Quarterly Report • Aug 7, 2008
Quarterly Report
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To OMX The Nordic Exchange Copenhagen and the press
7 August 2008
Stock Exchange Announcement No. 7, 2008
For further information, contact: Lasse Nyby Chief Executive Officer Tel. +45 9634 4011
Ole Madsen, Communications Manager Tel. +45 9634 4010
| • | Annualized 17% return on equity before tax |
|---|---|
| • | Net interest income up 21% to DKK 658 million (YOY) |
Spar Nord Bank - 1st half 2008 Page of 33
CVR-nr. 13 73 75 84
Spar Nord Bank A/S
Skelagervej 15 P. O. Box 162 DK-9100 Aalborg
Reg. No. 9380
www.sparnord.dk [email protected]
Telephone +45 96 34 40 00 Telefax + 45 96 34 45 60 Swift spno dk 22
Stock Exchange Announcement No. 7, 2008
7 August 2008
Spar Nord Bank A/S
Skelagervej 15 P. O. Box 162 DK-9100 Aalborg
Reg. No. 9380 Telephone +45 96 34 40 00 Telefax + 45 96 34 45 60 Swift spno dk 22
www.sparnord.dk [email protected]
CVR-nr. 13 73 75 84
| Quarterly performance indicators and financial | |
|---|---|
| ratios | 4 |
| Management's review | 5 |
| Performance indicators and financial ratios | 9 |
| Endorsement of the Supervisory and | |
| Executive Boards 10 | |
| Spar Nord Bank shares held by members of | |
| the Supervisory and Executive Boards 11 | |
| Overview of group companies 11 | |
| Income statement 12 | |
| Balance sheet 13 | |
| Statement of changes in equity 14 | |
| Solvency information 15 | |
| Cash flow statement 16 | |
| Notes 17 | |
| Notes to the financial statements without | |
| reference numbers 24 | |
| Interim Report 1 January - 30 June 2008 for | |
| Spar Nord Bank A/S, the Parent Company 25 | |
| Performance indicators and financial ratios 26 | |
| Income statement 27 | |
| Balance sheet 28 | |
| Notes 29 | |
| Notes to the financial statements without | |
| reference numbers 33 |
| DKK million | 1st half 2008 |
1st half 2007 |
Change in pct. |
2Q 2007 |
3Q 2007 |
4Q 2007 |
1Q 2008 |
2Q 2008 |
Full year 2007 |
|---|---|---|---|---|---|---|---|---|---|
| INCOME STATEMENT | |||||||||
| Net interest income | 658.2 | 544.1 | 21.0 | 272.0 | 306.0 | 299.6 | 312.5 | 345.7 | 1.149.7 |
| Net income from fees, charges and commissions |
201.1 | 258.6 | -22.2 | 128.3 | 111.1 | 113.2 | 104.1 | 97.0 | 482.9 |
| Dividends on shares, etc. | 15.0 | 13.7 | 9.5 | 13.6 | 0.0 | 0.0 | 0.2 | 14.8 | 13.7 |
| Market-value adjustments | 48.1 | 75.9 | -36.6 | 22.6 | 22.2 | 70.1 | 7.7 | 40.4 | 168.2 |
| Other operating income | 42.6 | 35.3 | 20.7 | 18.3 | 16.0 | 24.3 | 20.4 | 22.2 | 75.6 |
| Profit/loss on equity investments in associates and group enterprises |
44.1 | 53.0 | -16.8 | 20.1 | 34.2 | 11.9 | 36.6 | 7.5 | 99.1 |
| Core income | 1,009.1 | 980.6 | 2.9 | 474.9 | 489.5 | 519.1 | 481.5 | 527.6 | 1,989.2 |
| Operating costs, depreciation and | |||||||||
| amortization | 691.2 | 626.9 | 10.3 | 317.2 | 316.9 | 342.5 | 343.2 | 348.0 | 1,286.3 |
| Core earnings before impairment Impairment of loans, advances and |
317.9 | 353.7 | -10.1 | 157.7 | 172.6 | 176.6 | 138.3 | 179.6 | 702.9 |
| receivables, etc. | 0.0 | -78.1 | -43.2 | -29.9 | -3.3 | -8.3 | 8.3 | -111.3 | |
| Core earnings | 317.9 | 431.8 | -26.4 | 200.9 | 202.5 | 179.9 | 146.6 | 171.3 | 814.2 |
| Earnings from investment portfolios | -71.2 | 33.3 | -313.8 | 21.9 | -13.5 | -1.0 | -56.3 | -14.9 | 18.8 |
| Totalkredit (sale of shares) Profit/loss before tax |
92.9 339.6 |
0.0 465.1 |
-27.0 | 0.0 222.8 |
0.0 189.0 |
0.0 178.9 |
92.9 183.2 |
0.0 156.4 |
0.0 833.0 |
| Tax | 72.5 | 99.3 | -27.0 | 41.1 | 28.0 | 25.4 | 35.2 | 37.3 | 152.7 |
| Profit | 267.1 | 365.8 | -27.0 | 181.7 | 161.0 | 153.5 | 148.0 | 119.1 | 680.3 |
| BALANCE SHEET | |||||||||
| Total assets | 68,561 | 57,590 | 19.1 | 57,590 | 62,020 | 63,394 | 67,288 | 68,561 | 63,394 |
| Loans and advances - bank loans and advances |
42,205 41,155 |
36,206 36,206 |
16.6 13.7 |
36,206 36,206 |
38,229 38,229 |
40,939 40,506 |
41,015 40,324 |
42,205 41,155 |
40,939 40,506 |
| - reverse transactions | 1,050 | 0 | 0 | 0 | 433 | 691 | 1,050 | 433 | |
| Deposits | 34,124 | 27,047 | 26.2 | 27,047 | 28,328 | 31,416 | 32,464 | 34,124 | 31,416 |
| - bank deposits | 34,124 | 27,047 | 26.2 | 27,047 | 28,328 | 31,416 | 32,464 | 34,124 | 31,416 |
| - repo transactions Subordinated debt |
0 1,658 |
0 1,663 |
-0.3 | 0 1,663 |
0 1,676 |
0 1,770 |
0 1,776 |
0 1,658 |
0 1,770 |
| Shareholders' equity | 4,219 | 3,849 | 9.6 | 3,849 | 4,008 | 4,138 | 4,272 | 4,219 | 4,138 |
| Guarantees, etc. | 3,959 | 7,475 | -47.0 | 7,475 | 3,921 | 4,048 | 3,475 | 3,959 | 4,048 |
| Risk-weighted assets Core capital (incl. hybrid core capital) |
42,234 | 41,845 | 0.9 | 41,845 | 42,147 | 43,656 | 41,286 | 42,234 | 43,656 |
| after deductions | 4,337 | 3,911 | 10.9 | 3,911 | 4,040 | 4,098 | 4,235 | 4,337 | 4,098 |
| Impairment of loans, advances and | |||||||||
| guarantees Non-performing loans |
422 33 |
470 31 |
-10.3 7.1 |
470 31 |
446 29 |
444 27 |
429 29 |
422 33 |
444 27 |
| Business volume | 80,288 | 70,728 | 13.5 | 70,728 | 70,478 | 76,403 | 76,954 | 80,288 | 76,403 |
| FINANCIAL RATIOS | |||||||||
| Solvency | |||||||||
| Solvency ratio (%) | 11.9 | 11.0 | 11.0 | 11.2 | 11.1 | 12.1 | 11.9 | 11.1 | |
| Core capital ratio, incl. hybrid capital (%) Core capital ratio, excl. hybrid capital (%) |
10.3 9.5 |
9.3 8.6 |
9.3 8.6 |
9.6 8.8 |
9.4 8.6 |
10.3 9.4 |
10.3 9.5 |
9.4 8.6 |
|
| Earnings | |||||||||
| Return on equity before tax (%) | 8.1 | 12.4 | 5.9 | 4.9 | 4.6 | 4.4 | 3.7 | 21.4 | |
| Return on equity after tax (%) Cost share of core income |
6.4 0.68 |
9.8 0.64 |
4.8 0.67 |
4.2 0.65 |
3.9 0.66 |
3.5 0.71 |
2.9 0.66 |
17.5 0.65 |
|
| Cost share of core income - incl. | |||||||||
| impairment of loans and advances, etc. | 0.68 | 0.56 | 0.58 | 0.59 | 0.65 | 0.70 | 0.68 | 0.59 | |
| Income/cost ratio (DKK) | 1.46 | 1.56 | 1.50 | 1.54 | 1.52 | 1.40 | 1.52 | 1.55 | |
| Market risks | |||||||||
| Interest-rate risk (%) Foreign-exchange position (%) |
1.7 8.8 |
1.1 6.0 |
1.1 6.0 |
2.0 5.3 |
2.1 5.7 |
0.9 4.2 |
1.7 8.8 |
2.1 5.7 |
|
| Foreign-exchange risk (%) | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | |
| Credit risks Loans and advances plus |
|||||||||
| impairment rel. to deposits | 124.9 | 135.6 | 135.6 | 136.5 | 131.7 | 127.6 | 124.9 | 131.7 | |
| Loans and advances rel. to shareholders' | |||||||||
| equity | 10.0 | 9.4 | 9.4 | 9.5 | 9.9 | 9.6 | 10.0 | 9.9 | |
| Increase in loans and advances for the period (%) |
|||||||||
| Excess coverage relative to statutory | 3.1 | 5.5 | 1.8 | 5.6 | 7.1 | 0.2 | 2.90 | 19.3 | |
| cash ratio requirement (%) | 73.2 | 53.3 | 53.3 | 80.1 | 91.9 | 66.0 | 73.2 | 91.9 | |
| Sum total of major commitments (%) | 74.7 | 113.0 | 113.0 | 87.8 | 65.0 | 67.3 | 74.7 | 65.0 | |
| Impairment for the period in per cent | 0.0 | -0.2 | -0.1 | -0.1 | 0.0 | 0.0 | 0.0 | -0.2 | |
| Spar Nord Bank | |||||||||
| Number of employees (full-time, year-end) | 1,432 | 1,336 | 1,336 | 1,377 | 1,416 | 1,434 | 1,432 | 1,416 | |
| Number of branches | 79 | 80 | 80 | 80 | 82 | 80 | 79 | 82 | |
| The Spar Nord Bank share | |||||||||
| DKK per share of DKK 10 | |||||||||
| Share price, end of period Net asset value (NAV) |
79 77 |
134 69 |
134 69 |
121 72 |
116 75 |
97 77 |
79 77 |
116 75 |
|
| Earnings after tax | 4.9 | 6.6 | 3.3 | 2.9 | 2.8 | 2.7 | 2.2 | 12.3 | |
| Dividend | - | - | - | - | - | - | - | 3 | |
| Return Price/earnings |
- - |
- - |
- - |
- - |
- - |
- - |
- - |
-13 10 |
|
Spar Nord's pre-tax profits ended at DKK 340 million for the first six months of 2008 versus DKK 465 million in the same period in 2007. This profit performance yields an annualized 17% return on the beginning equity (excl. dividends).
Despite the economic decline, Spar Nord's local banks and particularly the leasing activities of Finans Nord continued to develop at a satisfactory pace, with continued growth recorded in both customer numbers and business volume.
The credit quality of the lending portfolio remains strong, emphasized by the fact that the account for losses and impairment of loans and advances showed a zero balance at 30 June. At the same time, the Bank has a well-diversified credit portfolio, with no single customer commitment exceeding 10% of the Bank's shareholders' equity, and a very low exposure to the property market.
Finally, in Q1 Spar Nord was able to carry extra payments from Nykredit in the amount of DKK 93 million to income in connection with the sale of Totalkredit.
The lower profits seen in the Interim Report covering the period 1 January – 30 June 2008 compared with the same period last year are chiefly due to developments in the securities area, where share prices dropped, interest rates climbed and the yield spread between Danish mortgage-credit and government bonds widened. In the interim financial statements for the first six months, these factors are manifest in a downturn in income from fees, charges and commissions in the securities area, a reduction of market-value adjustments and losses on the trading portfolio of securities.
In light of the stagnating business trends and the turbulent market, Management considers the interim financial statements satisfactory and repeats its forecast that total core earnings for the year before losses and impairment are expected to hover around DKK 675-775 million, with profits being projected to end at the lower end of the range.
Net interest income ended at DKK 658 million, which was DKK 114 million, or 21%, up on the same period last year. Other than the increased business volume, the growth is attributable to an interest margin that widened at a moderate pace and to an increase in the Bank's bond portfolio.
Net income from fees, charges and commissions ended 22% down on the first six months of 2007 at DKK 201 million. This decline is due primarily to developments on the capital markets, and thus lower income from securities trading and asset management. On the upside, income from remortgaging activities and loan transaction fees grew satisfactorily.
Market-value adjustments ended at DKK 48 million for the first half year, as much as 37% down on the same period in 2007. Earnings from customers' foreign-exchange and interest transactions were satisfactory, whereas losses were incurred, particularly in Q1, as a result of the wider yield spread between mortgage-credit and government bonds. Spar Nord retains a major portfolio of Danish mortgage-credit bonds as part of its cash resources, hedging the interest-rate risk with swaps and futures on government bonds.
| (DKK million)* | 1st half 2008 |
|---|---|
| Government bonds | 203 |
| Mortgage-credit bonds | 6,963 |
| Financial issuers | 2,491 |
| CDOs | 102 |
| Other issuers | 169 |
| Bonds | 9,928 |
| (DKK million)* | 1st half 2008 |
|---|---|
| AAA | 6,297 |
| AA | 2,718 |
| A | 543 |
| BBB | 105 |
| Unrated | 265 |
| Bonds | 9,928 |
* The bond portfolio plus spot and forward transactions (purchase + sale)
Market-value adjustments of investment securities (miscellaneous sector companies) ended at DKK 17 million, DKK 12 million up on the same period in 2007. This growth is due primarily to timing differences in market-value adjustments of the individual securities.
