Ringkjøbing Landbobank - interim report 2015. Large increase in customer numbers and upward adjustment of expectations

Udgivet den 05-08-2015  |  kl. 08:31  |  

 

(Million DKK) 1st half 2015 1st half 2014 2014 2013 2012 2011
Total core income 482 459 907 844 823 767
Total costs and depreciations -149 -142 -298 -273 -265 -248
Core earnings before impairments 333 317 609 571 558 519
Impairment charges for loans etc. -29 -40 -87 -120 -157 -129
Core earnings 304 277 522 451 401 390
Result for portfolio +15 +44 +65 +23 +49 +1
Expenses for bank packages 0 0 0 -2 -2 -11
Profit before tax 319 321 587 472 448 380

 

The half-year - highlights:

  • Upward adjustment of expectations for core earnings to the range DKK 500 - 575 million
  • The profit before tax was DKK 319 million, equivalent to a return of 21% p.a. on equity at the beginning of the period
  • Increase of 5% in the bank’s loans and 18% increase in deposits
  • Moody’s Investors Service upgraded the bank’s long-term deposit rating to A1
  • Oversubscription of tier 2 capital issue strengthens the capital base and will be used to achieve additional growth
  • Record increase in customer numbers and establishment of a new Private Banking branch in the Triangle Region, Denmark
  • Appointment of assistant general manager Jørn Nielsen to general manager as of 1 September 2015

Please do not hesitate to contact the bank’s management if you have any questions.

Yours sincerely,
Ringkjøbing Landbobank
 
John Fisker

 

Management report

 

Core income

Net interest income was DKK 315 million in the first half of 2015 against DKK 317 million in 2014, a marginal decrease. The development in this item should be compared to a 5% increase in lending. The net interest income was thus influenced by a falling interest margin, which reflects the competition in the sector. The net interest income was also influenced by the low interest rate, which had an impact in the second quarter in particular.

Fees, commissions and foreign exchange income amounted to net DKK 144 million in the first half of 2015 against net DKK 122 million in 2014, an increase of 18%. The increase is attributable to the re-cord conversion activity within mortgage loans in the half-year, and earnings were also strengthened by the increasing volumes within asset management and greater trading activity.

The total core income in the first half-year increased from DKK 459 million in 2014 to DKK 482 million in 2015. The increase should be viewed in the context of the fact that the total core income in the first half of 2014 was affected positively by an extraordinary once-only income of the order of DKK 10 million in connection with the sale of the bank’s shares in Nets.

  

Costs and depreciations

Total costs including depreciations on tangible assets were DKK 149 million in the first half of 2015 against DKK 142 million last year, an increase of 5% and in line with the budget for the first two quarters of the year.

The rate of costs was computed at 30.8, which continues to be the lowest in Denmark and unchanged relative to the first half of 2014. The low rate of costs means great stability in the bank’s results.

  

Impairment charges for loans

Impairment charges for loans were DKK 29 million for the half-year against DKK 40 million in 2014, which is equivalent to 0.3% p.a. of the total average loans, impairment charges, guarantees and provisions, against 0.5% p.a. in the first half of 2014.

The bank’s total account for impairment charges and provisions amounted to DKK 967 million at the end of the half-year, equivalent to 5.2% of total loans and guarantees. Actual losses and write-offs on loans etc. continue to be very low, and they were exceeded during the half-year by the items “Interest on the impaired part of loans” and “Receivables previously written off”, such that the total account for impairment charges and provisions increased by net DKK 35 million during the first half of the year.

The portfolio of loans with suspended calculation of interest amounted to DKK 57 million, equivalent to 0.3% of the bank’s total loans and guarantees at the end of the half-year.

The total impairment charges for 2015 are expected to show a falling trend relative to 2014.

  

Core earnings

(Million DKK) 1st half 2015 1st half 2014 2014 2013 2012 2011
Total core income 482 459 907 844 823 767
Total costs and depreciations -149 -142 -298 -273 -265 -248
Core earnings before impairments 333 317 609 571 558 519
Impairment charges for loans etc. -29 -40 -87 -120 -157 -129
Core earnings 304 277 522 451 401 390

Core earnings were DKK 304 million against last year’s DKK 277 million. The realised earnings are above budget for the first two quarters of the year.

  

Result for portfolio and market risk

The result for  portfolio for the first half of 2015 was DKK 15 million including funding costs for the portfolio. Seen in isolation, the portfolio income for the second quarter of 2015 was DKK -8 million due to the interest rate instability in the quarter.

The bank’s holding of shares etc. at the end of the half-year amounted to DKK 304 million, DKK 57 million of which was in listed shares etc. while DKK 247 million was in sector shares etc. The bond portfolio amounted to DKK 5,074 million, and the majority of the portfolio consists of AAA-rated Danish mortgage credit bonds.

The total interest rate risk, computed as the impact on the profit of a one percentage point change in the interest level, was 1.5% of the bank’s tier 1 capital (after deduction) at the end of the half-year.

The bank’s total market risk within exposures to interest rate risk, listed shares and foreign currency remains at a moderate level. The bank’s risk of losses calculated on the basis of a Value-at-risk model (computed with a 10-day horizon and 99% probability) in the first half of 2015 was as follows:

  Risk in DKK million Risk relative to equity
end of 1st half 2015 in %
Highest risk of loss: 25.8 0.82%
Lowest risk of loss: 5.2 0.16%
Average risk of loss: 16.8 0.53%

The bank’s policy remains to keep the market risk at a moderate level.

  

Profit after tax

The profit after tax was DKK 249 million for the first half of 2015 against DKK 245 million last year.

The profit after tax is equivalent to a return on equity at the beginning of the period of 17% p.a. after payment of dividend.

