Announcement no. 6/2015 20 August 2015
Alm. Brand Bank A/S – Interim report H1 2015 Highlights
The bank incurred a pre-tax loss of DKK 86 million in Q2 2015, against a loss of DKK 68 million in Q1 2015. The performance was not satisfactory.
The forward-looking activities reported a loss of DKK 8 million. The performance was below expectations and reflected the turbulence in the fixed income markets, which drove down trading activity and resulted in significant capital losses on the bank’s bond portfolio.
Impairment writedowns on private customers amounted to DKK 0 million in Q2, compared with DKK 6 million in Q1 2015.
The bank’s private customer segment experienced an increase in the level of activity in the second quarter supported by an increase in the number of full-service customers and in loans and advances. Activities in Financial Markets reflected the financial market turmoil.
The bank incurred a loss on its winding-up activities of DKK 78 million, against a loss of DKK 74 million in Q1 2015, which was in line with expectations.
The bank lowers its full-year guidance for profit before tax of its forward-looking activities to about DKK 20 million after impairment writedowns, which are expected to represent DKK 20 million. The bank maintains its guidance for a pre-tax loss of DKK 300-350 million from its winding-up activities.
Income from the forward-looking activities fell by 2% to DKK 135 million in Q2, against DKK 138 million in Q1 2015 due to a lower level of investment activity among institutional clients.
Costs amounted to DKK 92 million in Q2, which was on a par with Q1 2015.
Value adjustments produced a loss of DKK 22 million in Q2, against a loss of DKK 6 million in Q1 2015, and were severely impacted by the interest rate volatility.
In Q2 2015, the bank reduced the winding-up portfolio by DKK 75 million adjusted for losses and writedowns. The Q2 reduction of the winding-up portfolio outperformed expectations.
At 30 June 2015, the bank had excess liquidity of DKK 3.7 billion, corresponding to an excess cover of 296% relative to the statutory requirement. The excess cover was reduced by DKK 0.2 billion in Q2 2015 and will be reduced further in 2015.
At 30 June 2015, the bank’s total capital stood at DKK 1.5 billion, and the total capital ratio was 19.8. The bank’s individual solvency need was calculated at 13.3%, and the bank thus had an excess cover of 6.5 percentage points. The banking group had a total capital ratio of 18.4, and the individual solvency need was calculated at 13.2%. The banking group thus had an excess cover of 5.2 percentage points.
Contact Please direct any questions regarding this announcement to: Kim Bai Wadstrøm, Managing Director, tel. +45 35 47 70 14, or Susanne Biltoft, Head of Information and Investor Relations, tel. +45 35 47 76 61.