Annual report 2009, Ringkjøbing Landbobank
Dear shareholder
The year 2009 was difficult for the Danish and international economies, with
recession throughout the western world and the consequent increasing
unemployment and public borrowing. Banks throughout the world have received
government support for their survival, and many banks in Denmark have also used
the opportunity to recapitalise by taking up state capital. This has helped to
stabilise the financial system in Denmark.
Against this background, we are well satisfied with the year's pre-tax profit of
DKK 305 million, which equates to a 17% return on equity at the beginning of the
year - the result is at the same level with that of the preceding year. The
bank's core earnings amounted to DKK 356 million, which was in the middle of the
range given at the beginning of the year.
On the share market, the uncertainty which characterised the market a year ago
has been replaced by greater confidence in the future. The return on the bank's
shares was thus plus 96% - an increase in price from 310 to 609 during 2009. In
comparison with the rest of the financial sector in Denmark this is an
attractive result, and including dividends, it represents an eightfold return on
investment in a Landbobank share since the beginning of 2000.
The bank's rate of costs was 31.6, a 2% improvement relative to the preceding
year, meaning that Ringkjøbing Landbobank still has the lowest costs of any bank
in Denmark per Danish krone earned - a situation about which we are happy
because it means that the bank's results are very robust when economic
conditions are negative.
Robustness, profitability and solidity have again become important for customers
and their choice of bank, something we have noticed during the past year. We are
therefore well satisfied with the bank's solid capitalisation. The bank's
solvency ratio of 20.2 should be viewed relative to the statutory requirement of
8%, which gives a solvency cover of 253%. This means that Ringkjøbing Landbobank
is one of Denmark's most solid banks, and we thus possess the strength required
to support our customers and their good investments. Ringkjøbing Landbobank has
not needed to apply for state capital, and it is therefore not paying the
associated high interest costs.
The result and the sound basis for the years to come have also been promoted by
our competent employees, who have again done a fantastic job during the year.
Their skills, stability, loyalty and fighting spirit are an unrivalled
combination.
We are very aware that many of our customers deal with Ringkjøbing Landbobank
because of our employees' skilled work and their extensive knowledge, and this
was rewarded with an attractive number of new customers during 2009, which we
trust and hope will continue in 2010.
There are many indications that 2010 may be another difficult year despite the
fact that the economy is again starting to show growth and progress. The
increasing unemployment and the problems of sales which many companies are
experiencing will continue in 2010, but we nevertheless expect core earnings in
the range DKK 200-400 million. To this will come the result of the trading
portfolio and the costs of the national bank package I.
Finally, we would like to thank our customers and shareholders for their high
level of support for the bank.
Bent Naur John Bull Fisker
2009 2008 2007 2006 2005
Main figures for the bank (million DKK)
Total core income 753 735 696 609 511
Total costs and depreciations -238 -239 -234 -208 -190
Core earnings before write-downs on loans 515 496 462 401 321
Write-downs on loans -159 -77 +11 +69 +5
Core earnings 356 419 473 470 326
Result for portfolio +56 -73 -18 +103 +35
Profit before bank package I etc. 412 346 455 573 361
Costs bank package I etc. -107 -28 0 0 0
Profit before tax 305 318 455 573 361
Profit after tax 232 240 348 432 265
Shareholders'equity 2,056 1,785 1,779 1,711 1,515
Total capital base 2,747 2,458 2,110 2,025 1,538
Deposits 11,187 9,073 9,162 7,046 6,292
Loans 13,047 13,897 14,135 12,760 10,023
Balance sheet total 17,928 18,002 19,634 17,269 13,361
Guarantees 1,486 2,386 4,804 4,804 5,142
Key figures for the bank (per cent)
Pre-tax return on equity, beginning of year 17.1 19.6 29.3 41.8 29.2
Return on equity after tax, beginning of year 13.0 14.7 22.4 31.5 21.3