The item, "Other operating income", ended 21% up on the same period last year at DKK 43 million. This growth is attributable primarily to an increase in income from operating leases reported by Finans Nord A/S.
Profit on equity investments in associates and group enterprises fell 17% to DKK 44 million. This fall is attributable to lower
market-value adjustments reported for Nørresundby Bank A/S and Linde Partners Asset Management S.A.
Operating costs, depreciation and amortization ended at DKK 691 million in the first half of 2008 – 10% up on the same period last year. The rise, which was in line with the budget, is chiefly attributable to rising payroll costs connected with the Bank's expansion and an increase in staff size. Thus, at 30 June 2008 the staff numbered 1,432 persons people (in terms of full-time employees) versus 1,336 at the same time last year. Since 1 January, the staff has grown by 16 persons, and during Q2 2008 the number fell by two.
In addition to pay and pay-related items, IT costs grew. This is due to rising IT costs spurred by a mounting activity level (rising customer numbers) and an increase in development costs tied to a number of major development projects, including Spar Nord's IRB project.
In Q2, Spar Nord merged the branch at Bangsbo with the branch at Hånbæk, which means that three local banks were closed during the first six months of the year. In addition, as mentioned in the Q1 Report, six bank regions in North Jutland have merged to become three.
As yet, no decision to set up new local banks has been made in 2008, but the Bank maintains its goal of establishing one or two new local banks a year.
Costs and expenses are still expected to grow by 8-9% for all of 2008.
After net income recognition of DKK 8 million on the impairment account in Q1 2008, a net expense of the same order was recorded in Q2. For the year to date, Spar Nord has thus realized a break-even result as concerns impairment of loans and advances, etc., a highly satisfactory achievement viewed in light of market developments, and a testimony to the sustained strong credit quality of the lending portfolio.
One reason for the sustained satisfactory development in impairments is Spar Nord's low credit exposure to the property sector compared to the banking sector in general. Thus, only 11.7% of the Bank's overall lending relates to the property market.
| Spar Nord | Spar Nord | ||
|---|---|---|---|
| The Group | Bank | ||
| The sector | 1st half | 1st half | |
| 2007 | 2008 | 2008 | |
| Public authorities | 2.5 | 1.6 | 1.7 |
| Farming, hunting and forestry | 3.4 | 12.7 | 9.3 |
| Fisheries | 0.2 | 0.3 | 0.3 |
| Manufacturing, raw materials | |||
| extraction, public utilities | |||
| (power, gas, water and heating) | 8.4 | 4.7 | 3.4 |
| Building and construction | 2.4 | 5.1 | 2.3 |
| Trade, restaurants and hotels | 6.0 | 9.3 | 8.6 |
| Transportation, postal services | |||
| and telecommunications | 2.9 | 6.5 | 1.6 |
| Credit and financing activities | |||
| and insurance | 26.7 | 5.6 | 18.7 |
| Property administration | |||
| and trade, business service | 15.9 | 11.7 | 11.8 |
| - Rental properties | 6.7 | 6.7 | |
| - Other properties | 2.0 | 2.0 | |
| - Property services, etc. | 3.0 | 3.1 | |
| Other sectors | 3.6 | 10.8 | 10.3 |
| Business, incl. public | 72,0 | 68.3 | 68.0 |
| Retail customers | 28,0 | 31.7 | 32.0 |
| Total | 100.0 | 100,0 | 100,0 |
On the whole, Management finds that Spar Nord has a very satisfactory credit spread on its credit portfolio.
Despite major growth in net interest income, the reduction of net income from fees, charges and commissions, a downturn in market-value adjustments and a reduction of income on the impairment account mean that the Group's core earnings dropped 26% to DKK 318 million compared with the same period last year.
The Bank recorded a loss of DKK 71 million in the first half of 2008 on the Group's trading portfolio of securities and unlisted equity investments via Erhvervsinvest Nord A/S and Erhvervsinvest K/S - compared with the DKK 33 million gain in the same period in 2007. The disappointing result is due primarily to losses on interest-related claims resulting from widening yield spreads and the unfavourable development of Danish mortgage-credit bonds.
DKK 56 million of the DKK 71 million loss is attributable to losses on interest-related claims. The loss on shares amounts to a total of DKK 15 million, of which DKK 7 million relates to unlisted equity investments.
Conversely, in Q1 2008 Spar Nord was able to carry extra payments of DKK 93 million from Nykredit to income regarding the sale of Totalkredit.
In tune with Spar Nord's goal to run a retail bank based on a well-balanced risk exposure, the Bank decided in Q2 to reduce the level of its trading portfolio activity significantly. Consequently, in future risk exposure to the market will primarily take place by way of proprietary trading at the Markets division and via investments in unlisted shares through Erhvervsinvest Nord A/S, Erhvervsinvest K/S and Vækst-Invest Nordjylland A/S.
Since 30 June 2007, the total business volume (deposits, loans, advances and guarantees) has risen by 14% to DKK 80.3 billion.
Compared with the same time last year, the Group's loans and advances grew 14% to DKK 41.2 billion, while deposits rose by 26% to DKK 34.1 billion. The transition to the so-called "offset model" in the Totalkredit cooperation brought total guarantees down by 47% to DKK 4.0 billion.
32% of the Group's total lending and guarantees is attributable to retail customers at local banks, 46% to business customers at local banks, 7% to the Trading, Financial Markets & the International Division, and 15% to Finans Nord.
However, viewing developments in 2008 in isolation, the growth in business volume was moderate. While the Bank recorded a respectable 9% growth in deposits for the year to date, lending increased by only DKK 0.6 billion, or 2%.
The total growth encompasses a drop of DKK 1.5 billion in investment credits, and a decline in guaranteed foreign loans to customers of other banks in the amount of DKK 0.8 billion. Despite the slowdown in the Danish economy, ordinary lending to customers grew in the amount of DKK 2.9 billion.
In connection with the transition to the new capital coverage rules, the Bank's Management has reassessed the internal solvency targets. Upon the transition to Basel II, Spar Nord improved its solvency by about one percentage point, for which reason the Bank decided to increase the overall internal solvency target from 10 to 11%. At the same time, the decision was made to increase the target for the Bank's core capital (excl. hybrid capital) from 7.5% to 8%.
As of 30 June 2008, the Bank is comfortably above these new targets, with a solvency ratio of 11.9% (Q1 2008: 12.1%) and a core capital percentage, excluding hybrid core capital of 9.5% (Q1 2008: 9.4%). Inclusive of hybrid core capital, the percentage is 10.3 (Q1 2008: 10.3%).
Spar Nord's internal strategic liquidity target is for cash deposits, senior funding, subordinated debt and shareholders' equity to exceed the Bank's lending volume. Thus, the aim is for long-term funding to finance loans and advances at all times.
During the first six months of 2008, this target improved by about DKK 1.4 billion, which means that at 30 June 2008 the Bank had surpassed its target by DKK 2.3 billion. This improvement is primarily attributable to a rise in deposits coupled with limited lending growth.
| DKK billion | 2005 | 2006 | 2007 | 1st half 2008 |
|---|---|---|---|---|
| Deposits and other | ||||
| payables | 19.4 | 22.7 | 27.4 | 30.1 |
| Seniorloans | 2.0 | 4.0 | 8.5 | 8.5 |
| Shareholders' equity and | ||||
| supplementary capital | 4.7 | 5.1 | 5.9 | 5.9 |
| Generation of cash | 26.1 | 31.8 | 41.8 | 44.5 |
| Loans and advances | 27.1 | 34.3 | 40.9 | 42.2 |
| Liquidity target (> 0) | -1.0 | -2.5 | 0.9 | 2.3 |
As previously mentioned, the Bank established an EMTN programme in Q1 that permits the issuing of bonds having a value of 3 billion expressed in EUR. In Q2, Spar Nord issued the first DKK 200 million under the programme and also expects to issue further bonds in the second half of the year, thus additionally strengthening its cash resources.
The very positive development recorded by the Bank in recent years on the customer side continues. In the first half of the year, Spar Nord could add 6,000 new customers (net) to its customer roster, and Q2 2008 was thus the 14th consecutive quarter in which the Bank could record a net customer intake - a development that Management finds highly satisfactory.
Spar Nord's Local Banks recorded pre-tax profits of DKK 243 million for the first half of the year – 30% down on the same period last year. This decline is attributable to a downturn in net income from fees, charges and commissions and lower income recorded on loan impairment, etc.
The total business volume increased by 10% (YOY) to DKK 61.3 billion. The growth in lending amounted to 15% and 25% in deposits (YOY). Viewing the first half of 2008 in isolation, the growth in lending amounted to 0% and 11% for deposits.
Since the same time last year, new local banks were established in Randers and Esbjerg – in both locations with highly satisfactory results in terms of customer numbers and financially. As yet, no new local banks have been established in 2008, but the Bank still intends to establish one or two new local banks a year. Thus, Spar Nord maintains its goal of establishing local banks in all major towns and cities in the country.
Concurrently with the expansion strategy, efforts are ongoing to adapt the branch structure, for instance by merging branches and bank regions and closing down smaller branches. During the first six months, branches were closed down in Ingstrup, Øster Hornum and Bangsbo, while the bank regions of Løgstør and Aars, Terndrup and Støvring plus Hjørring and Hirtshals were combined. All of these actions were initiated and implemented locally.
In total, the Spar Nord chain now consists of 79 local banks in 29 bank regions, 14 of which are located in North Jutland and 15 in the rest of Denmark.
The leasing company Finans Nord A/S continues its extremely positive development, recording core earnings of DKK 66 million for the first six months of 2008 – 29% up on the same period last year.
The major advance in profits is attributable to sustained growth in volume in Denmark and Sweden, as well as to interest developments during the first six months and the derivative growth in net interest income.
In total, during the first six months new financing agreements worth DKK 1.9 billion were concluded, about DKK 325 million of which in Sweden. At 30 June, Finans Nord had a staff of 91 compared with 81 at the same time last year. The new staff members work at the new branch, Finans Nord Easyfleet, which operates on the market for private car leasing.
Turbulence on the financial markets characterized the first half of 2008, with declining share prices, mounting interest rates and a widening of yield spreads.
All the same, Trading, Financial Markets & the International Division realized core earnings of DKK 66 million, an amount only 7% lower than in the second half of 2007. Q2 in particular proved a highly satisfactory period, with earnings ending at DKK 53 million.
As concerns the underlying customer activities, progress was recorded in the interest and forex areas, while activities in the equity investments area turned out to be more subdued than in 2007.
The Annual Report for 2007 and the Quarterly Report for the first three months of 2008 projected core earnings before impairment to be in the DKK 675-775 million range for the full year of 2008. In light of developments in Q2, Management has chosen to maintain this forecast, with profits now expected to close at the lower end of the range.
For the year as a whole, impairment of loans and advances, etc., is expected to end at a small expense.
