Nasdaq Copenhagen
London Stock Exchange
Euronext Dublin
Other stakeholders
27 October 2021
Ringkjøbing Landbobank’s quarterly report for the first three quarters of 2021
The bank delivers core earnings of DKK 1,121 million and profit before tax of DKK 1,105 million. The profit before tax is equivalent to a 17.6% p.a. return on equity.
Core earnings
| (DKK million) | Q1-Q3 2021 | Q1-Q3 2020 | 2020 | 2019 | 2018 | 2017 |
| Total core income | 1,782 | 1,613 | 2,179 | 2,116 | 2,001 | 1,917 |
| Total expenses and depreciation | 600 | 576 | 788 | 805 | 866 | 845 |
| Core earnings before impairment charges for loans | 1,182 | 1,037 | 1,391 | 1,311 | 1,135 | 1,072 |
| Impairment charges for loans etc. | -61 | -185 | -223 | -100 | -43 | -70 |
| Core earnings | 1,121 | 852 | 1,168 | 1,211 | 1,092 | 1,002 |
| Result for the portfolio etc. | -4 | -24 | -9 | +49 | +77 | +84 |
| Special costs | 12 | 11 | 15 | 15 | 217 | 22 |
| Profit before tax | 1,105 | 817 | 1,144 | 1,245 | 952 | 1,064 |
Highlights of the first three quarters of 2021
- The profit before tax is DKK 1,105 million, equivalent to a 17.6% p.a. return on equity
- Core income increases by 11% to DKK 1,782 million following nine months of high activity levels
- Expenses increase by 4% to DKK 600 million
- The rate of costs decreases to 33.7%
- Continued increase in new customers results in growth of 9% in the bank’s loans compared to September 2020
- The purchase of BIL Danmark was satisfactorily completed and implemented in the third quarter
- Image and customer satisfaction are rated among the best in Voxmeter surveys
- The results for the year are expected to be at the upper end of the upwardly adjusted ranges.
Yours sincerely
Ringkjøbing Landbobank
John Fisker
Management’s review
Core income
Interest
Net interest income was DKK 988 million in the first three quarters of 2021, compared to DKK 935 million in the same period in 2020, an increase of 6%. The bank is satisfied with this development.
The development is partly attributable to a 9% increase in lending compared to the end of September 2020 including the clients taken over from BIL Danmark, while the increase excluding them was 7%. The increase in lending is broadly based and relates to both niches and retail.
The interest margin was slightly lower in the third quarter compared to a year ago, although the bank lowered the threshold for negative interest on personal customers’ deposits to DKK 100,000 with effect from the beginning of January 2021. With effect from 1 July 2021, the bank lowered the interest rate on deposits from business customers. The interest margin on the bank’s loans has thus been under pressure.
The deposit interest rate for corporate customers will be lowered by 0.1 percentage points by early November 2021 and by early December 2021 also for private customers. This is due to the lowering of the interest rate by Denmark’s National Bank per 1. October 2021.
Fee, commission, and foreign exchange income
Fee, commission, and foreign exchange income amounted to DKK 657 million in the first three quarters of 2021, compared to DKK 569 million in the same period in 2020, an increase of 15%. The bank is 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 general levels of activity in both the second and third quarters of 2021 continued at a higher level.
The bank’s focus on the private banking segment has had a positive effect on the “Securities trading”, “Asset management and custody accounts” and “Foreign exchange income” items in particular.
Due to the high levels of activity and the continued large increase in new customers, the item “Guarantee commission and mortgage credit commission etc.” also developed positively compared to the first three quarters of 2020. The item “Loan fees” also increased in 2021, although the respective activity level has been declining slightly during 2021.
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 three quarters of 2020.
The income from “Other fees and commission” developed positively compared to 2020. This is partly attributable to the bank’s focus on the pension and insurance activities.
Sector shares and other operating income
Earnings from sector shares totalled DKK 132 million in the first three quarters of 2021, compared to DKK 108 million in the same period in 2020. 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 three quarters 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 1,613 million in 2020 to DKK 1,782 million in 2021.
Expenses, depreciation, and write-downs
Total expenses including depreciation and write-downs on tangible assets amounted to DKK 600 million in the first three quarters of 2021, compared to DKK 576 million in 2020, an increase of 4%.
The increase in the cost level reflects the high levels of activity and the purchase of BIL Danmark.
The rate of costs was 33.7% in the first three quarters of the year, compared to 35.7% in 2020.
Impairment charges for loans etc.
The bank’s expenditure for losses and impairment charges was DKK 13 million in the third quarter of 2021, compared to DKK 19 million in the second quarter and DKK 29 million in the first quarter. The total expenditure for losses and impairment charges was DKK 61 million in the first nine months of the year, compared to DKK 185 million in the same period in 2020.
The bank’s expenditure for losses and impairment charges has thus fallen each quarter since the first quarter of 2020.
The credit quality of the bank’s loans portfolio is generally judged to be good. The negative consequences of the coronavirus pandemic have so far been very limited for the vast majority of the bank’s customers. However, over the last few months we have seen growing challenges for several businesses due to shortages of components and increasing cost prices, including increasing energy prices. There is also still some risk associated with ending of the government’s loan schemes, which has now been postponed to 2022.
The bank increased its management estimates for losses and impairment charges considerably during 2020, from DKK 126 million to DKK 566 million. At the end of the third quarter of 2021, the management estimates increased to DKK 614 million.
Among industry-specific events is the considerable decrease in pig prices during the third quarter. The prices paid to farmers are currently at a level which results in operating losses for the vast majority of pig producers. Loans and guarantees to pig farms accounted for 1.3% of the bank’s total exposure at the end of September, and the bank’s impairment ratio was 26%.
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 the continuing rise in house prices may lead to an increased risk – in particular in respect of first-time buyers.
The bank’s total account for impairment charges was DKK 2,287 million at the end of September 2021 compared to DKK 2,205 million at the end of 2020. Fifty-one percent 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 142 million at the end of September 2021, compared to DKK 265 million at the end of December 2020.
Core earnings
Core earnings for the first three quarters of 2021 were DKK 1,121 million compared to last year’s DKK 852 million, an increase of 32%.
| (DKK million) | Q1-Q3 2021 | Q1-Q3 2020 | 2020 | 2019 | 2018 | 2017 |
| Total core income | 1,782 | 1,613 | 2,179 | 2,116 | 2,001 | 1,917 |
| Total expenses and depreciation | 600 | 576 | 788 | 805 | 866 | 845 |
| Core earnings before impairment charges for loans | 1,182 | 1,037 | 1,391 | 1,311 | 1,135 | 1,072 |
| Impairment charges for loans etc. | -61 | -185 | -223 | -100 | -43 | -70 |
| Core earnings | 1,121 | 852 | 1,168 | 1,211 | 1,092 | 1,002 |
Core earnings per share were DKK 39.1 for the first three quarters of 2021 compared to DKK 29.3 in 2020.
Result for the portfolio etc.
The result for the portfolio etc. including funding costs for the portfolio was negative by DKK 4 million net for the first three quarters of the year. In the same period in 2020, the result for the portfolio etc. was negative by DKK 24 million net. The result for the portfolio in the third quarter of 2021 was negative by DKK 1 million, due to increases in 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 12 million in the first three quarters of the year, which is marginally higher than in 2020, due to amortisation of the purchase of the client portfolio from BIL Danmark.
Profit before and after tax
The profit before tax was DKK 1,105 million, equivalent to a 17.6% p.a. return on average equity.
The profit after tax was DKK 875 million, equivalent to a 14.0% p.a. return on average equity.
