Press Annual Report 2009 In 2009 Amagerbanken experienced satisfactory core earnings before impairment charges in spite of a turbulent year for the Bank. Loan impairment charges are as expected at an unsatisfactory high level. Net result for the year is negative DKK 469m. We anticipate 2010 to contain continued challenges, but an expectation of core earnings before impairments and before costs for Bank Package I in the level DKK 280 - 350m. Today, Amagerbanken's Board of Directors approved the Annual Report 2009, which is enclosed. The following may be pointed out: Core income amounted to DKK 1,122m, which is as expected. Cost ratio of 51.7 %, which is better than expected. Core earnings before loan impairment charges amounted to DKK 542m, which is better than expected and higher than in the announced interval of DKK 480 - 520m. The deviation may essentially be related to increased fee income and less costs in December 2009 Impairments on loans and advances amounted to DKK 1,097m or 4.1 % p.a. of credit lending Impairments can be related to the continued weak market conditions and increased impairments on single large exposures. The Bank's accumulated impairments (not loss) amounted to DKK 2,693m, equal to 9.6 % of credit lending. Investment portfolios amounted to DKK 137m against negative DKK 276m in 2008. Sector related costs amounted to DKK 209m and is a substantial expense item in 2009. Costs relate to the Bank's contribution to the Danish Contingency Committee under Bank Package I. Net result for the year amounted to negative DKK 469m. Loans and advances dropped by DKK 2,247m since December 2008. Solvency ratio is 17.2 %, core capital accounting for 12,0 %. The Bank's capital base was strengthened by DKK 962m in December 2009 and loan under Bank package II of DKK 1,106m. Expectations for core earnings before impairments and before costs for Bank Package I in 2010 are in the level DKK 280-350m. ” The Bank is satisfied with core earnings before impairments, but obviously we are not pleased with the high impairments, which still relate to the property market and the financial assets, which the Bank financed. We still anticipate 2010 to contain challenges, but with the Bank‘s strengthened capital base, the Bank is well prepared for the future”, says Mr. Jørgen Brændstrup, Managing Director and Chief Executive. Inquiries:: Mr. Jørgen Brændstrup, Managing Director and Chief Executive, phone +45 32 66 60 01
Annual Report 2009
| Source: Amagerbanken A/S
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