Rate of costs 31.6 32.4 33.7 34.2 37.2
Core capital ratio 16.6 13.0 11.2 10.4 11.6
Solvency ratio 20.2 16.3 13.0 12.3 11.6
Key figures per 5 DKK share (DKK)
Core earnings 71 83 94 89 62
Profit before tax 60 63 90 109 68
Profit after tax 46 48 69 82 50
Net asset value 408 354 353 324 287
Price, end of year 609 310 858 1,080 750
Dividend 0 0 30 30 28
Pre-tax profit of DKK 305 million equates to 17% return on equity at beginning
of year
19% increase in profit before bank package I
Highly satisfactory level for write-downs of DKK 159 million - equivalent to
1.0%
Fall in costs gives a 2% improvement in the rate of costs to 31.6
Required solvency computed under the minimum statutory requirement and reported
at 8%
Increase in solvency ratio to 20.2, equivalent to 253% cover
Core capital ratio increased to 16.6 without participation in bank package II
Core earnings in the range DKK 200-400 million are expected for 2010
Financial review
The bank's pre-tax profit for 2009 was DKK 305 million, equivalent to a 17%
return on equity at the beginning of the year. Given the costs paid for bank
package I, the result is considered to be highly satisfactory.
The core earnings before write-downs were DKK 515 million against last year's
DKK 496 million, an increase of 4%. Write-downs totalled DKK 159 million, after
which the bank's core earnings are DKK 356 million, which is in the middle of
the range reported at the beginning of the year. The result corrected for bank
package I increases from DKK 346 million to DKK 412 million, an increase of 19%.
Only three quarters with costs for bank package I now remain.
Core income
Core earnings were 2% higher in 2009, increasing from DKK 735 million to DKK 753
million.
Net interest income increased by 7% from DKK 558 million to DKK 597 million,
which is attributable to an increasing interest margin and an improved
optimisation of liquidity with fewer funds tied up in the Central Bank of
Denmark.
Fees, commissions and foreign exchange income amounted to net DKK 133 million in
2009 against net DKK 141 million in 2008, a fall of 5%. This development is
attributable primarily to a lower volume of securities trading and lower
earnings from the bank's asset management activities.
Net fees and commissions and foreign exchange income were derived as follows:
In DKK million 2009 2008
Asset management 37 44
Securities
trading 19 25
Guarantee commissions 30 28
Foreign exchange
income 17 14
Payment handling 15 15
Loan fees 7 6
Other fees and
commissions 8 9
Total 133 141
Ordinary earnings from sector shares amounted to DKK 8 million in 2009 against
DKK 9 million last year. The earnings derive from DLR Kredit, BankInvest
Holding, Sparinvest Holding, Egnsinvest Holding, Letpension, PBS Holding,
Multidata Holding, Værdipapircentralen, PRAS and Bankdata, and are typically an
expression of the change in value in the companies.
Costs and depreciations
Total costs including depreciations on tangible assets amounted to DKK 238
million against last year's DKK 239 million, a fall of 0.2%.
The rate of costs was 0.8 of a percentage point lower in 2009 relative to last
year, equivalent to an improvement of 2%, and was computed at 31.6 for 2009,
which is still the lowest in Denmark. A low rate of costs is particularly
important in weak economic periods as it provides a high level of robustness in
the bank's results, which is also reflected in the calculation of the solvency
requirement of the bank.
Write-downs on loans
The write-downs on loans was negative by net DKK 159 million in 2009 against the
preceding year, where the item was negative by DKK 77 million. The net
write-downs for the year are equivalent to 1.0% of the average total loans,
write-downs, guarantees and provisions. The bank's customers appear to be coping
better with the recession than the average in Denmark, and the current level of
write-downs is considered highly satisfactory.
The bank's total account for write-downs and provisions amounted to DKK 467
million at the end of the year, equivalent to 3.1% of total loans and guarantees
at the end of the year. The actual write-downs on loans during this year remain
low at net DKK 48 million - compared with a net increase of DKK 111 million in
the account for write-downs and provisions during the year.
