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4 August 2021
Ringkjøbing Landbobank’s interim report for the first half of 2021
The bank delivers core earnings of DKK 727 million and profit before tax of DKK 716 million in the first half of 2021. The profit before tax is equivalent to a return on equity of 17.4% p.a.
Core earnings
| (DKK million) | H1 2021 | H1 2020 | 2020 | 2019 | 2018 | 2017 |
| Total core income | 1,179 | 1,061 | 2,179 | 2,116 | 2,001 | 1,917 |
| Total expenses and depreciation | 404 | 390 | 788 | 805 | 866 | 845 |
| Core earnings before impairment charges for loans | 775 | 671 | 1,391 | 1,311 | 1,135 | 1,072 |
| Impairment charges for loans etc. | -48 | -141 | -223 | -100 | -43 | -70 |
| Core earnings | 727 | 530 | 1,168 | 1,211 | 1,092 | 1,002 |
| Result for the portfolio etc. | -3 | -41 | -9 | +49 | +77 | +84 |
| Special costs | 8 | 8 | 15 | 15 | 217 | 22 |
| Profit before tax | 716 | 481 | 1,144 | 1,245 | 952 | 1,064 |
Highlights of the first half of 2021
·The profit before tax is DKK 716 million, equivalent to a return on equity of 17.4% p.a.
·Core income increases by 11% to DKK 1,179 million following a high level of activity in the first half of the year
·Expenses increase by 3% to DKK 404 million
·The rate of costs decreases to 34% in the half-year
·Continued increase in new customers results in growth of 6% in the bank’s loans compared to the end of June 2020
·The expectations for profit before tax were upwardly adjusted to DKK 1,200-1,500 million in June
·An extra share buy-back programme of DKK 242.5 million is planned to start on 1 October 2021
·The purchase of BIL Danmark adds more clients and strengthens the bank’s position in private banking
| Yours sincerely |
| Ringkjøbing Landbobank John Fisker |
Management’s review
Core income
Interest
Net interest income was DKK 652 million in the first half of 2021, compared to DKK 616 million in the same period in 2020, an increase of 6%. The bank is highly satisfied with this development.
The development is partly attributable to a 6% increase in lending compared to the end of June 2020. The increase in lending is broadly based and relates to both niches and retail.
A further reason for the positive development in interest is that the bank lowered the threshold for negative interest on personal customers’ deposits to DKK 100,000 with effect from the beginning of January 2021.
Fee, commission and foreign exchange income
Fee, commission and foreign exchange income amounted to DKK 439 million in the first half of 2021, compared to DKK 374 million in the same period in 2020, an increase of 17%. The bank is also highly satisfied with this development, and the increase reflects a very high level of activity – especially in the first quarter of the year. However, the activity level remained high in the second quarter of 2021.
The bank’s focus on the private banking segment has had a positive effect on the “Securities trading”, “Foreign exchange income” and “Asset management and custody accounts” items in particular.
Due to the high level of activity and the continued increase in new customers, the items “Guarantee commission and mortgage credit commission etc.” and “Loan fees” also developed positively compared to the first half of 2020.
Initiatives aimed at normalising the income from payment handling activities were announced with effect from 1 April 2021. These initiatives are reflected in the income from “Payment handling”, which has improved compared to the first half of 2020.
The income from “Other fees and commission” also developed positively compared to the first half of 2020. This is partly attributable to the bank’s focus on the pension and insurance activities.
Sector shares and other operating income
Earnings of DKK 83 million from banking sector shares in the first half of 2021 were DKK 13 million higher than in the first half of 2020, when earnings were DKK 70 million. The earnings derive primarily from returns on the bank’s ownership interests in DLR Kredit, BankInvest (BI Holding) and PRAS.
Other operating income stood at DKK 5 million in the first half of the year, in contrast to 2020, when the figure was DKK 1 million. The other operating income for the year relates primarily to the sale of a property.
Core income
Total core income increased by 11%, from DKK 1,061 million in the first half of 2020 to DKK 1,179 million in 2021.
Expenses, depreciation and write-downs
Total expenses including depreciation and write-downs on tangible assets amounted to DKK 404 million in the first half of 2021, compared to DKK 390 million in 2020, an increase of 3%.
The increase in the cost level relates to the high level of activity, but an even bigger increase in income compensates for this.
The rate of costs was 34.2% in the first half of the year, compared to 36.8% in 2020.
Impairment charges for loans etc.
The bank’s expenditure for losses and impairment charges was DKK 48 million in the first half of 2021 – which breaks down into DKK 19 million in the second quarter of 2021 and DKK 29 million in the first quarter of 2021, compared to DKK 38 million and DKK 75 million respectively in the second and first quarters of 2020.
The credit quality of the bank’s loans portfolio is generally judged to be good. During the first half of 2021 the bank has seen a decrease in the need for individual impairment charges. At the same time the bank judged that an increase in the management estimates for losses and impairment charges was needed.
The bank thus increased its management estimates for losses and impairment charges considerably during 2020, from DKK 126 million to DKK 566 million. During the first half of 2021, the management estimates increased further to a total of DKK 609 million.
A significant part of the management estimates is attributable to the current economic risks associated with the coronavirus pandemic. Until the first quarter of 2021, the vast majority of the bank’s customers managed the economic situation relating to the coronavirus pandemic and the need for new individual impairment charges was thus limited. This pattern continued in the second quarter of 2021. However, it continues to be the bank’s assessment that considerable risks are associated with how the economy will develop as and when the many state aid schemes are scaled down and discontinued etc. The management estimates relating to the coronavirus pandemic are therefore maintained at a relatively high cumulative level.
In June 2021, the EU reached a political agreement on its common agricultural policy for 2023-2027. A consequence of the agreement is a decrease in the direct support paid to farmers. The actual implementation and detailed consequences are not yet known. The bank has consequently allocated a management estimate to losses and impairment charges with regard to this uncertainty.
In addition, certain parts of the bank’s loans to fisheries are affected by significant quota reductions, primarily as a result of the political agreement with Great Britain in connection with Brexit. The economic framework conditions for large parts of Danish fisheries are thus pending political clarification. The bank allocated management estimates related to this risk as early as 2020. The estimate was further increased in the first half of 2021. The bank’s total exposure to the fisheries sector is 1.6% and the majority of this exposure is judged to be covered by first mortgages on fishing vessels and quotas.
The credit quality of the bank’s personal customers is generally judged to be good. The marked price increases on the housing market in the past few quarters have increased the wealth of many of them. On the other hand, the bank is aware that rising house prices may increase its risk exposure – in particular in respect of first-time buyers.
The bank’s total account for impairment charges was DKK 2,273 million at the end of June 2021 compared to DKK 2,205 million at the end of 2020. At the end of June 2021, 51% of the total account for impairment charges was classified as stage 1 or 2 exposures.
The bank’s total loans to customers with suspended calculation of interest were DKK 179 million at the end of June 2021, compared to DKK 211 million at the end of March 2021. The decline relative to the end of December 2020, when the amount was DKK 265 million, thus continued.
Core earnings
Core earnings for the first half of 2021 were DKK 727 million compared to last year’s DKK 530 million, an increase of 37%.
| (DKK million) | H1 2021 | H1 2020 | 2020 | 2019 | 2018 | 2017 |
| Total core income | 1,179 | 1,061 | 2,179 | 2,116 | 2,001 | 1,917 |
| Total expenses and depreciation | 404 | 390 | 788 | 805 | 866 | 845 |
| Core earnings before impairment charges for loans | 775 | 671 | 1,391 | 1,311 | 1,135 | 1,072 |
| Impairment charges for loans etc. | -48 | -141 | -223 | -100 | -43 | -70 |
| Core earnings | 727 | 530 | 1,168 | 1,211 | 1,092 | 1,002 |
Core earnings per share were DKK 25.3 for the first half of 2021 compared to DKK 18.2 in 2020.
| *The statement for 2018 was made on a pro forma basis. |
Result for the portfolio etc.
The result for the portfolio etc. including funding costs for the portfolio was negative by DKK 3 million net for the first half of the year. In the first half of 2020, the result for the portfolio etc. was negative by DKK 41 million net, as a result of the turmoil on the financial markets due to the coronavirus pandemic.
The bank has thus recovered some of the negative result of DKK 10 million for the portfolio in the first quarter of 2021, which was attributable to the increase in the long-term interest rates.
Amortisation and write-downs on intangible assets
The bank treats amortisation and write-downs on intangible assets as a special item, since expensing them 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 8 million in the first half-year, unchanged relative to 2020.
Profit before and after tax
The profit before tax was DKK 716 million, equivalent to a return on average equity of 17.4% p.a.
The profit after tax was DKK 573 million, equivalent to a return on average equity of 13.9% p.a.
Balance sheet items and contingent liabilities
The bank’s balance sheet total at the end of June 2021 stood at DKK 57,123 million, compared to DKK 53,984 million at the end of June 2020.
Relative to June 2020, the bank’s deposits including pooled schemes increased by 4% from DKK 39,670 million to DKK 41,376 million at the end of June 2021, while its loans in the same period increased by 6% from DKK 35,260 million to DKK 37,268 million. Loans increased by 0.2% in the second quarter of 2021.
The bank’s contingent liabilities including guarantees at the end of June 2021 amounted to DKK 11,811 million, compared to DKK 9,379 million at the end of June 2020.
Credit intermediation
In addition to the traditional bank loans shown on its balance sheet, the bank also arranges mortgage loans on behalf of both Totalkredit and DLR Kredit.
The development in the bank’s total credit intermediation is positive by 8% compared to the end of 2020.