  

Balance sheet

The bank’s balance sheet at the end of the half-year stood at DKK 22,118 million against last year’s DKK 19,675 million.

Deposits increased by 18% from DKK 14,054 million at the end of June 2014 to DKK 16,628 million at the end of June 2015. The bank’s deposits on 30 June 2015 were influenced temporarily by major deposits from the bank’s core customers.

The bank’s loans increased by 5% from DKK 14,283 million at the end of June 2014 to DKK 15,032 million at the end of June 2015. The loans figure for 2015 includes reverse transactions to a total of DKK 288 million, and the increase in the bank’s loans excluding these transactions was 3% relative to the end of June 2014.

The growth in the bank’s loans is broadly based on sectors with underlying growth in new customers from both the branch network and the bank’s niche concepts.

The bank’s portfolio of guarantees at the end of the half-year was DKK 2,667 million against DKK 1,438 million at the end of June 2014 and DKK 2,218 million at the end of 2014. The portfolio of guarantees is thus still extraordinarily high as a result of a high level of activity within conversions.

  

Liquidity

The bank’s liquidity is good, and the excess liquidity relative to the statutory requirement for liquidity is 204%. The bank’s short-term funding with term to maturity of less than 12 months amounted to DKK 0.8 billion, balanced by DKK 6.2 billion in short-term money market placings, primarily in Danish banks and liquid securities. The bank is thus not dependent on the short-term money market.

The bank’s deposits were DKK 1.9 million greater than loans excluding reverse transactions at the end of June, and the bank’s loans portfolio is thus more than fully financed by deposits and the bank’s equity. In addition, part of the loans portfolio for wind turbines in Germany is refinanced back-to-back with KfW Bankengruppe, and DKK 1,031 million concerned can thus be disregarded in terms of liquidity.

The bank requires no financing for the coming year to meet the minimum requirement that it must always be able to manage for up to 12 months without access to the financial markets.

New liquidity regulations will come into force with effect from 1 October 2015, viz. the so-called LCR (Liquidity Coverage Ratio) key figure. The key figure will show the ability of banks to honour their payment obligations for a 30-day period without access to market funds, and the key figure will subsequently replace the current Section 152 liquidity key figure. The key figure is computed as the ratio of the bank’s cash and cash equivalents / liquid assets to its payment obligations for the next 30 days as computed in accordance with specific rules.

Non-SIFI banks must have a cover of minimum 60% on 1 October 2015, gradually increasing by 10% on 1 January 2016 and 1 January 2017 and by 20% on 1 January 2018 such that the key figure must be minimum 100% on 1 January 2018. SIFI banks must have a cover of 100% as early as 1 October 2015.

Ringkjøbing Landbobank wishes to follow the rules applying to SIFI banks and it is thus the bank’s target that the LCR key figure should be 100% on 1 October 2015.

On 30 June 2015 the bank’s LCR key figure was 229% and the bank thus already met the target at the end of June.

 

Share buy-back programme

The annual general meeting in February 2015 authorised the bank to buy shares for up to DKK 145 million for cancellation at a future general meeting.

Shares were reserved as follows as of 4 August 2015:

  Number of shares    Average
buying price
- in DKK 1,000
Transaction value
- in DKK 1,000
Reserved as of 11 March 2015 30,000 1,262.09 37,863
Reserved as of 3 June 2015 20,000 1,507.92 30,158
Total as of 4 August 2015 50,000   68,021

  

The total portfolio of own shares was 55,172 at the end of June 2015.

  

Capital

The equity at the beginning of 2015 was DKK 3,099 million. To this must be added the profit for the half-year, while the dividend paid and the value of the own shares bought must be subtracted, after which the equity at the end of the half-year was DKK 3,154 million.

The bank’s total capital ratio was computed at 19.3% at the end of the first half of 2015, and the tier 1 capital ratio was computed at 17.4%.

  

 
Capital ratios
1st half 2015 1st half 2014 2014 2013 2012 2011
Common Equity Tier 1 capital ratio (%) 17.4 18.1 17.5 18.7 19.6 18.3
Tier 1 capital ratio (%) 17.4 18.2 17.5 19.2 20.9 19.8
Total capital ratio (%) 19.3 18.2 17.5 20.0 22.4 21.4
Individual solvency requirement (%) 8.9 8.8 8.9 8.9 8.0 8.0

 

In the first half of 2015 the bank redeemed previously issued additional tier 1 capital and tier 2 capital because these items could no longer be fully included in the bank’s capital base due to the phasing-out rules of the CRD IV provisions. The additional tier 1 capital of nom. DKK 200 million issued in 2005 was consequently redeemed in March 2015, and early redemption of the tier 2 capital of nom. EUR 27 million issued in 2008 was made in June 2015.

In May 2015 the bank issued tier 2 capital of EUR 50 million in replacement of the redeemed capital. The issue was oversubscribed and has a maturity period of 10 years with the first call option after 5 years, and the interest on the issue was fixed at the Euribor 3M plus 180 basis points and with fixing of interest every three months. The issue took place under the bank’s EMTN programme and it is listed at the London Stock Exchange. The issue will be used to additional growth in the bank.

In addition to the above, the statement of capital is also influenced by the fact that the DKK 145 million share buy-back programme is deducted in full from the capital, while DKK 68 million were utilised at the end of June 2015.

The bank calculates the individual solvency requirement on the basis of the so-called 8+ model. The calculation method is based on 8% plus any supplements calculated inter alia for customers with financial problems. The 8+ model thus takes no account of the bank’s earnings and cost base or its robust business model. Despite this, the bank’s individual solvency requirement at the end of the half-year was calculated at 8.9% - unchanged relative to the end of 2014.

 

Ratings

On 17 June 2015, the rating agency Moody’s Investors Service completed their review of rated Danish banks and consequently also of Ringkjøbing Landbobank’s ratings.