The portfolio of loans with suspended calculation of interest amounts to DKK 63
million, equivalent to 0.42% of the bank's total loans and guarantees at the end
of the year. The corresponding figure in 2008 in the account for write-downs was
DKK 356 million, equivalent to 2.2%, and loans with suspended calculation of
interest of 0.13%.
The bank's loans portfolio is generally strong. Given that the Danish economy
was in recession in 2009 and many assets fell in value while unemployment rose
quickly, the bank is satisfied with the conservative credit policy on the basis
of which it has always operated. The bank's losses are expected to continue to
lie at a relatively high level in the year to come as a natural component in the
economic cycle. The bank's assessment is, however, that its credit policy, the
diversified loans portfolio and the geographic location in central and western
Jutland will benefit the bank relative to the general trend for the entire
banking sector.
Core earnings
Core earnings
In DKK million 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
Total core
income 753 735 696 609 511 417 368 328 275 242
Total costs
etc. -238 -239 -234 -208 -190 -184 -163 -155 -133 -109
Core earnings before
write-downs on loans 515 496 462 401 321 233 205 173 142 133
Write-downs on
loans -159 -77 +11 +69 +5 +4 -10 +6 +6 0
Core earnings 356 419 473 470 326 237 195 179 148 133
Result for portfolio +56 -73 -18 +103 +35 +51 +106 +30 +7 +7
Profit before bank
package I etc. 412 346 455 573 361 288 301 209 155 140
Costs bank package I etc. -107 -28 0 0 0 0 0 0 0 0
Profit before tax 305 318 455 573 361 288 301 209 155 140
The core earnings before write-downs were DKK 515 million in 2009 against DKK
496 million in 2008, an increase of 4%. Write-downs totalled net DKK 159
million, after which the bank's core earnings are DKK 356 million, which is the
middle of the range of DKK 250-450 million reported at the beginning of the
year.
Result for portfolio
The result for the portfolio for 2009 was plus DKK 56 million, including funding
costs for the portfolio. The result comprised a profit on interest-bearing debts
and debt of DKK 50 million including funding costs, and a profit of DKK 6
million including funding costs on listed shares etc. All securities are
included at market value.
The bank's holding of shares etc. at the end of the year amounted to DKK 257
million, DKK 28 million of which was in listed shares etc. while DKK 229 million
was in sector shares etc. The bond portfolio at the end of the year amounted to
DKK 1,679 million, and by far the greater part of the portfolio consists of
triple A-rated Danish mortgage credit bonds.
The total interest rate risk at the end of the year, computed as the impact on
the result of a one percentage point change in the interest level, was 0.6% of
the bank's core capital after deductions.
The bank's total market risk within exposure to interest rate risk, exposure to
listed shares etc. and foreign exchange exposure remains at a low level. The
bank's risk of losses calculated on the basis of a Value at Risk model (computed
with a 10-day horizon and 99% probability) was as follows in 2009:
Value at Risk Risk relative to equity
Risk in DKK million end of year in
%
Highest risk of loss: 26.9 1.31%
Lowest risk of loss: 5.5 0.27%
Average risk
of loss: 17.5 0.85%
The bank's policy remains to keep the market risk at a low level.
Profit after tax
The profit after tax was DKK 232 million in 2009 against DKK 240 million in the
preceding year, a fall of 3%. Tax of DKK 73 million was calculated, giving an
effective tax rate of 23.9%. The profit after tax is equivalent to a 13% return
on equity at the beginning of the year.
The balance sheet
The bank's balance sheet at the end of the year amounted to DKK 17,928 million
against last year's DKK 18,002 million. Deposits increased by 23%, from DKK
9,073 million to DKK 11,187 million. The bank's loans were reduced by 6%, from
DKK 13,897 million to DKK 13,047 million. The reduction in loans was primarily
attributable to a reduction in major wholesale loans. There is still an
underlying growth in numbers of new customers from the branch network.
