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Stock Exchange Announcement No 01/09
Group Executive Management
Peberlyk 4 • PO Box 1038
DK-6200 Aabenraa
Tel +45 74 36 36 36
Telefax +45 74 36 35 36
sydbank.com
SWIFT SYBKDK22
Sydbank A/S
CVR No DK 12626509, Aabenraa
21 January 2009
Dear Sirs
Sydbank's acquisition of bankTrelleborg
On 26 February 2008 the 2007 Annual Report of bankTrelleborg was re-leased.
Stock Exchange Announcement No 12/08 - issued on 16 July 2008 - provided
corrective/supplementary disclosures concerning the 2007 An-nual Report of
bankTrelleborg as ordered by the Danish Securities Council. In continuation of
this order the additional disclosures shall be provided at the end of note 24
as follows:
”Fair value determination of loans and advances is based on how a quali-fied,
willing and independent market participant would measure the loans and
advances. The determination includes a number of accounting esti-mates made by
the management of Sydbank. By their nature accounting estimates involve
uncertainty. Uncertainty about the fair value determina-tion has increased as a
consequence of the risk profile and illiquidity of the lending portfolio.”
Furthermore new management statement and auditors' report have been issued.
For the corrective/supplementary disclosures about the 2007 Annual Re-port of
bankTrelleborg, see pp 2-17.
Sydbank remains of the opinion that the value adjustments made were ne-cessary
and sufficient.
Yours faithfully
Mogens Sandbæk Jakob Aakjær
CFO Head of Executive Secretariat
Enquiries concerning this company announcement to:
Mogens Sandbæk, CFO, tel +45 74 36 24 00
Corrective/supplementary disclosures
bankTrelleborg A/S
2007 Annual Report
Contents
Introductory remarks 3
Capital and capital management 4
Financial risks 7
Note 24 Fair value of financial instruments in the group 13
Management statement 14
Auditors' report 15
Introductory remarks
The Danish Securities Council has ordered Sydbank A/S to prepare
correc-tive/supplementary disclosures concerning the 2007 Annual Report of
bankTrelleborg A/S.
The Danish Securities Council has ordered Sydbank A/S in its
correc-tive/supplementary disclosures concerning the 2007 Annual Report (the
fi-nancial statements of the parent as well as the consolidated financial
statements) to incorporate the following:
• a total account of the disclosures of financial risks and capital, see IFRS 7
and IAS 1, incorporating the non-disclosed information in the 2007 Annual
Report in relation to IFRS 7, paragraphs 24, 31, 36 and 37 as well as IAS 1,
notes 124 A and B
• a new note 24 to the consolidated financial statements concerning the fair
value of financial instruments where the fair value of loans and advances at
amortised cost has been disclosed in compliance with the provisions.
The Danish Securities Council has ordered Sydbank A/S to subject the
measurement at amortised cost of the relevant exposures according to the 2007
Annual Report to a new collective assessment and to incorporate in the
corrective/supplementary disclosures any changes to the Annual Re-port (the
financial statements of the parent as well as the consolidated fi-nancial
statements) brought about by a renewed assessment.
In accordance with the order of the Danish Securities Council a new review has
been conducted of the collective assessment of the measurement at amortised
cost of the relevant exposures in the 2007 Annual Report.
The renewed review has not given rise to any changes in the original
as-sessment which is considered to be in conformity with the industry and in
full compliance with the collective impairment model issued by “Lokale
Pengeinstitutter” (The Association of Local Banks, Savings Banks and
Co-operative Banks in Denmark) with the necessary changes for which
docu-mentation is provided in the management's completion of an accompany-ing
checklist.
In accordance with the order of the Danish Securities Council a total ac-count
of the disclosures of financial risks and capital, cf IFRS 7 and IAS 1, is
given below.
Capital and capital management
Subordinated capital (Tier 2)
During the year subordinated capital (Tier 2) was increased by DKK 2m to DKK
308m at year-end 2007.
To further strengthen the bank's capital structure, DKK 85m hybrid Tier 1
capital was raised in May. The loan was granted by Fonden for bankTrelle-borg.
In connection with the issue of this loan, the bank purchased 339,472 own
shares from Fonden for bankTrelleborg, corresponding to a purchase price of DKK
85m.
Subordinated capital (Tier 2) totals DKK 393m at year-end 2007 (2006: DKK 306m).
