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Ringkjøbing Landbobank’s quarterly report for the first three quarters of 2021

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·29-min read
In this article:
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Nasdaq Copenhagen
London Stock Exchange
Euronext Dublin
Other stakeholders

27 October 2021


Ringkjøbing Landbobank’s quarterly report for the first three quarters of 2021

The bank delivers core earnings of DKK 1,121 million and profit before tax of DKK 1,105 million. The profit before tax is equivalent to a 17.6% p.a. return on equity.


Core earnings

(DKK million)

Q1-Q3
2021

Q1-Q3
2020


2020

2019

2018


2017

Total core income

1,782

1,613

2,179

2,116

2,001

1,917

Total expenses and depreciation

600

576

788

805

866

845

Core earnings before impairment charges for loans

1,182

1,037

1,391

1,311

1,135

1,072

Impairment charges for loans etc.

-61

-185

-223

-100

-43

-70

Core earnings

1,121

852

1,168

1,211

1,092

1,002

Result for the portfolio etc.

-4

-24

-9

+49

+77

+84

Special costs

12

11

15

15

217

22

Profit before tax

1,105

817

1,144

1,245

952

1,064


Highlights of the first three quarters of 2021

  • The profit before tax is DKK 1,105 million, equivalent to a 17.6% p.a. return on equity

  • Core income increases by 11% to DKK 1,782 million following nine months of high activity levels

  • Expenses increase by 4% to DKK 600 million

  • The rate of costs decreases to 33.7%

  • Continued increase in new customers results in growth of 9% in the bank’s loans compared to September 2020

  • The purchase of BIL Danmark was satisfactorily completed and implemented in the third quarter

  • Image and customer satisfaction are rated among the best in Voxmeter surveys

  • The results for the year are expected to be at the upper end of the upwardly adjusted ranges.


Yours sincerely

Ringkjøbing Landbobank

John Fisker


Management’s review

Core income

Interest
Net interest income was DKK 988 million in the first three quarters of 2021, compared to DKK 935 million in the same period in 2020, an increase of 6%. The bank is satisfied with this development.

The development is partly attributable to a 9% increase in lending compared to the end of September 2020 including the clients taken over from BIL Danmark, while the increase excluding them was 7%. The increase in lending is broadly based and relates to both niches and retail.

The interest margin was slightly lower in the third quarter compared to a year ago, although the bank lowered the threshold for negative interest on personal customers’ deposits to DKK 100,000 with effect from the beginning of January 2021. With effect from 1 July 2021, the bank lowered the interest rate on deposits from business customers. The interest margin on the bank’s loans has thus been under pressure.

The deposit interest rate for corporate customers will be lowered by 0.1 percentage points by early November 2021 and by early December 2021 also for private customers. This is due to the lowering of the interest rate by Denmark’s National Bank per 1. October 2021.


Fee, commission, and foreign exchange income
Fee, commission, and foreign exchange income amounted to DKK 657 million in the first three quarters of 2021, compared to DKK 569 million in the same period in 2020, an increase of 15%. The bank is highly satisfied with this development, and the increase reflects a very high level of activity – especially in the first quarter of the year. However, the general levels of activity in both the second and third quarters of 2021 continued at a higher level.

The bank’s focus on the private banking segment has had a positive effect on the “Securities trading”, “Asset management and custody accounts” and “Foreign exchange income” items in particular.

Due to the high levels of activity and the continued large increase in new customers, the item “Guarantee commission and mortgage credit commission etc.” also developed positively compared to the first three quarters of 2020. The item “Loan fees” also increased in 2021, although the respective activity level has been declining slightly during 2021.

Initiatives aimed at normalising the income from payment handling activities were announced with effect from 1 April 2021. These initiatives are reflected in the income from “Payment handling”, which has improved compared to the first three quarters of 2020.

The income from “Other fees and commission” developed positively compared to 2020. This is partly attributable to the bank’s focus on the pension and insurance activities.


Sector shares and other operating income
Earnings from sector shares totalled DKK 132 million in the first three quarters of 2021, compared to DKK 108 million in the same period in 2020. The earnings derive primarily from returns on the bank’s ownership interests in DLR Kredit, BankInvest (BI Holding) and PRAS.

Other operating income stood at DKK 5 million in the first three quarters of the year, in contrast to 2020, when the figure was DKK 1 million. The other operating income for the year relates primarily to the sale of a property.