Balance sheet items and contingent liabilities
The bank’s balance sheet total at the end of September 2021 stood at DKK 57,562 million, compared to DKK 53,956 million at the end of September 2020.
Relative to September 2020, the bank’s deposits including pooled schemes increased by 6% from DKK 39,204 million to DKK 41,475 million at the end of September 2021, while its loans in the same period increased by 9% from DKK 35,479 million to DKK 38,849 million.
The bank’s contingent liabilities including guarantees at the end of September 2021 amounted to DKK 10,886 million, compared to DKK 9,590 million at the end of September 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 9% compared to the end of September 2020. The development is shown in the following summary:
| Total credit intermediation | 30 Sep. 2021 DKK million | 30 Sep. 2020 DKK million | 31 Dec. 2020 DKK million |
| Loans and other receivables at amortised cost | 38,849 | 35,479 | 36,241 |
| Arranged mortgage loans and funded home loans – Totalkredit | 42,702 | 38,740 | 39,454 |
| Arranged mortgage loans – DLR Kredit | 9,818 | 9,452 | 9,511 |
| Total | 91,369 | 83,671 | 85,206 |
Securities and market risk
The item “Shares etc.” amounted to DKK 1,418 million at the end of September 2021, with DKK 27 million in listed shares and investment fund certificates and DKK 1,391 million in sector shares etc., mainly in the companies DLR Kredit, BI Holding and PRAS.
The bond portfolio amounted to DKK 6,428 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 0,6% of the bank’s tier 1 capital on 30 September 2021.
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 three quarters of 2021:
| Risk in DKK million | Risk relative to equity end of period in % | ||
| Highest risk of loss | 15.0 | 0.17% | |
| Lowest risk of loss | 4.4 | 0.05% | |
| Average risk of loss | 10.3 | 0.12% | |
| End-of-period risk of loss | 5.3 | 0.06% | |
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 1.5 billion, balanced by DKK 10.0 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 6.0 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 September 2021, the bank’s LCR was 196%, 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 September 2021 was DKK 8,563 million.
The bank’s total capital ratio and tier 1 capital ratio were 21.0% and 17.4% respectively at the end of September 2021.
| Capital ratios | Q3 2021 | Q3 2020 | 2020 | 2019 | 2018 |
| Common equity tier 1 capital ratio (%) | 17.4 | 17.8 | 17.5 | 14.7 | 14.6 |
| Tier 1 capital ratio (%) | 17.4 | 17.8 | 17.5 | 14.7 | 14.6 |
| Total capital ratio (%) | 21.0 | 21.6 | 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 (%) | 26.8 | 29.2 | 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 19.7% and the common equity tier 1 capital ratio 16.1% on 30 September 2021.
In the second quarter of 2021, the bank started using a new system for calculating the risk-weighted items. The system was delivered by Moody’s and implemented at the bank’s IT supplier, Bankdata. The system ensures continuous updating in line with future legislative amendments.
At the end of September 2021, the bank has calculated the individual solvency requirement at 9.3%. To this should be added a capital conservation buffer of 2.5%. The total requirement for the bank’s total capital was thus 11.8% at the end of September 2021.
The countercyclical capital buffer is currently 0%. On 23 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.
On 28 September 2021, the Systemic Risk Council published a press release stating that the Council expects to recommend a 1.0 percentage point increase of the buffer rate to 2.0% at its meeting in December 2021. This will allow the increase to 2.0% to take effect at the end of 2022. The Council also stated that it is assessing the need for activating the systemic buffer. The Council expects to assess whether the buffer should be activated – and if so at what level – during 2022.
Compared with the actual total capital of DKK 8.7 billion, the bank had excess capital cover of DKK 4.9 billion relative to the individual solvency requirement, equivalent to 11.7 percentage points at the end of September 2021, and excess capital cover of DKK 3.8 billion compared to the total requirement, equivalent to 9.2 percentage points.
In October 2021, the bank issued additional tier 2 capital for a total of DKK 500 million. All else being equal, this improves the total capital ratio by 1.2 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. Due to the announced increase of the countercyclical capital buffer, the bank’s internal MREL target will be re-assessed during 2022.
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 meet the MREL requirement the bank has since December 2018 and up to and including September 2021 issued non-preferred senior capital for the equivalent of a total of DKK 1.9 billion. In addition, a total of DKK 0.5 billion can be included. The latter will be phased out with effect from 1 January 2022.
The bank’s capital for covering the MREL requirement totalled DKK 11,2 billion on 30 September 2021, equivalent to an MREL capital ratio of 26.8%. The excess cover relative to the MREL requirement on 30 September 2021 was thus 8.9 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.
In the first three quarters of the year, the bank initiated and completed two share buy-back programmes. In the period 4 February to 29 July 2021, a total of 361,605 shares were bought back, the equivalent of DKK 225 million, and in the period 5 August to 28 September 2021, a total of 40,400 shares were bought back, the equivalent of DKK 30 million.
On 15 September 2021, the board of directors decided to initiate a new share buy-back programme. The programme runs from 1 October 2021 up to and including 25 January 2022. During this period the bank will buy its own shares for up to DKK 242.5 million under the programme, but with a maximum of 800,000 shares. The share buy-back amount corresponds to the portion of the buy-back that was planned for 2020 but not executed due to the coronavirus situation. On 22 October 2021, 61,000 shares had been bought back under the programme.
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 September 2021, the bank’s actual share capital was thus DKK 28,665,716 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 |
| Share buy-back programmes totalling DKK 255 million | |
| Bought under the share buy-back programmes | -402,005 |
| Actual number of shares on 30 September 2021 | 28,665,716 |
| DKK 242.5 million share buy-back programme | |
| Bought under the share buy-back programme in October 2021 | -61,800 |
| Actual number of shares on 22 October 2021 | 28,603,916 |
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. With effect from 1 July 2021, the “Funding ratio” benchmark was removed from the Supervisory Diamond.
The Supervisory Diamond benchmarks and limit values and the bank’s key figures are given in the following table.
| Benchmark | Limit value | Q3 2021 | Q3 2020 | 2020 | 2019 | 2018 |
| Liquidity benchmark | > 100% | 191.3% | 205.6% | 177.6% | 193.2% | 179.5% |
| Total large exposures | < 175% | 112.8% | 104.9% | 99.8% | 121.0% | 106.0% |
| Growth in loans | < 20% | 9.4% | 2.1% | 2.2% | 6.3% | *72.3% |
| Real property exposure | < 25% | 18.0% | 18.0% | 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 four 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 22 September 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
In 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 client transfer process was completed satisfactorily in the third quarter of 2021 and the clients taken over will now be served by the bank’s employees, including those who were transferred from BIL Danmark.
The takeover of the BIL Danmark client portfolio strengthens the bank’s position in private banking.
Increase in customers and Voxmeter survey ratings
Both of the bank’s brands are placed high in Voxmeter’s annual Image and Reputation survey published in September 2021: the “Ringkjøbing Landbobank” brand takes first place and the “Nordjyske Bank” brand takes fourth place.
The poll thus ideally supplements Voxmeter’s customer satisfaction survey published in January 2021, which also ranked the bank among the best in the Danish banking sector.
Both surveys are by far the biggest in Denmark and based on more than 39,000 and more than 60,000 respondents respectively.
The high level of customer satisfaction and the bank’s image and reputation have contributed to the continued highly satisfactory growth in new customers and good retention of customers in 2021, like in previous years.
Organisational adjustments
In the third quarter of 2021, the bank has decided various adjustments to its organisational structure and administrative set-up for implementation during the fourth quarter of 2021 and the first quarter of 2022.