The development is shown in the following summary:
| Total credit intermediation | 30 June 2021 DKK million | 30 June 2020 DKK million | 31 Dec. 2020 DKK million |
| Loans and other receivables at amortised cost | 37,268 | 35,260 | 36,241 |
| Arranged mortgage loans and funded home loans – Totalkredit | 41,708 | 37,720 | 39,454 |
| Arranged mortgage loans – DLR Kredit | 9,638 | 9,291 | 9,511 |
| Total | 88,614 | 82,271 | 85,206 |
Securities and market risk
The item “Shares etc.” amounted to DKK 1,373 million at the end of June 2021, with DKK 27 million in listed shares and investment fund certificates and DKK 1,346 million in sector shares etc., mainly in the companies DLR Kredit, BI Holding and PRAS.
The bond portfolio amounted to DKK 6,966 million, of which the vast majority consisted of AAA-rated Danish government and mortgage credit bonds.
The total interest rate risk – impact on profit of a one percentage point change in interest level – was computed as 1.1% of the bank’s tier 1 capital on 30 June 2021.
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 half of 2021:
| Risk in DKK million | Risk relative to equity end of period in % | ||
| Highest risk of loss | 15.0 | 0.18% | |
| Lowest risk of loss | 7.4 | 0.09% | |
| Average risk of loss | 11.5 | 0.14% | |
| End-of-period risk of loss | 13.6 | 0.16% | |
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.
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 1.2 billion, balanced by DKK 10.7 billion in short-term deposits in Danmarks Nationalbank, the central bank of Denmark, and in liquid tradable securities.
The bank’s deposits (excluding pooled schemes) and equity exceeded its loans by DKK 7.3 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 1.1 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 30 June 2021, the bank’s LCR was 185%, which thus met the statutory requirement by a good margin.
Capital structure
The bank’s equity at the beginning of 2021 was DKK 8,146 million. The profit for the period must be added to this, while the dividend paid and the value of the bank’s own shares bought must be subtracted. After this, equity at the end of June 2021 was DKK 8,333 million.
The bank’s total capital ratio and tier 1 capital ratio were 21.3% and 17.7% respectively at the end of June 2021.
| Capital ratios | H1 2021 | H1 2020 | 2020 | 2019 | 2018 |
| Common equity tier 1 capital ratio (%) | 17.7 | 18.1 | 17.5 | 14.7 | 14.6 |
| Tier 1 capital ratio (%) | 17.7 | 18.1 | 17.5 | 14.7 | 14.6 |
| Total capital ratio (%) | 21.3 | 22.1 | 21.1 | 20.0 | 18.4 |
| MREL requirement (%) – fixed by the Danish FSA | 17.9 | 20.2 | 17.9 | 20.7 | 19.7 |
| MREL capital ratio (%) | 28.2 | 30.0 | 26.7 | 27.3 | 24.9 |
A new five-year phasing-in period for the dynamic component of the IFRS 9 transitional arrangements was introduced in 2020. The bank now uses both the static and the dynamic components of the IFRS 9 transitional arrangements, including the simplified approach to recalculation of capital requirements.
Calculated without the IFRS 9 transition programmes, the bank’s total capital ratio was 20.1% and the common equity tier 1 capital ratio 16.4% on 30 June 2021.
In the second quarter of 2021, the bank has started using a new system for calculating the risk-weighted assets. The system was delivered by Moody’s and implemented at the bank’s IT supplier, Bankdata. The system ensures continuous updating of future amendments to acts.
At the end of June 2021, the bank has calculated the individual solvency requirement at 9.3%. To this should be added a capital conservation buffer of 2.5% and a countercyclical buffer of 0%. The total requirement for the bank’s total capital was thus 11.8% at the end of June 2021.
On 22 June 2021, the Systemic Risk Council issued a press release containing a recommendation to re-activate the countercyclical capital buffer at 1.0% with effect from 30 September 2022. The Systemic Risk Council also stated that, unless the build-up of risk in the financial system is curbed considerably, the Council expects to recommend a further increase of the buffer rate to 2.0% by the end of 2022.
On 24 June 2021 the Minister for Industry, Business and Financial Affairs decided to re-activate the countercyclical capital buffer at 1.0% from 30 September 2022.
Compared with the actual total capital of DKK 8.8 billion, the bank had excess capital cover of DKK 4.9 billion relative to the individual solvency requirement, equivalent to 12.0 percentage points at the end of June 2021, and excess capital cover of DKK 3.9 billion compared to the total requirement, equivalent to 9.5 percentage points.
In December 2020, the bank received an MREL requirement of 17.9% applicable from 28 December 2020.
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 at least 17% and the MREL capital ratio for covering the MREL requirement at least 23.5%, including the capital buffers.
All capital targets must be met at the end of the year, but the capital ratios may fluctuate over the year. However, the MREL requirement must always be met.
To comply with the MREL requirement, the bank had established funding by the end of 2017 to meet the requirements for grandfathering of contractual senior capital. DKK 0.9 billion of the funding was included to meet the bank’s MREL requirement at the end of June 2021. In addition, the bank issued non-preferred senior capital totalling the equivalent of DKK 1.3 billion from December 2018 to December 2020. In May and June 2021, the bank has issued additional non-preferred senior capital totalling the equivalent of DKK 638 million, meaning that the bank has now issued non-preferred senior capital to the equivalent of DKK 1.9 billion in total. The bank judges that the issues in the second quarter of 2021 have met the need for issues in 2021.
The bank’s capital for covering the MREL requirement totalled DKK 11.6 billion on 30 June 2021, equivalent to an MREL capital ratio of 28.2%. The excess cover relative to the MREL requirement on 30 June 2021 was thus 10.3 percentage points.
Share buy-back programme and capital reduction
The bank’s annual general meeting of 3 March 2021 renewed the previous authorisation of the board of directors to permit the bank, in accordance with applicable law, to acquire its own shares to a total nominal value of 10% of the bank’s share capital. The share buy-back programme for the period 4 February to 29 July 2021 was completed by DKK 225 million. On 30 June 2021, 305,500 shares had been bought back and, when the programme ended on 29 July 2021, a total of 361,605 shares had been bought back, which the overview below shows. The remainder of the DKK 255 million share buy-back programme, equivalent to DKK 30 million, will be executed in the period 5 August to 30 September 2021.
The general meeting further decided to cancel the 160,600 of the bank's own shares that were bought in 2020. The capital reduction was finalised on 6 May 2021.
On 30 June 2021, the bank’s actual share capital was thus DKK 28,762,221 in nom. DKK 1 shares: see below.
| Number of shares | |
| Beginning of 2021 | 29,228,321 |
| Capital reduction completed by cancellation of own shares | -160,600 |
| After the capital reduction in May 2021 | 29,067,721 |
| DKK 255 million share buy-back programme | |
| Bought under the share buy-back programme at the end of June 2021 | -305,500 |
| Actual number of shares on 30 June 2021 | 28,762,221 |
| DKK 255 million share buy-back programme | |
| Bought under the share buy-back programme in July 2021 | -56,105 |
| Actual number of shares on 31 July 2021 | 28,706,116 |
In August 2021, the bank has received the Danish FSA’s approval of a new share buy-back programme totalling DKK 242.5 million for implementation from 1 October 2021. The amount of the share buy-back corresponds to the part of the 2020 share buy-back programme totalling DKK 300 million, which was not completed in 2020.
The board of directors is expected to make the final decision to initiate the share buy-back programme during the second half of 2021.
The Supervisory Diamond
The bank complies with the Danish FSA’s Supervisory Diamond which contains a number of 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.
| Benchmark | Limit value | H1 2021 | H1 2020 | 2020 | 2019 | 2018 |
| Funding ratio | < 1 | 0.7 | 0.7 | 0.7 | 0.7 | 0.7 |
| Liquidity benchmark | > 100% | 178.6% | 222.5% | 177.6% | 193.2% | 179.5% |
| Total large exposures | < 175% | 108.4% | 103.8% | 99.8% | 121.0% | 106.0% |
| Growth in loans | < 20% | 5.6% | 2.1% | 2.2% | 6.3% | *72.3% |
| Real property exposure | < 25% | 17.9% | 18.5% | 17.9% | 17.5% | 15.8% |
* The increase was mainly caused by the merger with Nordjyske Bank. The pro forma growth in loans for the full year 2018 was 7.0%.
As shown above, Ringkjøbing Landbobank meets all five current limit values by a good margin.
Rating
The bank is rated by the international credit rating agency Moody’s Investors Service.
Moody’s confirmed the bank’s ratings on 30 March 2021, including Aa3 for long-term bank deposits, P-1 for short-term bank deposits and A1 for long-term issuer – all with stable outlook.
BIL Danmark
On 23 June 2021, the bank entered into an agreement with Banque Internationale à Luxembourg S.A., of Luxembourg, regarding takeover of all BIL Danmark’s clients. The Danish FSA’s approval of a Section 204 takeover pursuant to the Danish Financial Business Act was received on 25 June 2021.
BIL Danmark has branches in both Copenhagen and Aarhus. The clients taken over will primarily be attached to the bank’s private banking branches in Holte and Aarhus.
Ringkjøbing Landbobank took over the client portfolio on 1 July 2021. The clients will be transferred to Ringkjøbing Landbobank during the third quarter of 2021 and will continue to be served by BIL Danmark until then.
The takeover comprises
- Loans of DKK 1.2 billion
- Deposits of DKK 0.9 billion
- Assets under management and custody account holdings of DKK 6.0 billion
distributed across approximately 500 families and companies.
In connection with the transaction, eight client-oriented employees were transfered from BIL Danmark to Ringkjøbing Landbobank.
Payment for the client portfolio will take the form of an earn-out, based on earnings over a two-year period. In this connection, intangible assets in the form of client relationships equivalent to DKK 45 million will be capitalised on the bank’s balance sheet.
The purchase of the BIL Danmark client portfolio will strengthen the bank’s position in private banking.