THE DANISH FINANCIAL SUPERVISORY AUTHORITY'S LAYOUT AND RATIO SYSTEM
| DKK million | 1st. half 2008 |
1st. half 2007 |
Change in pct. |
1st. half 2004 |
1st. half 2005 |
1st. half 2006 |
1st. half 2007 |
1st. half 2008 |
Full Year 2007 |
|---|---|---|---|---|---|---|---|---|---|
| INCOME STATEMENT | |||||||||
| Interest income | 1,723.7 | 1,308.5 | 31.7 | 661.2 | 722.9 | 910.6 | 1,308.5 | 1,723.7 | 2,835.4 |
| Interest expenses | 1,068.4 | 764.3 | 39.8 | 211.1 | 273.7 | 405.8 | 764.3 | 1,068.4 | 1,687.0 |
| Net interest income | 655.3 | 544.2 | 20.4 | 450.1 | 449.2 | 504.8 | 544.2 | 655.3 | 1,148.4 |
| Dividends on shares, etc. | 17.0 | 15.7 | 8.3 | 17.3 | 13.0 | 20.0 | 15.7 | 17.0 | 16.1 |
| Fees, charges and commissions received | 238.3 | 294.9 | -19.2 | 173.1 | 212.7 | 267.0 | 294.9 | 238.3 | 558.5 |
| Fees, charges and commissions paid | 37.5 | 36.2 | 3.6 | 22.7 | 42.2 | 34.0 | 36.2 | 37.5 | 75.7 |
| Net income from interest, fees, charges and commissions |
873.1 | 818.6 | 6.7 | 617.8 | 632.7 | 757.8 | 818.6 | 873.1 | 1,647.3 |
| Market-value adjustments | 62.7 | 96.4 | -35.0 | 58.0 | 153.4 | 60.6 | 96.4 | 62.7 | 164.7 |
| Other operating income | 42.6 | 35.5 | 20.0 | 17.4 | 37.3 | 44.3 | 35.5 | 42.6 | 77.3 |
| Staff costs and administrative expenses Depreciation, amortization and impairment |
648.1 | 593.1 | 9.3 | 414.2 | 457.6 | 535.7 | 593.1 | 648.1 | 1.216.6 |
| of intangible assets and property, plant | |||||||||
| and equipment | 44.5 | 36.4 | 22.3 | 32.5 | 30.3 | 36.6 | 36.4 | 44.5 | 73.5 |
| Other operating expenses Impairment of loans, advances and |
1.0 | 0.7 | 42.9 | 3.1 | 1.4 | 0.8 | 0.7 | 1.0 | 1.4 |
| receivables, etc. | 0.0 | -80.1 | -100.0 | 94.9 | 23.6 | -11.5 | -80.1 | 0.0 | -113.4 |
| Profit/loss on equity investments in | |||||||||
| associates and group enterprises | 54.8 | 64.7 | -15.3 | 24.3 | 13.7 | 34.1 | 64.7 | 54.8 | 121.8 |
| Profit/loss before tax | 339.6 | 465.1 | -27.0 | 172.8 | 324.2 | 335.2 | 465.1 | 339.6 | 833.0 |
| Tax | 72.5 | 99.3 | -27.0 | 43.6 | 80.2 | 82.7 | 99.3 | 72.5 | 152.7 |
| Profit after tax | 267.1 | 365.8 | -27.0 | 129.2 | 244.0 | 252.5 | 365.8 | 267.1 | 680.3 |
| BALANCE SHEET | |||||||||
| Total assets | 68,561 | 57,590 | 19.1 | 34,598 | 42,385 | 50,064 | 57,590 | 68,561 | 63,394 |
| Loans and advances | 42,205 41,155 |
36,206 36,206 |
16.6 13.7 |
18,162 17,878 |
24,826 24,498 |
28,911 28,813 |
36,206 36,206 |
42,205 41,155 |
40,939 40,506 |
| - bank loans and advances - reverse transactions |
1,050 | 0 | 284 | 328 | 98 | 0 | 1,050 | 433 | |
| Deposits | 34,124 | 27,047 | 26.2 | 18,568 | 22,063 | 23,879 | 27,047 | 34,124 | 31,416 |
| - bank deposits | 34,124 | 27,047 | 26.2 | 18,568 | 22,063 | 23,879 | 27,047 | 34,124 | 31,416 |
| - repo transactions Subordinated debt |
0 1,658 |
0 1,663 |
-0.3 | 0 904 |
0 1,463 |
0 1,559 |
0 1,663 |
0 1,658 |
0 1,770 |
| Shareholders' equity | 4,219 | 3,849 | 9.6 | 2,214 | 2,435 | 3,116 | 3,849 | 4,219 | 4,138 |
| Guarantees, etc. | 3,959 | 7,475 | -47.0 | 4,169 | 6,215 | 6,517 | 7,475 | 3,959 | 4,048 |
| Risk-weighted assets | 42,234 | 41,845 | 0.9 | 24,145 | 29,731 | 34,939 | 41,845 | 42,234 | 43,656 |
| Core capital (incl. hybrid core capital) | |||||||||
| after deductions Impairment of loans, advances and |
4,337 | 3,911 | 10.9 | 2,013 | 2,465 | 3,109 | 3,911 | 4,337 | 4,098 |
| receivables, etc. | 422 | 470 | -10.3 | 700 | 684 | 688 | 470 | 422 | 444 |
| Non-performing loans | 33 | 31 | 7.1 | 144 | 55 | 44 | 31 | 33 | 27 |
| Business volume | 80,288 | 70,728 | 13.5 | 40,899 | 53,104 | 59,307 | 70,728 | 80,288 | 76,403 |
| FINANCIAL RATIOS | |||||||||
| Solvency | 11.9 | 11.0 | 9.6 | 9.7 | 10.4 | 11.0 | 11.9 | 11.1 | |
| Solvency ratio (%) Core capital ratio (%) |
10.3 | 9.3 | 8.4 | 8.3 | 8.9 | 9.3 | 10.3 | 9.4 | |
| Earnings | |||||||||
| Return on equity before tax (%) Return on equity after tax (%) |
8.1 6.4 |
12.4 9.8 |
7.9 5.9 |
13.5 10.2 |
10.9 8.2 |
12.4 9.8 |
8.1 6.4 |
21.4 17.5 |
|
| Income/cost ratio (DKK) | 1.49 | 1.85 | 1.32 | 1.64 | 1.60 | 1.85 | 1.49 | 1.71 | |
| Market risks Interest-rate risk (%) |
1.7 | 1.1 | 3.8 | 4.0 | 2.6 | 1.1 | 1.7 | 2.1 | |
| Foreign-exchange position (%) | 8.8 | 6.0 | 16.3 | 11.7 | 6.0 | 6.0 | 8.8 | 5.7 | |
| Foreign-exchange risk (%) | 0.1 | 0.1 | 0.1 | 0.1 | 0.3 | 0.1 | 0.1 | 0.1 | |
| Credit risks | |||||||||
| Loans and advances rel. to deposits | 123.7 | 133.9 | 97.8 | 112.5 | 121.1 | 133.9 | 123.7 | 130.3 | |
| Loans and advances plus impairment | |||||||||
| rel. to deposits Loans and advances rel. to shareholders' |
124.9 | 135.6 | 101.6 | 115.6 | 123.9 | 135.6 | 124.9 | 131.7 | |
| equity | 10.0 | 9.4 | 8.2 | 10.2 | 9.3 | 9.4 | 10.0 | 9.9 | |
| Increase in loans and advances for | |||||||||
| the period (%) Excess coverage relative to statutory cash |
3.1 | 5.5 | 2.1 | 29.9 | 6.6 | 5.5 | 3.1 | 19.3 | |
| ratio requirement (%) | 73.2 | 53.3 | 122.5 | 77.0 | 57.6 | 53.3 | 73.2 | 91.9 | |
| Sum total of major commitments (%) | 74.7 | 113.0 | 49.2 | 100.3 | 90.0 | 113.0 | 74.7 | 65.0 | |
| Impairment for the period in per cent | 0.0 | -0.2 | 0.4 | 0.1 | 0.0 | -0.2 | 0.0 | -0.2 | |
| SHARE-RELATED FINANCIAL RATIOS | |||||||||
| DKK per share of DKK 10 | 4.7 | 6.4 | 2.5 | 4.7 | 4.4 | 6.4 | 4.7 | 11.9 | |
| Earnings per share for the period Net asset value (NAV), incl. earnings per |
|||||||||
| share for the period | 76.8 | 69.2 | 42.9 | 47.0 | 55.5 | 69.2 | 76.8 | 75.0 | |
| Dividend per share | - 16.9 |
- 20.8 |
- 21.5 |
- 18.6 |
- 29.4 |
- 20.8 |
- 16.9 |
3.0 9.7 |
|
| Share price/NAV per share for the period Share price/NAV per share |
1.0 | 1.9 | 1.2 | 1.9 | 2.3 | 1.9 | 1.0 | 1.6 | |
Aalborg, 7 August 2008
The Supervisory and Executive Boards have today reviewed and adopted the Interim Report of Spar Nord Bank A/S for the first six months of 2008.
The Interim Report for the first six months of 2008 has not been audited or subjected to a review by the Group's auditor.
The Consolidated Interim Financial Statements for the first six months of 2008 have been presented in accordance with IAS 34 Interim Financial Reporting, and the Parent Company's Interim Financial Statements for the first six months of the year in accordance with the Danish Financial Business Act. Furthermore, the Interim Report is presented in accordance with additional Danish disclosure requirements regarding interim reports for listed financial companies.
We consider the accounting policies applied to be appropriate, and in our opinion the Interim Report gives a true and fair view of the Group's and the Parent Company's assets, liabilities and financial position at 30 June 2008 and of the results of the Group's and the Parent Company's operations and the Group's cash flows for the first half of 2008.
We also consider the Management's review to give a fair presentation of the development in the Group's and Parent Company's activities and financial affairs as well as a description of the significant risks and elements of uncertainty that may affect the Group or Parent Company.
EXECUTIVE BOARD
Lasse Nyby Chief Executive Officer
John Lundsgaard Managing Director
Lars Møller Managing Director
Torben Fristrup Chairman
Erling Kjær Deputy Chairman
Niels Kristian Kirketerp
Per Søndergaard Pedersen
Jan Høholt Jensen Elected by the employees
Per Nikolaj Bukh
Carsten Normann
Jannie Skovsen Elected by the employees
Ole Skov Elected by the employees
| 23 April | 23 Juli | |
|---|---|---|
| 2008 | 2008 | |
| Torben Fristrup | 4,200 | 4,200 |
| Erling Kjær | 14,475 | 14,475 |
| Per Nikolaj Bukh | 100 | 100 |
| Jannie Skovsen | 1,318 | 1,318 |
| Niels Kristian Kirketerp | 7,090 | 7,090 |
| Jan Høholt Jensen | 3,208 | 3,208 |
| 23 April | 23 Juli | |
|---|---|---|
| 2008 | 2008 | |
| Carsten Normann | 1,380 | 1,380 |
| Ole Skov | 938 | 938 |
| Per Søndergaard Pedersen | 10,380 | 10,380 |
| Lasse Nyby | 22,380 | 22,381 |
| John Lundsgaard | 23,770 | 23,770 |
| Lars Møller | 25,000 | 25,000 |
Note: The holdings include all shares held by all members of the household,
| Share capital End of period *) DKK million |
Shareholders' equity End of period *) DKK million |
Profit/loss*) DKK million |
Ownership interest 30.06.2008 % |
Ownership interest 30.06.2007 % |
|
|---|---|---|---|---|---|
| Consolidated subsidiaries | |||||
| Erhvervsinvest Nord A/S, Aalborg | 30 | 121 | 16 | 100 | 100 |
| Finans Nord A/S, Aalborg | 10 | 365 | 108 | 100 | 100 |
| SN Finans Nord AB, Sverige | 37 | 33 | -2 | 100 | 100 |
| Finans Nord Cross Border A/S, Aalborg | 1 | 1 | 0 | 100 | 100 |
| Sparekassen Nordjyllands | |||||
| Investeringsselskab af 10.10.91 A/S | 12 | 11 | -2 | 100 | 100 |
| Non-consolidated companies | |||||
| Beluni Inc., USA (1) | 0 | 0 | 0 | 100 | 100 |
(1) The company is in liquidation
*) According to the most recent Annual Report
| Note | DKK '000 | 1st half 2008 |
1st half 2007 |
Q2 2008 |
Q2 2007 |
Full year 2007 |
|---|---|---|---|---|---|---|
| 3 | Interest income | 1,723,701 | 1,308,515 | 881,566 | 675,632 | 2,835,379 |
| 4 | Interest expenses | 1,068,430 | 764,269 | 537,882 | 404,844 | 1,687,008 |
| Net interest income | 655,271 | 544,246 | 343,684 | 270,788 | 1,148,371 | |
| Dividends on shares, etc. | 16,957 | 15,725 | 16,359 | 15,359 | 16,111 | |
| 5+7 | Fees, charges and commissions received | 238,288 | 294,851 | 117,752 | 152,324 | 558,548 |
| 6+7 | Fees, charges and commissions paid | 37,463 | 36,234 | 21,006 | 24,015 | 75,692 |
| Net income from interest, fees, charges and commissions | 873,053 | 818,588 | 456,789 | 414,456 | 1,647,338 | |
| 8 | Market-value adjustments | 62,702 | 96,367 | 28,404 | 31,575 | 164,686 |
| Other operating income | 42,482 | 35,526 | 21,998 | 18,659 | 77,384 | |
| 9 | Staff costs and administrative expenses | 648,066 | 593,057 | 325,556 | 300,924 | 1,216,622 |
| Depreciation, amortization and impairment of intangible assets | ||||||
| and property, plant and equipment | 44,455 | 36,365 | 22,466 | 18,822 | 73,522 | |
| Other operating expenses | 1,019 | 710 | 596 | -691 | 1,369 | |
| 11 | Impairment of loans, advances and receivables, etc. | -42 | -80,096 | 8,273 | -45,203 | -113,398 |
| Profit/loss on equity investments in associates and group enterprises | 54,846 | 64,656 | 6,067 | 31,916 | 121,753 | |
| Profit/loss before tax | 339,585 | 465,101 | 156,367 | 222,754 | 833,046 | |
| Tax | 72,443 | 99,324 | 37,232 | 41,117 | 152,776 | |
| Profit | 267,142 | 365,777 | 119,135 | 181,637 | 680,270 | |
| EARNINGS PER SHARE | ||||||
| Earnings per share | 4.9 | 6.6 | 2.2 | 3.2 | 12.3 | |
| Diluted earnings per share | 4.7 | 6.5 | 2.1 | 3.2 | 12.0 | |
| Note | DKK '000 | 1st half 2008 |
1st half 2007 |
Full year 2007 |
|---|---|---|---|---|
| ASSETS | ||||
| Cash balances and demand deposits with central banks | 1,351,640 | 448,556 | 398,379 | |
| 10 | Receivables from credit institutions and central banks | 5,338,476 | 6,304,629 | 5,378,973 |
