The January-March 2004 report for Spar Nord Bank

Transcription

1 To the Copenhagen Stock Exchange 28 April 2004 Stock Exchange Announcement no. 6, 2004 Contact: Keld Gammelgaard. Phone: The January-March 2004 report for Spar Nord Bank DKK 101.0m profit before tax and upward revision Annualized 19.2% return on equity before tax Core earnings amounted to DKK 81.5m versus DKK 54.3m in the initial quarter of 2003 DKK 19.5m in earnings from investment portfolios versus DKK 13.2m 9.0% growth in deposits, and loans and advances up 2.6% on first quarter of 2003 In the first three months of the year, Spar Nord Bank recorded a pre-tax profit of DKK 101.0m versus last year s DKK 67.5m in the same period, a performance Management considers satisfactory. The result is equal to a return on equity before tax of 19.2% per annum. This performance surpasses projections, allowing the Bank to lift the full-year forecast from DKK m to DKK m (before tax), incl. the projected DKK 44m gain on further sales of shares in Totalkredit, but excl. earnings on investment portfolios. This profit improvement is attributable to all business areas, but particularly Trading, Financial Markets and the subsidiary, Finans Nord. An approx. 0.2 pct. narrowing of the interest margin meant that net interest income dropped by 4.3 pct. to DKK 211.8m. The narrowing interest margin is due in part to the Bank s introduction of new home-buying products and to ever-keener competition among mortgage-credit institutions and banks in general. Net income from fees and charges grew by 11.0% to DKK 78.9m. This increase can be attributed to the mounting activity level in the Trading, Financial Markets and the continually growing number of mortgage-credit loans arranged. Spar Nord Bank A/S Skelagervej 15 P. O. Box 162 DK-9100 Aalborg Spar Nord Bank A/S, CVR nr , Aalborg Market-value adjustments almost doubled compared with the first three months of 2003, rising to DKK 33.2m in the January to March quarter of In the same period last year, market-value adjustments amounted to DKK 17.2m. This advance was realized because the Trading, Financial Markets recorded rising earnings, and the market value of the Bank s shares in DLR Kredit and Bankinvest was adjusted. Telephone Telefax Telex spano dk Swift spno dk 22 Internet sparnord@sparnord.dk Page 1 of 8

2 Market-value adjustment of participating interests ended at DKK 11.6m versus the DKK -5.4m in the first three months of This improvement is due to SDC s changed price structure, whereby a price increase of about 12 pct. reversed last year s loss up to the break-even point. To this should be added DKK 7.2m carried to income with reference to the profits recorded by SDC and Nørresundby Bank for Total costs rose from DKK 210.4m in the same period last year to DKK 223.9m in the first quarter of 2004, equal to 6.4 pct. As mentioned above, this is due to higher computer processing costs and the establishment of new local banks outside North Jutland. In autumn 2003, new branches were opened in Vejle and Odense, and in May 2004 Spar Nord Horsens will open for business. Finally, the Bank held 31 shareholder meetings with about 16,000 shareholders attending. No shareholder meetings were held in Total costs are expected to increase by 5-6 pct. for all of Losses and provisions are developing as expected, down 12.2 pct. to 43.3m in the January to March quarter Total provisions amounted to DKK 664.3m, a slight decline on last year, while non-performing loans fell from DKK 290.9m to DKK 147.0m. Thus, provisions are now 4.5 times higher than non-performing loans, compared to 2.3 times at 31 March last year, which is very gratifying. Earnings from investment portfolios developed on a satisfactory note, amounting to DKK 19.5m for the first three months of 2004, including the DKK 1.7m loss recorded by Erhvervsinvest Nord, compared with DKK 13.2m in earnings from investment portfolios recorded in the first quarter of In connection with the establishment of Erhvervsinvest K/S, in which the Bank has a 22.0 pct. interest, the Bank s own venture activities have ceased, for which reason the return on investments in unlisted shares will be considered earnings from investment portfolios in future. Deposits and loans & advances Deposits bounced by 9.0% to DKK 18,063m, while loans and advances edged up 2.6% to DKK 17,532m. Spar Nord Horsens In February 2004 the decision was made to open a local bank in Horsens. Spar Nord Horsens will start off with a staff of eight people and will open officially on 12 May, Spar Nord s 180th birthday. We have had excellent experience so far with setting up branches outside North Jutland and have recorded a heavier customer intake than anticipated. Solvency ratio At 31 March 2004, the solvency ratio stood at 10.3% compared with 11.1% at the end of the first three months of The core capital percentage has been calculated at 8.8 versus 8.2 in the first quarter of If the post-tax profit for the quarter is added, the solvency ratio stood at 10.9 pct, and the core capital percentage at 9.2 pct. In the first quarter of 2004, Spar Nord raised a DKK 150m loan, ranking as supplementary capital. Spar Nord Bank A/S, CVR nr , Aalborg The background for floating the loan is that Spar Nord Bank has redeemed a loan of EUR 40m prematurely. The loan, arranged by Nykredit Bank, has a term to maturity of six years and an option for premature redemption after three years. The loan has been arranged as a bond loan bearing interest at a fixed rate of 4.10 pct. during the first three years. The bonds will be listed on the Copenhagen Stock Exchange. Page 2 of 8

