The Board of Directors of SPARBANK A/S A/S has on this day considered and
adopted the 2008 annual report.
SPARBANK returned a net loss of DKK 286m against a net profit of DKK 152m last
year.
The year's results were, in brief, affected by:
An increase in net interest and fees income from core earnings of DKK 24m to
DKK 736m.
Core income of DKK 749m on a par with last year.
An increase in ordinary operating expenses of DKK 10m to DKK 519m, up 1.9%.
Impairment of loans and receivables etc. of DKK 445m, of which a considerable
part is not uncollectible bad debts.
Market value adjustments of DKK -145m.
Expenses for the Danish Contingency Committee in 2008 of DKK 35m.
Restructuring costs of DKK 23m.
Other highlights:
For the past couple of years, SPARBANK has - as part of a deliberate strategy -
worked to create greater coherence between deposits and loans. In the period
2006 to 2008, loans increased by 5% on average, while deposits increased by 7%
on average.
The bank's liquidity is satisfactory. SPARBANK has laid down policies which are
designed to ensure that the bank - even in periods of turbulence in the
financial markets - maintains a sound liquidity. The liquidity surplus cover
relative to the statutory minimum requirements is 89.6%, corresponding to a
surplus cover of DKK 1.9bn.
The solvency ratio of SPARBANK is 10 and thus satisfactory relative to the
statutory minimum requirement of 8%. In H1 2009, SPARBANK expects to strengthen
its capital base as the Board of Directors recommends to the general meeting
that the bank join Bank Package II. In connection with an injection of hybrid
core capital of approx. DKK 650m, the solvency and core capital ratios are
expected to increase to 14 and 12, respectively.
The bank expects a small increase in core earnings before impairment in 2009.
In 2008, core earnings before impairment amounted to DKK 230m. As the economic
climate is characterised by considerable uncertainty, the outlook is also
subject to significant uncertainty.
