Ringkjøbing Landbobank's quarterly report 1st-3rd quarters 2010
The bank's pre-tax profit for the first three quarters of 2010 was DKK 256
million against DKK 249 million for 2009, an increase of 3%. This result was
equivalent to a 17% p.a. return on equity at the beginning of the period. Given
the costs incurred in connection with the government's Bank Package I, the
profit is considered highly satisfactory.
--------------------------------------------------------------------------------
| | 1st |Full | | | | | | | | |
| |-3rd |year | | | | | | | | |
| (Million DKK) |2010 |2009 |2008 |2007 |2006 |2005 |2004 | 2003 | 2002 | 2001 |
--------------------------------------------------------------------------------
| Core income | 573 | 753 | 735 | 696 | 609 | 511 | 417 | 368 | 328 | 275 |
--------------------------------------------------------------------------------
| Total costs |-176 |-238 |-239 |-234 |-208 |-190 |-184 | -163 | -155 | -133 |
--------------------------------------------------------------------------------
| Core earnings | 397 | 515 | 496 | 462 | 401 | 321 | 233 | 205 | 173 | 142 |
| before | | | | | | | | | | |
| write-downs | | | | | | | | | | |
--------------------------------------------------------------------------------
| Write-downs | -93 |-159 | -77 | +11 | +69 | +5 | +4 | -10 | +6 | +6 |
| on loans | | | | | | | | | | |
--------------------------------------------------------------------------------
| Core earnings | 304 | 356 | 419 | 473 | 470 | 326 | 237 | 195 | 179 | 148 |
--------------------------------------------------------------------------------
| Result for | +32 | +56 | -73 | -18 |+103 | +35 | +51 | +106 | +30 | +7 |
| the portfolio | | | | | | | | | | |
--------------------------------------------------------------------------------
| Costs of Bank | -80 |-107 | -28 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Package I | | | | | | | | | | |
--------------------------------------------------------------------------------
| Result before | 256 | 305 | 318 | 455 | 573 | 361 | 288 | 301 | 209 | 155 |
| tax | | | | | | | | | | |
--------------------------------------------------------------------------------
Core earnings were DKK 304 million against last year's DKK 282 million, an
increase of 8%.
The bank's expectations for core earnings were last adjusted
upward to DKK 300-400 million at the end of the first half-year and core
earnings are now expected to be in the best part of this range.
Three quarters - highlights:
* Increase in pre-tax profit from DKK 249 million last year to DKK 256 million
for 2010.
* This result was equivalent to a 17% p.a. return on equity at the beginning of
the period.
* Satisfactory level of write-downs of DKK 93 million - equivalent to 0.86%
p.a.
* Rate of costs computed at 30.7 - the lowest in Denmark.
* Free of all government schemes and payments to these after 1 October 2010.
* Capital adequacy ratio increased to 20.9, equivalent to a cover of 261%.
* Core capital ratio increased to 17.4.
* Highly satisfactory increase in customers in both branch network and Private
Banking.
* Core earnings are now expected to be in the best part of the announced range.
Please do not hesitate to contact the bank's management if you have any
questions.
Yours sincerely,
Ringkjøbing Landbobank
Bent Naur John Fisker
Management's report
Core income
Core income was 2% higher in 2010 with an increase from DKK 562 million in 2009
to DKK 573 million.
Net interest income decreased by 1% from DKK 449 million to DKK 444 million. The
underlying trend in income from business with customers is positive, but the
item was negatively affected by the low interest level, as interest income from
financing of the bank's own holding of bonds was just over 1.5 percentage points
lower in 2010 compared to 2009, equivalent to a lower income for 2010 of approx.
DKK 22 million.
Fees, commissions and foreign exchange earnings amount to net DKK 119 million in
2010 against net DKK 95 million in 2009, an increase of 25%. This development is
primarily attributable to the fact that the volume of trading within securities
has picked up, and to increasing earnings from the bank's asset management
activities as a result of increasing volumes.
Costs and depreciations
Total costs including depreciation on tangible assets amounted to DKK 176
million against last year's DKK 168 million, an increase of 5%.
The rate of costs was marginally higher than last year's level and was computed
at 30.7, which continues to be the lowest in Denmark. A low rate of costs is
especially important in periods of difficult economic conditions as the bank's
results are thus very robust, which is also reflected in the computation of the
bank's individual solvency requirement.
Write-downs on loans
Write-downs on loans showed a fall to net DKK 93 million after the first three
quarters of the year against last years DKK 113 million. Write-downs are
equivalent to 0.85% p.a. of the total average of loans, write-downs, guarantees
and provisions. The bank's customers appear to be coping better with the weak
economic conditions than the average in Denmark. The present level of
write-downs is considered satisfactory.
The bank's total account for write-downs and provisions amounted to DKK 536
million at the end of the quarter, equivalent to 3.6% of total loans and
guarantees. Actual write-downs on loans this year continue to be appreciably
below the write-downs recognised as an expense in the accounts, so that the
account for write-downs and provisions increased by net DKK 69 million during
the year.
The portfolio of loans with zeroed interest amounts to DKK 75 million,
equivalent to 0.51% of the bank's total loans and guarantees at the end of the
quarter.
The bank's loans portfolio is generally strong, and the Danish Financial
Supervisory Authority assessed in their report of June 2010 that the bank's
credit risk is relatively low compared to that of other institutions. Given the
recession in 2009 in the Danish economy and the fall in value of many assets
concurrently with increasing unemployment, the bank is satisfied with the
conservative credit policy on the basis of which the bank has always operated.
The bank's losses are expected to remain at a relatively high level this year, a
natural part of the economic cycle. However, in the bank's judgment the credit
policy, the diversified loans portfolio and the bank's location in Central and
West Jutland will have a positive effect on the bank compared with the general
level in the banking sector as a whole.
Core earnings
--------------------------------------------------------------------------------
| | 1st |Full | | | | | | | | |
| |-3rd |year | | | | | | | | |
| (Million DKK) |2010 |2009 |2008 |2007 |2006 |2005 |2004 | 2003 | 2002 | 2001 |
--------------------------------------------------------------------------------
| Core income | 573 | 753 | 735 | 696 | 609 | 511 | 417 | 368 | 328 | 275 |
--------------------------------------------------------------------------------
| Total costs |-176 |-238 |-239 |-234 |-208 |-190 |-184 | -163 | -155 | -133 |
--------------------------------------------------------------------------------
| Core earnings | 397 | 515 | 496 | 462 | 401 | 321 | 233 | 205 | 173 | 142 |
| before | | | | | | | | | | |
| write-downs | | | | | | | | | | |
--------------------------------------------------------------------------------
| Write-downs | -93 |-159 | -77 | +11 | +69 | +5 | +4 | -10 | +6 | +6 |
| on loans | | | | | | | | | | |
--------------------------------------------------------------------------------
| Core earnings | 304 | 356 | 419 | 473 | 470 | 326 | 237 | 195 | 179 | 148 |
--------------------------------------------------------------------------------
Core earnings were DKK 304 million in the period against last year's DKK 282
million, an increase of 8%.
Result for the portfolio
The result for the portfolio for the first three quarters of the year was
positive by DKK 32 million including funding costs for the portfolio. The result
derives from a gain on interest-bearing debts and debt. All securities are
included at market value.
The bank's holding of shares etc. at the end of the quarter amounted to DKK 274
million, DKK 39 million of which was in listed shares etc. while DKK 235 million
was in sector shares etc. The bond portfolio at the end of the quarter amounted
to DKK 2,260 million, and the great majority of the portfolio consists of
AAA-rated Danish mortgage credit bonds.
The total interest rate risk, computed as the impact on the result of a one
percentage point change in the interest level, was 0.8% of the bank's Tier 1
capital after deduction at the end of the quarter.
The bank's total market risk within exposure to interest rate risk, exposure in
listed shares etc. and foreign exchange exposure remains at a low level. 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 2010:
--------------------------------------------------------------------------------
| | Risk in DKK | % risk relative to equity |
| | | end of the quarter |
--------------------------------------------------------------------------------
| Highest risk of loss: | 16.9 million | 0.76% |
| Smallest risk of loss: | 2.5 million | 0.11% |
| Average risk of loss: | 8.4 million | 0.38% |
--------------------------------------------------------------------------------
The bank's policy remains to keep the market risk at a low level.