Share capital
On 28 March 2007 there was a conversion to a public limited company by way of a
merger with the fully owned subsidiary sTB I A/S. The merger was carried out
according to the so-called fund model whereby the fund estab-lished at the same
time, Fonden for bankTrelleborg, received the full remu-neration regarding the
company's shareholders' equity in the form of all shares of the company. In
connection with the merger new shares of 47,562,900 nominal were issued.
On 4 April 2007 the share capital was raised by DKK 19,624,020 nominal by
issuing bonus shares. On 10 April 2007 the share capital was increased by DKK
207,640 nominal by issuing bonus shares and shares at a favour-able price to
employees. In May 2007 there was a capital increase of DKK 23,981,520 nominal
by the conversion of guarantee capital and cash pay-ment.
bankTrelleborg was listed on 7 June 2007 and changed its name in this
connection from Sparekassen sparTrelleborg to bankTrelleborg A/S. 95% of the
bank's guarantors converted their guarantee capital into shares.
At year-end 2007 the share capital represents DKK 91,876,080, corresponding to
4,593,804 shares of DKK 20 each.
bankTrelleborg shares Number of Ownership Votes
shares (%) (%)
Fonden for bankTrelleborg 3,093,170 67.33 73.33
Own shares 375,714 8.18 0.00
Other shareholders 1,124,920 24.49 26.67
Total 4,593,804 100.00 100.00
Fonden for bankTrelleborg owns 67.33% of the shares, own shares repre-sent
8.18%, and other shareholders, numbering approx 15,000, own 24.49% of the
shares. Fonden for bankTrelleborg owns 73.33% of the vot-ing share capital and
other shareholders own 26.67%, cf section 67 (3) of the Danish Companies Act.
The bankTrelleborg share's book value excluding the share of minority
shareholders represents 143.84. At year-end 2007 the closing price of the
bankTrelleborg share stood at 249.52 and price/book value at 1.73.
Shareholders' equity (Tier 1)
At year-end 2007 shareholders' equity (Tier 1) constituted DKK 623m - a
reduction of DKK 91m since the beginning of 2007. The change comprises
disposals deriving from:
• loss for the year of DKK 20m
• net paid guarantee capital of DKK 268m
• net purchase of own shares of DKK 98m
• dividend distribution (“guarantee capital interest”) of DKK 5m
• net income and expense recognised directly in equity of DKK 3m
as well as additions deriving from:
• capital increase of DKK 300m
• property revaluation of DKK 2m
• tax on equity items of DKK 1m.
Capital management
The group's capital management aims to ensure a correlation between the group's
risks and capital and is based on the regulatory determination of the group's
capital requirements (capital adequacy requirements).
As of 1 January 2007 new capital adequacy requirements (Basel II) were
implemented to calculate credit, market and operational risks. For 2007 the
group has decided to apply the transitional rules and introduce Basel II on 1
January 2008.
Under the capital adequacy requirements, the bank's solvency must make up at
least 8% of risk-weighted assets. The group has met this require-ment
throughout the financial year.
As at 31 December 2007 the group's solvency ratio has been determined in
accordance with Basel I and stands at 10.5%:
Year-end
DKKm 2007 2006
Risk-weighted items 9,355 7,207
Shareholders' equity excl revaluation reserve 618 714
Intangible assets and tax assets (12) (13)
Hybrid core capital 85 0
50% of holdings > 10% (8) 0
Core capital incl hybrid capital after deductions 683 701
Subordinate loan capital 308 306
Revaluation reserve 2 0
50% of holdings > 10% (8) (64)
Capital base after deductions 985 943
Solvency ratio (%) 10.5 9.7
The group has regularly calculated the solvency requirement using the model of
“Lokale Pengeinstitutter” and the group's management has es-tablished an
internal requirement that the bank's solvency ratio must ex-ceed this solvency
requirement by 2 percentage points. In connection with calculations made during
the 2007 financial year, the solvency ratio has exceeded the solvency
requirement as well as the internal requirement.
As a result of the group's problems following the expiry of the financial year,
consisting primarily of the liquidity problems in relation to section 152 of
the Danish Financial Business Act, the solvency requirement was signifi-cantly
raised twice during January 2008. On 15 January the bank reported a solvency
requirement of 11%. On 18 January the Danish Financial Su-pervisory Authority
was informed by the bank that it did not meet the li-quidity requirements of
section 152 (1) of the Danish Financial Business Act. The Danish Financial
Supervisory Authority gave the bank until 8 am Monday 21 January to comply with
the requirements stipulated in section 152 (1) of the Danish Financial Business
Act. At 11 pm on Sunday 20 January, the bank's board of directors decided, in
light of the bank's liquid-ity situation, to raise the solvency requirement by
an additional 1-2% to a solvency requirement of between 12% and 13%. When the
solvency ratio was determined at 10.8%, the board of directors recognised that
the bank was failing and subsequently notified the Danish Financial Supervisory
Au-thority.
