Vestjysk Bank's Q1-Q3 2019 Quarterly Report
Nasdaq Copenhagen A/S
20 November 2019
Q1-Q3 2019 Highlights
Vestjysk Bank realised a profit after tax of DKK 397 million in Q1-Q3 2019. The Bank’s earnings before taxes for the period amounted to DKK 416 million. Impairment losses were generally at a significantly lower level than in the same period of 2018, and the Bank’s overall profit after tax for Q1-Q3 2019 is considered very satisfactory.
- Profit after tax of DKK 397 million (Q1-Q3 2018: DKK 166 million), equalling a return on equity after tax of 19.4% p.a.
- Core income of DKK 827 million (DKK 685 million in Q1-Q3 2018).
- The proceeds from the sale of shares in Sparinvest Holding SE in Q3 2019 amounted to DKK 142 million.
- Total costs amounted to DKK 367 million in Q1-Q3 2019 compared with DKK 370 million in 2018, resulting in a cost ratio of 44.5% (Q1-Q3 2018: 54.0%).
- Core earnings before impairment of DKK 460 million (Q1-Q3 2018: DKK 315 million).
- Impairment of loans and receivables, etc. of DKK 44 million (Q1-Q3 2018: DKK 134 million). Impairment losses on agricultural exposures still accounted for the majority of the Bank’s impairment losses, which also included impairment losses in connection with the Danish Financial Supervisory Authority’s inspection in May-June of 2019.
- The Bank’s capital requirement was 13.9%, consisting of an individual solvency need of 10.5%, a general capital conservation buffer of 2.5% and a countercyclical buffer of 1.0%.
- The Bank’s total capital ratio was 17.8%, implying an excess cover of 3.9 percentage points or DKK 552 million. The Bank’s profit for Q1-Q3 2019 has not been included in the calculation of the Bank’s capital ratios.
- The Bank’s MREL capital ratio was 17.8%. The MREL requirement was phased in at 0.625%, which is added to the capital requirement. The MREL requirement was 14.6%. The excess cover relative to the MREL capital requirement was 3.2%, or DKK 462 million.
- The Bank’s LCR was 203.2%, compared with a requirement of 100%.
Without the proceeds of DKK 142 million from the sale of shares in Sparinvest Holdings SE, the Bank would have realised a profit after tax of DKK 255 million, a cost ratio of 53.6% and a return on equity of 12.5% p.a.
Outlook for 2019
As stated in a company announcement of 8 October 2019, Vestjysk Bank upgraded the profit guidance for 2019 from an interval of DKK 360-410 million to an interval of DKK 420-460 million. The upgrade was driven by a number of factors raising the Bank’s expectations, including a continued high home remortgaging level combined with the Bank’s generally high level of activity. The continued very favourable pork settlement prices was another factor raising the Banks expectations of lower impairment losses. Since its first profit guidance for full year 2019 in February, the guidance has been upgraded from an interval of DKK 225-275 million to the current interval of DKK 420-460 million This includes the sale of shares in Sparinvest Holdings SE, which generated proceeds of DKK 142 million for Vestjysk Bank.
Enquiries
Please address any enquiries regarding the present announcement to Jan Ulsø Madsen, CEO, at tel. (+45) 96 63 21 04.
Vestjysk Bank A/S
Kim Duus Jan Ulsø Madsen
Chairman CEO
Vestjysk Bank A/S
Torvet 4-5
7620 Lemvig
Denmark
Tel. (+45) 96 63 20 00
CVR no. 34 63 13 28
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