Core income
Total core income increased by 11%, from DKK 1,613 million in 2020 to DKK 1,782 million in 2021.


Expenses, depreciation, and write-downs
Total expenses including depreciation and write-downs on tangible assets amounted to DKK 600 million in the first three quarters of 2021, compared to DKK 576 million in 2020, an increase of 4%.

The increase in the cost level reflects the high levels of activity and the purchase of BIL Danmark.

The rate of costs was 33.7% in the first three quarters of the year, compared to 35.7% in 2020.


Impairment charges for loans etc.
The bank’s expenditure for losses and impairment charges was DKK 13 million in the third quarter of 2021, compared to DKK 19 million in the second quarter and DKK 29 million in the first quarter. The total expenditure for losses and impairment charges was DKK 61 million in the first nine months of the year, compared to DKK 185 million in the same period in 2020.

The bank’s expenditure for losses and impairment charges has thus fallen each quarter since the first quarter of 2020.

The credit quality of the bank’s loans portfolio is generally judged to be good. The negative consequences of the coronavirus pandemic have so far been very limited for the vast majority of the bank’s customers. However, over the last few months we have seen growing challenges for several businesses due to shortages of components and increasing cost prices, including increasing energy prices. There is also still some risk associated with ending of the government’s loan schemes, which has now been postponed to 2022.

The bank increased its management estimates for losses and impairment charges considerably during 2020, from DKK 126 million to DKK 566 million. At the end of the third quarter of 2021, the management estimates increased to DKK 614 million.

Among industry-specific events is the considerable decrease in pig prices during the third quarter. The prices paid to farmers are currently at a level which results in operating losses for the vast majority of pig producers. Loans and guarantees to pig farms accounted for 1.3% of the bank’s total exposure at the end of September, and the bank’s impairment ratio was 26%.

The credit quality of the bank’s personal customers is generally judged to be good. The marked price increases on the housing market in the past few quarters have increased the wealth of many of them. On the other hand, the bank is aware that the continuing rise in house prices may lead to an increased risk – in particular in respect of first-time buyers.

The bank’s total account for impairment charges was DKK 2,287 million at the end of September 2021 compared to DKK 2,205 million at the end of 2020. Fifty-one percent of the total account for impairment charges was classified as stage 1 or 2 exposures.

The bank’s total loans to customers with suspended calculation of interest were DKK 142 million at the end of September 2021, compared to DKK 265 million at the end of December 2020.


Core earnings
Core earnings for the first three quarters of 2021 were DKK 1,121 million compared to last year’s DKK 852 million, an increase of 32%.

(DKK million)

Q1-Q3
2021

Q1-Q3
2020


2020

2019

2018


2017

Total core income

1,782

1,613

2,179

2,116

2,001

1,917

Total expenses and depreciation

600

576

788

805

866

845

Core earnings before impairment charges for loans

1,182

1,037

1,391

1,311

1,135

1,072

Impairment charges for loans etc.

-61

-185

-223

-100

-43

-70

Core earnings

1,121

852

1,168

1,211

1,092

1,002

Core earnings per share were DKK 39.1 for the first three quarters of 2021 compared to DKK 29.3 in 2020.


Result for the portfolio etc.
The result for the portfolio etc. including funding costs for the portfolio was negative by DKK 4 million net for the first three quarters of the year. In the same period in 2020, the result for the portfolio etc. was negative by DKK 24 million net. The result for the portfolio in the third quarter of 2021 was negative by DKK 1 million, due to increases in long-term interest rates.


Amortisation and write-downs on intangible assets
The bank treats amortisation and write-downs on intangible assets as a special item, since expensing them enhances the quality of equity and helps to reduce the deduction when computing total capital. Amortisation and write-downs on intangible assets amounted to DKK 12 million in the first three quarters of the year, which is marginally higher than in 2020, due to amortisation of the purchase of the client portfolio from BIL Danmark.


Profit before and after tax
The profit before tax was DKK 1,105 million, equivalent to a 17.6% p.a. return on average equity.

The profit after tax was DKK 875 million, equivalent to a 14.0% p.a. return on average equity.


Balance sheet items and contingent liabilities
The bank’s balance sheet total at the end of September 2021 stood at DKK 57,562 million, compared to DKK 53,956 million at the end of September 2020.

