Announcement no. 12/2005 DANISH SHIP FINANCE A/S INTERIM REPORT FIRST HALF-YEAR 2005

Transcription

1 Announcement no. 12/2005 DANISH SHIP FINANCE A/S INTERIM REPORT FIRST HALF-YEAR 2005 The Board of Directors of Danish Ship Finance A/S (Danmarks Skibskredit A/S) has today considered the interim report for the first half of The report is presented in accordance with the same accounting policies as were applied for the 2004 financial year for Danish Ship Finance (Danmarks Skibskreditfond). The comparative figures are identical to the half-year report for Danish Ship Finance (Danmarks Skibskreditfond) for the first half of As in previous years, the interim report has not been audited by the company s external auditors. Key figures for Danish Ship Finance A/S, DKK million 1st half 1st half Net interest income from lending operations Net interest income from financing operations Total net interest income Net interest and fee income Market value adjustments (9) (47) Staff costs and administrative expenses (42) (39) Provisions for bad and doubtful debts Net profit before tax Profit for the period Loans 34,995 35,918 Capital and reserves 8,875 8,801 Total assets 59,340 60,737 Solvency ratio Return on equity, % p.a

2 2 The conversion of Danish Ship Finance (Danmarks Skibskreditfond) into a limited liability company was completed through a merger of Danish Ship Finance (Danmarks Skibskreditfond) and its wholly owned subsidiary Danish Ship Finance A/S (Danmarks Skibskredit A/S DSF ) and was effected on 12 July 2005 with retrospective accounting effect from 1 January See announcement no. 10 of 12 July The share capital, including a premium of DKK 1.1 billion, was fully paid on 12 July Upon completion of the conversion, DKK 810 million was paid to the Danish government. Moreover, a provision of DKK 800 million has been recognised in the balance sheet in respect of debt to Danmarks Nationalbank. The payment to Danmarks Nationalbank will be charged against the premium on the shares subscribed in Danish Ship Finance A/S (Danmarks Skibskredit A/S). The capital increase including the DKK 1.1 billion and debt to the Danish government and Danmarks Nationalbank, a total of DKK 1,610 million, was recognised in the balance sheet as at 30 June Profit and loss account The profit for the period before tax amounted to DKK million compared with DKK million in the first half of Earnings from lending operations were retained at last year s level. Total earnings from lending operations, including fees, amounted to DKK million for the period compared with DKK million in the first half of Net interest and fee income fell to DKK million from DKK million in the first half of The drop in earnings was due to net interest earnings from financing operations falling from DKK million in 2004 to DKK million in The reason is the continued low level of interest rates, a relatively short duration on the bond portfolio and the fact that bonds were converted from a higher to a lower nominal coupon. Market value adjustments of securities and foreign exchange for the period amounted to a loss of DKK 9.0 million compared with a loss of DKK 47.2 million in the same period of last year. The above-mentioned conversion of the bond portfolio contributed to reducing the capital loss in the first half of The securities portfolio consists primarily of Danish government bonds and mortgage bonds or bonds of a similar high security. The overall return on the securities portfolio in the first six months of 2005 has been calculated at 3.6 per cent per annum. Staff costs and administrative expenses were up from DKK 38.5 million in the first half of 2004 to DKK 41.8 million in the same period of this year. Of this amount, non-recurring expenses for the conversion of DSF into a limited liability company represented DKK 4.4 million. The average number of employees rose from 52 at 30 June 2004 to 55 at 30 June Provisions for bad and doubtful debts for the first half of 2005 amounted to a net income of DKK 45.5 million compared with a net income of DKK 95.9 million in the same period of last year. Accumulated provisions for bad and doubtful debts decreased from DKK 1,102.9