The bank’s ratings were upgraded and the bank is satisfied with the result of the review.

 

Moody’s ratings etc. Former ratings New ratings
Baseline Credit Assessment (BCA) Baa1 A3
Long-term Deposit Rating Baa1 A1
Short-term Deposit Rating P-2 P-1
Counterparty Risk Assessment N/A Aaa3 / P-1
Outlook Stable Stable

  

Record increase in customer numbers

The bank carried out a large number of outreach initiatives towards both existing and new customers in 2014, including opening a Private Banking branch in Aarhus on 1 April 2014 and upgrading the bank’s Private Banking branch in Holte. Other outreach initiatives were also carried out within both the other niche products and the branch network in central and western Jutland.

The outreach activities are being maintained in 2015 and they contributed to a net increase in customer numbers in the period 1 January to 30 June 2015, which is the greatest net increase ever recorded for a first half-year measured on the contribution margin. The increase in customer numbers is broadly based and relates to new customers in both the branch network and niche concepts, and the loss of customers was at a low level.

 

Establishment of a new Private Banking branch in the Triangle Region, Denmark

In light of the success experienced by the bank’s Private Banking branches in Holte, Aarhus, Herning and Ringkøbing, the bank has decided to initiate the process of establishing a new Private Banking branch in the Triangle Region, Denmark, opening in 2016.

The branch will focus on financial advice to and sparring with affluent private and business clients in the Triangle Region, Denmark. The branch will also be concerned with major deposit and loan transactions with both private and business clients. Finally, the bank will offer individual investment advice and trading in securities.

 

Takeover of the savings bank Ulfborg Sparekasse

The bank took over Ulfborg Sparekasse’s activities at the end of June 2015. Taking over the activities has only a very limited effect on the bank’s balance sheet and income statement.

Following Ringkjøbing Landbobank’s takeover of the activities of Ulfborg Sparekasse, the latter bank’s capital will be transferred to a charitable foundation. The foundation’s object will be to support activities for the benefit of charitable or non-profit purposes in areas served by Ulfborg Sparekasse to date. The foundation’s equity is expected to be DKK 6 - 7 million.

  

Change in management

The board of directors has appointed assistant general manager Jørn Nielsen general manager and member of the management as of 1 September 2015. The bank’s total management will in future be CEO John Fisker and general manager Jørn Nielsen.

Jørn Nielsen, 42, has been employed by the bank since 1991. He was appointed head of the credit department in 1998, credit manager in 2009 and assistant general manager in 2012.

  

Accounting policies and key figures

The accounting policies are unchanged relative to those in the submitted and audited 2014 annual report.

  

Upward adjustment of expectations for earnings in 2015

The bank’s core earnings for the first half of 2015 were DKK 304 million, which is above budget for the first two quarters of the year. On the basis of this development, expectations for core earnings for all of 2015 are adjusted upward from the DKK 450 - 525 million range announced at the beginning of the year to DKK 500 - 575 million.

 

Disclaimer
»This document is a translation of a Danish original document. The original text shall be the governing text for all purpose and in case of any discrepancy the Danish wording shall be applicable «

 

Main and key figures

  1st half
2015
1st half
2014
Full year
2014
Main figures for the bank (million DKK)      
Total core income 482 459 907
Total costs and depreciations -149 -142 -298
Core earnings before impairments 333 317 609
Impairment charges for loans etc. -29 -40 -87
Core earnings 304 277 522
Result for portfolio +15 +44 +65
Profit before tax 319 321 587
Profit after tax 249 245 446
       
Shareholders’ equity 3,154 2,971 3,099
Deposits 16,628 14,054 15,450
Loans 15,032 14,283 15,507
Balance sheet total 22,118 19,675 21,238
Guarantees 2,667 1,438 2,218
       
Key figures for the bank (per cent)      
Return on equity before tax, beginning of year, p.a. 21.4 23.1 21.1
Return on equity after tax, beginning of year, p.a. 16.7 17.6 16.0
Rate of costs 30.8 30.8 32.8
Common Equity Tier 1 capital ratio 17.4 18.1 17.5
Tier 1 capital ratio 17.4 18.2 17.5
Total capital ratio 19.3 18.2 17.5
Individual solvency requirement 8.9 8.8 8.9
       
Key figures per 5 DKK share (DKK)      
Core earnings 65 58 112
Profit before tax 68 67 126
Profit after tax 53 51 95
Net asset value 675 622 664
Price, end of period 1,485 1,170 1,152
Dividend - - 26

  

Profit and loss account

Note 1.1-30.6 2015
DKK 1,000
1.1-30.6 2014
DKK 1,000
1.1-31.12 2014
DKK 1,000
1 Interest receivable 374,551 394,712 787,924
2 Interest payable 52,539 71,936 139,253
  Net income from interest 322,012 322,776 648,671
3 Dividend on capital shares etc. 12,778 7,686 7,897
4 Income from fees and commissions 155,448 129,858 261,082
4 Fees and commissions paid 18,604 15,325 31,701
  Net income from interest and fees 471,634 444,995 885,949
5 Value adjustments +23,474 +55,799 +82,293
  Other operating income 1,841 2,249 4,001
6,7 Staff and administration costs 138,633 129,839 270,532
  Amortisations, depreciations and write-downs on
intangible and tangible assets
1,838 3,961 12,192
  Other operating costs      
      Miscellaneous other operating costs 0 154 268
      Costs Deposit Guarantee Fund 8,143 7,587 15,041
8 Impairment charges for loans and other debtors etc. -29,262 -40,393 -87,186
  Result of capital shares in associated companies 0 0 -11
  Profit before tax 319,073 321,109 587,013
9 Tax 70,500 76,500 141,152
  Profit after tax 248,573 244,609 445,861
         