The bank's portfolio of guarantees at the end of 2009 was DKK 1,486 million
against DKK 2,386 million in 2008. The decrease is attributable primarily to
winding-up of foreign loans provided against guarantees.
Liquidity
The bank's liquidity is good, and the excess cover relative to the statutory
requirement is 205.6%. The bank's short-term funding with a term to maturity of
less than 12 months amounts to only DKK 1.1 billion, corresponding to DKK 4.1
billion in short-term money market placings in the Central Bank of Denmark,
Danish banks and liquid securities. The bank also had undrawn confirmed credit
facilities in foreign banks with a term to maturity of over 12 months to the
equivalent of a total of DKK 0.8 billion as backup facilities. The bank is thus
not dependent on the short-term money market.
In autumn 2009, the bank had early redeemed the greater part of funding which
was due in 2010, and the due dates for the bank's long-term funding are from the
second quarter of 2011 to the first quarter of 2023. Under bank package I, the
bank can buy a three-year state guarantee on issued bonds against payment of a
0.95% premium to the state. In December 2009 the bank was granted a framework of
DKK 5.0 billion in connection therewith, which can be used in the context of the
bank's EMTN programme if it is deemed to be advantageous for the bank to do so.
Rating
Ringkjøbing Landbobank was rated for the first time by the international credit
rating bureau Moody's Investors Service in May 2007. Since the start, the bank's
ratings have been:
Moody's ratings:
Financial Short-term Long-term
strenght liquidity liquidity
22 May 2007 C+ P-1 A1
End 2007 C+ P-1 A1
End 2008 C+ P-1 A1
8 September 2009 C+ P-1 A1
End 2009 C+ P-1 A1
The ratings were most recently confirmed in September 2009 with negative
outlook. The bank has been very satisfied with the maintenance of the ratings,
notwithstanding the gloomy outlook for the Danish economy. Ringkjøbing
Landbobank is thus the only Danish bank which was not downgraded in 2009.
Bank package I
Together with the rest of the financial sector in Denmark, Ringkjøbing
Landbobank is participating in bank package I, which runs until 30 September
2010, and which provides an unconditional guarantee by the Danish state for
Danish banks' deposits and senior debts. The guarantee premium in 2009 was DKK
56 million. The premium for the remaining period in 2010 will be DKK 44 million.
DKK 51 million was booked in 2009 as losses on financial institutions.
Bank package II
Given the bank's high level of capitalisation - a core capital ratio of 16.6 -
the bank decided in the second quarter of 2009 not to apply for an injection of
state hybrid core capital.
Before making this decision, the bank carried out a large number of stress tests
on its results and capitalisation under a range of economic scenarios. These
tests demonstrated a high degree of robustness in the bank's core income which,
in combination with a low expenditure, provides a high level of ability to
absorb losses on customers. The bank's business model in combination with its
very high capitalisation means that none of the tests which were carried out has
demonstrated that we need bank package II.
This conclusion was supported by the Central Bank of Denmarks' stress tests of
June 2009 on the 14 biggest banks in Denmark. If the bank's result and solvency
are tested up to the end of 2011 with the worst of the scenarios (long, deep
recession), Ringkjøbing Landbobank will still be well consolidated at the end of
2011 without bank
package II.
The Central Bank of Denmarks' latest update of their stress tests on the 14
largest Danish banks is from January 2010. If the worst case stress loss
scenarios for 2010 and 2011 are applied, Ringkjøbing Landbobank will still be
well consolidated, and the core capital ratio without allocation of dividend
will at the end of 2011 be at the same level as at the end of 2009.
Capital
The bank's equity at the beginning of 2009 was DKK 1,785 million. To this must
be added the proceeds from the sale of own shares and the profit for the year,
after which the equity at the end of 2009 was DKK 2,056 million.