| Loans, advances and other receivables at amortized cost | 42,205,071 | 36,206,394 | 40,938,787 | |
| Bonds at fair value | 10,760,428 | 6,871,093 | 8,259,406 | |
| Shares, etc. | 542,131 | 634,015 | 675,745 | |
| Equity investments in associates, etc. | 906,493 | 807,966 | 887,612 | |
| Assets linked to pooled schemes | 4,051,484 | 3,792,031 | 4,029,172 | |
| Intangible assets Investment properties |
55,106 35,344 |
51,002 15,376 |
57,571 16,328 |
|
| Corporate properties | 442,585 | 447,238 | 429,563 | |
| Land and buildings, total | 477,929 | 462,614 | 445,891 | |
| Other property, plant and equipment | 289,081 | 201,314 | 271,995 | |
| Current tax assets | 31,094 | 0 | 28,880 | |
| Temporary assets | 16,741 | 15,046 | 15,350 | |
| 12 | Other assets | 2,478,562 | 1,744,341 | 1,946,131 |
| Prepayments | 57,044 | 50,637 | 59,740 | |
| Total assets | 68,561,280 | 57,589,638 | 63,393,632 | |
| EQUITY AND LIABILITIES | ||||
| LIABILITIES OTHER THAN PROVISIONS | ||||
| Payables to credit institutions and central banks | 23,540,533 | 19,664,471 | 20,960,984 | |
| Deposits and other payables | 30,072,930 | 23,255,366 | 27,386,887 | |
| Deposits in pooled schemes Issued bonds at amortized cost |
4,051,484 | 3,792,031 | 4,029,172 | |
| Other non-derivative financial liabilities at fair value | 1,897,778 88,754 |
2,148,650 413,584 |
2,170,969 87,814 |
|
| Current tax liabilities | 0 | 146,882 | 0 | |
| Temporary liabilities | 5,044 | 5,162 | 5,104 | |
| 13 | Other liabilities | 2,603,271 | 2,338,319 | 2,478,782 |
| Deferred income | 150,591 | 121,917 | 130,872 | |
| Total liabilities other than provisions | 62,410,385 | 51,886,382 | 57,250,584 | |
| PROVISIONS FOR LIABILITIES | ||||
| Provisions for pensions and related liabilities | 3,733 | 3,516 | 3,858 | |
| Provisions for deferred tax | 254,663 | 152,326 | 213,882 | |
| Provisions for losses on guarantees | 4,748 | 5,539 | 5,003 | |
| Other provisions | 10,855 | 30,399 | 11,562 | |
| Total provisions for liabilities | 273,999 | 191,780 | 234,305 | |
| 14 | SUBORDINATED DEBT | |||
| Subordinated debt | 1,658,233 | 1,662,950 | 1,770,370 | |
| SHAREHOLDERS' EQUITY | ||||
| Share capital | 570,688 | 570,688 | 570,688 | |
| Revaluation reserves | 46,880 | 37,393 | 46,994 | |
| Accumulated exchange adjustments of foreign entities | -1,470 | -177 | -1,332 | |
| Accumulated changes in value, total | 45,410 | 37,216 | 45,662 | |
| Statutory reserves | 471,714 | 341,244 | 441,481 | |
| Other reserves, total | 471,714 | 341,244 | 441,481 | |
| Retained earnings or loss | 3,130,851 | 2,899,378 | 3,080,542 | |
| Total shareholders' equity | 4,218,663 | 3,848,526 | 4,138,373 | |
| Total equity and liabilities | 68,561,280 | 57,589,638 | 63,393,632 | |
| OFF-BALANCE-SHEET ITEMS | ||||
| 15 | Guarantees, etc. Other commitments |
3,958,549 4,406 |
7,474,739 0 |
4,048,242 0 |
| Total off-balance-sheet items | 3,962,955 | 7,474,739 | 4,048,242 | |
| Foreign currency | |||||||
|---|---|---|---|---|---|---|---|
| DKK'000 | Share capital | Revaluation reserve |
translation reserves | Statutory reserve |
Proposed dividend |
Retained earnings |
Total |
| SHAREHOLDERS' EQUITY 30.06.2008 | |||||||
| Shareholders' equity at 01.01.2008 | 570,688 | 46,994 | -1,332 | 441,481 | 171,206 | 2,909,336 | 4,138,373 |
| Translation of foreign entity | 0 | 0 | -138 | 0 | 0 | 0 | -138 |
| Net revaluation of properties | 0 | -114 | 0 | 0 | 0 | 0 | -114 |
| Other capital movements in associates | |||||||
| and group enterprises | 0 | 0 | 0 | -5,883 | 0 | 0 | -5,883 |
| Share-based payment | 0 | 0 | 0 | 0 | 0 | 6,053 | 6,053 |
| Net gains/losses recognized directly in shareholders' equity | 0 | -114 | -138 | -5,883 | 0 | 6,053 | -82 |
| Profit for the period | 0 | 0 | 0 | 54,846 | 0 | 212,296 | 267,142 |
| Total income for the period | 0 | -114 | -138 | 48,963 | 0 | 218,349 | 267,060 |
| Dividend to shareholders | 0 | 0 | 0 | 0 | -171,206 | 0 | -171,206 |
| Dividend received | 0 | 0 | 0 | -18,730 | 0 | 18,730 | 0 |
| Dividend received, treasury shares | 0 | 0 | 0 | 0 | 0 | 5,648 | 5,648 |
| Disposal upon acquisition of treasury shares | 0 | 0 | 0 | 0 | 0 | -266,958 | -266,958 |
| Addition upon sale of treasury shares | 242,309 | 242,309 | |||||
| Tax, treasury shares | 0 | 0 | 0 | 0 | 0 | 3,437 | 3,437 |
| Other movements, total | 0 | 0 | 0 | -18,730 | -171,206 | 3,166 | -186,770 |
| Shareholders' equity, end of period, the Group | 570,688 | 46,880 | -1,470 | 471,714 | 0 | 3,130,851 | 4,218,663 |
| SHAREHOLDERS' EQUITY 30.06.2007 | |||||||
| Shareholders' equity at 01.01.2007 | 570,688 | 37,393 | 0 | 285,275 | 171,206 | 2,584,053 | 3,648,615 |
| Reclassification at 01.01.2007 | 36,422 | -36,422 | 0 | ||||
| Translation of foreign entity | 0 | 0 | -177 | 0 | 0 | 177 | 0 |
| Other capital movements in associates and | |||||||
| group enterprises | 0 | 0 | 0 | 7,151 | 0 | 6,170 | 13,321 |
| Share-based payment | 0 | 0 | 0 | 0 | 0 | 16,442 | 16,442 |
| Net gains/losses recognized directly in shareholders' equity | 0 | 0 | -177 | 7,151 | 0 | 22,789 | 29,763 |
| Profit for the period | 0 | 0 | 0 | 73,431 | 0 | 292,346 | 365,777 |
| Total income for the period | 0 | 0 | -177 | 80,582 | 0 | 315,135 | 395,540 |
| Dividend to shareholders | 0 | 0 | 0 | 0 | -171,206 | 0 | -171,206 |
| Dividend received | 0 | 0 | 0 | -24,613 | 0 | 24,613 | 0 |
| Dividend received, treasury shares | 0 | 0 | 0 | 0 | 0 | 3,998 | 3,998 |
| Disposal upon acquisition of treasury shares | 0 | 0 | 0 | 0 | 0 | -346,223 | -346,223 |
| Addition upon sale of treasury shares | 311,733 | 311,733 | |||||
| Tax, treasury shares | 0 | 0 | 0 | 0 | 0 | 6,069 | 6,069 |
| Other movements, total | 0 | 0 | 0 | -24,613 | -171,206 | 190 | -195,629 |
| Shareholders' equity, end of period, the Group | 570,688 | 37,393 | -177 | 377,666 | 0 | 2,862,956 | 3,848,526 |
The share capital consists of 57,068,810 shares in the denomination of DKK 10.
| DKK '000 | 1st half 2008 |
1st half 2007 |
Full year 2007 |
|---|---|---|---|
| Capital base and solvency ratio | |||
| Shareholders' equity | 4,218,663 | 3,848,526 | 4,138,373 |
| Proposed dividend /expected dividend | 85,603 | 85,603 | 171,206 |
| Intangible assets in the Spar Nord Bank Group | 55,106 | 51,002 | 57,571 |
| Other deductions | 61,092 | 125,569 | 141,852 |
| Core capital after deductions | 4,016,862 | 3,586,352 | 3,767,744 |
| Hybrid core capital | 320,409 | 324,770 | 330,617 |
| Core capital (incl. hybrid core capital) after deductions | 4,337,271 | 3,911,122 | 4,098,361 |
| Subordinated debt (excl. hybrid core capital) | 1,337,824 | 1,338,180 | 1,439,753 |
| Revaluation reserves, etc. | 45,410 | 37,216 | 45,662 |
| Other deductions | 680,391 | 681,591 | 727,928 |
| Capital base after deductions | 5,040,114 | 4,604,927 | 4,855,848 |
| Risk-weighted items | 42,233,667 | 41,845,400 | 43,655,511 |
| Core capital ratio (excl. hybrid core capital) (%) | 9.5 | 8.6 | 8.6 |
| Core capital ratio (incl. hybrid core capital) after deduction in per cent of risk-weighted items, total (%) | 10.3 | 9.3 | 9.4 |
| Solvency ratio (%) | 11.9 | 11.0 | 11.1 |
| The determination of solvency ratio includes the profit for the period. |
| DKK '000 | 1st half 2008 |
1st half 2007 |
Full year 2007 |
|---|---|---|---|
| CASH GENERATED FROM OPERATIONS | |||
| Profit/loss before tax | 339,585 | 465,101 | 833,046 |
| Depreciation, amortization and impairment of property, plant and equipment and intangible assets | 44,455 | 36,365 | 73,522 |
| Gains and losses on the sale of property, plant and equipment and intangible assets | -213 | -197 | -465 |
| Adjustment of impairment of loans and advances, etc. | 42 | 80,096 | -81,390 |
| Provisions for liabilities | -971 | -23,074 | -31,065 |
| Profit/loss on equity investments | -54,846 | -64,656 | -121,753 |
| Expensed for share-based payment | 6,053 | 16,442 | 31,549 |
| Corporate income tax paid Cash generated from operations, total |
-29,294 304,811 |
-10,458 499,619 |
-170,405 533,039 |
| WORKING CAPITAL | |||
| Movement in credit institutions and central banks, net | 2,701,308 | -3,627,025 | -574,866 |
| Movement in loans and advances | -1,264,219 | -1,968,298 | -6,538,345 |
| Movement in bond portfolio | -2,501,022 | 1,549,734 | 161,421 |
| Movement in equity portfolio | 134,987 | -1,547 | -44,953 |
| Movement in issued bonds | -273,191 | 572,020 | 594,339 |
| Movement in other assets and other liabilities, net | -386,048 | -629,161 | -1,029,026 |
| Movement in deposits | 2,686,042 | 552,576 | 4,684,098 |
| Total working capital | 1,097,857 | -3,551,701 | -2,747,332 |
| Cash generated from operations, total | 1,402,668 | -3,052,082 | -2,214,293 |
| INVESTMENTS | |||
| Net investment in group enterprises and associates | 5,037 | -16,016 | -38,686 |
| Net investment in intangible assets | -25 | -76 | -7,877 |
| Net investment in property, plant and equipment | -92,380 | -70,335 | -149,907 |
| Net investment in treasury shares | -24,647 | -34,491 | -91,644 |
| Dividends from group enterprises and associates | 23,673 | 24,613 | 26,413 |
| Cash generated from investments, total | -88,342 | -96,305 | -261,701 |
| FINANCING | |||
| Subordinated debt | -112,137 | 204,803 | 312,223 |
| Dividend to shareholders, excluding dividend on treasury shares Cash generated from financing, total |
-165,558 -277,695 |
-167,208 37,595 |
-167,208 145,015 |
| Movements in cash and cash equivalents for the period | 1,036,631 | -3,110,792 | -2,330,979 |
| Cash and cash equivalents, beginning of year | 4,925,240 | 7,256,219 | 7,256,219 |
| Movements in cash and cash equivalents for the period Cash and cash equivalents, end of period |
1,036,631 5,961,871 |
-3,110,792 4,145,427 |
-2,330,979 4,925,240 |
| Cash and cash equivalents, end of period | |||
| Cash, cash equivalents and demand deposits with central banks | 2,121,873 | 957,641 | 1,162,500 |
| Total receivables from credit institutions and central banks with less than | |||
| 3 mths to maturity | 3,839,998 | 3,187,786 | 3,762,740 |
| Total | 5,961,871 | 4,145,427 | 4,925,240 |
The Interim Report of Spar Nord Bank has been prepared in accordance with IAS 34, Interim Financial Reporting, and in accordance with additional Danish disclosure requirements for interim reports prepared by listed financial companies.
The accounting policies have been consistently applied with those adopted in the 2007 Annual Report. The 2007 Annual Report contains the complete wording of the accounting policies applied.
The measurement of certain assets and liabilities requires Management to estimate how future events will impact on the value of such assets and liabilities. Estimates of significance to the financial reporting are made in connection with determining the impairment of loans and advances, the fair value of unlisted financial instruments, provisions, etc. Estimates are based on assumptions that Management consider appropriate but which are uncertain by their nature.
