Skælskør Bank Aktieselskab
Interim financial report for the period 1 January – 31 March 2008

Skælskør Bank Aktieselskab / News

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Company announcement                                            
No. 16 / 2008                                                                   
23. April 2008                                                                  


Executive Board                                                                 
Carsten Roth                                                                    
Tel.: +45 59 57 60 00                                                           












Interim financial reportfor the period 1 January - 31 March 2008                



























This document is an unofficial translation of the Danish original. In the event 
of any inconsistencies, the Danish version shall apply.                         







Q1 in headlines                                                                 


Profit for the period 1 January - 31 March 2008Profit before tax amounts to DKK 
10.7m, which is DKK 3.4m above budget, but 47% down on 2007. Net interest and   
fee income is up by DKK 0.9m, corresponding to a 3% increaseStaff costs and     
administrative expenses amount to DKK 23.9m, which is a 4% increase on the same 
period last yearImpairment losses on loans, advances and receivables, etc total 
DKK 2.8mPrice adjustments of securities amount to DKK 5.0m against DKK 11.7m for
the same period last year.The Bank's aggregate business volume has gone upLoans 
and advances by 17%	Deposits by 2% 		Guarantees by 4%Balance sheet total by     
12%Unchanged earnings expectations of DKK 43-48m                                










































Key figures - Group                                                             

Income statement                                                                
--------------------------------------------------------------------------------
| DKK'm                                         |    1    |    1     |   FY    |
|                                               | January | January  |  2007   |
|                                               |  - 31   |   - 31   |         |
|                                               |  March  |  March   |         |
|                                               |  2008   |   2007   |         |
--------------------------------------------------------------------------------
| Interest income - net                         |    22.7 |     21.4 |    87.0 |
--------------------------------------------------------------------------------
| Net fee and commission income, etc            |    10.1 |     10.5 |    43.2 |
--------------------------------------------------------------------------------
| Net interest and fee income                   |    32.8 |     31.9 |   130.2 |
--------------------------------------------------------------------------------
| Staff costs and administrative expenses       |   -23.9 |    -22.9 |   -93.2 |
--------------------------------------------------------------------------------
| Other net operating expenses                  |    -0.4 |     -0.7 |     0.1 |
--------------------------------------------------------------------------------
| Impairment losses on loans, advances and      |    -2.8 |      0.2 |   -13.0 |
| receivables, etc                              |         |          |         |
--------------------------------------------------------------------------------
| Core earnings                                 |     5.7 |      8.5 |    24.2 |
--------------------------------------------------------------------------------
| Translation/market value adjustments          |     5.0 |     11.7 |    25.7 |
--------------------------------------------------------------------------------
| Profit/loss from investments in associates    |     0.0 |     -2.3 |     0.0 |
--------------------------------------------------------------------------------
| Profit before tax                             |    10.7 |     20.2 |    47.6 |
--------------------------------------------------------------------------------
| Income tax                                    |    -2.1 |     -4.8 |   -10.3 |
--------------------------------------------------------------------------------
| Profit for the period                         |     8.6 |     15.4 |    37.3 |
--------------------------------------------------------------------------------


Balance sheet                                                                   
--------------------------------------------------------------------------------
| Loans, advances and other receivables at      |   1.966 |    1.677 |   1.865 |
| amortised cost                                |   1.471 |    1.446 |   1.474 |
| Deposits and other payables                   |   1.631 |    1.572 |   1.638 |
| Guarantees, etc                               |         |          |         |
--------------------------------------------------------------------------------
| Bonds and shares                              |     390 |      337 |     385 |
--------------------------------------------------------------------------------
| Equity including profit                       |     291 |      286 |     300 |
--------------------------------------------------------------------------------
| Total assets                                  |   2.598 |    2.313 |   2.549 |
--------------------------------------------------------------------------------


Ratios                                                                          
--------------------------------------------------------------------------------
| Capital adequacy ratio                           | 12,7 |     11.0 |    12.6 |
--------------------------------------------------------------------------------
| Share price                                      |  182 |      294 |     246 |
--------------------------------------------------------------------------------





Comments on the interim financial report for Q1 2008                            



Development in activities and finances                                          
Profit for Q1 amounts to DKK 10.7m before tax, which is a decrease of 47% on Q1 
2007. Net profit amounts to DKK 8.6m against DKK 15.4m last year. Return on     
equity before tax is 14.4% on an annualised basis.                              