New mobile banking service
The bank’s IT supplier, Bankdata, has supplied a new mobile banking app. The new mobile banking app establishes a new future-proofed communication platform with the customers and also offers good possibilities for customer self-compliance, better security and integration with third parties.
Roll-out of the new mobile banking app will take place during the third quarter of 2021.
Bank of the year
In June 2021, the bank was awarded the accolade of Bank of the Year among major banks for the sixth time in a row.
As in previous years, the award was made by the online news portal FinansWatch in collaboration with the audit and consultancy firm EY. We are very humbled by this, since happy customers and skilled staff are fundamental to a good bank.
Enlarging the head office
The bank has entered into agreements with a number of builders in the second quarter of 2021 and thus made the final decision to enlarge the head office in Ringkøbing. The plan is that the builders will start the construction work in the fourth quarter of 2021 for completion in December 2022. The enlargement will add just over 1,200 m2.
The enlargement of the head office will help ensure that the bank can continue to pursue an organic growth strategy.
Job appraisal reviews
The annual job appraisal reviews were completed in June. We are pleased to note that the preceding evaluation process and subsequent interviews showed that both wellbeing and collaboration in the bank are generally really good – which is particularly gratifying after five quarters coping with the coronavirus.
The coronavirus situation
We see support of our customers and business partners during the coronavirus pandemic as an important part of our task. From the start of the pandemic we have, of course, also placed great emphasis on protecting our employees to lessen the risk of transmission of the virus.
The bank has thus prepared for operating in an ever-changing environment due to the coronavirus situation and if varying kinds of restrictions may be reintroduced.
Expected results for 2021
On publication of the 2020 annual report, the bank announced its expectations for core earnings for 2021 in the range DKK 1,100-1,300 million and profit before tax in the range DKK 1,000-1,300 million.
On 8 June 2021, the bank upwardly adjusted its expectations for 2021, primarily as a result of a better income flow than previously expected, primarily as a result of a continued big increase in customers and a high level of activity.
The upwardly adjusted expectations for the full year are now core earnings in the range DKK 1,300-1,500 million and profit before tax in the range DKK 1,200-1,500 million. The upwardly adjusted expectations are maintained.
Accounting policies
The accounting policies are unchanged relative to those in the submitted and audited 2020 annual report.
Key figures
| H1 2021 | H1 2020 | Full year 2020 | |
| Key figures for the bank (percent) | |||
| Profit before tax as a percentage of average equity, per annum | 17.4 | 12.6 | 14.5 |
| Net profit as a percentage of average equity, per annum | 13.9 | 10.1 | 11.7 |
| Rate of costs | 34.2 | 36.8 | 36.2 |
| Common equity tier 1 capital ratio | 17.7 | 17.9 | 17.5 |
| Tier 1 capital ratio | 17.7 | 17.9 | 17.5 |
| Total capital ratio | 21.3 | 21.9 | 21.1 |
| MREL requirement – fixed by the Danish FSA | 17.9 | 20.2 | 17.9 |
| MREL capital ratio | 28.2 | 29.8 | 26.7 |
| Key figures per DKK 1 share (DKK) | |||
| Core earnings | 25.3 | 18.2 | 40.2 |
| Net profit | 24.9 | 13.3 | 31.6 |
| Book value | 289.7 | 261.9 | 280.2 |
| Share price, end of period | 636.0 | 468.5 | 554.0 |
| Basis of calculation, number of shares | 28,765,821 | 29,067,721 | 29,067,721 |
Quarterly overviews
Core earnings
| | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | Q3 2019 | Q2 2019 | Q1 2019 |
| (DKK million) | ||||||||||
| Net interest income | 327 | 325 | 321 | 319 | 311 | 305 | 292 | 294 | 296 | 291 |
| Net fee and commission income excluding securities trading | 166 | 159 | 156 | 147 | 136 | 152 | 154 | 163 | 159 | 150 |
| Income from sector shares etc. | 43 | 40 | 43 | 38 | 35 | 35 | 36 | 36 | 36 | 37 |
| Foreign exchange income | 13 | 16 | 13 | 9 | 9 | 10 | 8 | 9 | 8 | 6 |
| Other operating income | 1 | 4 | 1 | 0 | 1 | 0 | 5 | 7 | 0 | 1 |
| Total core income excluding securities trading | 550 | 544 | 534 | 513 | 492 | 502 | 495 | 509 | 499 | 485 |
| Securities trading | 29 | 56 | 32 | 39 | 28 | 39 | 35 | 29 | 23 | 41 |
| Total core income | 579 | 600 | 566 | 552 | 520 | 541 | 530 | 538 | 522 | 526 |
| Staff and administration expenses | 195 | 198 | 206 | 179 | 190 | 191 | 202 | 180 | 198 | 198 |
| Depreciation and write-downs on tangible assets | 4 | 3 | 4 | 5 | 2 | 3 | 9 | 8 | 4 | 2 |
| Other operating expenses | 2 | 2 | 2 | 2 | 0 | 4 | 1 | 0 | 2 | 1 |
| Total expenses etc. | 201 | 203 | 212 | 186 | 192 | 198 | 212 | 188 | 204 | 201 |
| Core earnings before impairment charges for loans | 378 | 397 | 354 | 366 | 328 | 343 | 318 | 350 | 318 | 325 |
| Impairment charges for loans and other receivables etc. | -19 | -29 | -38 | -44 | -66 | -75 | -25 | -26 | -24 | -25 |
| Core earnings | 359 | 368 | 316 | 322 | 262 | 268 | 293 | 324 | 294 | 300 |
| Result for the portfolio etc. | +7 | -10 | +15 | +17 | +29 | -70 | -4 | +20 | +7 | +26 |
| Amortisation and write-downs on intangible assets | 4 | 4 | 4 | 3 | 4 | 4 | 4 | 3 | 4 | 4 |
| Profit before tax | 362 | 354 | 327 | 336 | 287 | 194 | 285 | 341 | 297 | 322 |
| Tax | 71 | 72 | 64 | 64 | 60 | 36 | 62 | 66 | 76 | 63 |
| Net profit | 291 | 282 | 263 | 272 | 227 | 158 | 223 | 275 | 221 | 259 |
Quarterly overviews – continued
Balance sheet items and contingent liabilities
| | End of Q2 2021 | End of Q1 2021 | End of Q4 2020 | End of Q3 2020 | End of Q2 2020 | End of Q1 2020 | End of Q4 2019 | End of Q3 2019 | End of Q2 2019 | End of Q1 2019 |
| (DKK million) | ||||||||||
| Loans | 37,268 | 37,210 | 36,241 | 35,479 | 35,260 | 36,130 | 35,465 | 34,757 | 34,528 | 34,195 |
| Deposits including pooled schemes | 41,376 | 41,766 | 39,639 | 39,204 | 39,670 | 37,051 | 38,128 | 38,554 | 39,070 | 37,439 |
| Equity | 8,333 | 8,132 | 8,146 | 7,884 | 7,612 | 7,380 | 7,610 | 7,426 | 7,231 | 7,071 |
| Balance sheet total | 57,123 | 56,845 | 54,862 | 53,956 | 53,984 | 51,531 | 52,941 | 53,601 | 52,426 | 50,266 |
| Contingent liabilities | 11,811 | 10,370 | 9,812 | 9,590 | 9,379 | 9,992 | 9,665 | 10,836 | 10,466 | 7,976 |
Statement of capital
| | End of Q2 2021 | End of Q1 2021 | End of Q4 2020 | End of Q3 2020 | End of Q2 2020 | End of Q1 2020 | End of Q4 2019 | End of Q3 2019 | End of Q2 2019 | End of Q1 2019 |
| (DKK million) | ||||||||||
| Common equity tier 1 | 7,274 | 7,122 | 7,277 | 7,049 | 6,973 | 6,109 | 6,072 | 5,624 | 5,441 | 5,284 |
| Tier 1 capital | 7,274 | 7,122 | 7,277 | 7,049 | 6,973 | 6,109 | 6,072 | 5,624 | 5,441 | 5,284 |
| Total capital | 8,763 | 8,614 | 8,774 | 8,553 | 8,507 | 8,009 | 8,242 | 7,786 | 6,854 | 6,667 |
| MREL capital | 11,596 | 10,837 | 11,112 | 11,587 | 11,580 | 10,985 | 11,248 | 10,790 | 9,551 | 9,033 |
| Total risk exposure | 41,063 | 42,271 | 41,561 | 39,682 | 38,900 | 41,444 | 41,223 | 39,547 | 40,106 | 38,308 |
| (Percent) | ||||||||||
| Common equity tier 1 capital ratio | 17.7 | 16.8 | 17.5 | 17.8 | 17.9 | 14.7 | 14.7 | 14.2 | 13.6 | 13.8 |
| Tier 1 capital ratio | 17.7 | 16.8 | 17.5 | 17.8 | 17.9 | 14.7 | 14.7 | 14.2 | 13.6 | 13.8 |
| Total capital ratio | 21.3 | 20.4 | 21.1 | 21.6 | 21.9 | 19.3 | 20.0 | 19.7 | 17.1 | 17.4 |
| MREL capital ratio | 28.2 | 25.6 | 26.7 | 29.2 | 29.8 | 26.5 | 27.3 | 27.3 | 23.8 | 23.6 |
Statements of income and comprehensive income
| Note | H1 2021 DKK 1,000 | H1 2020 DKK 1,000 | Full year 2020 DKK 1,000 | |
| 1 | Interest income | 704,063 | 680,406 | 1,373,215 |
| 2 | Interest expenses | 45,476 | 62,799 | 120,910 |
| Net interest income | 658,587 | 617,607 | 1,252,305 | |
| 3 | Dividends from shares etc. | 73,048 | 71,106 | 71,241 |
| 4 | Fee and commission income | 454,908 | 398,037 | 814,821 |
| 4 | Fee and commission expenses | 44,922 | 42,604 | 85,545 |
| Net interest and fee income | 1,141,621 | 1,044,146 | 2,052,822 | |
| 5 | Value adjustments | +34,528 | -19,850 | +126,079 |
| Other operating income | 4,751 | 619 | 2,054 | |
