +179,833 |
Other operating income | 1,326 | 1,050 | 5,770 | |
6,7 | Staff and administration costs | 198,313 | 76,307 | 704,778 |
Amortisation, depreciation and write-downs on intangible and tangible assets | 6,001 | 5,926 | 22,690 | |
Other operating expenses | 364 | 750 | 2,816 | |
8 | Impairment charges for loans and other receivables etc. | -27,473 | +25,551 | -86,955 |
Results from investments in associated companies and group undertakings | 0 | 0 | 80 | |
Profit before tax | 322,150 | 268,802 | 813,127 | |
9 | Tax | 63,166 | 44,375 | 149,935 |
Net profit for the period | 258,984 | 224,427 | 663,192 | |
Other comprehensive income: | ||||
Value changes, pension obligations | +59 | 0 | -335 | |
Total comprehensive income for the period | 259,043 | 224,427 | 662,857 |
Core earnings
Note | Q1 2019 DKK 1,000 | Q1 2018 DKK 1,000 | Full year 2018 DKK 1,000 | |
Net interest income | 291,248 | 167,157 | 936,929 | |
4 | Net fee and commission income excluding securities trading | 150,046 | 58,484 | 412,288 |
Income from sector shares etc. | 36,697 | 20,608 | 131,106 | |
4 | Foreign exchange income | 5,796 | 4,516 | 26,408 |
Other operating income | 1,326 | 1,050 | 5,770 | |
Total core income excluding securities trading | 485,113 | 251,815 | 1,512,501 | |
4 | Securities trading | 41,086 | 22,195 | 78,281 |
Total core income | 526,199 | 274,010 | 1,590,782 | |
Staff and administration costs | 198,313 | 76,307 | 615,637 | |
Depreciation and write-downs on tangible assets | 2,251 | 5,926 | 13,065 | |
Other operating expenses | 364 | 750 | 2,816 | |
Total expenses etc. | 200,928 | 82,983 | 631,518 | |
Core earnings before impairment charges for loans | 325,271 | 191,027 | 959,264 | |
Impairment charges for loans and other receivables etc. | -24,899 | +25,551 | -81,165 | |
Core earnings | 300,372 | 216,578 | 878,099 | |
Result for the portfolio etc. | +25,528 | +52,224 | +33,794 | |
Profit before special costs | 325,900 | 268,802 | 911,893 | |
Amortisation and write-downs on intangible assets | 3,750 | - | 8,417 | |
Merger and restructuring costs | 0 | - | 89,141 | |
Non-recurring costs | 0 | - | 1,208 | |
Profit before tax | 322,150 | 268,802 | 813,127 | |
9 | Tax | 63,166 | 44,375 | 149,935 |
Net profit for the period | 258,984 | 224,427 | 663,192 |
Balance sheet
Note | 31 March 2019 DKK 1,000 | 31 March 2018 DKK 1,000 | 31 Dec. 2018 DKK 1,000 | |
Assets | ||||
Cash in hand and demand deposits with central banks | 641,153 | 291,347 | 657,913 | |
10 | Receivables from credit institutions and central banks | 2,265,245 | 2,405,893 | 3,165,947 |
11,12,13 | Total loans and other receivables at amortised cost | 34,195,389 | 19,925,208 | 33,350,334 |
Loans and other receivables at amortised cost | 33,005,071 | 19,002,703 | 32,384,462 | |
Wind turbine loans etc. with direct funding | 1,190,318 | 922,505 | 965,872 | |
14 | Bonds at fair value | 5,749,387 | 3,292,737 | 5,427,138 |
15 | Shares etc. | 1,499,775 | 714,513 | 1,467,313 |
Investments in associated companies | 480 | 489 | 480 | |
Investments in group undertakings | 11,811 | - | 11,811 | |
16 | Assets linked to pooled schemes | 4,063,534 | - | 3,786,476 |
17 | Intangible assets | 1,061,088 | - | 1,064,838 |
Total land and buildings | 229,578 | 50,515 | 241,745 | |
Investment properties | 15,337 | 3,561 | 27,337 | |
Domicile properties | 214,241 | 46,954 | 214,408 | |
Other tangible assets | 23,216 | 18,833 | 24,520 | |
Current tax assets | 15,408 | 22,961 | 43,383 | |
Deferred tax assets | 8,022 | 8,719 | 7,763 | |
Temporary assets | 4,643 | 5,587 | 4,643 | |
Other assets | 478,897 | 260,243 | 377,836 | |
Prepayments | 18,169 | 6,678 | 18,388 | |
Total assets | 50,265,795 | 27,003,723 | 49,650,528 |
Balance sheet
Note | 31 March 2019 DKK 1,000 | 31 March 2018 DKK 1,000 | 31 Dec. 2018 DKK 1,000 | |
Liabilities and equity | ||||
18 | Debt to credit institutions and central banks | 2,043,825 | 1,882,258 | 1,916,476 |
Total deposits and other debt | 37,438,745 | 19,510,746 | 36,992,571 | |
19 | Deposits and other debt | 33,375,211 | 19,510,746 | 33,206,095 |