Relative to September 2020, the bank’s deposits including pooled schemes increased by 6% from DKK 39,204 million to DKK 41,475 million at the end of September 2021, while its loans in the same period increased by 9% from DKK 35,479 million to DKK 38,849 million.

The bank’s contingent liabilities including guarantees at the end of September 2021 amounted to DKK 10,886 million, compared to DKK 9,590 million at the end of September 2020.


Credit intermediation
In addition to the traditional bank loans shown on its balance sheet, the bank also arranges mortgage loans on behalf of both Totalkredit and DLR Kredit.

The development in the bank’s total credit intermediation is positive by 9% compared to the end of September 2020. The development is shown in the following summary:

Total credit intermediation

30 Sep.
2021
DKK million

30 Sep.
2020
DKK million

31 Dec.
2020
DKK million

Loans and other receivables at amortised cost

38,849

35,479

36,241

Arranged mortgage loans and funded home loans – Totalkredit

42,702

38,740

39,454

Arranged mortgage loans – DLR Kredit

9,818

9,452

9,511

Total

91,369

83,671

85,206


Securities and market risk
The item “Shares etc.” amounted to DKK 1,418 million at the end of September 2021, with DKK 27 million in listed shares and investment fund certificates and DKK 1,391 million in sector shares etc., mainly in the companies DLR Kredit, BI Holding and PRAS.

The bond portfolio amounted to DKK 6,428 million, of which the vast majority consisted of AAA-rated Danish government and mortgage credit bonds.

The total interest rate risk – impact on profit of a one percentage point change in interest level – was computed as 0,6% of the bank’s tier 1 capital on 30 September 2021.

The bank’s risk of losses calculated on the basis of a Value at Risk model (computed with a 10-day horizon and 99% probability) was as follows in the first three quarters of 2021:

Risk in DKK million

Risk relative to equity
end of period in %

Highest risk of loss

15.0

0.17%

Lowest risk of loss

4.4

0.05%

Average risk of loss

10.3

0.12%

End-of-period risk of loss

5.3

0.06%

The bank’s total market risk within exposures to interest rate risk, listed shares etc. and foreign currency remains at a moderate level, and this policy will continue.


Liquidity
The bank’s liquidity situation is good. The bank’s short-term funding with term to maturity of less than 12 months thus amounts to DKK 1.5 billion, balanced by DKK 10.0 billion in short-term deposits in Danmarks Nationalbank, the central bank of Denmark, and in liquid tradable securities.

The bank’s deposits (excluding pooled schemes) and equity exceeded its loans by DKK 6.0 billion and these two items therefore more than fully finance the loan portfolio. In addition, part of the loan portfolio for renewable energy projects is financed back-to-back with KfW Bankengruppe, which means that DKK 1.1 billion can be disregarded in terms of liquidity.

In terms of liquidity coverage ratio (LCR), the bank must comply with the statutory requirement of at least 100%. On 30 September 2021, the bank’s LCR was 196%, which thus met the statutory requirement by a good margin.


Capital structure
The bank’s equity at the beginning of 2021 was DKK 8,146 million. The profit for the period must be added to this, while the dividend paid, and the value of the bank’s own shares bought must be subtracted. After this, equity at the end of September 2021 was DKK 8,563 million.

The bank’s total capital ratio and tier 1 capital ratio were 21.0% and 17.4% respectively at the end of September 2021.

Capital ratios

Q3
2021

Q3
2020


2020

2019

2018

Common equity tier 1 capital ratio (%)

17.4

17.8

17.5

14.7

14.6

Tier 1 capital ratio (%)

17.4

17.8

17.5

14.7

14.6

Total capital ratio (%)

21.0

21.6

21.1

20.0

18.4

MREL requirement (%) – fixed by the Danish FSA

17.9

20.2

17.9

20.7

19.7

MREL capital ratio (%)

26.8

29.2

26.7

27.3

24.9

A new five-year phasing-in period for the dynamic component of the IFRS 9 transitional arrangements was introduced in 2020. The bank now uses both the static and the dynamic components of the IFRS 9 transitional arrangements, including the simplified approach to recalculation of capital requirements.

Calculated without the IFRS 9 transition programmes, the bank’s total capital ratio was 19.7% and the common equity tier 1 capital ratio 16.1% on 30 September 2021.