The aim of all the adjustments is to strengthen the bank’s specialist environments to ensure the continued best possible advisory services and experience for its customers.
The employees in the bank’s branch in Hvide Sande will in future be permanently attached to Ringkøbing, but the Hvide Sande branch will continue to be the venue for customer meetings etc.
The bank’s branch on Kastetvej in Aalborg will be combined with the branch in Hasseris, Aalborg. This will make Hasseris one of the bank’s largest retail customer branches.
Central Production in North Jutland has so far been located in both Nørresundby and Frederikshavn. In the future, Central Production will be in one location in Frederikshavn.
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 for potential reintroduction of varying restrictions.
The bank supports the Government’s and Finance Denmark’s declaration of intent of 9 September 2021 regarding termination of the governmental loan schemes.
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, due to a continued large increase in customers and a high level of activity among other things.
The upwardly adjusted expectations for the full year are 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, but we now expect results at the upper end of the ranges.
Accounting policies
The accounting policies are unchanged relative to those in the submitted and audited 2020 annual report.
Key figures
| Q1-Q3 2021 | Q1-Q3 2020 | Full year 2020 | |
| Key figures for the bank (percent) | |||
| Profit before tax as a percentage of average equity, per annum | 17.6 | 14.1 | 14.5 |
| Net profit as a percentage of average equity, per annum | 14.0 | 11.3 | 11.7 |
| Rate of costs | 33.7 | 35.7 | 36.2 |
| Common equity tier 1 capital ratio | 17.4 | 17.8 | 17.5 |
| Tier 1 capital ratio | 17.4 | 17.8 | 17.5 |
| Total capital ratio | 21.0 | 21.6 | 21.1 |
| MREL requirement – fixed by the Danish FSA | 17.9 | 20.2 | 17.9 |
| MREL capital ratio | 26.8 | 29.2 | 26.7 |
| Key figures per DKK 1 share (DKK) | |||
| Core earnings | 39.1 | 29.3 | 40.2 |
| Net profit | 38.5 | 22.6 | 31.6 |
| Book value | 298.7 | 271.2 | 280.2 |
| Share price, end of period | 741.0 | 482.0 | 554.0 |
| Basis of calculation, number of shares | 28,665,716 | 29,067,721 | 29,067,721 |
Quarterly overviews
Core earnings
| Q3 2021 | 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 | 336 | 327 | 325 | 321 | 319 | 311 | 305 | 292 | 294 | 296 | 291 |
| Net fee and commission income excluding securities trading | 170 | 166 | 159 | 156 | 147 | 136 | 152 | 154 | 163 | 159 | 150 |
| Income from sector shares etc. | 49 | 43 | 40 | 43 | 38 | 35 | 35 | 36 | 36 | 36 | 37 |
| Foreign exchange income | 14 | 13 | 16 | 13 | 9 | 9 | 10 | 8 | 9 | 8 | 6 |
| Other operating income | 0 | 1 | 4 | 1 | 0 | 1 | 0 | 5 | 7 | 0 | 1 |
| Total core income excluding securities trading | 569 | 550 | 544 | 534 | 513 | 492 | 502 | 495 | 509 | 499 | 485 |
| Securities trading | 34 | 29 | 56 | 32 | 39 | 28 | 39 | 35 | 29 | 23 | 41 |
| Total core income | 603 | 579 | 600 | 566 | 552 | 520 | 541 | 530 | 538 | 522 | 526 |
| Staff and administration expenses | 191 | 195 | 198 | 206 | 179 | 190 | 191 | 202 | 180 | 198 | 198 |
| Depreciation and write-downs on tangible assets | 3 | 4 | 3 | 4 | 5 | 2 | 3 | 9 | 8 | 4 | 2 |
| Other operating expenses | 2 | 2 | 2 | 2 | 2 | 0 | 4 | 1 | 0 | 2 | 1 |
| Total expenses etc. | 196 | 201 | 203 | 212 | 186 | 192 | 198 | 212 | 188 | 204 | 201 |
| Core earnings before impairment charges for loans | 407 | 378 | 397 | 354 | 366 | 328 | 343 | 318 | 350 | 318 | 325 |
| Impairment charges for loans and other receivables etc. | -13 | -19 | -29 | -38 | -44 | -66 | -75 | -25 | -26 | -24 | -25 |
| Core earnings | 394 | 359 | 368 | 316 | 322 | 262 | 268 | 293 | 324 | 294 | 300 |
| Result for the portfolio etc. | -1 | +7 | -10 | +15 | +17 | +29 | -70 | -4 | +20 | +7 | +26 |
| Amortisation and write-downs on intangible assets | 4 | 4 | 4 | 4 | 3 | 4 | 4 | 4 | 3 | 4 | 4 |
| Profit before tax | 389 | 362 | 354 | 327 | 336 | 287 | 194 | 285 | 341 | 297 | 322 |
| Tax | 87 | 71 | 72 | 64 | 64 | 60 | 36 | 62 | 66 | 76 | 63 |
| Net profit | 302 | 291 | 282 | 263 | 272 | 227 | 158 | 223 | 275 | 221 | 259 |
Quarterly overviews – continued
Balance sheet items and contingent liabilities
| End of Q3 2021 | 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 | 38,849 | 37,268 | 37,210 | 36,241 | 35,479 | 35,260 | 36,130 | 35,465 | 34,757 | 34,528 | 34,195 |
| Deposits including pooled schemes | 41,475 | 41,376 | 41,766 | 39,639 | 39,204 | 39,670 | 37,051 | 38,128 | 38,554 | 39,070 | 37,439 |
| Equity | 8,563 | 8,333 | 8,132 | 8,146 | 7,884 | 7,612 | 7,380 | 7,610 | 7,426 | 7,231 | 7,071 |
| Balance sheet total | 57,562 | 57,123 | 56,845 | 54,862 | 53,956 | 53,984 | 51,531 | 52,941 | 53,601 | 52,426 | 50,266 |
| Contingent liabilities | 10,886 | 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 Q3 2021 | 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 | 7,255 | 7,274 | 7,122 | 7,277 | 7,049 | 6,973 | 6,109 | 6,072 | 5,624 | 5,441 | 5,284 |
| Tier 1 capital | 7,255 | 7,274 | 7,122 | 7,277 | 7,049 | 6,973 | 6,109 | 6,072 | 5,624 | 5,441 | 5,284 |
| Total capital | 8,743 | 8,763 | 8,614 | 8,774 | 8,553 | 8,507 | 8,009 | 8,242 | 7,786 | 6,854 | 6,667 |
| MREL capital | 11,167 | 11,596 | 10,837 | 11,112 | 11,587 | 11,580 | 10,985 | 11,248 | 10,790 | 9,551 | 9,033 |
| Total risk exposure | 41,729 | 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 | 17.4 | 17.7 | 16.8 | 17.5 | 17.8 | 17.9 | 14.7 | 14.7 | 14.2 | 13.6 | 13.8 |
| Tier 1 capital ratio | 17.4 | 17.7 | 16.8 | 17.5 | 17.8 | 17.9 | 14.7 | 14.7 | 14.2 | 13.6 | 13.8 |
| Total capital ratio | 21.0 | 21.3 | 20.4 | 21.1 | 21.6 | 21.9 | 19.3 | 20.0 | 19.7 | 17.1 | 17.4 |
| MREL capital ratio | 26.8 | 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 | Q1-Q3 2021 DKK 1,000 | Q1-Q3 2020 DKK 1,000 | Full year 2020 DKK 1,000 | |
| 1 | Interest income | 1,065,033 | 1,024,457 | 1,373,215 |
| 2 | Interest expenses | 66,239 | 91,921 | 120,910 |
| Net interest income | 998,794 | 932,536 | 1,252,305 | |
| 3 | Dividends from shares etc. | 77,109 | 71,106 | 71,241 |
| 4 | Fee and commission income | 682,258 | 603,681 | 814,821 |
| 4 | Fee and commission expenses | 67,968 | 62,459 | 85,545 |
| Net interest and fee income | 1,690,193 | 1,544,864 | 2,052,822 | |
