Danske Andelskassers Bank
Danske Andelskassers Bank A/S – Interim report for H1 2012
Danske Andelskassers Bank 22.08.2012 12:48 --------------------------------------------------------------------------- Company announcement no. 12/2012 In H2, Danske Andelskassers Bank obtained core earnings before tax of DKK 123m, corresponding to an increase of 7% relative to the same period in 2011. The realisation of 261,000 shares in GrønlandsBANKEN A/S and an increased need for impairment, especially in relation to agricultural customers as well as small and medium-sized business customers, contributes to the bank posting a loss before tax of DKK -75m. Danske Andelskassers Bank revises down its outlook for core earnings from the previously announced DKK 270-300m to DKK 245-265m due to particularly a fall in loans. The Board of Directors of Danske Andelskassers Bank A/S has on this day adopted the financial statements for H1 2012. The financial statements show core earnings before tax (profit before tax less market value adjustments, impairment and sector solutions) of DKK 123m for H1 2012. This corresponds to an increase of 7% relative to H1 2011, where core earnings before tax were DKK 115m. It should be noted that core earnings in H1 2011 were favoured by a DKK 17m due to a reversal on the pension obligation in the form of defined-benefit plans. Excluding this one-time income the core earnings of H1 2012 is 25 % higher than the core earnings of H1 2011, which is considered very satisfactory. Despite solid core earnings, Danske Andelskassers Bank posted a loss before tax of DKK -75m in H1 2012 against a loss before tax of DKK -40m in H1 2011. The net loss for H1 2012 amounted to DKK -64m. The results are considered unsatisfactory. The results are, to a marked degree, affected by partly the realisation of 261,000 shares in GrønlandsBANKEN A/S (The Bank of Greenland) by 9 march 2012 which seen in isolation increased the excess solvency by 1.1 percentage point but induced a capital loss of DKK 38m and partly increasing impairment. Such impairment is primarily related to the agricultural sector where several customers are experiencing difficulties despite the positive trends characterising certain subsectors. Moreover, the duration and severity of the economic crisis mean that also small and medium-sized enterprises are still facing financial challenges. Naturally, Danske Andelskassers Bank adheres to the new specified impairment rules laid down by the Danish FSA, although these rules have not resulted in any significant increase in the level of impairment. Danske Andelskassers Bank's liquidity situation is very satisfactory with a deposit-loan gap and a surplus cover relative to the statutory requirement of 183%. This should be seen in light of the fact that, on 18 June 2012, the bank made an early repayment of a government guaranteed bond loan with a nominal value of DKK 1,000m. The bank's solvency situation is considered acceptable. Highlights from the interim report Highlights from the interim report are as follows (figures for H1 2011 are shown in brackets): -- Loss before tax of DKK -75 m (DKK -40m) -- Core earnings of DKK 123m (DKK 115m), corresponding to an increase of just above 7% -- Impairment and losses of DKK 166m (DKK 100m), corresponding to an impairment percentage of 1.6% (0.8%) -- Market value adjustments of DKK 20m (DKK -23m) -- Profit/loss from equity investments in associates of DKK -36m (DKK 1m) -- Staff costs and administrative expenses of DKK 254m (DKK 248m) -- Deposits of DKK 9,377m (DKK 9,115m) -- Loans of DKK 8,181m (DKK 9,443m) -- Solvency ratio of 14.6% (15.4%) against a solvency requirement of 12.2% (10.3%), corresponding to a surplus cover of 2.4 percentage points (5.1 percentage points) -- Core capital ratio of 14.5% (15.8%) -- Liquidity surplus cover relative to Section 152 of 183% (141%) -- Equity of DKK 1,553m (DKK 1,796m). Outlook Since the conversion of the company in may 2011 Danske Andelskassers Bank has initiated and completed a number of projects, thereby strengthening the bank in the long run. The expenses related to these projects has turned out to have a more significant impact on the core earnings than expected and the implementation phase has turned out to be longer than expected as well. At the same time Danske Andelskassers Bank is experiencing significant repayment of loans combined with a limited demand for loans and the outlook for core earnings in 2012 thus have to be revised down. The outlook for core earnings is thus revised from the previously announced DKK 270-300m to DKK 245-265m. As a result of the lower core earnings Danske Andelskassers Bank alters the expectations of a pre-tax profit in 2012 to a minor pre-tax loss. Comments on the interim report Managing Director of Danske Andelskassers Bank, Jan Pedersen, says about the interim report: 'We have a acceptable solvency surplus cover, a very satisfactory liquidity and solid as well as stable core earnings everything considered. Unfortunately, the interim results are characterised by increasing impairment. The duration and severity of the economic crisis mean that we still have customers who are facing financial challenges, and this was particularly the case among our agricultural customers in H1.' 'The sound core earnings have to be seen in light of the fact that we have realised a number of projects during the past year aimed at gearing the organisation for future development and growth. Several of these projects have entailed extraordinary expenses for and in some cases the expenses has been larger than expected. As the implementation of the projects is moving ahead, we are able to realise the values from the projects, while at the same time reducing project-related expenses, which will strengthen core earnings further. Furthermore, more synergies are constantly being realised as a result of the conversion of the company.' 'We have a sound foundation for the years ahead but we have to acknowledge that the bank related activities of our customers are still at a very low level, especially when it comes to loans. This trend appears to continue in H2 which contributes to lower core earnings than previously expected as well as an expected and unfortunate pre-tax profit. This is of course unsatisfactory.' Read more in the attached interim report Further information For further information, please contact the Board of Executives of Danske Andelskassers Bank via Martin Rask Pedersen, HR and Communications Director Tel.: +45 87 99 30 33 This company announcement contains certain forward-looking statements, including statements on Danske Andelskassers Bank's activities. Such statements are based on information, assumptions and assessments deemed reasonable by Danske Andelskassers Bank. The forward-looking statements comprise known and unknown risks, uncertainties and other significant matters which may result in Danske Andelskassers Bank's actual results, development or performance or the performance of the sector as a whole deviating significantly from the future results, development or performance expressed or implied in the forward-looking statements. If one or more of these risk or uncertainty factors are triggered, or if the underlying assumption turns out to be incorrect, Danske Andelskassers Bank's actual financial position or operating profit/loss may deviate significantly from the expressed assumptions, assessments, estimates or outlook. News Source: NASDAQ OMX 22.08.2012 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Danske Andelskassers Bank Denmark Phone: Fax: E-mail: Internet: ISIN: DK0060299063 WKN: End of Announcement DGAP News-Service ---------------------------------------------------------------------------
Aktuelle News
Aktuelle Berichte
Keine Berichte gefunden
Anstehende Events
Keine Events gefunden
Webcasts
Keine Webcasts gefunden