Danske Andelskassers Bank

Earnings Release • Aug 29, 2011

Company announcement no. 7/2011

The interim report for H1 2011 of Danske Andelskassers Bank shows a loss before
tax of DKK -40.0m against a loss before tax of DKK -129.3m in H1 2010. Danske
Andelskassers Bank revises down its outlook for a profit before tax from the
previously announced DKK 75-105m to a profit/loss in the region of DKK -50 to
-100m due to the global economic turmoil, but it is emphasized that the outlook
is subject to considerable uncertainty. As a consequence of the expected
difficult market conditions in H2 2011 Danske Andelskassers Bank plan to adjust
the organisations cost level.

The Board of Directors of Danske Andelskassers Bank A/S has on this day adopted
the financial statements for H1 2011.

The interim report shows a loss before tax of DKK -40.0m against a loss before
tax of DKK -129.3m in H1 2010.

Core earnings - profit before translation and market value adjustments, sector
solutions and impairment - came to DKK 96.2m in H1 2011 against DKK 100.8m in
H1 2010.

Highlights from the interim report are as follows (Results for H1 2010 are
shown in parentheses):

-- Loss before tax of -40.0m (DKK -129.3m)
-- Core earnings before impairment, translation and market value adjustments
and sector solutions of DKK 96.2m (DKK 100.8m)
-- Impairment and losses of DKK 99.8m (DKK 247.4m) corresponding to an
impairment percentage of 0.8 (1.9)
-- Translation and market value adjustments of DKK -22.8m (DKK 51.1m)
-- Staff costs and administrative expenses of DKK 248.1m (DKK 287.5m)
-- Solvency ratio of 15.4 (13.9) against a solvency requirement of 10.3 (8.7)
corresponding to excess solvency of 5.1 percentage points (5.2 percentage
points)
-- Core capital ratio of 15.8 (14.0)
-- Equity of DKK 1,795.5m (DKK 1,517.6m)

As a consequence of the expected difficult market conditions in H2 2011 - as
described in detail below - Danske Andelskassers Bank plan to adjust the
organisations cost level

Outlook for FY

Core banking operations and thus core earnings developed as expected in H1
2011, and this is expected to continue into H2 2011.

Due to the recent economic turmoil in Denmark and the rest of the world and the
downwards revised growth outlook for the Danish economy - as recently announced
in the Danish Ministry of Finance's economic report of 24 August 2011 - the
conditions for the bank's outlook for H2 2011 have, however, changed
considerably.

Danske Andelskassers Bank therefore revises down its outlook for a profit
before tax from the previously announced DKK 75-105m to a profit/loss in the
region of DKK -50 to -100m.

It should be emphasised that the outlook is subject to considerable
uncertainty, which is also the reason for the widening of the span.

While the bank's core operations are satisfactory, several parameters are
directly affected by the economic crisis. And with the current uncertainty
associated with the development of this crisis, it is indeed very difficult to
make an accurate assessment.

This is particularly so in regards to the items which are not included in the
core earnings, i.e. translation and market value adjustments, sector solutions
and impairment, where a negative impact is expected for H2 2011 as stated
above. Despite a conservative and cautious approach to investments, the
majority of which is made up of stable bonds, the translation and market value
adjustments will be affected by the turmoil, and many of the bank's customers -
particularly small and medium-sized enterprises - will also be affected by for
instance low private consumption and rising unemployment.

Due to the major uncertainty surrounding the development of the economic
crisis, Danske Andelskassers Bank will onwards change its principles regarding
the announcement of outlooks, so that the bank, like many other banks,
announces its outlook for core earnings rather than its profit/loss before tax
which provides for a more accurate outlook. The bank quite simply believes that
the economic and market economic uncertainty is so substantial - and the
uncertainty of the impact of this on translation and market value adjustments
so great - that it would be more accurate to announce the outlook for core
earnings.

In light of the above, Danske Andelskassers Bank expects core earnings for 2011
to be in the region of DKK 190-220m, thus maintaining the previous outlook for
core earnings.

Comments on the interim report

Managing Director Jan Pedersen says about the interim report:

”It has been made clear that the global economy isn't heading for better days.
This has changed the outlook for many of our customers and particularly the
small and medium-sized enterprises as well as the agricultural sector, which
has led to significantly worsened conditions for two of our large customers
that will result in impairments, . Due to this we have to recognize, that
especially the expected impairments will be higher than expected a short while
ago. It will be hard to raise earnings to cover these expenses.”

”A revision of our expectations means that we have to evaluate our own business
once more. We are and will be a solid bank, but we have to secure the right
balance between earnings and expenses - in the years to come as well. Therefore
it's our estimation, that costs has to be reduced.”

For further informartion the Interim Report is published with this announcement

Further information

For further information, please contact

Communications Manager Martin Rask Pedersen
Tel.: +45 87 99 30 33

About Danske Andelskassers Bank

Danske Andelskassers Bank is a Danish bank with strong roots in the local
communities through 52 branches in Jutland and on Funen. The objective of
Danske Andelskassers Bank is to be an essential part of the Danish financial
market and to offer competent financial counselling together with a strong
local commitment - to the advantage of the customers and the development of the
local communities. The bank has just under 550 employees.

This Company Announcement contains forward looking statements, including
statements regarding the activities of Danske Andelskassers Bank. These
statements are based upon information, assumptions and assessments found to be
reasonable by Danske Andelskassers Bank. The forward looking statements
encompass known and unknown risks, uncertainties and other significant factors
which may cause the actual results, development or performance of Danske
Andelskassers Bank or the results of the industry to differ materially from any
future results, development or performance expressed or implied by such
statements. If one or more of these risk factors or factors of uncertainty are
released or an underlying condition proves itself wrong, the actual economic
situation or results or the operating profit of Danske Andelskassers Bank may
differ materially from what is descriped as presupposed, assessed, anticipated
or expected.