3 3 million at year-end 2004 to DKK 1,036.6 million at 30 June Total provisions made up 2.9 % of total lending as compared with 4.7 % at 30 June 2004 and 3.0 % at 31 December Tax represents an expense of DKK 75.6 million against DKK 94.6 million in the first half of Balance sheet and capital structure Total assets declined to DKK 59,340.0 million from DKK million at 30 June Loans calculated at hedged values less provisions fell from DKK 35,918.1 million at 30 June 2004 to DKK 34,995.2 million at 30 June Issued bonds declined from DKK 49,454.6 million at 30 June 2004 to DKK 46,439.9 million at 30 June Proceeds from issued bonds, which have still not been provided as loans, are deposited with banks and invested in short-term bonds until the loans are disbursed. DSF generally issues bonds in advance of the loan disbursements. This process provides DSF with a strong cash position, which makes it less sensitive to short-term fluctuations in the capital markets, ensuring that we will always be capable of honouring loan offers provided and other cash requirements. When marked-to-market, the net bond portfolio amounted to DKK 17,701.0 million against DKK 18,621.2 million at 30 June The decline in the net amount compared with 2004 was primarily ascribable to a reduction of the above-mentioned investment in short-term bonds. After giving effect to the retained profit for the period after tax, DSF s capital and reserves amounted to DKK 8,874.5 million as compared with DKK 8,801.1 million at 30 June The solvency ratio (exclusive of the profit for the period), calculated according to the Executive Order on Danish Ship Finance dated 15 December 2000, stood at 19.8 % at 30 June 2005, as compared with the statutory minimum requirement of 10%. Using the same calculation method, the solvency ratio stood at 19.9 % at 30 June In connection with the conversion of Danish Ship Finance into a limited liability company, the above-mentioned executive order is being reviewed by the Danish Financial Supervisory Authority, and a draft executive order on a ship finance institute has been submitted to public enquiry. The new executive order will introduce new capital adequacy rules, which will entail that the provisions on capital adequacy set out in section 143 of the Danish Financial Business Act shall apply also for DSF. The solvency ratio pursuant to these capital adequacy rules has been calculated at 19.8% as at 30 June No events have occurred after the end of the accounting period that have a material effect on DSF s accounts.

4 4 Outlook for the second half of 2005 Towards the end of the first half-year, freight rates started to fall in most of the vessel segments, and this trend continued into the second half. However, rates and values remain high in a historical perspective. A more in-depth description of developments in the shipping segments to which DSF has provided loans is given in the Shipping Market Review, which is available on our website The favourable freight market has generally strengthened the liquidity and financial standing of the shipping companies to which DSF has provided loans. For several shipping companies, the stronger liquidity has reduced their need for financing. This has triggered a greater number of early loan repayments than usual while also reducing the need for raising new loans. This trend is expected to continue into the second half, although it is impossible to quantify the combined effect. However, as a result of a continuing inflow of new customers and larger loans to existing customers, total lending for the year as a whole is expected to be marginally higher than at year-end 2004 (measured in lending currency, typically USD). Higher prepayments than expected may adversely affect this forecast. Measured in lending currency, earnings are unlikely to post a similar increase, as credit margins in shipping have witnessed the same downward trend as in other sectors. There are indications that the credit margins have bottomed out. The key items of DSF s financial statements are market value adjustments and provisions for bad and doubtful debts. On account of the short duration on DSF s securities portfolio, only small market value adjustments are expected for the second half, whereas movements in provisions for bad and doubtful debts are more difficult to predict. If the freight markets and, by extension, the value of the mortgaged vessels continue to fall in the second half, the income posted under this item for the first half could well turn into an expense. DSF has resolved to continue recent years policy of not issuing quarterly accounts in The company s financial results, total assets and capital and reserves are strongly influenced by movements in the line item provisions for bad and doubtful debts. Presently, the item is calculated every six months on the basis of external broker assessments of the mortgaged vessels and the financial standing of each shipowner. A more frequent calculation of the line item would require an excessive amount of resources and, it is believed, would not lead to fluctuations in the company s financial results, total assets and capital and reserves that would have an effect on the pricing of the bonds issued by DSF. Management changes in Danish Ship Finance A/S As a result of the conversion into a limited liability company, the number of board members has been reduced from 9 to 6 persons effective 12 July 2005.

5 5 On the same date, Carsten Mortensen was replaced by Peter Falkenham on the Board of Directors. Members of the board are subsequently: Peter Schütze (Chairman) Eivind Kolding (Vice Chairman) Thorkil H. Christensen Peter Falkenham Per Skovhus Jens Thomsen Also as a result of the conversion, the Board of Representatives of Danish Ship Finance (Danmarks Skibskreditfond) was dissolved on 12 July Copenhagen, 22 August 2005 Peter Schütze Chairman Bo Jagd Managing Director

6 PROFIT AND LOSS ACCOUNT 1 January - 30 June Note: 1 Interest income 1, , Interest expenses (827.6) (917.1) 3 Net interest income Dividends on shares Fee and commission income Fees and commissions paid (3.0) (3.0) Net interest and fee income Market value adjustments (9.0) (47.2) Other operating income Staff costs and administrative expenses (41.8) (38.5) 16 Depreciation and write-downs of tangible assets (0.5) (0.6) 12 Provisions for bad and doubtful debts Profit before tax Tax (75.6) (94.6) Profit for the period

