Alm. Brand Bank A/S – Interim report for the first quarter of 2012

5/16/2012 2:33 AM EST

Alm. Brand A/S
Quarterly report

Alm. Brand Bank A/S – Interim report for the first quarter of 2012

Copenhagen, 2012-05-16 08:33 CEST (GLOBE NEWSWIRE) -- Highlights


  -- Alm. Brand Bank A/S posted a loss of DKK 5 million before losses and
     writedowns. The performance was unsatisfactory but in line with the
     guidance provided in the annual report.



  -- The bank recognised impairment writedowns on loans, including
     credit-related value adjustments of mortgage deeds, of DKK 85 million in
     aggregate in Q1 2012.



  -- The bank incurred a loss before tax of DKK 90 million.



  -- At 31 March 2012, the bank had excess liquidity of DKK 7.0
billion, equivalent to an excess cover of 351%
.



  -- The bank maintains its guidance for a full-year profit of around DKK 10
     million before tax and before losses and writedowns.



Other highlights

  -- The bank's net interest income increased to DKK 72 million in Q1 2012 from
     DKK 68 million in Q4 2011. The development was attributable to a
     combination of higher interest income from bonds, lower interest income
     from lending caused by a decline in total loans and advances as well as a
     general increase in funding costs.
  -- In Q1 2012, impairment losses on loans amounted to DKK 65 million, while
     credit-related value adjustments of the bank’s mortgage deed portfolio
     totalled DKK 20 million. Accordingly, losses and writedowns amounted to DKK
     85 million in aggregate in Q1 2012.
  -- Interest-related value adjustments, excluding credit-related value
     adjustments of mort­gage deeds, produced a capital loss of DKK 10 million
     in Q1 2012. Among other things, the capital loss was due to the fact that
     the bank has had a part of its excess liquidity placed in interest-reset
     bonds, which contributed negatively to interest-related value adjustments
     but, on the other hand, had a positive effect on the bank's net interest
     income.
  -- Equity-related value adjustments produced a capital gain of DKK 20 million
     in Q1 2012. Included in this amount was a DKK 11 million gain on illiquid
     shares acquired in connection with the winding up of a number of exposures.
     The market value of the illiquid shares was approximately DKK 137 million
     at 31 March 2012.
  -- In Q1 2012, the bank recognised an expense of DKK 7 million for the deposit
     guarantee scheme and distressed banks under Finansiel Stabilitet.
  -- At 31 March 2012, the bank's total capital base was DKK 2.2 billion, and
     the sol­vency ratio was 18.5.
  -- The bank's individual solvency need was calculated at DKK 15.0%.


         Please direct any questions regarding this announcement to Kim Bai
Wadstrøm, Chief Executive, on tel. +45 35 47 70 14 or Susanne Biltoft, Head of
Information and Investor Relations, on tel. +45 35 47 76 61.