Alm. Brand Bank A/S – Interim report H1 2013
Copenhagen, 2013-08-22 08:41 CEST (GLOBE NEWSWIRE) -- Highlights
- The bank posted a loss of DKK 79 million before losses and writedowns in H1 2013. In Q2 2013, the loss came to DKK 44 million. The performance was not satisfactory and almost DKK 35 million less than expected.
- The performance was favourably affected by an improved interest margin and an increase in fee income from trading activities but adversely affected by low borrowing requirements in the private customer segment and negative value adjustments caused by rising interest rates in the latter half of June.
- Total losses and writedowns, including credit-related value adjustments, amounted to DKK 91 million in Q2 2013.
- The pre-tax performance was a loss of DKK 135 million in Q2 and a loss of DKK 262 million in H1 2013.
- Alm. Brand A/S today injected DKK 200 million into Alm. Brand Bank A/S as equity. The capital injection will be used to repay an additional DKK 200 million of the remaining state-funded hybrid core capital.
- Due to the negative value adjustments of the second quarter, declining customer borrowing requirements, higher than expected operating expenses for properties taken over and higher than expected expenses to the Guarantee Fund for Depositors and Investors, the full-year guidance is lowered from a loss of DKK 45 million before losses and writedowns to a loss of DKK 100 million.
Other highlights
- The bank's net interest income increased by DKK 11 million to DKK 65 million in Q2 2013 from DKK 54 million in Q1 2013. During the same period, the bank's interest margin rose from 1.2% to 1.6%.
- The bank's net fee income increased by DKK 11 million to DKK 43 million in Q2 2013 from DKK 32 million in Q1 2013. The increase was attributable to higher brokerage income in Financial Markets.
- The bank experienced fair growth in its three continuing business areas in the six months ended 30 June 2013. There was a fair increase in the number of full-service, private customers and a higher level of activity in Financial Markets. In addition, Leasing grew by about 30% relative to 2012.
- Impairment writedowns on loans totalled DKK 43 million, and credit-related value adjustments amounted to DKK 48 million. Accordingly, total losses and writedowns amounted to DKK 91 million, compared with DKK 92 million in Q1.
- The bank's total payroll costs and administrative expenses amounted to DKK 106 million in Q2 2013, against DKK 102 million in Q1.
- At 30 June 2013, the bank had excess liquidity of DKK 3.1 billion, corresponding to an excess cover of 190% relative to the statutory requirement.
- At 30 June 2013, the bank's capital base totalled DKK 1.9 billion, and the solvency ratio was 19.0.
- The bank's individual solvency need was calculated at 14.1%.
Please direct any questions regarding this announcement to: Kim Bai Wadstrøm, Managing Director, tel. +45 35 47 70 14, or Susanne Biltoft, Head of Information and Investor Relations, tel. +45 35 47 76 61.