Result after tax
The profit after tax was DKK 192 million in the first three quarters of the year
against DKK 188 million in the same period last year, an increase of 2%. Tax of
DKK 63 million was calculated, giving an effective tax rate of 24.8%. The result
after tax is equivalent to a 12.5% return on equity at the beginning of the
period.
The balance sheet
The bank's balance sheet total at the end of the quarter stood at DKK 18,409
million against last year's DKK 17,925 million. Deposits increased by 3% from
DKK 10,806 million to DKK 11,174 million. The bank's loans remain unchanged at
DKK 12,939 million.
The bank's portfolio of guarantees at the end of the quarter was DKK 1,259
million against DKK 1,299 million in September 2009.
Liquidity
The bank's liquidity is good, and the excess liquidity relative to the statutory
requirement is 259%. The bank's short-term funding with term to maturity of less
than 12 months amounts to only DKK 1.4 billion, balanced by DKK 4.5 billion in
short-term money market placing, primarily in Danmarks Nationalbank, Danish
banks and liquid securities. The bank also had undrawn confirmed credit
facilities with foreign banks with term to maturity of over 12 months to the
equivalent of a total of DKK 0.2 billion as backup facilities. The bank is thus
not dependent on the short-term money market.
Last year the government granted the bank a total guarantee amount of DKK 5
billion. This amount was not utilised as the bank was able to provide funding on
the market in the normal way without using the government guarantee. In
addition, the bank experienced a highly satisfactory increase in major deposits
from new customers in the bank.
Bank Package I
Together with most of the financial sector in Denmark, Ringkjøbing Landbobank
joined Bank Package I, which expired on 30 September 2010 and provided an
unconditional guarantee by the Danish state for Danish banks' deposits and
senior debts. The guarantee premium was DKK 47 million in 2010, DKK 3 million of
which went to The Deposit Guarantee Fund. Hereafter the Bank will not have to
pay any further guarantee premiums regarding Bank Package I.
Losses of DKK 33 million were booked for Bank Package I in 2010. The bank made
provisions on the expectation of losses in the Financial Stability Company in
excess of DKK 10 billion, and it is thus expected that no further expenses will
be incurred under this guarantee.
Free of the government
Ringkjøbing Landbobank is now free of the government. 30 September 2010 was a
good day - the last day of paying for Bank Package I. The bank did not receive
hybrid core capital or liquidity guarantees from the government. The conditions
are thus normalising, and we believe that the competitive edge resulting from
the fact that the bank no longer has to pay to aid schemes means that we will be
able to win additional market shares in the years to come.
Capital
The bank's equity at the beginning of 2010 was DKK 2,056 million, to which must
be added the profit for the period, after which the equity on 30 September 2010
was DKK 2,233 million.
The capital adequacy ratio (Tier 2) was computed at 20.9 at the end of the third
quarter of 2010, and the core capital ratio (Tier 1) was computed at 17.4 on the
same date.
--------------------------------------------------------------------------------
| Capital adequacy | 3rd | Full | 2008 | 2007 | 2006 |
| | qtr. | year | | | |
| | 2010 | 2009 | | | |
--------------------------------------------------------------------------------
| Core capital ratio without | 16.0 | 15.1 | 11.6 | 10.0 | 9.2 |
| hybrid core capital | | | | | |
--------------------------------------------------------------------------------
| Core capital ratio | 17.4 | 16.6 | 13.0 | 11.2 | 10.4 |
--------------------------------------------------------------------------------
| Capital adequacy ratio | 20.9 | 20.2 | 16.3 | 13.0 | 12.3 |
--------------------------------------------------------------------------------
| Individual solvency | 8.0 | 8.0 | 8.0 | 8.0 | 8.0 |
| requirement | | | | | |
--------------------------------------------------------------------------------
| Capital adequacy | 261% | 253% | 204% | 163% | 154% |
--------------------------------------------------------------------------------
Since 2007, the Danish financial sector has been subject to a requirement that a
bank's capital adequacy ratio must be at least 8%, and this ratio must also at a
minimum comply with the required individual solvency requirement calculated
internally by the bank, which may be higher than the 8%. If the calculated
individual solvency requirement is less than 8%, a bank cannot, however, be
permitted at any time to use any such calculated lower figure. The individual
solvency requirement for Ringkjøbing Landbobank is calculated at 6.0% because of
the bank's robust business model, and the ratio was thus reported at 8%.
The bank has supplementary capital of DKK 300 million expiring in 2014 with the
possibility of early repayment. The Danish Financial Supervisory Authority has
authorised this repayment.
Increase in customers
The bank implemented several out-reach initiatives towards new customers a few
months ago. The basis was the fact that the bank has both the liquidity and the
capital to support growth, that we felt comfortable about the bank's credit
facilities, and that our cost structure is suitable for the future. The biggest
challenge in times of low growth in society is thus creating growth in the top
line.
A highly positive increase in customers is currently being seen in the branch
network and within the Private Banking segment, with transfer of deposits,
pension and securities customers. The growth in lending has been swallowed up by
repayments on the loans portfolio. In the bank's judgment, we are, however,
currently enhancing the foundation for future earnings.
Accounting policies and key figures
The accounting policies applied are unchanged relative to the audited annual
report presented for 2009.
Expectations for earnings in 2010
The bank's core earnings for the first three quarters were DKK 304 million,
which is slightly better than the budget for 2010. The bank's expectations for
core earnings were last adjusted upward to DKK 300-400 million at the end of the
first half-year, and core earnings are now expected to be in the best part of
this range.
Main and key figures for the bank
--------------------------------------------------------------------------------
| | 1st-3rd | 1st-3rd | Full year |
| | qtr. | qtr. | 2009 |
| | 2010 | 2009 | |
--------------------------------------------------------------------------------
| Main figures for the bank (million | | | |
| DKK) | | | |
--------------------------------------------------------------------------------
| Total core income | 573 | 563 | 753 |
--------------------------------------------------------------------------------
| Total costs and depreciations | -176 | -168 | -238 |
--------------------------------------------------------------------------------
| Core earnings before write-downs on | 397 | 395 | 515 |
| loans | | | |
--------------------------------------------------------------------------------
| Write-downs on loans | -93 | -113 | -159 |
--------------------------------------------------------------------------------
| Core earnings | 304 | 282 | 356 |
--------------------------------------------------------------------------------
| Result for portfolio | 32 | 35 | +56 |
--------------------------------------------------------------------------------
| Profit before national bank package I | 336 | 317 | 412 |
--------------------------------------------------------------------------------
| Costs national bank package I | -80 | -68 | -107 |
--------------------------------------------------------------------------------
| Profit before tax | 256 | 249 | 305 |
--------------------------------------------------------------------------------
| Profit after tax | 192 | 188 | 232 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders' equity | 2,233 | 2,035 | 2,056 |
--------------------------------------------------------------------------------
| Total capital base | 2,925 | 2,699 | 2,747 |
--------------------------------------------------------------------------------
| Deposits | 11,174 | 10,806 | 11,187 |
--------------------------------------------------------------------------------
| Loans | 12,939 | 13,078 | 13,047 |
--------------------------------------------------------------------------------
| Balance sheet total | 18,409 | 17,925 | 17,928 |
--------------------------------------------------------------------------------
| Guarantees | 1,259 | 1,299 | 1,486 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Key figures for the bank (per cent) | | | |
--------------------------------------------------------------------------------
| Pre-tax return on equity, beginning of | 16.6 | 18.6 | 17.1 |
| year | | | |
--------------------------------------------------------------------------------
| Return on equity after tax, beginning | 12.5 | 14.1 | 13.0 |
| of year | | | |
--------------------------------------------------------------------------------
| Rate of costs | 30.7 | 29.8 | 31.6 |
--------------------------------------------------------------------------------
| Core capital ratio | 17.4 | 16.2 | 16.6 |
--------------------------------------------------------------------------------
| Solvency ratio | 20.9 | 19.8 | 20.2 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Key figures per 5 DKK share (DKK) | | | |
--------------------------------------------------------------------------------
| Core earnings | 60 | 56 | 71 |
--------------------------------------------------------------------------------
| Profit before tax | 51 | 50 | 60 |
--------------------------------------------------------------------------------
| Profit after tax | 38 | 37 | 46 |
--------------------------------------------------------------------------------
| Net asset value | 443 | 404 | 408 |
