Company Announcement
No. 22/2008
6 August 2008
Executive Board:
Carsten Roth
Phone number: +45 59576000
Interim financial reportfor the period 1 January - 30 June 2008
Disclaimer:
This document is an unauthorised translation of the Danish original. In the
event of any inconsistencies the Danish version shall apply.
Contents
Page
H1 2008 in headlines 3
Management's review 4
Statement by Management on the interim report 9
Group
Income statement 1 January - 30 June 2008 10
Balance sheet at 30 June 2008 11
Statement of changes in equity 1 January - 30 June 2008 13
Cash flow statement 1 January - 30 June 2008 14
Notes 16
Parent
Income statement 1 January - 30 June 2008 25
Balance sheet at 30 June 2008 26
Statement of changes in equity 1 January - 30 June 2008 28
Notes 29
H1 2008 in headlines
Pre-tax profit of DKK 21.1m, DKK 1.8m above budget.Profit from actual bank
activities up by DKK 7.1m to DKK 19.7m.Net interest and fee income up from DKK
2.9m to DKK 70.6m.Positive translation/market value adjustments of DKK
1.4m.Impairment losses on loans and advances down to DKK 6.6m.Continuous
expected profit for 2008 between DKK 43m and DKK 48m.
Management's review
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Group financial highligthsDKK'm H12008H12007FY2007H1<0}2006 H12005 H12004*Net
interest and fee income70.667.7130.264.759.552.3Translation/market value
adjustments1.410.925.73.8-2.75.5Staff costs and administrative
expenses-48.0-45.7-93.2-45.1-40.2-33.2Impairment losses on loans, advances and
receivables, etc-6.6-8.1-13.0-5.60.8-4.8Profit before tax21.123.5
47.619.616.018.7Loans and advances2,0371,681 1,8651,3981,124848Equity306284
300258244233Total assets2.6742.262 2.5491.6151.6151.350Group financial ratios
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| Capital adequacy ratio, | 13.4 | 12.1 | 12.6 | 11.2 | 10.3 | 13.3 |
| % | | | | | | |
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| Core capital ratio, % | 7.8 | 7.7 | 7.3 | 8.6 | 10.7 | 13.8 |
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| Return on equity before | 7.0 | 8.4 | 16.5 | 7.7 | 6.6 | 8.3 |
| tax for the period | | | | | | |
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| Return on equity after | 5.7 | 6.7 | 12.9 | 5.7 | 4.6 | 6.1 |
| tax for the period | | | | | | |
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| Operating income over | 1.37 | 1.42 | 1.44 | 1.38 | 1.39 | 1.47 |
| operating expenses, DKK | | | | | | |
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| Interest rate risk, % | 1.7 | 1.2 | 1.1 | 1.5 | 1.8 | 1.9 |
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| Currency position, % | 0.0 | 10.5 | 41.1 | 11.0 | 7.0 | 9.3 |
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| Currency risk, % | 0.0 | 0.0 | 0.1 | 0.0 | 0.0 | 0.0 |
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| Loans in ratio to | 136. | 118.2 | 128.7 | 110.2 | 102.2 | 90.3 |
| deposits | 0 | | | | | |
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| Loans in ratio to | 6.7 | 5.9 | 6.2 | 5.4 | 4.5 | 3.5 |
| equity | | | | | | |
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| Loan growth for the | 9.2 | 10.0 | 22.1 | 13.2 | 32.6 | 19.4 |
| period, % | | | | | | |
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| Excess liquidity in | 41.7 | 15.7 | 35.2 | 15.1 | 35.6 | 94.8 |
| relation to statutory | | | | | | |
| requirements of | | | | | | |
| liquidity, % | | | | | | |
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| The sum of large | 152. | 105.1 | 134.0 | 103.7 | 57.3 | 55.1 |
| commitments, % | 6 | | | | | |
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| Impairment ratio for | 0.2 | 0.3 | 0.4 | 0.2 | 0.0 | 0.3 |
| the period, % | | | | | | |
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| Earnings per share for | 9.3 | 10.2 | 20.9 | 7.7 | 6.5 | 6.9 |
| the period, % | | | | | | |
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| Equity value per share, | 174 | 159 | 168 | 139 | 129 | 117 |
| DKK | | | | | | |
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| Price/earnings per | 11.8 | 28.3 | 11.8 | 33.0 | 31.7 | 19.7 |
| share for the period, | | | | | | |
| DKK | | | | | | |
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| Price/equity value per | 0.8 | 1.8 | 1.5 | 1.8 | 1.6 | 1.2 |
| share, DKK | | | | | | |
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{0>* Sammenligningstal for finansielle instrumenter, herunder udlån er ikke
tilpasset den i 2005 implementerede regnskabsbekendtgørelse for året 2004.
<}87{>* Comparative figures for financial instruments, including loans and
advances, have not been restated for 2004 to reflect the Executive Order on
Financial Reports for Credit Institutions and Investment Companies, etc (the
Executive Order on Financial Reports) implemented in 2005. <0}
Management's review
Development in activities and finances
The pre-tax profit for the period amounts to DKK 21.1m against DKK 23.5m for H1
2007. This performance is DKK 1.8m above budget. The profit from actual bank
activities has improved substantially as it has increased from DKK 12.6m to DKK
19.7m.
Considering this very turbulent period for interest rates and with daily reports
in the media about poor results in the financial sector, we are very satisfied
with this performance.
The profit is greatly influenced by the increase in the total business volume
measured by the sum of loans and advances, deposits and guarantees despite the
expiry of guarantees against loss provided towards Totalkredit of approx DKK
425m because of the new model of cooperation. The total business volume of the
Bank amounts to DKK 4,707m compared to DKK 4,626m at 30 June 2007.
The net interest and fee income has increased by DKK 2.9m and amounts to DKK
70.6m against DKK 67.7m in H1 2007. Both the interest income and the interest
expenses are influenced by the rising interest rate level in H1 2008. The
increase in net interest and fee income would have been significantly higher had
there been more stability and less interest rate turbulence on the market.
Translation/market value adjustments amount to DKK 1.4m compared to DKK 10.9m in
H1 2007. This amount includes a capital loss on bonds of DKK 4.7m and a capital
gain on shares of DKK 4.4m. The capital gain on shares is ia attributable to the
sale of the Bank's shares in Totalkredit worth DKK 9.8m. In addition, there been
translation adjustments etc of DKK 1.7m.
Staff costs and administrative expenses total DKK 48.0m compared to DKK 45.7m in
H1 2007, which is a satisfactious development in the light of the increase in
activities in connection with the establishment of a centre for remotely locted
customers.