Deposits in pooled schemes | 4,063,534 | - | 3,786,476 | |
20 | Issued bonds at amortised cost | 1,514,018 | 1,197,939 | 1,428,024 |
Preferred senior capital | 1,138,715 | 1,197,939 | 1,129,524 | |
Non-preferred senior capital | 375,303 | - | 298,500 | |
Other liabilities | 656,942 | 211,258 | 595,913 | |
Deferred income | 3,888 | 3,545 | 4,053 | |
Total debt | 41,657,418 | 22,805,746 | 40,937,037 | |
Provisions for pensions and similar liabilities | 2,823 | - | 2,882 | |
12 | Provisions for losses on guarantees | 60,619 | 27,318 | 52,754 |
12 | Other provisions for liabilities | 20,117 | 13,840 | 20,691 |
Total provisions for liabilities | 83,559 | 41,158 | 76,327 | |
Tier 2 capital | 1,453,437 | 372,058 | 1,448,474 | |
21 | Total subordinated debt | 1,453,437 | 372,058 | 1,448,474 |
22 | Share capital | 30,994 | 22,350 | 30,994 |
Net revaluation reserve under the equity method | 218 | 138 | 218 | |
Retained earnings | 7,040,169 | 3,762,273 | 6,847,035 | |
Proposed dividend etc. | - | - | 310,443 | |
Total shareholders’ equity | 7,071,381 | 3,784,761 | 7,188,690 | |
Total liabilities and equity | 50,265,795 | 27,003,723 | 49,650,528 | |
23 | Own shares | |||
24 | Contingent liabilities etc. | |||
25 | Assets provided as security | |||
26 | Loans and guarantees in per cent, by sector and industry |
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 |
As at 31 March 2019: Shareholders’ equity at the end of the previous financial year | 30,994 | 218 | 6,847,035 | 310,443 | 7,188,690 |
Dividend etc. paid | -310,443 | -310,443 | |||
Dividend received on own shares | 13,332 | 13,332 | |||
Shareholders’ equity after distribution of dividend etc. | 30,994 | 218 | 6,860,367 | 0 | 6,891,579 |
Purchase of own shares | -355,283 | -355,283 | |||
Sale of own shares | 276,042 | 276,042 | |||
Other equity transactions | |||||
Total comprehensive income for the period | 259,043 | 259,043 | |||
Shareholders’ equity on the balance sheet date | 30,994 | 218 | 7,040,169 | 0 | 7,071,381 |
DKK 1,000 | Share capital | Net revaluation reserve under the equity method | Retained earnings | Proposed dividend etc. | Total share-holders’ equity |
As at 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 im-pairment charges etc. 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 |
As at 31 December 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 im-pairment charges etc. 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 |
Reduction of share capital | -538 | 538 | 0 | ||
Dividend etc. paid | -201,650 | -201,650 | |||
Dividend received on own shares | 5,112 | 5,112 | |||
Shareholders’ equity after distribution of dividend etc. | 21,812 | 138 | 3,552,594 | 0 | 3,574,544 |
Share capital issued on merger | 9,182 | -9,182 | 0 | ||
Costs of share capital issue | -1,943 | -1,943 | |||
Additions on merger | 3,323,144 | 3,323,144 | |||
Received own shares on merger | 1,793 | 1,793 | |||
Purchase of own shares | -790,333 | -790,333 | |||
Sale of own shares | 411,287 | 411,287 | |||
Other equity transactions | 7,341 | 7,341 | |||
Total comprehensive income for the year | 80 | 352,334 | 310,443 | 662,857 | |
Shareholders’ equity on the balance sheet date | 30,994 | 218 | 6,847,035 | 310,443 | 7,188,690 |
Statement of capital
31 March 2019 DKK 1,000 | 31 March 2018 DKK 1,000 | 31 Dec. 2018 DKK 1,000 | |
Credit risk | 33,323,229 | 17,166,610 | 32,537,543 |
Market risk | 2,722,506 | 1,035,977 | 1,584,762 |
Operational risk | 2,262,571 | 1,890,456 | 2,262,571 |
Total risk exposure | 38,308,306 | 20,093,043 | 36,384,876 |
Shareholders´ equity | 7,071,381 | 3,784,761 | 7,188,690 |
Proposed dividend etc. | 0 | 0 | -310,443 |
Deduction for expected dividend | -121,732 | -77,254 | - |
Addition for transition programme concerning IFRS 9 | 136,653 | 43,544 | 152,730 |
Deduction for the sum of equity investments etc. above 10% | -413,653 | -300,825 | -396,911 |
Deduction for prudent valuation | -13,602 | -6,317 | -13,772 |
Deduction for intangible assets | -1,061,088 | - | -1,064,838 |
Deferred tax on intangible assets | 30,323 | - | 31,148 |
