Interim Report Q1 2017 Approved and published 27 April 2017
DLR Kredit A/S, Nyropsgade 21, 1780 København V, CVR NR.: 25781309
Contents
Contents Key figures ........................................................................................................................... 3 Q1 2017 highlights ............................................................................................................... 4 Management statement ....................................................................................................... 4 Comments on the Q1 2017 result ........................................................................................ 4 Capital and solvency ............................................................................................................ 7 Risk ...................................................................................................................................... 7 Full-year outlook for 2017 .................................................................................................... 8 Accounting policies .............................................................................................................. 8 Events occurring after the reporting date for Q1 .................................................................. 8 Further information .............................................................................................................. 9 Contacts............................................................................................................................... 9
2
Key figures Year to date
Profit and Loss Account
Administration fee income Other core income, net Interest expenses, senior debt Fee and commission income, net Core income (mortgage credit income) Staff costs and administrative expenses, etc. Other operating expenses Provision for loan and receivable impairment, etc. Results from core activities Portfolio earnings (securities) Profit before tax Profit after tax
Balance Sheet at 31 March
Q1 2017 374 19 -11 -74 308 -61 -3 17 261 42 303 236
Q1 2016 362 17 -10 -74 295 -58 -3 -27 206 43 249 194
Q1 2017
Q1 2016
Assets Loans and advances Bonds and shares Other assets Total assets
140.060 11.471 3.361 154.892
134.237 11.623 2.413 148.274
Liabilities and equity Issued bonds Other debt and payables Equity Total liabilities and equity
140.928 1.458 12.506 154.892
134.797 1.342 12.135 148.274
Q1 2017
Q1 2016
Financial ratios* Return on equity (ROE) Profit before tax in pc of equity Profit after tax in pc of equity Return on hybrid core capital Return on equity excl. hybrid core capital Solvency Capital ratio *** Lending Activity Growth in loan portfolio, pc (nominel) New loans, gross (DKKm) Number of new loans Loan/equity ratio
Com parison w ith other quarters
Ratio 17/16 103 113 116 99 105 105 100 -61 127 98 122 122
Ratio 17/16
Q4 2016
Q3 2016
369 27 -13 -47 337 -62 -4 -2 269 -14 266 200
367 21 -13 -80 295 -57 -4 -25 208 32 256 200
Q2 2016 364 19 -15 -81 287 -56 -4 -44 183 75 267 209
Q1 2016 362 17 -10 -74 295 -58 -3 -27 206 43 249 194
Q4 2016
Q3 2016
Q2 2016
Q1 2016
104 99 139 104
139.053 13.683 3.002 155.737
137.875 14.970 3.964 156.809
136.891 12.673 1.167 150.731
134.237 11.623 2.413 148.274
105 109 103 104
142.074 1.404 12.259 155.737
143.032 1.706 12.072 156.809
137.203 1.206 12.322 150.731
134.797 1.342 12.135 148.274
Q4 2016
Q3 2016
Q2 2016
Q1 2016
2,4% 1,9% 2,1% 1,9%
2,0% 1,6% 2,1% 1,6%
2,1% 1,6% 2,1% 2,2%
2,1% 1,6% 2,1% 1,2%
2,2% 1,7% 2,1% 1,5%
2,0% 1,6% 2,1% 1,6%
14,7%
14,8%
14,3%
14,1%
14,5%
14,8%
0,5 5.904 1.989 11,2
0,5 3.914 1.353 11,1
1,2 8.812 2.775 11,3
0,7 5.513 1.838 11,4
1,4 4.879 1.387 11,1
0,5 3.914 1.353 11,1
*) The financial ratios have been calculated on the basis of the definitions by the Danish Financial Supervisory Authority.
3
Q1 2017 highlights • • • • •
DLR’s core income amounted to DKK 308m in Q1 2017, an increase of DKK 13m on the same period in 2016. Portfolio earnings provided an income of DKK 42m, which is on a par with the same period in 2016. DLR’s pre-tax profit was DKK 303m, which is 22 pc up on Q1 2016. After paying tax and the holders of hybrid core capital (Tier 1), DKK 216m has been added to DLR’s equity capital. DLR’s net lending on agricultural and urban trade property amounted to DKK 0.5bn in Q1.
