Semi-Annual Report 2004 for the Spar Nord Bank Group

Transcription

1 To the Copenhagen Stock Exchange 18 August 2004 Stock Exchange Announcement No. 9, 2004 Contact: Keld Gammelgaard, Phone Semi-Annual Report 2004 for the Spar Nord Bank Group Satisfactory pre-tax profit of DKK 164.5m Annualized 15.4% return on equity before tax Core earnings amounted to DKK 133.9m versus DKK 114.2m in the first six months 2003 DKK 30.6m in earnings from investment portfolios versus DKK 36.5m 6.7% growth in deposits, and loans and advances up 4.4% Total business volume exceeded DKK 40bn. Losses and provisions down 23.6 to DKK 94.4m Spar Nord Bank recorded a satisfactory profit of DKK 164.5m before tax for the first six months of the year, an amount almost 10 pct up on last year s DKK 150.7m for the same period. The profit corresponds to an annualized 15.4 pct return on equity before tax, calculated on the average equity capital. The aggregate business volume the sum of loans and advances, deposits and guarantees rose by 6.6 pct, for the first time exceeding DKK 40bn and ending at DKK 40.9 bn. Spar Nord Bank A/S, CVR nr , Aalborg The mounting activity level, including the intake of customers and shareholders, is one reason for this progress, while another is the satisfactory development in losses and provisions. This upturn in profits is chiefly attributable to the local banks. Spar Nord Bank A/S Skelagervej 15 P. O. Box 162 DK-9100 Aalborg Phone Telefax Telex spano dk Swift spno dk 22 sparnord@sparnord.dk Page 1 of 17

2 Operational developments Despite the boost in business volume, net interest income dropped 3.0 pct to DKK 419.5m. This drop is primarily attributable to a narrowing of the interest margin of about 0.2 percentage point. The interest margin narrowed because of the low interest level and the successful launch of new low-interest home-financing products. The DKK 150.4m net income from fees, charges and commissions remains at an unchanged level compared with the first six months of The fee income level remains high due to increased activity in securities trading and because companies are showing mounting interest in hedging risks attaching to interest rates and forex. Conversely, the volume of mortgage-credit loans arranged was lower than in the corresponding period last year, which was characterized by high refinancing activity. Market-value adjustments came to DKK 47.0m in the first six months of 2004, DKK 7.6m down on the same period last year. This downturn is due to climbing interest rates in the second quarter of 2004 and lower market-value adjustments, a reduction prompted by the sale of Totalkredit. In the first six months of 2003, market-value adjustments regarding Totalkredit amounted to DKK 5.8m. Other ordinary income rose by DKK 2.4m to DKK 14.7m in the first half of Revaluation of capital holdings ended at DKK 18.1m versus DKK -14.0m in the first six months of This shift came about because the price structure was changed in respect of the data processing centre, SDC, which has turned a loss into a break-even result. In 2003, the Bank also wrote down a shareholding acquired in connection with settlement of a commitment. Total costs climbed 6.0 pct from DKK 420.6m in the corresponding period last year to DKK 445.7m in the first six months of This rise, which corresponds to the forecast, occurred because new local banks were established outside North Jutland and marketing expenses increased. In autumn 2003, Spar Nord Vejle and Spar Nord Odense opened their doors to customers, and in May 2004 Spar Nord Horsens was opened. Marketing expenses increased primarily because 31 shareholder meetings were held in the first three months, with participation of about 16,000 shareholders, and because greater focus was put on marketing efforts. The updating of the Bank s branches continues as planned. In the first six months, 5 branches have been updated, and a total of 36 branches out of the Bank s 69 have been refurbished. As forecast, losses and provisions have been trimmed. In the first six months of 2004, losses and provisions amounted to DKK 94.4m, which is 23.6 pct lower than the previous year. Compared with loans, advances and guarantees, the figure is down from 0.6 pct to 0.4 Spar Nord Bank A/S, CVR nr , Aalborg Total provisions amounted to DKK 699.6m at end-june 2004, compared with DKK 664.5m at end-june 2003, while non-performing loans dropped from DKK 250.8m to DKK 143.6m. This means that developments in provisions compared with non-performing loans have been highly satisfactory. At end-june 2003, provisions amounted to 2.7 times non-performing loans, while the figure increased to 4.9 at end-june Earnings from investment portfolios amounted to DKK 30.6m in the first six months of the year, including a DKK 1.6m profit in Erhvervsinvest Nord, compared with DKK 36.5m in the first six months of Page 2 of 17