Impairment losses on loans, advances and receivables etc come to DKK 6.6m
against DKK 8.1m in H1 2007. As a consequence of the new rules on impairment
losses on loans and advances that entered into force in 2005, it will be
necessary to make write-downs for impairment when events resulting in an
impairment loss have occurred. This means that the need to make write-downs for
impairment may vary greatly in the different accounting periods. The decline is
therefore not to be seen as a general tendency but rather as a reflection of the
current situation.
Loans and advances have risen by 21% from DKK 1.681m to DKK 2,037m. Deposits
have risen by 4% from DKK 1,446m to DKK 1,503m. Guarantees have decreased by 22%
from DKK 1,499m to DKK 1,167m. The decrease is due to the expiry of guarantees
provided towards Totalkredit in connection with the shift to the set-off model.
The Bank's equity has increased from DKK 284m to DKK 306m.
The Bank's capital adequacy ratio has risen from 12.1% to 13.4%. The capital
base net of deductions amounts to DKK 469.7m at 30 June 2008, including
subordinated debt of DKK 199.6m.
To hedge the Bank's loss on deposits, the Bank aim at taking up long-life loans.
The Bank's excess cover in relation to the legal requirement of liquidity of
41.7% has increased since year-end 2007.
Capital base, capital adequacy ratio and risk management
The Bank must have a capital base that supports our risk profile. As mentioned
in the annual report for 2007, the capital base and the capital adequacy ratio
were calculated in accordance with the new capital adequacy requirements of 1
January 2008. The necessary supporting IT systems have still not been fully
launched which has made it necessary to implement a number of manual processes
for purposes of the calculation. Management believes, however, that the rules
concerning the capital adequacy calculation have been complied with.
The Bank has chosen to determine the credit risk by using the standard method
and the operational risk by using the basic indicator method. The market risk is
determined in accordance with the standard method as done previously. The Bank
continues to believe that, at this point in time, there will be no need to apply
more advanced methods to calculate capital adequacy. The Bank, however, is still
working on introducing gradually more advanced models in its risk management.
The possibility of applying more advanced methods under the coming capital
adequacy requirements will be assessed on a continuous basis.
Related party transactions
Please see note 13 which contains a specification of all related party
transactions for the first half of 2008.
All related party transactions have been conducted on an arm's length basis.
Important events
The Bank has concluded an agreement with Nykredit concerning the final
determination of the price of the shares in Totalkredit. The agreement was
concluded in continuation of previous agreements. The agreement has resulted in
the Bank being able to recognise a profit of DKK 9.8m. The amount is accounted
for as market value adjustment under shares.
Outlook for all of 2008
In the annual report for 2007, the outlook for all of 2008 included a pre-tax
profit of DKK 43-48m. Our expectations from the profit for 2008 remain
unchanged, but there is still great uncertainty in the second half of the year
in relation to interest rates, market value adjustments of securities and
impairment losses on loans and advances, which is the reason why the expected
results may become significantly influenced by these factors.
Statement by Management on the interim report
We have today considered and approved the interim report of Skælskør Bankfor
the period 1 January to 30 June 2008.
The interim report has been prepared in accordance with IAS 34 as adopted by the
EU in respect of the consolidated interim financial statements and with the
Danish Financial Business Act in respect of the Parent's interim financial
statements as well as additional Danish disclosure requirements for interim
reports of listed financial companies.
We consider the applied accounting policies appropriate for the interim report
to provide a true and fair view of the Group's and the Parent's assets, equity
and liabilities and financial position at 30 June 2008 as well as of their
activities and the consolidated cash flows for H1 2008.
We believe that the management's review gives a fair presentation of the
development in the Bank's and the Group's activities and financial position as
well as a description of the most material risks and elements of uncertainty
that may affect the Bank and the Group, respectively.
The interim report has not been audited or reviewed by the Bank's auditors.
Skælskør, 6 August 2008
Carsten Roth
Chief Executive Officer
Peter Melchior Peter Nielsen Christian Boye
Chairman of the Vice-chairman
Supervisory Board
Henning Skovlund Freddy Hansen Per Vesterholm
Income statement 1 January - 30 June 2008
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| Group | Note | H1 | H1 | FY |
| | | 2008 | 2007 | 2007 |
| | | DKK'000 | DKK'000 | DKK'000 |
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| Interest income | 3 | 90,664 | 69,768 | 150,031 |
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| Interest expenses | 4 | -42,776 | -26,514 | -63,024 |
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| Net interest income | | 47,888 | 43,254 | 87,007 |
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| Dividends from shares, etc | | 1,541 | 1,343 | 1,510 |
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| Fees and commission income | | 23,346 | 25,403 | 46,314 |
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| Ceded fees and commission expenses | | -2,144 | -2,317 | -4,634 |
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| Net interest and fee income | | 70,631 | 67,683 | 130,197 |
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| Translation/market value | 6 | 1,368 | 10,855 | 25,706 |
| adjustments | | | | |
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| Other operating income | | 6,236 | 420 | 3,127 |
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| Staff costs and administrative | 7 | -47,978 | -45,743 | -93,167 |
| expenses | | | | |
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| Depreciation. amortisation and | | -2,541 | -1,668 | -3,016 |
| write-downs relating to intangible | | | | |
| assets and property, plant and | | | | |
| equipment | | | | |
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| Impairment losses on loans, | 8 | -6,607 | -8,073 | -12,965 |
| advances and receivables, etc. | | | | |
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| Profit/loss from investments in | | -57 | 0 | -2,256 |
| associates and subsidiaries | | | | |
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| Profit before tax | | 21,052 | 23,474 | 47,626 |
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| Tax on profit for the period | | -3,823 | -4,673 | -10,333 |
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| Profit for the period | | 17,229 | 18,801 | 37,293 |
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| Earnings per share (EPS) | | 9,8 | 10.5 | 20.9 |
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| Diluted earnings per share (DEPS) | | 9,8 | 10.5 | 20.9 |
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Balance sheet at 30 June 2008
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| Group | Note | 30.06. | 30.06. | 31.12. |
| | | 2008 | 2007 | 2007 |
| | | DKK'000 | DKK'000 | DKK'000 |
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| Cash and demand deposits with | | 14,684 | 28,374 | 125,535 |
| central banks | | | | |
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| Receivables from credit | | 122,903 | 139,659 | 64,227 |
| institutions and central banks | | | | |
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| Loans, advances and other | | 2,037,18 | 1,681,023 | 1,865,243 |
| receivables at amortised cost | | 3 | | |
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| Bonds at fair value | | 237,323 | 173,764 | 244,831 |
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| Shares, etc | | 147,349 | 134,846 | 140,047 |
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| Investments in associates | | 7,339 | 0 | 5,146 |
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| Total land and buildings | | 52,519 | 54,354 | 62,922 |
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| Investment property | | 18,239 | 19,926 | 25,121 |
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| Owner-occupied property | | 34,280 | 34,428 | 37,801 |
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| Other property, plant and | | 11,945 | 9,126 | 12,530 |
| equipment | | | | |