| 6,7 | Staff and administration expenses | 392,539 | 380,689 | 765,933 |
| Amortisation, depreciation and write-downs on intangible and tangible assets | 14,544 | 12,866 | 29,241 | |
| Other operating expenses | 4,018 | 4,218 | 8,110 | |
| 8,12 | Impairment charges for loans and other receivables etc. | -53,564 | -145,938 | -233,348 |
| Results from investments in associated companies and group undertakings | 0 | 0 | -13 | |
| Profit before tax | 716,235 | 481,204 | 1,144,310 | |
| 9 | Tax | 143,050 | 95,952 | 224,596 |
| Net profit | 573,185 | 385,252 | 919,714 | |
| Other comprehensive income: | ||||
| Value changes in pension liabilities | 0 | 0 | -561 | |
| Total comprehensive income for the period | 573,185 | 385,252 | 919,153 | |
Core earnings
| Note | H1 2021 DKK 1,000 | H1 2020 DKK 1,000 | Full year 2020 DKK 1,000 | |
| Net interest income | 651,865 | 616,265 | 1,255,816 | |
| 4 | Net fee and commission income excluding securities trading | 325,164 | 288,490 | 591,147 |
| Income from sector shares etc. | 82,834 | 69,626 | 150,935 | |
| 4 | Foreign exchange income | 29,113 | 18,725 | 40,759 |
| Other operating income | 4,751 | 619 | 2,054 | |
| Total core income excluding securities trading | 1,093,727 | 993,725 | 2,040,711 | |
| 4 | Securities trading | 84,822 | 66,943 | 138,129 |
| Total core income | 1,178,549 | 1,060,668 | 2,178,840 | |
| 6,7 | Staff and administration expenses | 392,539 | 380,689 | 765,933 |
| Depreciation and write-downs on tangible assets | 7,044 | 5,366 | 14,241 | |
| Other operating expenses | 4,018 | 4,218 | 8,110 | |
| Total expenses etc. | 403,601 | 390,273 | 788,284 | |
| Core earnings before impairment charges for loans | 774,948 | 670,395 | 1,390,556 | |
| Impairment charges for loans and other receivables etc. | -48,416 | -140,790 | -223,052 | |
| Core earnings | 726,532 | 529,605 | 1,167,504 | |
| Result for the portfolio etc. | -2,797 | -40,901 | -8,194 | |
| Amortisation and write-downs on intangible assets | 7,500 | 7,500 | 15,000 | |
| Profit before tax | 716,235 | 481,204 | 1,144,310 | |
| 9 | Tax | 143,050 | 95,952 | 224,596 |
| Net profit | 573,185 | 385,252 | 919,714 | |
Balance sheet
| Note | 30 June 2021 DKK 1,000 | 30 June 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
| Assets | ||||
| Cash in hand and demand deposits with central banks | 3,579,716 | 688,104 | 659,004 | |
| 10 | Receivables from credit institutions and central banks | 223,034 | 3,950,526 | 3,376,233 |
| 11,12,13 | Total loans and other receivables at amortised cost | 37,268,165 | 35,259,875 | 36,241,166 |
| Loans and other receivables at amortised cost | 36,153,561 | 34,021,803 | 35,088,380 | |
| Wind turbine loans etc. with direct funding | 1,114,604 | 1,238,072 | 1,152,786 | |
| 14 | Bonds at fair value | 6,965,697 | 6,575,542 | 6,636,965 |
| 15 | Shares etc. | 1,373,038 | 1,297,597 | 1,385,807 |
| Investments in associated companies | 482 | 457 | 482 | |
| Investments in group undertakings | 11,997 | 12,035 | 11,997 | |
| 16 | Assets linked to pooled schemes | 5,159,665 | 4,240,387 | 4,700,080 |
| 17 | Intangible assets | 1,027,338 | 1,042,338 | 1,034,838 |
| Total land and buildings | 212,660 | 221,320 | 215,910 | |
| Investment properties | 7,667 | 11,567 | 7,667 | |
| Domicile properties | 177,803 | 189,735 | 186,971 | |
| Domicile properties (leasing) | 27,190 | 20,018 | 21,272 | |
| Other tangible assets | 15,871 | 18,466 | 17,626 | |
| Current tax assets | 0 | 0 | 24,249 | |
| Deferred tax assets | 18,985 | 1,828 | 17,868 | |
| Temporary assets | 6,368 | 9,115 | 6,368 | |
| Other assets | 1,242,803 | 648,719 | 510,327 | |
| Prepayments | 17,106 | 17,964 | 23,209 | |
| Total assets | 57,122,925 | 53,984,273 | 54,862,129 | |
Balance sheet – continued
| Note | 30 June 2021 DKK 1,000 | 30 June 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
| Liabilities and equity | ||||
| 18 | Debt to credit institutions and central banks | 2,256,658 | 2,106,397 | 2,448,918 |
| Total deposits and other debt | 41,375,546 | 39,670,395 | 39,638,645 | |
| 19 | Deposits and other debt | 36,215,881 | 35,430,008 | 34,938,565 |
| Deposits in pooled schemes | 5,159,665 | 4,240,387 | 4,700,080 | |
| 20 | Issued bonds at amortised cost | 2,969,715 | 2,363,398 | 2,361,796 |
| Preferred senior capital | 1,024,285 | 1,034,703 | 1,032,489 | |
| Non-preferred senior capital | 1,945,430 | 1,328,695 | 1,329,307 | |
| Current tax liabilities | 73,808 | 17,720 | 0 | |
| Other liabilities | 452,366 | 561,724 | 591,109 | |
| Deferred income | 1,976 | 2,129 | 1,728 | |
| Total debt | 47,130,069 | 44,721,763 | 45,042,196 | |
| Provisions for pensions and similar liabilities | 2,278 | 2,121 | 2,560 | |
| 12 | Provisions for losses on guarantees | 77,194 | 63,142 | 85,814 |
| 12 | Other provisions for liabilities | 33,540 | 34,597 | 36,534 |
| Total provisions for liabilities | 113,012 | 99,860 | 124,908 | |
| Tier 2 capital | 1,546,998 | 1,551,091 | 1,549,150 | |
| 21 | Total subordinated debt | 1,546,998 | 1,551,091 | 1,549,150 |
| 22 | Share capital | 29,068 | 29,228 | 29,228 |
| Net revaluation reserve under the equity method | 406 | 419 | 406 | |
| Retained earnings | 8,303,372 | 7,581,912 | 7,909,643 | |
| Proposed dividend etc. | - | - | 206,598 | |
| Total shareholders’ equity | 8,332,846 | 7,611,559 | 8,145,875 | |
| Total liabilities and equity | 57,122,925 | 53,984,273 | 54,862,129 | |
| 23 | Own shares | |||
| 24 | Contingent liabilities etc. | |||
| 25 | Assets provided as security | |||
| Credit risk | ||||
| 26 | Loans and guarantees in percent, by sector and industry | |||
| 27 | Loans, guarantees and unutilised credit facilities and loan undertakings by credit quality and IFRS 9 stages | |||
| 28 | 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 |
| As at 30 June 2021: Shareholders’ equity at the end of the previous financial year | 29,228 | 406 | 7,909,643 | 206,598 | 8,145,875 |
| Reduction of share capital | -160 | 160 | 0 | ||
| Dividend etc. paid | -206,598 | -206,598 | |||
| Dividend received on own shares | 1,645 | 1,645 | |||
| Purchase of own shares | -613,400 | -613,400 | |||
| Sale of own shares | 424,304 | 424,304 | |||
| Other equity transactions (employee shares) | 7,835 | 7,835 | |||
| Total comprehensive income for the period | 573,185 | 573,185 | |||
| Shareholders’ equity on the balance sheet date | 29,068 | 406 | 8,303,372 | 0 | 8,332,846 |
| DKK 1,000 | Share capital | Net revaluation reserve under the equity method | Retained earnings | Proposed dividend etc. | Total share-holders’ equity |
| As at 30 June 2020: Shareholders’ equity at the end of the previous financial year | 29,662 | 419 | 7,252,515 | 327,280 | 7,609,876 |
| Reduction of share capital | -434 | 434 | 0 | ||
| Dividend etc. paid | -327,280 | -327,280 | |||
| Dividend received on own shares | 4,966 | 4,966 | |||
| Purchase of own shares | -421,125 | -421,125 | |||
| Sale of own shares | 351,851 | 351,851 | |||
| Other equity transactions (employee shares) | 8,019 | 8,019 | |||
| Total comprehensive income for the period | 385,252 | 385,252 | |||
| Shareholders’ equity on the balance sheet date | 29,228 | 419 | 7,581,912 | 0 | 7,611,559 |
Statement of changes in equity – continued
| 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 2020: Shareholders’ equity at the end of the previous financial year | 29,662 | 419 | 7,252,515 | 327,280 | 7,609,876 |
| Reduction of share capital | -434 | 434 | 0 | ||
| Dividend etc. paid | -327,280 | -327,280 | |||
| Dividend received on own shares | 4,966 | 4,966 | |||
| Purchase of own shares | -680,099 | -680,099 | |||
| Sale of own shares | 611,241 | 611,241 | |||
| Other equity transactions (employee shares) | 8,018 | 8,018 | |||
| Total comprehensive income for the year | -13 | 712,568 | 206,598 | 919,153 | |
| Shareholders’ equity on the balance sheet date | 29,228 | 406 | 7,909,643 | 206,598 | 8,145,875 |
Statement of capital
| 30 June 2021 DKK 1,000 | 30 June 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
| Credit risk | 34,153,097 | 33,777,036 | 35,080,095 |
| Market risk | 3,341,854 | 2,216,053 | 2,912,209 |
| Operational risk | 3,568,376 | 2,906,665 | 3,568,376 |
| Total risk exposure | 41,063,327 | 38,899,754 | 41,560,680 |
| Shareholders’ equity | 8,332,846 | 7,611,559 | 8,145,875 |
| Proposed dividend etc. | - | - | -206,598 |