| 5 | Value adjustments | +90,589 | +50,546 | +126,079 |
| Other operating income | 5,110 | 519 | 2,054 | |
| 6,7 | Staff and administration expenses | 584,303 | 559,945 | 765,933 |
| Amortisation, depreciation, and write-downs on intangible and tangible assets | 22,426 | 20,859 | 29,241 | |
| Other operating expenses | 5,830 | 6,058 | 8,110 | |
| 8,12 | Impairment charges for loans and other receivables etc. | -68,303 | -192,505 | -233,348 |
| Results from investments in associated companies and group undertakings | 0 | 0 | -13 | |
| Profit before tax | 1,105,030 | 816,562 | 1,144,310 | |
| 9 | Tax | 230,062 | 159,361 | 224,596 |
| Net profit | 874,968 | 657,201 | 919,714 | |
| Other comprehensive income: | ||||
| Value changes in pension liabilities | 0 | 0 | -561 | |
| Total comprehensive income for the period | 874,968 | 657,201 | 919,153 | |
Core earnings
| Note | Q1-Q3 2021 DKK 1,000 | Q1-Q3 2020 DKK 1,000 | Full year 2020 DKK 1,000 | |
| Net interest income | 988,131 | 934,599 | 1,255,816 | |
| 4 | Net fee and commission income excluding securities trading | 495,101 | 435,320 | 591,147 |
| Income from sector shares etc. | 131,704 | 108,010 | 150,935 | |
| 4 | Foreign exchange income | 42,631 | 28,161 | 40,759 |
| Other operating income | 5,110 | 519 | 2,054 | |
| Total core income excluding securities trading | 1,662,677 | 1,506,609 | 2,040,711 | |
| 4 | Securities trading | 119,189 | 105,902 | 138,129 |
| Total core income | 1,781,866 | 1,612,511 | 2,178,840 | |
| 6,7 | Staff and administration expenses | 584,303 | 559,945 | 765,933 |
| Depreciation and write-downs on tangible assets | 10,049 | 9,609 | 14,241 | |
| Other operating expenses | 5,830 | 6,058 | 8,110 | |
| Total expenses etc. | 600,182 | 575,612 | 788,284 | |
| Core earnings before impairment charges for loans | 1,181,684 | 1,036,899 | 1,390,556 | |
| Impairment charges for loans and other receivables etc. | -60,581 | -184,783 | -223,052 | |
| Core earnings | 1,121,103 | 852,116 | 1,167,504 | |
| Result for the portfolio etc. | -3,696 | -24,304 | -8,194 | |
| Amortisation and write-downs on intangible assets | 12,377 | 11,250 | 15,000 | |
| Profit before tax | 1,105,030 | 816,562 | 1,144,310 | |
| 9 | Tax | 230,062 | 159,361 | 224,596 |
| Net profit | 874,968 | 657,201 | 919,714 | |
Balance sheet
| Note | 30 Sep. 2021 DKK 1,000 | 30 Sep. 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
| Assets | ||||
| Cash in hand and demand deposits with central banks | 3,334,658 | 665,083 | 659,004 | |
| 10 | Receivables from credit institutions and central banks | 242,884 | 2,571,061 | 3,376,233 |
| 11,12,13 | Total loans and other receivables at amortised cost | 38,848,705 | 35,479,206 | 36,241,166 |
| Loans and other receivables at amortised cost | 37,771,612 | 34,292,880 | 35,088,380 | |
| Wind turbine loans etc. with direct funding | 1,077,093 | 1,186,326 | 1,152,786 | |
| 14 | Bonds at fair value | 6,428,281 | 7,478,938 | 6,636,965 |
| 15 | Shares etc. | 1,417,645 | 1,331,306 | 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 | 5,221,041 | 4,394,837 | 4,700,080 |
| 17 | Intangible assets | 1,067,549 | 1,038,588 | 1,034,838 |
| Total land and buildings | 210,783 | 216,295 | 215,910 | |
| Investment properties | 7,667 | 10,067 | 7,667 | |
| Domicile properties | 177,331 | 187,089 | 186,971 | |
| Domicile properties (leasing) | 25,785 | 19,139 | 21,272 | |
| Other tangible assets | 15,567 | 17,823 | 17,626 | |
| Current tax assets | 0 | 0 | 24,249 | |
| Deferred tax assets | 4,532 | 19,404 | 17,868 | |
| Temporary assets | 6,368 | 10,115 | 6,368 | |
| Other assets | 735,106 | 704,020 | 510,327 | |
| Prepayments | 16,289 | 16,506 | 23,209 | |
| Total assets | 57,561,887 | 53,955,674 | 54,862,129 | |
Balance sheet – continued
| Note | 30 Sep. 2021 DKK 1,000 | 30 Sep. 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
| Liabilities and equity | ||||
| 18 | Debt to credit institutions and central banks | 2,214,864 | 2,245,433 | 2,448,918 |
| Total deposits and other debt | 41,474,917 | 39,204,499 | 39,638,645 | |
| 19 | Deposits and other debt | 36,253,876 | 34,809,662 | 34,938,565 |
| Deposits in pooled schemes | 5,221,041 | 4,394,837 | 4,700,080 | |
| 20 | Issued bonds at amortised cost | 2,969,443 | 2,363,210 | 2,361,796 |
| Preferred senior capital | 1,023,356 | 1,033,402 | 1,032,489 | |
| Non-preferred senior capital | 1,946,087 | 1,329,808 | 1,329,307 | |
| Current tax liabilities | 143,839 | 89,154 | 0 | |
| Other liabilities | 507,149 | 497,523 | 591,109 | |
| Deferred income | 1,418 | 1,586 | 1,728 | |
| Total debt | 47,311,630 | 44,401,405 | 45,042,196 | |
| Provisions for pensions and similar liabilities | 2,138 | 1,983 | 2,560 | |
| 12 | Provisions for losses on guarantees | 106,906 | 83,224 | 85,814 |
| 12 | Other provisions for liabilities | 31,141 | 34,946 | 36,534 |
| Total provisions for liabilities | 140,185 | 120,153 | 124,908 | |
| Tier 2 capital | 1,546,594 | 1,550,155 | 1,549,150 | |
| 21 | Total subordinated debt | 1,546,594 | 1,550,155 | 1,549,150 |
| 22 | Share capital | 29,068 | 29,228 | 29,228 |
| Net revaluation reserve under the equity method | 406 | 419 | 406 | |
| Retained earnings | 8,534,004 | 7,854,314 | 7,909,643 | |
| Proposed dividend etc. | - | - | 206,598 | |
| Total shareholders’ equity | 8,563,478 | 7,883,961 | 8,145,875 | |
| Total liabilities and equity | 57,561,887 | 53,955,674 | 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 September 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 | -827,824 | -827,824 | |||
| Sale of own shares | 563,717 | 563,717 | |||
| Other equity transactions (employee shares) | 11,695 | 11,695 | |||
| Total comprehensive income for the period | 874,968 | 874,968 | |||
| Shareholders’ equity on the balance sheet date | 29,068 | 406 | 8,534,004 | 0 | 8,563,478 |
| DKK 1,000 | Share capital | Net revaluation reserve under the equity method | Retained earnings | Proposed dividend etc. | Total share-holders’ equity |
| As at 30 September 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 | -519,930 | -519,930 | |||
| Sale of own shares | 451,109 | 451,109 | |||
| Other equity transactions (employee shares) | 8,019 | 8,019 | |||
| Total comprehensive income for the period | 657,201 | 657,201 | |||
| Shareholders’ equity on the balance sheet date | 29,228 | 419 | 7,854,314 | 0 | 7,883,961 |