--------------------------------------------------------------------------------
| Price, end of period | 620 | 650 | 609 |
--------------------------------------------------------------------------------
Profit and loss account
--------------------------------------------------------------------------------
| Note | 1.1-30.9 | 1.1-30.9 | 1.1-31.12 |
| | 2010 | 2009 | 2009 |
| | DKK 1,000 | DKK 1,000 | DKK |
| | | | 1,000 |
--------------------------------------------------------------------------------
| 1 | Interest receivable | 634,658 | 771,433 | 993,756 |
--------------------------------------------------------------------------------
| 2 | Interest payable | 180,853 | 308,568 | 377,728 |
--------------------------------------------------------------------------------
| | Net income from interest | 453,805 | 462,865 | 616,028 |
--------------------------------------------------------------------------------
| | Interest-like commission income | 174 | 9,067 | 9,266 |
--------------------------------------------------------------------------------
| | Dividend on capital shares etc. | 1,215 | 3,243 | 3,243 |
--------------------------------------------------------------------------------
| 3 | Income from fees and commissions | 119,785 | 98,145 | 140,362 |
--------------------------------------------------------------------------------
| | Fees and commissions paid | 18,010 | 16,561 | 23,823 |
--------------------------------------------------------------------------------
| | Net income from interest and | 556,969 | 556,759 | 745,076 |
| | fees | | | |
--------------------------------------------------------------------------------
| 4 | Value adjustments | +45,419 | +38,080 | +58,130 |
--------------------------------------------------------------------------------
| | Other operating income | 2,911 | 3,413 | 5,351 |
--------------------------------------------------------------------------------
| 5,6 | Staff and administration costs | 174,190 | 165,912 | 235,604 |
--------------------------------------------------------------------------------
| | Amortisation, depreciation and | 2,109 | 1,636 | 2,424 |
| | write-downs on | | | |
| | intangible and | | | |
| | tangible assets | | | |
--------------------------------------------------------------------------------
| | Other operating costs | | | |
--------------------------------------------------------------------------------
| | Miscellaneous other operating | 0 | 46 | 56 |
| | costs | | | |
--------------------------------------------------------------------------------
| | Guarantee commission, national | 46,590 | 41,255 | 55,785 |
| | bank package I etc. | | | |
--------------------------------------------------------------------------------
| | Write-downs on loans and debtors | | | |
| | etc. | | | |
--------------------------------------------------------------------------------
| | Write-downs on loans and other | -93,486 | -113,067 | -158,600 |
| | debtors | | | |
--------------------------------------------------------------------------------
| | Write-downs on national bank | -33,152 | -26,819 | -51,173 |
| | package I | | | |
--------------------------------------------------------------------------------
| | Result of capital shares in | 0 | -26 | -59 |
| | associated companies | | | |
--------------------------------------------------------------------------------
| | Profit before tax | 255,772 | 249,491 | 304,856 |
--------------------------------------------------------------------------------
| 7 | Tax | 63,400 | 61,300 | 72,775 |
--------------------------------------------------------------------------------
| | Profit after tax | 192,372 | 188,191 | 232,081 |
--------------------------------------------------------------------------------
Core earnings
--------------------------------------------------------------------------------
| | 1.1-30.9 | 1.1-30.9 | 1.1-31.12 |
| | 2010 | 2009 | 2009 |
| | DKK 1,000 | DKK | DKK |
| | | 1,000 | 1,000 |
--------------------------------------------------------------------------------
| | Net income from interest | 444,101 | 449,494 | 596,828 |
--------------------------------------------------------------------------------
| | Interest-like commission income | 173 | 9,067 | 9,266 |
--------------------------------------------------------------------------------
| | Net income from fees and | 82,639 | 67,705 | 97,751 |
| | provisions excl. commission | | | |
--------------------------------------------------------------------------------
| | Income from sector shares etc. | 7,275 | 5,321 | 8,448 |
--------------------------------------------------------------------------------
| | Foreign exchange income | 17,224 | 13,565 | 16,515 |
--------------------------------------------------------------------------------
| | Other operating income | 2,911 | 3,413 | 5,351 |
--------------------------------------------------------------------------------
| | Total core income excl. trade | 554,323 | 548,565 | 734,159 |
| | income | | | |
--------------------------------------------------------------------------------
| | Trade income | 19,136 | 13,879 | 18,788 |
--------------------------------------------------------------------------------
| | Total core income | 573,459 | 562,444 | 752,947 |
--------------------------------------------------------------------------------
| | Staff and administration costs | 174,189 | 165,912 | 235,604 |
--------------------------------------------------------------------------------
| | Amortisation, depreciation and | 2,109 | 1,636 | 2,424 |
| | write-downs on | | | |
| | intangible and | | | |
| | tangible assets | | | |
--------------------------------------------------------------------------------
| | Other operating costs | 0 | 46 | 56 |
--------------------------------------------------------------------------------
| | Total costs etc. | 176,298 | 167,594 | 238,084 |
--------------------------------------------------------------------------------
| | Core earnings before write-downs | 397,161 | 394,850 | 514,863 |
| | on loans | | | |
--------------------------------------------------------------------------------
| | Write-downs on loans and other | -93,486 | -113,067 | -158,600 |
| | debtors | | | |
--------------------------------------------------------------------------------
| | Core earnings | 303,675 | 281,783 | 356,263 |
--------------------------------------------------------------------------------
| | Result for portfolio | +31,838 | +35,782 | +55,551 |
--------------------------------------------------------------------------------
| | Result before national bank | 335,513 | 317,565 | 411,814 |
| | package I | | | |
--------------------------------------------------------------------------------
| | Costs national bank package I | -79,741 | -68,074 | -106,958 |
--------------------------------------------------------------------------------
| | Profit before tax | 255,772 | 249,491 | 304,856 |
--------------------------------------------------------------------------------
| | Tax | 63,400 | 61,300 | 72,775 |
--------------------------------------------------------------------------------
| | Profit after tax | 192,372 | 188,191 | 232,081 |
--------------------------------------------------------------------------------
Balance sheet
--------------------------------------------------------------------------------
| Note | End | End | End |
| | Sept. | Sept. | Dec. |
| | 2010 | 2009 | 2009 |
| | DKK | DKK | DKK |
| | 1,000 | 1,000 | 1,000 |
--------------------------------------------------------------------------------
| | Assets | | | |
--------------------------------------------------------------------------------
| | Cash in hand and claims at call | 61,557 | 48,591 | 42,723 |
| | on central banks | | | |
--------------------------------------------------------------------------------
| 8 | Claims on credit institutions | | | |
| | and central banks | | | |
--------------------------------------------------------------------------------
| | Claims on central banks | 406,994 | 816,944 | 649,846 |
--------------------------------------------------------------------------------
| | Claims on credit institutions | | | |
--------------------------------------------------------------------------------
| | Money market operations and | 1,609,220 | 1,538,945 | 1,751,361 |
| | bilateral loans | | | |
| | - term | | | |
| | to maturity under 1 year | | | |
--------------------------------------------------------------------------------
| | Bilateral loans - term to | 266,980 | 95,580 | 90,792 |
| | maturity over 1 year | | | |
--------------------------------------------------------------------------------
| 9,10, | Loans and other debtors at | 12,939,42 | 13,077,58 | 13,047,21 |
| 11 | amortised cost price | 4 | 5 | 2 |
--------------------------------------------------------------------------------
| 12 | Bonds at current value | 2,260,331 | 1,754,371 | 1,679,453 |
--------------------------------------------------------------------------------
| 13 | Shares etc. | 273,954 | 249,151 | 256,697 |
--------------------------------------------------------------------------------
| | Capital shares in associated | 513 | 545 | 513 |
| | companies | | | |
--------------------------------------------------------------------------------
| | Land and buildings total | 76,146 | 75,874 | 76,589 |
--------------------------------------------------------------------------------
| | Investment properties | 7,261 | 7,261 | 7,261 |
--------------------------------------------------------------------------------
| | Domicile properties | 68,885 | 68,613 | 69,328 |
--------------------------------------------------------------------------------
| | Other tangible assets | 4,112 | 2,758 | 3,055 |
--------------------------------------------------------------------------------
| | Actual tax assets | 10,053 | 5,082 | 46,261 |
--------------------------------------------------------------------------------
