Faaborg, Denmark, 2012-02-13 11:51 CET (GLOBE NEWSWIRE) -- Overview financial year 2011
The expected results for 2011 before market value adjustments, loan impairment losses etc. and tax for the group of Sparekassen Faaborg have been met by DKK 112m. The results are in the upper half of the previously published expected results of DKK 100-120m.
The annual pre-tax profit is a surplus of DKK 14,2m and has thus improved by DKK 113,3m compared to 2010. The net surplus amounts to DKK 10,6m and has thus improved by DKK 86,4m compared to 2010.
The net interest and fee income has decreased by 8.3 percent as a consequence of following the strategy on reducing loans and advances. The fee and commission income has increased by 2.9 percent due to increasing activities in other fields.
In July Sparekassen Faaborg acquired Ryslinge Andelskasse and by the end of 2011 it is fully integrated in the group of Sparekassen Faaborg.
Staff costs and administration expenses have increased by 9.8 percent due to, among others, the acquisition of Ryslinge Andelskasse and the opening of new branches in Kerteminde and Årslev.
Loan impairment losses etc. have decreased by 57.2 percent and amount to DKK 110.4m. The impairments are mainly on loan arrangements with real property investors.
Loans and advances have been reduced by 3.3 percent and deposits inclusive of pool deposits have decreased by 2.4 percent. The reduction of loans and advances comes from following the group strategy to achieve balance between deposits and loans and advances. The decline of deposits mainly comes from increased competition on deposits.
The group solvency and core capital are very sound. The solvency ratio is 18.6 and the core capital ratio 15.6 percent. By the end of 2010 the solvency ratio was 17.0 and the core capital ratio 14.3.
The liquidity remains very satisfactory and the surplus amounts to 162.7 percent.
Payment of dividend for 2011 is not recommended.
Outlook financial year 2012
Sparekassen Faaborg expects group results before market value adjustments, loan impairment losses etc. and tax on a higher level than 2011.
In 2012 the costs are expected to increase faintly. The group will continue to invest in technological and product-related promotions for the benefit of the customers and in a geographically wider spread of branches in Funen. Sparekassen Faaborg expects to cover the increased costs in this connection partly by cutting costs because of continued focus on optimization of internal processes and by merging a few of the most closely located branches.
The need for loan impairment losses is expected to continue to decrease.
By the end of 2012 it is expected that the gap between deposits and loans and advances is almost closed.
CEO Claus Sejling, phone +45 63 61 18 14