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| Current tax assets | | 3,976 | 0 | 1,946 |
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| Deferred tax assets | | 3,454 | 1,586 | 3,261 |
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| Other assets | | 33,724 | 39,430 | 23,188 |
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| Prepayments | | 1,168 | 179 | 378 |
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| Total assets | | 2,673,56 | 2,262,341 | 2,549,254 |
| | | 7 | | |
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Balance sheet at 30 June 2008
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| Group | Note | 30.06. | 30.06. | 31.12. |
| | | 2008 | 2007 | 2007 |
| | | DKK'000 | DKK'000 | DKK'000 |
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| Debt to credit institutions and | | 615,632 | 338,045 | 536,745 |
| central banks | | | | |
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| Deposits and other payables | | 1,502,77 | 1,445,584 | 1,474,450 |
| | | 2 | | |
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| Current tax payable | | 291 | 3,377 | 0 |
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| Other liabilities | | 43,218 | 38,178 | 34,495 |
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| Deferred income | | 2,857 | 1,018 | 1,215 |
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| Total payables | | 2,164,77 | 1,826,202 | 2,046,905 |
| | | 0 | | |
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| Provisions | | | | |
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| Provisions for pensions and | | 1,427 | 1,427 | 1,427 |
| similar liabilities | | | | |
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| Provisions for deferred tax | | 0 | 2 | 0 |
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| Provisions for loss on guarantees | | 786 | 760 | 161 |
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| Other provisions | | 1,365 | 713 | 1,205 |
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| Total provisions | | 3,578 | 2,902 | 2,793 |
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| Subordinated debt | | | | |
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| Subordinated debt | | 199,579 | 149,422 | 199,566 |
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| Total subordinated debt | | 199,579 | 149,422 | 199,566 |
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| Equity | | | | |
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| Share capital | | 37,000 | 37,000 | 37,000 |
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| Revaluation reserve | | 3,826 | 1,668 | 3,826 |
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| Retained earnings | | 264,814 | 245,147 | 259,164 |
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| Total equity | | 305,640 | 283,815 | 299,990 |
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| Total equity and liabilities | | 2,673,56 | 2,262,341 | 2,549,254 |
| | | 7 | | |
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Statement of changes in equity 1 January - 30 June 2008
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| Group | Share | Revalua | Proposed | Retain | Total |
| | capit | tion | dividend | ed | DKK'000 |
| | al | reserve | s DKK'000 | earnin | |
| | DKK'0 | DKK'000 | | gs | |
| | 00 | <0} | | DKK'00 | |
| | | | | 0 | |
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| Equity at 1 January 2007 | 37,00 | 1,471 | 7,400 | 231,57 | 277,443 |
| | 0 | | | 2 | |
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| Dividends paid | | | -7,400 | | -7,400 |
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| Dividends on own shares | | | | 188 | 188 |
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| Purchase and sale of own | | | | -5,673 | -5,673 |
| shares, net | | | | | |
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| Employee shares | | | | 259 | 259 |
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| Revaluation of property | | 197 | | | 197 |
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| Profit for the period | | | | 18,801 | 18,801 |
| transferred to equity | | | | | |
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| Equity at 30 June 2007 | 37,00 | 1,668 | 0 | 245,14 | 283,815 |
| | 0 | | | 7 | |
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| Purchase and sale of own | | | | -4,856 | -4,856 |
| shares, net | | | | | |
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| Employee shares | | | | 486 | 486 |
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| Revaluation of property | | 2,053 | | | 2,053 |
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| Reduction of the | | 105 | | -105 | 0 |
| corporate tax rate | | | | | |
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| Profit for the period | | | 7,400 | 11,092 | 18,492 |
| transferred to equity | | | | | |
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| Equity at 1 January 2008 | 37,00 | 3,826 | 7,400 | 251,76 | 299,990 |
| | 0 | | | 4 | |
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| Dividends paid | | | -7,400 | | -7,400 |
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| Dividends from own shares | | | | 495 | 495 |
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| Purchase and sale of own | | | | -5,419 | -5,419 |
| shares, net | | | | | |
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| Employee shares | | | | 745 | 745 |
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| Profit for the period | | | | 17,229 | 17,229 |
| transferred to equity | | | | | |
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| Equity at 30 June 2008 | 37,00 | 3,826 | 0 | 264,81 | 305,640 |
| | 0 | | | 4 | |
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Cash flow statement 1 January - 30 June 2008
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Group30.06.2008DKK'00030.06.2007DKK'00031.12. 2007DKK'000Profit for the period
before tax21,05223,47447,626Impairment losses on loans, advances and
receivables, etc6,6078,07312,965Paid, non-recognised
fees6,3425,9855,918Depreciation, amortisation and impairment losses relating to
intangible assets and property, plant and equipment2,5411,6683,016Gains/losses
on sale of intangible assets and property, plant and
equipment-4,455-112-3,329Value adjustment, investment property0330Unrealised
price adjustments of securities-15,511-8,952-14,103Unrealised price adjustments
of investments1,54402,256Non-paid interest19,71713,3376,658Other non-paid
operating items1,7851,489139Income taxes paid, net-6,207-2,037-14,252Changes in
loans and advances-184,889-167,182-356,227Changes in
deposits28,32271,465100,331Changes in credit institutions,
net90,09329,166216,660Changes in other assets and equity and
liabilities10,912-18,245-70,848Cash flows from operating
activities-22,147-41,838-63,190Acquisition, etc of intangible assets000Sale of
intangible assets000Acquisition, etc of property, plant and
equipment-6,115-11,359-25,406Sale of property, plant and
equipment6,3707,28513,985Fixed asset investments-3,513-2,394-7,652Fixed asset
divestments000Cash flows from investing activities-3,258-6,468-19,073Dividends
paid-7,400-7,400-7,400Subordinated debt1350,000100,000Purchase/sale of own
shares and related dividends-8,309-5,485-10,377Cash flows from financing
activities-15,69637,11582,223Increase/decrease in cash and cash
equivalents-41,101-11,191-40Cash and cash equivalents at beginning of
period179,184179,224179,224Cash and cash equivalents at end of
period138,083168,033179,184Cash and demand deposits with central
banks14,68428,374125,535Securities which mature in less than three
months4960628Receivables from credit institutions which fall due in less than
three months122,903139,65953,021Cash and cash equivalents at end of
period138,083168,033179,184Notes - Group
Notes
Accounting policies
Significant changes in accounting estimates
Interest income
Interest expenses
Segment revenue and profit before tax for H1 2008
Translation/market value adjustments
Staff costs and administrative expenses
Impairment losses on loans, advances and receivables, etc
Contingent assets and liabilities
Own shares
Tax on profit for the period
Dividends
Related parties
Consolidation
Events after the balance sheet date
Notes - Group
1. Accounting policies
The interim report is presented in accordance with IAS 34 and the Executive
Order on the application of International Financial Reporting Standards for
companies subject to the Danish Financial Business Act in respect of the
consolidated interim financial statements and the Danish Financial Business Act,
including the Executive Order on Financial Reports for Credit Institutions and
Investment Companies, etc in respect of the Parent's interim financial
statements, as well as additional Danish disclosure requirements for interim
reports of listed financial companies.