| | Deferred tax assets | 0 | 27,713 | 0 |
--------------------------------------------------------------------------------
| | Temporary assets | 150 | 901 | 1,023 |
--------------------------------------------------------------------------------
| | Other assets | 492,592 | 224,209 | 275,171 |
--------------------------------------------------------------------------------
| | Periodic-defined items | 7,223 | 7,196 | 7,260 |
--------------------------------------------------------------------------------
| | Total assets | 18,409,24 | 17,925,44 | 17,927,95 |
| | | 9 | 5 | 6 |
--------------------------------------------------------------------------------
Balance sheet
--------------------------------------------------------------------------------
| Note | End | End | End |
| | Sept. | Sept. | Dec. |
| | 2010 | 2009 | 2009 |
| | DKK | DKK | DKK |
| | 1,000 | 1,000 | 1,000 |
--------------------------------------------------------------------------------
| | Liabilities and equity | | | |
--------------------------------------------------------------------------------
| 14 | Debt to credit institutions and | | | |
| | central banks | | | |
--------------------------------------------------------------------------------
| | Debt to central banks | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| | Debt to credit institutions | | | |
--------------------------------------------------------------------------------
| | Money market operations and | 940,369 | 1,015,096 | 699,732 |
| | bilateral credits | | | |
| | - term | | | |
| | to maturity under 1 year | | | |
--------------------------------------------------------------------------------
| | Bilateral credits - term to | 1,963,412 | 2,375,337 | 2,294,991 |
| | maturity over 1 year | | | |
--------------------------------------------------------------------------------
| 15 | Deposits and other debts | 11,173,75 | 10,806,05 | 11,187,47 |
| | | 1 | 3 | 0 |
--------------------------------------------------------------------------------
| 16 | Issued bonds at amortised cost | 760,094 | 547,997 | 557,337 |
| | price | | | |
--------------------------------------------------------------------------------
| | Other liabilities | 536,096 | 391,793 | 364,332 |
--------------------------------------------------------------------------------
| | Periodic-defined items | 557 | 907 | 689 |
--------------------------------------------------------------------------------
| | Total debt | 15,374,27 | 15,137,18 | 15,104,55 |
| | | 9 | 3 | 1 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | Provisions for pensions and | 5,918 | 7,249 | 7,463 |
| | similar liabilities | | | |
--------------------------------------------------------------------------------
| | Provisions for deferred tax | 5,088 | 0 | 5,088 |
--------------------------------------------------------------------------------
| 10 | Provisions for losses on | 3,235 | 1,943 | 1,376 |
| | guarantees | | | |
--------------------------------------------------------------------------------
| | Provisions for national bank | 81,253 | 35,647 | 45,101 |
| | package I | | | |
--------------------------------------------------------------------------------
| | Other provisions for liabilities | 4,520 | 14,060 | 13,210 |
--------------------------------------------------------------------------------
| | Total provisions for liabilities | 100,014 | 58,899 | 72,238 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | Subordinated loan capital | 489,356 | 490,517 | 491,625 |
--------------------------------------------------------------------------------
| | Hybrid core capital | 212,164 | 203,419 | 203,769 |
--------------------------------------------------------------------------------
| 17 | Total subordinated debt | 701,520 | 693,936 | 695,394 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| 18 | Share capital | 25,200 | 25,200 | 25,200 |
--------------------------------------------------------------------------------
| | Reserve for net revaluation | 162 | 162 | 162 |
| | under the intrinsic value method | | | |
--------------------------------------------------------------------------------
| | Profit carried forward | 2,208,074 | 2,010,065 | 2,030,411 |
--------------------------------------------------------------------------------
| | Total shareholders' equity | 2,233,436 | 2,035,427 | 2,055,773 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Total liabilities and equity | 18,409,24 | 17,925,44 | 17,927,95 |
| | | 9 | 5 | 6 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 20 | Contingent liabilities etc. | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 21 | Capital adequacy computation | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 22 | Miscellaneous comments | | | |
--------------------------------------------------------------------------------
Statement of shareholders' equity
--------------------------------------------------------------------------------
| DKK 1,000 | Shar | Provis | Reserve | Propo- | Profit | Total |
| | e | ions | for net | sed | carried | share-ho |
| | capi | for | revalua-t | di | forward | lders' |
| | tal | re-val | ion under | vidend | | e |
| | | uation | the | etc. | | quity |
| | | | intrinsic | | | |
| | | | value | | | |
| | | | method | | | |
--------------------------------------------------------------------------------
| On 30 September | 25,2 | 0 | 162 | 0 | 2,030,4 | 2,055,77 |
| 2010: | 00 | | | | 11 | 3 |
| Shareholders' | | | | | | |
| equity at the end | | | | | | |
| of the previous | | | | | | |
| financial year | | | | | | |
--------------------------------------------------------------------------------
| Purchase and sale | | | | | -17,201 | -17,201 |
| of own shares | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | 2,493 | 2,493 |
| shareholders' | | | | | | |
| equity items | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | 192,371 | 192,371 |
| period | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 25,2 | 0 | 162 | 0 | 2,208,0 | 2,233,43 |
| equity on the | 00 | | | | 74 | 6 |
| balance sheet date | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| On 30 September | 25,2 | 0 | 188 | 0 | 1,759,4 | 1,784,79 |
| 2009: | 00 | | | | 02 | 0 |
| Shareholders' | | | | | | |
| equity at the end | | | | | | |
| of the previous | | | | | | |
| financial year | | | | | | |
--------------------------------------------------------------------------------
| Purchase and sale | | | | | 59,748 | 59,748 |
| of own shares | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | 2,698 | 2,698 |
| shareholders' | | | | | | |
| equity items | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | -26 | | 188,217 | 188,191 |
| period | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 25,2 | 0 | 162 | 0 | 2,010,0 | 2,035,42 |
| equity on the | 00 | | | | 65 | 7 |
| balance sheet date | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| On 31 December | 25,2 | 0 | 188 | 0 | 1,759,4 | 1,784,79 |
| 2009: | 00 | | | | 02 | 0 |
| Shareholders' | | | | | | |
| equity at the end | | | | | | |
| of the previous | | | | | | |
| financial year | | | | | | |
--------------------------------------------------------------------------------
| Purchase and sale | | | | | 55,583 | 55,583 |
| of own shares | | | | | | |
--------------------------------------------------------------------------------
| Tax regarding | | | | | -20,278 | -20,278 |
| trade with own | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | 3,597 | 3,597 |
| shareholders' | | | | | | |
| equity items | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | -26 | | 232,107 | 232,081 |
| period | | | | | | |
--------------------------------------------------------------------------------
| Shareholders' | 25,2 | 0 | 162 | 0 | 2,030,4 | 2,055,77 |
| equity on the | 00 | | | | 11 | 3 |
| balance sheet date | | | | | | |
--------------------------------------------------------------------------------
Notes
--------------------------------------------------------------------------------
| Note | 1.1-30.9 | 1.1-30.9 | 1.1-31.12 |
| | 2010 | 2009 | 2009 |
| | DKK | DKK 1,000 | DKK |
| | 1,000 | | 1,000 |
--------------------------------------------------------------------------------
| 1 | Interest receivable | | | |
--------------------------------------------------------------------------------
| | Claims on credit institutions and | 29,738 | 53,003 | 63,512 |
| | central banks | | | |
--------------------------------------------------------------------------------
| | Loans and other debtors | 564,544 | 672,175 | 865,961 |
--------------------------------------------------------------------------------
| | Loans - interest concerning the | -21,362 | -20,641 | -26,109 |
| | written-down part of loans | | | |
--------------------------------------------------------------------------------
| | Bonds | 37,451 | 49,687 | 65,062 |
--------------------------------------------------------------------------------
| | Total derivatives financial | 24,287 | 17,209 | 24,338 |
| | instruments, | | | |
--------------------------------------------------------------------------------
| | of which | | | |
--------------------------------------------------------------------------------
| | Currency contracts | 11,409 | 19,639 | 24,759 |
--------------------------------------------------------------------------------
| | Interest-rate contracts | 12,878 | -2,430 | -421 |
--------------------------------------------------------------------------------
| | Other interest receivable | 0 | 0 | 992 |
--------------------------------------------------------------------------------
| | Total interest receivable | 634,658 | 771,433 | 993,756 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| 2 | Interest payable | | | |
--------------------------------------------------------------------------------
| | Credit institutions and central | 34,068 | 83,254 | 94,946 |
| | banks | | | |
--------------------------------------------------------------------------------
