Ringkjøbing Landbobank’s interim report 2018
This is the first financial report presented after the merger with Nordjyske Bank. The financial report contains both official financial statements and pro forma financial statements.
Both statements show improvements compared to the same period last year, and the merger has made a good start. Our expectations, as announced before the merger, remain valid.
Core earnings - pro forma
| (DKK million) | H1 2018 | H1 2017 | 2017 | 2016 |
| Total core income | 1,011 | 973 | 1,917 | 1,861 |
| Total expenses and depreciation | -435 | -409 | -845 | -815 |
| Core earnings before impairment charges for loans | 576 | 564 | 1,072 | 1,046 |
| Impairment charges for loans etc. | +2 | -56 | -70 | -211 |
| Core earnings | 578 | 508 | 1,002 | 835 |
| Result for the portfolio etc. | +93 | +64 | +84 | +78 |
| Profit before special costs | 671 | 572 | 1,086 | 913 |
Highlights of the first half-year 2018
- The integration of the two banks is proceeding as expected
- The merger has been well received by the customers of the entire bank
- The pro forma financial statements for the first half of 2018 show a 14% increase in core earnings to DKK 578 million and a 17% increase in profit before special costs to DKK 671 million
- Continued increase in customers and 5% growth in loans to DKK 32 billion
- Expansion of Private Banking with a new branch in Aalborg
- The outlined synergies of DKK 60 million in the short term are confirmed
- The DKK 170 million share buy-back programme has been completed and a new DKK 300 million programme will be initiated
- Common equity tier 1 capital ratio 15.1; total capital ratio 19.1
- Moody’s has confirmed all its ratings of the bank with stable outlook and a long-term rating of A1
Yours sincerely
Ringkjøbing Landbobank
John Fisker
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