7 BALANCE SHEET as at 30 June Note: ASSETS 9 Due from credit institutions and central banks 3, , ,11,12 Loans 34, , Bonds 17, ,621.2 Shares, etc Holdings in subsidiary undertakings Tangible assets Other assets 3, ,054.3 Commitments undertaken by guarantors Total assets 59, ,737.0 LIABILITIES, CAPITAL AND RESERVES Liabilities 18 Due to credit institutions and central banks 1, Issued bonds 46, , Bond obligation Other liabilities 2, ,505.9 Total liabilities 50, , Capital and reserves Share capital Guarantee capital Undistributable reserve capital 8, Reserves - 8,279.6 Retained profit Total capital and reserves 8, ,801.1 Total liabilities, capital and reserves 59, , Guarantee commitments 23 Other commitments 24 Related parties 25 Notional principals of outstanding derivative financial instruments as at 30 June 26 Market values of outstanding derivative financial instruments as at 30 June Exchange rate risk and use of derivative financial instruments at 30 June 2005

8 CASH FLOW STATEMENT 1 January - 30 June Cash flows from operating activities Profit for the period after tax Adjustment for non-cash operating items (1.6) (38.5) Profit for the year adjusted for non-cash operating items Change in working capital Loans ,158.8 Issued bonds (651.3) (1,927.7) Other operating capital (1,298.1) (530.7) Total (1,456.4) (1,299.6) Cash flows from operating activities (1,259.9) (1,116.6) Cash flows from investing activities Acquisitions - - Purchase of tangible assets - (0.2) Total 0.0 (0.2) Cash and cash equivalents, 1 January 20, ,535.4 Change in cash and cash equivalents (1,259.9) (1,116.8) Cash and cash equivalents, 30 June 19, ,418.6 Cash and cash equivalents, 30 June, consist of: Due from credit institutions and central banks 3, ,772.8 Bonds 17, ,621.2 Due to credit institutions and central banks (1,113.7) (212.9) Bond obligation (649.7) (762.5) Cash and cash equivalents, 30 June 19, ,418.6

9 NOTE 1. INTEREST INCOME Interest from credit institutions Interest on loans Index revaluations of index-linked loans Interest on bonds Other interest income Derivative financial instruments Interest rate contracts (39.7) 78.1 Foreign exchange contracts 7.0 (6.0) Total interest income 1, ,212.9 NOTE 2. INTEREST EXPENSES Interest to credit institutions (24.4) (24.3) Interest on issued bonds (747.9) (790.3) Index revaluations on issued bonds (45.8) (96.6) Other interest expenses (9.5) (5.9) Total interest expenses (827.6) (917.1) NOTE 3. NET INTEREST INCOME Net interest income from lending operations Interest on loans Interest on bonds Interest on block issues included in interest due from credit institutions Interest to credit institutions (5.3) (7.9) Interest expenses on issued bonds (793.7) (886.9) Other interest expenses (2.0) - Derivative financial instruments Interest rate contracts (39.7) 78.1 Foreign exchange contracts 7.0 (6.0) Total net interest income on lending operations Net interest income from financing operations Interest on bonds Interest on loans Interest due from credit institutions excluding interest on block issues Other interest income Interest to credit institutions (19.0) (16.4) Other interest expenses (7.5) (5.9) Total net interest income from financing operations Total net interest income

10 NOTE 4. FEE AND COMMISSION INCOME Guarantee commission Fee and other commission income Total fee and other commission income NOTE 5. MARKET VALUE ADJUSTMENTS Market value adjustments of bonds Realised gains/losses on redemption and sales (19.0) 5.3 Unrealised market value adjustment 11.6 (44.2) Total market value adjustment of bonds (7.4) (38.9) Market value adjustments of shares 0.0 (6.7) Exchange rate adjustments (17.8) 0.0 Market value adjustments of financial instruments 16.2 (1.6) Total market value adjustments (9.0) (47.2) NOTE 6. STAFF COSTS AND ADMINISTRATIVE EXPENSES Remuneration, Board of Directors and Board of Representatives (0.6) (0.6) Staff costs (23.7) (22.2) Other administrative expenses (17.5) (15.7) Total staff costs and administrative expenses (41.8) (38.5) Number of employees - full-time equivalents Average number of employees - full-time equivalents NOTE 7. AUDIT FEES Audit fees for statutory audit (0.4) (0.4) Fees for consultancy services and other professional services (0.4) (0.4) Total audit fees (0.8) (0.8)