The International Accounting Standards Board (IASB) has adopted a number of international accounting standards and interpretations that have not yet entered into force. None of these are expected to have any major impact on the Group's financial reporting.
| Notes | Trading, Financial Markets & The |
Corporate | Staff | Earnings from | |||||
|---|---|---|---|---|---|---|---|---|---|
| Note | DKK million | Spar Nords Lokal Banks |
International Division |
Finans Nord A/S |
Coordination & Support |
functions and unallocated |
investment portfolios, etc. |
Eliminations | Total |
| 2 | Business segments - 1st half 2008 | ||||||||
| INCOME STATEMENT | |||||||||
| Interest income | 892.5 | 540.5 | 214.7 | -1.7 | 200.5 | -2.9 | -119.9 | 1,723.7 | |
| Interest expenses | 381.9 | 442.3 | 119.4 | 1.7 | 243.0 | 0.0 | -119.9 | 1,068.4 | |
| Net interest income | 510.6 | 98.2 | 95.3 | -3.4 | -42.5 | -2.9 | 0.0 | 655.3 | |
| Net income from fees, charges and commissions | 200.4 | 0.0 | 2.4 | 3.2 | -4.9 | -0.3 | 0.0 | 200.8 | |
| Dividends on shares, etc. | 9.0 | 0.7 | 0.0 | -0.1 | 5.4 | 2.0 | 0.0 | 17.0 | |
| Market-value adjustments | 58.7 | -12.4 | 1.4 | 2.7 | -2.3 | 14.6 | 0.0 | 62.7 | |
| Other operating income | 6.9 | 2.4 | 28.4 | -5.0 | 14.5 | 0.0 | -4.6 | 42.6 | |
| Profit/loss on equity investments in associates and | |||||||||
| group enterprises | 3.3 | 0.0 | 0.0 | 0.0 | 40.8 | 10.7 | 0.0 | 54.8 | |
| Total income | 788.9 | 88.9 | 127.5 | -2.6 | 11.0 | 24.1 | -4.6 | 1,033.2 | |
| Operating costs | 550.5 | 22.7 | 56.4 | -3.9 | 70.1 | 2.4 | -4.6 | 693.6 | |
| Profit/loss before impairment of loans and advances, etc. | 238.4 | 66.2 | 71.1 | 1.3 | -59.1 | 21.7 | 0.0 | 339.6 | |
| Impairment of loans and advances, etc. | -5.0 | 0.0 | 5.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Profit/loss before tax | 243.4 | 66.2 | 66.1 | 1.3 | -59.1 | 21.7 | 0.0 | 339.6 | |
| BALANCE SHEET | |||||||||
| Assets | |||||||||
| Loans, advances and other receivables at | |||||||||
| amortized cost | 31,326.2 | 9,670.9 | 6,866.1 | 1.3 | 0.0 | 2.1 | -5,661.5 | 42,205.1 | |
| Miscellaneous assets | 4,709.7 | 15,086.9 | 282.2 | 358.3 | 3,633.3 | 2,374.6 | -88.8 | 26,356.2 | |
| Total assets | 68,561.3 | ||||||||
| Liabilities | |||||||||
| Deposits and other payables | 26,515.1 | 3.455,6 | 0.0 | 122.4 | 0.0 | 0.0 | -20.2 | 30,072.9 | |
| Shareholders' equity (allocated capital) | 2,326.3 | 368.3 | 474.2 | 36.7 | 970.7 | 42.5 | 0.0 | 4,218.7 | |
| Miscellaneous liabilities | 4,529.1 | 14,697.3 | 6,878.1 | 346.6 | 13,484.1 | 64.6 | -5,730.1 | 34,269.7 | |
| Total liabilities | 68,561.3 | ||||||||
| FINANCIAL RATIOS | |||||||||
| Annualized return on equity (%) **) | 21.1 | 34.8 | 29.4 | - | - | - | - | ||
| Costs as a percentage of income | 0.70 | 0.26 | 0.44 | - | - | - | - | ||
| Risk-weighted items, end of period | 29,079.2 | 4,603.7 | 5,636.8 | 458.5 | 1,924.3 | 531.2 | - | 42,233.7 | |
| Number of employees (end of period, full-time) | 932 | 66 | 91 | 247 | 96 | 0 | 0 | 1,432 | |
* Earnings from investment portfolios, etc. consist of earnings from the Bank's trading portfolio, the sale of shares in Totalkredit, ErhvervsInvest Nord A/S and companies from which investment in unlisted shares is carried on.
** The annualized rate of return on equity has been calculated on allocated capital (8%) based on average risk-weighted items.
In accordance with applicable rules, the secondary segment reporting shows Spar Nord's activities by the geographical areas in which the Group operates. Spar Nord only carries on activities outside Denmark to a limited extent. Consequently, in accordance with IAS 14 no disclosure is provided regarding the secondary segment.
| Notes | Trading, Financial Markets & The |
Corporate | Staff | Earnings from | |||||
|---|---|---|---|---|---|---|---|---|---|
| Note | DKK million | Spar Nords Lokal Banks |
International Division |
Finans Nord A/S |
Coordination & Support |
functions and unallocated |
investment portfolios, etc. |
Eliminations | Total |
| 2 | Business segments - 1st half 2008 | ||||||||
| INCOME STATEMENT | |||||||||
| Interest income | 721.2 | 389.7 | 151.2 | -0.7 | 125.1 | 3.3 | -81.3 | 1,308.5 | |
| Interest expenses | 267.2 | 341.0 | 80.4 | 0.0 | 153.8 | 3.2 | -81.3 | 764.3 | |
| Net interest income | 454.0 | 48.7 | 70.8 | -0.7 | -28.7 | 0.1 | 0.0 | 544.2 | |
| Net income from fees, charges and commissions | 248.1 | 7.6 | 1.0 | 9.1 | -7.2 | 0.1 | 0.0 | 258.7 | |
| Dividends on shares, etc. | 0.0 | 1.2 | 0.0 | 0.0 | 12.5 | 2.0 | 0.0 | 15.7 | |
| Market-value adjustments | 45.7 | 33.8 | -0.1 | 2.2 | -5.7 | 20.5 | 0.0 | 96.4 | |
| Other operating income | 17.0 | 3.7 | 25.6 | -11.7 | 4.8 | 0.2 | -4.1 | 35.5 | |
| Profit/loss on equity investments in associates and | |||||||||
| group enterprises | -2.2 | 0.0 | 0.0 | 0.0 | 55.2 | 11.7 | 0.0 | 64.7 | |
| Total income | 762.6 | 95.0 | 97.3 | -1.1 | 30.9 | 34.6 | -4.1 | 1,015.2 | |
| Operating costs | 490.8 | 23.9 | 47.2 | -3.1 | 72.2 | 3.3 | -4.1 | 630.2 | |
| Profit/loss before impairment of loans and advances, etc. | 271.8 | 71.1 | 50.1 | 2.0 | -41.3 | 31.3 | 0.0 | 385.0 | |
| Impairment of loans and advances, etc. | -76.8 | 0.0 | -1.3 | 0.0 | 0.0 | -2.0 | 0.0 | -80.1 | |
| Profit/loss before tax | 348.6 | 71.1 | 51.4 | 2.0 | -41.3 | 33.3 | 0.0 | 465.1 | |
| BALANCE SHEET | |||||||||
| Assets | |||||||||
| Loans, advances and other receivables at | |||||||||
| amortized cost | 27,303.7 | 7,959.0 | 5,513.9 | 0.2 | 0.0 | 37.7 | -4,608.1 | 36,206.4 | |
| Miscellaneous assets | 4,219.8 | 11,191.6 | 172.4 | 311.4 | 3,392.3 | 2,205.8 | -110.0 | 21,383.3 | |
| Total assets | 57,589.7 | ||||||||
| Liabilities | |||||||||
| Deposits and other payables | 21,200.5 | 1,772.7 | 216.0 | 110.4 | 0.0 | 0.8 | -45.0 | 23,255.4 | |
| Shareholders' equity (allocated capital) | 2,350.1 | 382.4 | 429.4 | 8.6 | 539.6 | 138.4 | 0.0 | 3,848.5 | |
| Miscellaneous liabilities | 3,726.1 | 12,965.4 | 5,137.3 | 211.5 | 13,118.6 | 0.0 | -4,673.1 | 30,485.8 | |
| Total liabilities | 57,589.7 | ||||||||
| FINANCIAL RATIOS | |||||||||
| Annualized return on equity (%) **) | 30.6 | 39.6 | 27.1 | - | - | - | - | ||
| Costs as a percentage of income | 0.64 | 0.25 | 0.49 | - | - | - | - | ||
| Risk-weighted items, end of period | 29,376.5 | 4,779.4 | 5,048.3 | 107.5 | 803.7 | 1,730.1 | 0.0 | 41,845.4 | |
| Number of employees (end of period, full-time) | 878 | 67 | 81 | 214 | 96 | 0 | 0 | 1,336 | |
* Earnings from investment portfolios, etc. consist of earnings from the Bank's trading portfolio, ErhvervsInvest Nord A/S and companies from which investment in unlisted shares is carried on.
** The annualized rate of return on equity has been calculated on allocated capital (8%) based on average risk-weighted items.
As of 1 July 2007, Corporate Banking merged with Spar Nord's Local Banks. The comparative figures as of 30.06.2007 have been restated to reflect the new organization.
Reclassifications have been made as concerns the business areas to make figures comparable with the 30.06.2008 figures.
In accordance with applicable rules, the secondary segment reporting shows Spar Nord's activities by the geographical areas in which the Group operates. Spar Nord only carries on activities outside Denmark to a limited extent. Consequently, in accordance with IAS 14 no disclosure is provided regarding the secondary segment.
| Note | DKK ´000 | 1st half 2008 |
1st half 2007 |
Full year 2007 |
|---|---|---|---|---|
| 3 | Interest income | |||
| Receivables from credit institutions and central banks | 105,524 | 97,632 | 207,047 | |
| Loans, advances and other receivables | 1,272,775 | 1,009,211 | 2,166,218 | |
| Bonds | 240,355 | 150,069 | 330,707 | |
| Foreign-exchange contracts | 67,094 | 41,927 | 113,400 | |
| Interest-rate contracts | 37,746 | 8,399 | 16,588 | |
| Share contracts | 11 | 118 | 127 | |
| Derivative instruments, total | 104,851 | 50,444 | 130,115 | |
| Other interest income | 196 | 1,159 | 1,292 | |
| Total interest income | 1,723,701 | 1,308,515 | 2,835,379 | |
| Of which, income from genuine purchase and resale | ||||
| transactions booked under | ||||
| Receivables from credit institutions and central banks | 5,582 | 12,585 | 21,431 | |
| Loans, advances and other receivables | 13,388 | 2,724 | 3,324 | |
| 4 | Interest expenses | |||
| Credit institutions and central banks | 451,648 | 359,782 | 775,349 | |
| Deposits and other payables | 504,944 | 320,307 | 720,628 | |
| Bonds issued | 57,817 | 42,403 | 101,139 | |
| Subordinated debt | 53,771 | 41,372 | 89,313 | |
| Other interest expenses | 250 | 405 | 579 | |
| Total interest expenses | 1,068,430 | 764,269 | 1,687,008 | |
| Of which, interest expenses from genuine sale and | ||||
| repo transactions booked under | ||||
| Payables to credit institutions and central banks | 21,757 | 28,680 | 47,871 | |
| Deposits and other payables | 0 | 336 | 336 | |
| 5 | Fees, charges and commissions received | |||
| Securities trading and custody accounts | 70,129 | 88,430 | 161,844 | |
| Asset management | 53,228 | 100,954 | 188,311 | |
| Payment services | 23,246 | 23,203 | 46,286 | |
| Loan transaction fees | 47,759 | 43,247 | 91,788 | |
| - of which, mortgage credit institutions | 32,938 | 27,644 | 56,330 | |
| Guarantee commissions | 15,174 | 14,928 | 31,327 | |
| Other fees, charges and commissions | 28,752 | 24,089 | 38,992 | |
| Total fees, charges and commissions received | 238,288 | 294,851 | 558,548 | |
| 6 | Fees, charges and commissions paid | |||
| Securities trading and custody accounts | 23,635 | 21,830 | 42,682 | |
| Asset management | 10,016 | 11,654 | 25,528 | |
| Guarantee commissions | 44 | 354 | 910 | |
| Other fees, charges and commissions | 3,768 | 2,396 | 6,572 | |
| Total fees, charges and commissions paid | 37,463 | 36,234 | 75,692 | |
| Note | DKK million | 1st half 2008 |
1st half 2007 |
Full year 2007 |
|---|---|---|---|---|
| 7 | Net fees, charges and commissions received | |||
| Securities trading and custody accounts | 46,494 | 66,600 | 119,162 | |
| Asset management | 43,212 | 89,300 | 162,783 | |
| Payment services | 23,246 | 23,203 | 46,286 | |
| Loan transaction fees | 47,759 | 43,247 | 91,788 | |
| - of which, mortgage credit institutions | 32,938 | 27,644 | 56,330 | |
| Guarantee commissions | 15,130 | 14,574 | 30,417 | |
| Other fees, charges and commissions | 24,984 | 21,693 | 32,420 | |
| Net fees, charges and commissions received, total | 200,825 | 258,617 | 482,856 | |
| 8 | Market-value adjustments | |||
| Other loans, advances and receivables at fair value | -4,894 | -42,606 | -4,905 | |
| Bonds | -250,500 | -74,456 | -73,225 | |
| Shares, etc. | 92,907 | 22,225 | 30,625 | |
| Foreign exchange | 373,474 | -18,375 | 207,358 | |
| Foreign-exchange, interest, share, commodity and other contracts and | ||||
| derivative instruments | -159,917 | 195,694 | -3,529 | |
| Assets linked to pooled schemes | -225,887 | 63,492 | 17,646 | |
| Deposits in pooled schemes | 225,887 | -63,492 | -17,646 | |
| Miscellaneous assets | 0 | 2 | 2 | |
| Miscellaneous commitments | 11,632 | 13,883 | 8,360 | |