| | Deposits and other debts | 110,914 | 185,788 | 230,197 |
--------------------------------------------------------------------------------
| | Issued bonds | 15,915 | 17,261 | 21,525 |
--------------------------------------------------------------------------------
| | Subordinated debt | 19,956 | 22,265 | 30,743 |
--------------------------------------------------------------------------------
| | Other interest payable | 0 | 0 | 317 |
--------------------------------------------------------------------------------
| | Total interest payable | 180,853 | 308,568 | 377,728 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| 3 | Gross income from fees and | | | |
| | commissions | | | |
--------------------------------------------------------------------------------
| | Securities trading | 25,688 | 19,386 | 26,678 |
--------------------------------------------------------------------------------
| | Asset management | 35,953 | 27,311 | 40,943 |
--------------------------------------------------------------------------------
| | Payment handling | 13,709 | 12,018 | 16,419 |
--------------------------------------------------------------------------------
| | Loan fees | 7,123 | 6,935 | 9,854 |
--------------------------------------------------------------------------------
| | Guarantee commissions | 23,728 | 22,059 | 29,991 |
--------------------------------------------------------------------------------
| | Other fees and commissions | 13,584 | 10,436 | 16,477 |
--------------------------------------------------------------------------------
| | Total gross income from fees and | 119,785 | 98,145 | 140,362 |
| | commissions | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | Net income from fees and | | | |
| | commissions | | | |
--------------------------------------------------------------------------------
| | Securities trading | 19,136 | 13,879 | 18,788 |
--------------------------------------------------------------------------------
| | Asset management | 32,613 | 24,452 | 36,983 |
--------------------------------------------------------------------------------
| | Payment handling | 12,199 | 10,895 | 14,868 |
--------------------------------------------------------------------------------
| | Loan fees | 5,536 | 5,152 | 7,401 |
--------------------------------------------------------------------------------
| | Guarantee commissions | 23,728 | 22,059 | 29,991 |
--------------------------------------------------------------------------------
| | Other fees and commissions | 8,563 | 5,147 | 8,508 |
--------------------------------------------------------------------------------
| | Total net income from fees and | 101,775 | 81,584 | 116,539 |
| | commissions | | | |
--------------------------------------------------------------------------------
| | Foreign exchange income | 17,224 | 13,565 | 16,515 |
--------------------------------------------------------------------------------
| | Total net income from fees, | 118,999 | 95,149 | 133,054 |
| | commissions and foreign exchange | | | |
| | income | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4 | Value adjustments | | | |
--------------------------------------------------------------------------------
| | Loans and other debtors at | 3,591 | 7,536 | 8,665 |
| | current value | | | |
--------------------------------------------------------------------------------
| | Bonds | 39,558 | 31,047 | 39,402 |
--------------------------------------------------------------------------------
| | Shares etc. | 229 | 2,620 | 7,159 |
--------------------------------------------------------------------------------
| | Shares etc. in sector companies | 6,197 | 2,119 | 5,246 |
--------------------------------------------------------------------------------
| | Foreign exchange income | 17,224 | 13,565 | 16,515 |
--------------------------------------------------------------------------------
| | Total derivatives financial | -6,837 | 5,742 | -5,758 |
| | instruments | | | |
--------------------------------------------------------------------------------
| | Issued bonds | -2,600 | 3,965 | 5,937 |
--------------------------------------------------------------------------------
| | Other liabilities | -11,943 | -28,514 | -19,036 |
--------------------------------------------------------------------------------
| | Total value adjustments | 45,419 | 38,080 | 58,130 |
--------------------------------------------------------------------------------
Notes
--------------------------------------------------------------------------------
| Note | | 1.1-30.9 | 1.1-30.9 | 1.1-31.12 |
| | | 2010 | 2009 | 2009 |
| | | DKK | DKK | DKK |
| | | 1,000 | 1,000 | 1,000 |
--------------------------------------------------------------------------------
| 5 | Staff and administration costs | | | |
--------------------------------------------------------------------------------
| | Salaries and payments to the board | | | |
| | of directors, board of managers | | | |
| | and shareholders' committee | | | |
--------------------------------------------------------------------------------
| | Board of managers | 4,254 | 4,013 | 5,873 |
--------------------------------------------------------------------------------
| | Board of directors | 432 | 415 | 847 |
--------------------------------------------------------------------------------
| | Shareholders' committee | 0 | 0 | 307 |
--------------------------------------------------------------------------------
| | Total | 4,686 | 4,428 | 7,027 |
--------------------------------------------------------------------------------
| | Staff costs | | | |
--------------------------------------------------------------------------------
| | Salaries | 81,574 | 78,757 | 110,783 |
--------------------------------------------------------------------------------
| | Pensions | 8,426 | 8,102 | 11,111 |
--------------------------------------------------------------------------------
| | Social security expenses | 10,012 | 9,224 | 12,660 |
--------------------------------------------------------------------------------
| | Total | 100,012 | 96,083 | 134,554 |
--------------------------------------------------------------------------------
| | Other administration costs | 69,492 | 65,401 | 94,023 |
--------------------------------------------------------------------------------
| | Total staff and administration | 174,190 | 165,912 | 235,604 |
| | costs | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| 6 | Number of employees | | | |
--------------------------------------------------------------------------------
| | Average number of employees during | 254.9 | 262.3 | 262.0 |
| | the period converted into | | | |
| | full-time employees | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| 7 | Tax | | | |
--------------------------------------------------------------------------------
| | Tax calculated on the period | 63,400 | 61,300 | 64,201 |
| | profit | | | |
--------------------------------------------------------------------------------
| | Adjustment of deferred tax | 0 | 0 | 8,572 |
--------------------------------------------------------------------------------
| | Adjustment of tax calculated for | 0 | 0 | 2 |
| | previous years | | | |
--------------------------------------------------------------------------------
| | Total tax | 63,400 | 61,300 | 72,775 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | Effective tax rate (per cent): | | | |
--------------------------------------------------------------------------------
| | The current tax rate of the bank | 25.0 | 25.0 | 25.0 |
--------------------------------------------------------------------------------
| | Adjustment of tax of non-liable | -0.2 | -0.4 | -1.1 |
| | income and non-deductible costs | | | |
--------------------------------------------------------------------------------
| | Adjustment of tax calculated for | 0.0 | 0.0 | 0.0 |
| | previous years | | | |
--------------------------------------------------------------------------------
| | Total effective tax rate | 24.8 | 24.6 | 23.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Note | | End | End | End |
| | | Sept | Sept. | Dec. |
| | | . | 2009 | 2009 |
| | | 2010 | DKK | DKK |
| | | DKK | 1,000 | 1,000 |
| | | 1,000 | | |
--------------------------------------------------------------------------------
| 8 | Claims on credit institutions and | | | |
| | central banks | | | |
--------------------------------------------------------------------------------
| | Claims at call | 349,220 | 67,225 | 306,531 |
--------------------------------------------------------------------------------
| | Up to and including 3 months | 1,006,99 | 1,016,944 | 1,298,234 |
| | | 4 | | |
--------------------------------------------------------------------------------
| | More than 3 months and up to and | 660,000 | 1,271,720 | 796,442 |
| | including 1 year | | | |
--------------------------------------------------------------------------------
| | More than 1 year and up to and | 259,116 | 58,034 | 54,324 |
| | including 5 years | | | |
--------------------------------------------------------------------------------
| | More than 5 years | 7,864 | 37,546 | 36,468 |
--------------------------------------------------------------------------------
| | Total claims on credit | 2,283,19 | 2,451,469 | 2,491,999 |
| | institutions and central banks | 4 | | |
--------------------------------------------------------------------------------
Notes
--------------------------------------------------------------------------------
| Note | | End | End | End |
| | | Sept | Sept. | Dec. |
| | | . | 2009 | 2009 |
| | | 2010 | DKK | DKK |
| | | DKK | 1,000 | 1,000 |
| | | 1,000 | | |
--------------------------------------------------------------------------------
| 9 | Loans and other debtors at | | | |
| | amortised cost price | | | |
--------------------------------------------------------------------------------
| | At call | 2,989,88 | 2,947,180 | 2,851,137 |