Performance is affected by negative price adjustments on the Bank's portfolio of
shares.                                                                         

Net interest and fee income                                                     
Net interest and fee income amounts to DKK 32.8m against DKK 31.9m for the same 
period last year.                                                               
Net interest income totals DKK 22.7m compared to DKK 21.4m last year.           
Net fee and commission income, etc has gone down from 10.5m to DKK 10.1m.       
The reduction is ia attributable to a decline in fee and commission income from 
securities trading and custody accounts totalling DKK 1.5m.                     

Translation/market value adjustments                                            
Translation/market value adjustments amount to DKK 5.0m against DKK 11.7m in    
2007.                                                                           
The large deviation is ia attributable to a capital loss on the Bank's portfolio
of shares totalling DKK 4.7m, a capital gain on bonds amounting to DKK 0.5m and 
a capital loss on other items of DKK 0.6m.                                      
As announced in Company Announcement no 9/2008, Skælskør Bank has decided to    
support the offer from Totalkredit/Nykredit as to changing the cooperation      
agreement. Recognition of the discounted value of the after-sales price         
adjustment of DKK 9.8 has therefore been included in Q1 2008 under              
translation/market value adjustments.                                           
                                                                                
Staff costs and administrative expenses                                         
Staff costs and administrative expenses amount to DKK 23.9m against DKK 22.9m in
2007, which is an increase of 4%. Staff costs and administrative expenses are in
line with the budget.                                                           

Impairment losses on loans, advances and receivables, etc                       
The Bank's impairment losses on loans, advances and receivables, etc total DKK  
2.8m against an income of DKK 0.2m in 2007.                                     
The aggregate impairment losses and provisions for loans, advances and          
guarantees amount to DKK 35.1m, corresponding to 1% of loans, advances and      
guarantees.                                                                     

Balance sheet                                                                   
The Group's aggregate balance sheet total went up by 12% to DKK 2,598m.         
Loans and advances increased by 17% to DKK 1,966m, deposits went up by 2% to DKK
1,471m and guarantees, etc increased by 4% to DKK 1,631m.                       
Growth in loans and advances has, however, declined in comparison with Q1 2007, 
as the increase has dropped from 29% to 17%.                                    

Capital position                                                                
The Group's equity amounts to DKK 291m at 31 March 2008 after distribution of   
dividends of DKK 7.4m and retained earnings for Q1 of 8.6m.                     
The Group's capital adequacy ratio has gone up from 11.0% to 12,7% at 31 March  
2008.                                                                           

Cash flows                                                                      
The Group's cash resources are 33.9% above the requirement of the Danish        
Financial Business Act. The Group also has confirmed credit guarantees that can 
be drawn on as required.                                                        

Accounting policies                                                             
Accounting policies have not been changed in relation to 2007.                  

Other circumstances - the Danish Competition Council                            
In early 2007, the Competition Council ruled that Skælskør Bank together with 6 
other local banks had violated the Danish Competition Act in certain areas.     
Skælskør Bank did not agree with the ruling and accordingly lodged an appeal    
with the Competition Appeals Tribunal.                                          
The Competition Appeals Tribunal settled the case in October 2007 when the      
Danish Competition Authority reported an offence to SØK, the Division for       
Serious Financial Crime. The case has now been settled, and Skælskør Bank has   
together with 6 other local banks been fined DKK 570k.                          
This amount has been provided for in the Bank's interim financial report for Q1 
2008.                                                                           

Earnings expectations                                                           
Profit for Q1 was better than expected despite negative price adjustments of the
Bank's portfolio of shares.                                                     
Unchanged earnings expectations of DKK 43-48m for 2008 are based on a minor     
increase in business volume, tight cost management and impairment losses on     
loans and advances in line with the budget.                                     
                                                                                

Statement by Management on the interim financial report                         


Bestyrelse og direktion har dags dato godkendt kvartalsregnskabet for perioden  
1. januar - 31. marts 2008 for Skælskør Bank A/S.                               

We consider the applied accounting policies appropriate and the estimates made  
reasonable for the interim financial report to provide a true and fair view of  
the Group's financial position at 31 March 2008 as well as of the Bank's        
financial performance for the period 1 January to 31 March 2008.                

The interim financial report has not been audited or reviewed by the Bank's     
auditora.                                                                       
Please note that this interim financial report does not follow the rules of the 
Stock Exchange on publication of interim financial reports.                     