Management statement Chief Executive Officer Jens Kr. A. Møller states in connection with the release of the interim report for Q1 2017: “DLR’s pre-tax profit for Q1 of DKK 303m is satisfactory and slightly better than expected. The positive trend in lending activity that DLR experienced in 2016 has continued into 2017. Thus gross lending in Q1 of this year was DKK 5.9bn compared to DKK 3.9bn in Q1 2016. Moreover, DLR’s loan portfolio increased by around DKK 0.5bn. Declining yields and subsequently rising bond prices had a positive impact on portfolio return. Going forward, however, low yields will mean reduced interest on DLR’s securities portfolio, which amounts to just over DKK 20bn. The agricultural sector has experienced a number of very difficult years, but given the recent trend in settlement prices for both dairy and pork products, earnings are expected to improve substantially in 2017, which is the main reason for the positive development in DLR’s loss and impairment figures for Q1 2017.”
Comments on the Q1 2017 result Income statement DLR achieved a satisfactory pre-tax profit for the period of DKK 303m, which is DKK 54m up on the same period in 2016. Net profit for the period was DKK 236m. DLR’s earnings primarily stem from: • •
Core earnings: Earnings from mortgage credit activity in the form of administration margins, fees and commissions, etc. less associated administration costs, losses and impairments. Portfolio earnings: Return on securities portfolio.
4
Table 1. Income statement, DKKm.
Profit and Loss Account*
Administration fee income Other core income, net Interest expenses, senior debt Fee and commission income, net Core income (mortgage credit income) Staff costs and administrative expenses, etc. Other operating expenses Provision for loan and receivable impairment, etc. Results from core activities Portfolio earnings (securities) Profit before tax Profit after tax
Q1 2017 374 19 -11 -74 308 -61 -3 17 261 42 303 236
Q1 2016 362 17 -10 -74 295 -58 -3 -27 206 43 249 194
Core earnings Administration margin income amounted to DKK 374m, which is DKK 12m up on the same period in 2016. The increase is essentially due to the loan portfolio expanding. Interest expenses on senior debt amounted to DKK 11m, which is similar to the same period in 2016. Interest expenses The figure for interest expenses conceals a rising volume of issued senior debt relative to the previous year. However, this was offset by the average interest rate in 2017 being lower than for the same period in 2016. Fees and commissions (net) include, on the one hand, fee and brokerage income connected with the disbursement and repayment of mortgage loans plus spread income stemming from loan refinancing and disbursing and, on the other hand, commission expenses to the banks that intermediate DLR’s loans. These expenses include both intermediation commissions and commissions for the provision of loss guarantees, etc. Fees and commissions (net) amounted to an expense of DKK 74m, which is approximately the same as for Q1 2016. Core income was subsequently DKK 308m, an increase of DKK 13m on the same period in 2016. The increase equates to a rise of 5 pc. Staff and administration, etc. expenses amounted to DKK 61m, an increase of DKK 3m, or 5 pc, relative to the same period in 2016. Other operating expenses concern a contribution to the Resolution Fund. Losses and impairments on loans and receivables, including adjustments from previous years, amounted to an income of DKK 17m, calculated as follows: • •
Realised loss DKK -10m. Net change in impairments DKK + 9m.
5
•
Losses offset in commission payments from the banks DKK +18m. The amount includes netting connected with losses realised in previous years.
Portfolio earnings Portfolio earnings amounted to an income of DKK 42m, which matches the income earned for the same period in 2016. Relatively high portfolio earnings were due to yields falling further in 2017 and bond prices subsequently rising. DLR’s investment portfolio (securities excl. temporary surplus liquidity) amounted to DKK 21.3bn at the end of Q1 2017. Allocation of comprehensive income for the period The period’s comprehensive income amounted to DKK 236m. Of this, DKK 27m was paid to the owners of hybrid core capital. As this expense is tax deductible, DLR’s net expense was DKK 21m. Overall, this means DKK 216m has been added to DLR’s equity capital.
Balance sheet Mortgage credit lending amounted to DKK 138.1bn (nom.) at the end of Q1 2017. The bond portfolio stood at DKK 32.5bn. Of this, DLR’s own bonds accounted for DKK 21.1bn, which is netted in “Issued bonds at fair value”, while DKK 11.4bn was attributable to positions in government securities and other mortgage bonds. As well as bond holdings of DKK 32.5bn, DLR held other securities for DKK 3.0bn; hence, the total securities holding amounted to DKK 35.5bn (gross) at the end of the quarter. Temporary liquidity connected with mortgage payments, loan redemptions and refinancing auctions comprised DKK 14.2bn of the securities holding, so the investment holding was therefore DKK 21.3bn. DLR’s balance sheet stood at DKK 154.9bn at the end of Q1 2017.