3 Deposits and loans & advances Deposits rose by 6.7 pct to DKK 18,483m, while loans and advances grew 4.4 pct to DKK 18,210m. The increase in loans and advances was largest on the private customer side. Growth in the business volume is due to an upturn in the number of customers and a larger volume of business with existing customers. The number of customers who use the Bank s loyalty concept - Star customers - rose by 5,700 to 37,300 at end-june In addition, the number of shareholders has increased by 1,900 to 83,900 since the first half-year Spar Nord Horsens On Spar Nord Bank s 180th birthday, 12 May, Spar Nord Horsens opened up for business. The local bank is starting out with eight employees. Since end-2002, the Bank has opened a total of four new local banks. We have had excellent experience so far with setting up branches outside North Jutland and have recorded a heavier customer intake than anticipated. The goal is for the new local banks to break even in year three. Solvency ratio The solvency ratio amounted to 9.6 pct at 30 June 2004 compared with 10.4 pct at the same time last year. The core capital percentage has been calculated at 8.4 and 7.8 pct, respectively. If the semi-annual profit is included, the solvency ratio comes to 10.1 pct, and the core capital ratio to 8.9 In the second half, the bank expects to raise additional supplementary capital in the amount of DKK 100m. Development in the second quarter The profit for the second quarter of the year ended at DKK 63.5m, against DKK 83.2m in the second quarter of The difference is primarily attributable to earnings on investment portfolios. Outlook for 2004 After the first three months of 2004, Management decided to revise the forecast for the annual profit upwards from DKK m to DKK m, including DKK 44m from the sale of shares in Totalkredit, but excluding earnings from investment portfolios. Management maintains this upwards revision, though with expectations of a profit in the upper part of the range. Page 3 of 17

4 The Supervisory Board As previously announced, Poul Lauritsen, did not offer himself for re-election to the Supervisory Board. Carsten Normann, Rema1000, Denmark, was elected to take his seat, and at the meeting held for the purpose of electing officers, the Supervisory Board appointed Torben Fristrup new chairman. After the Annual General Meeting, Michael Budolfsen, elected by the employees, was appointed deputy chairman in the Danish Financial Service Union and retired from Spar Nord s Supervisory Board. Jan Høholt Jensen has taken his seat. Please direct any queries you may have to Lasse Nyby, Chief Executive Officer, who can be reached on tel Sincerely yours, Spar Nord Bank Torben Fristrup Chairman of the Supervisory Board Lasse Nyby CEO Page 4 of 17

5 Financial Highlights the Spar Nord Bank A/S Group Excerpts from the Income statement DKK million Net interest income... Net income from fees, charges and commissions... Dividends on shares, etc... Market-value adjustments*... Other ordinary income... Revaluation of capital holdings... Core income... 1st six months 1st six months Increase in per cent Operating costs and depreciation and amortization* Core earnings before losses and provisions Losses and provisions... Core earnings Earnings from investment portfolios... Sale of Totalkredit... Profit before tax Tax... Profit after tax Balance sheet total - DKK million Total assets... Deposits... Loans and advances... Guarantees, etc.... Shareholders' equity... Subordinated capital investments... 34,575 34, ,483 17, ,210 17, ,169 3, ,189 2, , Performance indicators Return on equity before tax... Return on equity after tax... Cost share of core income... Cost share of core income, incl. losses and provisions... Losses and loan loss provisions,... Solvency ratio... Core capital ratio The Spar Nord Bank share Earnings before tax per share... Official price, end of period... Equity value, incl. profit/loss for the period... Price/equity value * An adjustment has been made for capital gains on own shares bought to cover the Bank s Management Incentive Scheme. Staff costs have also been adjusted. Page 5 of 17