Skælskør, 23 April 2008                                                         



Carsten Roth 			Peter Melchior                                                  
Chief Executive Officer		Chairman of the Supervisory Board                      




















Income statement 1 January - 31 March 2008                                      



--------------------------------------------------------------------------------
| Note | Group                                |    1     |    1     |    FY    |
|      | DKK '000                             | January  | January  |   2007   |
|      |                                      |   - 31   |   - 31   |          |
|      |                                      |  March   |  March   |          |
|      |                                      |   2008   |   2007   |          |
--------------------------------------------------------------------------------
|  1   | Interest income                      |   43,061 |   33,185 |  150,031 |
--------------------------------------------------------------------------------
|      | Interest expenses                    |  -20,391 |  -11,807 |  -63,024 |
--------------------------------------------------------------------------------
|      | Net interest income                  |   22,670 |   21,378 |   87,007 |
--------------------------------------------------------------------------------
|      | Dividends on shares, etc             |      131 |      116 |    1,510 |
--------------------------------------------------------------------------------
|  3   | Fees and commission income           |   10,801 |   11,436 |   46,314 |
--------------------------------------------------------------------------------
|      | Ceded fees and commission expenses   |     -829 |   -1,076 |   -4,634 |
--------------------------------------------------------------------------------
|      | Net interest and fee income          |   32,773 |   31,854 |  130,197 |
--------------------------------------------------------------------------------
|  4   | Translation/market value adjustments |    5,013 |   11,692 |   25,706 |
--------------------------------------------------------------------------------
|      | Other operating income               |      883 |      147 |    3,127 |
--------------------------------------------------------------------------------
|  5   | Staff costs and administrative       |  -23,938 |  -22,838 |  -93,167 |
|      | expenses                             |          |          |          |
--------------------------------------------------------------------------------
|      | Depreciation, amortisation and       |   -1,320 |     -827 |   -3,016 |
|      | impairment losses on intangible      |          |          |          |
|      | assets and property, plant and       |          |          |          |
|      | equipment                            |          |          |          |
--------------------------------------------------------------------------------
|      | Impairment losses on loans, advances |   -2,758 |      173 |  -12,965 |
|      | and receivables, etc                 |          |          |          |
--------------------------------------------------------------------------------
|      | Profit before investments in         |        0 |        0 |   -2,256 |
|      | subsidiaries and associates after    |          |          |          |
|      | tax                                  |          |          |          |
--------------------------------------------------------------------------------
|      | Profit before tax                    |   10,653 |   20,201 |   47,626 |
--------------------------------------------------------------------------------
|      | Tax on profit for the period         |   -2,092 |   -4,795 |  -10,333 |
--------------------------------------------------------------------------------
|      | Profit for the period                |    8,561 |   15,406 |   37,293 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------















Balance sheet at 31 March 2008                                                  



--------------------------------------------------------------------------------
| Group                                     | 31 March | 31 March  |  31 Dec   |
| DKK '000                                  |   2008   |   2007    |   2007    |
--------------------------------------------------------------------------------
| Cash and demand deposits with central     |   69,662 |   106,001 |   125,535 |
| banks                                     |          |           |           |
--------------------------------------------------------------------------------
| Receivables from credit institutions and  |   45,958 |   107,863 |    64,227 |
| central banks                             |          |           |           |
--------------------------------------------------------------------------------
| Loans, advances and other receivables at  | 1,965,80 | 1,676,769 | 1,865,243 |
| amortised cost                            |        2 |           |           |
--------------------------------------------------------------------------------
| Bonds at fair value                       |  242,214 |   214,495 |   244,831 |
--------------------------------------------------------------------------------
| Shares, etc                               |  147,601 |   122,019 |   140,047 |
--------------------------------------------------------------------------------
| Investments in associates                 |    5,146 |         0 |     5,146 |
--------------------------------------------------------------------------------
| Total land and buildings                  |   63,477 |    57,546 |    62,922 |
--------------------------------------------------------------------------------
|    Investment property                    |   24,612 |    23,509 |    25,121 |
--------------------------------------------------------------------------------
|    Owner-occupied property                |   38,865 |    34,037 |    37,801 |
--------------------------------------------------------------------------------
| Other property, plant and equipment       |   11,869 |     5,639 |    12,530 |
--------------------------------------------------------------------------------
| Current tax assets                        |    5,188 |         0 |     1,946 |
--------------------------------------------------------------------------------
| Deferred tax assets                       |    3,362 |     1,588 |     3,261 |
--------------------------------------------------------------------------------
| Other assets                              |   36,537 |    18,502 |    23,188 |
--------------------------------------------------------------------------------
| Prepayments                               |    1,307 |        67 |       378 |
--------------------------------------------------------------------------------
| Total assets                              | 2,598,12 | 2,313,489 | 2,549,254 |
|                                           |        3 |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------



