11 NOTE 8. TAX Tax has been calculated and provided at the current tax rate of 28 per cent of the pre-tax profit for the year, adjusted for large non-deductible costs and non-taxable income. Comparative figures have been calculated accordingly. During the period, DSF paid on-account tax of DKK 34.2 million, including surcharges. Tax payable for 2004 amounts to DKK million. The tax calculated for the period with the addition of tax payable for 2004 and offset against on-account payments has been provided in the balance sheet. NOTE 9. DUE FROM CREDIT INSTITUTIONS AND CENTRAL BANKS Repo/reverse transactions Other debtors 2, ,982.6 Total due from credit institutions and central banks 3, ,772.8 NOTE 10. LOANS At 1 January 35, ,981.0 Additions 4, ,855.8 Index revaluations during the year Ordinary repayments and redemptions (2,387.6) (2,421.3) Extraordinary prepayments (2,065.2) (827.5) Net change concerning debentures with Danmarks Nationalbank (401.0) (581.0) Exchange rate adjustment of additions and disposals at hedged exchange rate (107.7) (266.4) Provisions for bad and doubtful debts At 30 June 34, ,918.1

12 NOTE 11. LOANS Loans secured against a ship's mortgage 30, ,719.5 Financial debtors The Financial Administration Agency Compensation from the Danish State for interest subsidies and inflation guarantees Danmarks Nationalbank 1, ,851.7 Gross loans at exchange rates at the balance-sheet date 33, ,859.5 Exchange rate adjustments at hedged exchange rates 2, ,794.1 Provisions for bad and doubtful debts (1,034.5) (1,735.5) Total loans 34, ,918.1 "Exchange rate adjustments at hedged exchange rates" relate to the difference between the value of loans calculated at exchange rates at the balance-sheet date and the value of loans calculated at hedged exchange rates, as all significant foreign exchange risks are fully hedged. NOTE 12. ACCUMULATED PROVISIONS The following provisions have been made for debtors A provisions ,561.7 B provisions Total accumulated provisions 1, ,752.8 As a percentage of loans and provisions A provisions B provisions Total accumulated provisions Total accumulated provisions consist of: Set off against loans 1, ,735.5 Provisions made for other liabilities Total accumulated provisions 1, ,752.8 Movements in accumulated provisions Profit and Balance Profit and Balance loss account sheet loss account sheet At 1 January - 1, ,848.7 Write-offs covered by prior-year provisions - (23.3) Write-offs not covered by prior-year provisions New provisions made (311.2) (218.2) Provisions written back (354.2) (314.1) Recovered from claims previously written off Total accumulated provisions / provisions for bad and doutful debts, 30 June , ,752.8

13 NOTE 13. BONDS Bond portfolio Non-callable bonds 14, ,952.5 Callable bonds 2, ,668.7 Total bonds 17, ,621.2 Bond obligation Non-callable bonds (649.7) (762.5) Callable bonds - - Total bond obligation (649.7) (762.5) Net bond portfolio Non-callable bonds 14, ,190.0 Callable bonds 2, ,668.7 Total net bond portfolio 17, ,858.7 NOTE 14. BOND HOLDINGS SPECIFIED BY TIME TO MATURITY Bond portfolio Bonds with a maturity of up to and including 1 year 8, ,040.5 Bonds with a maturity of over 1 year and up to and including 5 years 6, ,824.0 Bonds with a maturity of over 5 years and up to and including 10 years Bonds with a maturity of over 10 years 2, ,668.7 Total bond holdings specified by time to maturity 17, ,621.2 Bond obligation Bonds with a maturity of up to and including 1 year - - Bonds with a maturity of over 1 year and up to and including 5 years - - Bonds with a maturity of over 5 years and up to and including 10 years (649.7) (762.5) Bonds with a maturity of over 10 years - - Total bond obligation specified by time to maturity (649.7) (762.5) Net bond portfolio Bonds with a maturity of up to and including 1 year 8, ,040.5 Bonds with a maturity of over 1 year and up to and including 5 years 6, ,824.0 Bonds with a maturity of over 5 years and up to and including 10 years (579.2) (674.5) Bonds with a maturity of over 10 years 2, ,668.7 Total net bond portfolio specified by time to maturity 17, ,858.7 The bond obligation arises as the result of a reverse transaction in which DSF has sold the bonds received.