| Deduction for expected dividend | -196,603 | -147,167 | - |
| Addition for transition programme concerning IFRS 9 | 571,682 | 677,179 | 661,258 |
| Deduction for insufficient coverage for non-performing exposures | -3,715 | - | - |
| Deduction for the sum of equity investments etc. above 10% | -281,387 | -84,170 | -244,297 |
| Deduction for prudent valuation | -18,214 | -16,151 | -16,284 |
| Deduction for intangible assets | -1,027,338 | -1,042,338 | -1,034,838 |
| Deferred tax on intangible assets | 22,898 | 26,198 | 24,548 |
| Deduction of amount of share buy-back programme | -255,000 | -57,504 | -57,504 |
| Actual utilisation of amount of share buy-back programme | 183,855 | 57,504 | 57,504 |
| Deduction for trading limit for own shares | -55,000 | -55,000 | -55,000 |
| Actual utilisation of the trading limit for own shares | 388 | 2,525 | 2,794 |
| Common equity tier 1 | 7,274,412 | 6,972,635 | 7,277,458 |
| Tier 1 capital | 7,274,412 | 6,972,635 | 7,277,458 |
| Tier 2 capital | 1,543,615 | 1,545,435 | 1,543,925 |
| Deduction for the sum of equity investments etc. above 10% | -54,980 | -10,998 | -46,950 |
| Total capital | 8,763,047 | 8,507,072 | 8,774,433 |
| Contractual senior funding (grandfathered) | 891,424 | 1,766,956 | 1,031,852 |
| Non-preferred senior capital | 1,941,169 | 1,305,902 | 1,305,374 |
| MREL capital | 11,595,640 | 11,579,930 | 11,111,659 |
Statement of capital – continued
| 30 June 2021 DKK 1,000 | 30 June 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
| Common equity tier 1 capital ratio (%) | 17.7 | 17.9 | 17.5 |
| Tier 1 capital ratio (%) | 17.7 | 17.9 | 17.5 |
| Total capital ratio (%) | 21.3 | 21.9 | 21.1 |
| MREL capital ratio (%) | 28.2 | 29.8 | 26.7 |
| Pillar I capital requirements | 3,285,066 | 3,111,980 | 3,324,854 |
| Individual solvency requirement (%) | 9.3 | 9.3 | 9.3 |
| Capital conservation buffer (%) | 2.5 | 2.5 | 2.5 |
| Countercyclical buffer (%) | 0.0 | 0.0 | 0.0 |
| Total requirement for the bank’s total capital (%) | 11.8 | 11.8 | 11.8 |
| Excess cover in percentage points relative to individual solvency requirement | 12.0 | 12.6 | 11.8 |
| Excess cover in percentage points relative to total requirement for total capital | 9.5 | 10.1 | 9.3 |
| MREL requirement (%) – fixed by the Danish FSA | 17.9 | 20.2 | 17.9 |
| Excess cover in percentage points relative to MREL requirement | 10.3 | 9.6 | 8.8 |
Notes
| Note | H1 2021 DKK 1,000 | H1 2020 DKK 1,000 | Full year 2020 DKK 1,000 | |
| 1 | Interest income | |||
| Receivables from credit institutions and central banks – net | -6,049 | -8,786 | -15,917 | |
| Loans and other receivables | 616,162 | 629,492 | 1,251,394 | |
| Discounts – amortisation concerning loans taken over etc. | 5,148 | 5,148 | 10,296 | |
| Loans – interest on the impaired part of loans | -25,192 | -31,982 | -59,678 | |
| Bonds – net | 13,694 | 4,820 | 13,188 | |
| Total derivative financial instruments – net | 10,946 | 11,266 | 20,424 | |
| of which currency contracts – net | 4,352 | 8,017 | 9,740 | |
| of which interest-rate contracts – net | 6,594 | 3,249 | 10,684 | |
| Other interest income | 1,223 | 1,762 | 2,862 | |
| Total interest income | 615,932 | 611,720 | 1,222,569 | |
| Negative interest income transferred to interest expenses | ||||
| Receivables from credit institutions and central banks | 2,876 | 9,842 | 17,969 | |
| Bonds | 2,574 | 4,383 | 10,883 | |
| Total derivative financial instruments | 1,527 | 2,988 | 4,064 | |
| of which currency contracts | 320 | 776 | 1,102 | |
| of which interest-rate contracts | 1,207 | 2,212 | 2,962 | |
| Total negative interest income transferred to interest expenses | 6,977 | 17,213 | 32,916 | |
| Negative interest expenses transferred from interest expenses | ||||
| Debt to credit institutions and central banks | 0 | 76 | 161 | |
| Deposits and other debt | 81,154 | 51,397 | 117,569 | |
| Total negative interest expenses transferred from interest expenses | 81,154 | 51,473 | 117,730 | |
| Total interest income | 704,063 | 680,406 | 1,373,215 | |
| of which interest income from collateralised repurchase agreements/reverse repo transactions booked under the item “Loans and other receivables” | -60 | - | - | |
Notes – continued
| Note | H1 2021 DKK 1,000 | H1 2020 DKK 1,000 | Full year 2020 DKK 1,000 | |
| 2 | Interest expenses | |||
| Debt to credit institutions and central banks – net | 4,674 | 6,051 | 11,885 | |
| Deposits and other debt – net | -71,620 | -40,854 | -97,803 | |
| Issued bonds | 10,726 | 10,285 | 21,538 | |
| Subordinated debt | 13,135 | 18,000 | 32,003 | |
| Other interest expenses | 430 | 631 | 2,641 | |
| Total interest expenses | -42,655 | -5,887 | -29,736 | |
| Negative interest expenses transferred to interest income | ||||
| Debt to credit institutions and central banks | 0 | 76 | 161 | |
| Deposits and other debt | 81,154 | 51,397 | 117,569 | |
| Total negative interest expenses transferred to interest income | 81,154 | 51,473 | 117,730 | |
| Negative interest income transferred from interest income | ||||
| Receivables from credit institutions and central banks | 2,876 | 9,842 | 17,969 | |
| Bonds | 2,574 | 4,383 | 10,883 | |
| Total derivative financial instruments | 1,527 | 2,988 | 4,064 | |
| of which currency contracts | 320 | 776 | 1,102 | |
| of which interest-rate contracts | 1,207 | 2,212 | 2,962 | |
| Total negative interest income transferred from interest income | 6,977 | 17,213 | 32,916 | |
| Total interest expenses | 45,476 | 62,799 | 120,910 | |
| 3 | Dividends from shares etc. | |||
| Shares | 73,048 | 71,106 | 71,241 | |
| Total dividends from shares etc. | 73,048 | 71,106 | 71,241 | |
| 4 | Gross fee and commission income | |||
| Securities trading | 93,884 | 75,915 | 154,196 | |
| Asset management and custody accounts | 89,488 | 81,868 | 165,388 | |
| Payment handling | 55,944 | 49,041 | 100,790 | |
| Loan fees | 50,796 | 41,489 | 91,361 | |
| Guarantee commission and mortgage credit commission etc. | 119,421 | 108,865 | 224,817 | |
| Other fees and commission | 45,375 | 40,859 | 78,269 | |
| Total gross fee and commission income | 454,908 | 398,037 | 814,821 | |
| Net fee and commission income | ||||
| Securities trading | 84,822 | 66,943 | 138,129 | |
| Asset management and custody accounts | 81,033 | 72,547 | 150,012 | |
| Payment handling | 37,967 | 31,979 | 63,072 | |
| Loan fees | 44,648 | 37,938 | 82,039 | |
| Guarantee commission and mortgage credit commission etc. | 119,421 | 108,865 | 224,817 | |
| Other fees and commission | 42,095 | 37,161 | 71,207 | |
| Total net fee and commission income | 409,986 | 355,433 | 729,276 | |
| Foreign exchange income | 29,113 | 18,725 | 40,759 | |
| Total net fee, commission and foreign exchange income | 439,099 | 374,158 | 770,035 | |
Notes – continued
| Note | H1 2021 DKK 1,000 | H1 2020 DKK 1,000 | Full year 2020 DKK 1,000 | |
| 5 | Value adjustments | |||
| Other loans and receivables, fair value adjustment | -2,577 | 1,453 | 1,292 | |
| Bonds | -16,741 | -30,958 | 10,658 | |
| Shares etc. | 12,145 | -5,409 | 76,441 | |
| Foreign exchange | 29,113 | 18,725 | 40,759 | |
| Total derivative financial instruments | -15,339 | 23,894 | 24,106 | |
| of which currency contracts | -19,887 | 21,332 | 22,235 | |
| of which interest-rate contracts | 4,549 | 2,556 | 1,870 | |
| of which share contracts | -1 | 6 | 1 | |
| Assets linked to pooled schemes | 271,792 | -196,275 | 124,574 | |
| Deposits in pooled schemes | -271,792 | 196,275 | -124,574 | |
| Issued bonds etc. | 27,927 | -27,555 | -27,177 | |
| Total value adjustments | 34,528 | -19,850 | 126,079 | |
| 6 | Staff and administration expenses | |||
| Payments and fees to general management, board of directors and shareholders’ committee | ||||
| General management | 8,933 | 7,965 | 17,174 | |
| Board of directors | 2,050 | 1,585 | 3,170 | |
| Shareholders’ committee | 0 | 0 | 857 | |
| Total | 10,983 | 9,550 | 21,201 | |
| Staff expenses | ||||
| Salaries | 178,818 | 178,657 | 344,570 | |
| Pensions | 18,938 | 21,761 | 41,958 | |
| Social security expenses | 3,042 | 3,367 | 5,244 | |
| Costs depending on number of staff | 29,690 | 30,350 | 60,840 | |
| Total | 230,488 | 234,135 | 452,612 | |
| Other administration expenses | 151,068 | 137,004 | 292,120 | |