Deduction of amounts of share buy-back programmes | -660,000 | -170,000 | -470,000 |
Actual utilisation of amounts of share buy-back programmes | 476,809 | 0 | 369,878 |
Deduction for trading limit for own shares | -55,000 | -55,000 | -55,000 |
Actual utilisation of the trading limit for own shares | 516 | 14,437 | 12,849 |
Common equity tier 1 | 5,390,607 | 3,233,346 | 5,444,331 |
Tier 1 capital | 5,390,607 | 3,233,346 | 5,444,331 |
Tier 2 capital | 1,448,310 | 372,558 | 1,448,220 |
Deduction for the sum of equity investments etc. above 10% | -64,111 | -72,942 | -61,255 |
Total capital | 6,774,806 | 3,532,962 | 6,831,296 |
Contractual senior funding (grandfathered) | 1,990,800 | - | 2,049,800 |
Non-preferred senior capital | 374,662 | - | 300,000 |
MREL capital | 9,140,268 | - | 9,181,096 |
Statement of capital - continued
31 March 2019 DKK 1,000 | 31 March 2018 DKK 1,000 | 31 Dec. 2018 DKK 1,000 | |
Common equity tier 1 capital ratio (%) | 14.1 | 16.1 | 15.0 |
Tier 1 capital ratio (%) | 14.1 | 16.1 | 15.0 |
Total capital ratio (%) | 17.7 | 17.6 | 18.8 |
MREL capital ratio (%) | 23.9 | - | 25.2 |
Pillar I capital requirements | 3,064,664 | 1,607,443 | 2,910,790 |
Individual solvency requirement (%) | 9.3 | 9.0 | 9.3 |
Capital conservation buffer (%) | 2.5 | 1.9 | 1.9 |
Countercyclical buffer (%) | 0.5 | 0.0 | 0.0 |
Total requirement for the bank’s total capital (%) | 12.3 | 10.9 | 11.2 |
Excess cover in percentage points relative to individual solvency requirement | 8.4 | 8.6 | 9.5 |
Excess cover in percentage points relative to total requirement for total capital | 5.4 | 6.7 | 7.6 |
MREL requirement (%) | 20.2 | - | 19.7 |
Excess cover in percentage points relative to MREL requirement | 3.7 | - | 5.5 |
Notes
Note | Q1 2019 DKK 1,000 | Q1 2018 DKK 1,000 | Full year 2018 DKK 1,000 | |
1 | Interest income | |||
Receivables from credit institutions and central banks | -3,007 | -2,075 | -13,199 | |
Loans and other receivables | 316,144 | 175,608 | 1,014,911 | |
Discounts - amortisation concerning loans taken over etc. | 2,574 | - | 5,790 | |
Loans - interest on the impaired part of loans | -17,403 | -6,864 | -51,075 | |
Bonds | 8,474 | 4,120 | 20,326 | |
Total derivative financial instruments | 5,071 | 1,866 | 12,634 | |
Of which currency contracts | 6,622 | 1,270 | 7,286 | |
Of which interest-rate contracts | -1,551 | 596 | 5,348 | |
Other interest income | 1,230 | 1,417 | 7,519 | |
Total interest income | 313,083 | 174,072 | 996,906 | |
2 | Interest expenses | |||
Credit institutions and central banks | 3,059 | 2,678 | 11,228 | |
Deposits and other debt | 5,273 | 5,345 | 27,107 | |
Issued bonds | 3,359 | 887 | 7,182 | |
Subordinated debt | 9,464 | 1,370 | 24,034 | |
Other interest expenses | 198 | 38 | 860 | |
Total interest expenses | 21,353 | 10,318 | 70,411 | |
3 | Dividends from shares etc. | |||
Shares | 221 | 852 | 27,619 | |
Total dividends from shares etc. | 221 | 852 | 27,619 | |
4 | Gross fee and commission income | |||
Securities trading | 43,287 | 24,243 | 88,478 | |
Asset management and custody accounts | 39,801 | 19,858 | 127,502 | |
Payment handling | 29,881 | 7,967 | 77,872 | |
Loan fees | 16,268 | 3,206 | 32,737 | |
Guarantee commission and mortgage credit commission etc. | 53,684 | 20,102 | 156,986 | |
Other fees and commission | 26,606 | 14,915 | 55,287 | |
Total gross fee and commission income | 209,527 | 90,291 | 538,862 | |
Net fee and commission income | ||||
Securities trading | 41,086 | 22,195 | 78,281 | |
Asset management and custody accounts | 36,381 | 17,464 | 118,433 | |
Payment handling | 21,809 | 5,359 | 62,172 | |
Loan fees | 14,942 | 2,571 | 27,632 | |
Guarantee commission and mortgage credit commission etc. | 53,684 | 20,102 | 156,366 | |
Other fees and commission | 23,230 | 12,988 | 47,685 | |
Total net fee and commission income | 191,132 | 80,679 | 490,569 | |
Foreign exchange income | 5,796 | 4,516 | 26,408 | |
Total net fee, commission and foreign exchange income | 196,928 | 85,195 | 516,977 |
Notes
Note | Q1 2019 DKK 1,000 | Q1 2018 DKK 1,000 | Full year 2018 DKK 1,000 | |
5 | Value adjustments | |||