Balance sheet at 31 March 2008                                                  



--------------------------------------------------------------------------------
| Group                              |      | 31 March | 31 March  |  31 Dec   |
| DKK '000                           |      |   2008   |   2007    |   2007    |
--------------------------------------------------------------------------------
| Payables to credit institutions    |      |  577,705 |   442,073 |   536,745 |
| and central banks                  |      |          |           |           |
--------------------------------------------------------------------------------
| Deposits and other payables        |      | 1,470,58 | 1,446,079 | 1,474,450 |
|                                    |      |        4 |           |           |
--------------------------------------------------------------------------------
| Current tax payable                |      |        0 |     2,537 |         0 |
--------------------------------------------------------------------------------
| Other liabilities                  |      |   53,321 |    32,941 |    34,495 |
--------------------------------------------------------------------------------
| Deferred income                    |      |    3,033 |     1,411 |     1,215 |
--------------------------------------------------------------------------------
| Total payables                     |      | 2,104,64 | 1,925,041 | 2,046,905 |
|                                    |      |        3 |           |           |
--------------------------------------------------------------------------------
| Provisions                         |      |          |           |           |
--------------------------------------------------------------------------------
| Provisions for pensions and        |      |    1,427 |     1,427 |     1,427 |
| similar liabilities                |      |          |           |           |
--------------------------------------------------------------------------------
| Provisions for deferred tax        |      |        0 |         2 |         0 |
--------------------------------------------------------------------------------
| Provisions for loss on guarantees  |      |      382 |       775 |       161 |
--------------------------------------------------------------------------------
| Other provisions                   |      |    1,205 |       713 |     1,205 |
--------------------------------------------------------------------------------
| Total provisions                   |      |    3,014 |     2,917 |     2,793 |
--------------------------------------------------------------------------------
| Subordinated debt                  |      |          |           |           |
--------------------------------------------------------------------------------
| Subordinated debt                  |      |  199,568 |    99,508 |   199,566 |
--------------------------------------------------------------------------------
| Total subordinated debt            |      |  199,568 |    99,508 |   199,566 |
--------------------------------------------------------------------------------
| Equity                             |      |          |           |           |
--------------------------------------------------------------------------------
| Share capital                      |      |   37,000 |    37,000 |    37,000 |
--------------------------------------------------------------------------------
| Revaluation reserve                |      |    3,826 |     1,599 |     3,826 |
--------------------------------------------------------------------------------
| Retained earnings                  |      |  250,072 |   247,424 |   259,164 |
--------------------------------------------------------------------------------
| Total equity                       |      |  290,898 |   286,023 |   299,990 |
--------------------------------------------------------------------------------
| Total equity and liabilities       |      | 2,598,12 | 2,313,489 | 2,549,254 |
|                                    |      |        3 |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------








Notes - Group                                                                   


--------------------------------------------------------------------------------
| DKK '000                                 |  1 Jan -  |  1 Jan -  |  1 Jan -  |
|                                          | 31 March  | 31 March  |  31 Dec   |
|                                          |   2008    |   2007    |   2007    |
--------------------------------------------------------------------------------
| 1. Interest income                       |           |           |           |
--------------------------------------------------------------------------------
| Receivables from credit institutions and |       509 |     1.081 |     5.298 |
| central banks                            |           |           |           |
--------------------------------------------------------------------------------
| Loans, advances and other receivables    |    39,356 |    29,679 |   134,243 |
--------------------------------------------------------------------------------
| Bonds                                    |     2,658 |     2,203 |     9,010 |
--------------------------------------------------------------------------------
| Total derivative financial instruments   |       461 |         0 |       241 |
--------------------------------------------------------------------------------
| Hereof                                   |           |           |           |
--------------------------------------------------------------------------------
|     Interest rate contracts              |        98 |         0 |       144 |
--------------------------------------------------------------------------------
|     Currency contracts                   |       363 |         0 |        97 |
--------------------------------------------------------------------------------
| Other interest income                    |        77 |       222 |     1,239 |
--------------------------------------------------------------------------------
| Total interest income                    |    43,061 |    33,185 |   150,031 |
--------------------------------------------------------------------------------
| The Group has no income from genuine     |           |           |           |
| purchase and sell-back transactions.     |           |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2. Interest expenses                     |           |           |           |
--------------------------------------------------------------------------------
| Credit institutions and central banks    |     5,507 |     2,421 |    14,767 |
--------------------------------------------------------------------------------
| Deposits and other payables              |    11,842 |     8,108 |    40,185 |
--------------------------------------------------------------------------------
| Subordinated debt                        |     3,008 |     1,261 |     7,632 |
--------------------------------------------------------------------------------
| Other interest expenses                  |        34 |        17 |       440 |
--------------------------------------------------------------------------------
| Total interest expenses                  |    20,391 |    11,807 |    63,024 |
--------------------------------------------------------------------------------
| The Group has no expenses for genuine    |           |           |           |
| purchase and sell-back transactions.     |           |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. Fees and commission income            |           |           |           |
--------------------------------------------------------------------------------
| Securities trading and custody accounts  |     2,893 |     4,412 |    17,600 |
--------------------------------------------------------------------------------
| Payment management                       |       707 |       619 |     2,495 |
--------------------------------------------------------------------------------
| Loan application fees                    |       733 |       766 |     3,411 |
--------------------------------------------------------------------------------
| Guarantee commission                     |     2,272 |     2,218 |    11,151 |
--------------------------------------------------------------------------------
| Other fees and commission income         |     4,196 |     3,421 |    11,657 |
--------------------------------------------------------------------------------
| Total fees and commission income         |    10,801 |    11,436 |    46,314 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------