| Total staff and administration expenses | 392,539 | 380,689 | 765,933 | |
| 7 | Number of full-time employees | |||
| Average number of employees during the period converted into full-time employees | 614 | 645 | 632 | |
| Number of full-time employees at the end of the period | 612 | 640 | 612 | |
| 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 | 68,209 | 184,363 | 172,975 | |
| Actual realised net losses | 10,547 | -6,443 | 120,051 | |
| Interest on the impaired part of loans | -25,192 | -31,982 | -59,678 | |
| Total impairment charges for loans and other receivables etc. | 53,564 | 145,938 | 233,348 | |
Notes – continued
| Note | H1 2021 DKK 1,000 | H1 2020 DKK 1,000 | Full year 2020 DKK 1,000 | |
| 9 | Tax | |||
| Tax calculated on income for the year | 137,350 | 91,600 | 223,794 | |
| Adjustment of deferred tax | -2,636 | 2,004 | -3,689 | |
| Adjustment of tax calculated for previous years | 8,336 | 2,348 | 4,491 | |
| Total tax | 143,050 | 95,952 | 224,596 | |
| Effective tax rate (%): | ||||
| Tax rate currently paid by the bank | 22.0 | 22.0 | 22.0 | |
| Non-taxable income and non-deductible costs* | -2.8 | -2.6 | -2.5 | |
| Adjustment of tax calculated for previous years etc. | 0.8 | 0.5 | 0.1 | |
| Total effective tax rate | 20.0 | 19.9 | 19.6 | |
| * Primarily value adjustment of and dividends from sector shares. | ||||
| Note | 30 June 2021 DKK 1,000 | 30 June 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
| 10 | Receivables from credit institutions and central banks | |||
| Demand | 173,034 | 267,102 | 114,751 | |
| Up to and including 3 months | 0 | 3,633,424 | 3,211,482 | |
| More than 1 year and up to and including 5 years | 5,000 | 5,000 | 5,000 | |
| More than 5 years | 45,000 | 45,000 | 45,000 | |
| Total receivables from credit institutions and central banks | 223,034 | 3,950,526 | 3,376,233 | |
| 11 | Loans and other receivables at amortised cost | |||
| Demand | 4,296,466 | 3,185,101 | 3,859,843 | |
| Up to and including 3 months | 2,699,357 | 2,768,568 | 1,252,486 | |
| More than 3 months and up to and including 1 year | 6,124,764 | 6,361,359 | 7,954,602 | |
| More than 1 year and up to and including 5 years | 10,939,389 | 10,163,551 | 10,053,336 | |
| More than 5 years | 13,208,189 | 12,781,296 | 13,120,899 | |
| Total loans and other receivables at amortised cost | 37,268,165 | 35,259,875 | 36,241,166 | |
| of which collateralised repurchase agreements/reverse repo transactions | 20,552 | - | - | |
Notes – continued
| Note | Stage 1 DKK 1,000 | Stage 2 DKK 1,000 | Stage 3 DKK 1,000 | Total DKK 1,000 | |
| 12 | Impairment charges for loans and other receivables and provisions for losses on guarantees, unutilised credit facilities and loan undertakings | ||||
| Impairment charges and provisions – by stages | |||||
| As at 30 June 2021 | |||||
| Loans and other receivables at amortised cost | 249,147 | 840,023 | 1,072,925 | 2,162,095 | |
| Guarantees | 19,528 | 16,671 | 40,995 | 77,194 | |
| Unutilised credit facilities and loan undertakings | 13,876 | 19,664 | 0 | 33,540 | |
| Total impairment charges and provisions by stages | 282,551 | 876,358 | 1,113,920 | 2,272,829 | |
| of which management estimates | 130,081 | 279,666 | 199,190 | 608,937 | |
| As at 30 June 2020 | |||||
| Loans and other receivables at amortised cost | 206,485 | 1,026,425 | 885,359 | 2,118,269 | |
| Guarantees | 18,467 | 23,698 | 20,977 | 63,142 | |
| Unutilised credit facilities and loan undertakings | 16,601 | 17,996 | 0 | 34,597 | |
| Total impairment charges and provisions by stages | 241,553 | 1,068,119 | 906,336 | 2,216,008 | |
| of which management estimates | 95,152 | 328,620 | 100,000 | 523,772 | |
| As at 31 December 2020 | |||||
| Loans and other receivables at amortised cost | 304,520 | 839,303 | 938,449 | 2,082,272 | |
| Guarantees | 23,665 | 23,886 | 38,263 | 85,814 | |
| Unutilised credit facilities and loan undertakings | 18,659 | 17,875 | 0 | 36,534 | |
| Total impairment charges and provisions by stages | 346,844 | 881,064 | 976,712 | 2,204,620 | |
| of which management estimates | 205,137 | 255,284 | 105,765 | 566,186 | |
| Note | 30 June 2021 DKK 1,000 | 30 June 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
| 12 | Impairment charges for loans and other receivables and provisions for losses on guarantees, unutilised credit facilities and loan undertakings – continued | |||
| In addition to the above, a discount on loans and guarantees taken over from Nordjyske Bank amounted to | 19,950 | 30,246 | 25,099 | |
| 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 | 247,609 | 507,433 | 507,433 | |
| Change during the period | -45,500 | -186,248 | -259,824 | |
| Total stage 3 impairment charges and provisions taken over | 202,109 | 321,185 | 247,609 | |
Notes – continued
| Note | Stage 1 DKK 1,000 | Stage 2 DKK 1,000 | Stage 3 DKK 1,000 | Total DKK 1,000 | Impair-ment charges etc. taken to income state-ment DKK 1,000 | |
| 12 | Impairment charges for loans and other receivables and provisions for losses on guarantees, unutilised credit facilities and loan undertakings – continued | |||||
| Impairment charges and provisions | ||||||
| As at 30 June 2021 | ||||||
| Impairment charges and provisions at the end of the previous financial year | 346,844 | 881,064 | 976,712 | 2,204,620 | - | |
| Impairment charges and provisions for new exposures during the period, including new accounts for existing customers | 61,579 | 32,439 | 53,075 | 147,093 | 147,093 | |
| Reversed impairment charges and provisions for repaid accounts | -52,601 | -81,391 | -58,519 | -192,511 | -192,511 | |
| Transfer of impairment charges and provisions at beginning of period to stage 1 | 100,798 | -95,320 | -5,478 | 0 | 0 | |
| Transfer of impairment charges and provisions at beginning of period to stage 2 | -9,119 | 27,340 | -18,221 | 0 | 0 | |
| Transfer of impairment charges and provisions at beginning of period to stage 3 | -1,320 | -39,310 | 40,630 | 0 | 0 | |
| Impairment charges and provisions during the year resulting from credit risk change | -163,630 | 151,536 | 142,270 | 130,176 | 130,176 | |
| Previously written down, now definitively lost | - | 0 | -16,549 | -16,549 | - | |
| Lost, not previously written down | - | - | - | 9,024 | ||
| Received on receivables etc. previously written off | - | - | - | - | -40,218 | |
| Total impairment charges and provisions | 282,551 | 876,358 | 1,113,920 | 2,272,829 | 53,564 | |
| of which regarding credit institutions etc. | 10,871 | 0 | 0 | 10,871 | 8,866 | |
Notes – continued
| Note | Stage 1 DKK 1,000 | Stage 2 DKK 1,000 | Stage 3 DKK 1,000 | Total DKK 1,000 | Impair-ment charges etc. taken to income state-ment DKK 1,000 | |
| 12 | Impairment charges for loans and other receivables and provisions for losses on guarantees, unutilised credit facilities and loan undertakings – continued | |||||
| Impairment charges and provisions | ||||||
| 30 June 2020 | ||||||
| Impairment charges and provisions at the end of the previous financial year | 136,729 | 404,006 | 1,490,910 | 2,031,645 | - | |
| Impairment charges and provisions for new exposures during the period, including new accounts for existing customers | 53,772 | 45,382 | 110,374 | 209,528 | 209,528 | |
| Reversed impairment charges and provisions for repaid accounts | -22,567 | -40,101 | -151,183 | -213,851 | -213,851 | |
| Transfer of impairment charges and provisions at beginning of period to stage 1 | 77,271 | -34,537 | -42,734 | 0 | 0 | |
| Transfer of impairment charges and provisions at beginning of period to stage 2 | -6,897 | 612,243 | -605,346 | 0 | 0 | |
| Transfer of impairment charges and provisions at beginning of period to stage 3 | -778 | -3,395 | 4,173 | 0 | 0 | |
| Impairment charges and provisions during the year resulting from credit risk change | 4,023 | 84,521 | 115,536 | 204,080 | 204,080 | |
| Previously written down, now definitively lost | - | - | -15,394 | -15,394 | - | |
| Lost, not previously written down | - | - | - | - | 11,989 | |
| Received on receivables etc. previously written off | - | - | - | - | -65,808 | |
| Total impairment charges and provisions | 241,553 | 1,068,119 | 906,336 | 2,216,008 | 145,938 | |
| of which regarding credit institutions etc. | 2,586 | 0 | 0 | 2,586 | 1,675 | |
Notes – continued