In the second quarter of 2021, the bank started using a new system for calculating the risk-weighted items. The system was delivered by Moody’s and implemented at the bank’s IT supplier, Bankdata. The system ensures continuous updating in line with future legislative amendments.

At the end of September 2021, the bank has calculated the individual solvency requirement at 9.3%. To this should be added a capital conservation buffer of 2.5%. The total requirement for the bank’s total capital was thus 11.8% at the end of September 2021.

The countercyclical capital buffer is currently 0%. On 23 June 2021 the Minister for Industry, Business and Financial Affairs decided to re-activate the countercyclical capital buffer at 1.0% from 30 September 2022.

On 28 September 2021, the Systemic Risk Council published a press release stating that the Council expects to recommend a 1.0 percentage point increase of the buffer rate to 2.0% at its meeting in December 2021. This will allow the increase to 2.0% to take effect at the end of 2022. The Council also stated that it is assessing the need for activating the systemic buffer. The Council expects to assess whether the buffer should be activated – and if so at what level – during 2022.

Compared with the actual total capital of DKK 8.7 billion, the bank had excess capital cover of DKK 4.9 billion relative to the individual solvency requirement, equivalent to 11.7 percentage points at the end of September 2021, and excess capital cover of DKK 3.8 billion compared to the total requirement, equivalent to 9.2 percentage points.

In October 2021, the bank issued additional tier 2 capital for a total of DKK 500 million. All else being equal, this improves the total capital ratio by 1.2 percentage points.

In December 2020, the bank received an MREL requirement of 17.9% applicable from 28 December 2020.

The bank operates with three different capital targets. The capital targets specify that the common equity tier 1 capital ratio must be at least 13.5%, the total capital ratio at least 17% and the MREL capital ratio for covering the MREL requirement at least 23.5%, including the capital buffers. Due to the announced increase of the countercyclical capital buffer, the bank’s internal MREL target will be re-assessed during 2022.

All capital targets must be met at the end of the year, but the capital ratios may fluctuate over the year. However, the MREL requirement must always be met.

To meet the MREL requirement the bank has since December 2018 and up to and including September 2021 issued non-preferred senior capital for the equivalent of a total of DKK 1.9 billion. In addition, a total of DKK 0.5 billion can be included. The latter will be phased out with effect from 1 January 2022.

The bank’s capital for covering the MREL requirement totalled DKK 11,2 billion on 30 September 2021, equivalent to an MREL capital ratio of 26.8%. The excess cover relative to the MREL requirement on 30 September 2021 was thus 8.9 percentage points.


Share buy-back programme and capital reduction
The bank’s annual general meeting of 3 March 2021 renewed the previous authorisation of the board of directors to permit the bank, in accordance with applicable law, to acquire its own shares to a total nominal value of 10% of the bank’s share capital.

In the first three quarters of the year, the bank initiated and completed two share buy-back programmes. In the period 4 February to 29 July 2021, a total of 361,605 shares were bought back, the equivalent of DKK 225 million, and in the period 5 August to 28 September 2021, a total of 40,400 shares were bought back, the equivalent of DKK 30 million.

On 15 September 2021, the board of directors decided to initiate a new share buy-back programme. The programme runs from 1 October 2021 up to and including 25 January 2022. During this period the bank will buy its own shares for up to DKK 242.5 million under the programme, but with a maximum of 800,000 shares. The share buy-back amount corresponds to the portion of the buy-back that was planned for 2020 but not executed due to the coronavirus situation. On 22 October 2021, 61,000 shares had been bought back under the programme.

The general meeting further decided to cancel the 160,600 of the bank's own shares that were bought in 2020. The capital reduction was finalised on 6 May 2021.

On 30 September 2021, the bank’s actual share capital was thus DKK 28,665,716 in nom. DKK 1 shares: see below.

Number of shares

Beginning of 2021

29,228,321

Capital reduction completed by cancellation of own shares

-160,600

After the capital reduction in May 2021

29,067,721

Share buy-back programmes totalling DKK 255 million

Bought under the share buy-back programmes

-402,005

Actual number of shares on 30 September 2021

28,665,716

DKK 242.5 million share buy-back programme

Bought under the share buy-back programme in October 2021

-61,800

Actual number of shares on 22 October 2021

28,603,916


The Supervisory Diamond
The bank complies with the Danish FSA’s Supervisory Diamond which contains a number of benchmarks and associated limit values which Danish banks must observe. With effect from 1 July 2021, the “Funding ratio” benchmark was removed from the Supervisory Diamond.