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 Sep. 2021 DKK 1,000 | 30 Sep. 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
Credit risk | 36,239,930 | 34,311,441 | 35,080,095 |
| Market risk | 1,920,993 | 2,464,205 | 2,912,209 |
| Operational risk | 3,568,376 | 2,906,665 | 3,568,376 |
| Total risk exposure | 41,729,299 | 39,682,311 | 41,560,680 |
| Shareholders’ equity | 8,563,478 | 7,883,961 | 8,145,875 |
| Proposed dividend etc. | - | - | -206,598 |
| Deduction for expected dividend | -300,114 | -251,051 | - |
| Addition for transition programme concerning IFRS 9 | 581,838 | 700,584 | 661,258 |
| Deduction for insufficient coverage of non-performing exposures | -817 | - | - |
| Deduction for the sum of equity investments etc. above 10% | -282,462 | -202,981 | -244,297 |
| Deduction for prudent valuation | -16,953 | -15,963 | -16,284 |
| Deduction for intangible assets | -1,067,549 | -1,038,588 | -1,034,838 |
| Deferred tax on intangible assets | 31,745 | 25,373 | 24,548 |
| Deduction of amount of share buy-back programme | -497,500 | -57,504 | -57,504 |
| Actual utilisation of amount of share buy-back programme | 297,886 | 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 | 279 | 2,397 | 2,794 |
| Common equity tier 1 | 7,254,831 | 7,048,732 | 7,277,458 |
| Tier 1 capital | 7,254,831 | 7,048,732 | 7,277,458 |
| Tier 2 capital | 1,543,600 | 1,544,580 | 1,543,925 |
| Deduction for the sum of equity investments etc. above 10% | -55,337 | -40,431 | -46,950 |
| Total capital | 8,743,094 | 8,552,881 | 8,774,433 |
| Contractual senior funding (grandfathered) | 482,415 | 1,728,493 | 1,031,852 |
| Non-preferred senior capital | 1,941,160 | 1,305,603 | 1,305,374 |
| MREL capital | 11,166,669 | 11,586,977 | 11,111,659 |
Statement of capital – continued
| 30 Sep. 2021 DKK 1,000 | 30 Sep. 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
| Common equity tier 1 capital ratio (%) | 17.4 | 17.8 | 17.5 |
| Tier 1 capital ratio (%) | 17.4 | 17.8 | 17.5 |
| Total capital ratio (%) | 21.0 | 21.6 | 21.1 |
| MREL capital ratio (%) | 26.8 | 29.2 | 26.7 |
| Pillar I capital requirements | 3,338,344 | 3,174,585 | 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 | 11.7 | 12.3 | 11.8 |
| Excess cover in percentage points relative to total requirement for total capital | 9.2 | 9.8 | 9.3 |
| MREL requirement (%) – fixed by the Danish FSA | 17.9 | 20.2 | 17.9 |
| Excess cover in percentage points relative to MREL requirement | 8.9 | 9.0 | 8.8 |
Notes
| Note | Q1-Q3 2021 DKK 1,000 | Q1-Q3 2020 DKK 1,000 | Full year 2020 DKK 1,000 | |
| 1 | Interest income | |||
| Receivables from credit institutions and central banks – net | -10,167 | -13,788 | -15,917 | |
| Loans and other receivables | 927,605 | 943,548 | 1,251,394 | |
| Discounts – amortisation concerning loans taken over etc. | 7,722 | 7,722 | 10,296 | |
| Loans – interest on the impaired part of loans | -37,405 | -46,183 | -59,678 | |
| Bonds – net | 20,874 | 7,025 | 13,188 | |
| Total derivative financial instruments – net | 15,215 | 15,553 | 20,424 | |
| of which currency contracts – net | 5,302 | 8,799 | 9,740 | |
| of which interest-rate contracts – net | 9,913 | 6,754 | 10,684 | |
| Other interest income | 2,511 | 2,295 | 2,862 | |
| Total interest income | 926,355 | 916,172 | 1,222,569 | |
| Negative interest income transferred to interest expenses | ||||
| Receivables from credit institutions and central banks | 2,881 | 15,323 | 17,969 | |
| Bonds | 3,602 | 5,496 | 10,883 | |
| Total derivative financial instruments | 2,317 | 3,558 | 4,064 | |
| of which currency contracts | 462 | 928 | 1,102 | |
| of which interest-rate contracts | 1,855 | 2,630 | 2,962 | |
| Total negative interest income transferred to interest expenses | 8,800 | 24,377 | 32,916 | |
| Negative interest expenses transferred from interest expenses | ||||
| Debt to credit institutions and central banks | 0 | 91 | 161 | |
| Deposits and other debt | 129,878 | 83,817 | 117,569 | |
| Total negative interest expenses transferred from interest expenses | 129,878 | 83,908 | 117,730 | |
| Total interest income | 1,065,033 | 1,024,457 | 1,373,215 | |
| of which interest income from collateralised repurchase agreements/reverse repo transactions booked under the item “Loans and other receivables” | -76 | - | - | |
Notes – continued
| Note | Q1-Q3 2021 DKK 1,000 | Q1-Q3 2020 DKK 1,000 | Full year 2020 DKK 1,000 | |
| 2 | Interest expenses | |||
| Debt to credit institutions and central banks – net | 7,253 | 9,144 | 11,885 | |
| Deposits and other debt – net | -116,799 | -69,293 | -97,803 | |
| Issued bonds | 16,862 | 16,168 | 21,538 | |
| Subordinated debt | 19,707 | 25,233 | 32,003 | |
| Other interest expenses | 538 | 2,384 | 2,641 | |
| Total interest expenses | -72,439 | -16,364 | -29,736 | |
| Negative interest expenses transferred to interest income | ||||
| Debt to credit institutions and central banks | 0 | 91 | 161 | |
| Deposits and other debt | 129,878 | 83,817 | 117,569 | |
| Total negative interest expenses transferred to interest income | 129,878 | 83,908 | 117,730 | |
| Negative interest income transferred from interest income | ||||
| Receivables from credit institutions and central banks | 2,881 | 15,323 | 17,969 | |
| Bonds | 3,602 | 5,496 | 10,883 | |
| Total derivative financial instruments | 2,317 | 3,558 | 4,064 | |
| of which currency contracts | 462 | 928 | 1,102 | |
| of which interest-rate contracts | 1,855 | 2,630 | 2,962 | |
| Total negative interest income transferred from interest income | 8,800 | 24,377 | 32,916 | |
| Total interest expenses | 66,239 | 91,921 | 120,910 | |
| 3 | Dividends from shares etc. | |||
| Shares | 77,109 | 71,106 | 71,241 | |
| Total dividends from shares etc. | 77,109 | 71,106 | 71,241 | |
| 4 | Gross fee and commission income | |||
| Securities trading | 131,850 | 118,135 | 154,196 | |
| Asset management and custody accounts | 139,945 | 121,974 | 165,388 | |
| Payment handling | 91,653 | 74,063 | 100,790 | |
| Loan fees | 71,944 | 65,006 | 91,361 | |
| Guarantee commission and mortgage credit commission etc. | 180,597 | 166,159 | 224,817 | |
| Other fees and commission | 66,269 | 58,344 | 78,269 | |
| Total gross fee and commission income | 682,258 | 603,681 | 814,821 | |
| Net fee and commission income | ||||
| Securities trading | 119,189 | 105,902 | 138,129 | |
| Asset management and custody accounts | 127,763 | 109,876 | 150,012 | |