6 Financial Highlights the Spar Nord Bank A/S Group Excerpts from the Income statement DKK million Net interest income... Net income from fees, charges and commissions... Dividends on shares, etc... Market-value adjustments*... Other ordinary income... Revaluation of capital holdings... Core income... 1Q 2Q 3Q 4Q 1Q 2Q Operating costs and depreciation and amortization* Core earnings before losses and provisions Losses and provisions... Core earnings Earnings from investment portfolios... Sale of Totalkredit... Profit before tax Tax... Profit after tax Balance sheet total - DKK million Total assets... Deposits... Loans and advances... Guarantees, etc.... Shareholders' equity... Subordinated capital investments... 32,710 34,332 32,006 32,401 33,423 34,575 16,573 17,319 17,407 17,541 18,063 18,483 17,095 17,441 17,273 17,836 17,532 18,210 3,585 3,568 3,661 3,777 4,019 4,169 1,975 2,031 2,063 2,067 2,140 2, ,056 1,058 1, Performance indicators Return on equity before tax... Return on equity after tax... Cost share of core income... Cost share of core income, incl. losses and provisions... Losses and loan loss provisions,... Solvency ratio... Core capital ratio The Spar Nord Bank share Earnings before tax per share... Official price, end of period... Equity value, incl. profit/loss for the period... Price/equity value * An adjustment has been made for capital gains on own shares bought to cover the Bank s Management Incentive Scheme. Staff costs have also been adjusted. Page 6 of 17

7 Financial statements broken down by segment The local banks recorded a 51.3 advance in core earnings, which ended at DKK 76.7m. This progress is due primarily to a DKK 34.3m decrease in losses and provisions, a satisfactory decline. Core income remains largely unchanged at DKK 492.2m, even though loans and advances increased by 8.0 and deposits by 3.9 In the first six months the local banks successfully launched new low-interest home-financing products, an initiative that contributed to narrowing the interest margin. In addition, the lower interest level means a lower return on the local banks excess liquidity. With DKK 19.0m in core earnings, Corporate Banking s performance this half-year almost matched the result in the same period last year, with the return on equity reaching 21.2 Loans and advances grew 9.6 pct, while deposits are down 0.6 Despite the 33.0 drop in core earnings to DKK 43.1m, Trading, Financial Markets and the International Division recorded a satisfactory 38.4 return on equity in the first six months of Growing interest rates on the money and bond markets in the second quarter of 2004 are the prime reason for this drop in earnings. Finans Nord recorded a handsome 34.1 hike in core earnings to DKK 22.8 m, due to the sustained high activity level coupled with a downturn in costs. Loans and advances are up by 4.4 compared with the first six months of Corporate Coordination & Support recorded a profit upturn of almost DKK 19m. This advance is chiefly explained by lower external costs than in the first six months of Miscellaneous, which comprises the staff functions and Management, recorded a profit downturn of about DKK 10m, due primarily to rising costs, including an extraordinary DKK 5m writedown on two of the Bank s properties. See details overleaf. Page 7 of 17

8 Core earnings shown by segment DKK million Income statement Core income... External expenses... Internal expenses... Total expenses... Core earnings before losses and provisions Losses and provisions... Core earnings... Spar Nord s local banks Corporate Banking Trading, Financial Markets & the International Division Finans Nord A/S 1st 1st 1st 1st 1st 1st 1st 1st six months six months six months six months six months six months six months six months Balance sheet figures Loans and advances... Deposits... Risk-weighted items... Allocated capital, , , , , , , , , , , , , , , , , , , , Performance indicators Return on equity, per annum... Cost share of core income, Core earnings shown by segment DKK million Income statement Core income... External expenses... Internal expenses... Total expenses... Core earnings before losses and provisions Losses and provisions... Core earnings... Earnings from investment portfolios... Profit before tax... Corporate Coordination and Support Miscellaneous Total 1st 1st 1st 1st 1st 1st six months six months six months six months six months six months ,6 8,1 17,7-5,9 673,9 658,3-132,6-142,8-66,0-44,0-445,6-420,6 142,4 136,6 26,3 33,3 0,0 0,0 9,8-6,2-39,7-10,7-445,6-420,6 19,4 1,9-22,0-16,7 228,3 237,7 0,1-1,0-25,2-21,6-94,4-123,5 19,5 0,9-47,2-38,3 133,9 114,2 30,6 36,5 164,5 150,7 Page 8 of 17

