Ringkjøbing Landbobank’s interim report for the first half of 2020
Nasdaq Copenhagen
London Stock Exchange
Other stakeholders
5 August 2020
Ringkjøbing Landbobank’s interim report for the first half of 2020
The financial results for the half-year are affected by the corona crisis. We are pleased, in this context, that the bank’s business model is robust, with a low rate of costs and a strong capital base.
Core earnings
| (DKK million) | H1 2020 | H1 2019 | 2019 | 2018 | 2017 | 2016 |
| Total core income | 1,061 | 1,048 | 2,116 | 2,001 | 1,917 | 1,861 |
| Total expenses and depreciation | 390 | 405 | 805 | 866 | 845 | 815 |
| Core earnings before impairment charges for loans | 671 | 643 | 1,311 | 1,135 | 1,072 | 1,046 |
| Impairment charges for loans etc. | -141 | -49 | -100 | -43 | -70 | -211 |
| Core earnings | 530 | 594 | 1,211 | 1,092 | 1,002 | 835 |
| Result for the portfolio etc. | -41 | +33 | +49 | +77 | +84 | +78 |
| Special costs | 8 | 8 | 15 | 217 | 22 | 22 |
| Profit before tax | 481 | 619 | 1,245 | 952 | 1,064 | 891 |
Highlights of the first half of 2020
- Our main focus during the corona crisis has been to help our customers and business partners
– and of course to safeguard the working conditions of our employees - Income increases by 1% and expenses fall by 4%, reducing the bank’s rate of costs to 36.8%
- The management estimate for impairment charges in the second quarter of 2020 has increased by DKK 198 million after impairment charges of DKK 66 million for operations in the quarter and large reversals, particularly in the agricultural segment
- 11% fall in core earnings to DKK 530 million
- 22% fall in profit before tax to DKK 481 million
- Continued big increase in customers and 2% growth in loans
- Strong capital position with common equity tier 1 capital ratio of 18.1% and MREL capital ratio of 30.0%
| Yours sincerely |
| Ringkjøbing Landbobank John Fisker |
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