| Note | Stage 1 DKK 1,000 | Stage 2 DKK 1,000 | Stage 3 DKK 1,000 | Total DKK 1,000 | Impair-ment charges etc. taken to income state-ment DKK 1,000 | |
| 12 | Impairment charges for loans and other receivables and provisions for losses on guarantees, unutilised credit facilities and loan undertakings – continued | |||||
| Impairment charges and provisions | ||||||
| As at 31 December 2020 | ||||||
| Impairment charges and provisions at the end of the previous financial year | 136,729 | 404,006 | 1,490,910 | 2,031,645 | - | |
| Impairment charges and provisions for new exposures during the period, including new accounts for existing customers | 110,102 | 86,720 | 122,077 | 318,899 | 318,899 | |
| Reversed impairment charges and provisions for repaid accounts | -35,138 | -70,486 | -180,189 | -285,813 | -285,813 | |
| Transfer of impairment charges and provisions at beginning of period to stage 1 | 147,307 | -58,732 | -88,575 | 0 | 0 | |
| Transfer of impairment charges and provisions at beginning of period to stage 2 | -10,189 | 453,417 | -443,228 | 0 | 0 | |
| Transfer of impairment charges and provisions at beginning of period to stage 3 | -1,573 | -17,205 | 18,778 | 0 | 0 | |
| Impairment charges and provisions during the year resulting from credit risk change | -394 | 83,344 | 153,320 | 236,270 | 236,270 | |
| Previously written down, now definitively lost | - | - | -96,381 | -96,381 | - | |
| Lost, not previously written down | - | - | - | - | 66,781 | |
| Received on receivables etc. previously written off | - | - | - | - | -102,789 | |
| Total impairment charges and provisions | 346,844 | 881,064 | 976,712 | 2,204,620 | 233,348 | |
| of which regarding credit institutions etc. | 2,005 | 0 | 0 | 2,005 | 1,094 | |
Notes – continued
| Note | 30 June 2021 DKK 1,000 | 30 June 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
| 13 | Suspended calculation of interest | |||
| Loans and other receivables with suspended calculation of interest on the balance sheet date | 179,134 | 210,744 | 264,721 | |
| 14 | Bonds at fair value | |||
| Listed on the stock exchange | 6,965,697 | 6,575,542 | 6,636,965 | |
| Total bonds at fair value | 6,965,697 | 6,575,542 | 6,636,965 | |
| 15 | Shares etc. | |||
| Listed on Nasdaq Copenhagen | 8,595 | 5,328 | 10,850 | |
| Investment fund certificates | 18,766 | 20,407 | 29,577 | |
| Unlisted shares at fair value | 11,357 | 12,204 | 14,186 | |
| Sector shares at fair value | 1,334,320 | 1,259,658 | 1,331,194 | |
| Total shares etc. | 1,373,038 | 1,297,597 | 1,385,807 | |
| 16 | Assets linked to pooled schemes | |||
| Cash deposits | 22,193 | 14,296 | 101,854 | |
| Bonds: | ||||
| Other bonds | 1,405,930 | 1,649,986 | 1,513,905 | |
| Total bonds | 1,405,930 | 1,649,986 | 1,513,905 | |
| Shares: | ||||
| Other shares | 767,379 | 583,278 | 672,557 | |
| Investment fund certificates | 2,984,403 | 2,011,417 | 2,411,764 | |
| Total shares | 3,751,782 | 2,594,695 | 3,084,321 | |
| Other items | -20,240 | -18,590 | 0 | |
| Total assets linked to pooled schemes | 5,159,665 | 4,240,387 | 4,700,080 | |
| 17 | Intangible assets | |||
| Goodwill | ||||
| Cost at the end of the previous financial year | 923,255 | 923,255 | 923,255 | |
| Total cost on the balance sheet date | 923,255 | 923,255 | 923,255 | |
| Write-downs at the end of the previous financial year | 0 | 0 | 0 | |
| Total write-downs on the balance sheet date | 0 | 0 | 0 | |
| Total goodwill on the balance sheet date | 923,255 | 923,255 | 923,255 | |
| Customer relationships | ||||
| Cost at the end of the previous financial year | 150,000 | 150,000 | 150,000 | |
| Total cost on the balance sheet date | 150,000 | 150,000 | 150,000 | |
| Amortisation at the end of the previous financial year | 38,417 | 23,417 | 23,417 | |
| Amortisation for the period | 7,500 | 7,500 | 15,000 | |
| Total amortisation on the balance sheet date | 45,917 | 30,917 | 38,417 | |
| Total customer relationships on the balance sheet date | 104,083 | 119,083 | 111,583 | |
| Total intangible assets on the balance sheet date | 1,027,338 | 1,042,338 | 1,034,838 | |
Notes – continued
| Note | 30 June 2021 DKK 1,000 | 30 June 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
| 18 | Debt to credit institutions and central banks | |||
| Demand | 1,086,282 | 700,603 | 711,366 | |
| Up to and including 3 months | 0 | 106,291 | 292,643 | |
| More than 3 months and up to and including 1 year | 70,778 | 163,762 | 385,258 | |
| More than 1 year and up to and including 5 years | 491,573 | 590,736 | 562,413 | |
| More than 5 years | 608,025 | 545,005 | 497,238 | |
| Total debt to credit institutions and central banks | 2,256,658 | 2,106,397 | 2,448,918 | |
| 19 | Deposits and other debt | |||
| Demand | 31,147,768 | 29,139,020 | 29,973,193 | |
| Deposits and other debt with notice: | ||||
| Up to and including 3 months | 461,770 | 936,063 | 418,740 | |
| More than 3 months and up to and including 1 year | 1,619,261 | 1,855,910 | 1,395,528 | |
| More than 1 year and up to and including 5 years | 589,293 | 1,259,521 | 668,580 | |
| More than 5 years | 2,397,789 | 2,239,494 | 2,482,524 | |
| Total deposits and other debt | 36,215,881 | 35,430,008 | 34,938,565 | |
| of which deposits covered by the Guarantee Fund | 61.2% | 62.8% | 64.1% | |
| Distributed as follows: | ||||
| Demand | 31,021,372 | 29,009,745 | 29,849,983 | |
| With notice | 1,353,354 | 1,924,570 | 1,328,132 | |
| Time deposits | 516,455 | 624,097 | 277,918 | |
| Long-term deposit agreements | 966,304 | 1,338,331 | 1,050,783 | |
| Special types of deposits | 2,358,396 | 2,533,265 | 2,431,749 | |
| 36,215,881 | 35,430,008 | 34,938,565 | ||
| 20 | Issued bonds at amortised cost | |||
| More than 1 year and up to and including 5 years | 2,356,502 | 1,676,433 | 1,675,470 | |
| More than 5 years | 613,213 | 686,965 | 686,326 | |
| Total issued bonds at amortised cost | 2,969,715 | 2,363,398 | 2,361,796 | |
| 21 | Subordinated debt | |||
| Tier 2 capital: | ||||
| Fixed-rate loan, principal of DKK 500 million, | ||||
| maturity date 13 June 2028 | 500,000 | 500,000 | 500,000 | |
| Floating-rate loan, principal of EUR 100 million, | ||||
| maturity date 22 August 2029 | 743,615 | 745,435 | 743,925 | |
| Floating-rate loan, principal of DKK 300 million, | ||||
| maturity date 13 June 2030 | 300,000 | 300,000 | 300,000 | |
| Adjustment to amortised cost and fair value adjustment | 3,383 | 5,656 | 5,225 | |
| Total subordinated debt | 1,546,998 | 1,551,091 | 1,549,150 | |
| 22 | Share capital | |||
| Number of DKK 1 shares | ||||
| Beginning of period | 29,228,321 | 29,661,796 | 29,661,796 | |
| Cancelled during the period | -160,600 | -433,475 | -433,475 | |
| End of period | 29,067,721 | 29,228,321 | 29,228,321 | |
| of which reserved for subsequent cancellation | 300,900 | 160,600 | 160,600 | |
| Total share capital | 29,068 | 29,228 | 29,228 | |
Notes – continued
| Note | 30 June 2021 DKK 1,000 | 30 June 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
| 23 | Own shares | |||
| Own shares included in the balance sheet at | 0 | 0 | 0 | |
| Market value | 191,760 | 77,766 | 91,767 | |
| Number of own shares: | ||||
| Beginning of period | 165,644 | 433,721 | 433,721 | |
| Purchased during the period | 999,016 | 1,009,724 | 1,525,629 | |
| Sold during the period | -702,550 | -843,980 | -1,360,231 | |
| Cancelled during the period | -160,600 | -433,475 | -433,475 | |
| End of period | 301,510 | 165,990 | 165,644 | |
| of which reserved for subsequent cancellation | 300,900 | 160,600 | 160,600 | |
| Nominal value of holding of own shares, end of period | 302 | 166 | 166 | |
| Own shares’ proportion of share capital, end of period (%) | 1.0 | 0.6 | 0.6 | |
| 24 | Contingent liabilities etc. | |||
| Contingent liabilities | ||||
| Financial guarantees | 4,371,476 | 2,943,005 | 3,536,326 | |
| Guarantees against losses on mortgage credit loans | 2,849,588 | 2,661,206 | 2,813,424 | |
| Registration and refinancing guarantees | 3,762,824 | 2,925,519 | 2,684,855 | |
| Sector guarantees | 104,802 | 104,802 | 104,802 | |
| Other contingent liabilities | 721,942 | 744,079 | 672,423 | |
| Total contingent liabilities | 11,810,632 | 9,378,611 | 9,811,830 | |
| Other contractual obligations | ||||
| Irrevocable credit commitments etc. | 335,995 | 0 | 0 | |
