2014-02-27 08:00:01 CET
2014-02-27 08:00:07 CET
REGULATED INFORMATION
BankNordik P/F - Financial Statement Release
BankNordik: 2013 financial results in line with 2012
Profit before value adjustments and tax of DKK 103m for 2013, compared with DKK
101m in 2012. Performance impacted by competitive markets and impairment
charges. The Nordik 360 loyalty programme has increased business with customers
wishing to make use of the Bank's professional services and broad range of
products.
Operating income totalled DKK 846m, as against DKK 895m the year before. Demand
for loans remains soft, and the market for new lending is extremely
competitive, putting interest margins under considerable pressure. The
insurance operations made a healthy contribution to consolidated earnings.
The drop in income from banking activities were to a large extent offset by
lower operating costs achieved through extensive rationalisation measures. On
the other hand, the financial results were impacted by BankNordik's DKK 26m
contribution to the banking industry's deposit guarantee scheme (2012: DKK
11m). This brought operating profit before impairment charges to DKK 261m,
compared with DKK 292m in 2012.
The profit after loan and credit impairment charges for the year was DKK 147m
(2012: DKK 115m). Most of the impairment charges relate to personal customers
and small corporate customers.
The profit after impairment charges and special items but before value
adjustments and tax was DKK 103m, compared with DKK 101m in 2012. This is
slightly higher that the profit guidance announced on 10 January 2014.
Increasing and strengthening customer collaboration
Following BankNordik's strategic long-term expansion of its operations in 2010
and 2011 and the far-reaching restructuring that followed, the Bank was once
again able to dedicate its full attention to serving its customers in 2013.
In order to focus its efforts, the Bank strengthened its services to those of
its customers who make the most use of its banking services. A new loyalty
programme, Nordik 360, has been launched to retain and expand the group of
high-value customers. At the same time, more efficient services were provided
to customers demanding fewer and less sophisticated services.
Outlook for 2014
BankNordik intends to continue developing its operations in line with its
current strategy and policies.
Interest rates are expected to remain at low levels, and moderate economic
growth is expected in the Bank's markets. As a result, demand for loans is
expected to remain low, but the Bank will work to increase the volume of new
lending in order to offset the repayments on existing loans. As a result, the
Bank expects loans and advances at the end of 2014 to be at the level of the
beginning of the year. The interest margin is expected to contract somewhat in
the very competitive markets.
As a result, the Bank expects a drop in net interest income in 2014 relative to
2013. The same applies to the income from insurance operations. A slight
improvement is expected in fee income from increases in pension, investment and
mortgage-credit activities.
The Bank will retain its focus on cost savings in 2014.
Based on the above, BankNordik expects profit before impairment charges,
special items, value adjustments and tax of DKK 200-240m for 2014 (2013: DKK
261m).
Net impairments on loans are expected to be lower in 2014 than in 2013.
Solvency and liquidity at healthy levels
BankNordik's risk profile is reflected in its solvency need of 8.9%, which is
among the lowest in the Danish banking sector and very close to the statutory
minimum solvency requirement of 8%. The Bank's solvency of 14.7% leaves a
margin of 5.8 percentage points relative to the solvency need.
The Faroese and the Danish regulatory authorities have agreed to designate
three of the four Faroese banks as systemically important financial
institutions (SIFIs), one being BankNordik. Preliminary calculations indicate
that BankNordik will be imposed a SIFI-buffer of 2.5%.
In terms of liquidity, BankNordik also has solid excess cover at 178% above the
required level, equal to 2.8 times the requirement.
Audiocast Presentation of the results
In connection with publication of the Annual Report the bank hosts an audiocast
presentation of the results. CEO Janus Petersen will be the host of the
audiocast.
A link to the audiocast is available on www.banknordik.com.
Investors, analysts and other interested parties will be able to put forward
questions by dialling in on the following dial in numbers at 10:30 GMT.
Leader UK Freephone Dial-In:
United Kingdom 08005286702
Leader Std International Dial-In: +44 (0) 1452 554946
Leader LocalCall Dial-In Numbers:
Denmark, Copenhagen 32728019
Appendix: BankNordik's financial highlights for 2013
For further information, please contact:
Janus Petersen, CEO, tel. (+298) 330 340
Árni Ellefsen, CFO, tel. (+298) 330 348
Johnny í Grótinum, Investor Relations, tel. (+298) 230 380, ir@banknordik.fo
BankNordik has banking activities in Denmark, Greenland and the Faroe Islands
and insurance activities in the Faroe Islands and Iceland. Founded in the Faroe
Islands more than a century ago, the Group has 170,000 customers, total assets
of DKK 17bn and 500 employees. The Bank is subject to the supervision of the
Danish Financial Supervisory Authority and is listed on NASDAQ OMX.
www.banknordik.dk.
Financial highlights
DKKm 2013 2012 Q4 Q3 Q2 Q1 Q4
2013 2013 2013 2013 2012
--------------------------------------------------------------------------------
Net interest income 574 613 133 143 151 147 154
Net fee income 188 195 53 43 48 44 54
Income from insurance 69 81 14 15 29 12 18
operations
Other operating income 14 6 5 3 3 3 4
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating income* 845 895 206 204 230 206 230
Operating costs* -558 -592 -140 -136 -142 -141 -137
Sector costs, etc. -26 -11 -4 -4 -8 -8 -7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit before 261 292 62 64 81 57 86
impairment charges*
Loan impairment charges, -148 -115 -41 -32 -20 -55 -35
net
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit* 114 178 21 31 69 10 58
Non-recurring items -11 -77 -19 0 10 -2 -10
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit/(loss) 103 101 1 31 79 -9 34
before value
adjustments and tax
Value adjustments 11 21 -10 16 -16 22 8
--------------------------------------------------------------------------------
Profit before tax 114 121 -9 47 63 13 42
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Deposits, etc. 12,193 12,746 12,193 12,019 12,331 12,800 12,746
Loans etc. 10,460 11,303 10,460 10,587 10,750 10,820 11,303
Total assets 17,085 17,609 17,085 16,876 17,369 17,817 17,609
Equity 2,156 2,053 2,156 2,155 2,125 2,063 2,053
Solvency ratio 14.7% 14.8% 14.7% 14.5% 15.4% 14.9% 14.8%
Liquidity relative to 2.8 x 2.5 x 2.8 x 2.6 x 2.8 x 3.0 x 2.5 x
statutory requirement
Costs / Operating profit 66% 66% 68% 67% 61% 68% 61%
Number of employees 509 550 509 517 529 533 550
(FTE) at year-end
--------------------------------------------------------------------------------
* Excluding non-recurring items and other special items (value adjustments
etc.).
Further details are available in the 2013 Annual Report.
© 2024 Nasdaq, Inc. All Rights Reserved |