| Payment handling | 61,562 | 47,233 | 63,072 | |
| Loan fees | 62,963 | 58,861 | 82,039 | |
| Guarantee commission and mortgage credit commission etc. | 180,597 | 166,159 | 224,817 | |
| Other fees and commission | 62,216 | 53,191 | 71,207 | |
| Total net fee and commission income | 614,290 | 541,222 | 729,276 | |
| Foreign exchange income | 42,631 | 28,161 | 40,759 | |
| Total net fee, commission, and foreign exchange income | 656,921 | 569,383 | 770,035 | |
Notes – continued
| Note | Q1-Q3 2021 DKK 1,000 | Q1-Q3 2020 DKK 1,000 | Full year 2020 DKK 1,000 | |
| 5 | Value adjustments | |||
| Other loans and receivables, fair value adjustment | -3,147 | 1,484 | 1,292 | |
| Bonds | -22,780 | -7,859 | 10,658 | |
| Shares etc. | 57,444 | 32,760 | 76,441 | |
| Foreign exchange | 42,631 | 28,161 | 40,759 | |
| Total derivative financial instruments | -12,625 | 24,340 | 24,106 | |
| of which currency contracts | -18,633 | 21,923 | 22,235 | |
| of which interest-rate contracts | 6,010 | 2,411 | 1,870 | |
| of which share contracts | -2 | 6 | 1 | |
| Assets linked to pooled schemes | 277,759 | -64,728 | 124,574 | |
| Deposits in pooled schemes | -277,759 | 64,728 | -124,574 | |
| Issued bonds etc. | 29,066 | -28,340 | -27,177 | |
| Total value adjustments | 90,589 | 50,546 | 126,079 | |
| 6 | Staff and administration expenses | |||
| Payments and fees to general management, board of directors and shareholders’ committee | ||||
| General management | 13,581 | 12,241 | 17,174 | |
| Board of directors | 2,050 | 1,585 | 3,170 | |
| Shareholders’ committee | 0 | 0 | 857 | |
| Total | 15,631 | 13,826 | 21,201 | |
| Staff expenses | ||||
| Salaries | 266,880 | 257,882 | 344,570 | |
| Pensions | 29,160 | 32,449 | 41,958 | |
| Social security expenses | 3,952 | 5,083 | 5,244 | |
| Costs depending on number of staff | 45,255 | 45,857 | 60,840 | |
| Total | 345,247 | 341,271 | 452,612 | |
| Other administration expenses | 223,425 | 204,848 | 292,120 | |
| Total staff and administration expenses | 584,303 | 559,945 | 765,933 | |
| 7 | Number of full-time employees | |||
| Average number of employees during the period converted into full-time employees | 615 | 638 | 632 | |
| Number of full-time employees at the end of the period | 632 | 630 | 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 | 82,475 | 180,274 | 172,975 | |
| Actual realised net losses | 23,232 | 58,414 | 120,051 | |
| Interest on the impaired part of loans | -37,404 | -46,183 | -59,678 | |
| Total impairment charges for loans and other receivables etc. | 68,303 | 192,505 | 233,348 | |
Notes – continued
| Note | Q1-Q3 2021 DKK 1,000 | Q1-Q3 2020 DKK 1,000 | Full year 2020 DKK 1,000 | |
| 9 | Tax | |||
| Tax calculated on income for the year | 208,390 | 163,034 | 223,794 | |
| Adjustment of deferred tax | 13,335 | -15,580 | -3,689 | |
| Adjustment of tax calculated for previous years | 8,337 | 11,907 | 4,491 | |
| Total tax | 230,062 | 159,361 | 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* | -3.1 | -4.0 | -2.5 | |
| Adjustment of tax calculated for previous years etc. | 1.9 | 1.5 | 0.1 | |
| Total effective tax rate | 20.8 | 19.5 | 19.6 | |
| * Primarily value adjustment of and dividends from sector shares. | ||||
| Note | 30 Sep. 2021 DKK 1,000 | 30 Sep. 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
| 10 | Receivables from credit institutions and central banks | |||
| Demand | 192,884 | 140,982 | 114,751 | |
| Up to and including 3 months | 0 | 2,380,079 | 3,211,482 | |
| More than 3 months and up to and including 1 year | 0 | 0 | 0 | |
| More than 1 year and up to and including 5 years | 0 | 0 | 0 | |
| More than 5 years | 50,000 | 50,000 | 50,000 | |
| Total receivables from credit institutions and central banks | 242,884 | 2,571,061 | 3,376,233 | |
| 11 | Loans and other receivables at amortised cost | |||
| Demand | 4,547,677 | 3,592,117 | 3,859,843 | |
| Up to and including 3 months | 2,298,555 | 2,531,502 | 1,252,486 | |
| More than 3 months and up to and including 1 year | 6,734,951 | 6,302,751 | 7,954,602 | |
| More than 1 year and up to and including 5 years | 11,464,446 | 10,306,442 | 10,053,336 | |
| More than 5 years | 13,803,076 | 12,746,394 | 13,120,899 | |
| Total loans and other receivables at amortised cost | 38,848,705 | 35,479,206 | 36,241,166 | |
| of which collateralised repurchase agreements/reverse repo transactions | 30,291 | - | - | |
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 September 2021: | |||||
| Loans and other receivables at amortised cost | 262,794 | 844,900 | 1,041,355 | 2,149,049 | |
| Guarantees | 18,216 | 14,880 | 73,810 | 106,906 | |
| Unutilised credit facilities and loan undertakings | 13,374 | 17,767 | 0 | 31,141 | |
| Total impairment charges and provisions by stages | 294,384 | 877,547 | 1,115,165 | 2,287,096 | |
| of which management estimates | 136,106 | 279,911 | 198,345 | 614,362 | |
| As at 30 September 2020: | |||||
| Loans and other receivables at amortised cost | 348,424 | 839,386 | 905,938 | 2,093,748 | |
| Guarantees | 21,409 | 18,751 | 43,064 | 83,224 | |
| Unutilised credit facilities and loan undertakings | 17,676 | 17,271 | 0 | 34,947 | |
| Total impairment charges and provisions by stages | 387,509 | 875,408 | 949,002 | 2,211,919 | |
| of which management estimates | 238,930 | 174,924 | 127,000 | 540,854 | |
| 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 Sep. 2021 DKK 1,000 | 30 Sep. 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 | 17,376 | 27,672 | 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 | -45,265 | -234,669 | -259,824 | |
| Total stage 3 impairment charges and provisions taken over | 202,344 | 272,764 | 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 statement 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 September 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 | 90,281 | 70,957 | 112,869 | 274,107 | 274,107 | |
| Reversed impairment charges and provisions for repaid accounts | -67,932 | -117,346 | -92,428 | -277,706 | -277,706 | |
| Transfer of impairment charges and provisions at beginning of period to stage 1 | 124,828 | -120,348 | -4,480 | 0 | 0 | |
| Transfer of impairment charges and provisions at beginning of period to stage 2 | -12,553 | 35,877 | -23,324 | 0 | 0 | |
| Transfer of impairment charges and provisions at beginning of period to stage 3 | -1,708 | -48,784 | 50,492 | 0 | 0 | |
