Ringkjøbing Bank hereby presents the current status on basis of the development
on the financial markets.
- The bank expects a profit for the year 2008 of DKK 80 million against the
latest expectations of DKK 125 million.
The cause for this is that the bank expects write-downs on loans of DKK 65
million against previous expected DKK 10 million. These write-downs are mostly
on loans, where the collateral consists of securities, which have decreased
dramatically within the recent weeks. The losses are not realized, but to be
cautious we have chosen to make the write-downs of the stated size. The total
of this kind of loans amounts to approx. DKK 400 million after write-downs.
- Core earnings, before write-downs on loans, are expected to be DKK 150
million, the best in the history of the bank.
- Value adjustments for the year are expected to be negative by DKK 5 million.
- Ringkjøbing Banks capital base is expected to be DKK 1.3 billion by the end
of the year, equivalent to a solvency ratio of 14.8, and core capital approx.
10.5.
- The liquidity is covered by pledged loans and drawing rights at Danish and
foreign institutions with an originally term of up to 7 years. From our total
of long-termed loans of approx. DKK 2.3 billion, only DKK 100 million are to be
extended in 2009. Ringkjøbing Bank has, in this context, benefit of
multi-annual good cooperation with several institutions.
- The spread of Ringkjøbing Banks loans and guarantees is very good with
approx. 48% to private and 52% to business. Hereof amounts property
administration 14.4%. Ringkjøbing Bank is not taking part of project financing
within the property sector, besides matters which naturally concern the
costumers of the local area, and this part amounts to less than 2%. Furthermore
the total of major commitments is at a low level with 36%. In the last year
there has been a zero growth in loans, which follows the strategic plan, that
has been made in September 2007.
Ringkjøbing Banks quarterly report for 1st-3rd quarter 2008 will be announced
on 23 October 2008.
For further information, please contact:
Preben Knudsgaard, Managing director, phone: +45 9975 3200
Kaj Damgaard, Director, IR responsible, phone: + 45 9975 3231