6
Capital and solvency Table 2. DLR’s capital and solvency Capital and solvency
DKKm
31 March 2017 Equity Profit not recognised in equity Hybrid core capital recognised in equity Deductions as a consequence of prudent valuation Difference between expected loss and write downs Deferred tax Actual core capital Hybrid core capital Capital base Risk-weighted exposure with credit risk, etc. Risk-weighted exposure with market risk Risk-weighted exposure with operational risk Total risk-weighted exposure Actual core capital ratio Capital ratio
31 December 2016
12,506 -216 -1,300 -23 -668 -1 10,298
12,259 0 -1,300 -22 -676 -1 10,260
1,300
1,300
11,598
11,560
73,691 3,006 2,456 79,153
75,327 2,892 2,456 80,674
13.0% 14.7%
12.7% 14.3%
Capital base: DLR’s capital base (total capital) at the end of Q1 2017 does not include the result for the quarter, as the accounts have not been audited. DLR’s total capital increased by DKK38m in Q1 2017, with the main contributor to the rise being the sale of treasury shares for DKK 31m. Risk-weighted exposure amount: DLR’s risk-weighted exposure amount declined from DKK 80.7bn to DKK 79.2bn in Q1 2017. Capital ratios: DLR’s total capital ratio was 14.7 at the end of Q1 2017 compared to 14.3 at year-end 2016. The common equity tier 1 capital ratio was 13.0 compared to 12.7 at year-end 2016. Including the result for the period would produce a total capital ratio of 14.9 and a common equity tier 1 capital ratio of 13.3. Risk DLR’s credit and market risk is estimated as limited due to both the statutory requirements and DLR’s internal credit policy guidelines. Additionally, DLR has established loan loss schemes, including a guarantee provision that has been set up to cover DLR’s various lending areas in accordance with agreements made with DLR’s partner/shareholder banks. For further details on credit and market risk, please refer to DLR’s Risk and Capital Management Report 2016, available at http://www.dlr.dk/risk-reports.
7
Arrears and losses As of the end of Q1 2017, mortgage payments outstanding amounted to DKK 126m versus DKK124m at year-end 2016. Of the amount in arrears, the bulk stems from mortgage payments that are less than 3½ months overdue. DLR recorded a loss on 33 cases in Q1 2017 compared to 31 during the same period in 2016. DLR’s had 20 foreclosed mortgages in its portfolio at the end of Q1 2017. The value of these properties amounted to DKK 112m at the end of Q1 compared to DKK 159m at year-end 2016.
Full-year outlook for 2017 DLR’s Annual Report 2016 indicated expected core earnings for 2017 as a whole of DKK 800900m. After Q1, we now expect core earnings for full-year 2017 to be at the upper end of this range. The main uncertainty for full-year core earnings is the operational impact of losses and impairments for the remainder of 2017. Furthermore, the year’s pre-tax profit is subject to interest rate uncertainty and its potential impact on DLR’s portfolio earnings during the rest of the year.
Accounting policies DLR’s interim report has been prepared in accordance with the accounting provisions for mortgage banks laid down by the Danish Financial Supervisory Authority as well as the requirements provided by NASDAQ Copenhagen for the financial statements of issuers of listed bonds. Accounting policies were changed in the Q1 financial statement with respect to the classification of the following items: •
•
Fees paid to agricultural property valuation experts: Previously this cost in the expenses note was classified as “Other administrative expenses”. From 2017 it will be classified under “Staff costs”. Losses offset in commission payments to shareholder banks were previously included in the accounting item “Fees and commissions paid”. From 2017 income will be posted under “Impairment of loans and receivables, etc.”.
These reclassifications have no effect on DLR’s pre-tax profit, comprehensive income or equity. Comparative figures for the relevant items have also been adjusted. This financial statement has not been subject to audit or review.
Events occurring after the reporting date for Q1 DLR agreed to sell treasury shares at a market value of DKK 603m after the reporting date for Q1. The shares were sold to a number of existing shareholders.
8
Further information For further information on DLR please refer to http://www.dlr.dk/welcome-investorpage, where the Annual Report 2016 and DLR’s Risk and Capital Management Report, etc. can be downloaded. You will also find further information here on DLR’s cover pools and ratings.
