Today, the Board of Directors of DLR Kredit A/S approved the Annual Report for 2013.

Transcription

1 27 February 2014 To NASDAQ OMX Copenhagen Today, the Board of Directors of DLR Kredit A/S approved the Annual Report for We enclose the Announcement of Financial Results of DLR Kredit A/S for the period 1 January - 31 December Yours sincerely DLR Kredit A/S Bent Andersen Managing Director and CEO Jens Kr. A. Møller Managing Director For further information, please contact: Bent Andersen, Managing Director and CEO, phone or Jens Kr. A. Møller, Managing Director, phone As from today, DLR Kredit s Annual Report 2013 can be downloaded from in PDF format.

2 2 Financial Statements 2013 Financial Summary for the period DKKm Net interest income 1, , , ,047.2 Net fee income etc. (220.6) (189.8) (298.3) (277.7) (239.8) Value adjustments (295.8) (173.7) (258.7) 32.6 (14.1) Other operating income Staff costs and administrative expenses (203.7) (199.6) (188.4) (185.6) (183.5) Depreciation on fixed assets (4.8) (5.1) (5.7) (6.7) (7.3) Other operating expenses (12.5) Provisions for loan and receivable impairment etc. (113.3) (87.1) (140.8) (106.4) (158.7) Profit before tax Profit after tax Balance sheet total 146, , , , ,329.5 Equity Share capital Other reserves and transfers to reserves 9, , , , ,102.7 Total equity 9, , , , ,533.9 Subordinated debt 3, , , , ,587.4 Capital base 13, , , , ,121.3 Solvency ratio Solvency requirement Core capital ratio Profit before tax in pc of equity Profit after tax in pc of equity Loss and impairment ratio for the year Costs in pc of loan portfolio

3 The year in headlines 3 - Satisfactory financial results DKK 629.3m before tax - Core earnings improved by 20 pc compared to Reduction of government hybrid core capital continued from 2012 Profit and loss account In 2013, DLR s primary earnings driver net interest income which primarily comprises commission income relating to lending as well as return on the securities portfolio amounted to DKK 1,449.4m This constitutes an increase of 17.1 pc compared to 2012 when net interest income came to DKK 1,238.1m. Net fees and commissions came to an expense of DKK 220.6m in 2013 against an expense of DKK 189.8m in Total costs (staff costs and administrative expenses as well as depreciation and impairment losses on tangible assets) showed an increase of 1.9 pc. for 2013 compared to The costs amounted to DKK 208.5m and DKK 204.7m, respectively, for the two years. In 2013, DLR experienced a negative value adjustment of DKK 295.8m against a similar negative value adjustment of DKK 173.7m in The negative adjustment was at the anticipated level and was caused by shorter maturities on the portfolio of short-term bonds with coupon rates exceeding market rates. Provisions for loan and receivable impairment etc. impact on the figures for 2013 negatively by DKK 113.3m. For 2012, an expense of DKK 87.1m was recognised. In 2013, DLR generated a pre-tax profit of DKK 629.3m against DKK 602.5m in Tax on the profit has been calculated at DKK 158.6m, resulting in a profit after tax of DKK 470.7m against DKK 450.7m for Lending activities in 2013 At year-end 2013, total lending measured at fair value amounted to DKK 133.9bn. In 2013, gross lending amounted to DKK 11.3bn against DKK 20.2bn in In 2013, net lending amounted to a negative DKK 1.2bn (nominal), against a positive DKK 1.6bn in Balance Sheet At the end of December 2013, DLR s balance sheet amounted to DKK 146.9bn against DKK 148.9bn at the end of 2012 Equity At the end of the year, DLR s equity amounted to DKK 9,984.3m against DKK 8,968.8m at the end of At 4 September 2013, DLR s share capital was increased by a nominal DKK 35.6m to a total nominal DKK 570.0m; the capital increase resulted in proceeds of just below DKK 545m.

4 Solvency At the end of 2013, DLR s capital base amounted to DKK 13,061.8m while the weighted assets have been calculated at DKK 105,773.6m, corresponding to a solvency ratio of 12.3 pc at the end of 2013, calculated according to the standard method. 4 Capital Structure In 2013, DLR made two partial repayments of a total DKK 2,154.3m of the government hybrid core capital with the approval of the Danish Financial Supervisory Authority (FSA). The partial repayments were made using DLR generated funds and funds from the proceeds from the share capital increase on 4 September At the end of 2013 DLR s total subordinated debt amounted to DKK 3,077.5m. This amount consists of hybrid core capital amounting to DKK 2,077.5m and government hybrid core capital (Banking Package II) of DKK 1,000m. Risk exposure DLR s credit risk and market risk are estimated as limited. This is due to both a solid, legal basis and to DLR s internal credit policy guidelines. To this should be added the guarantee schemes that have been set up for DLR s various lending areas according to agreements with the banks that hold shares in DLR. At the end of 2013, approximately 90 pc of DLR s total loan portfolio was comprised by loan loss guarantee schemes. The bulk of the loan commitments that are not comprised by guarantees typically have low LTV values. Outlook for 2014 Despite indications that activity is picking up, the economic situation is expected to improve but slowly in Urban trades, including in particular small businesses, are therefore expected to continue to be faced with challenges in the year ahead. For the agricultural sector, the good price relations and the continuing low interest rate level in 2014 are expected to form the basis of satisfactory earnings in the most significant areas of production. For 2014, like for the previous year, DLR anticipates a continued, moderate level of activity. The profit before tax is expected to be in the range of DKK m against a realised profit before tax of DKK 629.3m for 2013.

5 5 Profit and Loss Account and Statement of Comprehensive Income for the period 1 January 31 December 2013 (DKKm) Interest income 3, ,499.5 Interest expenses (2,515.6) (3,261.4) Net interest income 1, ,238.1 Dividends from shares etc Fee and commission income Fee and commission paid (384.1) (359.6) Net interest and fee income 1, ,048.9 Value adjustments (295.8) (173.7) Other operating income Staff costs and administrative expenses (203.7) (199.6) Depreciation and impairment losses, tangible assets (4.8) (5.1) Provisions for loan and receivable impairment etc. (113.3) (87.1) Profit before tax Tax (158.6) (151.8) Profit for the year Statement of Comprehensive Income (DKKm) Profit for the year Other comprehensive income after tax Total comprehensive income for the year

6 Balance Sheet at 31 December Dec. 31 Dec. (DKKm) Assets Cash in hand and demand deposits with central banks Receivables from credit institutions and central banks 3, ,122.5 Loans, advances and other receivables at fair value 133, ,621.5 Loans, advances and other receivables at amortised cost Bonds at fair value 8, ,300.7 Shares etc Land and buildings, domicile properties Other tangible assets Deferred tax assets Assets temporarily foreclosed Other assets Prepayments Total assets 146, ,886.7 Liabilities and equity Deposits and other debt 0.0 2,398.5 Issued bonds at fair value 125, ,417.6 Issued bonds at amortised cost 6, ,005.6 Current tax liabilities Other debt and payables 2, ,816.5 Deferred income Total debt 133, ,663.6 Provisions for deferred tax Total provisions Subordinated debt 3, ,254.2 Share capital Revaluation reserve Undistributable reserve 2, ,337.9 Retained earnings 7, ,072.2 Total equity 9, ,968.8 Total liabilities and equity 146, ,886.7