Alm. Brand Bank A/S – Annual Report 2015

Highlights

• The bank incurred a pre-tax loss of DKK 331 million in 2015 (2014: DKK 275 million loss). Although in line with the most recent guidance, the performance was not satisfactory.

• Core earnings in the forward-looking activities amounted to DKK 98 million (2014: DKK 96 million). The forward-looking activities reported a pre-tax profit of DKK 18 million, which was in line with expectations. The performance was DKK 43 million lower than in 2014, mainly due to the turbulence in the fixed income markets, which drove down trading activity and resulted in significant capital losses on the bank’s bond portfolio.

• Impairment writedowns on private customers amounted to DKK 21 million in 2015 (2014: DKK 17 million).

• The bank continues to experience an increase in the number of Pluskunder, which contributed to growth in lending to private customers of close to DKK 200 million in 2015 and to an increase of DKK 1.1 billion in the portfolio of Totalkredit loans for which the bank acted as intermediary.
   
• The bank incurred a loss on its winding-up activities of DKK 349 million in 2015 (2014: DKK 336 million loss), which was in line with expectations.

• Impairment writedowns on the winding-up portfolio amounted to DKK 306 million in 2015, most of which were attributable to agricultural exposures, reflecting the extremely difficult conditions for the Danish agricultural sector.

• The forward-looking activities are expected to generate pre-tax profit of about DKK 70 million in 2016. The winding-up activities are expected to report a pre-tax loss of DKK 50-75 million.

Other highlights

• Income from the forward-looking activities increased by 8% to DKK 571 million in 2015 (2014: DKK 531 million). The increase was driven by higher net interest and fee income and higher other income, primarily comprising the bank’s leasing activities.

• Costs related to the forward-looking activities amounted to DKK 352 million in 2015, which was 2% or DKK 8 million higher than in 2014 when costs amounted to DKK 344 million.

• Value adjustments produced a loss of DKK 59 million in 2015, against a loss of DKK 31 million in 2014, being strongly impacted by a negative return on the own portfolio due to the wider credit spread between mortgage bonds and government bonds.

• In 2015, the bank reduced the credit exposure of the winding-up portfolio by DKK 490 million adjusted for losses and writedowns. The reduction of the winding-up portfolio is generally progressing better than expected.

• At 31 December 2015, the bank had excess liquidity of DKK 3.1 billion, corresponding to an excess liquidity coverage of 272%. The excess coverage was reduced by DKK 1.8 billion in 2015 and will be reduced further in 2016.

• At 31 December 2015, the bank’s total capital amounted to DKK 1.4 billion, and the total capital ratio was 18.6. The bank’s individual solvency need was calculated at 14.0%, and the bank thus had an excess coverage of 4.6 percentage points. The banking group had a total capital ratio of 17.2, and the individual solvency need was calculated at 13.7%. The banking group thus had an excess coverage of 3.5 percentage points.

Contact

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.

Vedhæftede filer:

ABB - Annual Report 2015 UK.pdf

ABB-01-2016 - Annual report.pdf