On 21 January bankTrelleborg accepted an agreement entered into be-tween Fonden
for bankTrelleborg and Sydbank to acquire the share capital of bankTrelleborg.
On the same day Fonden for bankTrelleborg requested that the board of directors
of bankTrelleborg made a decision concerning
the redemption of the shares of the minority shareholders. The board of
di-rectors of bankTrelleborg complied with the request of Fonden for
bank-Trelleborg. On the same day
• the Danish Financial Supervisory Authority approved the decision of the board
of directors concerning the compulsory redemption of the shares of the minority
shareholders of bankTrelleborg
• the Danish Commerce and Companies Agency (the commercial foundations
supervisory authority of Fonden for bankTrelleborg) sanctioned the
implementation of a compulsory redemption of the shares of the minority
shareholders of bankTrelleborg by Fonden for bankTrelleborg and the subsequent
sale of these shares to Sydbank for the purpose of a future merger, and
• the Danish Financial Supervisory Authority approved Sydbank's ac-quisition of
all shares of bankTrelleborg
• Sydbank placed the necessary liquidity - in the region of DKK 1,800m - at the
disposal of bankTrelleborg.
On 1 February 2008 Sydbank purchased the share capital of bankTrelle-borg after
which bankTrelleborg became a fully owned subsidiary. On 27 March 2008 Sydbank
and bankTrelleborg merged with retrospective ac-counting effect as of 1
February 2008.
Financial risks
Market risks
Market risk is the risk of loss as a result of changes in the market value of
the group's assets and liabilities caused by changes in market conditions, for
instance changes in market rates, equity prices and exchange rates.
The board of directors and executive management of the bank have estab-lished
guidelines on which risks the group wishes to assume, including amount limits.
According to the underlying strategy, the bank will not as-sume any significant
risks which are outside the scope of ordinary busi-ness.
Interest rate risks
The group's overall interest rate risk represents DKK 9.2m at 31 December 2007,
determined as the loss resulting from a rise in the overall interest rate level
of 1 percentage point.
The group's interest rate risk is predominantly on the bond portfolio. The bond
portfolio comprises mainly Danish bonds which are managed by ex-ternal
portfolio managers on the basis of established benchmark guide-lines. The
interest rate risk of the bond portfolio stands at DKK 7.2m at 31 December
2007.
Moreover the group has an interest rate risk on a number of fixed-rate loans
and advances. This risk is to the extent possible hedged by financial
instruments, ie interest rate swaps. The net interest rate risk of fixed-rate
loans and advances and interest rate swaps constitutes DKK 2.0m at 31 December
2007.
The group has applied the rules of hedge accounting in connection with the
preparation of the 2007 financial statements in relation to hedging the price
risk of fixed-rate loans. Hedge accounting rules aim to ensure sym-metry of the
financial statements and as a consequence hereof the group has charged DKK
263,000 to income at 31 December 2007 (year-end 2006: DKK 26,000) as a market
value adjustment of the bank's loans and advances, corresponding to the net
gain on hedging transactions of DKK 265,000 (2006: DKK 27,000).
In addition the interest rate risk is reduced mainly by accepting floating-rate
deposits and loans and advances; the issue of loans and capital injec-tion are
exclusively in the form of floating-rate loans.
Equity price risks
The group has a share portfolio partly in listed shares and units and partly in
unlisted shares in a number of industry companies (strategic business
partners).
The price risk of the unlisted shares in the industry companies is relatively
limited. The group's strategy regarding the portfolio of listed shares and
units is that investments must be made with focus on Denmark and Scan-dinavia.
Moreover there must be satisfactory diversification across indus-tries as well
as companies and investment funds. The portfolio of listed shares and units
represents DKK 138m at 31 December 2007. A price drop of 10% would therefore
cause a loss of around DKK 13m-14m.
Foreign exchange risks
The group's foreign exchange position can in all material respects be as-cribed
to positions in EUR deriving from funding via deposits from other banks. The
risk of major exchange rate fluctuations in EUR is considered to be relatively
low. To the extent possible the foreign exchange risk of other currencies is
hedged by continuously holding assets in foreign currency equivalent to the
liabilities in foreign currency. The group's positions and turnover in foreign
currency have however increased in recent years and therefore the foreign
exchange risk, measured by the exchange rate indica-tor, see the FSA
guidelines, has also risen. The foreign exchange position represents 152% at
year-end 2007 (year-end 2006: 13%).