3 Outlook for 2004 The 2003 Annual Report projected earnings for 2004 to reach the DKK m range, including DKK 44m from the sale of shares in Totalkredit, but excluding earnings from investment portfolios. In view of the profit recorded in the January to March quarter this year, Management has decided to raise the projection to the DKK m range. Please direct any queries you may have to Lasse Nyby, Chief Executive Officer, who can be reached on phone Sincerely yours, Spar Nord Bank Poul Lauritsen Chairman of the Supervisory Board Lasse Nyby Chief Executive Officer Page 3 of 8

4 Other comments on the interim report Spar Nord Bank shares held by the Supervisory Board and the Executive Board: 21 January April 2004 Niels Ole Arndt Henrik Hougaard 1,810 1,810 Erling Kjær 1,193 1,193 Poul Lauritsen 4,764 4,764 Per Søndergaard 2,746 2,755 Torben Fristrup Michael Budolfsen Ole Skov Birthe Kiel Jensen *) 227 Trine Haals **) 204 Lasse Nyby 3,489 3,489 John Lundsgaard 3,807 3,807 Lars Møller 3,726 3,726 *) Birthe Kiel Jensen retired from the Supervisory Board on 31 March **) Trine Haals joined the Supervisory Board on 1 April Note: The holdings include all shares held by the entire household. Accounting policies The Interim Report of Spar Nord Bank has been prepared pursuant to the rules laid down in the Danish Act on Financial Operations, the Recommended Accounting Procedures for Financial Institutions and the guidelines issued by the Danish Financial Supervisory Authority. The accounting and consolidation policies have been applied consistently with the previous fullyear accounts. In addition, the Financial Statements have been prepared pursuant to the rules of the Copenhagen Stock Exchange on disclosure obligations for issuers of listed securities and prevailing Danish Accounting Standards, subject to such departures and modifications as follow from the Recommended Accounting Procedures for Financial Institutions. Page 4 of 8

5 Financial Highlights the Spar Nord Bank A/S Group Excerpts from the Profit and Loss Account DKK million Net interest income... Net income from fees, charges and commissions Dividends on shares, etc.... Market-value adjustments *... Other ordinary income... Revaluation of participating interests... Core income... 1 Q 1 Q Increase in per cent Operating costs and depreciation *... Core earnings before losses and provisions Losses and provisions... Core earnings Earnings from investment portfolios... Profit before tax Estimated tax... Net profit for the year Balance sheet total DKK million Total assets... Deposits... Loans and advances... Guarantees etc.... Shareholders equity... Subordinated capital investments Key ratios Return on equity before tax... Return on equity after tax... Cost share of core income... Cost share of core income, incl. losses and provisions... Losses and loan loss provisions, pct... Solvency ratio, pct... Core capital, pct The Spar Nord Bank share Earnings before tax per share... Official price, year-end... Net asset value, incl. profit/loss for the period Price/net asset value * An adjustment has been made for capital gains on own shares bought to cover the Bank s Management Incentive Scheme. Payroll costs have also been adjusted. Page 5 of 8

6 Financial Highlights the Spar Nord Bank A/S Group Excerpts from the Profit and Loss Account DKK million Net interest income... Net income from fees, charges and commissions... Dividends on shares, etc... Market-value adjustments *... Other ordinary income... Revaluation of participating interests... Core income... Operating costs and depreciation *... Core earnings before losses and provisions... Losses and provisions... Core earnings... Earnings from investment portfolios... Earnings from sale of Totalkredit... Profit before tax... Estimated tax... Net profit for the year... 1 Q 2 Q 3 Q 4 Q 1 Q Balance sheet total DKK million Total assets... Deposits... Loans and advances... Guarantees etc... Shareholders equity... Subordinated capital investments... 32,710 34,332 32,006 32,401 33,423 16,573 17,319 17,407 17,541 18,063 17,095 17,441 17,273 17,836 17,532 3,585 3,568 3,661 3,777 4,019 1,975 2,031 2,063 2,067 2, ,056 1,058 1, Key ratios Return on equity before tax... Return on equity after tax... Cost share of core income... Cost share of core income, incl. losses and provisions... Losses and loan loss provisions, pct.... Solvency ratio, pct.... Core capital, pct Spar Nord Bank A/S, CVR nr , Aalborg The Spar Nord Bank share Earnings before tax per share... Official price, year-end... Net asset value, incl. profit/loss for the period Price/net asset value * An adjustment has been made for capital gains on own shares bought to cover the Bank s Management Incentive Scheme. Payroll costs have also been adjusted. Page 6 of 8