  Other comprehensive income 0 0 0
  Total comprehensive income 248,573 244,609 445,861

  

Core earnings

  1.1-30.6 2015
DKK 1,000
1.1-30.6 2014
DKK 1,000
1.1-31.12 2014
DKK 1,000
  Net income from interest 314,713 316,530 634,681
  Net income from fees and provisions excl. commission 112,047 95,886 192,941
  Income from sector shares 21,383 18,335 25,576
  Foreign exchange income 7,510 7,547 13,489
  Other operating income 1,841 2,249 4,001
  Total core income excl. trade income 457,494 440,547 870,688
  Trade income 24,797 18,647 36,440
  Total core income 482,291 459,194 907,128
  Staff and administration costs 138,633 129,839 270,532
  Amortisations, depreciations and write-downs on
intangible and tangible assets
1,838 3,961 12,192
  Other operating costs 8,143 7,608 15,177
  Total costs etc. 148,614 141,408 297,901
  Core earnings before impairments 333,677 317,786 609,227
  Impairment charges for loans and other debtors etc. -29,262 -40,393 -87,186
  Core earnings 304,415 277,393 522,041
  Result for portfolio +14,658 +43,849 +65,104
  Expenses for bank packages 0 -133 132
  Profit before tax 319,073 321,109 587,013
  Tax 70,500 76,500 141,152
  Profit after tax 248,573 244,609 445,861

 

Balance sheet

Note End
June 2015
DKK 1,000
End
June 2014
DKK 1,000
End
Dec. 2014
DKK 1,000
  Assets      
  Cash in hand and claims at call on central banks 740,913 277,529 190,873
10 Claims on credit institutions and central banks 413,755 227,903 180,490
     Claims at notice on central banks 85,012 0 0
     Money market operations and bilateral loans
   - term to maturity under 1 year
208,743 105,022 60,490
     Bilateral loans - term to maturity over 1 year 120,000 122,881 120,000
11,12,13 Loans and other debtors at amortised cost price 15,032,355 14,283,008 15,507,134
     Loans and other debtors at amortised cost price 13,712,577 13,147,142 13,842,752
     Wind turbine loans with direct funding 1,031,434 1,135,866 1,081,240
     Reverse transactions 288,344 0 583,142
14 Bonds at current value 5,074,456 4,350,832 4,659,495
15 Shares etc. 303,515 212,851 283,047
  Capital shares in associated companies 530 540 530
  Land and buildings total 66,061 72,541 66,401
    Investment properties 6,056 8,015 6,056
    Domicile properties 60,005 64,526 60,345
  Other tangible assets 3,946 4,337 4,666
  Actual tax assets 222,340 0 87,779
  Temporary assets 450 1,000 997
  Other assets 253,179 238,873 248,863
  Periodic-defined items 6,708 5,997 7,633
  Total assets 22,118,208 19,675,411 21,237,908

  

Balance sheet

Note End
June 2015
DKK 1,000
End
June 2014
DKK 1,000
End
Dec. 2014
DKK 1,000
  Liabilities and equity      
16 Debt to credit institutions and central banks 1,653,913 1,795,623 1,911,215
    Money market operations and bilateral credits
  - term to maturity under 1 year
489,922 527,282 697,712
    Bilateral credits - term to maturity over 1 year 132,557 132,475 132,263
   Bilateral credits from KfW Bankengruppe 1,031,434 1,135,866 1,081,240
17 Deposits and other debts 16,628,170 14,054,243 15,450,273
18 Issued bonds at amortised cost price 149,208 244,132 236,238
  Actual tax liabilities 0 27,810 0
  Other liabilities 140,647 195,820 156,231
  Periodic-defined items 1,270 150 1,205
  Total debt 18,573,208 16,317,778 17,755,162
         
  Provisions for deferred tax 14,476 13,188 14,476
12 Provisions for losses on guarantees 4,418 4,884 3,995
  Total provisions for liabilities 18,894 18,072 18,471
         
  Tier 2 capital 371,982 200,081 200,216
  Additional tier 1 capital 0 168,286 165,451
19 Total subordinated debt 371,982 368,367 365,667
         
20 Share capital 23,350 23,900 23,900
  Reserve for net revaluation under the intrinsic value method 178 189 178
  Profit carried forward 3,130,596 2,947,105 2,949,750
  Proposed dividend etc. - - 124,780
  Total shareholders’ equity 3,154,124 2,971,194 3,098,608
         
  Total liabilities and equity 22,118,208 19,675,411 21,237,908
 
21
Own capital share      
22 Contingent liabilities etc.      
23 Assets furnished as security      
24 Capital statement      
25 The supervisory diamond      
26 Miscellaneous comments      

 

Statement of shareholders’ equity

DKK 1,000 Share
capital
Reserve for net revaluation under the intrinsic value method Profit     carried   forward Proposed
dividend etc.
Total share-holders’
equity
On 30 June 2015:
 
Shareholders’ equity at the end of the previous financial year
23,900 178 2,949,750 124,780 3,098,608
Reduction of share capital -550   550   0
Dividend etc. paid       -124,780 -124,780
Dividend received on own shares     3,385   3,385
Shareholders’ equity after allocation of dividend etc. 23,350 178 2,953,685 0 2,977,213
Purchase and sale of own shares     -71,662   -71,662
Total comprehensive income     248,573   248,573
Shareholders’ equity on  the balance sheet date 23,350 178 3,130,596 0 3,154,124

 

  

On 30 June 2014:
 