14 NOTE 15. SHARES IN SUBSIDIARY UNDERTAKINGS Shares in subsidiary undertakings, 1 January Additions during the period (0.5) - Shares in subsidiary undertakings, 30 June Share Ownership Profit for Book capital interest the year value Aktieselskabet Dansk Skibsfinansiering ,0 % Elite Rederi A/S *) ,8 % - - Corral Line A/S *) 0.5 0,0 % - - Apart from the return on equity, Aktieselskabet Dansk Skibsfinansiering had no activity in *) The acquisition of Elite Rederi A/S and Corral Line A/S was made with a view to restructuring and winding up accounts previously made. All vessels in Elite Rederi A/S were sold in 2002, but as the company continues to have unsettled warranty obligations, etc., capital and reserves has been recognised at DKK nil. The shares in Corral Line A/S were sold in the spring of 2005.

15 NOTE 16. TANGIBLE ASSETS Office property: Purchase price including leasehold improvements, 1 January Leasehold improvements during year Purchase price including leasehold improvements, 30 June Accrued depreciation, 1 January Depreciation during the year Accrued depreciation, 30 June Total office property The asset comprises the office property at Sankt Annæ Plads 1-3, Copenhagen, the public valuation of which is assessed at DKK 60.0 million at 1 October Other tangible assets: Purchase price, 1 January Additions during the year - - Purchase price, 30 June Accumulated depreciation, 1 January Depreciation during the year Accumulated depreciation, 30 June Total other tangible assets Other tangible assets comprise acquisitions with a purchase price exceeding DKK 250, Total tangible assets NOTE 17. OTHER ASSETS Interest receivable 1, ,233.3 Prepayments to swap counterparties Receivable concerning CIRR funding Proceeds receivable from share subscription 1, Market value of forward rate agreements Miscellaneous receivables Total other assets 3, ,054.3

16 NOTE 18. DUE TO CREDIT INSTITUTIONS AND CENTRAL BANKS Repo transactions Debt to Danmarks Nationalbank Other creditors Total due to credit institutions and central banks 1, NOTE 19. ISSUED BONDS At 1 January 47, ,382.3 Additions in conjunction with new loans and block issues Index revaluations during the year Ordinary redemptions (946.8) (1,678.8) Extraordinary repayments and prepayments (412.0) (645.5) At 30 June 46, ,454.6 Specification of issued bonds: Bonds issued in DKK: Bullet bonds 41, ,716.8 Index-linked loans, nominal value 1, ,370.9 Total nominal value 43, ,087.7 Index premium 1, ,823.8 Total issued bonds in DKK 44, ,911.5 Bonds issued in foreign currency: Amortising CIRR bonds, at year-end exchange rates Bullet bonds at exchange rates at the balance-sheet date Exchange rate adjustments at hedged exchange rates (18.7) 15.7 Total issued bonds in foreign currency 1, Total issued bonds 46, ,454.6 NOTE 20. OTHER LIABILITIES Interest payable 1, ,047.8 Provision for the Danish government concerning CIRR funding Provision for the Danish government under conversion framework agreement Guarantee commission payable Corporation tax payable Market value of forward rate agreements Provision guarantees, etc Miscellaneous liabilities Total other liabilities 2, ,505.9

17 NOTE 21. CAPITAL AND RESERVES Share capital: A shares B shares Total share capital Total guarantee capital Tied-up reserve capital / reserves at 1 January 8, ,279.6 Distributable reserves Transferred from the profit and loss account Total capital and reserves 8, ,801.1 Solvency ratio calculated in accordance with Article 14 of the Executive Order on Danish Ship Finance Specification of capital: Share capital Balance at 31 December 2004 in Danish Ship Finance A/S 0.5 Capital reduction (0.5) Capital increase Share capital at 30 June The share capital is divided into the following denominations: A shares 300,000,000 shares of DKK 1.00 each B shares 33,333,334 shares of DKK 1.00 each Each A share of DKK 1.00 entitles the holder to 1 vote Each B share of DKK 1.00 entitles the holder to 1/10 vote Tied-up reserve capital Balance at 31 December ,186.4 Payment to the Danish government (810.0) Transferred to share capital (33.3) Tied-up reserve capital at 30 June ,343.1 Distributable reserves Balance at 31 December Share premium at capital increase Payment to Danmarks Nationalbank (recognised in the balance sheet) (800.0) Distributable reserves at 30 June The conversion of Danish Ship Finance into a limited liability company was completed through a merger of DSF and its wholly owned subsidiary Danish Ship Finance A/S and was effected on 12 July 2005 with retrospective accounting effect from 1 January See announcement no. 10 of 12 July 2005.