Liquidity risks
Liquidity risk comprises the risk that payment obligations cannot be hon-oured
by means of the cash resources.
In accordance with the liquidity instructions of the board of directors to the
group executive management, the group's overall policy is to have an ex-cess
cover of a minimum of 50% relative to the requirements stipulated in section
152 of the Danish Financial Business Act.
During the period from 11 October 2006 to 16-20 November 2007 the group has
mismanaged and miscalculated its liquidity as the group was not aware that the
pledge of deposits in Spar Nord Bank A/S was wrong-fully included in the
group's liquidity according to section 152 of the Danish Financial Business
Act. Consequently during the mentioned period the group's actual liquidity
position was not as good as that determined. As of 20 November 2007 the correct
determination of liquidity shows a modest excess cover relative to the
statutory requirement of 10%, namely 10.8%. It has not since been possible to
improve it significantly.
At the end of the financial year amounts owed to credit institutions and
central banks by the group totals DKK 3,585m (year-end 2006: DKK 2,530m).
Amounts owed on demand represent 50% (year-end 2006: 44%); amounts owed in 3
months or less constitute 39% (year-end 2006: 55%); and amounts owed over 3
months not exceeding 1 year represent 11% (year-end 2006: 1%). As in 2006 no
amounts are owed to credit institutions with a maturity of more than 1 year.
Amounts owed to credit institutions and central banks Year-end
DKKm 2007 2006
Distribution by maturity:
On demand 1,804 1,113
3 months or less 1,396 1,380
Over 3 months not exceeding 1 year 385 37
Over 1 year not exceeding 5 years 0 0
Over 5 years 0 0
Total 3,585 2,530
As of 31 December 2007 the group's deposits and other debt total DKK 3,160m
(year-end 2006: DKK 3,347m), comprising on demand debt of 76% (year-end 2006:
84%), debt with a maturity of up to 3 months of 16% (year-end 2006: 8%), debt
with a maturity of between 3 months and 5 years of 2% (year-end 2006: 3%) and
debt with a maturity of more than 5 years of 6% (year-end 2006: 5%).
Deposits and other debt Year-end
DKKm 2007 2006
Distributed by maturity:
On demand 2,400 2,807
3 months or less 499 276
Over 3 months not exceeding 1 year 28 61
Over 1 year not exceeding 5 years 37 37
Over 5 years 196 166
Total 3,160 3,347
Compared to year-end 2006 the maturity dates of the group's three loans in the
form of supplementary capital (Tier 2) of DKK 50m (29 October 2012), DKK 200m
(14 November 2011) and EUR 7.5m (31 October 2015) are unchanged. The hybrid
Tier 1 capital of DKK 85m raised during the year has no fixed maturity.
Credit risks
Credit risk is the risk of loss as a result of a debtor's default on his
pay-ment obligations to the group. Moreover credit risk may arise from trading
in securities, foreign exchange and derivatives.
Overall credit risk is managed according to policies and limits as deter-mined
and adopted by the management of the bankTrelleborg group.
As regards credit facilities to corporate clients as well as retail clients,
the client's ability and will to meet obligations assumed are assessed. When
granting facilities, full insight into the client's financial situation is
required.
As a rule collateral is secured by mortgage on property and securities.
Distribution by industry/risk diversification
Total large exposures, as stipulated by the Danish Financial Supervisory
Authority, represent 209% at 31 December 2007 (year-end 2006: 188%) of the
capital base. This level is considered relatively high. A significant part of
the large exposures can be related to the industry “Property administra-tion,
purchase and sale, and business services”. The distribution of the group's
overall loans and advances, amounts owed and guarantees as of 31 December is as
follows:
Loans and advances, amounts owed and guarantees by sector and industry At 31
December
% 2007 2006
Public sector 0 1
Corporates:
Agriculture, hunting and forestry 2 2
Fisheries 0 0
Manufacturing industries, extraction of raw materials, utilities 2 3
Building and construction 3 9
Trade, restaurants and hotels 5 5
Transport, mail and telephone 1 1
Credit, finance and insurance 9 10
Property administration, purchase and sale, and business services 37 29
Other corporates 7 4
Total 66 63
Retail clients 34 36
Total assets 100 100
The group's total loans and advances and guarantees are broken down as follows:
corporate clients 66% and retail clients 34%.