The accounting policies applied in this interim report are consistent with those
applied in the Bank's annual report for 2007. The annual report for 2007 was
prepared in accordance with the International Financial Reporting Standards
(IFRS) as adopted by the EU as well as additional Danish disclosure requirements
for listed financial companies. We refer to the annual report for 2007 for a
more detailed description of the applied accounting policies, including
definitions of the disclosed financial ratios which have been calculated in
accordance with the definitions in the Executive Order.
The following new or amended Standards and Interpretations have become effective
for the financial year 2008:
IFRIC 11, IFRS 2 - Group and Treasury Share Transactions
IFRIC 12, Service Concession Arrangements
IFRIC 14, IAS 19 - The limit on a Defined Benefit Asset, Minimum Funding
Requirements and Their Interaction.
The application of these new or amended Standards and Interpretations has not
resulted in any changes to the accounting policies applied to recognition and
measurement.
The interim report is presented in Danish kroner (DKK), which is the Parent's
functional currency.
2. Significant changes in accounting estimates
Several financial statement items cannot be measured reliably, but only be
estimated. Such estimates comprise assessments made on the basis of the latest
information available at the time of the financial reporting. It may be
necessary to change previous estimates due to changes in the matters on which
the estimates were based or due to new information, further experience or
subsequent events.
Unusual circumstances
The interim report for H1 2008 has not been affected by material exceptional
financial statement items.
Changes in accounting estimates
The accounting estimates made by the Bank in the annual report for 2007 have not
been changed in the interim report for H1 2008.
Notes - Group
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| | H1 | H1 | FY |
| | 2008 | 2007 | 2007 |
| | DKK'000 | DKK'000 | DKK'000 |
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| 3. Interest income | | | |
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| Receivables from credit institutions and | 1,217 | 2,678 | 5,298 |
| central banks | | | |
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| Loans, advances and other receivables | 82,858 | 62,170 | 134,243 |
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| Bonds | 5,457 | 4,365 | 9,010 |
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| Total derivative financial instruments | 749 | 0 | 241 |
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| Of this | | | |
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| Interest rate contracts | 208 | 0 | 144 |
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| Foreign exchange contracts | 541 | 0 | 97 |
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| Other interest income | 383 | 555 | 1,239 |
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| Total interest income | 90,664 | 69,768 | 150,031 |
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| The Group has no income from genuine | | | |
| purchase and sell-back transactions. | | | |
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| 4. Interest expenses | | | |
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| Credit institutions and central banks | 11,303 | 5,428 | 14,767 |
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| Deposits and other payables | 25,330 | 17,994 | 40,185 |
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| Subordinated debt | 6,109 | 3,060 | 7,632 |
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| Other interest expenses | 34 | 32 | 440 |
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| Total interest expenses | 42,776 | 26,514 | 63,024 |
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| The Group has no expenses for genuine | | | |
| purchase and sell-back transactions. | | | |
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| 5. Segment revenue and profit | Branches | Finance/ | Staff | |
| before tax | Denmark | abroad | functions | Total |
| for H1 2008 | DKK'000 | DKK'000 | /other | DKK'000 |
| | | | DKK'000 | |
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| Interest and fee income, net | 65,395 | 4,150 | 1,086 | 70,631 |
--------------------------------------------------------------------------------
| Profit/loss before tax | 13,923 | -9,357 | 16,486 | 21,052 |
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| Segment revenue and profit | | | | |
| before tax for H1 2007 | | | | |
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| Interest and fee income, net | 60,801 | 5,463 | 1,419 | 67,683 |
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| Profit before tax | 17,853 | 5,198 | 423 | 23,474 |
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Notes - Group
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| | H1 | H1 | FY |
| | 2008 | 2007 | 2007 |
| | DKK'000 | DKK'000 | DKK'000 |
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| 6. Translation/market value adjustments | | | |
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| Bonds | -4,801 | -3,335 | -2,776 |
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| Shares | -5,343 | 11,717 | 26,824 |
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| Investment property | 0 | -33 | 0 |
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| Total currency, interest, etc | 743 | 1,461 | 1,537 |
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| Derivative financial instruments | 779 | 1,045 | 316 |
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| Other loans, advances and receivables at | 200 | 0 | 0 |
| fair value | | | |
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| Other assets | 9,790 | 0 | -195 |
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| Total translation/market value | 1,368 | 10,855 | 25,706 |
| adjustments | | | |
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| Skælskør Bank has no collective pool | | | |
| schemes. | | | |
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| 7. Staff costs and administrative | | | |
| expenses | | | |
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| Salaries and remuneration to the | | | |
| Supervisory and Executive Boards as well | | | |
| as the Committee of Representatives: | | | |
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| Executive Board | 885 | 665 | 1,602 |
--------------------------------------------------------------------------------
| - Pension, etc to the Executive Board | 256 | 179 | 428 |
--------------------------------------------------------------------------------
| - Supervisory Board | 286 | 290 | 595 |
--------------------------------------------------------------------------------
| - Committee of Representatives | 0 | 0 | 125 |
--------------------------------------------------------------------------------
| Staff costs | | | |
--------------------------------------------------------------------------------
| - Wages and salaries | 23,139 | 20,577 | 43,246 |
--------------------------------------------------------------------------------
| - Pensions | 2,670 | 2,478 | 5,187 |
--------------------------------------------------------------------------------
| - Social security costs | 2,540 | 2,062 | 4,513 |
--------------------------------------------------------------------------------
| Other administrative expenses | 18,202 | 19,492 | 37,471 |
--------------------------------------------------------------------------------
| Total staff costs and administrative | 47,978 | 45,743 | 93,167 |
| expenses | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of employees converted | | | |
| into full-time employees 114.6 (107.0 | | | |
| for H1 2007). | | | |
--------------------------------------------------------------------------------
| The Bank has established a bonus scheme | | | |
| for all of its employees, which is paid | | | |
| in shares. | | | |
--------------------------------------------------------------------------------
Notes - Group
--------------------------------------------------------------------------------
| | {0>Indivi | Group-bas | Total |
| | -duelle | ed | DKK'000 |
| | nedskriv- | impairme | |
| | ninger | nt losses | |
| | t.kr.<}0{ | DKK'000 | |
| | >Indivi | | |
| | - | | |
| | dual | | |
| | impairme | | |