Other loans and receivables, fair value adjustment | 3,724 | 604 | 2,926 | |
Bonds | 21,217 | -6,237 | -17,614 | |
Shares etc. | 40,124 | 75,864 | 165,402 | |
Investment properties | 2,602 | 0 | 1,494 | |
Foreign exchange | 5,796 | 4,516 | 26,408 | |
Total derivative financial instruments | 12,453 | 8,680 | 15,433 | |
Of which currency contracts | 7,729 | 7,425 | 11,552 | |
Of which interest-rate contracts | 4,694 | 1,030 | 3,410 | |
Of which share contracts | 30 | 225 | 471 | |
Assets linked to pooled schemes | 210,581 | - | -219,637 | |
Deposits in pooled schemes | -210,581 | - | 219,637 | |
Issued bonds | -11,682 | -3,528 | -9,024 | |
Other liabilities | -4,342 | 0 | -5,192 | |
Total value adjustments | 69,892 | 79,899 | 179,833 | |
6 | Staff and administration costs | |||
Payments and fees to general management, board of directors and shareholders’ committee | ||||
General management | 3,692 | 1,801 | 11,591 | |
Board of directors | 0 | 0 | 2,208 | |
Shareholders’ committee | 0 | 0 | 618 | |
Total | 3,692 | 1,801 | 14,417 | |
Staff costs | ||||
Salaries | 86,154 | 33,955 | 274,539 | |
Pensions | 9,571 | 3,826 | 32,145 | |
Social security expenses | 2,705 | 783 | 5,206 | |
Costs depending on number of staff | 14,749 | 5,375 | 40,501 | |
Total | 113,179 | 43,939 | 352,391 | |
Other administration costs | 81,442 | 30,567 | 337,970 | |
Total staff and administration costs | 198,313 | 76,307 | 704,778 | |
7 | Number of full-time employees | |||
Average number of employees during the period converted into full-time employees | 669 | 277 | 507 | |
Number of full-time employees at the end of the period | 659 | 278 | 674 | |
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 | -68,766 | -19,246 | -213,688 | |
Stage 1 impairment charges in connection with the merger | - | - | 100,267 | |
Actual realised net losses | 113,642 | 559 | 251,451 | |
Interest on the impaired part of loans | -17,403 | -6,864 | -51,075 | |
Total impairment charges for loans and other receivables etc. | 27,473 | -25,551 | 86,955 |
Notes
Note | Q1 2019 DKK 1,000 | Q1 2018 DKK 1,000 | Full year 2018 DKK 1,000 | ||
9 | Tax | ||||
Tax calculated on income for the year | 63,425 | 44,375 | 149,885 | ||
Adjustment of deferred tax | -259 | 0 | -4,682 | ||
Adjustment of tax calculated for previous years | 0 | 0 | 4,732 | ||
Total tax | 63,166 | 44,375 | 149,935 | ||
Effective tax rate (%): | |||||
Tax rate currently paid by the bank | 22.0 | 22.0 | 22.0 | ||
Permanent deviations | -2.4 | -5.5 | -4.2 | ||
Adjustment of tax calculated for previous years | 0 | 0.0 | 0.6 | ||
Total effective tax rate | 19.6 | 16.5 | 18.4 | ||
Note | 31 March 2019 DKK 1,000 | 31 March 2018 DKK 1,000 | 31 Dec. 2018 DKK 1,000 | ||
10 | Receivables from credit institutions and central banks | ||||
Demand | 311,005 | 156,552 | 181,788 | ||
Up to and including 3 months | 1,899,240 | 2,094,341 | 2,929,159 | ||
More than 3 months and up to and including 1 year | 0 | 100,000 | 0 | ||
More than 1 year and up to and including 5 years | 5,000 | 5,000 | 5,000 | ||
More than 5 years | 50,000 | 50,000 | 50,000 | ||
Total receivables from credit institutions and central banks | 2,265,245 | 2,405,893 | 3,165,947 | ||
11 | Loans and other receivables at amortised cost | ||||
Demand | 2,737,458 | 1,825,353 | 3,031,844 | ||
Up to and including 3 months | 2,793,706 | 1,079,384 | 1,183,998 | ||
More than 3 months and up to and including 1 year | 6,113,139 | 2,172,390 | 7,633,504 | ||
More than 1 year and up to and including 5 years | 10,416,863 | 7,135,311 | 9,764,398 | ||
More than 5 years | 12,134,223 | 7,712,770 | 11,736,590 | ||
Total loans and other receivables at amortised cost | 34,195,389 | 19,925,208 | 33,350,334 |
Notes
Note | 31 March 2019 DKK 1,000 | 31 March 2018 DKK 1,000 | 31 Dec. 2018 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 | 577,490 | |
Changed accounting policy for impairment charges | - | -577,490 | -577,490 | |
Impairment charges / value adjustments during the period | - | - | - | |
Reversal of impairment charges made in previous financial years | - | - | - | |