The group's exposure to the industry “property administration, purchase and
sale, and business services” has risen throughout 2007 and represents 56% at
year-end 2007 (2006: 46%) of total loans and advances and guar-antees to
corporate clients, which is exceptional relative to comparable banks.
The share of exposures exceeding DKK 60m constitutes around DKK 4.5bn,
including weak and risky exposures of around 35%, equivalent to just over DKK
1.5bn. The risk profile of the loan portfolio is considered to be very high.
Maximum exposure to credit risk At 31 December
DKKm 2007 2006
Balance sheet items:
Balances on demand at central banks 752 1,008
Amounts owed by credit institutions and central banks 1,095 803
Loans and advances and other amounts owed at amortised cost 5,331 4,492
Off-balance sheet items:
Guarantees 3,033 3,045
Credit commitments 1,078 848
Total credit exposure 11,289 10,196
Different types of collateral are applied to mitigate the group's credit
port-folio risk. The most significant types of collateral comprise pledges and
guarantees.
Pledges comprise deposit accounts and financial assets in the form of bonds and
shares. The bank ensures that the pledged items are separate from the clients'
right of disposal and that the pledge is of legal validity. Measurement is
managed via the requirements of the financial collateral comprehensive method
according to the executive order on capital ade-quacy which reduce the value of
collateral on the basis of issuer, maturity and liquidity.
Credit risk by credit quality 31 Dec
DKKm 2007 2006
Neither past due nor impaired 11,031 9,912
Past due but not impaired* 69 232
Impaired 189 52
Total 11,289 10,196
* Only the past due part of the exposure.
Past due amounts
Past due amounts and debts outstanding etc not subject to individual impairment
Debt outstanding on loans to
Past due amounts clients
in arrears
DKKm at 31 Dec 2007 2006 2007 2006
1 - 30 days 49 137 2,103 1,544
31 - 60 days 4 50 27 147
61 - 90 days 4 0 28 5
> 90 days 12 45 107 266
Total 69 232 2,265 1,962
Loans and advances etc that would have been past due or
impaired if the terms had not been renegotiated 266 87
Amounts owed by credit institutions etc and loans and advances are all assessed
individually to determine whether objective evidence of impair-ment exists. As
regards significant amounts owed and loans and ad-vances, assessment is carried
out to determine whether there is objective evidence of impairment.
There is objective evidence of impairment of amounts owed and loans and
advances if one or more of the following events have occurred:
• Considerable financial difficulties on the part of the debtor.
• Breach of contract by the debtor, for instance by way of failure to fulfil
the payment obligations as regards instalments and interest.
• Special terms granted to the debtor by the bankTrelleborg group, which would
otherwise not have been considered if the debtor had not been experiencing
financial difficulties.
• The likelihood of bankruptcy or other financial restructuring on the part of
the debtor.
Impairment charges are determined individually when there is objective evidence
of impairment at an individual level.
Note 24 Fair value of financial instruments in the group
In accordance with the order of the Danish Securities Council a new note 24 to
the consolidated financial statements regarding the fair value of fi-nancial
instruments is shown below, where the fair value of loans and ad-vances at
amortised cost has been disclosed in compliance with the provi-sions.
The carrying amount of loans and advances and other amounts owed and the fair
value thereof is stated below:
Carrying
31 December 2007 DKKm amount Fair value
Loans and advances and other amounts owed at amortised cost 5,331 5,007
The carrying amount of other financial assets and liabilities corresponds to
the fair value in all material respects. As of 31 December 2006 no signifi-cant
differences between the carrying amount and the fair value of financial assets
and liabilities have been noted.
The fair value determination of loans and advances is based on individual
calculation of the individual loans and advances by applying discount rates
based on an estimated, current risk premium of the individual loan at 31
December 2007. In connection with the fixing of the discount rate any knowledge
gained in connection with the completed transfer of the bank to Sydbank has
been taken into account. The fair value determination takes into account all
significant market-related aspects as at 31 December 2007. The fair value
determination is therefore based on how a qualified, willing and independent
market participant would measure the loans and advances, which may deviate from
the assessment of bankTrelleborg.
The difference between the carrying amount, made up at amortised cost, and the
fair value of loans and advances at 31 December 2007 reflects dif-ferent
methods of determination.