| | | 3 | | |
--------------------------------------------------------------------------------
| | Up to and including 3 months | 565,567 | 673,124 | 862,975 |
--------------------------------------------------------------------------------
| | More than 3 months and up to and | 2,024,99 | 2,411,841 | 2,066,758 |
| | including 1 year | 7 | | |
--------------------------------------------------------------------------------
| | More than 1 year and up to and | 4,116,82 | 3,929,989 | 4,155,151 |
| | including 5 years | 2 | | |
--------------------------------------------------------------------------------
| | More than 5 years | 3,242,15 | 3,115,451 | 3,111,191 |
| | | 5 | | |
--------------------------------------------------------------------------------
| | Total loans and other debtors at | 12,939,4 | 13,077,58 | 13,047,21 |
| | amortised cost price | 24 | 5 | 2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 10 | Write-downs on loans and other | | | |
| | debtors and provisions for losses | | | |
| | on guarantees | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | Individual write-downs | | | |
--------------------------------------------------------------------------------
| | Cumulative individual write-downs | 424,517 | 336,820 | 336,820 |
| | on loans and other debtors at the | | | |
| | end of the previous financial year | | | |
--------------------------------------------------------------------------------
| | Write-downs/value adjustments | 215,675 | 160,177 | 195,056 |
| | during the period | | | |
--------------------------------------------------------------------------------
| | Reverse entry - write-downs made | -94,670 | -55,885 | -53,832 |
| | in previous financial years | | | |
--------------------------------------------------------------------------------
| | Booked losses covered by | -43,799 | -30,811 | -53,527 |
| | write-downs | | | |
--------------------------------------------------------------------------------
| | Cumulative individual write-downs | 501,723 | 410,301 | 424,517 |
| | on loans and other debtors on the | | | |
| | balance sheet date | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | Group write-downs | | | |
--------------------------------------------------------------------------------
| | Cumulative group write-downs on | 41,132 | 17,594 | 17,594 |
| | loans and other debtors at the end | | | |
| | of the previous financial year | | | |
--------------------------------------------------------------------------------
| | Write-downs/value adjustments | 0 | 16,043 | 35,167 |
| | during the period | | | |
--------------------------------------------------------------------------------
| | Reverse entry - write-downs made | -9,867 | 0 | -11,629 |
| | in previous financial years | | | |
--------------------------------------------------------------------------------
| | Cumulative group write-downs on | 31,265 | 33,637 | 41,132 |
| | loans and other debtors on the | | | |
| | balance sheet date | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | Total cumulative write-downs on | 532,988 | 443,938 | 465,649 |
| | loans and other debtors on the | | | |
| | balance sheet date | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | Provisions for losses on | | | |
| | guarantees | | | |
--------------------------------------------------------------------------------
| | Cumulative individual provisions | 1,376 | 1,669 | 1,669 |
| | for losses on guarantees at the | | | |
| | end of the previous financial year | | | |
--------------------------------------------------------------------------------
| | Provisions/value adjustments | 2,852 | 688 | 3,822 |
| | during the period | | | |
--------------------------------------------------------------------------------
| | Reverse entry - provisions made in | -993 | -414 | -4,115 |
| | previous financial years | | | |
--------------------------------------------------------------------------------
| | Cumulative individual provisions | 3,235 | 1,943 | 1,376 |
| | for losses on guarantees on the | | | |
| | balance sheet date | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | Total cumulative write-downs on | 536,223 | 445,881 | 467,025 |
| | loans and other debtors and | | | |
| | provisions for losses on | | | |
| | guarantees on the balance sheet | | | |
| | date | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 11 | Suspended calculation of interest | | | |
--------------------------------------------------------------------------------
| | Loans and other debtors with | 75,471 | 59,717 | 62,649 |
| | suspended calculation of interest | | | |
| | on the balance sheet date | | | |
--------------------------------------------------------------------------------
Notes
--------------------------------------------------------------------------------
| Note | | End | End | End |
| | | Sept. | Sept. | Dec. |
| | | 2010 | 2009 | 2009 |
| | | DKK | DKK | DKK |
| | | 1,000 | 1,000 | 1,000 |
--------------------------------------------------------------------------------
| 12 | Bonds at current value | | | |
--------------------------------------------------------------------------------
| | Listed on the stock exchange | 2,260,331 | 1,754,371 | 1,679,453 |
--------------------------------------------------------------------------------
| | Total bonds at current value | 2,260,331 | 1,754,371 | 1,679,453 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| 13 | Shares etc. | | | |
--------------------------------------------------------------------------------
| | Listed on NASDAQ OMX Copenhagen | 38,749 | 21,652 | 25,428 |
--------------------------------------------------------------------------------
| | Listed on other stock exchanges | 0 | 12 | 0 |
--------------------------------------------------------------------------------
| | Unlisted shares at current | 1,366 | 7,139 | 2,591 |
| | value | | | |
--------------------------------------------------------------------------------
| | Sector shares at current value | 212,429 | 196,197 | 204,527 |
--------------------------------------------------------------------------------
| | Other holdings | 21,410 | 24,151 | 24,151 |
--------------------------------------------------------------------------------
| | Total shares etc. | 273,954 | 249,151 | 256,697 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| 14 | Debt to credit institutions and | | | |
| | central banks | | | |
--------------------------------------------------------------------------------
| | Debt payable on demand | 381,722 | 379,943 | 407,506 |
--------------------------------------------------------------------------------
| | Up to and including 3 months | 85,364 | 585,491 | 240,334 |
--------------------------------------------------------------------------------
| | More than 3 months and up to | 473,283 | 49,662 | 51,892 |
| | and including 1 year | | | |
--------------------------------------------------------------------------------
| | More than 1 year and up to and | 1,631,745 | 2,043,670 | 1,974,750 |
| | including 5 years | | | |
--------------------------------------------------------------------------------
| | More than 5 years | 331,667 | 331,667 | 320,241 |
--------------------------------------------------------------------------------
| | Total debt to credit | 2,903,781 | 3,390,433 | 2,994,723 |
| | institutions and central banks | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | The bank has undrawn long-term | | | |
| | committed | | | |
| | revolving credit | | | |
| | facilities equivalent to: | | | |
--------------------------------------------------------------------------------
| | Term to maturity under 1 year | 596,152 | 0 | 300,000 |
--------------------------------------------------------------------------------
| | Term to maturity over 1 year | 174,519 | 976,180 | 769,735 |
--------------------------------------------------------------------------------
| | Total | 770,671 | 976,180 | 1,069,735 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | The bank also has an undrawn | 800,000 | 800,000 | 800,000 |
| | loan facility with the Central | | | |
| | Bank of Denmark on the basis of | | | |
| | statutory excess solvency which | | | |
| | expires on 26 February 2011 of | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 15 | Deposits and other debts | | | |
--------------------------------------------------------------------------------
| | On demand | 6,050,190 | 5,066,766 | 5,318,439 |
--------------------------------------------------------------------------------
| | Deposits and other debts at | | | |
| | notice: | | | |
--------------------------------------------------------------------------------
| | Up to and including 3 months | 1,780,557 | 1,955,622 | 2,019,860 |
--------------------------------------------------------------------------------
| | More than 3 months and up to | 808,337 | 1,243,670 | 1,141,367 |
| | and including 1 year | | | |
--------------------------------------------------------------------------------
| | More than 1 year and up to and | 1,254,001 | 1,293,071 | 1,251,393 |
| | including 5 years | | | |
--------------------------------------------------------------------------------
| | More than 5 years | 1,280,666 | 1,246,924 | 1,456,411 |
--------------------------------------------------------------------------------
| | Total deposits and other debts | 11,173,75 | 10,806,053 | 11,187,470 |
| | | 1 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Distributed as follows: | | | |
--------------------------------------------------------------------------------
| | On demand | 5,942,581 | 4,707,049 | 4,870,100 |
--------------------------------------------------------------------------------
| | At notice | 123,357 | 67,451 | 88,810 |
--------------------------------------------------------------------------------
| | Time deposits | 2,359,886 | 3,198,445 | 3,174,223 |
--------------------------------------------------------------------------------