The Supervisory Diamond benchmarks and limit values and the bank’s key figures are given in the following table.

Benchmark

Limit value

Q3
2021

Q3
2020

2020



2019



2018

Liquidity benchmark

> 100%

191.3%

205.6%

177.6%

193.2%

179.5%

Total large exposures

< 175%

112.8%

104.9%

99.8%

121.0%

106.0%

Growth in loans

< 20%

9.4%

2.1%

2.2%

6.3%

*72.3%

Real property exposure

< 25%

18.0%

18.0%

17.9%

17.5%

15.8%

* The increase was mainly caused by the merger with Nordjyske Bank. The pro forma growth in loans for the full year 2018 was 7.0%.

As shown above, Ringkjøbing Landbobank meets all four current limit values by a good margin.


Rating
The bank is rated by the international credit rating agency Moody’s Investors Service.

Moody’s confirmed the bank’s ratings on 22 September 2021, including Aa3 for long-term bank deposits, P-1 for short-term bank deposits and A1 for long-term issuer – all with stable outlook.


BIL Danmark
In June 2021, the bank entered into an agreement with Banque Internationale à Luxembourg S.A., of Luxembourg, regarding takeover of all BIL Danmark’s clients. The client transfer process was completed satisfactorily in the third quarter of 2021 and the clients taken over will now be served by the bank’s employees, including those who were transferred from BIL Danmark.

The takeover of the BIL Danmark client portfolio strengthens the bank’s position in private banking.


Increase in customers and Voxmeter survey ratings
Both of the bank’s brands are placed high in Voxmeter’s annual Image and Reputation survey published in September 2021: the “Ringkjøbing Landbobank” brand takes first place and the “Nordjyske Bank” brand takes fourth place.

The poll thus ideally supplements Voxmeter’s customer satisfaction survey published in January 2021, which also ranked the bank among the best in the Danish banking sector.

Both surveys are by far the biggest in Denmark and based on more than 39,000 and more than 60,000 respondents respectively.

The high level of customer satisfaction and the bank’s image and reputation have contributed to the continued highly satisfactory growth in new customers and good retention of customers in 2021, like in previous years.


Organisational adjustments
In the third quarter of 2021, the bank has decided various adjustments to its organisational structure and administrative set-up for implementation during the fourth quarter of 2021 and the first quarter of 2022.

The aim of all the adjustments is to strengthen the bank’s specialist environments to ensure the continued best possible advisory services and experience for its customers.

The employees in the bank’s branch in Hvide Sande will in future be permanently attached to Ringkøbing, but the Hvide Sande branch will continue to be the venue for customer meetings etc.

The bank’s branch on Kastetvej in Aalborg will be combined with the branch in Hasseris, Aalborg. This will make Hasseris one of the bank’s largest retail customer branches.

Central Production in North Jutland has so far been located in both Nørresundby and Frederikshavn. In the future, Central Production will be in one location in Frederikshavn.


The coronavirus situation
We see support of our customers and business partners during the coronavirus pandemic as an important part of our task. From the start of the pandemic we have, of course, also placed great emphasis on protecting our employees to lessen the risk of transmission of the virus.

The bank has thus prepared for operating in an ever-changing environment due to the coronavirus situation and for potential reintroduction of varying restrictions.

The bank supports the Government’s and Finance Denmark’s declaration of intent of 9 September 2021 regarding termination of the governmental loan schemes.


Expected results for 2021
On publication of the 2020 annual report, the bank announced its expectations for core earnings for 2021 in the range DKK 1,100-1,300 million and profit before tax in the range DKK 1,000-1,300 million.

On 8 June 2021, the bank upwardly adjusted its expectations for 2021, primarily as a result of a better income flow than previously expected, due to a continued large increase in customers and a high level of activity among other things.

The upwardly adjusted expectations for the full year are core earnings in the range DKK 1,300-1,500 million and profit before tax in the range DKK 1,200-1,500 million. The upwardly adjusted expectations are maintained, but we now expect results at the upper end of the ranges.


Accounting policies
The accounting policies are unchanged relative to those in the submitted and audited 2020 annual report.