Recognised as a loss, covered by impairment charges | - | - | - | |
Cumulative individual impairment charges on the balance sheet date | - | - | - | |
Collective impairment charges | ||||
Cumulative collective impairment charges at the end of the previous financial year | - | 343,282 | 343,282 | |
Changed accounting policy for impairment charges | - | -343,282 | -343,282 | |
Impairment charges / value adjustments during the period | - | - | - | |
Cumulative collective impairment charges on the balance sheet date | - | - | - | |
Stage 1 impairment charges | ||||
Cumulative stage 1 impairment charges at the end of the previous financial year | 156,398 | - | - | |
Changed accounting policy for impairment charges | - | 61,228 | 61,228 | |
Stage 1 impairment charges in connection with the merger | - | - | 100,267 | |
Stage 1 impairment charges / value adjustment during the period | -15,756 | 2,434 | -5,097 | |
Cumulative stage 1 impairment charges on the balance sheet date | 140,642 | 63,662 | 156,398 | |
Stage 2 impairment charges | ||||
Cumulative stage 2 impairment charges at the end of the previous financial year | 263,389 | - | - | |
Changed accounting policy for impairment charges | - | 308,912 | 308,912 | |
Stage 2 impairment charges / value adjustment during the period | 25,746 | -1,305 | -45,523 | |
Cumulative stage 2 impairment charges on the balance sheet date | 289,135 | 307,607 | 263,389 | |
Stage 3 impairment charges | ||||
Cumulative stage 3 impairment charges at the end of the previous financial year | 1,547,175 | - | - | |
Changed accounting policy for impairment charges | - | 575,516 | 575,516 | |
Additions on merger | - | - | 1,158,075 | |
Stage 3 impairment charges / value adjustment during the period | 121,657 | 38,638 | 388,256 | |
Reversal of stage 3 impairment charges during the period | -91,520 | -54,657 | -315,607 | |
Recognised as a loss, covered by stage 3 impairment charges | -116,184 | -1,372 | -259,065 | |
Cumulative stage 3 impairment charges on the balance sheet date | 1,461,128 | 558,125 | 1,547,175 | |
Total cumulative impairment charges for loans and other receivables on the balance sheet date | 1,890,905 | 929,394 | 1,966,962 | |
Notes | ||||
Note | 31 March 2019 DKK 1,000 | 31 March 2018 DKK 1,000 | 31 Dec. 2018 DKK 1,000 | |
12 | Impairment charges for loans and other receivables and provisions for losses on guarantees and unutilised credit facilities - continued | |||
Provisions for losses on guarantees | ||||
Cumulative provisions for losses on guarantees at the end of the previous financial year | 52,754 | 10,263 | 10,263 | |
Changed accounting policy for provisions for losses on guarantees | - | 20,881 | 20,881 | |
Additions on merger | - | - | 15,250 | |
Provisions / value adjustments during the period | 24,667 | 6,101 | 38,472 | |
Reversal of provisions during the period | -16,177 | -8,476 | -28,342 | |
Recognised as a loss, covered by provisions | -625 | -1,451 | -3,770 | |
Cumulative provisions for losses on guarantees on the balance sheet date | 60,619 | 27,318 | 52,754 | |
Provisions for losses on unutilised credit facilities | ||||
Cumulative provisions for losses on unutilised credit facilities at the end of the previous financial year | 20,691 | - | - | |
Changed accounting policy for provisions for losses on unutilised credit facilities | - | 12,996 | 12,996 | |
Provisions / value adjustments during the period | -574 | 844 | 7,695 | |
Cumulative provisions for losses on unutilised credit facilities on the balance sheet date | 20,117 | 13,840 | 20,691 | |
Total cumulative impairment charges for loans and other receivables and provisions for losses on guarantees and unutilised credit facilities on the balance sheet date | 1,971,641 | 970,552 | 2,040,407 | |
In addition, a discount on loans and guarantees taken over from Nordjyske Bank amounted to | 43,117 | - | 45,691 | |
The above includes the following stage 3 impairment charges and provisions taken over from Nordjyske Bank: | ||||
Cumulative stage 3 impairment charges and provisions at the end of the previous financial year | 839,529 | - | - | |