Amortised cost is based on the effective interest rate at the time of
origina-tion. The effective interest rate of the loan is applied to discount
the ex-pected cash flows. If there is no objective evidence of impairment of a
loan or a group of loans since the initial recognition of the loan or group of
loans, the expected cash flows will not be reassessed in connection with the
determination at amortised cost in accordance with the rules of meas-urement at
amortised cost. Moreover, changes in market-related credit margins will not
change the discount rate in connection with the determi-nation at amortised
cost .
Fair value determination of loans and advances is based on how a quali-fied,
willing and independent market participant would measure the loans and
advances. The determination includes a number of accounting esti-mates made by
the management of Sydbank. By their nature accounting estimates involve
uncertainty. Uncertainty about the fair value determina-tion has increased as a
consequence of the risk profile and illiquidity of the lending portfolio.
Management statement
It is our opinion that the corrective/supplementary disclosures concerning the
Annual Report of bankTrelleborg A/S have been prepared in accor-dance with the
orders issued in the decision of the Danish Securities Council of 26 June 2008.
Aabenraa, 21 January 2009
Group Executive Management
Carsten Andersen Karen Frøsig
(CEO)
Preben L. Hansen Allan Nørholm
Board Chairman
Kresten Philipsen
Auditor's Report
Independent auditors' report
To the former shareholders of bankTrelleborg A/S
We have audited the corrective/supplementary information for the annual report
of bankTrelleborg A/S for 2007. The corrective /supplementary in-formation has
been prepared in accordance with the order of the Danish Securities Council in
its decision of 26 June 2008.
After the presentation of the 2007 annual report, bankTrelleborg A/S ceased to
exist as a company by means of a merger with Sydbank A/S on 27 March 2008.
Consequently, the Management of Sydbank A/S is re-sponsible for the
corrective/supplementary information. Our responsibility is to express an
opinion on the corrective/supplementary information based on our audit.
The annual report of bankTrelleborg A/S for 2007 has been audited by
PricewaterhouseCoopers, Statsautoriseret Revisionsaktieselskab.
Pricewa-terhouseCoopers resigned as auditors of bankTrelleborg A/S immediately
before the merger with Sydbank A/S. We have not audited the annual re-port of
bankTrelleborg A/S for 2007 and consequently have only limited knowledge of the
circumstances in bankTrelleborg A/S.
After Sydbank A/S' takeover of bankTrelleborg A/S and the subsequent
dissolution of bankTrelleborg A/S by the merger with Sydbank A/S,
bank-Trelleborg A/S' organisation has been incorporated into the Sydbank Group,
and a number of key persons have resigned.
These matters restricted the possibilities of auditing the
correc-tive/supplementary information, see ”Qualified opinion” below.
The information contained in note 24 regarding amortised cost of lending is
based on the annual report of bankTrelleborg A/S presented for 2007. When
measuring lending at amortised cost, group impairment write-downs have been
subject to renewed assessment in accordance with the order. The order does not
cover a renewed assessment of individual impairment write-downs.
Basis of opinion
Except for the below-mentioned issues, we conducted our audit in accor-dance
with the Danish Standards on Auditing. These standards require that we plan and
perform the audit to obtain reasonable assurance that the
cor-rective/supplementary information is free of material misstatement.
Our audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the corrected/supplementary information. We furthermore
discussed with the Management of Sydbank the principles applied for the
computation of fair value of financial assets and liabilities and assessed
whether these principles are relevant.
The possibility of assessing whether the amounts and disclosures stated
represent a complete presentation of the financial risks and the capital
po-sition in bankTrelleborg A/S has, however, been significantly restricted due
to our limited knowledge of the circumstances in bankTrelleborg A/S and our
limited possibility of discussing the issues with key persons from
bankTrelleborg A/S.
Qualified opinion
As a result of the above-mentioned restrictions in our audit, we must qual-ify
our opinion as to whether the corrective/supplementary information represents
an complete presentation of the bank's financial risks and capi-tal position.
Opinion
In our opinion, except for the effect of the above qualification, the
correc-tive/supplementary information regarding the annual report of
bankTrelle-borg A/S for 2007 is, in all material respects, prepared in
accordance with the order of the Danish Securities Council in its decision of
26 June 2008.
Emphasis of matter
Without qualifying our opinion, we refer to note 24 in which the Manage-ment
accounts for the uncertainty regarding the computation of the fair value of
lending.
Aabenraa, 21 January 2009
KPMG
Statsautoriseret Revisionspartnerselskab
Sven Jørgensen
State Authorised Public Accountant
Attachments
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