| | Long term deposit agreements | 1,638,459 | 1,715,936 | 1,801,769 |
--------------------------------------------------------------------------------
| | Special types of deposits | 1,109,468 | 1,117,172 | 1,252,568 |
--------------------------------------------------------------------------------
| | | 11,173,75 | 10,806,053 | 11,187,470 |
| | | 1 | | |
--------------------------------------------------------------------------------
Notes
--------------------------------------------------------------------------------
| Note | | End | End | End |
| | | Sept | Sept. | Dec. |
| | | . | 2009 | 2009 |
| | | 2010 | DKK | DKK |
| | | DKK | 1,000 | 1,000 |
| | | 1,000 | | |
--------------------------------------------------------------------------------
| 16 | Issued bonds at amortised cost | | | |
| | price | | | |
--------------------------------------------------------------------------------
| | On demand | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| | Up to and including 3 months | 432,737 | 0 | 0 |
--------------------------------------------------------------------------------
| | More than 3 months and up to and | 0 | 0 | 446,461 |
| | including 1 year | | | |
--------------------------------------------------------------------------------
| | More than 1 year and up to and | 327,357 | 457,500 | 11,264 |
| | including 5 years | | | |
--------------------------------------------------------------------------------
| | More than 5 years | 0 | 90,497 | 99,612 |
--------------------------------------------------------------------------------
| | Total issued bonds at amortised | 760,094 | 547,997 | 557,337 |
| | cost price | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Distributed as follows: | | | |
--------------------------------------------------------------------------------
| | Issues in Danish kroner | 220,000 | 0 | 0 |
| | Nom. 220 million DKK | | | |
--------------------------------------------------------------------------------
| | Issues in Norwegian kroner | | | |
--------------------------------------------------------------------------------
| | Nom. 500 million NOK | 467,600 | 439,950 | 447,100 |
--------------------------------------------------------------------------------
| | Own holdning of issued bonds | -44,444 | 0 | 0 |
--------------------------------------------------------------------------------
| | Nom. 100 million NOK | 93,520 | 87,990 | 89,420 |
--------------------------------------------------------------------------------
| | Regulation at amortised cost price | 9,581 | 8,792 | 6,980 |
| | and adjustment to | | | |
| | current value | | | |
| | of issues in Norwegian kroner | | | |
--------------------------------------------------------------------------------
| | Other issues | 13,837 | 11,265 | 13,837 |
--------------------------------------------------------------------------------
| | | 760,094 | 547,997 | 557,337 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 17 | Subordinated debt | | | |
--------------------------------------------------------------------------------
| | Subordinated loan capital: | | | |
--------------------------------------------------------------------------------
| | 3.995% bond loan, nom. DKK 300 | 300,000 | 300,000 | 300,000 |
| | million, | | | |
| | expiry 9.2.2014 | | | |
--------------------------------------------------------------------------------
| | Floating rate loan, principal EUR | 201,201 | 200,996 | 200,921 |
| | 27 million, expiry | | | |
| | 30.6.2021 | | | |
--------------------------------------------------------------------------------
| | Hybrid core capital: | | | |
--------------------------------------------------------------------------------
| | 4.795% bond loan, nom. DKK 200 | 200,000 | 200,000 | 200,000 |
| | million, | | | |
| | indefinite term | | | |
--------------------------------------------------------------------------------
| | Regulation at amortised cost price | 10,119 | 2,940 | 4,631 |
| | and adjustment to current value of | | | |
| | subordinated loan capital and | | | |
| | hybrid core capital | | | |
--------------------------------------------------------------------------------
| | Own holding of subordinated loan | -9,800 | -10,000 | -10,158 |
| | capital | | | |
--------------------------------------------------------------------------------
| | Total subordinated debt | 701,520 | 693,936 | 695,394 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| 18 | Share capital | | | |
--------------------------------------------------------------------------------
| | Number of shares at DKK 5 each: | | | |
--------------------------------------------------------------------------------
| | Beginning of period | 5,040,00 | 5,040,000 | 5,040,000 |
| | | 0 | | |
--------------------------------------------------------------------------------
| | Changes during the period | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| | End of period | 5,040,00 | 5,040,000 | 5,040,000 |
| | | 0 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Total share capital | 25,200 | 25,200 | 25,200 |
--------------------------------------------------------------------------------
Notes
--------------------------------------------------------------------------------
| Note | End | End | End |
| | Sept. | Sept. | Dec. |
| | 2010 | 2009 | 2009 |
| | DKK | DKK | DKK |
| | 1,000 | 1,000 | 1,000 |
--------------------------------------------------------------------------------
| 19 | Own capital shares | | | |
--------------------------------------------------------------------------------
| | Own capital shares included in | 0 | 0 | 0 |
| | the balance sheet at | | | |
--------------------------------------------------------------------------------
| | The market value is | 20,270 | 2,235 | 5,220 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | Number of own shares: | | | |
--------------------------------------------------------------------------------
| | Beginning of period | 8,572 | 204,333 | 204,333 |
--------------------------------------------------------------------------------
| | Net purchases and sales of own | +24,121 | -200,894 | -195,761 |
| | shares during the period | | | |
--------------------------------------------------------------------------------
| | End of period | 32,693 | 3,439 | 8,572 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Nominal value of holding of own | 163 | 17 | 43 |
| | shares, end of period | | | |
--------------------------------------------------------------------------------
| | Own shares' proportion of share | 0.6 | 0.1 | 0.2 |
| | capital, end of period (%) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 20 | Contingent liabilities etc. | | | |
--------------------------------------------------------------------------------
| | Contingent liabilities | | | |
--------------------------------------------------------------------------------
| | Finance guarantees | 819,825 | 729,674 | 1,009,540 |
--------------------------------------------------------------------------------
| | Guarantees for foreign loans | 8,599 | 96,975 | 29,613 |
--------------------------------------------------------------------------------
| | Guarantees against losses on | 44,445 | 48,181 | 48,774 |
| | mortgage credit loans | | | |
--------------------------------------------------------------------------------
| | Guarantee against losses | 110,221 | 120,892 | 116,327 |
| | Totalkredit | | | |
--------------------------------------------------------------------------------
| | Registration and conversion | 89,000 | 83,864 | 74,389 |
| | guarantees | | | |
--------------------------------------------------------------------------------
| | Guarantee on national bank | 77,493 | 119,340 | 109,886 |
| | package I | | | |
--------------------------------------------------------------------------------
| | Other contingent liabilities | 109,091 | 100,169 | 97,147 |
--------------------------------------------------------------------------------
| | Total contingent liabilities | 1,258,674 | 1,299,095 | 1,485,676 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | Binding agreements | | | |
--------------------------------------------------------------------------------
| | Irrevocable credit commitments | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| | Other | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| | Total binding agreements | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | As security for clearing and | 261,002 | 193,549 | 292,858 |
| | any debt, the bank has pledged | | | |
| | securities from its holding to | | | |
| | the Central Bank of Denmark to | | | |
| | a total market price of | | | |
--------------------------------------------------------------------------------
Notes
--------------------------------------------------------------------------------
| Note | End | End | End |
| | Sept. | Sept. | Dec. |
| | 2010 | 2009 | 2009 |
| | DKK | DKK | DKK |
| | 1,000 | 1,000 | 1,000 |
--------------------------------------------------------------------------------
| 21 | Capital adequacy computation | | | |
--------------------------------------------------------------------------------
| | Calculated pursuant to the | | | |
| | Executive order on Capital | | | |
| | Adequacy issued by the Danish | | | |
| | Financial Supervisory | | | |
| | Authority. | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | Weighted items with credit and | 11,605,910 | 11,488,21 | 11,378,127 |
| | counterpart risks | | 2 | |
--------------------------------------------------------------------------------
| | Market risk | 1,050,346 | 863,111 | 914,819 |
--------------------------------------------------------------------------------
| | Operational risk | 1,322,788 | 1,251,250 | 1,322,788 |
--------------------------------------------------------------------------------
| | Total risk weighted items | 13,979,044 | 13,602,57 | 13,615,734 |
| | | | 3 | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | Share capital | 25,200 | 25,200 | 25,200 |