| | nt losses | | |
| | DKK'000<0 | | |
| | } | | |
--------------------------------------------------------------------------------
| 8. Impairment losses on loans, advances | | | |
| and receivables, etc. | | | |
--------------------------------------------------------------------------------
| H1 2008 | | | |
--------------------------------------------------------------------------------
| Impairment losses at 1 January | 31,798 | 723 | 32,521 |
--------------------------------------------------------------------------------
| Impairment losses for the period | 11,703 | 1,607 | 13,310 |
--------------------------------------------------------------------------------
| Reversal of prior years' impairment | -6,091 | 0 | -6,091 |
| losses | | | |
--------------------------------------------------------------------------------
| Write-off | -814 | 0 | -814 |
--------------------------------------------------------------------------------
| Impairment losses at 30 June | 36,596 | 2,330 | 38,926 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| H1 2007 | | | |
--------------------------------------------------------------------------------
| Impairment losses at 1 January | 22,916 | 1,439 | 24,355 |
--------------------------------------------------------------------------------
| Impairment losses for the period | 10,538 | 0 | 10,538 |
--------------------------------------------------------------------------------
| Reversal of prior years' impairment | -1,931 | -222 | -2,153 |
| losses | | | |
--------------------------------------------------------------------------------
| Other adjustments | -5,701 | 0 | -5,701 |
--------------------------------------------------------------------------------
| Impairment losses at 30 June | 25,822 | 1,217 | 27,039 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FY 2007 | | | |
--------------------------------------------------------------------------------
| Impairment losses at 1 January | 22,916 | 1,439 | 24,355 |
--------------------------------------------------------------------------------
| Impairment losses for the year | 17,658 | 504 | 18,162 |
--------------------------------------------------------------------------------
| Reversal of prior years' impairment | -2,532 | -310 | -2,842 |
| losses | | | |
--------------------------------------------------------------------------------
| Write-off | -6,244 | 0 | -6,244 |
--------------------------------------------------------------------------------
| Other adjustments | 0 | -910 | -910 |
--------------------------------------------------------------------------------
| Impairment losses at 31 December | 31,798 | 723 | 32,521 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notes - Group
--------------------------------------------------------------------------------
| | H1 | H1 | FY |
| | 2008 | 2007 | 2007 |
| | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| 9. Contingent assets and liabilities | | | |
--------------------------------------------------------------------------------
| Financing guarantees | 1,078,108 | 1,038,514 | 1,165,294 |
--------------------------------------------------------------------------------
| Other guarantees | 88,476 | 460,599 | 472,862 |
--------------------------------------------------------------------------------
| Total guarantees, etc | 1,166,584 | 1,499,113 | 1,638,156 |
--------------------------------------------------------------------------------
| Other contingent liabilities | | | |
--------------------------------------------------------------------------------
| Irrevocable credit guarantees | 0 | 0 | 11,063 |
--------------------------------------------------------------------------------
| Other obligations | 1,422 | 46,505 | 1,505 |
--------------------------------------------------------------------------------
| Total other liabilities | 1,422 | 46,505 | 12,568 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Number | Nominal value | Share of own shares |
| | | | of the share |
| | | | capital |
--------------------------------------------------------------------------------
| | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 |
| | Number | Numbe | DKK'000 | DKK'000 | | |
| | | r | | | % | % |
--------------------------------------------------------------------------------
| 10. Own shares | | | | | | |
--------------------------------------------------------------------------------
| Own shares at | 85,670 | 47,13 | 1,713 | 943 | 4,6 | 2.5 |
| 1 January | | 1 | | | | |
--------------------------------------------------------------------------------
| Purchase | 98,373 | 63,05 | 1,967 | 1,261 | 5,3 | 3.4 |
| | | 6 | | | | |
--------------------------------------------------------------------------------
| Sale | 86,187 | 43,15 | 1,723 | 863 | 4,6 | 2.3 |
| | | 9 | | | | |
--------------------------------------------------------------------------------
| Own shares at | 97,856 | 67,02 | 1,957 | 1,341 | 5.3 | 3.6 |
| 30 June | | 8 | | | | |
--------------------------------------------------------------------------------
11. Tax on profit for the period
At 1 January 2008, the deferred tax liability amounted to DKK 3,261k, using a
corporate tax rate of 25%. The tax expense recognised in the income statement
for the interim period has therefore been calculated on the basis of the pre-tax
profit and an estimated effective tax rate for the Group as a whole for 2008.
The estimated weighted average effective tax rate for 2008 is 21,44% (19,91% at
30 June 2007 and 21.7% for all of 2007).
12. Dividends
On 16 March 2008, DKK 7,400k in ordinary dividends were paid to the
shareholders, corresponding to DKK 4 per share (2007: DKK 4 per share).
13. Related parties
The Group's related parties include the Bank's Executive and Supervisory Boards
and their persons connected.
In addition, related parties include the subsidiaries Nor Fjor Finans A/S,
Hovedgaden 50, Dalmose A/S, as well as the associates Selskabet af 23. april 200
A/S and H & N Invest A/S. Related parties also include Dansk
ErhvervsFinansiering A/S and the course provider, Hjalet A/S, in which the CEO
of the Bank is Chairman of the Supervisory Board.
Related party transactions in the interim period
Members of the Parent's Executive and Supervisory Boards as well as other
executives of the Group have been remunerated as follows during the interim
period:
--------------------------------------------------------------------------------
| | H1 | H1 | FY |
| | 2008 | 2007 | 2007 |
| | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| Fees for the Supervisory Board | 286 | 290 | 595 |
--------------------------------------------------------------------------------
| Wages and salaries | 885 | 665 | 1,602 |
--------------------------------------------------------------------------------
| Pension | 256 | 179 | 428 |
--------------------------------------------------------------------------------
| | 1,427 | 1,134 | 2,625 |
--------------------------------------------------------------------------------
In addition to management remuneration, the following transactions with related
parties were performed during the period:
--------------------------------------------------------------------------------
| | H1 | H1 | FY |
| | 2008 | 2007 | 2007 |
| | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| Administration | 7 | 15 | 38 |
--------------------------------------------------------------------------------
| The Bank's deposits with subsidiaries | 12,258 | 5,766 | 4,426 |
--------------------------------------------------------------------------------
| The Bank's deposits with associates | 1,487 | 272 | 3,177 |
--------------------------------------------------------------------------------
| The Bank's loans and advances to subsidiaries | 19,778 | 8,586 | 19,270 |
--------------------------------------------------------------------------------
| The Bank's loans and advances to associates | 7,141 | 10,756 | 15,764 |
--------------------------------------------------------------------------------
No security or guarantees have been provided for outstanding balances at the
balance sheet date. Receivables and payables will be settled by cash payment.
14. Consolidation
No shareholder holds more than 5% of the Company's share capital at 30 June
2008.
15. Events after the balance sheet date
No events have occurred after the balance sheet date which materially affect the
evaluation of this interim report.