The solvency ratio was computed at 20.2 and the core capital ratio at 16.6 at
the end of 2009.
Solvency cover 2009 2008 2007 2006 2005
Core capital ratio excl. hybrid core capital (%) 15.1 11.6 10.0 9.2 10.1
Core capital ratio (%) 16.6 13.0 11.2 10.4 11.6
Solvency ratio (%) 20.2 16.3 13.0 12.3 11.6
Individual solvency requirement (%) 8.0 8.0 8.0 8.0 8.0
Solvency cover 253% 204% 163% 154% 145%
Since 2007, the Danish financial sector has been subject to a requirement that a
bank's solvency ratio must be at least 8%, and that this solvency ratio must at
a minimum fulfil the required individual solvency, which can be higher than the
8%, as calculated internally by the bank. If the calculated required individual
solvency is less than 8%, a bank may never, however, be permitted to use any
such calculated lower figure. The calculated individual solvency requirement by
Ringkjøbing Landbobank is below 8% because of the bank's robust business model,
and it is thus reported at 8%. Further information on the computation of the
individual solvency requirement in Ringkjøbing Landbobank is available on the
bank's website at www.landbobanken.com.
Given the bank's expected result for 2010 and the subdued growth in
risk-weighted assets, both the core capital ratios and the solvency ratio are
expected to be at least at the same level at the end of 2010. The above
percentages mean that both the bank's current capitalisation and that expected
in 2010 make the bank one of the best capitalised banks in Denmark. This should
also be seen in light of the fact that the bank computes its risk-weighted
assets under the standardised approach, and that, unlike the situation with the
advanced methods, the bank cannot make extraordinary reductions in weightings,
however this also ensures that the capital weightings do not rise in periods
with a worsening in economic conditions.
There is a further requirement in connection with bank package I that the bank
does not pay dividends to its shareholders or buy back shares for a period of
two years. This means that a proposal for payment of a dividend cannot be made
until the 2011 general meeting.
The bank's share capital on 31 December 2009 was DKK 25.2 million in 5,040,000
nom. five kroner shares.
The bank's shares were listed on the NASDAQ OMX Copenhagen at 310 at the
beginning of the year. The share price has increased during 2009 to 609 at the
end of the year, which has given a return of 96% in 2009.
Notwithstanding the financial crisis, an investment in the bank's shares has
still grown to about eight times its value at the beginning of the millennium,
including the dividends paid during this period.
The bank's shares are included in the MidCap index on the NASDAQ OMX Copenhagen,
and the market value amounted to DKK 3.2 on 29 January 2010.
New business model opens the way for more new customers
The bank expects that the financial crisis will occasion changes in the
financial sector's current business model. The future will be predominantly
characterised by a lower level of risk, higher reserves and lower gearing of the
equity in the financial sector. Ringkjøbing Landbobank's balance sheet and cost
structure are pre-adapted to such a new world, and the adaptations which will be
made in the years to come will naturally provide the bank with a number of
openings on the market.
On this basis and the fact that the bank has both the liquidity and the capital
to support growth, the bank commenced several initiatives in the second half of
2009 to attract new customers. There is already a positive inflow of new private
customers and within the private banking segment with transfers of pensions and
securities customers. The marketing initiatives will be strengthened in 2010.
Expectations for earnings in 2010
The bank's core earnings for 2009 were DKK 356 million, which is in the middle
of the range of DKK 250-450 million reported at the beginning of the year.
Ringkøbing Landbobank has a market share of about 50% in that part of West
Jutland in which its old branches are located. The bank also has
well-established branches in Herning, Holstebro and Viborg which continue to
progress well. The bank's plan is to retain and develop this section of the
customer portfolio with good and competitive products, focusing on employee
skills and advising customers on the possibilities in a changeable financial
world. A continuing intake of new customers to the bank's branches in central
and western Jutland is expected in 2010 because of the long-term promotional
activities, the financial unrest and the consolidation in the sector.