7 Spar Nord Bank Spar Nord Bank Spar Nord Bank Spar Nord Bank The Group The Group Parent Company Parent Company 1 Q Q Q Q 2003 DKK 000 DKK 000 DKK 000 DKK 000 INCOME STATEMENT Interest income... Interest expenses... Net income from interest... Dividends on shareholdings... Fees, charges and commissions receivable... Fees, charges and commissions payable... Net income from interest, fees and charges... Market-value adjustments... Other ordinary income... Staff costs and administrative expenses... Depreciation and writedown of intangible and tangible assets... Other ordinary expenses... Losses and provisions for losses... Profit on investments in associated and affiliated companies... Profit/loss on ordinary operations before tax... Tax... Profit/loss , , , , , , , , , , , ,694 5,719 7,570 5,719 7,570 89,533 81,522 88,576 81,606 10,597 10,433 10,438 10, , , , ,542 47,667 22,748 47,856 22,756 8,272 5,390 4,552 4, , , , ,881 10,004 12,759 8,900 11,581 2, , ,349 49,349 37,517 43,915 11,581-5,475 19, ,039 67,477 97,676 64,842 28,283 19,831 24,920 17,196 72,756 47,646 72,756 47,646 Page 7 of 8

8 Spar Nord Bank Spar Nord Bank Spar Nord Bank Spar Nord Bank The Group The Group Parent Company Parent Company DKK 000 DKK 000 DKK 000 DKK 000 ASSETS Cash in hand and claims at call on central banks... Claims on credit institutions and central banks... Loans and advances... Bonds... Shares, etc... Capital holdings in associated companies, etc.... Capital holdings in affiliated companies... Intangible assets... Tangible assets... Own capital holdings... Other assets... Prepayments and accrued income... Total assets... 1,645, ,329 1,645, ,329 2,006,902 2,445,913 2,006,877 2,443,599 17,531,962 17,095,491 17,029,676 16,664,534 8,785,796 8,590,246 8,785,796 8,590,246 1,307,051 1,049,950 1,241, , , , , ,170 6,030 5, , ,559 39,302 43,393 10,928 12, , , , ,889 16, ,881 16, ,881 1,020,762 1,660,970 1,022,044 1,664,245 41,046 37,181 37,688 36,628 33,423,150 32,710,407 33,097,514 32,444,351 LIABILITIES Debt to credit institutions and central banks... Deposits... Other liabilities... Accrued expenses and deferred income... Provisions for commitments... Subordinated capital investments... 10,177,637 10,700,592 10,177,637 10,700,592 18,063,356 16,572,753 18,108,222 16,630,320 1,944,366 2,330,749 1,746,655 2,155,246 64,728 57,681 6,519 6, , ,844 11,509 12, , , , ,038 Shareholders Equity Share capital... Reserve for treasury shares... Other reserves... Brought forward from prior years... Profit for the year to date (after tax)... Total shareholders equity... Total liabilities , , , ,848 16, ,881 16, , ,982 81, , ,384 1,419,270 1,226,132 1,264,845 1,091,991 72,756 47,646 72,756 47,646 2,140,188 1,974,750 2,140,188 1,974,750 33,423,150 32,710,407 33,097,514 32,444,351 Off-balance sheet items Guarantees, etc... Other commitments... Total off-balance sheet items... 4,018,937 3,585,323 4,716,717 3,983,129 31,315 26,000 31,315 26,000 4,050,252 3,611,323 4,748,032 4,009,129 Capital Movements Shareholders equity, beginning of the year... Change in valuation of unlisted shares... Profit for the year to date (after tax)... Shareholders equity, incl. profit/loss for the period... 2,067,432 1,765,723 2,067,432 1,765, , ,381 72,756 47,646 72,756 47,646 2,140,188 1,974,750 2,140,188 1,974,750 The share capital consists of 5,188,480 shares in the denomination of DKK 100. Page 8 of 8