DKK 11 million in pre-tax profits after a quarter with growth in
core earnings, but major extraordinary costs
• Net interest income down 4% (Q/Q) to DKK 393 million - primarily due to a
decline in the interest level
• Net income from fees, charges and commissions up 19% (Q/Q) to DKK 128 million
- the growth is broadly founded and partly driven by a rising activity level in
the investment area
• Highly satisfactory market-value adjustments of DKK 82 million - 19% up on Q4
2009
• 5% growth in costs (Q/Q) after extraordinary severance costs of DKK 23
million - zero growth in costs still expected in 2010 and 2011
• Core earnings before impairment of DKK 207 million - 4% up on Q4 2009
• Contributions to sector-targeted solutions triggered by Bank Package I and
payments to the Depositors' Guarantee Fundto totalling DKK 82 million
• DKK 123 million in impairment of loans and advances, etc., corresponding to
an impairment ratio of 1.04% p.a. - down DKK 42 million on Q4 2009
• Continued customer inflow and a high level of customer loyalty
• The projection for core earnings before impairment of DKK 800-1,000 million
for the full year maintained - the projected impairment ratio for the year
maintained at a level of 1.00-1.25%
DKK 11 million is a moderate profit performance, but considering the underlying
circumstances there is actually reason to be satisfied. The streamlining of our
strategy is progressing as planned, as we shift from geographical growth to
business growth and focus more sharply on expenditure. During Q1 we implemented
the scheduled staff trimming, and we expect continued zero growth in costs and
expenses over the next two years. On the customer side there is reason to be
satisfied with the continued customer inflow and high loyalty rate among our
existing customers. Q1 has also marked a turnaround manifested in lending and
business volumes that are once more growing. We expect this trend to continue
during the next quarterly periods, says Lasse Nyby, CEO.