Shareholders’ equity at the end of the previous financial year
24,200 189 2,755,211 121,500 2,901,100
Reduction of share capital -300   300   0
Dividend etc. paid       -121,500 -121,500
Dividend received on own shares     2,022   2,022
Shareholders’ equity after allocation of dividend etc. 23,900 189 2,757,533 0 2,781,622
Purchase and sale of own shares     -55,037   -55,037
Total comprehensive income     244,609   244,609
Shareholders’ equity on  the balance sheet date 23,900 189 2,947,105 0 2,971,194

   

On 31 December 2014:
 
Shareholders’ equity at the end of the previous financial year
24,200 189 2,755,211 121,500 2,901,100
Reduction of share capital -300   300   0
Dividend etc. paid       -121,500 -121,500
Dividend received on own shares     2,022   2,022
Shareholders’ equity after allocation of dividend etc. 23,900 189 2,757,533 0 2,781,622
Purchase and sale of own shares     -128,875   -128,875
Total comprehensive income   -11 321,092 124,780 445,861
Shareholders’ equity on  the balance sheet date 23,900 178 2,949,750 124,780 3,098,608

 

 

Notes

Note 1.1-30.6
2015

DKK 1,000
1.1-30.6
2014

DKK 1,000
1.1-31.12 2014
DKK 1,000
1 Interest receivable      
  Claims on credit institutions and central banks 5,597 10,002 16,750
  Loans and other debtors 350,961 367,607 740,222
  Loans - interest concerning the impaired part of loans -19,753 -22,166 -44,221
  Reverse loans 4,730 0 -3,457
  Bonds 32,445 45,583 90,054
  Total derivatives financial instruments, of which 1,783 -6,694 -12,550
     Currency contracts 1,617 512 193
     Interest-rate contracts 166 -7,206 -12,743
  Other interest receivable -1,212 380 1,126
  Total interest receivable 374,551 394,712 787,924
         
2 Interest payable      
  Credit institutions and central banks 12,236 13,229 26,425
  Deposits and other debts 31,625 48,672 92,049
  Repo deposits 66 0 0
  Issued bonds 3,411 3,785 7,207
  Subordinated debt 5,198 6,241 13,023
  Other interest payable 3 9 549
  Total interest payable 52,539 71,936 139,253
         
3 Dividend from shares etc.      
  Shares 12,778 7,686 7,897
  Total dividend from shares etc. 12,778 7,686 7,897
         
4 Gross income from fees and commissions      
  Securities trading and deposits 30,407 23,346 45,378
  Asset management 53,857 51,485 96,994
  Payment handling 12,302 11,187 23,883
  Loan fees 10,404 2,307 11,851
  Guarantee commissions 28,139 27,297 51,891
  Other fees and commissions 20,339 14,236 31,085
  Total gross income from fees and commissions 155,448 129,858 261,082
         
  Net income from fees and commissions      
  Securities trading and deposits 24,797 18,647 36,440
  Asset management 50,634 48,466 91,443
  Payment handling 10,034 10,351 20,849
  Loan fees 8,965 1,490 9,723
  Guarantee commissions 28,139 27,297 51,891
  Other fees and commissions 14,275 8,282 19,035
  Total net income from fees and commissions 136,844 114,533 229,381
  Foreign exchange income 7,510 7,547 13,489
  Total net income from fees, commissions and foreign exchange income 144,354 122,080 242,870

 

Notes

Note   1.1-30.6
2015

DKK 1,000
1.1-30.6
2014

DKK 1,000
1.1-31.12 2014
DKK 1,000
5 Value adjustments      
  Loans and other debtors, current value adjustment 2,040 4,325 11,129
  Bonds -20,302 30,020 21,779
  Shares etc. 21,381 16,911 23,594
  Foreign exchange income 7,510 7,547 13,489
  Total derivatives financial instruments, of which 12,845 -7,596 3,482
     Interest-rate contracts 12,191 -8,078 2,543
     Share contracts 654 482 939
  Issued bonds 0 2,043 3,295
  Other liabilities 0 2,549 5,525
  Total value adjustments 23,474 55,799 82,293
 
6
Staff and administration costs      
  Payments to general management, board of directors
and shareholders’ committee
     
     General management 2,149 2,048 4,031
     Board of directors 789 696 1,392
     Shareholders’ committee 0 0 393
     Total 2,938 2,744 5,816
  Staff costs      
     Salaries 64,955 60,675 124,634
     Pensions 6,503 6,337 12,749
     Social security expenses 441 459 905
     Costs depending on number of staff 8,985 7,753 17,826
     Total 80,884 75,224 156,114
  Other administration costs 54,811 51,871 108,602
  Total staff and administration costs 138,633 129,839 270,532
         
7 Number of full-time employees      
  Average number of employees during the period
converted into full-time employees
261 259 257
         
8 Impairment charges on loans and other debtors etc.      
  Net changes in impairment charges on loans and other debtors and provisions for losses on guarantees 35,310 54,328 77,980
  Actual realised net losses 13,705 8,231 53,427
  Interest concerning the impaired part of loans -19,753 -22,166 -44,221
  Total impairment charges on loans and other debtors etc. 29,262 40,393 87,186

  

Notes

Note   1.1-30.6
2015

DKK 1,000
1.1-30.6
2014

DKK 1,000
1.1-31.12 2014
DKK 1,000
9 Tax      
  Tax calculated on the period’s profit 70,500 76,500 139,780
  Adjustment of deferred tax 0 0 1,826
  Adjustment of deferred tax due to change in tax rate 0 0 -538
  Adjustment of tax calculated for previous years 0 0 84
  Total tax 70,500 76,500 141,152
         
  Effective tax rate (%):      
  The current tax rate of the bank 23.5 24.5 24.5
  Permanent deviations -1.4 -0.7 -0.4
  Adjustment of deferred tax due to change in tax rate 0.0 0.0 -0.1
  Adjustment of tax calculated for previous years 0.0 0.0 0.0
  Total effective tax rate 22.1 23.8 24.0
         