| Impairment charges and provisions during the year resulting from credit risk change | -185,376 | 176,127 | 124,903 | 115,654 | 115,654 | |
| Previously written down, now definitively lost | - | 0 | -29,579 | -29,579 | - | |
| Lost, not previously written down | - | - | - | 11,180 | ||
| Received on receivables etc. previously written off | - | - | - | - | -54,932 | |
| Total impairment charges and provisions | 294,384 | 877,547 | 1,115,165 | 2,287,096 | 68,303 | |
| of which regarding credit institutions etc. | 6,051 | 0 | 0 | 6,051 | 4,046 | |
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 statement 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 September 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 | 104,188 | 60,073 | 114,353 | 278,614 | 278,614 | |
| Reversed impairment charges and provisions for repaid accounts | -29,466 | -51,458 | -132,450 | -213,374 | -213,374 | |
| Transfer of impairment charges and provisions at beginning of period to stage 1 | 95,673 | -45,483 | -50,190 | 0 | 0 | |
| Transfer of impairment charges and provisions at beginning of period to stage 2 | -7,729 | 586,767 | -579,038 | 0 | 0 | |
| Transfer of impairment charges and provisions at beginning of period to stage 3 | -1,550 | -12,970 | 14,520 | 0 | 0 | |
| Impairment charges and provisions during the year resulting from credit risk change | 89,664 | -65,527 | 153,854 | 177,991 | 177,991 | |
| Previously written down, now definitively lost | - | - | -62,957 | -62,957 | - | |
| Lost, not previously written down | - | - | - | 32,192 | ||
| Received on receivables etc. previously written off | - | - | - | - | -82,918 | |
| Total impairment charges and provisions | 387,509 | 875,408 | 949,002 | 2,211,919 | 192,505 | |
| of which regarding credit institutions etc. | 2,228 | 0 | 0 | 2,228 | 1,317 | |
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 statement 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 Sep. 2021 DKK 1,000 | 30 Sep. 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 | 142,255 | 179,309 | 264,721 | |
| 14 | Bonds at fair value | |||
| Listed on the stock exchange | 6,428,281 | 7,478,938 | 6,636,965 | |
| Total bonds at fair value | 6,428,281 | 7,478,938 | 6,636,965 | |
| 15 | Shares etc. | |||
| Listed on Nasdaq Copenhagen | 6,748 | 8,020 | 10,850 | |
| Investment fund certificates | 20,279 | 20,502 | 29,577 | |
| Unlisted shares at fair value | 7,024 | 12,204 | 14,186 | |
| Sector shares at fair value | 1,383,594 | 1,290,580 | 1,331,194 | |
| Total shares etc. | 1,417,645 | 1,331,306 | 1,385,807 | |
| 16 | Assets linked to pooled schemes | |||
| Cash deposits | 5,690 | 18,608 | 101,854 | |
| Bonds: | ||||
| Other bonds | 1,401,567 | 1,487,916 | 1,513,905 | |
| Total bonds | 1,401,567 | 1,487,916 | 1,513,905 | |
| Shares: | ||||
| Other shares | 783,969 | 671,648 | 672,557 | |
| Investment fund certificates | 3,060,301 | 2,244,343 | 2,411,764 | |
| Total shares | 3,844,270 | 2,915,991 | 3,084,321 | |
| Other items | -30,486 | -27,678 | 0 | |
| Total assets linked to pooled schemes | 5,221,041 | 4,394,837 | 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 | |
| Addition | 45,088 | 0 | 0 | |
| Total cost on the balance sheet date | 195,088 | 150,000 | 150,000 | |
| Amortisation at the end of the previous financial year | 38,417 | 23,417 | 23,417 | |
| Amortisation for the period | 12,377 | 11,250 | 15,000 | |
| Total amortisation on the balance sheet date | 50,794 | 34,667 | 38,417 | |
| Total customer relationships on the balance sheet date | 144,294 | 115,333 | 111,583 | |
| Total intangible assets on the balance sheet date | 1,067,549 | 1,038,588 | 1,034,838 | |
Notes – continued
| Note | 30 Sep. 2021 DKK 1,000 | 30 Sep. 2020 DKK 1,000 | 31 Dec. 2020 DKK 1,000 | |
| 18 | Debt to credit institutions and central banks | |||
| Demand | 1,082,001 | 947,420 | 711,366 | |
| Up to and including 3 months | 0 | 32,525 | 292,643 | |
| More than 3 months and up to and including 1 year | 80,363 | 172,379 | 385,258 | |
| More than 1 year and up to and including 5 years | 446,707 | 572,081 | 562,413 | |
| More than 5 years | 605,793 | 521,028 | 497,238 | |
| Total debt to credit institutions and central banks | 2,214,864 | 2,245,433 | 2,448,918 | |
| 19 | Deposits and other debt | |||
| Demand | 31,166,303 | 28,923,728 | 29,973,193 | |
| Deposits and other debt with notice: | ||||
| Up to and including 3 months | 443,502 | 456,264 | 418,740 | |
| More than 3 months and up to and including 1 year | 1,656,548 | 1,468,440 | 1,395,528 | |
| More than 1 year and up to and including 5 years | 555,507 | 1,224,866 | 668,580 | |
| More than 5 years | 2,432,016 | 2,736,364 | 2,482,524 | |
| Total deposits and other debt | 36,253,876 | 34,809,662 | 34,938,565 | |
| of which deposits covered by the Guarantee Fund | 60.5% | 60.6% | 64.1% | |
| Distributed as follows: | ||||
| Demand | 31,031,104 | 28,788,882 | 29,849,983 | |
| With notice | 1,280,127 | 1,529,445 | 1,328,132 | |
| Time deposits | 607,240 | 159,673 | 277,918 | |
| Long-term deposit agreements | 929,103 | 1,747,048 | 1,050,783 | |
| Special types of deposits | 2,406,302 | 2,584,614 | 2,431,749 | |
| 36,253,876 | 34,809,662 | 34,938,565 | ||
| 20 | Issued bonds at amortised cost | |||
| More than 3 months and up to and including 1 year | 372,364 | 0 | 0 | |
| More than 1 year and up to and including 5 years | 1,984,023 | 1,676,420 | 1,675,470 | |
| More than 5 years | 613,056 | 686,790 | 686,326 | |
| Total issued bonds at amortised cost | 2,969,443 | 2,363,210 | 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 | 743,600 | 744,580 | 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 | 2,994 | 5,575 | 5,225 | |
| Total subordinated debt | 1,546,594 | 1,550,155 | 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 | 402,005 | 160,600 | 160,600 | |
| Total share capital | 29,068 | 29,228 | 29,228 | |
Notes – continued
| Note | 30 Sep. 2021 DKK 1,000 | 30 Sep. 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 | 298,165 | 79,807 | 91,767 | |
| Number of own shares: | ||||
| Beginning of period | 165,644 | 433,721 | 433,721 | |
| Purchased during the period | 1,298,099 | 1,217,054 | 1,525,629 | |
| Sold during the period | -900,761 | -1,051,726 | -1,360,231 | |
| Cancelled during the period | -160,600 | -433,475 | -433,475 | |
| End of period | 402,382 | 165,574 | 165,644 | |
