Announcement no. 15-2009
28 October 2009
Company Announcement
Announcement of Interim Report - Q1 - Q3 2009
Core earnings before loan impairment charges are better than expected and
satisfactory. Impairment of loans and advances at a high level and influenced by
subsequent adjustments as at 30 June 2009.
Expectations for core earnings before loan impairment charges in 2009 are
maintained.
Today, Amagerbanken's Board of Directors approved the interim report - Q1 - Q3
2009 submitted on continued weak market conditions with exceptional risk and
insecurity as a consequence. See enclosed interim report - Q1 - Q3 2009.
The following should be noted:
Core income amounted to DKK 832m, which is as expected.
Cost ratio of 52.2%, which is better than expected.
Core earnings before loan impairment charges amounted to DKK 398m, which is
better than expected.
Impairment of loans and advances amounted to DKK 1,087m or 5.9% p.a. of which
DKK 600m are subsequent adjustments of the Bank's interim report as at 30 June
2009 among other things due to a decision by the Danish Securities Council of
the valuation of guarantees of listed securities and value adjustments due to
changed assessment of certain properties
Investment portfolio amounted to DKK 126m against negative DKK 185m in Q1 - Q3
2008.
Sector related costs amounted to DKK 156m and is a substantial expense in Q1 -
Q3 2009. Costs relate to the Bank's contribution to the Danish Contingency
Committee under Bank Package I.
The net result for the period before tax amounted to negative DKK 719m
Loans and advances dropped by DKK 2,085m since end of December 2008.
The solvency ratio is 8.9%, of which core capital 4.7%.
The Bank will amend its interim report as at 30 June 2009 due to the
above-mentioned subsequent adjustments.
End of April the Bank applied for DKK 1,400m as state-funded capital injection
(Bank Package II).
The case in the Danish Company Appeals Board of the Bank's individual solvency
was argued on 26 October 2009. At present no decision has been issued.
Expectations for core earnings before loan impairment charges for all 2009 are
maintained at the level DKK 480 - 520m. Interest expenses deriving from capital
injection according to Act on state-funded capital injections into credit
institutions are not included.
The Bank's capital base will be strengthened through increase of the Bank's
share capital and subordinate capital by up to a total of DKK 1,250m. The
strengthening of the capital base is expected to be completed in December 2009.
Subscription commitment of DKK 500m to strengthen the subordinated capital has
been received. Please see separate company announcement no. 16-2009 of 28
October 2009.
By the planned increase of capital the Bank will meet the statutory solvency
requirement in order for the Bank's application for Bank Package II to be
finalised.
“The Bank is satisfied with earnings, but is obviously not satisfied with the
high loan impairment charges, which primarily relate to the changed assessment
criteria due to decision from the Danish Securities Council against another
bank. Subsequent to the adjustments and in particular following the planned
capital injection in December 2009 and the assumed participation in Bank Package
II, a solid foundation is created for the Bank's future”, says Mr. Jørgen
Brændstrup, Managing Director and Chief Executive.
Please direct inquiries to:
Mr. Jørgen Brændstrup, Managing Director and Chief Executive
at phone no. +45 32 66 60 01
Announcement of Interim Report - Q 1 - Q 3 2009
| Source: Amagerbanken A/S
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