• Core income for Q1 amounted to DKK 734 million, equal to a 36% decline compared with Q1 2015 – adjusted for the impact of the sale of the Nørresundby Bank shareholding in 2015, this represented a 20% drop.
• Net interest income dropped by 12% compared with the same period last year, and by 5% relative to the previous quarter – the lending volume is growing, but the interest margin remains under pressure.
• Net income from fees, charges and commissions came to DKK 250 million, which is 20% down on last year’s extraordinarily good Q1, but 5% up on the previous quarter.
• Market-value adjustments and dividends amounted to DKK 72 million, equal to a drop of 46% on last year (adjusted for the sale of the Nørresundby Bank shareholding).
• Costs and expenses came to DKK 475 million, which is 2% down on Q1 2015 – payroll costs grew by 1%, while other operating expenses declined by 7%.
• Thus, core earnings before impairment in Q1 ended at DKK 259 million, which is 41% down on the same period of 2015 after adjustments for the sale of the Nørresundby Bank shareholding, but 6% up on the previous quarter.
• Loan impairment losses shrank to DKK 55 million, equal to an annualized impairment ratio of 0.42% – the profit impact from impairment losses related to agriculture represents 100% of the total profit impact from impairment losses for Q1.
• The negative trend in lending volume has reversed, as the quarter ended with bank and leasing lending at DKK 1.1 billion, or 3%, up on end-2015.
• Preparations for IT migration from SDC to BEC are progressing according to plan, with completion of migration expected at the beginning of May – the benefits announced earlier are still expected to be realized.
• Full-year core earnings before impairment still expected to hover around DKK 1.1 billion and writedowns for impairment to be realized around the 2015 level.
Contact: Ole Madsen, Senior Vice President, Communication & Business Development, tel.: +45 9634 4010
