Quarterly report for Q1 2009


Satisfactory growth in core earnings before impairment to
DKK 274 million - impairment of loans and contributions to
sector-targeted solutions slice pre-tax profits, down at DKK
49 million

• Net interest income up 49% to DKK 466 million (YOY)
• Net income from fees, charges and commissions down 3% to DKK 101 million (YOY)
• Market-value adjustments up from DKK 8 million to DKK 80 million (YOY)
• Costs up 16% (YOY), incl. integration of branches taken over from Roskilde
Bank 
• Core earnings before impairment almost doubled to DKK 274 million (YOY)
• Impairment of loans and advances, etc., amounted to DKK 133 million,
corresponding 
  to an impairment ratio of 1.13% p.a.
• Earnings from investment portfolios ended at DKK -35 million
• Contributions to sector-targeted solutions under the auspices of the Danish
Banking 
  Sector Emergency Fund: DKK 58 million.
• Bank deposits advanced 14%, and bank lending went up 1% (YOY)
• Solvency ratio of 11.8% - individual solvency requirements of 7.8%
• Excess coverage relative to strategic liquidity target improved, now standing
at DKK 
  5.0 billion
• Forecast for full-year core earnings before impairment adjusted upwards to
  DKK 750-900 million
• Forecast for the year's impairment ratio adjusted upwards to 1.00-1.25% p.a.
• Moody's rating unchanged: C, A1, P-1 (outlook stable)

We have experienced satisfactory growth in core earnings before impairment,
ending at DKK 274 million in Q1 - almost twice as much as the same period last
year. However, impairment of loans and advances in the amount of DKK 133
million and our DKK 58 million contribution to the Danish Banking Sector
Emergency Fund pushed down the pre-tax profits for Q1 to DKK 49 million. But
developments in core earnings before impairment mean that we are revising
forecasts for the full year upwards simultaneously with announcing our profits
for Q1 2009. Thus, we now expect 
core earnings before impairment to end at DKK 750-900 million compared with the
previously announced DKK 600-800 million, says Lasse Nyby, CEO.

Attachments

uk - 1_kvt_2009_sparnord.pdf