| Total other contractual obligations | 335,995 | 0 | 0 | |
| 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 | 1,114,604 | 1,238,072 | 1,152,786 | |
| As collateral for clearing and raising of loans, the bank has pledged securities to the central bank of Denmark at a market price of | 162,234 | 309,807 | 168,512 | |
| Amount deposited in a cover-for-liabilities account as security for the Danish Growth Fund up to a specific limit of loss as a consequence of Ringkjøbing Landbobank's ownership interest in Landbrugets Finansieringsbank | 0 | 378 | 0 | |
| Collateral under CSA agreements etc. | 33,256 | 44,110 | 35,193 | |
Notes – continued
| Note | 30 June 2021 percent | 30 June 2020 percent | 31 Dec. 2020 percent | |
| 26 | Loans and guarantees in percent, by sector and industry | |||
| Public authorities | 0.0 | 0.0 | 0.0 | |
| Business customers: | ||||
| Agriculture, hunting and forestry | ||||
| Cattle farming etc. | 1.2 | 1.4 | 1.3 | |
| Pig farming etc. | 1.2 | 1.3 | 1.2 | |
| Other agriculture, hunting and forestry | 4.8 | 5.7 | 5.4 | |
| Fisheries | 1.6 | 2.0 | 1.8 | |
| Industry and raw materials extraction | 2.4 | 2.7 | 2.7 | |
| Energy supply | ||||
| Renewable energy | 6.6 | 6.9 | 7.2 | |
| Other energy supply | 0.3 | 0.3 | 0.3 | |
| Building and construction | 3.2 | 3.4 | 3.3 | |
| Trade | 3.3 | 3.7 | 3.3 | |
| Transport, hotels and restaurants | 1.9 | 2.0 | 2.0 | |
| Information and communication | 0.5 | 0.5 | 0.5 | |
| Finance and insurance | 8.1 | 7.7 | 8.1 | |
| Real property | ||||
| First mortgage without prior creditors | 13.0 | 12.6 | 12.7 | |
| Other real property financing | 4.3 | 4.6 | 4.2 | |
| Other business customers | 6.7 | 6.7 | 7.1 | |
| Total business customers | 59.1 | 61.5 | 61.1 | |
| Private individuals | 40.9 | 38.5 | 38.9 | |
| Total | 100.0 | 100.0 | 100.0 | |
Notes – continued
| Note | Stage 1 DKK 1,000 | Stage 2 DKK 1,000 | Stage 3 DKK 1,000 | Credit-impaired on initial recogni-tion DKK 1,000 | Total DKK 1,000 | Total % | |
| 27 | Loans, guarantees and unutilised credit facilities and loan undertakings by credit quality and IFRS 9 stages | ||||||
| As at 30 June 2021 | |||||||
| Credit quality | |||||||
| High | 52,126,575 | 141,350 | 0 | 0 | 52,267,925 | 73% | |
| Medium | 10,263,306 | 1,620,183 | 0 | 0 | 11,883,489 | 17% | |
| Low | 1,515,242 | 3,842,766 | 0 | 0 | 5,358,008 | 7% | |
| Credit-impaired | 0 | 0 | 1,539,220 | 318,197 | 1,857,417 | 3% | |
| Total | 63,905,123 | 5,604,299 | 1,539,220 | 318,197 | 71,366,839 | 100% | |
| Impairment charges etc. | 282,551 | 876,358 | 911,811 | 202,109 | 2,272,829 | ||
| | |||||||
| As at 30 June 2020 | |||||||
| Credit quality | |||||||
| High | 45,626,332 | 148,067 | 0 | 0 | 45,774,399 | 72% | |
| Medium | 8,688,157 | 1,793,429 | 0 | 0 | 10,481,586 | 16% | |
| Low | 1,745,464 | 4,493,542 | 0 | 0 | 6,239,006 | 10% | |
| Credit-impaired | 0 | 0 | 955,858 | 463,229 | 1,419,087 | 2% | |
| Total | 56,059,953 | 6,435,038 | 955,858 | 463,229 | 63,914,078 | 100% | |
| Impairment charges etc. | 241,553 | 1,068,119 | 585,151 | 321,185 | 2,216,008 | ||
| | |||||||
| As at 31 December 2020 | |||||||
| Credit quality | |||||||
| High | 47,043,274 | 123,728 | 0 | 0 | 47,167,002 | 72% | |
| Medium | 9,525,618 | 1,630,433 | 0 | 0 | 11,156,051 | 17% | |
| Low | 1,640,245 | 3,932,329 | 0 | 0 | 5,572,574 | 8% | |
| Credit-impaired | 0 | 0 | 1,415,013 | 366,909 | 1,781,922 | 3% | |
| Total | 58,209,137 | 5,686,490 | 1,415,013 | 366,909 | 65,677,549 | 100% | |
| Impairment charges etc. | 346,844 | 881,064 | 729,103 | 247,609 | 2,204,620 | ||
Notes – continued
| 28 | Miscellaneous comments |
The statement of core earnings for 2017 and 2018 on pages 1 and 4 was calculated pro forma by adding up figures from Ringkjøbing Landbobank’s statement of the alternative measure of performance “Core earnings” and pro forma figures from Nordjyske Bank, converted and adjusted to Ringkjøbing Landbobank’s statement of the alternative performance measure “Core earnings”. Core earnings per share on page 4 are stated for the “old” Ringkjøbing Landbobank up to and including 2017, pro forma for 2018 and for the merged bank from 2019. The various items presenting the bank’s capital and capital ratios as stated on pages 7, 12, 14, 21, 22 and 38 were adjusted retrospectively in 2020 for the period from the end of the second quarter of 2018 to the end of the second quarter of 2020. The adjustment was made because the Danish FSA advised the bank in 2020 that it cannot include the IFRS 9 addition taken over from Nordjyske Bank in the calculation of the transition programme concerning IFRS 9. The change had a small effect on the various items presenting the bank’s capital and capital ratios. |
Main figures
| Summary of income statement (DKK million) | H1 2021 | H1 2020 | Full year 2020 |
| Net interest income | 659 | 618 | 1,252 |
| Dividends from shares etc. | 73 | 71 | 71 |
| Net fee and commission income | 410 | 355 | 730 |
| Net interest and fee income | 1,142 | 1,044 | 2,053 |
| Value adjustments | +35 | -20 | +126 |
| Other operating income | 5 | 1 | 2 |
| Staff and administration expenses | 393 | 381 | 766 |
| Amortisation, depreciation and write-downs on intangible and tangible assets | 15 | 13 | 29 |
| Other operating expenses | 4 | 4 | 8 |
| Impairment charges for loans and receivables etc. | -54 | -146 | -234 |
| Profit before tax | 716 | 481 | 1,144 |
| Tax | 143 | 96 | 224 |
| Net profit | 573 | 385 | 920 |
| Main figures from the balance sheet (DKK million) | 30 June 2021 | 30 June 2020 | 31 Dec. 2020 |
| Loans and other receivables at amortised cost | 37,268 | 35,260 | 36,241 |
| Deposits and other debt including pooled schemes | 41,376 | 39,670 | 39,639 |
| Subordinated debt | 1,547 | 1,551 | 1,549 |
| Equity | 8,333 | 7,612 | 8,146 |
| Balance sheet total | 57,123 | 53,984 | 54,862 |
The Danish FSA’s official key figures/ratios etc. for Danish banks
| H1 2021 | H1 2020 | 2020 | ||
| Capital ratios: | ||||
| Total capital ratio | % | 21.3 | 22.1 | 21.1 |
| Tier 1 capital ratio | % | 17.7 | 18.1 | 17.5 |
| Individual solvency requirement | % | 9.3 | 9.3 | 9.3 |
| MREL requirement – fixed by the Danish FSA | % | 17.9 | 20.2 | 17.9 |
| MREL capital ratio | % | 28.2 | 30.0 | 26.7 |
| | ||||
| Earnings: | ||||
| Return on equity before tax | % | 8.7 | 6.3 | 14.5 |
| Return on equity after tax | % | 7.0 | 5.1 | 11.7 |
| Income/cost ratio | DKK | 2.54 | 1.89 | 2.10 |
| Return on assets | % | 1.0 | 0.7 | 1.7 |
| Market risk: | ||||
| Interest rate risk | % | 1.1 | 1.2 | 1.0 |
| Foreign exchange position | % | 1.3 | 2.1 | 0.1 |
| Foreign exchange risk | % | 0.0 | 0.0 | 0.0 |
| Liquidity risk: | ||||
| Liquidity Coverage Ratio (LCR) | % | 185 | 239 | 206 |
| Loans and impairments thereon relative to deposits | % | 95.2 | 94.2 | 96.7 |
| Credit risk: | ||||
| Loans relative to shareholders’ equity | 4.5 | 4.6 | 4.4 | |
| Growth in loans | % | 2.8 | -0.6 | 2.2 |
| Total large exposures (< 175%) | % | 108.4 | 103.8 | 99.8 |
| Cumulative impairment ratio | % | 4.4 | 4.7 | 4.6 |
| Impairment ratio | % | 0.10 | 0.31 | 0.48 |
| Proportion of receivables at reduced interest | % | 0.3 | 0.4 | 0.5 |
| Share return: | ||||
| Earnings per share*/*** | DKK | 1,982.3 | 1,321.8 | 3,155.6 |
| Book value per share*/** | DKK | 28,967 | 26,190 | 28,029 |
| Dividend per share* | DKK | 0 | 0 | 700 |
| Market price relative to earnings per share*/*** | 32.1 | 35.4 | 17.6 | |
| Market price relative to book value per share*/** | 2.20 | 1.79 | 1.98 | |
| * 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 and the end of the period. | ||||
Management statement
The board of directors and the general management have today discussed and approved the interim report of Ringkjøbing Landbobank A/S for the period 1 January to 30 June 2021.
The interim 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 interim report provides a true and fair view of the bank’s assets, liabilities and financial position as at 30 June 2021 and of the result of the bank’s activities for the period 1 January to 30 June 2021. 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 interim report has not been audited or reviewed, but the bank’s 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, 4 August 2021
| 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
