Faaborg, Denmark, 2012-05-03 13:09 CEST (GLOBE NEWSWIRE) -- Overview
The expected results for first quarter 2012 before market value adjustments, loan impairment losses etc. and tax for the group of Sparekassen Faaborg have been met, as the results have improved compared to first quarter 2011. As a consequence of new loan impairment rules implemented by the Danish FSA on 1 April 2012, the impairments have increased, and not as expected decreased in first quarter 2012. The group results are therefore a loss of DKK 50,1m after tax.
The group core income has increased by DKK 4,2m to DKK 89,9m compared to first quarter 2011. The increase comes from business activities in Sparekassen Faaborg’s new branches and more activity especially concerning remortgaging of mortgage loans.
The core expenses have increased to DKK 60,2m corresponding to an increase of 4.3 percent compared to first quarter 2011. The increase mainly comes from opening of new branches and establishing of a customer wealth management centre.
Loan impairment losses etc. amount to DKK 98,8m compared to DKK 22,4m in first quarter 2011. More than half of the impairments come from the new impairment rules implemented by the Danish FSA on 1 April 2012.
The investment portfolio earnings have improved and are positive by DKK 4,9m compared to negative by DKK 10,6m in first quarter 2011.
Loans and advances are largely the same compared to 31 December 2011 and now amount to DKK 4,4b. Deposits including pool deposits have increased by 5.5 percent to DKK 4,5b. The group objective of having balance between loans and advances and deposits has now been achieved, and therefore there is no further need to reduce the group loans and advances.
The group solvency and core capital are still very sound. The solvency ratio is 17.5 and the core capital ratio 14.9 percent.
The surplus to the solvency need is largely unchanged amounting to 5.2 percentage points.
The liquidity is still very satisfactory with a surplus of 183.1 percent.
Outlook financial year 2012
The group still expects core earnings before loan impairment losses etc. at a higher level than in 2011.
CEO Claus Sejling, phone no. +45 6361 1814