Key figures

Q1-Q3
2021

Q1-Q3
2020

Full year
2020

Key figures for the bank (percent)

Profit before tax as a percentage of average equity, per annum

17.6

14.1

14.5

Net profit as a percentage of average equity, per annum

14.0

11.3

11.7

Rate of costs

33.7

35.7

36.2

Common equity tier 1 capital ratio

17.4

17.8

17.5

Tier 1 capital ratio

17.4

17.8

17.5

Total capital ratio

21.0

21.6

21.1

MREL requirement – fixed by the Danish FSA

17.9

20.2

17.9

MREL capital ratio

26.8

29.2

26.7

Key figures per DKK 1 share (DKK)

Core earnings

39.1

29.3

40.2

Net profit

38.5

22.6

31.6

Book value

298.7

271.2

280.2

Share price, end of period

741.0

482.0

554.0

Basis of calculation, number of shares

28,665,716

29,067,721

29,067,721


Quarterly overviews

Core earnings

Q3
2021

Q2
2021

Q1
2021

Q4
2020

Q3
2020

Q2
2020

Q1
2020

Q4
2019

Q3
2019

Q2
2019

Q1
2019

(DKK million)

Net interest income

336

327

325

321

319

311

305

292

294

296

291

Net fee and commission income excluding
securities trading

170

166

159

156

147

136

152

154

163

159

150

Income from sector shares etc.

49

43

40

43

38

35

35

36

36

36

37

Foreign exchange income

14

13

16

13

9

9

10

8

9

8

6

Other operating income

0

1

4

1

0

1

0

5

7

0

1

Total core income excluding securities
trading

569

550

544

534

513

492

502

495

509

499

485

Securities trading

34

29

56

32

39

28

39

35

29

23

41

Total core income

603

579

600

566

552

520

541

530

538

522

526

Staff and administration expenses

191

195

198

206

179

190

191

202

180

198

198

Depreciation and write-downs on tangible assets

3

4

3

4

5

2

3

9

8

4

2

Other operating expenses

2

2

2

2

2

0

4

1

0

2

1

Total expenses etc.

196

201

203

212

186

192

198

212

188

204

201

Core earnings before impairment charges for loans

407

378

397

354

366

328

343

318

350

318

325

Impairment charges for loans and other
receivables etc.

-13

-19

-29

-38

-44

-66

-75

-25

-26

-24

-25

Core earnings

394

359

368

316

322

262

268

293

324

294

300

Result for the portfolio etc.

-1

+7

-10

+15

+17

+29

-70

-4

+20

+7

+26

Amortisation and write-downs on intangible assets

4

4

4

4

3

4

4

4

3

4

4

Profit before tax

389

362

354

327

336

287

194

285

341

297

322

Tax

87

71

72

64

64

60

36

62

66

76

63

Net profit

302

291

282

263

272

227

158

223

275

221

259


Quarterly overviews – continued

Balance sheet items and contingent liabilities

End of
Q3
2021

End of
Q2
2021

End of
Q1
2021

End of
Q4
2020

End of
Q3
2020

End of
Q2
2020

End of
Q1
2020

End of
Q4
2019

End of
Q3
2019

End of
Q2
2019

End of
Q1
2019

(DKK million)

Loans

38,849

37,268

37,210

36,241

35,479

35,260

36,130

35,465

34,757

34,528

34,195

Deposits including pooled schemes

41,475

41,376

41,766

39,639

39,204

39,670

37,051

38,128

38,554

39,070

37,439

Equity

8,563

8,333

8,132

8,146

7,884

7,612

7,380

7,610

7,426

7,231

7,071

Balance sheet total

57,562

57,123

56,845

54,862

53,956

53,984

51,531

52,941

53,601

52,426

50,266

Contingent liabilities

10,886

11,811

10,370

9,812

9,590

9,379

9,992

9,665

10,836

10,466

7,976

Statement of capital

End of
Q3
2021

End of
Q2
2021

End of
Q1
2021

End of
Q4
2020

End of
Q3
2020

End of
Q2
2020

End of
Q1
2020

End of
Q4
2019

End of
Q3
2019

End of
Q2
2019

End of
Q1
2019

(DKK million)