Contacts Please direct any enquiries concerning this financial statement to: CEO Jens Kr. A. Møller, tel. 33 42 07 24, or Managing Director Michael Jensen, tel. 33 42 07 06
9
Profit and Loss Account and Statement of Comprehensive Income
Note
1 2
3
4
5
DKKm
Profit and loss account
Q1 2017
Q1 2016
Interest income Interest expenses Net interest income
823 (407) 416
837 (417) 420
Dividends from shares etc. Fee and commission income Fee and commission paid Net interest and fee income
49 (122) 342
33 (107) 346
Value adjustments
3
(12)
Other operating income
4
4
(60)
(57)
Depreciation and impairment losses
(1)
(1)
Other operating expenses
(3)
(3)
Provisions for loan and receivable impairment, etc.
17
(27)
Profit before tax
303
249
Tax
(67)
(55)
Profit
236
194
Statement of Comprehensive Income
Q1 2017
Q1 2016
Profit
236
194
Total comprehensive income
236
194
Shareholders of DLR Kredit A/S* Owners of hybrid core capital
210 27
167 27
Total comprehensive income
236
194
Staff costs and administrative expenses
Note
Attributable to:
* As a consequence of tax deductions for payments to holders of additional tier 1 capital, the consolidation was increased beyond the amount stated, i.e. by an additional DKK 6m in 2017 (22% of DKK 27m). For 2016, consolidation was similarly increased by DKK 6m.
10
Balance Sheet
DKKm
31 March 2017
Note
31 December 2016
Assets
Cash in hand and demand deposits with central banks Receivables from credit institutions and central banks 6 Loans, advances and other receivables at fair value 9 - 11 Loans, advances and other receivables at amortised cost 8 Bonds at fair value 12 Shares, etc. Land and buildings, domicile properties 13 Other tangible assets Deferred tax assets Assets temporarily foreclosed Other assets 14 Prepayments
48 2,946 140,040 20 11,414 57 97 4 1 112 129 23
48 2,428 139,032 20 13,625 58 98 4 1 159 246 18
154,892
155,737
132,924 8,005 34 1,413 6 142,382
134,074 8,000 18 1,378 4 143,474
4 4
5 5
Share capital Revaluation reserve Undistributable reserve Retained earnings Owners of hybrid core capital Total equity
570 43 2,338 8,255 1,300 12,506
570 43 2,338 8,008 1,300 12,259
Total liabilities and equity
154,892
155,737
17 3,985
17 4,220
Total assets Liabilities and equity
15 16 17
Debt to credit institutions and central banks Issued bonds at fair value Issued bonds at amortised cost Current tax liabilities Other debt and payables Deferred income Total debt Provisions for deferred tax Total provisions
18
Off-balance sheet items Guarantees Other liabilities
11
Statement of Changes in Equity
DKKm
Share capital 1)
2016 Equity at 1 January 2016
Revaluation reserve
Undistributable reserve
Retained earnings
Owners of hybrid core capital 2)
Total
570
43
2.338
8.252
1.300
12.503
0
0
0
702
109
811
0 0
0 0
0 0
-970 0
0 -109
-970 -109
0
0
0
24
0
24
Equity at 31 December 2016
570
43
2.338
8.008
1.300
12.259
2017 Equity at 1 January 2017
570
43
2.338
8.008
1.300
12.259
0
0
0
210
27
236
0 0
0 0
0 0
31 0
0 -27
31 -27
0
0
0
6
0
6
570
43
2.338
8.255
1.300
12.506
Profit Transactions with owners Purchase of own shares Interest on hybrid core capital Tax value of deduction of interest on additional tier 1 capital
Profit Transactions with owners Own shares Interest on hybrid core capital Tax value of deduction of interest on additional tier 1 capital Equity at 31 March 2017
1) The share capital is divided into shares of each DKK 1.00. The total number of shares is 569,964,023. DLR Kredit A/S has only one class of shares. All shares carry equal rights. 2) Additional tier 1 capital that complies with the rules in the Capital Requirements Regulation (CRR). The DKK 1,300m with a conversion obligation was raised on 27 August 2012. The maturity is perpetual. The rate of interest is floating and based on the 6m money-market rate (CIBOR) plus 8.25 per cent p.a. The aggregate additional tier 1 capital can be included in total capital at 31 March 2017. Interest: 27 DKKm
3) Own shares DLR Kredit has in the first quarter of 2017 sold own shares corresponding to a market value of 31 DKKm.
