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2013-03-05 07:56:45 CET 2013-03-05 07:57:52 CET REGULATED INFORMATION BankNordik P/F - ÁrsreikningurAnnual Report 2012: BankNordik quadrupling profitProfit before tax of DKK 121m for 2012 against DKK 31m in 2011. The main events of 2012 were the integration of the healthy parts of Amagerbanken and the subsequent organisational restructuring. The non-recurring costs of this exercise amounted to DKK 77m and yet the Bank still managed a satisfactory profit before tax of DKK 121m for 2012. The operating profit before non-recurring items was DKK 188m compared to DKK 149m last year. “The results are in line with the expectations we had at the beginning of the year, and which at that time might have seemed a bit on the high side. We've followed our plans diligently, and the results show that we're on the right track,” said BankNordik CEO Janus Petersen. In light of the profit improvement, the Board of Directors recommends that the company pay dividends of DKK 10 million to the shareholders. Enhanced profitability Through acquisitive growth in Denmark, Greenland and Iceland, BankNordik has doubled in size since 2009, gaining new know-how and expertise and opening up for better opportunities for organic growth. This spells out the Bank's strategic vision, which it has gradually achieved by capitalising on the right opportunities as they arose. During the past 12 months, BankNordik has improved the customer service efficiency of its branch network. The initiatives taken have strengthened profitability, but they have also improved the competitive strength and provided more resources for advising the growing number of customers making use of the Bank's financial and advisory services. Following the successful integration of the new activities, the Bank is now focused on profitability, customer service, credit quality and capital strength. “The year 2012 was a milestone in the strategic development of BankNordik, yielding the positive results of the many far-reaching decisions we have made in recent years,” said Janus Petersen. Insurance operations delivering good results BankNordik operates two insurance companies; one has a 25% market share in the Faroe Islands, the other has 15% in Iceland. Both insurance companies reported mild winter seasons with a low level of claims, together reporting DKK 47 million in profit before tax for 2012. “We've seen a constant improvement in our insurance operations, and I'm very pleased with the performance of our insurance businesses,” said Janus Petersen. Healthy lending leads to low solvency need The Bank has a well-diversified lending portfolio with personal customers accounting for 60% of it, a good industry spread and only a few large exposures. Its low risk profile is reflected in the low solvency need of 8.6%, which is close to the minimum requirement of 8%. In other words, the solvency rate of 14.8% gives the Bank a comfortable excess of 6.2 percentage points over the solvency need. Outlook for 2013 In 2013, BankNordik will continue to develop the Bank in line with the announced strategy. Economic growth and, by extension, loan demand is expected be low, which makes the Bank expect about a 2% drop in lending. In the coming years, the Bank will be facing a new expense of around DKK 23 million annually for consolidating the depositors' guarantee fund. Write-downs, on the other hand, are expected to fall relative to 2012. Profit before tax and value adjustments for 2013 is expected to be in the DKK 130-160m range (2012: DKK 102m). Financial highlights DKKm 2012 2011 Q4 Q3 Q2 Q1 Q4 2012 2012 2012 2012 2011 -------------------------------------------------------------------------------- Operating income* 895 754 236 224 219 217 192 Operating costs* -592 -519 -143 -145 -153 -151 -157 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Profit before 303 235 93 79 66 66 35 impairments Impairments, net -115 -86 -35 -14 -46 -19 -37 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Operating profit* 188 149 58 65 20 46 -2 Non-recurring costs -77 -99 -16 -1 -11 -48 -55 Sector costs, etc. -9 -29 -5 0 1 -5 -2 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Operating profit before 102 21 36 64 9 -7 -60 value adjustments and tax Value adjustments 19 10 6 4 -7 17 27 -------------------------------------------------------------------------------- Profit before tax 121 31 42 68 2 10 -33 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Loans and advances, etc. 12,746 13,032 12,751 13,087 13,262 13,088 13,123 Loans etc. 11,303 11,769 11,303 11,271 11,430 11,376 11,769 Total assets 17,609 17,086 17,609 17,827 17,876 17,878 17,086 Equity 2,053 1,958 2,053 2,013 1,957 1,969 1,958 Solvency ratio 14.8% 15.6% 14.8% 13.8% 15.1% 14.9% 15.6% Excess liquidity 2.5 x 2.2 x 2.5 x 2.7 x 2.8 x 2.7 x 2.2 x relative to statutory requirement Costs / Operating profit 66% 69% 61% 65% 70% 70% 82% Number of employees 550 612 550 577 583 582 612 (FTE) -------------------------------------------------------------------------------- * Adjusted for non-recurring costs for integration and restructuring purposes and other special items (value adjustments, sector costs, etc.). BankNordik acquired activities from Amagerbanken effective 1 July 2011. Further details are available in the 2012 Annual Report. Conference call today BankNordik will review the financial results today at 11.00 (CET) at its customary conference call for analysts and investors. The conference call will be webcast on BankNordik's website, www.banknordik.com. The dial-in number for the conference call is +44 (0) 1452 555131. Participants are kindly asked to call in a few minutes before the conference begins. For further information, please contact: Janus Petersen, CEO, tel. (+298) 330 340 Árni Ellefsen, CFO, tel. (+298) 330 348 Investor Relations: info@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 100 years ago, the Group has 180,000 customers, total assets of DKK 18bn and 531 employees. The Bank is subject to the supervision of the Danish Financial Supervisory Authority and is listed on NASDAQ OMX. www.banknordik.dk. |
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