9 Other comments on the Interim Report Spar Nord Bank shares held by the Supervisory Board and the Executive Board 21 April 9 June Niels Ole Arndt Henrik Hougaard... 1,810 1,810 Erling Kjær... 1,193 1,193 Poul Lauritsen*... 4,764 Per Søndergaard... 2,755 2,755 Torben Fristrup Carsten Normann... 0 Michael Budolfsen** Jan Høholt Jensen** Ole Skov Trine Haals Lasse Nyby... 3,489 3,489 John Lundsgaard... 3,807 3,807 Lars Møller... 3,726 3,726 Accounting policies The Interim Report of Spar Nord Bank has been prepared pursuant to the rules laid down in the Danish Financial Business Act, the Consolidated Act on Commercial Banks and Savings Banks, etc., the Recommended Accounting Procedures for Financial Institutions and the guidelines issued by the Danish Financial Supervisory Authority. In addition, the Financial Statements have been prepared pursuant to the rules of the Copenhagen Stock Exchange on disclosure obligations for issuers of listed securities and prevailing Danish Accounting Standards, subject to such departures and modifications as follow from the Recommended Accounting Procedures for Financial Institutions. The accounting and consolidation policies have been applied consistently with the previous fullyear accounts. *) Poul Lauritsen retired from the Supervisory Board at 28 April 2004 **) Michael Budolfsen, the board member elected by the employees, retired from the Supervisory Board at 1 June 2004 and was replaced by Jan Høholt Jensen. The IAS/IFRS project regarding the transition to international accounting standards is progressing according to plan. Note: The holdings include all shares held by the entire household. List of companies included in the Consolidated Financial Statements for Spar Nord Bank Interest Interest Finans Nord A/S, Aalborg Erhvervsinvest Nord A/S, Aalborg Sparekassen Nordjyllands Investeringsselskab af A/S, Aalborg The companies Spar Nord Finanslån A/S - Aalborg, Ejendomsselskabet af ApS - Aars, Aars Invest I A/S - Aars, Aars Invest II A/S Aars have been excluded from the consolidation. Collectively and individually, the companies are considered insignificant compared with the entire Group. The combined shareholders equity of the companies excluded from consolidation amounts to DKK 6.2m at 30 June 2004, while the combined profits of the companies amount to DKK 0.3m for the period January to June Page 9 of 17

10 PROFIT AND LOSS ACCOUNT Spar Nord Spar Nord Spar Nord Spar Nord Bank A/S Bank A/S Bank A/S Bank A/S The Group The Group Parent Comp. Parent Comp Interest income Interest expenses , , , , , , , ,815 Net income from interest , , , , Dividends on shares, etc.... Fees, charges and commissions receivable... Fees, charges and commissions payable... 28,855 28,429 28,810 28, , , , ,726 22,693 29,409 22,363 29,168 Net income from interest, fees and charges , , , , Market-value adjustments... Other ordinary income Staff costs and administrative expenses... Depreciation, amortization and writedown of intangible and tangible assets... Other ordinary expenses... Losses and provisions for losses Profit on investments in associated and affiliated companies... 52,085 93,432 52,534 98,342 14,713 12,401 8,210 9, , , , ,192 26,219 25,462 23,854 23,177 3,110 4,182 1,902 3,354 94, ,682 81, ,379 22,482-15,237 33,133-2,738 Profit/loss on ordinary operations before tax , , , , Tax... 43,431 47,709 33,206 42,860 Profit/loss , , , ,970 Page 10 of 17