Note   End
June 2015
DKK 1,000
End
June 2014
DKK 1,000
End
Dec. 2014 DKK 1,000
10 Claims on credit institutions and central banks      
  Claims at call 157,267 105,022 59,014
  Up to and including 3 months 135,012 0 0
  More than 3 months and up to and including 1 year 1,476 0 1,476
  More than 1 year and up to and including 5 years 120,000 122,881 120,000
  Total claims on credit institutions and central banks 413,755 227,903 180,490
         
11 Loans and other debtors at amortised cost price      
  At call 1,581,017 1,265,632 1,383,877
  Up to and including 3 months 801,735 546,204 1,248,521
  More than 3 months and up to and including 1 year 1,908,138 1,932,896 1,869,846
  More than 1 year and up to and including 5 years 5,108,686 4,939,311 5,281,673
  More than 5 years 5,632,779 5,598,965 5,723,217
  Total loans and other debtors at amortised cost price 15,032,355 14,283,008 15,507,134
         
  Of which reverse transactions 288,344 0 583,142

 

 

Notes

Note   End
June 2015 DKK 1,000
End
June 2014 DKK 1,000
End
Dec. 2014 DKK 1,000
12 Impairment charges for loans and other debtors and provisions for losses on guarantees      
         
  Individual impairment charges      
  Cumulative individual impairment charges for loans and other debtors at the end of the previous financial year 701,131 736,513 736,513
  Impairment charges/value adjustments during the period 76,435 109,905 179,129
  Reverse entry - impairment charges made in previous
financial years
-64,230 -96,082 -174,736
  Booked losses covered by impairment charges -12,151 -8,376 -39,775
  Cumulative individual impairment charges for loans and other debtors on the balance sheet date 701,185 741,960 701,131
         
  Collective impairment charges      
  Cumulative collective impairment charges for loans and other debtors at the end of the previous financial year 226,272 112,652 112,652
  Impairment charges/value adjustments during the period 34,834 48,253 113,620
  Cumulative collective impairment charges for loans and other debtors on the balance sheet date 261,106 160,905 226,272
         
  Total cumulative impairment charges for loans and other debtors on the balance sheet date 962,291 902,865 927,403
         
  Provisions for losses on guarantees      
  Cumulative individual provisions for losses on guarantees at the end of the previous financial year 3,995 4,256 4,256
  Provisions/value adjustments during the period 3,137 1,158 2,261
  Reverse entry - provisions made in previous financial years -2,702 -494 -2,469
  Booked losses covered by provisions -12 -36 -53
  Cumulative individual provisions for losses on guarantees on the balance sheet date 4,418 4,884 3,995
         
  Total cumulative impairment charges for loans and other debtors and provisions for losses on guarantees on the balance sheet date 966,709 907,749 931,398
         
13 Suspended calculation of interest      
  Loans and other debtors with suspended calculation of
interest on the balance sheet date
57,001 97,950 58,244

 

  

Notes

Note   End
June 2015 DKK 1,000
End
June 2014 DKK 1,000
End
Dec. 2014 DKK 1,000
14 Bonds at current value      
  Listed on the stock exchange 5,074,456 4,350,832 4,659,495
  Total bonds at current value 5,074,456 4,350,832 4,659,495
         
15 Shares etc.      
  Listed on NASDAQ Copenhagen 56,444 28,142 40,650
  Unlisted shares at current value 1,488 1,372 1,473
  Sector shares at current value 245,583 183,337 240,924
  Total shares etc. 303,515 212,851 283,047
         
16 Debt to credit institutions and central banks      
  Debt payable on demand 348,902 276,109 258,042
  Up to and including 3 months 180,097 283,775 478,264
  More than 3 months and up to and including 1 year 85,207 76,191 76,818
  More than 1 year and up to and including 5 years 600,808 618,492 611,326
  More than 5 years 438,899 541,056 486,765
  Total debt to credit institutions and central banks 1,653,913 1,795,623 1,911,215
         
17 Deposits and other debts      
  On demand 10,217,216 8,541,033 9,209,187
  Deposits and other debts at notice:      
  Up to and including 3 months 2,119,728 1,557,161 1,761,577
  More than 3 months and up to and including 1 year 1,061,779 785,388 1,064,673
  More than 1 year and up to and including 5 years 829,772 1,498,396 948,383
  More than 5 years 2,399,675 1,672,265 2,466,453
  Total deposits and other debts 16,628,170 14,054,243 15,450,273
         
         
  Distributed as follows:      
  On demand 9,896,295 8,139,917 8,815,421
  At notice 352,047 346,999 348,422
  Time deposits 2,984,590 2,234,978 2,735,273
  Long term deposit agreements 2,042,080 1,882,823 2,238,720
  Special types of deposits 1,353,158 1,449,526 1,312,437
    16,628,170 14,054,243 15,450,273

 

Notes

Note   End
June 2015
DKK 1,000
End
June 2014
DKK 1,000
End
Dec. 2014
DKK 1,000
18 Issued bonds at amortised cost price      
  Up to and including 3 months 0 0 2,573
  More than 3 months and up to and including 1 year 149,208 95,018 233,665
  More than 1 year and up to and including 5 years 0 149,114 0
  Total issued bonds at amortised cost price 149,208 244,132 236,238
         
  Distributed as follows:      
  Issues in Norwegian kroner:      
    Nom. 100 million NOK 0 88,720 82,320
    Regulation at amortised cost price and adjustment to
  current value of issues
0 3,725 2,473
  Issues in euro:      
    Nom. 20 million EUR 149,208 149,114 148,872
  Other issues 0 2,573 2,573
    149,208 244,132 236,238
         