Income statement 1 January - 30 June 2008
--------------------------------------------------------------------------------
| Parent | Note | H1 | H1 | FY |
| | | 2008 | 2007 | 2007 |
| | | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| Interest income | 1 | 91,021 | 69,823 | 150,327 |
--------------------------------------------------------------------------------
| Interest expenses | 2 | -42,986 | -26,623 | -63,196 |
--------------------------------------------------------------------------------
| Net interest income | | 48,035 | 43,200 | 87,131 |
--------------------------------------------------------------------------------
| Dividends from shares, etc | | 1,541 | 1,343 | 1,510 |
--------------------------------------------------------------------------------
| Fees and commission income | | 23,353 | 25,418 | 46,350 |
--------------------------------------------------------------------------------
| Ceded fees and commission expenses | | -1,896 | -2,070 | -4,139 |
--------------------------------------------------------------------------------
| Net interest and fee income | | 71,033 | 67,891 | 130,852 |
--------------------------------------------------------------------------------
| Translation/market value adjustments | 3 | -699 | 8,607 | 21,959 |
--------------------------------------------------------------------------------
| Other operating income | | -12 | 137 | 373 |
--------------------------------------------------------------------------------
| Staff costs and administrative | 4 | -47,900 | -45,890 | -93,510 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation, amortisation and | | -2,541 | -1,659 | -3,976 |
| impairment losses relating to | | | | |
| intangible assets and property, | | | | |
| plant and equipment | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Impairment losses on loans, advances | | -6,607 | -8,073 | -12,965 |
| and receivables, etc | | | | |
--------------------------------------------------------------------------------
| Profit/loss from investments in | 5 | 5,871 | 1,846 | 4,329 |
| associates and subsidiaries | | | | |
--------------------------------------------------------------------------------
| Profit before tax | | 19,145 | 22,859 | 47,062 |
--------------------------------------------------------------------------------
| Tax on profit for the period | | -1,916 | -4,058 | -9,729 |
--------------------------------------------------------------------------------
| Profit for the period | | 17,229 | 18,801 | 37,333 |
--------------------------------------------------------------------------------
| Earnings per share (EPS) | | 9,8 | 10.5 | 20.9 |
--------------------------------------------------------------------------------
| Diluted earnings per share (DEPS) | | 9,8 | 10.5 | 20.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Balance sheet at 30 June 2008
--------------------------------------------------------------------------------
| Parent | Note | 30.6. | 30.6. | 31.12. |
| | | 2008 | 2007 | 2007 |
| | | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| Cash and demand deposits with | | 14,684 | 28,374 | 125,535 |
| central banks | | | | |
--------------------------------------------------------------------------------
| Receivables from credit | | 122,903 | 139,659 | 64,227 |
| institutions and central banks | | | | |
--------------------------------------------------------------------------------
| Loans, advances and other | | 2,055,81 | 1,688,444 | 1,883,356 |
| receivables at amortised cost | | 2 | | |
--------------------------------------------------------------------------------
| Bonds at fair value | | 237,323 | 173,764 | 244,831 |
--------------------------------------------------------------------------------
| Shares, etc | | 133,575 | 124,350 | 130,195 |
--------------------------------------------------------------------------------
| Investments in associates | | 2,193 | 0 | 38,564 |
--------------------------------------------------------------------------------
| Investments in subsidiaries | | 44,492 | 36,080 | 0 |
--------------------------------------------------------------------------------
| Intangible assets | | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Total land and buildings | | 27,351 | 26,241 | 27,782 |
--------------------------------------------------------------------------------
| Investment property | | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Owner-occupied property | | 27,351 | 26,241 | 27,782 |
--------------------------------------------------------------------------------
| Other property, plant and | | 11,945 | 9,126 | 12,530 |
| equipment | | | | |
--------------------------------------------------------------------------------
| Current tax assets | | 6,207 | 0 | 2,561 |
--------------------------------------------------------------------------------
| Deferred tax assets | | 3,462 | 1,586 | 3,269 |
--------------------------------------------------------------------------------
| Other assets | | 24,924 | 37,485 | 20,000 |
--------------------------------------------------------------------------------
| Prepayments | | 270 | 179 | 378 |
--------------------------------------------------------------------------------
| Total assets | | 2,685,14 | 2,265,288 | 2,553,228 |
| | | 1 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Balance sheet at 30 June 2008
--------------------------------------------------------------------------------
| Parent | Note | 30.6. | 30.6. | 31.12. |
| | | 2008 | 2007 | 2007 |
| | | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| Debt to credit institutions and | | 615,632 | 338,045 | 536,745 |
| central banks | | | | |
--------------------------------------------------------------------------------
| Deposits and other payables | | 1,515,03 | 1,451,350 | 1,478,876 |
| | | 0 | | |
--------------------------------------------------------------------------------
| Current tax payable | | 0 | 1,052 | 0 |
--------------------------------------------------------------------------------
| Other liabilities | | 42,826 | 37,686 | 34,001 |
--------------------------------------------------------------------------------
| Deferred income | | 2,857 | 1,018 | 1,217 |
--------------------------------------------------------------------------------
| Total payables | | 2,176,34 | 1,829,151 | 2,050,839 |
| | | 5 | | |
--------------------------------------------------------------------------------
| Provisions | | | | |
--------------------------------------------------------------------------------
| Provision for pensions and similar | | 1,427 | 1,427 | 1,427 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Provisions for loss on guarantees | | 786 | 760 | 161 |
--------------------------------------------------------------------------------
| Other provisions | | 1,365 | 713 | 1,205 |
--------------------------------------------------------------------------------
| Total provisions | | 3,578 | 2,900 | 2,793 |
--------------------------------------------------------------------------------
| Subordinated debt | | | | |
--------------------------------------------------------------------------------
| Subordinated debt | | 199,579 | 149,422 | 199,566 |
--------------------------------------------------------------------------------
| Total subordinated debt | | 199,579 | 149,422 | 199,566 |
--------------------------------------------------------------------------------
| Equity | | | | |
--------------------------------------------------------------------------------
| Share capital | | 37,000 | 37,000 | 37,000 |
--------------------------------------------------------------------------------
| Revaluation reserve | | 3,826 | 1,668 | 3,826 |
--------------------------------------------------------------------------------
| Statutory reserves | | 3,564 | 0 | 3,564 |
--------------------------------------------------------------------------------
| Retained earnings | | 261,249 | 245,147 | 255,640 |
--------------------------------------------------------------------------------
| Total equity | | 305,639 | 283,815 | 300,030 |
--------------------------------------------------------------------------------
| Total equity and liabilities | | 2,685,14 | 2,265,288 | 2,553,228 |
| | | 1 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Statement of changes in equity 1 January - 30 June 2008