The activities in the bank's distance customer department and niche concepts are
together expected to be at the same level, with focus on servicing the bank's
current customers and further developing the portfolio within wind turbine
financing, medical practitioners and affluent private customers.
The core income on this basis is expected to be at the same level in 2010. Costs
including depreciations on tangible assets are also expected to be the same in
2010, so that the core earnings before write-downs will be at the same level in
2010.
It is, however, difficult to predict the extent of the write-downs which will be
required in 2010 because of the uncertainty in the economy. The expectations for
the total core earnings are therefore broadly defined and thus expected to be in
the range DKK 200-400 million relative to the realised core earnings of DKK 356
million in 2009. To this must be added the result of the trading portfolio and
the costs of the national bank package I.
Events after the end of the financial year
No circumstances have occurred between the balance sheet date and todays date
that might distort the evaluation of the bank's annual report.
Capital structure
The bank's management has laid down overall objectives for the bank's capital.
The objective is thus to have a firmly founded capital structure compared with
both equivalent and larger banks. The objective is also to have sufficient
long-term capital for future growth, and to have sufficient capital to cover any
fluctuations in the risks undertaken by the bank.
The bank's capital ratios as of the end of December 2009 were as follows:
Capital ratios
Core capital ratio excl. hybrid core capital 15.1%
Core capital ratio 16.6%
Solvency ratio 20.2%
For the computation of the bank's core capital and capital base and the core
capital ratio excl. hybrid core capital, the core capital ratio and the solvency
ratio as of the end of 2009, please see the capital adequacy computation on page
45.
The above capitalisation make Ringkjøbing Landbobank one of the best capitalised
banks in the country. The bank's objective is also to retain this position in
2010. The bank expects and judges that this can be done on the basis of the
expected result for 2010 and a lower level of growth in the risk-weighted assets
for the year.
The bank joined in 2008 the government guarantee scheme (national bank package
I), which, among other things, means that under the provisions of the Act on
Financial Stability, no dividends may be paid and no new share buy-back
programmes may be established during the term of the government guarantee
scheme, which runs until 30 September 2010.
The maturity structure of the bank's external subordinated debt is presented in
the following overview.
Subordinated debt - maturity structure
Subordinated loan capital
• Nominal DKK 300 million taken up on 9 February 2006, eight-year term -
maturity 9 February 2014, with the option of early redemption from 9 February
2011, subject to approval by the Danish Financial Supervisory Authority.
• Nominal EUR 27 million taken up on 30 June 2008, thirteen-year term - maturity
30 June 2021, with the option of early redemption from 30 June 2018, subject to
approval by the Danish Financial Supervisory Authority.
Hybrid core capital
• Nominal DKK 200 million taken up on 2 March 2005, indefinite term, with the
option of early redemption from 2 March 2015, subject to approval by the Danish
Financial Supervisory Authority.
In connection with the implementation of new capital adequacy rules for the
calculation and computation of weighted items with credit and counterparty
risks, market risks and operational risks as of 1 January 2007, the bank already
adopted the new rules in 2007.
For further information on the methods used by the bank for the different types
of risk, please see following summary.
Capital adequacy computation
The bank has adopted the following methods regarding the capital adequacy
computation:
• Credit risk outside the trading portfolio Standardised Approach
• Counterparty risk Mark-to-Market Method
• Credit risk reducing method - financial collaterals Comprehensive Method
• Market risk Standardised Approach
• Operational risk Basic Indicator Method
As shown above the bank uses the standardised approach for computation of the
bank's credit risks (and thus the risk-weighted assets). This method uses fixed
solvency weightings. As a result of this method, the bank has not had the same
lowering of solvency weighting as those banks which are using the advanced
methods. On the other hand, the bank does not experience increasing solvency
weightings in periods of recession. Compared with the advanced methods, the
standardised approach thus results in a considerably higher robustness of the
computed capital ratios and in less volatility of risk-weighted assets.