19 Subordinated debt      
  Tier 2 capital:      
    Floating rate loan, principal EUR 50 million,
  expiry 20 May 2025
373,020 0 0
    Floating rate loan, principal EUR 27 million,
  redeemed 30 June 2015
0 200,081 200,977
  Additional tier 1 capital:      
    4.795% bond loan, nom, DKK 200 million,
  redeemed 2 March 2015
0 200,000 200,000
    Own holding 0 -35,500 -35,500
  Regulation at amortised cost price and adjustment to current value of tier 2 capital and additional tier 1 capital -1,038 3,786 190
  Total subordinated debt 371,982 368,367 365,667
         
20 Share capital      
  Number of shares at DKK 5 each:      
  Beginning of period 4,780,000 4,840,000 4,840,000
  Changes during the period -110,000 -60,000 -60,000
  End of period 4,670,000 4,780,000 4,780,000
    Of which reserved for subsequent cancellation 50,000 45,000 110,000
         
  Total share capital 23,350 23,900 23,900

 

Notes

Note  End
June 2015
DKK 1,000
End
June 2014
DKK 1,000
End
Dec. 2014
DKK 1,000
21 Own capital shares      
  Own capital shares included in the balance sheet at 0 0 0
  The market value is 81,930 57,614 130,781
         
  Number of own shares:      
  Beginning of year 113,525 62,554 62,554
  Purchases during the period 199,155 141,713 290,886
  Sales during the period -147,508 -95,024 -179,915
  Cancellation during the period -110,000 -60,000 -60,000
  End of period 55,172 49,243 113,525
   Of which reserved for subsequent cancellation 50,000 45,000 110,000
         
  Nominal value of holding of own shares,
end of period
276 246 568
  Own shares’ proportion of share capital,
end of period (%)
1.2 1.0 2.4
         
22 Contingent liabilities etc.      
  Contingent liabilities      
  Finance guarantees 1,269,067 762,231 978,987
  Guarantees against losses on mortgage credit loans 74,980 54,275 62,074
  Guarantee against losses Totalkredit 117,491 121,876 187,068
  Registration and conversion guarantees 952,643 252,916 728,745
  Sector guarantees 48,596 48,175 48,596
  Other contingent liabilities 204,718 198,941 212,340
  Total contingent liabilities 2,667,495 1,438,414 2,217,810
         
23 Assets furnished as security      
  First mortgage loans are provided for German wind turbine projects. The loans are funded directly by KfW Bankengruppe, to which security in the associated loans has been provided. Each repayment of the first mortgage loans is deducted directly from the funding from the KfW Bankengruppe. 1,031,434 1,135,866 1,081,240
         
  As security for clearing etc., the bank has pledged securities from its holding to the Central Bank of Denmark to a total market price of 19,809 80,821 275,685
         
  Provision of security under CSA agreements 70,374 64,165 86,269

 

  

Notes

Note  End
June 2015
DKK 1,000
End
June 2014
DKK 1,000
End
Dec. 2014
DKK 1,000
24 Capital statement      
         
  Credit risk 12,999,665 12,239,250 12,879,048
  Market risk 1,650,805 1,310,061 1,464,214
  Operational risk 1,679,498 1,567,369 1,567,369
  Total risk exposure amount 16,329,968 15,116,680 15,910,631
         
  Shareholders’ equity 3,154,124 2,971,194 3,098,608
  Proposed dividend etc. 0 0 -124,780
  Deduction for expected dividend -69,600 -64,332 0
  Deduction for the sum of equity investments etc. > 10% -115,628 -94,888 -143,584
  Deduction of frame for share buy-back programme, net -76,979 -75,798 0
  Deduction of trading framework for own shares -55,000 0 -55,000
  Actual utilization of the trading framework for own shares 7,702 0 4,061
  Common Equity Tier 1 capital 2,844,619 2,736,176 2,779,305
  Additional Tier 1 capital 0 131,600 131,600
  Deduction for the sum of equity investments etc. > 10% 0 -115,909 -131,600
  Tier 1 capital 2,844,619 2,751,867 2,779,305
  Tier 2 capital 373,020 161,100 160,782
  Deduction for the sum of equity investments etc. > 10% -73,716 -155,618 -160,782
  Own funds 3,143,923 2,757,349 2,779,305
         
  Common Equity Tier 1 capital ratio (%) 17.4 18.1 17.5
  Tier 1 capital ratio (%) 17.4 18.2 17.5
  Total capital ratio (%) 19.3 18.2 17.5
         
  Own funds requirements 1,306,397 1,209,334 1,272,850
         
25 The supervisory diamond
(Danish Financial Supervisory Authority limits)
     
         
  Stable funding (funding ratio) (< 1) 0.7 0.7 0.8
  Excess liquidity (> 50%) 203.9% 168.6% 140.7%
  Total large exposures (< 125%) 31.5% 29.8% 47.8%
  Growth in loans (< 20%) 3.2% 3.1% 7.8%
  Real estate exposure (< 25%) 12.1% 12.3% 11.6%
         
26 Miscellaneous comments:
   
Main and key figures for the bank
·         Return on equity at the beginning of the year before and after tax are computed per annum after allocation of dividend etc., net.
·         Key figures per DKK 5 share are calculated on the basis of respectively 1st half 2015: 4,670,000, 1st half 2014: 4,780,000 shares, 2014: 4,670,000 shares.
 