--------------------------------------------------------------------------------
| Parent | Share | Revalu | {0>Lovp | Propose | Retaine | Total |
| | capita | ation | ligtige | d | d | DKK'000 |
| | l | reserv | reserve | divide | earning | |
| | DKK'00 | e | r<}100{ | nds DKK | s DKK | |
| | 0 | DKK | >Statut | ‘000 | ‘000 | |
| | | ‘000<0 | ory | | | |
| | | } | reserve | | | |
| | | | s | | | |
| | | | DKK | | | |
| | | | ‘000<0} | | | |
--------------------------------------------------------------------------------
| Equity at 1 | 37,000 | 1,471 | | 7,400 | 231,572 | 277,443 |
| January 2007 | | | | | | |
--------------------------------------------------------------------------------
| Dividends paid | | | | -7,400 | | -7,400 |
--------------------------------------------------------------------------------
| Dividends on own | | | | | 188 | 188 |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Purchase and sale | | | | | -5,673 | -5,673 |
| of own shares, net | | | | | | |
--------------------------------------------------------------------------------
| Employee shares | | | | | 259 | 259 |
--------------------------------------------------------------------------------
| Revaluation of | | 197 | | | | 197 |
| property | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | 18,801 | 18,801 |
| period transferred | | | | | | |
| to equity | | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 June | 37,000 | 1,668 | 0 | 0 | 245,147 | 283,815 |
| 2007 | | | | | | |
--------------------------------------------------------------------------------
| Purchase and sale | | | | | -4,856 | -4,856 |
| of own shares, net | | | | | | |
--------------------------------------------------------------------------------
| Employee shares | | | | | 486 | 486 |
--------------------------------------------------------------------------------
| Revaluation of | | 2,053 | | | | 2,053 |
| property | | | | | | |
--------------------------------------------------------------------------------
| Reduction of the | | 105 | | | -105 | 0 |
| corporate tax rate | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | 3,564 | 7,400 | 7,568 | 18,532 |
| period transferred | | | | | | |
| to equity | | | | | | |
--------------------------------------------------------------------------------
| Equity at 1 | 37,000 | 3,826 | 3,564 | 7,400 | 248,240 | 300,030 |
| January 2008 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Dividends paid | | | | -7,400 | | -7,400 |
--------------------------------------------------------------------------------
| Dividends on own | | | | | 495 | 495 |
| shares | | | | | | |
--------------------------------------------------------------------------------
| Acquisition and | | | | | -5,460 | -5,460 |
| sale of own | | | | | | |
| shares, net | | | | | | |
--------------------------------------------------------------------------------
| Employee shares | | | | | 745 | 745 |
--------------------------------------------------------------------------------
| Profit for the | | | | | 17,229 | 17,229 |
| period transferred | | | | | | |
| to equity | | | | | | |
--------------------------------------------------------------------------------
| Equity at 30 June | 37,000 | 3,826 | 3,564 | 0 | 261,249 | 305,639 |
| 2008 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notes - Parent
Notes
Interest income
Interest expenses
Translation/market value adjustments
Staff costs and administrative expenses
Profit/loss from investments in associates and subsidiaries
Impairment losses on loans, advances and receivables, etc
Contingent assets and liabilities
Own shares
Notes - Parent
--------------------------------------------------------------------------------
| | H1 | H1 | FY |
| | 2008 | 2007 | 2007 |
| | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| 1. Interest income | | | |
--------------------------------------------------------------------------------
| Receivables from credit institutions and | 1,217 | 2,678 | 5,298 |
| central banks | | | |
--------------------------------------------------------------------------------
| Loans, advances and other receivables | 83,215 | 62,225 | 134,539 |
--------------------------------------------------------------------------------
| Bonds | 5,457 | 4,365 | 9,010 |
--------------------------------------------------------------------------------
| Total derivative financial instruments | 749 | 0 | 241 |
--------------------------------------------------------------------------------
| Of this | | | |
--------------------------------------------------------------------------------
| Interest rate contracts | 208 | 0 | 144 |
--------------------------------------------------------------------------------
| Foreign exchange contracts | 541 | 0 | 97 |
--------------------------------------------------------------------------------
| Other interest income | 383 | 555 | 1,239 |
--------------------------------------------------------------------------------
| Total interest income | 91,021 | 69,823 | 150,327 |
--------------------------------------------------------------------------------
| The Bank has no income from genuine | | | |
| purchase and sell-back transactions. | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2. Interest expenses | | | |
--------------------------------------------------------------------------------
| Credit institutions and central banks | 11,303 | 5,428 | 14,767 |
--------------------------------------------------------------------------------
| Deposits and other payables | 25,540 | 18,103 | 40,357 |
--------------------------------------------------------------------------------
| Subordinated debt | 6,109 | 3,060 | 7,632 |
--------------------------------------------------------------------------------
| Other interest expenses | 34 | 32 | 440 |
--------------------------------------------------------------------------------
| Total interest expenses | 42,986 | 26,623 | 63,196 |
--------------------------------------------------------------------------------
| The Bank has no expenses for genuine | | | |
| purchase and sell-back transactions. | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3. Translation/market value adjustments | | | |
--------------------------------------------------------------------------------
| Bonds | -4,801 | -3,335 | -2,776 |
--------------------------------------------------------------------------------
| Shares | -7,210 | 9,469 | 22,877 |
--------------------------------------------------------------------------------
| Investment property | 0 | -33 | 0 |
--------------------------------------------------------------------------------
| Total currency, interest, etc | 743 | 1,461 | 1,537 |
--------------------------------------------------------------------------------
| Derivative financial instruments | 779 | 1,045 | 316 |
--------------------------------------------------------------------------------
| Other assets | 9,790 | 0 | 5 |
--------------------------------------------------------------------------------
| Total translation/market value | -699 | 8,607 | 21,959 |
| adjustments | | | |
--------------------------------------------------------------------------------
| Skælskør Bank has no collective pool | | | |
| schemes. | | | |
--------------------------------------------------------------------------------
Notes - Parent
--------------------------------------------------------------------------------
| | H1 | H1 | FY |
| | 2008 | 2007 | 2007 |
| | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4. Staff costs and administrative | | | |
| expenses | | | |
--------------------------------------------------------------------------------
| Salaries and remuneration to the | | | |
| Supervisory and Executive Boards as | | | |
| well as salaries to the Committee of | | | |
| Representatives: | | | |
--------------------------------------------------------------------------------
| Executive Board | 885 | 735 | 1,602 |
--------------------------------------------------------------------------------
| - Pension, etc to the Executive Board | 256 | 179 | 428 |
--------------------------------------------------------------------------------
| - Supervisory Board | 286 | 290 | 595 |
--------------------------------------------------------------------------------
