2015-04-29 07:59:29 CEST
2015-04-29 08:00:31 CEST
REGULATED INFORMATION
BankNordik P/F - Financial Statement Release
BankNordik: DKK 64m profit before tax for the first quarter
BankNordik generated profit before tax of DKK 64m in Q1 2015, in part from high
value adjustments driven by low interest rates. Loans and advances improved for
the third consecutive quarter.
BankNordik's interim report for the first quarter of 2015 shows that the
banking business continues to grow, as reflected by significantly higher fee
income and lending growth in all three of its markets. The Group's insurance
operations also reported growth in premium income, but a harsh winter season
with high claims expenses caused a setback in the technical result. The sharp
drop in interest rates during the quarter will put pressure on earnings going
forward, but it has also produced a large capital gain on the Bank's securities
portfolio.
Following a period of falling interest income, BankNordik recorded a
quarter-on-quarter improvement in net interest income in Q1 2015, as well as
relatively strong year-on-year growth in fee income. On the other hand, large
claims expenses impacted net insurance income. This brought total operating
income for the first three months of 2015 to DKK 182m, down from DKK 187m in
the same period of 2014. However, a substantial improvement in value
adjustments lifted the Q1 consolidated profit before tax to DKK 64m.
“We're very pleased to see our operations improving, and that our earnings are
in line with our guidance, especially given the prevailing conditions of an
exceptionally low level of interest rates,” said BankNordik CEO Janus Petersen.
Outlook for 2015
Management continues to expect profit before impairment charges, non-recurring
items, value adjustments and tax of DKK 200-240m for the full year 2015. For
the first quarter of 2015, this item was DKK 39m.
Net loan impairment charges amounted to DKK 20m in the first quarter of 2015,
consisting of a statistically calculated collective impairment charge of DKK 5m
and a DKK 15m write-down due to the impairment of collateral held on a
particular commercial customer exposure. The Bank considers this to be an
exceptional event and therefore expects a drop in impairment charges for the
full year 2015 compared with the 2014 figure of DKK 85m.
Expectations for future financial developments are inherently subject to risk
and uncertainty, and actual results may differ from expectations.
Solvency and liquidity remaining strong
BankNordik's solvency ratio of 14.6% at 31 March 2015 leaves a margin of 5.8
percentage points to the relatively low capital requirement of 8.9%, which
reflects the Bank's controlled risk profile.
In step with the gradual implementation of the rules governing systemically
important financial institutions (SIFIs) and the new capital adequacy rules
(CRD IV) expectedly beginning in the second half of 2015, the Bank's capital
requirement is expected to increase to close to 14% by the end of 2019.
Accordingly, BankNordik already complies with the upcoming stricter capital
requirements.
In terms of liquidity requirements, BankNordik also had a solid buffer at 30
September 2014, at 2.6 times the statutory requirement.
For additional information, please contact:
Janus Petersen, CEO, tel. (+298) 330 340
Árni Ellefsen, CFO, tel. (+298) 230 348
Johnny í Grótinum, Investor Relations, tel. (+298) 230 380, jig@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 16bn and 504 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
DKK million Q1 2015 Q4 Q3 Q2 Q1
2014 2014 2014 2014
--------------------------------------------------------------------------------
Net interest income 126 125 125 126 133
Net fee income 53 52 45 50 44
Insurance income, excluding claims expenses 1 22 26 20 8
Other operating income 2 3 3 4 3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating income* 182 202 198 201 187
Operating costs* -138 -130 -125 -136 -132
Sector costs, etc. -5 -5 -6 -6 -6
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit before impairment charges* 39 68 67 58 49
Loan impairment charges, net -20 -29 -17 -19 -21
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit* 18 39 50 40 28
Non-recurring items 0 -262 0 1 -2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit before value adjustments 18 -222 50 41 26
and tax
Value adjustments 46 -4 -1 13 4
--------------------------------------------------------------------------------
Profit/Loss before tax 64 -226 49 54 31
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Deposits, etc. DKKbn 12.3 12.6 12.3 12.3 12.0
Loans and advances, etc. DKKbn 10.6 10.5 10.3 10.2 10.4
Equity, DKKbn 2.0 2.0 2.2 2.2 2.1
Solvency ratio 14.6% 14.8% 14.1% 14.6% 14.7%
Liquidity relative to statutory requirement 2.6 x 2.8 x 2.7 x 2.6 x 2.6 x
Income/cost ratio 76% 64% 62% 66% 70%
Number of employees (FTE) at end of period 504 506 513 510 512
--------------------------------------------------------------------------------
* Excluding non-recurring items and value adjustments.
Further details are available in the interim report.
© 2024 Nasdaq, Inc. All Rights Reserved |