Ringkjøbing Landbobank also focuses on the individual solvency requirements
computed internally in the bank and defined as the adequate capital base as a
percentage of the bank's risk-weighted assets.
The adequate capital base is assessed on the basis of an internal model and
computed as the amount required to cover the bank's current and future risks.
The computed adequate capital base is reassessed on a regular basis, and reports
to the Danish Financial Supervisory Authority are also made on a regular basis.
The report to the Danish Financial Supervisory Authority on the individual
solvency requirements has been set at 8% as the individual solvency requirement
computed by the bank is below 8%, but it cannot be less than the solvency
requirement of 8% provided in Section 124 (4) of the Danish Financial Business
Act. Further information on the computation of the individual solvency
requirement in Ringkjøbing Landbobank is available on the bank's website at
www.landbobanken.com.
Although the bank is subject to the minimum individual solvency requirement of
8%, the bank still has a significant level of excess solvency cover as shown in
the summary below.
Solvency cover
2009 2008 2007 2006 2005
Solvency ratio (%) 20.2 16.3 13.0 12.3 11.6
Individual solvency requirement (%) 8.0 8.0 8.0 8.0 8.0
Excess solvency (%) 12.2 8.3 5.0 4.3 3.6
Solvency cover 253% 204% 163% 154% 145%
It can be concluded that Ringkjøbing Landbobank has been meeting both external
and internal capital requirements throughout 2009, and that the actual capital
base has been well above the adequate capital base throughout the year.
Risks and risk management
Ringkjøbing Landbobank is exposed to various types of risk in connection with
its operations: credit risk, market risk, liquidity risk and operational risk.
The credit risk is defined as the risk that payment obligations owed to the bank
are judged not to be collectable because of either lack of ability or lack of
will to pay at the agreed time.
The market risk is defined as the risk that the market value of the bank's
assets and liabilities will change because of changes in market conditions. The
bank's total market risk is comprised of interest rate risk, foreign exchange
risk, share risk and property risk.
The liquidity risk is defined as the risk that the bank's payment obligations
will not be able to be honoured under the bank's liquidity preparedness.
And the operational risk is defined as the risk of direct or indirect financial
losses because of faults in internal processes and systems, human errors or
external events.
The bank's general policy with respect to assumption of risks is that the bank
only assumes risks which are in accordance with the business principles under
which the bank is operated, and which the bank possesses the competence to
manage.
The general policy for management and monitoring of the various risks is that
there must be both central control and central monitoring as well as reporting
to the bank's board of managers and board of directors. The management function
and the control and reporting functions are separate, and the tasks in question
are performed by different departments in the bank's central staff functions.
When the Basle II rules on capital adequacy were implemented in Danish law,
Danish banks were also required to disclose certain information relating to
risks (commonly also called pillar 3 information). Some of the required
information on risks is given in this annual report, but the reader in referred
to the following address for a complete overview of the information which the
bank is required to disclose: www.landbobanken.com. It should be noted that the
information in this annual report has been audited.
Further information on the various types of risk is provided below.
Credit risks loans
Ringkjøbing Landbobank has grown and developed over the last 10-15 years to the
point where it is now a regional bank in central and western Jutland and a niche
bank in selected areas.
This development has been a part of the bank's strategy, and the bank's
management notes with satisfaction that the bank has achieved an appreciably
diversified loans portfolio, including a significant spread in terms of both
sector and geography.
Ringkjøbing Landbobank assumes credit risks on the basis of a policy, the
objectives of which are to ensure a balance between risks assumed and the return
gained by the bank, the maintenance of losses at an acceptable level relative to
the Danish financial sector, and the accommodation of actual losses within the
bank's results even in extreme situations.
The gearing of loans relative to the capital base in the bank is approx. five,
and the bank's objective is realisation of the results with a lower or the same
credit gearing as that of Denmark's major banks.