Additions on merger | - | - | 1,173,325 | |
Changes during the period | -115,634 | - | -333,796 | |
Stage 3 impairment charges and provisions taken over on the balance sheet date | 723,895 | - | 839,529 | |
13 | Suspended calculation of interest | |||
Loans and other receivables with suspended calculation of interest on the balance sheet date | 203,605 | 22,425 | 209,642 | |
14 | Bonds at fair value | |||
Listed on the stock exchange | 5,749,387 | 3,292,737 | 5,427,138 | |
Total bonds at fair value | 5,749,387 | 3,292,737 | 5,427,138 | |
15 | Shares etc. | |||
Listed on Nasdaq Copenhagen | 7,773 | 24,373 | 9,183 | |
Investment fund certificates | 30,620 | 16,793 | 33,566 | |
Unlisted shares at fair value | 15,024 | 1,402 | 14,891 | |
Sector shares at fair value | 1,446,358 | 671,945 | 1,409,673 | |
Total shares etc. | 1,499,775 | 714,513 | 1,467,313 |
Notes
Note | 31 March 2019 DKK 1,000 | 31 March 2018 DKK 1,000 | 31 Dec. 2018 DKK 1,000 | |
16 | Assets linked to pooled schemes | |||
Bonds: | ||||
Index-linked bonds | 26,356 | - | 132,986 | |
Other bonds | 1,552,032 | - | 1,076,828 | |
Total bonds | 1,578,388 | - | 1,209,814 | |
Shares: | ||||
Investment fund certificates | 1,998,773 | - | 1,964,377 | |
Other shares | 486,373 | - | 612,285 | |
Total shares | 2,485,146 | - | 2,576,662 | |
Total assets linked to pooled schemes | 4,063,534 | - | 3,786,476 | |
17 | Intangible assets | |||
Goodwill | ||||
Cost at the end of the previous financial year | 923,255 | - | - | |
Additions on merger | 0 | - | 923,255 | |
Total cost on the balance sheet date | 923,255 | - | 923,255 | |
Write-downs at the end of the previous financial year | 923,255 | - | - | |
Write-downs for the period | 0 | - | 0 | |
Total write-downs on the balance sheet date | 0 | - | 0 | |
Total goodwill on the balance sheet date | 923,255 | - | 923,255 | |
Customer relationships | ||||
Cost at the end of the previous financial year | 150,000 | - | - | |
Additions on merger | 0 | - | 150,000 | |
Total cost on the balance sheet date | 150,000 | - | 150,000 | |
Amortisation at the end of the previous financial year | 8,417 | - | - | |
Amortisation for the period | 3,750 | - | 8,417 | |
Total amortisation on the balance sheet date | 12,167 | - | 8,417 | |
Total customer relationships on the balance sheet date | 137,833 | - | 141,583 | |
Total intangible assets on the balance sheet date | 1,061,088 | - | 1,064,838 | |
18 | Debt to credit institutions and central banks | |||
Demand | 629,521 | 229,540 | 726,673 | |
Up to and including 3 months | 77,198 | 527,926 | 51,277 | |
More than 3 months and up to and including 1 year | 117,531 | 127,347 | 145,128 | |
More than 1 year and up to and including 5 years | 714,780 | 629,363 | 607,107 | |
More than 5 years | 504,795 | 368,082 | 386,291 | |
Total debt to credit institutions and central banks | 2,043,825 | 1,882,258 | 1,916,476 |
Notes
Note | 31 March 2019 DKK 1,000 | 31 March 2018 DKK 1,000 | 31 Dec. 2018 DKK 1,000 | |
19 | Deposits and other debt | |||
Demand | 26,340,726 | 12,593,496 | 26,379,274 | |
Deposits and other debt with notice: | ||||
Up to and including 3 months | 893,904 | 1,726,408 | 818,592 | |
More than 3 months and up to and including 1 year | 2,146,756 | 1,899,738 | 1,853,305 | |
More than 1 year and up to and including 5 years | 1,320,227 | 1,433,666 | 1,572,923 | |
More than 5 years | 2,673,598 | 1,857,438 | 2,582,001 | |
Total deposits and other debt | 33,375,211 | 19,510,746 | 33,206,095 | |
Distributed as follows: | ||||
Demand | 26,169,303 | 12,533,645 | 26,220,891 | |
With notice | 1,856,779 | 1,806,678 | 1,891,140 | |
Time deposits | 1,028,518 | 1,592,908 | 642,563 | |
Long-term deposit agreements | 1,505,544 | 2,151,443 | 1,751,158 | |
Special types of deposits | 2,815,067 | 1,426,072 | 2,700,343 | |
33,375,211 | 19,510,746 | 33,206,095 | ||
20 | Issued bonds at amortised cost | |||
More than 3 months and up to and including 1 year | 0 | 298,046 | 0 | |
More than 1 year and up to and including 5 years | 1,046,561 | 748,102 | 748,100 | |
More than 5 years | 467,457 | 151,791 | 679,924 | |
