Ringkjøbing Landbobank’s report for the first quarter of 2020
The first quarter of the year was heavily influenced 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) | Q1 2020 | Q1 2019 | 2019 | 2018 | 2017 | 2016 |
| Total core income | 541 | 526 | 2,116 | 2,001 | 1,917 | 1,861 |
| Total expenses and depreciation | 198 | 201 | 805 | 866 | 845 | 815 |
| Core earnings before impairment charges for loans | 343 | 325 | 1,311 | 1,135 | 1,072 | 1,046 |
| Impairment charges for loans etc. | -75 | -25 | -100 | -43 | -70 | -211 |
| Core earnings | 268 | 300 | 1,211 | 1,092 | 1,002 | 835 |
| Result for the portfolio etc. | -70 | +26 | +49 | +77 | +84 | +78 |
| Special costs | 4 | 4 | 15 | 217 | 22 | 22 |
| Profit before tax | 194 | 322 | 1,245 | 952 | 1,064 | 891 |
Highlights of the first quarter 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 - 3% increase in total core income to DKK 541 million
- 11% fall in core earnings to DKK 268 million
- DKK 200 million corona-led impairment buffer established resulting in a total management estimate for impairment charges of DKK 326 million at the end of the quarter
- Result for the portfolio negative by DKK 70 million, which means a 40% fall to DKK 194 million in profit before tax
- Continued increase in customers and 6% increase in the bank’s loans
- Updating of the bank’s strategy with continued focus on organic growth
- Share buy-back programme suspended
- Following downward adjustment, core earnings are expected to be in the range DKK 900-1,100 million and profit before tax in the range DKK 800-1.100 million
Yours sincerely
Ringkjøbing Landbobank
John Fisker
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