| - Committee of Representatives | 0 | 0 | 125 |
--------------------------------------------------------------------------------
| Staff costs | | | |
--------------------------------------------------------------------------------
| - Wages and salaries | 23,139 | 20,537 | 43,274 |
--------------------------------------------------------------------------------
| - Pensions | 2,670 | 2,478 | 5,178 |
--------------------------------------------------------------------------------
| - Social security costs | 2,540 | 2,062 | 4,513 |
--------------------------------------------------------------------------------
| Other administrative expenses | 18,124 | 19,609 | 37,795 |
--------------------------------------------------------------------------------
| Total staff costs and administrative | 47,900 | 45,890 | 93,510 |
| expenses | | | |
--------------------------------------------------------------------------------
| Average number of employees converted | | | |
| into full-time employees 114.6 (107.0 | | | |
| for H1 2007). | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5. Profit/loss from investments in | | | |
| associates and subsidiaries | | | |
--------------------------------------------------------------------------------
| Loss from investments in associates | -57 | 0 | 0 |
--------------------------------------------------------------------------------
| Profit from investments in | 5,928 | 1,846 | 4,329 |
| subsidiaries | | | |
--------------------------------------------------------------------------------
| Total profit/loss from investments in | 5,871 | 1,846 | 4,329 |
| associates and subsidiaries | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Subsidiaries and associates comprise: |
--------------------------------------------------------------------------------
| Name | Domici | Nature and scope | Owner | Equity | Profit |
| | le | of transactions | ship | 31.12. | 2007 |
| | | | % | 2007 | |
--------------------------------------------------------------------------------
| Nor Fjor Finans | Skælsk | Purchase, sale | 100 | 22,874 | 5,530 |
| A/S | ør | and | | | |
| | | administration of | | | |
| | | securities and | | | |
| | | real estate | | | |
--------------------------------------------------------------------------------
| Hovedgaden 50, | Skælsk | Renting of | 100 | 14,375 | 1,199 |
| Dalmose A/S | ør | property | | | |
--------------------------------------------------------------------------------
| H & N Invest A/S | Copenh | Purchase and sale | 50 | 10,293 | 294 |
| | agen | of debt | | | |
| | | instruments | | | |
--------------------------------------------------------------------------------
| Selskabet af 23. | Sorø | | 49 | *) | |
| april 2008 A/S | | | | | |
--------------------------------------------------------------------------------
| *) Figures are not disclosed as they are not yet available. |
--------------------------------------------------------------------------------
Notes - Parent
--------------------------------------------------------------------------------
| | Individu | Group-bas | Total |
| | al | ed | DKK'000 |
| | impairme | impairme | |
| | nt losses | nt losses | |
| | DKK'000 | DKK'000 | |
--------------------------------------------------------------------------------
| 6. Impairment losses on loans, advances | | | |
| and receivables, etc | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1. H1 2008 | | | |
--------------------------------------------------------------------------------
| Impairment losses at 1 January 2008 | 31,798 | 723 | 32,521 |
--------------------------------------------------------------------------------
| Impairment losses for the period | 11,703 | 1,607 | 13,310 |
--------------------------------------------------------------------------------
| Reversal of prior years' impairment | -6,091 | 0 | -6,091 |
| losses | | | |
--------------------------------------------------------------------------------
| Write-off | -814 | 0 | -814 |
--------------------------------------------------------------------------------
| Impairment losses at 30 June | 36,596 | 2,330 | 38,926 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| H1 2007 | | | |
--------------------------------------------------------------------------------
| Impairment losses at 1 January | 22,916 | 1,439 | 24,355 |
--------------------------------------------------------------------------------
| Impairment losses for the period | 10,538 | 0 | 10,538 |
--------------------------------------------------------------------------------
| Reversal of prior years' impairment | -1,931 | -222 | -2,153 |
| losses | | | |
--------------------------------------------------------------------------------
| Other adjustments | -5,701 | 0 | -5,701 |
--------------------------------------------------------------------------------
| Impairment losses at 30 June | 25,822 | 1,217 | 27,039 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FY 2007 | | | |
--------------------------------------------------------------------------------
| Impairment losses at 1 January | 22,916 | 1,439 | 24,355 |
--------------------------------------------------------------------------------
| Impairment losses for the year | 17,658 | 504 | 18,162 |
--------------------------------------------------------------------------------
| Reversal of prior years' impairment | -2,532 | -310 | -2,842 |
| losses | | | |
--------------------------------------------------------------------------------
| Write-off | -6,244 | 0 | -6,244 |
--------------------------------------------------------------------------------
| Other adjustments | 0 | -910 | -910 |
--------------------------------------------------------------------------------
| Impairment losses at 31 December | 31,798 | 723 | 32,521 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notes - Parent
--------------------------------------------------------------------------------
| | H1 | H1 | FY |
| | 2008 | 2007 | 2007 |
| | DKK'000 | DKK'000 | DKK'000 |
--------------------------------------------------------------------------------
| 7. Contingent assets and liabilities | | | |
--------------------------------------------------------------------------------
| Financing guarantees | 1,078,10 | 1,038,514 | 1,165,294 |
| | 8 | | |
--------------------------------------------------------------------------------
| Other guarantees | 88,476 | 460,599 | 472,862 |
--------------------------------------------------------------------------------
| Total guarantees, etc | 1,166,58 | 1,499,113 | 1,638,156 |
| | 4 | | |
--------------------------------------------------------------------------------
| Other contingent liabilities | | | |
--------------------------------------------------------------------------------
| Irrevocable credit guarantees | 0 | 0 | 11,063 |
--------------------------------------------------------------------------------
| Other obligations | 1,422 | 46,505 | 1,505 |
--------------------------------------------------------------------------------
| Total other liabilities | 1,422 | 46,505 | 12,568 |
--------------------------------------------------------------------------------
| | Number | Nominal value | Share of own shares |
| | | | of the share capital |
--------------------------------------------------------------------------------
| | 2008 | 2007 | 2008 | 2007 | 2008 | 2007 |
| | Number | Numbe | DKK'000 | DKK'000 | % | % |
| | | r | | | | |
--------------------------------------------------------------------------------
| 8. Own shares | | | | | | |
--------------------------------------------------------------------------------
| Number of own | 85,670 | 47,13 | 1,713 | 943 | 4,6 | 2.5 |
| shares at 1 | | 1 | | | | |
| January | | | | | | |
--------------------------------------------------------------------------------
| Purchase | 98,373 | 63,05 | 1,967 | 1,261 | 5,3 | 3.4 |
| | | 6 | | | | |
--------------------------------------------------------------------------------
| Sale | 86,187 | 43,15 | 1,723 | 863 | 4,6 | 2.3 |
| | | 9 | | | | |
--------------------------------------------------------------------------------
| Number of own | 97,856 | 67,02 | 1,957 | 1,341 | 5.3 | 3.6 |
| shares at 30 | | 8 | | | | |
| June | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