18 NOTE 22. GUARANTEE COMMITMENTS In the ordinary course of its lending operations, Danish Ship Finance has undertaken guarantee commitments of In the ordinary course of its lending operations, Danish Ship Finance has undertaken obligations to take over loan commitments at the end of syndication periods expiring before the loans mature for an amount of Payment guarantee provided to the Danish Securities Centre Guarantees provided to the Danish Securities Centre Total guarantee commitments NOTE 23. OTHER COMMITMENTS As a normal part of its lending operations, DSF has undertaken obligations in connection with unutilised drawing rights on loans with revolving credit facilities in the amount of ,572.7 NOTE 24. RELATED PARTIES Related parties include DSF's Management, Board of Directors and subsidiaries. All transactions are cunducted on an arm's length basis.

19 NOTE 25. NOTIONAL PRINCIPALS OF OUTSTANDING DERIVATIVE FINANCIAL INSTRUMENTS AS AT 30 JUNE Swap agreements: Swap agreements have been made with the following parties to hedge the exchange rate exposure on loans and issued bonds: Danmarks Nationalbank 2, ,434.7 Banks 29, ,787.9 Swap agreements have been made with the following parties to hedge the interest rate exposure on loans and issued bonds: Banks 66, ,535.5 Matching swap agreements have been made with debtors and banks as follows: Debtors Banks Swap agreements, for which financial risks are not fully hedged, have been made with the following parties: Banks Forward currency agreements: Forward currency sales Forward Rate Agreements: Forward Rate Agreements with banks and debtors to hedge interest rate exposure Banks 3, Forward securities transactions: Buying 1, Selling

20 NOTE 26. MARKET VALUES OF OUTSTANDING DERIVATIVE FINANCIAL INSTRUMENTS AS AT 30 JUNE 2005 Positive Negative Swap agreements: Swap agreements have been made with the following parties to hedge the exchange rate exposure on loans: Danmarks Nationalbank Banks 3, Swap agreements have been made with the following parties to hedge the interest rate exposure on loans: Banks 1, ,378.3 Matching swap agreements have been made with debtors and banks as follows: Debtors Banks Swap agreements, for which financial risks are not fully hedged, have been made with the following parties: Banks Forward currency agreements: Forward currency sales Forward Rate Agreements: Forward Rate Agreements with banks and debtors to hedge interest rate exposure Banks Forward securities transactions: Buying Selling

21 NOTE 27. EXCHANGE RATE RISK AND USE OF DERIVATIVE FINANCIAL INSTRUMENTS AT 30 JUNE 2005 Exchange rate risk: The total unhedged foreign currency position at 30 June, translated at period-end exchange rates into DKK amounts to DKK million. (DKK -3.6 million at 30 June 2004) The net position is specified as follows: All amounts are translated into DKK at the period-end exchange rates: USD Other currencies Total foreign DKK Total currency Loans at period-end exchange rates 25, , , , ,367.0 Foreign exchange adjustment at hedge price 2, ,662.7 Provision for loans (1,034.5) (1,034.5) Loans as per the balance sheet 34,995.2 Due from credit institutions and central banks 1, , , ,377.4 Bond portfolios , ,701.0 Interest receivable, etc , ,275.7 Other assets , ,990.7 Total assets as per the balance sheet 27, , , , ,340.0 Issued bonds at period-end exchange rates (866.9) (658.2) (1,525.1) (44,933.5) (46,458.6) Foreign exchange adjustment at hedge price Issued bonds as per the balance sheet (46,439.9) Due to banks (13.4) (21.5) (34.9) (1,078.8) (1,113.7) Interest payable (131.5) (59.8) (191.3) (893.6) (1,084.9) Other creditors (1,827.0) (1,827.0) Total capital and reserves (8,874.5) (8,874.5) Total liabilities as per the balance sheet (1,011.8) (739.5) (1,751.3) (57,588.7) (59,340.0) Derivative financial instruments - debtors ,268.8 Derivative financial instruments - creditors (26,938.3) (2,432.0) (29,370.3) Total net position (134.3) 29.4 (104.9) (translated into DKK) The net position is primarily the result of earned, unrealised marginal earnings (interest rate margins), because the currency swap agreements are fully hedged along with the underlying assets and liabilities.