NASDAQ OMX Copenhagen A/S
The Press
5 February 2009
Announcement concerning Amagerbanken's Annual Report 2008
In spite of increase in core earnings the result before tax amounted to a loss
of DKK 519 million. The result is severely affected by negative value
adjustments and loan impairment charges largely due to decrease in value of
fixed assets mainly within real property and the financial markets. Management
considers the negative value adjustments as well as the loan impairment charges
as unsatisfactory.
The following may be pointed out:
Core income amounted to DKK 1,282 million, an increase of 9.5% compared to 2007
Increase of net interest income of 26.6% compared to last year
Cost ratio of 51.0% against 49.4% end-2007
Core earnings before loan impairment charges amounted to DKK 660 million, an
improvement of 7.9% compared to last year
Impairments on loans and advances amounted to DKK 1,073 million due to the still
deteriorated economic trends, an increase of DKK 173 million compared to the
Bank's announcement of 18 December 2008
The investment portfolio is negative by DKK 276 million
Sector related costs amounted to DKK 56 million in 2008
The loss of the year after tax amounted to DKK 519 million against a profit of
DKK 393 million in 2007
Expectations for core earnings before impairment charges for 2009 is estimated
at a level of DKK 480-520m before costs of Bank Package I and possible costs of
Bank Package II
Solvency ratio is 10.3%, core capital accounting for 6.5%
End of December 2008 the liquidity excess cover / statutory adequacy requirement
amounted to 101%
In October 2008 The Bank has joined the government guarantee scheme (Bank
Package I) for which reason dividend is not paid out
The General Meeting will be held on 23 March 2009 within which date the bank has
decided on the Bank Package II.
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| DKKm | 2008 | 2007 | Dev. |
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| Core earnings ex. trading income | 1,114.1 | 921.2 | 19.,9 |
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| Trading income | 168.3 | 249.9 | -81.6 |
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| Total core income | 1,282.4 | 1,171.1 | 111.3 |
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| Cost and impairment losses | 622.9 | 560.0 | 62.9 |
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| Core earn. before impairment charges | 659.5 | 611.1 | 48.4 |
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| Impairment charges | 1,073.2 | 17.8 | 1,055.4 |
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| Core earnings | -413.7 | 593.3 | -1,007.0 |
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| Investment portfolio | -276.0 | -23.3 | -252.7 |
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| Result before special items | -689.7 | 570.0 | -1,259.7 |
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| Sector related costs | -56.2 | 0.0 | -56.2 |
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| Profit Totalkredit shares | 33.6 | 0.0 | 33.6 |
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| Temporarily foreclosed assets | 2.7 | -1.2 | 3.9 |
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| Profit/loss from Jeudan | 16.1 | -74.8 | 90.9 |
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| Profit/loss before tax | -693.5 | 494.0 | -1,187.5 |
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| Profit/loss for the year | -518.5 | 393.0 | -911.5 |
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“Our endeavours to limit the Bank's risk of the impairment charges in fact
resulting in losses of course take highest priority and the same applies to our
effort to reduce large exposures and our property exposures as well as a general
balance sheet reduction”, says Managing Director and CEO, Mr. Jørgen Brændstrup.
“The crisis in society and the financial sector and the deriving economic
recession naturally causes a larger insecurity at measurement of large exposures
at the presentation of accounts for 2008 than in previous years. A further
negative business trend may lead to additional loan impairment charges, which
may adversely affect the bottom-line as well as our equity in future accounting
periods.
The drastic deterioration of market conditions both on the financial markets and
in society as a whole will result in changed earnings and business conditions
for the financial sector and Amagerbanken. The Bank will thus adjust the
staffing to the changed market conditions, reducing the staff by 11% through
retirement in the period from October 2008 to end February 2009”, says Managing
Director and CEO, Mr. Jørgen Brændstrup.
Questions to this report may be addressed to Mr. Jørgen Brændstrup, Managing
Director and Chief Executive at phone no. +45 32 66 60 01.
Enclosed: Amagerbanken's Annual Report 2008 (Announcement No. 2, 5 February
2009)
02-2009 - Announcement concerning Amagerbanken`s Annual Report 2008
| Source: Amagerbanken A/S
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