11 ASSETS Spar Nord Spar Nord Spar Nord Spar Nord Bank A/S Bank A/S Bank A/S Bank A/S The Group The Group Parent Comp. Parent Comp Cash in hand and claims at call on central banks Receivables from credit institutions and central banks Loans and advances Bonds... Shares, etc.... Investments in associated companies, etc.... Investments in affiliated companies... Intangible assets... Tangible assets Treasury shares... Other assets... Prepayments and accrued income , , , ,450 3,148,732 4,343,042 3,148,563 4,342,318 18,210,046 17,441,473 17,681,396 16,982,758 8,834,025 8,329,417 8,834,025 8,329,417 1,369,704 1,117,854 1,304,186 1,044, , , , ,110 6,247 5, , ,899 38,671 42,754 11,156 11, , , , ,091 15, ,671 15, ,671 1,542,558 1,673,748 1,558,751 1,693,611 45,431 36,935 44,388 36,520 Total assets... 34,575,123 34,331,772 34,246,704 34,047,355 LIABILITIES 12. Payables to credit institutions and central banks Deposits... Other liabilities... Accrued expenses and deferred income Provisions for commitments Subordinated capital investments... 10,386,202 11,421,236 10,386,202 11,420,512 18,482,584 17,318,953 18,525,567 17,359,512 2,410,260 2,328,799 2,221,044 2,162,648 73,624 67,377 7,472 6, , ,172 11,441 11, ,271 1,056, ,271 1,056, SHAREHOLDERS' EQUITY Share capital... Reserve for treasury shares... Other reserves... Brought forward from prior years... Profit for the year to date (after tax) , , , ,848 15, ,671 15, , ,650 76, , ,667 1,413,329 1,211,861 1,251,668 1,068, , , , ,970 Total shareholders equity... Total liabilities... 2,188,707 2,030,836 2,188,707 2,030,836 34,575,123 34,331,772 34,246,704 34,047, OFF-BALANCE SHEET ITEMS Guarantees, etc.... Other commitments... 4,169,487 3,568,382 4,852,389 3,982, , ,000 Total off-balance sheet items... 4,169,562 3,594,382 4,852,464 4,008,266 Page 11 of 17

12 Spar Nord Spar Nord Spar Nord Spar Nord Bank A/S Bank A/S Bank A/S Bank A/S The Group The Group Parent Comp. Parent Comp Interest receivable/premium on forward transactions from Receivables from credit institutions and central banks... Loans and advances... Bonds... Derivative instruments, total... Of which: Foreign exchange contracts... Interest-rate contracts... Share contracts... Other... Total interest receivable... Of which, receivable from genuine purchase and resale transactions booked under: Receivables from credit institutions and central banks... Loans and advances Interest payable to Credit institutions and central banks... Deposits... Subordinated capital investments... Other... Total interest expenses... Of which, interest payable on genuine sales and repo transactions booked under: Payables to credit institutions and central banks... Deposits Dividends on Shares... Total dividends on shares and other investments Market-value adjustment of Bonds... Shares... Fixed-interest loans... Foreign exchange... Derivative instruments, total... Of which: Foreign exchange contracts... Interest-rate contracts... Share contracts... Total market-value adjustments... Of which, pension pools... Market-value adjustments, excl. pension pools Staff costs and administrative expenses Salaries and remuneration of Executive Board, and Supervisory Board Executive Board... Supervisory Board... Salaries and remuneration of Supervisory Board and Executive Board total... Of which, market-value adjustment of Management Incentive Scheme for the Executive Board... 24,411 44,989 24,409 44, , , , , , , , ,006-10,374 13,470-10,374 13,470 5,022 15,874 5,022 15,874-15,396-2,403-15,396-2, , , , ,298 1,215 8,126 1,215 8, , ,718 64, ,593 64, , , , , ,403 28,048 31,921 28,048 31, , , , ,815 2,148 8,811 2,148 8, ,855 28,429 28,810 28,429 28,855 28,429 28,810 28,429 5,190 83,081 5,190 83,080 80,994 88,714 81,474 92, ,871 16,463-4,146 16,432-4,130 6,511-36,441 6,511-36,441 11,334-47,786 11,334-47,786-5,328 11,727-5,328 11, , , , ,854 57,152 38,512 57,152 38,512 52,085 93,432 52,534 98,342 3,236 7,302 3,236 7, ,806 8,034 3,806 8, , ,687 Page 12 of 17