| Total market-value adjustments | 62,702 | 96,367 | 164,686 | |
| 9 | Staff costs and administrative expenses | |||
| Staff costs | ||||
| 404,843 | 371,607 | 772,469 | ||
| Administrative expenses | 243,223 | 221,450 | 444,153 | |
| Total | 648,066 | 593,057 | 1,216,622 | |
| Staff costs | ||||
| Salaries | 343,276 | 316,158 | 659,286 | |
| Pensions | 37,243 | 33,613 | 70,536 | |
| Social security costs | 24,324 | 21,836 | 42,647 | |
| Total | 404,843 | 371,607 | 772,469 | |
| Of which, salaries and remuneration of the Supervisory and Executive Boards | ||||
| account for | ||||
| Executive Board | 5,400 | 6,437 | 11,008 | |
| Supervisory Board | ||||
| Pensions | 990 | 990 | 1,980 | |
| Salaries and remuneration of Supervisory and Executive Boards | 450 | 424 | 860 | |
| 6,840 | 7,851 | 13,848 | ||
| The Executive Board's remuneration is composed of three elements: | ||||
| Base salary and pension | 3,818 | 3,569 | 7,108 | |
| Bonus | 1,650 | 1,650 | 1,650 | |
| Management incentive scheme | 382 | 1,642 | 3,110 | |
| Number of employees (average no. of full-time employees) | 1,428 | 1,321 | 1,352 | |
| Termination rules: | ||||
| The members of the Executive Board have a term of notice of 12 months and | ||||
| will receive compensation corresponding to two years' pay. | ||||
| Pension obligation: | ||||
| Like the other employees, members of the Executive Board are comprised by | ||||
| defined-contribution pension plans. | ||||
| Incentive scheme: | ||||
| The Executive Board and executive staff members are comprised by the | ||||
| Group's share option scheme. Reference is made to the Group's 2007 | ||||
| Annual Report for a more detailed description. | ||||
| A new share option scheme covering the period 2008-2010 was adopted by | ||||
| the shareholders at the Annual General Meeting held on 30 April 2008. The | ||||
| new share option scheme is based on the same terms and conditions as the | ||||
| previous scheme, apart from the fact that the options will lapse if participants | ||||
| decide to leave the Bank at their own volition. See sparnord.dk/ir for more details. |
||||
| Note | DKK '000 | 1. halvår 2008 |
1. halvår 2007 |
Året 2007 |
|---|---|---|---|---|
| Other administrative expenses | ||||
| IT expenses | 99,376 | 87,237 | 177,911 | |
| Marketing costs | 43,764 | 40,737 | 74,143 | |
| Cost of premises | 29,236 | 25,322 | 52,079 | |
| Telephone and postage | 14,531 | 14,657 | 27,720 | |
| Other office expenses | 7,398 | 6,996 | 14,256 | |
| Other administrative expenses | 48,918 | 46,501 | 98,044 | |
| Total | 243,223 | 221,450 | 444,153 | |
| 10 | Receivables from credit institutions and central banks | |||
| Receivables from central banks, subject to notice | 349,831 | 1,973,369 | 2,398,867 | |
| Receivables from credit institutions | 4,988,645 | 4,331,260 | 2,980,106 | |
| Total receivables from credit institutions and central banks | 5,338,476 | 6,304,629 | 5,378,973 | |
| 11 | Impairment of loans and advances and provisions for guarantees | |||
| Individual impairment of loans and advances | ||||
| Individual impairment, beginning of year | 376,591 | 443,486 | 443,486 | |
| New provisions for individual impairment | 100,433 | 108,087 | 184,068 | |
| Reversal of individual impairment losses | 81,566 | 166,253 | 272,111 | |
| Previously written down, now definitively lost | 50,255 | 12,159 | 32,669 | |
| Other additions and disposals | 0 | 18,495 | 18,495 | |
| Interest on impaired loans and advances taken to income | 14,491 | 19,363 | 35,323 | |
| Individual impairment, end of period | 359,694 | 411,019 | 376,592 | |
| Groups of impairment losses, loans and advances | ||||
| Groups of impairment losses, beginning of year | 62,383 | 55,071 | 55,071 | |
| New provisions for groups of impairment losses | 504 | 0 | 7,312 | |
| Reversal of groups of impairment losses | 5546 | 0 | 0 | |
| Other additions and disposals | 0 | 0 | 0 | |
| Groups of impairment losses, end of period | 57,341 | 55,071 | 62,383 | |
| Total impairment of loans and advances | ||||
| Impairment, beginning of period | 438,974 | 498,557 | 498,557 | |
| New provisions for impairment | 100,937 | 108,087 | 191,380 | |
| Reversal of impairment losses | 87,112 | 166,253 | 272,111 | |
| Previously written down, now definitively lost | 50,255 | 12,159 | 32,669 | |
| Other additions and disposals | 0 | 18,495 | 18,495 | |
| Interest on impaired loans and advances taken to income | 14,491 | 19,363 | 35,323 | |
| Impairment, end of period | 417,035 | 466,090 | 438,975 | |
| Impairment recognized in the income statement | ||||
| New provisions for impairment | 100,937 | 108,087 | 191,380 | |
| Reversal of impairment losses | 87,112 | 166,253 | 272,111 | |
| Losses without prior impairment | 9,689 | 10,016 | 19,245 | |
| Carried to income, previously written off Recognized in the income statement |
23,301 213 |
29,169 -77,319 |
48,599 -110,085 |
|
| Impairment, other credit risks | 0 | 0 | 0 | |
| Provisions for losses on guarantees | ||||
| Provisions for losses on guarantees, beginning of year | 5,003 | 26,811 | 26,811 | |
| Reclassification of provisions for unutilized credit lines | 0 | -18,495 | -18,495 | |
| New provisions during the year | 1,494 | 0 | 0 | |
| Reversal of provisions | 1,749 | 2,777 | 3,313 | |
| Other additions and disposals | 0 | 0 | 0 | |
| Provisions for losses on guarantees, end of period | 4,748 | 5,539 | 5,003 | |
| Provisions recognized in the income statement | ||||
| New provisions during the year | 1,494 | 0 | 0 | |
| Reversal of provisions | 1,749 | 2,777 | 3,313 | |
| Recognized in the income statement | -255 | -2,777 | -3,313 | |
| Impairment and provisions for losses on guarantees | ||||
| recognized in the income statement, total | -42 | -80,096 | -113,398 | |
| Note | DKK '000 | 1st half 2008 |
1st half 2007 |
Full year 2007 |
|---|---|---|---|---|
| 12 | Other assets | |||
| Positive market value of derivative instruments | 2,051,052 | 1,404,952 | 1,568,302 | |
| Miscellaneous receivables | 37,217 | 96,730 | 4,724 | |
| Interest and commissions receivable | 283,326 | 197,363 | 301,488 | |
| Miscellaneous assets | 106,967 | 45,296 | 71,617 | |
| Other assets, total | 2,478,562 | 1,744,341 | 1,946,131 | |
| 13 | Other liabilities | |||
| Negative market value of derivative instruments | 1,388,797 | 1,073,382 | 1,227,456 | |
| Miscellaneous payables | 261,195 | 478,834 | 451,291 | |
| Interest and commissions payable | 312,060 | 276,184 | 251,311 | |
| Miscellaneous liabilities | 641,219 | 509,919 | 548,724 | |
| Other liabilities, total | 2,603,271 | 2,338,319 | 2,478,782 | |
| 14 | Subordinated debt | |||
| Nom. DKK million 100.0, interest rate 6.587%, received 2003, expiry 06.06.2011 |
0 | 100,000 | 100,000 | |
| Nom. EUR million 10.0, interest rate 7.080%, received 2001, expiry 17.05.2012 |
74,488 | 75,147 | 75,197 | |
| Nom. EUR million 2.5, interest rate 7.080%, received 2001, expiry 17.05.2012 |
18,622 | 18,787 | 18,800 | |
| Nom. EUR million 5.0, interest rate 7.080%, received 2001, expiry 17.05.2012 |
37,245 | 37,574 | 37,599 | |
| Nom. DKK million 155.0, interest rate 6.355%, received 2004, expiry 29.10.2012 |
155,000 | 155,000 | 155,000 | |
| Nom. DKK million 200.0, interest rate 6.0167%, received 2006, expiry 16.11.2014 | 200,000 | 200,000 | 200,000 | |
| Nom. NOK million 220.0, interest rate 7.180%, received 2006*), expiry 20.02.2015 | 204,751 | 205,226 | 205,594 | |
| Nom. EUR million 40.0, interest rate 5,542%, received 2007, expiry 28.03.2015 |
297,879 | 297,132 | 297,767 | |
| Nom. EUR million 33.5, interest rate 5.781%, received 2005, expiry 29.10.2015 |
249,840 | 249,314 | 249,796 | |
| Nom. DKK million 100.0, interest rate 6.1283%, received 2007, expiry 03.12.2015 |
100,000 | 0 | 100,000 | |
| Supplementary capital contributions, total | 1,337,825 | 1,338,180 | 1,439,753 | |
| *) Increased by NOK 70 million in 2007 | ||||
| Hybrid core capital | ||||
| Nom. DKK million 350.0 interest rate 5.250 %, received 2005, expiry 16.03.2015 | 320,408 | 324,770 | 330,617 | |
| Subordinated debt, total | 1,658,233 | 1,662,950 | 1,770,370 | |
| Interest on subordinated debt Costs of raising subordinated debt |
53,498 273 |
41,028 344 |
88,733 580 |
|
| Subordinated capital contributions that can be included for the purpose of calculating the capital base |
1,658,233 | 1,662,950 | 1,770,370 | |
| 15 | Contingent liabilities The Bank and all major wholly-owned subsidiaries are jointly registered for payroll tax and VAT and are jointly and severally liable for the payroll tax and VAT payable |
|||
| Guarantees, etc. | ||||
| Financial guarantees | 2,167,580 | 2,572,823 | 2,341,196 | |
| Loss guarantees for mortgage loans | 328,541 | 3,708,522 | 419,649 | |
| Registration and refinancing guarantees | 914,727 | 745,376 | 855,840 | |
| Other guarantees | 547,701 | 448,018 | 431,557 | |
| Guarantees, etc., total | 3,958,549 | 7,474,739 | 4,048,242 | |
| Other commitments | ||||
| Irrevocable credit commitments | 4,406 | 0 | 0 | |
| Other commitments, total | 4,406 | 0 | 0 | |
| DKK '000 | 1st half 2008 |
1st half 2007 |
Full year 2007 |
|---|---|---|---|
| Contingent assets Possible adjustment of VAT Another leasing company has instituted legal proceedings against the Danish VAT authorities as to whether leased assets should be recognized in revenue when determining the partial VAT deductibility. The case has been heard before the European Court of Justice, which found for the leasing company in March 2008. Currently the case is pending before the Danish Supreme Court, and the outcome of the revenue recognition issue depends on its decision with the as sociated ratio decidendi. If the Danish Supreme Court finds for the leasing company, this will result in VAT income for the Spar Nord Group in the DKK 28.8 million range for the period ending on 30 June 2008. |
|||
| Genuine sale and repo transactions and genuine purchase and resale transactions |
|||
| Genuine purchase and resale transactions constitute the following: Receivables from credit institutions and central banks Loans, advances and other receivables |
214,498 1,049,709 |
455,502 0 |
156,836 433,303 |
| Genuine sale and repo transactions constitute the following: Payables to credit institutions and central banks Deposits and other payables |
513,048 0 |
1,265,654 0 |
1,130,582 0 |
| Assets sold as an element in genuine sale and repo transactions Asset item: Bonds at fair value Shares at fair value |
497,240 0 |
1,263,088 0 |
1,102,088 57 |
| Security furnished At the end of the first six months, securities were deposited with Danmarks Na tionalbank (the central bank), The Royal Bank of Scotland and foreign clearing centres worth Hedge accounting |
8,074,909 | 4,796,831 | 6,406,387 |
| Assets Loans and advances Carrying amount Purchase price Fair value Nominal value |
71,126 75,000 71,126 75,000 |
72,470 75,000 72,470 75,000 |
73,612 75,000 73,612 75,000 |
| Derivatives (swap contracts) Carrying amount Fair value Synthetic principal/nominal value |
3,854 3,854 75,000 |
2,491 2,491 75,000 |
1,364 1,364 75,000 |