Total issued bonds at amortised cost | 1,514,018 | 1,197,939 | 1,428,024 | |
21 | Subordinated debt | |||
Tier 2 capital: | ||||
Fixed-rate loan, principal of DKK 275 million, | ||||
maturity date 27 February 2025 | 275,000 | - | 275,000 | |
Floating-rate loan, principal of EUR 50 million, | ||||
maturity date 20 May 2025 | 373,310 | 372,558 | 373,220 | |
Fixed-rate loan, principal of DKK 500 million, | ||||
maturity date 13 June 2028 | 500,000 | - | 500,000 | |
Floating-rate loan, principal of DKK 300 million, | ||||
maturity date 13 June 2030 | 300,000 | - | 300,000 | |
Adjustment to amortised cost and fair value adjustment | 5,127 | -500 | 254 | |
Total subordinated debt | 1,453,437 | 372,058 | 1,448,474 | |
22 | Share capital | |||
Number of DKK 1 shares | ||||
Beginning of period | 30,994,258 | 22,350,000 | 22,350,000 | |
Cancelled during the period | 0 | 0 | -538,000 | |
Issue of new shares in connection with the merger | - | - | 9,182,258 | |
End of period | 30,994,258 | 22,350,000 | 30,994,258 | |
Reserved for the agreed capital reduction | 1,332,462 | 538,000 | - | |
Reserved for subsequent cancellation | - | - | 1,087,875 | |
Total share capital | 30,994 | 22,350 | 30,994 |
Notes
Note | 31 March 2019 DKK 1,000 | 31 March 2018 DKK 1,000 | 31 Dec. 2018 DKK 1,000 | |
23 | Own shares | |||
Own shares included in the balance sheet at | 0 | 0 | 0 | |
Market value | 552,476 | 193,053 | 382,726 | |
Number of own shares: | ||||
Beginning of period | 1,125,666 | 538,685 | 538,685 | |
Purchased during the period | 961,259 | 223,672 | 2,328,984 | |
Sold during the period | -736,127 | -180,873 | -1,204,003 | |
Cancelled during the period | 0 | 0 | -538,000 | |
End of period | 1,350,798 | 581,484 | 1,125,666 | |
Reserved for subsequent cancellation | 1,349,662 | 538,000 | 1,087,875 | |
Nominal value of holding of own shares, end of period | 1,351 | 581 | 1,126 | |
Own shares’ proportion of share capital, end of period (%) | 4.4 | 2.6 | 3.6 | |
24 | Contingent liabilities etc. | |||
Contingent liabilities | ||||
Financial guarantees | 2,540,311 | 1,113,237 | 2,506,093 | |
Guarantees against losses on mortgage credit loans | 2,375,183 | 669,332 | 2,285,909 | |
Registration and refinancing guarantees | 2,256,806 | 857,774 | 2,235,726 | |
Sector guarantees | 134,604 | 65,913 | 134,604 | |
Other contingent liabilities | 669,241 | 369,623 | 667,085 | |
Total contingent liabilities | 7,976,145 | 3,075,879 | 7,829,417 | |
Other contractual obligations | ||||
Irrevocable credit commitments etc. | 58,500 | 110,000 | 13,531 | |
Total other contractual obligations | 58,500 | 110,000 | 13,531 | |
25 | Assets provided as security | |||
First-mortgage loans are provided for renewable energy 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 | 1,190,318 | 922,505 | 965,872 | |
As security for clearing etc., the bank has pledged securities to the Danish central bank to a market price of | 187,915 | 173,620 | 279,570 | |
Amount deposited in a cover-for-liabilities account as security for a loss limit with regard to the Danish Growth Fund as a consequence of Ringkjøbing Landbobank's ownership interest in Landbrugets Finansieringsbank | 417 | - | 418 | |
Collateral under CSA agreements etc. | 46,937 | 25,552 | 42,947 |
Notes
Note | 31 March 2019 % | 31 March 2018 % | 31 Dec. 2018 % | |
26 | Loans and guarantees in per cent, by sector and industry | |||
Public authorities | 0.0 | 0.1 | 0.1 | |
Business customers: | ||||
Agriculture, hunting and forestry | ||||
Cattle farming etc. | 1.3 | 1.8 | 1.3 | |
Pig farming etc. | 1.6 | 1.5 | 1.6 | |
Other agriculture, hunting and forestry | 5.5 | 4.4 | 5.2 | |
Fisheries | 2.4 | 2.5 | 2.5 | |
Industry and raw materials extraction | 3.1 | 1.8 | 2.9 | |
Energy supply | 1.7 | 2.6 | 1.3 | |
Wind turbine manufacturing | 5.6 | 10.7 | 5.8 | |
Building and construction | 3.4 | 3.2 | 3.2 | |
Trade | 3.9 | 3.3 | 3.8 | |
Transport, hotels and restaurants | 1.6 | 1.3 | 1.6 | |
Information and communication | 0.4 | 0.3 | 0.4 | |
Finance and insurance | 6.6 | 12.8 | 9.9 | |
Real property | ||||