 

Main figures summary

  1st half
2015
1st half
2014
Full year
2014
Profit and loss account summary (million DKK)
Net income from interest 322 323 649
Dividend on capital shares etc. 13 8 8
Net income from fees and commissions 137 114 229
Net income from interest and fees 472 445 886
Value adjustments +23 +56 +82
Other operating income 2 2 4
Staff and administration costs 139 130 271
Amortisations, depreciations and write-downs on intangible and tangible assets 2 4 12
Other operating costs 8 8 15
Impairment charges for loans and other debtors etc. -29 -40 -87
Profit before tax 319 321 587
Tax 70 76 141
Profit after tax 249 245 446
 
Main figures from the balance sheet (million DKK)
Loans and other debtors 15,032 14,283 15,450
Deposits and other debts 16,628 14,054 15,507
Subordinated debt 372 368 366
Shareholders’ equity 3,154 2,971 3,099
Balance sheet total 22,118 19,675 21,238

  

Quarterly overview 

 
(Million DKK)
2nd qtr.
2015
1st qtr.
2015
4rd qtr.
2014
3rd qtr.
2014
2nd qtr.
2014
1st qtr.
2014
4th qtr. 2013 3rd qtr. 2013 2nd qtr.
2013
1st qtr.
2013
Net income from interest 154 161 160 158 159 158 156 155 151 153
Net income from fees and provisions excl. commission 61 51 60 37 51 45 48 33 55 36
Income from sector shares 11 10 4 4 2 16 5 3 4 2
Foreign exchange income 4 3 2 4 4 3 3 3 2 5
Other operating income 1 1 1 1 1 1 1 1 1 0
Total core income excl. trade income 231 226 227 204 217 223 213 195 213 196
Trade income 13 12 10 7 8 11 7 5 9 6
Total core income 244 238 237 211 225 234 220 200 222 202
Staff and administration costs 74 65 79 62 68 62 70 61 66 58
Amortisations, depreciations and write-downs on intangible and tangible assets 1 1 7 1 3 1 2 1 0 1
Other operating costs 4 4 3 4 4 4 4 3 3 4
Total costs etc. 79 70 89 67 75 67 76 65 69 63
Core earnings before impairments 165 168 148 144 150 167 144 135 153 139
Impairment charges for loans and other
debtors etc.
-14 -15 -24 -23 -25 -15 -25 -34 -40 -21
Core earnings 151 153 124 121 125 152 119 101 113 118
Result for portfolio -8 +23 +9 +12 +20 +24 +12 -4 +9 +6
Expenses for bank packages 0 0 0 0 0 0 0 -1 0 -1
Profit before tax 143 176 133 133 145 176 131 96 122 123
Tax 31 39 33 32 36 40 30 23 30 31
Profit after tax 112 137 100 101 109 136 101 73 92 92

  

Danish Financial Supervisory Authority
key figures for Danish banks

   1st half
2015
1st half
2014
Full year
2014
Capital ratios:        
Total capital ratio % 19,3 18.2 17.5
Tier 1 capital ratio % 17,4 18.2 17.5
Individual solvency requirement % 8,9 8.8 8.9
         
Earnings:        
Return on equity before tax % 10.2 10.9 19.6
Return on equity after tax % 8.0 8.3 14.9
Income / cost ratio DKK 2.79 2.77 2.52
Return on assets % 1.1 1.2 2.1
         
Market risk:        
Interest rate risk % 1.5 0.8 1.2
Foreign exchange position % 1.1 0.8 0.4
Foreign exchange risk % 0.0 0.0 0.0
         
Liquidity risk:        
Excess cover relative to statutory liquidity
requirement
% 203.9 168.6 140.7
Loans and impairments thereon relative to deposits % 96.2 108.1 106.4
         
Credit risk:        
Loans relative to shareholders’ equity   4.8 4.8 5.0
Growth in loans % -1.2 3.1 12.0
Total large exposures % 31.5 29.8 47.8
Cumulative impairment percentage % 5.2 5.5 5.0
Impairment percentage % 0.16 0.24 0.47
Proportion of debtors at reduced interest % 0.3 0.6 0.3
         
Share return:        
Profit after tax per share * / *** DKK 1,052.2 1,017.1 1,853.9
Book value per share * / ** DKK 13,670 12,561 13,280
Share price relative to profit per share * DKK 28.2 23.0 12.4
Share price relative to profit per share * / ***   2.17 1.86 1.73
 
*        Calculated on the basis of a denomination of DKK 100 per share.
**       Calculated on the basis of number of shares outstanding at the end of the period.
***      Calculated on the basis of the average number of shares. The average number of shares is calculated               as a simple average of the shares at the beginning of the period and at the end of the period.
 

 

Management’s statement

The board of directors and the general management have today considered and approved the interim report for Ringkjøbing Landbobank A/S for the period 1 January - 30 June 2015.                                                                                           

The interim report was prepared in accordance with the provisions of the Danish Act on Financial Activities and further Danish requirements on listed financial companies concerning disclosure. We consider the accounting policies to be appropriate and the accounting estimates made to be responsible, such that the interim report provides a true and fair view of the bank’s assets, liabilities and financial position as of 30 June 2015 and of the bank’s activities for the period 1 January - 30 June 2015. We also believe that the management report contains a true and fair account of the bank’s activities and financial position as well as a description of the most important risks and uncertainties which can affect the bank.

The interim report is not audited or reviewed, but the external auditors have checked that the conditions for ongoing inclusion of the earnings for the period in the core capital have been met.

  

Ringkøbing, 5 August 2015

 

General Management:
 
 
John Fisker
CEO
 
 
Board of Directors:
 

  

Jens Lykke Kjeldsen
Chairman
  Martin Krogh Pedersen
Deputy chairman
 
 
Gert Asmussen
   
 
Inge Sandgrav Bak
 
 
Jens Møller Nielsen
   
 
Jørgen Lund Pedersen
 
 
Bo Bennedsgaard
Employee board member
   
 
Dan Astrup Sørensen
Employee board member
 
 
Gitte E. S. Vigsø
Employee board member

 

Vedhæftede filer:

Interim report 2015.pdf

Udgivet af: NPinvestordk

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