| Liabilities | |||
| Subordinated debt Carrying amount Purchase price Fair value Nominal value |
452,406 480,513 452,406 480,513 |
458,239 480,239 458,239 480,239 |
464,015 480,491 464,015 480,491 |
| Derivatives (swap contracts) Carrying amount Fair value Synthetic principal/nominal value |
-28,444 -28,444 480,513 |
-22,387 -22,387 480,239 |
-17,269 -17,269 480,491 |
| Ownership The Spar Nord Foundation, Aalborg, and Nykredit Realkredit A/S, Copenhagen, have disclosed that they each own more than 5 pct. of the share capital of Spar Nord Bank A/S. |
Stock Exchange Announcement No. 7, 2008
7 August 2008
Spar Nord Bank A/S
Skelagervej 15 P. O. Box 162 DK-9100 Aalborg
Reg. No. 9380 Telephone +45 96 34 40 00 Telefax + 45 96 34 45 60 Swift spno dk 22
www.sparnord.dk [email protected]
CVR-nr. 13 73 75 84
THE DANISH FINANCIAL SUPERVISORY AUTHORITY'S LAYOUT AND RATIO SYSTEM
| DKK million | 1st half 2008 |
1st half 2007 |
Change in pct. |
1st half 2004 |
1st half 2005 |
1st half 2006 |
1st half 2007 |
1st half 2008 |
Full year 2007 |
|---|---|---|---|---|---|---|---|---|---|
| INCOME STATEMENT | |||||||||
| Interest income Interest expenses |
1,629.8 1,068.9 |
1,238.6 765.2 |
31.6 39.7 |
614.0 211.6 |
672.1 274.1 |
855.2 406.5 |
1,238.6 765.2 |
1,629.8 1,068.9 |
2,677.3 1,688.8 |
| Net interest income | 560.9 | 473.4 | 18.5 | 402.4 | 398.0 | 448.7 | 473.4 | 560.9 | 988.5 |
| Dividends on shares, etc. | 17.0 | 15.7 | 8.3 | 17.3 | 13.0 | 20.0 | 15.7 | 17.0 | 16.1 |
| Fees, charges and commissions received Fees, charges and commissions paid |
235.9 37.5 |
293.8 36.2 |
-19.7 3.6 |
170.8 22.4 |
214.4 42.2 |
268.4 34.1 |
293.8 36.2 |
235.9 37.5 |
555.5 75.7 |
| Net income from interest, fees, charges | |||||||||
| and commissions | 776.3 | 746.7 | 4.0 | 568.1 | 583.2 | 703.0 | 746.7 | 776.3 | 1,484.4 |
| Market-value adjustments | 64.9 | 96.4 | -32.7 | 58.5 | 155.1 | 54.5 | 96.4 | 64.9 | 150.2 |
| Other operating income Staff costs and administrative expenses |
18.7 609.9 |
13.8 561.1 |
35.5 8.7 |
2.5 394.3 |
26.1 438.0 |
13.6 509.7 |
13.8 561.1 |
18.7 609.9 |
30.3 1,148.1 |
| Depreciation, amortization and impairment | |||||||||
| of intangible assets and property, plant and equipment |
29.4 | 22.5 | 30.7 | 23.3 | 21.8 | 25.5 | 22.5 | 29.4 | 46.7 |
| Other operating expenses | 2.3 | 2.0 | 15.0 | 1.9 | 0.3 | 1.9 | 2.0 | 2.3 | 3.7 |
| Impairment of loans, advances and receivables, etc. |
-5.1 | -76.8 | -93.4 | 82.0 | 18.6 | -11.0 | -76.8 | -5.1 | -112.4 |
| Profit/loss on equity investments in | |||||||||
| associates and group enterprises Profit/loss before tax |
100.7 324.1 |
113.9 462.0 |
-11.6 -29.8 |
35.0 162.6 |
41.9 327.6 |
74.0 319.0 |
113.9 462.0 |
100.7 324.1 |
246.1 824.9 |
| Tax | 57.0 | 96.2 | -40.7 | 33.4 | 83.6 | 66.5 | 96.2 | 57.0 | 144.6 |
| Profit after tax | 267.1 | 365.8 | -27.0 | 129.2 | 244.0 | 252.5 | 365.8 | 267.1 | 680.3 |
| BALANCE SHEET | |||||||||
| Total assets | 67,566 | 56,948 | 18.6 | 34,269 | 41,992 | 49,562 | 56,948 | 67,566 | 62,497 |
| Loans and advances - bank loans and advances |
40,998 39,948 |
35,322 35,322 |
16.1 13.1 |
17,681 17,397 |
24,296 23,968 |
28,249 28,151 |
35,322 35,322 |
40,998 39,948 |
39,789 39,356 |
| - reverse transactions | 1,050 | 0 | 284 | 328 | 98 | 0 | 1,050 | 433 | |
| Deposits - bank deposits |
34,145 34,145 |
27,092 27,092 |
26.0 26.0 |
18,611 18,611 |
22,120 22,120 |
23,955 23,955 |
27,092 27,092 |
34,145 34,145 |
31,469 31,469 |
| - repo transactions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Subordinated debt Shareholders' equity |
1,658 4,219 |
1,663 3,849 |
-0.3 9.6 |
904 2,214 |
1,463 2,435 |
1,559 3,116 |
1,663 3,849 |
1,658 4,219 |
1,770 4,138 |
| Guarantees, etc. | 4,500 | 7,858 | -42.7 | 4,852 | 6,976 | 7,362 | 7,858 | 4,500 | 4,530 |
| Risk-weighted assets Core capital ratio (incl. hybrid core capital) |
42,857 | 41,738 | 1.6 | 23,949 | 29,613 | 34,821 | 41,738 | 42,857 | 43,477 |
| after deductions Impairment of loans, advances and |
4,346 | 3,880 | 12.0 | 2,031 | 2,494 | 3,087 | 3,880 | 4,346 | 4,067 |
| guarantees | 384 | 439 | -12.6 | 633 | 637 | 651 | 439 | 384 | 409 |
| Non-performing loans Business volume |
26 79,642 |
22 70,272 |
16.7 13.3 |
90 41,144 |
33 53,392 |
31 59,566 |
22 70,272 |
26 79,642 |
20 75,788 |
| FINANCIAL RATIOS | |||||||||
| Solvency Solvency ratio (%) |
11.8 | 10.9 | 9.7 | 9.9 | 10.4 | 10.9 | 11.8 | 11.1 | |
| Core capital ratio (%) | 10.1 | 9.3 | 8.5 | 8.4 | 8.9 | 9.3 | 10.1 | 9.4 | |
| Earnings | |||||||||
| Return on equity before tax (%) Return on equity after tax (%) |
7.8 6.4 |
12.3 9.8 |
7.4 5.9 |
13.7 10.2 |
10.4 8.2 |
12.3 9.8 |
7.8 6.4 |
21.2 17.5 |
|
| Income/cost ratio (DKK) | 1.51 | 1.91 | 1.32 | 1.69 | 1.61 | 1.91 | 1.51 | 1.76 | |
| Market risks | |||||||||
| Interest-rate risk (%) Foreign-exchange position (%) |
1.6 9.3 |
0.9 6.1 |
3.7 16.2 |
3.8 11.6 |
2.5 6.1 |
0.9 6.1 |
1.6 9.3 |
1.9 5.8 |
|
| Foreign-exchange risk (%) | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | 0.1 | |
| Credit risks Loans and advances rel. to deposits |
120.1 | 130.4 | 95.0 | 109.8 | 117.9 | 130.4 | 120.1 | 126.4 | |
| Loans and advances plus impairment rel. to deposits |
121.2 | 132.0 | 98.4 | 112.7 | 120.5 | 132.0 | 121.2 | 127.7 | |
| Loans and advances rel. to shareholders' equity |
9.7 | 9.2 | 8.0 | 10.0 | 9.1 | 9.2 | 9.7 | 9.6 | |
| Increase in loans and advances for the period (%) |
3.0 | 5.3 | 1.9 | 27.1 | 6.6 | 5.3 | 3.0 | 18.6 | |
| Excess coverage relative to statutory | |||||||||
| cash ratio requirement (%) Sum total of major commitments (%) |
74.4 74.6 |
53.2 113.8 |
120.3 48.8 |
74.3 98.9 |
55.5 90.6 |
53.2 113.8 |
74.4 74.6 |
90.0 65.5 |
|
| Impairment for the period in per cent | 0.0 | -0.2 | 0.4 | 0.1 | 0.0 | -0.2 | 0.0 | -0.3 | |
| SHARE-RELATED FINANCIAL RATIOS DKK per share of DKK 10 |
|||||||||
| Earnings per share for the period | 4.7 | 6.4 | 2.5 | 4.7 | 4.4 | 6.4 | 4.7 | 11.9 | |
| Net asset value (NAV), incl. earnings per share for the period |
76.8 | 69.2 | 42.9 | 47.0 | 55.5 | 69.2 | 76.8 | 75.0 | |
| Dividend per share Share price/NAV per share for the period |
- 16.9 |
- 20.8 |
- 21.5 |
- 18.6 |
- 29.4 |
- 20.8 |
- 16.9 |
3.0 9.7 |
|
| Share price/NAV per share | 1.0 | 1.9 | 1.2 | 1.9 | 2.3 | 1.9 | 1.0 | 1.6 |
| Note | DKK '000 | 1st half 2008 |
1st half 2007 |
Full year 2007 |
|---|---|---|---|---|
| 2 | Interest income | 1,629,829 | 1,238,562 | 2,677,338 |
| 3 | Interest expenses | 1,068,861 | 765,214 | 1,688,821 |
| Net interest income | 560,968 | 473,348 | 988,517 | |
| Dividends on shares, etc. | 16,957 | 15,725 | 16,111 | |
| Fees, charges and commissions received | 235,906 | 293,808 | 555,463 | |
| Fees, charges and commissions paid | 37,463 | 36,234 | 75,692 | |
| Net income from interest, fees, charges and commissions | 776,368 | 746,647 | 1,484,399 | |
| 4 | Market-value adjustments | 64,918 | 96,364 | 150,232 |
| Other operating income | 18,659 | 13,806 | 30,321 | |
| 5 | Staff costs and administrative expenses | 609,864 | 561,114 | 1,148,140 |
| Depreciation, amortization and impairment of intangible assets | ||||
| and property, plant and equipment | 29,376 | 22,520 | 46,743 | |
| Other operating expenses | 2,340 | 1,996 | 3,708 | |
| 6 | Impairment of loans, advances and receivables, etc. | -5,081 | -76,831 | -112,414 |
| Profit/loss on equity investments in associates and group enterprises | 100,658 | 113,926 | 246,109 | |
| Profit/loss before tax | 324,104 | 461,944 | 824,884 | |
| Tax | 56,962 | 96,167 | 144,614 | |
| Profit | 267,142 | 365,777 | 680,270 |
| Note | DKK ´000 | 1st half 2008 |
1st half 2007 |
Full year 2007 |
|---|---|---|---|---|
| ASSETS | ||||
| Cash balances and demand deposits with central banks | 1,351,640 | 448,556 | 398,379 | |
| Receivables from credit institutions and central banks | 5,304,438 | 6,302,713 | 5,356,309 | |
| Loans, advances and other receivables at amortized cost | 40,998,441 | 35,321,704 | 39,789,086 | |
| Bonds at fair value | 10,760,428 | 6,871,093 | 8,259,406 | |
| Shares, etc. | 529,022 | 600,485 | 636,426 | |
| Equity investments in associates, etc. | 890,090 | 793,749 | 859,857 | |
| Equity investments in group enterprises | 480,290 | 408,366 | 482,297 | |
| Assets linked to pooled schemes | 4,051,484 | 3,792,031 | 4,029,172 | |
| Intangible assets | 29,606 | 25,502 | 32,071 | |
| Investment properties | 35,344 | 15,376 | 16,328 | |
| Corporate properties | 426,015 | 447,238 | 429,563 | |
| Land and buildings, total | 461,359 | 462,614 | 445,891 | |
| Other property, plant and equipment | 136,722 | 87,825 | 134,980 | |
| Current tax assets | 53,061 | 0 | 37,393 | |
| Deferred tax assets | 16,856 | 54,994 | 55,615 | |
| Temporary assets | 8,013 | 8,013 | 8,013 | |
| 7 | Other assets | 2,438,310 | 1,720,365 | 1,913,356 |
| Prepayments | 56,453 | 50,071 | 59,038 | |
| Total assets | 67,566,213 | 56,948,081 | 62,497,289 | |
| EQUITY AND LIABILITIES | ||||
| LIABILITIES OTHER THAN PROVISIONS | ||||
| Payables to credit institutions and central banks | 23,325,091 | 19,664,471 | 20,830,452 | |
| Deposits and other payables | 30,093,217 | 23,300,352 | 27,440,082 | |
| Deposits in pooled schemes | 4,051,484 | 3,792,031 | 4,029,172 | |
| Issued bonds at amortized cost | 1,897,778 | 2,148,650 | 2,170,969 | |
| Other non-derivative financial liabilities at fair value | 88,754 | 413,584 | 87,814 | |
| Current tax liabilities | 0 | 129,955 | 0 | |
| Temporary liabilities | 5,044 | 5,162 | 5,104 | |
| 8 | Other liabilities | 2,199,676 | 1,934,703 | 1,996,473 |
| Deferred income | 9,063 | 8,243 | 8,182 | |
| Total liabilities other than provisions | 61,670,107 | 51,397,151 | 56,568,248 | |
| PROVISIONS FOR LIABILITIES | ||||
| Provisions for pensions and related liabilities | 3,733 | 3,516 | 3,733 | |
| Provisions for losses on guarantees | 4,748 | 5,539 | 5,003 | |
| Other provisions | 10,729 | 30,399 | 11,562 | |
| Total provisions for liabilities | 19,210 | 39,454 | 20,298 | |
| SUBORDINATED DEBT | ||||
| Subordinated debt | 1,658,233 | 1,662,950 | 1,770,370 | |
| SHAREHOLDERS' EQUITY | ||||
| Share capital | 570,688 | 570,688 | 570,688 | |
| Revaluation reserves | 46,880 | 37,393 | 46,994 | |
| Accumulated exchange adjustments of foreign entities | -1,470 | -177 | -1,332 | |
| Accumulated changes in value, total | 45,410 | 37,216 | 45,662 | |
| Statutory reserves | ||||
| 781,270 | 632,863 | 765,224 | ||
| Other reserves, total | 781,270 | 632,863 | 765,224 | |
| Retained earnings or loss | 2,821,295 | 2,607,759 | 2,756,799 | |
| Total shareholders' equity | 4,218,663 | 3,848,526 | 4,138,373 | |
| Total equity and liabilities | 67,566,213 | 56,948,081 | 62,497,289 | |
| OFF-BALANCE-SHEET ITEMS | ||||
| 9 | Guarantees, etc. | 4,499,620 | 7,858,245 | 4,530,309 |
| Other commitments | 4,406 | 0 | 0 | |
| Total off-balance-sheet items | 4,504,026 | 7,858,245 | 4,530,309 | |
| Note | DKK '000 | 1st half 2008 |
1st half 2007 |
Full year 2007 |
|---|---|---|---|---|
| 1 | Accounting policies | |||
| The Interim Report for the Parent Company, Spar Nord Bank, has been presented in accordance with the Danish Finan | ||||