First mortgage without prior creditors | 10.5 | 16.2 | 10.6 | |
Other real property financing | 4.7 | 2.3 | 4.6 | |
Other business customers | 7.5 | 7.0 | 7.8 | |
Total business customers | 59.8 | 71.7 | 62.5 | |
Private individuals | 40.2 | 28.2 | 37.4 | |
Total | 100.0 | 100.0 | 100.0 |
Main figures
Summary of income statement (DKK million) | Q1 2019 | Q1 2018 | Full year 2018 |
Net interest income | 292 | 164 | 926 |
Dividends from shares etc. | 0 | 1 | 28 |
Net fee and commission income | 191 | 80 | 491 |
Net interest and fee income | 483 | 245 | 1,445 |
Value adjustments | +70 | +80 | +180 |
Other operating income | 1 | 1 | 6 |
Staff and administration costs | 198 | 76 | 705 |
Amortisation, depreciation and write-downs on intangible and tangible assets | 6 | 6 | 23 |
Other operating expenses | 1 | 1 | 3 |
Impairment charges for loans and receivables etc. | -27 | +26 | -87 |
Results from investments in associated companies and group undertakings | 0 | 0 | 0 |
Profit before tax | 322 | 269 | 813 |
Tax | 63 | 45 | 150 |
Net profit for the period | 259 | 224 | 663 |
Main figures from the balance sheet (DKK million) | 31 March 2019 | 31 March 2018 | 31 Dec. 2018 |
Loans and other receivables at amortised cost | 34,195 | 19,925 | 33,350 |
Deposits and other debt including pooled schemes | 37,439 | 19,511 | 36,993 |
Subordinated debt | 1,453 | 372 | 1,448 |
Equity | 7,071 | 3,785 | 7,189 |
Balance sheet total | 50,266 | 27,004 | 49,651 |
The Danish FSA’s official key figures / ratios etc.
for Danish banks
Q1 2019 | Q1 2018 | 2018 | ||
Capital ratios: | ||||
Total capital ratio | % | 17.7 | 17.6 | 18.8 |
Tier 1 capital ratio | % | 14.1 | 16.1 | 15.0 |
Individual solvency requirement | % | 9.3 | 9.0 | 9.3 |
MREL requirement | % | 20.2 | - | 19.7 |
MREL capital ratio | % | 23.9 | - | 25.2 |
| ||||
Earnings: | ||||
Return on equity before tax | % | 4.5 | 7.1 | 14.8 |
Return on equity after tax | % | 3.6 | 5.9 | 12.1 |
Income/cost ratio | DKK | 2.39 | 5.68 | 1.99 |
Return on assets | % | 0.5 | 0.8 | 1.3 |
Market risk: | ||||
Interest rate risk | % | 1.8 | 0.9 | 1.0 |
Foreign exchange position | % | 0.9 | 1.8 | 1.1 |
Foreign exchange risk | % | 0.0 | 0.0 | 0.0 |
Liquidity risk: | ||||
Liquidity Coverage Ratio (LCR) | % | 177 | 256 | 183 |
Loans and impairments thereon relative to deposits | % | 96.4 | 105.0 | 95.5 |
Credit risk: | ||||
Loans relative to shareholders’ equity | 4.8 | 5.3 | 4.6 | |
Growth in loans | % | 2.5 | 3.0 | 72.9 |
(Pro forma growth in loans in 2018: 7.7%) | ||||
Total large exposures (<175%) | % | 120.8 | - | 106.0 |
Cumulative impairment ratio | % | 4.5 | 4.0 | 4.7 |
Impairment ratio | % | 0.06 | -0.11 | 0.20 |
Proportion of receivables at reduced interest | % | 0.5 | 0.1 | 0.5 |
Share return: | ||||
Earnings per share*/*** | DKK | 870.4 | 1,030.0 | 2,566.5 |
Book value per share*/** | DKK | 23,855 | 17,386 | 24,068 |
Dividend per share* | DKK | 0 | 0 | 1,000 |
Market price relative to earnings per share*/*** | 47.0 | 32.2 | 13.2 | |
Market price relative to book value per share*/** | 1.71 | 1.91 | 1.41 | |
* Calculated on the basis of a denomination of DKK 100 per share. | ||||
** Calculated on the basis of 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 of the period and at 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 2019.
The quarterly 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 2019 and of the result of the bank’s activities for the period 1 January to 31 March 2019. 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, 1 May 2019
General management: | |||||
John Fisker CEO | Claus Andersen General Manager | Jørn Nielsen General Manager | Carl Pedersen General Manager | ||
Board of directors: | |||||
Martin Krogh Pedersen Chairman | Mads Hvolby Deputy Chairman | Jens Møller Nielsen Deputy Chairman | |||
Morten Jensen | Jon Steingrim Johnsen | Jacob Møller | |||
Lone Rejkjær Söllmann | Sten Uggerhøj | ||||
Dan Junker Astrup Employee board member | Gitte E. S. H. Vigsø Employee board member | Arne Ugilt Employee board member | Finn Aaen Employee board member |
Attachment