12
Capital and solvency
DKKm
31 March 2017 Equity Profit not recognised in equity Hybrid core capital recognised in equity Deductions as a consequence of prudent valuation Difference between expected loss and write downs Deferred tax Actual core capital Hybrid core capital Capital base Risk-weighted exposure with credit risk, etc. Risk-weighted exposure with market risk Risk-weighted exposure with operational risk Total risk-weighted exposure Actual core capital ratio Capital ratio
31 December 2016
12,506 -216 -1,300 -23 -668 -1 10,298
12,259 0 -1,300 -22 -676 -1 10,260
1,300
1,300
11,598
11,560
73,691 3,006 2,456 79,153
75,327 2,892 2,456 80,674
13.0% 14.7%
12.7% 14.3%
13
List of notes to the financial statements
Nr.
1 2 3 4 5
Name of note Notes to the financial statements - income statement Interest income Interest expenses Value adjustments Staff costs and administrative expenses Provisions and impairment losses for loans and receivables etc.
6 7 8 9 10 11 12 13 14
Notes to the financial statements - assets Receivables from credit institutions and central banks Loans and advances at fair value Loans and advances at amortised cost Mortgage loans (nominal value) by property category (as a percentage) Number of loans Provisions for loans and receivables impairment at fair value and amortised cost Bonds at fair value Land and buildings (domicile properties) Other assets
15 16 17 18 19
Notes to the financial statements - liabilities and equity Issued bonds at fair value Issued bonds at amortised cost Other debt and payables Off-balance sheet items Contingent assets
20 21
Notes to the financial statements - key figures and ratios Key figures in DKKm Financial ratios
22
Notes to the financial statements and accounting policies Reconciliation of income statement "basic portfolio earnings" vs "official statements"
14
Notes - income statement DKKm
1
2
3
Q1 2017
Q1 2016
Interest income Receivables from credit institutions and central banks Loans and advances Administration fees Bonds Other interest income Total interest income
0 424 374 27 11 837
0 459 362 55 8 884
Interest from own mortgage bonds offset agains interest on issued bonds Total
-14 823
-46 837
Interest expenses Credit institutions and central banks Issued bonds at fair value Issued bonds at amortised cost Hybrid core capital (non CRR-compliant) Other interest expenses Total interest expenses
-1 -409 -11 0 0 -421
0 -454 -10 0 1 -464
Interest from own mortgage bonds Total
14 -407
46 -417
Value adjustments Mortgage loans Bonds Shares etc. Other assets Foreign exchange Derivative financial instruments Issued bonds Total value adjustments
404 9 0 0 1 -6 -404 3
587 -5 0 0 -2 -6 -587 -12
15
Notes - income statement DKKm
4
Q1 2017
Q1 2016
Staff costs Salaries * Pension costs Social security costs Total
-31 -3 -5 -38
-30 -3 -5 -37
Other administrative expenses IT expenses Audit, supervision and industry association Other operating costs Total
-11 -2 -9 -22
-8 -4 -8 -20
Total staff and administrative expenses
-60
-57
Executive Board* Fixed remuneration Variable remuneration Total
1,6 0,0 1,6
1,6 0,0 1,6
2
2
-10 1 -53 61 18 17
-52 1 -69 80 12 -27
Staff costs and administrative expenses
Number of members of the Executive Board - end of period
5
Provisions and impairment losses for loans and receivables etc. Impairment losses for the period Recovery of debt previously written off Provisions for the period Reversal of provisions Losses offset in comission payments to banks Total provisions and impairment losses for loans and receivables etc.