Notes - Group                                                                   


--------------------------------------------------------------------------------
| DKK '000                                 |  1 Jan -  |  1 Jan -  |  1 Jan -  |
|                                          | 31 March  | 31 March  |  31 Dec   |
|                                          |   2008    |   2007    |   2007    |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4. Translation/market value adjustments  |           |           |           |
--------------------------------------------------------------------------------
| Bonds                                    |       551 |       -90 |    -2,776 |
--------------------------------------------------------------------------------
| Shares                                   |    -4,702 |    11,362 |    26,824 |
--------------------------------------------------------------------------------
| Total currency, interest, etc            |       274 |       304 |     1,537 |
--------------------------------------------------------------------------------
| Derivative financial instruments         |      -900 |       116 |       316 |
--------------------------------------------------------------------------------
| Other assets                             |     9,790 |         0 |      -195 |
--------------------------------------------------------------------------------
| Total translation/market value           |     5,013 |    11,692 |    25,706 |
| adjustments                              |           |           |           |
--------------------------------------------------------------------------------
| Skælskør Bank has no collective pool     |           |           |           |
| schemes.                                 |           |           |           |
--------------------------------------------------------------------------------
| 5. Staff costs and administrative        |           |           |           |
| expenses                                 |           |           |           |
--------------------------------------------------------------------------------
| Salaries and remuneration to the         |           |           |           |
| Supervisory and Executive Boards as well |           |           |           |
| as the Committee of Shareholders         |           |           |           |
--------------------------------------------------------------------------------
| - Executive Board                        |       420 |       349 |     1,602 |
--------------------------------------------------------------------------------
| - Pension, etc to the Executive Board    |       129 |        90 |       428 |
--------------------------------------------------------------------------------
| - Supervisory Board                      |       135 |       147 |       595 |
--------------------------------------------------------------------------------
| - Committee of Representatives           |         0 |         0 |       125 |
--------------------------------------------------------------------------------
| Staff costs                              |           |           |           |
--------------------------------------------------------------------------------
| - Wages and salaries                     |    10,869 |     9,460 |    43,246 |
--------------------------------------------------------------------------------
| - Pensions                               |     1,329 |     1,203 |     5,187 |
--------------------------------------------------------------------------------
| - Social security costs                  |       266 |     1,011 |     4,513 |
--------------------------------------------------------------------------------
| Other administrative expenses            |     9,790 |    10,578 |    37,471 |
--------------------------------------------------------------------------------
| Total staff costs and administrative     |    23,938 |    22,838 |    93,167 |
| expenses                                 |           |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 6. Contingent assets and liabilities     |           |           |           |
--------------------------------------------------------------------------------
| Financial guarantees                     | 1,135,422 | 1,109,238 | 1,165,294 |
--------------------------------------------------------------------------------
| Other guarantees                         |   494,217 |   462,727 |   472,862 |
--------------------------------------------------------------------------------
| Total guarantees, etc                    | 1,629,639 | 1,571,965 | 1,638,156 |
--------------------------------------------------------------------------------
| Other contingent liabilities             |           |           |           |
--------------------------------------------------------------------------------
| Irrevocable credit guarantees            |         0 |         0 |    11,063 |
--------------------------------------------------------------------------------
| Other liabilities                        |     1,456 |    46,338 |     1,505 |
--------------------------------------------------------------------------------
| Total other liabilities                  |     1,456 |    46,338 |           |
|                                          |           |           |    12,568 |
--------------------------------------------------------------------------------

25.04.2008  Financial News transmitted by DGAP
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