Announcement no. 15-2010
22 July 2010
Interim report - first half of 2010
Satisfactory core earnings before loan impairment charges, which is better than
expected
Loans and advances reduced by DKK 700 million
Strongly unsatisfactory loan impairment charges deriving from volatile changes
in foreign exchange rates
Requirement among others of contribution of at least DKK 750 million in new
capital base as part of the liquidity guarantee from the Financial Stability
Company
Today, Amagerbanken's Board of Directors approved the Interim report - first
half of 2010, which is enclosed.
The following may be pointed out:
* Core income amounted to DKK 457 million , which is better than expected
* The cost/income ratio amounted to 56.4 % after costs of Bank Package II
* Core earnings before impairment charges amounted to DKK 199 million, which
is better than expected
* Loan impairment charges amounted to DKK 590 million or 4.5 % p.a. of total
lending, which to a significant degree is related to the already reported
foreign exchange losses from customers' capital finance and to a minor degree
other negative development for the Bank's customers.
* The Bank's accumulated impairment charges amounted to DKK 3 billion, equal to
12.4 % of total lending
* Investment portfolio amounted to DKK 7 million
* Sector-related costs amounted to DKK 93 million and are a substantial
expense in first half of 2010. Costs relate to the Bank's contribution for
the
Private Contingency Association under Bank Package I
* The net result for the period was a loss of DKK 263 million
* Loans and advances dropped by DKK 700 million since December 2009
* Solvency ratio is 15.5 %, core capital accounting for 9.3 %
* Due to the terms and conditions still outstanding towards the Financial
Stability Company, the Interim report includes supplemental information from
Management and auditors
” A number of large customers have through several years had their loan capital
finance in foreign exchange. After heavy fluctuations in certain foreign
exchanges, particularly in May and June, the Bank took the consequence and
closed these transactions at the customers' account. Presently, the customers
are unable to cover the exchange losses, for which reason the Bank has realised
strongly unsatisfactory loan impairment charges in the second quarter of 2010.
The core business is good - and better than expected, why we shall now focus all
forces to comply with the requirements which we have to comply with - among
others to provide cash DKK 750 million in new capital base”, says Mr. Jørgen
Brændstrup, Managing Director and Chief Executive.
Inquiry: Mr. Jørgen Brændstrup through Ms. Anne Mikkelsen (coordinator) at phone
no.+45 32 66 64 03
