Vestjysk Bank A/S
Status on investigations regarding possible structural measures
Vestjysk Bank A/S 12.12.2013 08:47 Dissemination of a Adhoc News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- The Danish Financial Supervisory Authority NASDAQ OMX Copenhagen Oslo Børs 12 December 2013 Company announcement: Status on investigations regarding possible structural measures As announced in Vestjysk Bank's company announcement of 18 October 2013, the Bank has - in cooperation with its majority shareholder, the Danish State, and with the involvement of its own financial advisor - initiated investigations regarding possible structural measures that can contribute towards a long term solution to the Bank's capital base challenges. The capital base challenges have most recently been described in the Bank's Quarterly Report for Q1-Q3 2013 enclosed in the company announcement of 28 November 2013. As stated in the Quarterly Report, the risk profile of the Bank's loan portfolio causes uncertainty as to the level of impairments in 2013, and the pending introduction of CRD IV is expected to have a negative impact on the solvency ratio. As part of the abovementioned investigations, a number of potential buyers have been contacted regarding a possible sale of the Danish State's shares or selected parts of the Bank's activities. On basis of the responses received, the Bank has established that there currently is no basis for completion of such a sale. The efforts to investigate the possibilities of a sale will continue. The responses received indicate that under the present circumstances a potential sale will have to be effected at a value significantly lower than the book value of the Bank's assets. Concurrently with the abovementioned efforts, the Bank will continue its initiatives to improve solvency, and, in addition to the measures taken to reduce its balance, the Bank is considering further conversion of government hybrid core capital. As part of the continuous supervision of the Bank, the Danish Financial Supervisory Authority has initiated an ordinary inspection which is expected to also include the Bank's credit risks. The results of the Danish Financial Supervisory Authority's inspection are expected to be known prior to the submission of the Bank's Annual Report for 2013. Vestjysk Bank A/S Steen Hemmingsen Vagn Thorsager Chairman CEO Queries regarding the above can be made to Chairman of the Supervisory Board, Steen Hemmingsen at tel. +45 51 46 46 33. Vestjysk Bank A/S Torvet 4-5 DK-7620 Lemvig Denmark Phone +45 96 63 20 00 CVR no. 34631328 www.vestjyskbank.dk News Source: NASDAQ OMX 12.12.2013 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: Vestjysk Bank A/S Denmark Phone: Fax: E-mail: Internet: ISIN: DK0010304500 WKN: End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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