SPARBANK's profit before tax was DKK 20.6m against DKK 69.0m in Q1 2008. This
result corresponds to a return on equity of 6.1%. The profit includes expenses
for the Danish Contingency Committee of DKK 18.7m.
Core earnings before impairment were DKK 66.9m against DKK 57.1m the year
before. Core earnings - the result of the actual banking operations - amounted
to DKK 9.2m against DKK 47.9m the year before.
Developments in the financial and money markets together with the expectations
for the economic trends meant that the bank made impairments and provisions of
DKK 57.7m.
SPARBANK's solvency exceeds the statutory minimum requirement of 8%. As at 31
March 2009, the solvency ratio was 10.1%. The bank expects to strengthen its
capital base as an application has been filed for participation in Bank Package
II. In connection with an injection of hybrid core capital of approx. DKK 650m,
the solvency and core capital ratios are expected to increase to 14 and 12,
respectively.
As indicated by the bank in connection with the publication of its 2008 annual
report, the bank expects a small increase in core earnings before impairment
for 2009 as a whole. In 2008, core earnings before impairment amounted to DKK
230m.
