Highlights
• Alm. Brand Bank A/S posted a profit of DKK 91 million before tax and before
losses and writedowns for the nine months ended 30 September 2010.
• The Q3 performance was a loss of DKK 23 million before tax and before losses
and writedowns. The loss was attributable to provisions for restructurings and
branch office closures as well as to an unrealised capital loss on mortgage
deeds.
• As a result of the unrealised capital loss on mortgage deeds, the bank
downgrades its full-year guidance by DKK 50 million to a profit of around DKK
90 million before tax and before losses and writedowns.
• Total impairment writedowns on loans, including credit-related losses and
writedowns on mortgage deeds, amounted to DKK 465 million in Q3 2010.
Other highlights
• The bank's net interest income was DKK 406 million for the year to date, an
increase of DKK 68 million relative to the year-earlier period. The favourable
performance was driven partly by lower interest expenses on fixed-rate deposits
and partly by investments in high-yielding bonds.
• Year to date, impairment writedowns on loans amounted to DKK 548 million,
while credit losses and writedowns on the bank's mortgage deed portfolio
totalled DKK 203 million. Accordingly, total losses and writedowns amounted to
DKK 751 million for the nine months ended 30 September 2010.
• The bank's costs amounted to DKK 138 million in Q3 2010, against DKK 129
million in the same period of last year. The higher cost level was caused by
provisions in the amount of DKK 18 million for restructurings and branch office
closures in Q3. The year-to-date expenses were in line with the same period of
last year.
• The full-year guidance before tax and before losses and writedowns is
downgraded, primarily as a result of an adjustment of the valuation of the
mortgage deed portfolio in the bank and in the bank's partly owned subsidiary
Alm. Brand Pantebreve A/S in Q3 2010. The adjustment of the valuation was
attributable to an update of the security ranking of Danish mortgage deeds in
the respective properties on the basis of the most recent selling price
statistics and the most recent public property value assessment, respectively.
• Management has increased the individual solvency need to 14.1% going forward
and, due to a more conservative assessment of mortgage deed-related lending,
adjusted the expected impairment writedowns for the period until 31 December
2012 to almost DKK 700 million.
• At 17 November 2010, Alm. Brand A/S contributed DKK 600 million in equity to
Alm. Brand Bank.
Please direct any questions regarding this announcement to Ole Joachim Jensen,
Chief Executive, on tel. +45 35 47 48 49 or Susanne Biltoft, Head of
Information and Investor Relations, on tel. +45 35 47 76 61.
Alm. Brand Bank A/S
Ole Joachim Jensen
Chief Executive