16
Notes - assets DKKm
31 March 31 December 2017 2016 6
Receivables from credit institutions and central banks Receivables at notice from central banks Receivables from credit institutions and central banks Total receivables from credit institutions and central banks*
0 2.946 2.946
0 2.428 2.428
Loans and advances at fair value Mortgage loans, nominal value Adjustment to fair value of underlying bonds Adjustment for credit risk Total mortgage loans at fair value
138.143 2.372 -561 139.954
137.493 1.966 -566 138.893
Arrears before provisions Other loans and charges before provisions Provisions for arrears and charges Total
126 -13 -27 140.040
124 44 -28 139.032
Loans and advances at amortised cost Loans and advances Adjustment for credit risk Total
25 -5 20
26 -6 20
DLR had no reverse repo transactions at year-end
7
8
9
Mortgage loans (nominal value) by property category (as a percentage) Agricultural properties Owner-occupied dwellings Subsidised rental housing properties Private rental housing properties Office and business properties Properties for manufacturing and manual industries Properties for social, cultural and educational purposes Other properties Total, as a percentage
10
Number of loans - end of period
11
Provisions for loans and receivables impairment at fair value and amortised cost
63 6 0 14 16 1 0 1 100
63 6 0 14 16 1 0 1 100
59.381
59.119
Individual provisions Provisions on loans and guarantees, beginningof-year Reversal of provisions Provisions for the period Provisions - end of period
411 -61 46 396
445 -191 156 411
Collective provisions* Provisions on loans and guarantees, beginning of year Reversal of provisions Provisions for the period Provisions - end of period
190 0 7 197
145 -25 70 190
Total provisions for loans and receivables impairment, end of period
593
601
17
Notes - assets DKKm
31 March 31 December 2017 2016 12
Bonds at fair value - Own mortgage bonds - Other mortgage bonds - Government bonds - Other bonds Total bonds Own mortgage bonds offset against issued bonds Own non-mortgage bonds offset against issued bonds Total
13
20,113 9,234 2,179 995 32,522
23,866 11,441 2,184 0 37,492
-20,113 -995 11,414
-23,866 0 13,625
Land and buildings (domicile properties) Fair value, beginning of year Additions during the year Depreciation Value changes recognised in other comprehensive income Fair value, end of period The value of domicile properties is measured on an annual basis by DLR's commercial valuation experts.
14
98 0 0 0 97
98 0 -1 0 98
21 54 53
10 107 129
129
246
Issued bonds at fair value Mortgage bonds - nominal value Fair value adjustment Issued bonds - gross
150,476 2,561 153,037
155,775 2,165 157,940
Own mortgage bonds set off - at fair value Total
-20,113 132,924
-23,866 134,074
7,668 1,059
10,228 2,152
Other assets Positive market value of derivative financial instruments etc. Interest and commission receivable Other receivables Total
15
Of which pre-issued, market value Drawn callable bonds for redemption in next term
18
Notes - liabilities and equity DKKm
31 March 31 December 2017 2016 16
17
18
Issued bonds at amortised cost Issues in connection with senior debt Own mortgage bonds set off Total
9.000 -995 8.005
8.000 0 8.000
Other debt and payables Negative market value of derivative financial instruments Interest and commission payable Other payables Total
11 1.161 242 1.413
5 1.180 193 1.378
3 15 17
3 15 17
3.985 4.002
4.220 4.237
Off-balance sheet items Guarantees etc. Financial guarantees Other guarantees Total Other contingent liabilities Irrevocable credit commitments (loan offers) Total
In addition to the above garantees and contigent liabilities, DLR´s bond portfolio is used as collateral for intraday settlement of VP sumclearing. It is not estimated that it would entail a pull on the company´s financial resources.
19
Contingent assets Loss guarantee agreements have been established between DLR and the banks holding shares in DLR which makes it possible for DLR to offset losses against commissions paid to the banks that hold shares in DLR. The set-off of losses against commissions can be made over severals years going forward, which means that DLR may offset losses against commissions in the years to come in cases where the exposures lead to an actual losses.