13 Spar Nord Spar Nord Spar Nord Spar Nord Bank A/S Bank A/S Bank A/S Bank A/S The Group The Group Parent Comp. Parent Comp Staff costs: Salaries... Pensions... Social security costs... Staff costs, total... Of which, market-value adjustments of Management Incentive Scheme , , , ,095 24,887 23,102 23,695 21,967 16,743 15,818 15,731 14, , , , , , ,923 Other administrative expenses: Computer expenses... Marketing costs... Rent... Telephone and postage... Other office expenses... Other administrative expenses... Other administrative expenses, total... Total staff costs and administrative expenses... 59,457 64,025 58,569 63,300 22,410 8,783 21,857 8,290 19,946 19,855 19,577 19,258 15,028 12,060 14,471 11,387 5,163 14,806 4,869 14,389 33,704 23,936 30,840 21, , , , , , , , , Profit on investments in associated and affiliated companies Profit on investments in associated companies, etc.... Profit on investments in affiliated companies... Total profit on investments in associated and affiliated companies... 22,215-15,494 17,783-14, ,350 11,560 22,482-15,237 33,133-2, Tax Estimated tax on the income for the period... Deferred tax... Post-adjustment of tax calculated for prior years... Tax on the provision account/foreign coupon tax... Total tax... Current Danish tax rate... Share in profits of associated and affiliated companies... Non-deductible costs and non-taxable income... Post-adjustment of tax calculated for prior years... Tax on the provision account/foreign coupon tax... Effective tax rate, total... 48,296 45,371 40,183 40,522 12, , , , ,413 2,338 2,413 2,338 43,431 47,709 33,206 42,860 30,0 30,0 30,0 30,0 0,0 1,2-3,0-1,1 6,9-1,1-3,3-1,1-11,9 0,0-3,8 0,0 1,5 1,6 1,6 1,6 26,5 31,7 21,5 29,4 8. Receivables from credit institutions and central banks Balances with central banks, subject to notice... Balances with credit institutions... Total receivables from credit institutions and central banks... Of which, genuine purchase and resale transactions: Reverse transactions... 1,799, ,832 1,799, ,832 1,349,573 4,206,210 1,349,405 4,205,486 3,148,732 4,343,042 3,148,563 4,342, , , , ,827 Page 13 of 17

14 Spar Nord Spar Nord Spar Nord Spar Nord Bank A/S Bank A/S Bank A/S Bank A/S The Group The Group Parent Comp. Parent Comp Loans and advances Of which, genuine purchase and resale transactions: Reverse transactions... Losses and provisions on loans, advances and guarantees Loan loss provision balance, beginning... New provisions in the period, net... Previous provisions, now written off... Total provisions... - of which B-provisions... Loss without previous provision... Carried to income, previously written off... Revaluation of fixed-interest assets: Carrying amount... Purchase price... Market value... Nominal value... Hedged by swap contracts: Synthetic principal/nominal value... Carrying amount... Market value Bonds At the end of the six months, securities deposited with Danmarks Nationalbank, The FUTOP Clearing Centre and foreign clearing centres amounted to nom Treasury shares Carrying amount... Nominal value... No. of shares... Share capital percentage Payables to credit institutions and central banks Of which, genuine sales and repo transactions: Repo transactions Deposits Claims at call... Subject to notice... Time deposits... Special types of deposit... Total deposits Provisions for commitments Provisions for pensions and related commitments... Provisions for deferred tax... Provisions for loss in connection with legal actions... Other provisions for liabilities... Total provisions for liabilities , , , , , , , ,855 98, ,450 88,649 95,040-57,016-83,204-48,437-74, , , , ,880 94, ,652 70, ,755-11,627-30,033-8,070-27,011 15,030 10,965 14,824 10, ,654 1,046, ,654 1,046, ,654 1,046, ,654 1,046, ,261 1,094, ,261 1,094, ,654 1,046, ,654 1,046, ,607 1,054, ,607 1,054, ,607-47,425-14,607-47,425 4,361,950 4,805,780 4,361,950 4,805,780 15, ,671 15, ,671 2,959 28,731 2,959 28,731 29, ,306 29, , ,412 29, ,412 29,157 12,826,377 11,810,546 12,869,360 11,851, , , , ,270 1,951,642 1,761,137 1,951,642 1,761,137 3,532,586 3,342,000 3,532,586 3,342,000 18,482,584 17,318,953 18,525,567 17,359,512 3,822 3,762 3,822 3, ,036 96, ,939 5,144 2,939 5,144 4,680 2,491 4,680 2, , ,172 11,441 11,397 Page 14 of 17

