Annual Financial Report
Nasdaq Copenhagen
London Stock Exchange
Euronext Dublin
Other stakeholders
1 February 2023
Ringkjøbing Landbobank’s annual report for 2022
The bank’s board of directors and general management today approved the annual report for 2022.
Despite of war and inflation, 2022 was again a good year for Ringkjøbing Landbobank with a large increase in new customers and high activity, partly due to the takeover of SEB’s Danish Private Banking portfolio. This resulted in two upward adjustments of the expectations to the core earnings and net profit for the year before tax, the latest on 5 December 2022. Both results were realised as announced.
Core earnings
| (DKK million) | 2022 | 2021 | 2020 | 2019 | 2018 |
| Total core income | 2,862 | 2,433 | 2,179 | 2,116 | 2,001 |
| Total expenses and depreciation | 891 | 817 | 788 | 805 | 866 |
| Core earnings before impairment charges for loans | 1,971 | 1,616 | 1,391 | 1,311 | 1,135 |
| Impairment charges for loans etc. | 2 | 68 | 223 | 100 | 43 |
| Core earnings | 1,969 | 1,548 | 1,168 | 1,211 | 1,092 |
| Result for the portfolio etc. | -69 | +7 | -9 | +49 | +77 |
| Special costs | 20 | 17 | 15 | 15 | 217 |
| Profit before tax | 1,880 | 1,538 | 1,144 | 1,245 | 952 |
| Profit after tax | 1,495 | 1,229 | 920 | 978 | 778 |
2022 – highlights
- Net profit for the year increases by 22% to DKK 1,495 million
- Income increases by 18% and expenses increase by 9%, reducing the cost/income ratio to 31%
- Strong credit quality with impairment charges of only DKK 2 million coincide with increase in management estimates to DKK 794 million
- Continued big increase in new customers and growth of 17% in loans, 11% in deposits and 6% in custody accounts holdings
- Strong image for both brands, which take first and third place respectively in Denmark
- Partnership with SEB in private banking and a new branch In Copenhagen
- The bank’s Long Term Issuer Rating at Moody’s was upgraded to Aa3
- A pay-out ratio of 65% will be effected through a dividend of DKK 7 per share and a DKK 770 million share buy-back programme
- Expectations for net profit for 2023 in the range DKK 1,200-1,600 million
Yours faithfully
Ringkjøbing Landbobank
John Fisker
CEO
Attachments