Common equity tier 1

7,255

7,274

7,122

7,277

7,049

6,973

6,109

6,072

5,624

5,441

5,284

Tier 1 capital

7,255

7,274

7,122

7,277

7,049

6,973

6,109

6,072

5,624

5,441

5,284

Total capital

8,743

8,763

8,614

8,774

8,553

8,507

8,009

8,242

7,786

6,854

6,667

MREL capital

11,167

11,596

10,837

11,112

11,587

11,580

10,985

11,248

10,790

9,551

9,033

Total risk exposure

41,729

41,063

42,271

41,561

39,682

38,900

41,444

41,223

39,547

40,106

38,308

(Percent)

Common equity tier 1 capital ratio

17.4

17.7

16.8

17.5

17.8

17.9

14.7

14.7

14.2

13.6

13.8

Tier 1 capital ratio

17.4

17.7

16.8

17.5

17.8

17.9

14.7

14.7

14.2

13.6

13.8

Total capital ratio

21.0

21.3

20.4

21.1

21.6

21.9

19.3

20.0

19.7

17.1

17.4

MREL capital ratio

26.8

28.2

25.6

26.7

29.2

29.8

26.5

27.3

27.3

23.8

23.6

Statements of income and comprehensive income

Note

Q1-Q3
2021
DKK 1,000

Q1-Q3
2020
DKK 1,000

Full year
2020
DKK 1,000

1

Interest income

1,065,033

1,024,457

1,373,215

2

Interest expenses

66,239

91,921

120,910

Net interest income

998,794

932,536

1,252,305

3

Dividends from shares etc.

77,109

71,106

71,241

4

Fee and commission income

682,258

603,681

814,821

4

Fee and commission expenses

67,968

62,459

85,545

Net interest and fee income

1,690,193

1,544,864

2,052,822

5

Value adjustments

+90,589

+50,546

+126,079

Other operating income

5,110

519

2,054

6,7

Staff and administration expenses

584,303

559,945

765,933

Amortisation, depreciation, and write-downs on
intangible and tangible assets

22,426

20,859

29,241

Other operating expenses

5,830

6,058

8,110

8,12

Impairment charges for loans and other receivables etc.

-68,303

-192,505

-233,348

Results from investments in associated companies and group undertakings

0

0

-13

Profit before tax

1,105,030

816,562

1,144,310

9

Tax

230,062

159,361

224,596

Net profit

874,968

657,201

919,714

Other comprehensive income:

Value changes in pension liabilities

0

0

-561

Total comprehensive income for the period

874,968

657,201

919,153

Core earnings

Note

Q1-Q3
2021
DKK 1,000

Q1-Q3
2020
DKK 1,000

Full year
2020
DKK 1,000

Net interest income

988,131

934,599

1,255,816

4

Net fee and commission income excluding securities
trading

495,101

435,320

591,147

Income from sector shares etc.

131,704

108,010

150,935

4

Foreign exchange income

42,631

28,161

40,759

Other operating income

5,110

519

2,054

Total core income excluding securities trading

1,662,677

1,506,609

2,040,711

4

Securities trading

119,189

105,902

138,129

Total core income

1,781,866

1,612,511

2,178,840

6,7

Staff and administration expenses

584,303

559,945

765,933

Depreciation and write-downs on tangible assets

10,049

9,609

14,241

Other operating expenses

5,830

6,058

8,110

Total expenses etc.

600,182

575,612

788,284

Core earnings before impairment charges for loans

1,181,684

1,036,899

1,390,556

Impairment charges for loans and other receivables etc.

-60,581

-184,783

-223,052

Core earnings

1,121,103

852,116

1,167,504

Result for the portfolio etc.

-3,696

-24,304

-8,194

Amortisation and write-downs on intangible assets

12,377

11,250

15,000

Profit before tax

1,105,030

816,562

1,144,310

9

Tax

230,062

159,361

224,596

Net profit

874,968

657,201

919,714

Balance sheet

Note

30 Sep. 2021
DKK 1,000

30 Sep. 2020
DKK 1,000

31 Dec.
2020
DKK 1,000

Assets

Cash in hand and demand deposits with central banks

3,334,658

665,083

659,004

10

Receivables from credit institutions and central banks

242,884

2,571,061

3,376,233

11,12,13

Total loans and other receivables at amortised cost

38,848,705

35,479,206

36,241,166

Loans and other receivables at amortised cost

37,771,612

34,292,880

35,088,380

Wind turbine loans etc. with direct funding...

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