--------------------------------------------------------------------------------
| | Reserve for net revaluation | 162 | 162 | 162 |
| | under the intrinsic value | | | |
| | method | | | |
--------------------------------------------------------------------------------
| | Profit carried forward | 2,208,073 | 2,010,065 | 2,030,411 |
--------------------------------------------------------------------------------
| | Core capital | 2,233,435 | 2,035,427 | 2,055,773 |
--------------------------------------------------------------------------------
| | Proposed dividend etc. | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| | Deduction from / addition to | -162 | -27,875 | -162 |
| | the core capital | | | |
--------------------------------------------------------------------------------
| | Core capital after deductions | 2,233,273 | 2,007,552 | 2,055,611 |
--------------------------------------------------------------------------------
| | Hybrid core capital | 200,000 | 200,000 | 200,000 |
--------------------------------------------------------------------------------
| | Core capital after deductions | 2,433,273 | 2,207,552 | 2,255,611 |
| | incl. hybrid core capital | | | |
--------------------------------------------------------------------------------
| | Subordinated loan capital | 491,401 | 490,996 | 490,921 |
--------------------------------------------------------------------------------
| | Deduction from / addition to | 162 | 162 | 162 |
| | the capital base | | | |
--------------------------------------------------------------------------------
| | Capital base after deductions | 2,924,836 | 2,698,710 | 2,746,694 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Core capital ratio excl. hybrid | 16.0 | 14.8 | 15.1 |
| | core capital (per cent) | | | |
--------------------------------------------------------------------------------
| | Core capital ratio (per cent) | 17.4 | 16.2 | 16.6 |
--------------------------------------------------------------------------------
| | Solvency ratio (per cent) | 20.9 | 19.8 | 20.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Capital base requirements under | 1,118,324 | 1,088,206 | 1,089,259 |
| | Section 124 (2,1) of the Danish | | | |
| | Financial Business Act | | | |
--------------------------------------------------------------------------------
| | Minimum capital requirements | 37,260 | 37,222 | 37,208 |
| | under Section 124 (2,2) of the | | | |
| | Danish Financial Business Act | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Note | |
--------------------------------------------------------------------------------
| 22 | Miscellaneous comments on: |
--------------------------------------------------------------------------------
| | Main and key figures for the bank and key figures per DKK 5 share - |
| | page 6 |
| | Total capital base is calculated as the banks capital base after |
| | deductions, cf. note 21. |
| | Key figures per DKK 5 share for 1st-3rd quarter 2010, 1st-3rd |
| | quarter 2009 and for the full year 2009 are all calculated on the |
| | basis of 5,040,000 shares. |
| | Core earnings - pages 1 and 3 |
| | The comparative figures for the years 2001-2005 have not been |
| | adjusted for the change made in 2007 from actual banking operations |
| | to core earnings. |
| | Write-downs - page 1 and 2 |
| | All calculations etc. concerning write-downs on pages 1 and 2 were |
| | made excl. of amounts under the bank package I. |
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Main figures summary
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| | 1st-3rd | 1st-3rd | Full year |
| | qtr. | qtr. | 2009 |
| | 2010 | 2009 | |
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| Profit and loss account summary (million DKK) |
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| Net income from interest | 454 | 463 | 616 |
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| Dividend on capital shares etc. | 1 | 3 | 3 |
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| Net income from fees and commissions | 102 | 91 | 126 |
| etc. | | | |
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| Net income from interest and fees | 557 | 557 | 745 |
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| Value adjustments | +46 | +38 | +58 |
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| Other ordinary income | 3 | 3 | 6 |
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| Staff and administration costs | 174 | 166 | 236 |
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| Amortisation, depreciation etc. on | 2 | 2 | 2 |
| tangible assets | | | |
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| Total other operating costs | 47 | 41 | 56 |
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| Total write-downs | -127 | -140 | -210 |
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| Profit before tax | 256 | 249 | 305 |
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| Tax | 64 | 61 | 73 |
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| Profit after tax | 192 | 188 | 232 |
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| Main figures from the balance sheet (million DKK) |
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| Loans and other debtors | 12,939 | 13,078 | 13,047 |
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| Deposits and other debts | 11,174 | 10,806 | 11,187 |
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| Subordinated debt | 702 | 694 | 695 |
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| Shareholders' equity | 2,233 | 2,035 | 2,056 |
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| Balance sheet total | 18,409 | 17,925 | 17,928 |
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Danish Financial Supervisory Authority
key figures for Danish banks
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| | 1st-3rd | 1st-3rd | Full |
| | qtr. | qtr. | year |
| | 2010 | 2009 | 2009 |
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| Solvency ratio | % | 20.9 | 19.8 | 20.2 |
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| Core capital ratio | % | 17.4 | 16.2 | 16.6 |
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| Pre-tax return on equity | % | 11.9 | 13.1 | 15.9 |
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| Return on equity after tax | % | 9.0 | 9.9 | 12.1 |
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| Income/cost ratio | DKK | 1.73 | 1.72 | 1.61 |
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| Interest risk | % | 0.8 | 1.0 | 0.6 |
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| Foreign exchange position | % | 1.2 | 1.8 | 3.4 |
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| Foreign exchange risk | % | 0.0 | 0.0 | 0.1 |
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| Excess cover relative to | % | 259.4 | 212.2 | 205.6 |
| statutory liquidity requirements | | | | |
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| Loans and write-downs thereon | % | 120.6 | 125.0 | 120.8 |
| relative to deposits | | | | |
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| Loans relative to shareholders' | | 5.8 | 6.4 | 6.3 |
| equity | | | | |
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| Growth in loans | % | 0.0 | -5.9 | -6.1 |
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| Total large exposures | % | 0.0 | 0.0 | 0.0 |
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| Cumulative write-down percentage | % | 3.6 | 2.9 | 3.1 |
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| Write-down percentage for the | % | 0.86 | 0.70 | 1.16 |
| period | | | | |
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| Proportion of debtors at reduced | % | 0.6 | 0.4 | 0.4 |
| interest | | | | |
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| Result after tax per share * / | DKK | 763.4 | 746.8 | 921.0 |
| *** | | | | |
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| Book value per share * / ** | DKK | 8,921 | 8,083 | 8,172 |
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| Price/result per share * / *** | | 16.2 | 17.4 | 13.2 |
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| Price/book value per share * / | | 1.39 | 1.61 | 1.49 |
| ** | | | | |
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| * Calculated on the basis of a denomination of DKK 100 per share. |
| ** Calculated on the basis of number of shares outstanding at the end of the |
| period. |
| *** Calculated on the basis of the average number of shares. |
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Management's Statement
The board of directors and the board of managers have today approved the interim
report of Ringkjøbing Landbobank for the period 1 January - 30 September 2010.
The interim report is prepared in accordance with the provisions of the Danish
Financial Business Act and additional Danish requirements placed on listed
financial companies regarding disclosure.
We consider the accounting policies to be appropriate and the estimates which
have been made to be responsible, so that the interim report provides a true and
fair picture of the bank's assets, liabilities and financial position as of 30
September 2010 and of the result of the bank's activities for the period
1
January - 30 September 2010. We also believe that the management report provides
a true and fair review of developments in the bank's activities and financial
circumstances, and a description of the most significant risks and uncertainties
which could affect the bank.
The interim report has been reviewed, and the external auditor has ensured that
the terms for ongoing inclusion of the period's earnings in the core capital
have been complied with.
Ringkøbing, 27 October 2010
Board of managers:
Bent Naur John Fisker
Executive General Manager General Manager
Board of directors:
Jens Lykke Kjeldsen Gravers Kjærgaard
Chairman Deputy chairman
Gert Asmussen Keld Hansen
Bo Bennedsgaard
Employee Representative