| cial Business Act, including the Danish Executive Order on Financial Reporting by Credit Institutions, etc. The rules are | ||||
| identical to the Group's valuations according to IFRS, as described in Note 1 to the Interim Report for the Group. | ||||
| 2 | Interest income | |||
| Receivables from credit institutions and central banks | 105,492 | 97,597 | 206,701 | |
| Loans, advances and other receivables | 1,178,948 | 939,750 | 2,009,372 | |
| Bonds | 240,355 | 150,069 | 330,706 | |
| Foreign-exchange contracts | 67,094 | 41,927 | 113,400 | |
| Interest-rate contracts | 37,746 | 8,399 | 16,588 | |
| Share contracts | 11 | 118 | 127 | |
| Derivative instruments, total | 104,851 | 50,444 | 130,115 | |
| Other interest income | 183 | 702 | 444 | |
| Total interest income | 1,629,829 | 1,238,562 | 2,677,338 | |
| Of which, income from genuine purchase and | ||||
| resale transactions booked under | ||||
| Receivables from credit institutions and central banks | 5,582 | 12,585 | 21,431 | |
| Loans, advances and other receivables | 13,388 | 2,724 | 3,324 | |
| 3 | Interest expenses | |||
| Credit institutions and central banks | 451,648 | 359,782 | 775,349 | |
| Deposits and other payables | 505,539 | 321,378 | 722,797 | |
| Bonds issued | 57,817 | 42,403 | 101,139 | |
| Subordinated debt | 53,771 | 41,372 | 89,313 | |
| Other interest expenses | 86 | 279 | 223 | |
| Total interest expenses | 1,068,861 | 765,214 | 1,688,821 | |
| Of which, interest expenses from genuine sales and | ||||
| repo transactions booked under | ||||
| Payables to credit institutions and central banks | 21,757 | 28,680 | 47,871 | |
| Deposits and other payables | 0 | 336 | 336 | |
| 4 | Market-value adjustments | |||
| Other loans, advances and receivables at fair value | -4,894 | -42,606 | -4,905 | |
| Bonds | -250,500 | -74,456 | -73,225 | |
| Shares, etc. | 95,290 | 22,080 | 15,651 | |
| Foreign exchange | 373,307 | -18,233 | 207,878 | |
| Foreign-exchange, interest, share, commodity and other | ||||
| contracts and derivative instruments | -159,917 | 195,694 | -3,529 | |
| Assets linked to pooled schemes | -225,887 | 63,492 | 17,646 | |
| Deposits in pooled schemes | 225,887 | -63,492 | -17,646 | |
| Miscellaneous assets | 0 | 2 | 2 | |
| Miscellaneous commitments | 11,632 | 13,883 | 8,360 | |
| Total market-value adjustments | 64,918 | 96,364 | 150,232 | |
| Note | DKK '000 | 1st half 2008 |
1st half 2007 |
Full year 2007 |
|---|---|---|---|---|
| 5 Staff costs and administrative expenses | ||||
| Staff costs | 375,321 | 347,842 | 720,468 | |
| Administrative expenses | 234,543 | 213,272 | 427,672 | |
| Total | 609,864 | 561,114 | 1,148,140 | |
| Staff costs | ||||
| Salaries | 318,571 | 296,251 | 615,460 | |
| Pensions Social security costs |
34,757 21,993 |
31,569 20,022 |
66,192 38,816 |
|
| Total | 375,321 | 347,842 | 720,468 | |
| Of which, salaries and remuneration of the Supervisory and Executive Boards account for | ||||
| Executive Board | 5,400 | 6,437 | 11,008 | |
| Supervisory Board | 990 | 990 | 1,980 | |
| Pensions Salaries and remuneration of Supervisory and Executive Boards, total |
450 6,840 |
424 7,851 |
860 13,848 |
|
| The Executive Board's remuneration is composed of three elements: | ||||
| Base salary and pension | 3,818 | 3,569 | 7,108 | |
| Bonus | 1,650 | 1,650 | 1,650 | |
| Management incentive scheme | 382 | 1,642 | 3,110 | |
| Number of employees (average no. of full-time employees) | 1,339 | 1,255 | 1,273 | |
| Termination rules: | ||||
| The members of the Executive Board have a term of notice of 12 months and will receive compensation corresponding to two years' pay. |
||||
| Pension obligation: | ||||
| Like the other employees, members of the Executive Board are comprised by defined contribution pension plans. |
||||
| Incentive scheme: | ||||
| The Executive Board and executive staff members are comprised by the Group's share option scheme. Reference is made to the Group's 2007 Annual Report for a more detailed description. |
||||
| A new share option scheme covering the period 2008-2010 was adopted by the share holders at the Annual General Meeting held on 30 April 2008. The new share option scheme incorporates the terms and conditions from the previous scheme, apart from the fact that the options will lapse if participants decide to leave the Bank on their own volition. |
||||
| Other administrative expenses | ||||
| IT expenses | 98,316 | 86,331 | 176,060 | |
| Marketing costs | 42,779 | 40,057 | 72,566 | |
| Cost of premises | 27,701 | 24,126 | 50,786 | |
| Telephone and postage | 13,909 | 14,063 | 26,462 | |
| Other office expenses | 6,626 | 6,466 | 13,075 | |
| Other administrative expenses Total |
45,212 234,543 |
42,229 213,272 |
88,723 427,672 |
|
| Note | DKK ´000 | 1st half 2008 |
1st half 2007 |
Full year 2007 |
|---|---|---|---|---|
| 6 | Impairment of loans and advances and provisions for guarantees | |||
| Individual impairment of loans and advances | ||||
| Individual impairment, beginning of year | 341,693 | 405,124 | 405,124 | |
| New provisions for individual impairment | 89,519 | 100,829 | 168,326 | |
| Reversal of individual impairment losses | 75,501 | 152,628 | 257,211 | |
| Previously written down, now definitively lost | 49,429 | 12,159 | 26,770 | |
| Other additions and disposals Interest on impaired loans and advances taken to income |
0 15,170 |
18,495 18,769 |
18,495 33,729 |
|
| Individual impairment, end of period | 321,452 | 378,430 | 341,693 | |
| Groups of impairment losses, loans and advances | ||||
| Groups of impairment losses, beginning of year | 62,383 | 55,071 | 55,071 | |
| New provisions for groups of impairment losses | 504 | 0 | 7,312 | |
| Reversal of groups of impairment losses | 5546 | 0 | 0 | |
| Other additions and disposals | 0 | 0 | 0 | |
| Groups of impairment losses, end of period | 57,341 | 55,071 | 62,383 | |
| Total impairment of loans and advances | ||||
| Impairment, beginning of year | 404,076 | 460,195 | 460,195 | |
| New provisions for impairment | 90,023 | 100,829 | 175,638 | |
| Reversal of impairment losses Previously written down, now definitively lost |
81,047 49,429 |
152,628 12,159 |
257,211 26,770 |
|
| Other additions and disposals | 0 | 18,495 | 18,495 | |
| Interest on impaired loans and advances taken to income | 15,170 | 18,769 | 33,729 | |
| Impairment, end of period | 378,793 | 433,501 | 404,076 | |
| Impairment recognized in the income statement | ||||
| New provisions for impairment | 90,023 | 100,829 | 175,638 | |
| Reversal of impairment losses | 81,047 | 152,628 | 257,211 | |
| Losses without prior impairment | 9,139 | 6,232 | 17,250 | |
| Carried to income, previously written off | 22,941 | 28,487 | 44,778 | |
| Recognized in the income statement | -4,826 | -74,054 | -109,101 | |
| Impairment, other credit risks | 0 | 0 | 0 | |
| Provisions for losses on guarantees | ||||
| Provisions for losses on guarantees, beginning of year | 5,003 | 26,811 | 26,811 | |
| Reclassification of provisions for unutilized credit lines | 0 | -18,495 | -18,495 | |
| New provisions during the year Reversal of provisions |
1,494 1,749 |
0 2,777 |
0 3,313 |
|
| Other additions and disposals | 0 | 0 | 0 | |
| Provisions for losses on guarantees, end of period | 4,748 | 5,539 | 5,003 | |
| Provisions recognized in the income statement | ||||
| New provisions during the year | 1,494 | 0 | 0 | |
| Reversal of provisions Recognized in the income statement |
1,749 -255 |
2,777 -2,777 |
3,313 -3,313 |
|
| Impairment and provisions for losses on guarantees | ||||
| recognized in the income statement, total | -5,081 | -76,831 | -112,414 | |
| 12 | Other assets | |||
| Positive market value of derivative instruments | 2,051,052 | 1,404,952 | 1,568,302 | |
| Miscellaneous receivables | 35,651 | 91,509 | 6,325 | |
| Interest and commissions receivable | 302,153 | 202,842 | 313,319 | |
| Miscellaneous assets | 49,454 | 21,062 | 25,410 | |
| Other assets, total | 2,438,310 | 1,720,365 | 1,913,356 | |
| 13 | Other liabilities | |||
| Negative market value of derivative instruments | 1,388,797 | 1,073,382 | 1,227,456 | |
| Miscellaneous payables | 108,661 | 303,454 | 206,138 | |
| Interest and commissions payable Miscellaneous liabilities |
312,063 390,155 |
275,960 281,907 |
250,925 311,954 |
|
| Other liabilities, total | 2,199,676 | 1,934,703 | 1,996,473 | |
| Note | DKK ´000 | 1st half 2008 |
1st half 2007 |
Full year 2007 |
|---|---|---|---|---|
| 7 | Contingent liabilities | |||
| The Bank and all major wholly-owned subsidiaries are jointly registered for payroll tax and VAT and are jointly and severally liable for the payroll tax and VAT payable |
||||
| Guarantees, etc. | ||||
| Financial guarantees | 2,708,651 | 2,956,329 | 2,823,263 | |
| Loss guarantees for mortgage loans | 328,541 | 3,708,522 | 419,649 | |
| Registration and refinancing guarantees | 914,727 | 745,376 | 855,840 | |
| Other guarantees | 547,701 | 448,018 | 431,557 | |
| Guarantees, etc., total | 4,499,620 | 7,858,245 | 4,530,309 | |
| Other commitments | ||||
| Irrevocable credit commitments | 4,406 | 0 | 0 | |
| Other commitments, total | 4,406 | 0 | 0 |
| DKK '000 | 1st half 2008 |
1st half 2007 |
Full year 2007 |
|---|---|---|---|
| Genuine sale and repo transactions and genuine purchase and resale transactions |
|||
| Genuine purchase and resale transactions constitute the following: Receivables from credit institutions and central banks Loans, advances and other receivables |
214,498 1,049,709 |
455,502 0 |
156,836 433,303 |
| Genuine sale and repo transactions constitute the following: Payables to credit institutions and central banks Deposits and other payables |
513,048 0 |
1,265,654 0 |
1,130,582 0 |
| Assets sold as an element in genuine sale and repo transactions Asset item: Bonds at fair value |
497,240 | 1,263,088 | 1,102,088 |
| Shares at fair value | 0 | 0 | 57 |
| Security furnished At the end of the first six months, securities were deposited with Danmarks Na tionalbank (the central bank), The Royal Bank of Scotland and foreign clearing centres worth |
8,074,909 | 4,796,831 | 6,406,387 |
| Hedge accounting Assets |
|||
| Loans and advances Carrying amount Purchase price Fair value Nominal value |
71,126 75,000 71,126 75,000 |
72,470 75,000 72,470 75,000 |
73,612 75,000 73,612 75,000 |
| Derivatives (swap contracts) Carrying amount Fair value Synthetic principal/nominal value |
3,854 3,854 75,000 |
2,491 2,491 75,000 |
1,364 1,364 75,000 |
| Liabilities | |||
| Subordinated debt Carrying amount Purchase price Fair value Nominal value |
452,406 480,513 452,406 480,513 |
458,239 480,239 458,239 480,239 |
464,015 480,491 464,015 480,491 |
| Derivatives (swap contracts) Carrying amount Fair value Synthetic principal/nominal value |
-28,444 -28,444 480,513 |
-22,387 -22,387 480,239 |
-17,269 -17,269 480,491 |
| Ownership The Spar Nord Foundation, Aalborg, and Nykredit Realkredit A/S, Copenhagen, have disclosed that they each own more than 5 pct. of the share capital of Spar Nord Bank A/S. |
|||
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