15 15. Subordinated capital investments Nom. EUR 40,000,000 exp , Nom. DKK 300,000,000 exp , Nom. NOK 200,000,000 exp , Nom. DKK 50,000,000 exp , Nom. DKK 150,000,000 exp , Nom. DKK 100,000,000 exp , Nom. EUR 10,000,000 exp , Nom. EUR 2,500,000 exp , Nom. EUR 5,000,000 exp , Subordinated capital investments, total... Spar Nord Spar Nord Spar Nord Spar Nord Bank A/S Bank A/S Bank A/S Bank A/S The Group The Group Parent Comp. Parent Comp , , , , , , , , , ,180 50,000 50,000 50,000 50, , , , , , ,000 74,326 74,299 74,326 74,299 18,582 18,575 18,582 18,575 37,163 37,149 37,163 37, ,271 1,056, ,271 1,056,399 Interest on subordinated capital investments... Costs of raising subordinated capital investments... Subordinated capital investments that can be included for the purpose of calculating the capital resources... Revaluation of fixed-interest liabilities: Carrying amount... Purchase price... Market value... Nominal value... Hedged by swap contracts: Synthetic principal/nominal value... Carrying amount... Market value Capital movements Shareholders equity, beginning of year... Other capital movements in associated undertakings, booked at equity value... Profit for the year to date (after tax)... Shareholders equity, incl. profit/loss for the period... 28,048 31,921 28,048 31, ,271 1,056, ,271 1,056, , , , , , , , , , , , , , , , , , , , ,203-10,900-7,920-10,900-7,920 11,911 30,121 11,911 30,121 2,067,432 1,927,866 2,067,432 1,927, , , , ,970 2,188,707 2,030,836 2,188,707 2,030,836 The share capital consists of 5,188,480 shares in the denomination of DKK Off-balance sheet items Guarantees, etc. Financial guarantees... Other guarantees... Guarantees, etc., total... Other commitments Irrevocable credit commitments... Other commitments, total... 2,925,071 2,544,010 3,607,973 2,957,894 1,244,415 1,024,372 1,244,415 1,024,372 4,169,487 3,568,382 4,852,389 3,982, , , , ,000 Page 15 of 17

16 Spar Nord Spar Nord Spar Nord Spar Nord Bank A/S Bank A/S Bank A/S Bank A/S The Group The Group Parent Comp. Parent Comp Notes to the Financial Statements without reference Solvency information Core capital after deductions... Supplementary capital and subordinated loan capital included... Deductions from supplementary capital and subordinated loan capital... Subordinated loan capital and short-term supplementary capital after deductions, total... Risk-weighted items not included in the trading portfolio... Risk-weighted items subject to a market risk, etc... Risk-weighted items, total... 2,013,156 1,764,441 2,031,444 1,783, ,442 1,055, ,442 1,055, , , , ,139 2,308,928 2,340,519 2,329,044 2,361,925 20,184,770 19,240,861 20,187,242 19,242,119 3,866,975 3,263,738 3,762,086 3,154,015 24,051,745 22,504,599 23,949,328 22,396,134 Solvency ratio according to s. 124(1) of the Financial Business Act (1 dec.)... Core capital after deductions in per cent of risk-weighted items, total Ownership The Spar Nord Foundation, Aalborg and Nykredit Realkredit A/S, Copenhagen, have announced that they each hold an interest of more than 5% in Spar Nord Bank A/S. Page 16 of 17

17 Spar Nord Bank A/S The Group PERFORMANCE INDICATORS 1. Solvency ratio Core capital ratio Return on equity before tax (6 mths) Return on equity after tax (6 mths) Income/cost ratio (DKK) Interest-rate risk Foreign exchange position Foreign exchange risk Coverage relative to statutory cash ratio requirement Total of major commitments Provisions in per cent Losses and provisions in per cent (6 mths) Increase in loans and advances (6 mths) Loans and advances rel. to shareholders' equity Spar Nord Bank A/S Parent Company PERFORMANCE INDICATORS 1. Solvency ratio Core capital ratio Return on equity before tax (6 mths) Return on equity after tax (6 mths) Income/cost ratio (DKK) Interest-rate risk Foreign exchange position Foreign exchange risk Loans and advances + provisions rel. to deposits Coverage relative to statutory cash ratio requirement Total of major commitments Provisions in per cent Losses and provisions in per cent (6 mths) Increase in loans and advances (6 mths) Loans and advances rel. to shareholders' equity PERFORMANCE INDICATORS FOR LISTED COMPANIES Earnings before tax per share (6 mths), DKK Earnings after tax per share (6 mths), DKK Equity value per share, DKK Share price/equity value per share, DKK Page 17 of 17