19
Notes - financial highlights and ratios DKKm
20
Key figures in DKKm Q1 2017
Q1 2016
Q1 2015
Q1 2014
Q1 2013
342 4 -64 283 17 3 303 236
346 4 -61 289 -27 -12 249 194
381 5 -56 330 -39 40 331 253
319 4 -52 272 -25 -32 214 162
288 5 -52 241 -28 -58 155 116
Balance sheet Assets Loans and advances Bonds, shares, etc. Other assets Total assets
140,060 11,471 3,361 154,892
134,237 11,623 2,413 148,274
133,548 9,237 6,636 149,421
134,177 4,193 3,011 141,381
135,810 2,700 2,459 140,969
Liabilities and equity Issued bonds Other debt and payables Subordinated debt Equity Total liabilities and equity
140,928 1,458 0 12,506 154,892
134,797 1,342 0 12,135 148,274
132,597 3,921 752 12,151 149,421
125,169 2,974 3,073 10,165 141,381
121,491 5,146 5,247 9,085 140,969
Income statement Net interest and fee income Other operating income etc. Staff costs and administrative expenses etc. Earnings Provision for loan and receivable impairment Value adjustments Profit before tax Profit after tax
20
Notes - key figures and ratios DKKm
21
Financial ratios Q1 2017
Q1 2016
Q1 2015
Q1 2014
Q1 2013
Return on equity Profit before tax in per cent of equity(*) Profit after tax in per cent of equity(*) Profit on hybrid core capital (CRR complaint)
2,4 1,9 2,1
2,0 1,6 2,1
2,8 2,1 2,2
2,1 1,6 2,2
1,7 1,3
Profit after tax on equity excl. Hybrid core capital
1,9
1,6
2,4
1,7
Return on capital employed Return on capital employed(*)
0,15
0,13
0,17
0,12
0,15
Costs Costs in per cent of loan portfolio Income/cost ratio*) Income/cost ratio, excl. write-downs for impairment
0,05 7,41 5,47
0,04 3,82 5,72
0,04 4,50 7,60
0,04 3,80 5,67
0,04 2,95 4,62
Solvency **) Total capital ratio Tier 1 capital ratio
14,7 14,7
14,8 14,8
12,4 12,4
13,6 13,6
13,5 13,5
126
124
127
128
163
0,00
0,00
0,03
0,02
0,02
0,42
0,43
0,43
0,29
0,26
0,5 5.904 1.989 11,2
0,5 3.914 1.353 11,1
-0,4 8.392 3.092 11,0
-0,2 4.165 1.243 13,2
0,0 3.122 1.381 14,9
0,22
0,19
0,25
0,16
0,12
0,27
0,27
0,27
0,26
0,26
12,3
14,7
0,1
0,1
1,1
Losses and arrears Arrears, end of period (DKKm) Loss and impairment ratio for the period (in per cent of loan portfolio)(*) Accumulated loss and impairment ratio (in per cent of loan portfolio) Lending activity Growth in loan portfolio, per cent (nominal)*) New loans, gross (DKKm) Number of new loans Loan/equity ratio(*) Margins Percentage of average loan portfolio (nominal): Profit before tax Administrative margin in per cent of average loan portfolio Percentage of tier 1 capital after deductions: Foreign exchange position as a percentage of tier 1 capital after deductions(**)
( *) The financial ratios have been calculated in accordance with the definitions of the Danish Financial Supervisory Authority. (**) In March 2016, DLR received approval from the Danish FSA to use IRB models to determine the credit risk on the portfolio of loans to full-time farms, which has been incorporated in the figures for 2016, as opposed to the figures at year-end 2015, which were solely based on the standard method.
21
Notes - others DKKm
22
Reconciliation of income statement "basic portfolio earnings" vs "official statements" Basic earnings Interest income Interest expenses Net interest income Dividends from shares etc. Fee and commission income Fees and commissions paid Net interest and fee income Value adjustments Other operating income Staff costs and administrative expenses Depreciation and impairment losses Other operating expenses Impairment of loans and receivables, etc. Profit before tax Tax Profit after tax
784 -407 377 0 49 -122 303 0 4 -60 -1 -3 17 261 -67 194
Portfolio earnings
Total
39 39
39 3
42 42
823 -407 416 0 49 -122 342 3 4 -60 -1 -3 17 303 -67 236
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Management’s statement on the interim report The Board of Directors and the Executive Board has today considered and approved the interim report of DLR Kredit A/S for the period 1 January – 31 March 2017. DLR’s interim report has been prepared in accordance with the accounting provisions for mortgage banks laid down by the Danish Financial Supervisory Authority as well as the requirements provided by NASDAQ Copenhagen for the financial statements of issuers of listed bonds. The management’s review includes a fair review of developments in the Company’s operations and financial position and describes significant risks and uncertainties that may affect the Company. In our opinion, the accounting policies applied are appropriate such that the interim financial statements give a true and fair view of the Company’s assets, liabilities and financial position at 31 March 2017 and of the results of the Company’s operations for the period 1 January – 31 March 2017. DLR’s interim report has not been subject to audit or review by the Company’s auditors. Copenhagen, 27 April 2017 Executive Board Jens Kr. A. Møller CEO
Michael Jensen Managing Director
Board of Directors Vagn Hansen Chairman
Anders Dam Vice Chairman
Claus Andersen
Claus Andreasen
Karen Frøsig
Peter Gæmelke
Jakob G. Hald
Søren Jensen
Agnete Kjærsgaard
Lars Møller
Torben Nielsen
Benny Pedersen
Jan Pedersen
Lars Petersson
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