| of which reserved for subsequent cancellation | 402,005 | 160,600 | 160,600 | |
| Nominal value of holding of own shares, end of period | 402 | 166 | 166 | |
| Own shares’ proportion of share capital, end of period (%) | 1.4 | 0.6 | 0.6 | |
| 24 | Contingent liabilities etc. | |||
| Contingent liabilities | ||||
| Financial guarantees | 3,980,433 | 3,055,508 | 3,536,326 | |
| Guarantees against losses on mortgage credit loans | 2,950,500 | 2,739,273 | 2,813,424 | |
| Registration and refinancing guarantees | 3,171,076 | 2,946,257 | 2,684,855 | |
| Sector guarantees | 105,626 | 104,802 | 104,802 | |
| Other contingent liabilities | 678,842 | 743,866 | 672,423 | |
| Total contingent liabilities | 10,886,477 | 9,589,706 | 9,811,830 | |
| Other contractual obligations | ||||
| Irrevocable credit commitments etc. | 1,154,638 | 0 | 0 | |
| Total other contractual obligations | 1,154,638 | 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 | 1,077,093 | 1,186,326 | 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 | 158,275 | 170,935 | 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 | 377 | 0 | |
| Collateral under CSA agreements etc. | 23,761 | 47,615 | 35,193 | |
Notes – continued
| Note | 30 Sep. 2021 percent | 30 Sep. 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. | 1.4 | 1.3 | 1.3 | |
| Pig farming etc. | 1.3 | 1.3 | 1.2 | |
| Other agriculture, hunting and forestry | 4.9 | 5.7 | 5.4 | |
| Fisheries | 1.5 | 1.9 | 1.8 | |
| Industry and raw materials extraction | 2.6 | 2.4 | 2.7 | |
| Energy supply | ||||
| Renewable energy | 6.4 | 6.9 | 7.2 | |
| Other energy supply | 0.3 | 0.4 | 0.3 | |
| Building and construction | 3.4 | 3.2 | 3.3 | |
| Trade | 3.3 | 3.9 | 3.3 | |
| Transport, hotels and restaurants | 1.8 | 2.1 | 2.0 | |
| Information and communication | 0.6 | 0.5 | 0.5 | |
| Finance and insurance | 8.5 | 7.8 | 8.1 | |
| Real property | ||||
| First mortgage without prior creditors | 12.6 | 13.2 | 12.7 | |
| Other real property financing | 4.5 | 3.9 | 4.2 | |
| Other business customers | 6.9 | 7.1 | 7.1 | |
| Total business customers | 60.0 | 61.6 | 61.1 | |
| Private individuals | 40.0 | 38.4 | 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 September 2021 | |||||||
| Credit quality | |||||||
| High | 53,783,298 | 140,620 | 0 | 0 | 53,923,918 | 74% | |
| Medium | 9,985,218 | 1,650,100 | 0 | 0 | 11,635,318 | 16% | |
| Low | 1,539,733 | 3,832,829 | 0 | 0 | 5,372,562 | 7% | |
| Credit-impaired | 0 | 0 | 1,655,764 | 318,197 | 1,973,961 | 3% | |
| Total | 65,308,249 | 5,623,549 | 1,655,764 | 318,197 | 72,905,759 | 100% | |
| Impairment charges etc. | 294,384 | 877,547 | 912,821 | 202,344 | 2,287,096 | ||
| As at 30 September 2020 | |||||||
| Credit quality | |||||||
| High | 46,095,684 | 142,916 | 0 | 0 | 46,238,600 | 71% | |
| Medium | 9,078,550 | 1,771,758 | 0 | 0 | 10,850,308 | 17% | |
| Low | 1,873,969 | 4,059,359 | 0 | 0 | 5,933,328 | 9% | |
| Credit-impaired | 0 | 0 | 1,358,979 | 397,394 | 1,756,373 | 3% | |
| Total | 57,048,203 | 5,974,033 | 1,358,979 | 397,394 | 64,778,609 | 100% | |
| Impairment charges etc. | 387,509 | 875,408 | 676,239 | 272,763 | 2,211,919 | ||
| 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. |
Main figures
| Summary of income statement (DKK million) | Q1-Q3 2021 | Q1-Q3 2020 | Full year 2020 |
| Net interest income | 999 | 933 | 1,252 |
| Dividends from shares etc. | 77 | 71 | 71 |
| Net fee and commission income | 614 | 541 | 730 |
| Net interest and fee income | 1,690 | 1,545 | 2,053 |
| Value adjustments | +91 | +51 | +126 |
| Other operating income | 5 | 1 | 2 |
| Staff and administration expenses | 584 | 560 | 766 |
| Amortisation, depreciation, and write-downs on intangible and tangible assets | 23 | 21 | 29 |
| Other operating expenses | 6 | 6 | 8 |
| Impairment charges for loans and receivables etc. | -68 | -193 | -234 |
| Profit before tax | 1,105 | 817 | 1,144 |
| Tax | 230 | 160 | 224 |
| Net profit | 875 | 657 | 920 |
| Main figures from the balance sheet (DKK million) | 30 Sep. 2021 | 30 Sep. 2020 | 31 Dec. 2020 |
| Loans and other receivables at amortised cost | 38,849 | 35,479 | 36,241 |
| Deposits and other debt including pooled schemes | 41,475 | 39,204 | 39,639 |
| Subordinated debt | 1,547 | 1,550 | 1,549 |
| Equity | 8,563 | 7,884 | 8,146 |
| Balance sheet total | 57,562 | 53,956 | 54,862 |
The Danish FSA’s official key figures/ratios etc. for Danish banks
| Q1-Q3 2021 | Q1-Q3 2020 | 2020 | ||
| Capital ratios: | ||||
| Total capital ratio | % | 21.0 | 21.6 | 21.1 |
| Tier 1 capital ratio | % | 17.4 | 17.8 | 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 | % | 26.8 | 29.2 | 26.7 |
| Earnings: | ||||
| Return on equity before tax | % | 13.2 | 10.5 | 14.5 |
| Return on equity after tax | % | 10.5 | 8.5 | 11.7 |
| Income/cost ratio | DKK | 2.62 | 2.05 | 2.10 |
| Return on assets | % | 1.5 | 1.2 | 1.7 |
| Market risk: | ||||
| Interest rate risk | % | 0.6 | 1.3 | 1.0 |
| Foreign exchange position | % | 1.4 | 1.3 | 0.1 |
| Foreign exchange risk | % | 0.0 | 0.0 | 0.0 |
| Liquidity risk: | ||||
| Liquidity Coverage Ratio (LCR) | % | 196 | 210 | 206 |
| Loans and impairments thereon relative to deposits | % | 98.8 | 95.8 | 96.7 |
| Credit risk: | ||||
| Loans relative to shareholders’ equity | 4.5 | 4.5 | 4.4 | |
| Growth in loans | % | 7.1 | 0.0 | 2.2 |
| Total large exposures (< 175%) | % | 112.8 | 104.9 | 99.8 |
| Cumulative impairment ratio | % | 4.4 | 4.7 | 4.6 |
| Impairment ratio | % | 0.13 | 0.41 | 0.48 |
| Proportion of receivables at reduced interest | % | 0.3 | 0.4 | 0.5 |
| Share return: | ||||
| Earnings per share*/*** | DKK | 3,031.3 | 2,254.9 | 3,155.6 |
| Book value per share*/** | DKK | 29,874 | 27,127 | 28,029 |
| Dividend per share* | DKK | 0 | 0 | 700 |
| Market price relative to earnings per share*/*** | 24.4 | 21.4 | 17.6 | |
| Market price relative to book value per share*/** | 2.48 | 1.78 | 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 quarterly report of Ringkjøbing Landbobank A/S for the period 1 January to 30 September 2021.
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 at 30 September 2021 and of the result of the bank’s activities for the period 1 January to 30 September 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 quarterly 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, 27 October 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