Viewed historically, the bank has always had a healthy and conservative credit
policy, and future focus will also be on an effective management and monitoring
of the bank's total loans portfolio via its central credit department.
Apart from the normal credit follow-up and management in the bank's central
credit department, where there are ongoing reviews and following up on all major
engagements, the bank made an extraordinary review in 2009 of all engagements
related to agriculture. The bank takes a cautious attitude in the assessment of
the agricultural engagements and has made the requisite write-downs on the basis
of this attitude.
The bank's central credit department has also made an extraordinary review of
the bank's engagements with small and medium-sized enterprises. This review has
not led to material changes in the need for write-downs.
Actual net losses
Actual net losses
In DKK 1,000 Loans with Write-downs
Actual suspended on loans and Percentage Percentage
Actual net losses calculation provisions for Total loans and loss before loss
after
Year net losses after interest of interest guarantees guarantees
etc. interest *) interest *)
1987 -6,696 304 10,544 75,000 1,358,464 -0.49% 0.02%
1988 -14,205 -5,205 4,522 93,900 1,408,830 -1.01% -0.37%
1989 -18,302 -5,302 13,107 117,270 1,468,206 -1.25% -0.36%
1990 -15,867 -1,867 47,182 147,800 1,555,647 -1.02% -0.12%
1991 -11,429 3,571 47,626 170,000 1,805,506 -0.63% 0.20%
1992 -32,928 -14,928 43,325 177,900 1,933,081 -1.70% -0.77%
1993 -27,875 -6,875 30,964 208,700 1,893,098 -1.47% -0.36%
1994 -14,554 4,446 33,889 223,500 1,938,572 -0.75% 0.23%
1995 -10,806 10,194 27,292 238,800 2,058,561 -0.52% 0.50%
1996 -19,802 -1,802 18,404 233,400 2,588,028 -0.77% -0.07%
1997 -31,412 -12,412 39,846 236,600 3,261,429 -0.96% -0.38%
1998 -2,914 18,086 4,905 263,600 3,752,602 -0.08% 0.48%
1999 -442 21,558 18,595 290,450 5,148,190 -0.01% 0.42%
2000 -405 27,595 12,843 316,750 5,377,749 -0.01% 0.51%
2001 -8,038 20,962 14,222 331,950 6,113,523 -0.13% 0.34%
2002 -8,470 20,530 26,290 382,850 7,655,112 -0.11% 0.27%
2003 -22,741 2,259 23,412 394,850 8,497,124 -0.27% 0.03%
2004 -14,554 9,446 18,875 404,855 11,523,143 -0.13% 0.08%
2005 -22,908 192 35,796 357,000 15,522,264 -0.15% 0.00%
2006 -13,531 7,028 20,578 295,000 17,858,787 -0.08% 0.04%
2007 -15,264 4,888 13,190 289,097 19,227,573 -0.08% 0.03%
2008 -34,789 -10,237 22,110 356,083 16,475,975 -0.21% -0.06%
2009 -73,767 -47,658 62,649 467,025 14,890,027 -0.50% -0.32%
Average 1987-2009 -0.54% 0.01%
20-year average (1990-2009) -0.48% 0.05%
10-year average (2000-2009) -0.17% 0.09%
*) Actual net losses relative to total loans, guarantees, write-downs on loans
and provisions for guarantees.
Explanation: The percentage losses were computed as the actual net losses for
the year before and after interest on the written-down part of loans as a
percentage of total loans, guarantees and write-downs on loans and provisions
for guarantees. A minus sign before a percentage loss indicates a loss, while a
positive percentage loss means that the interest on the written-down part of
loans was greater than the actual net losses for the year. All the above figures
are exclusive amounts regarding the national bank package I etc.
The preceding table documents the bank's healthy credit policy. As will be
evident, the bank's average percentage loss after interest over the last 20
years (1990-2009) was +0.05%, with -0.77% (1992) the highest percentage loss,
and +0.51% (2000) the most positive figure. The average percentage loss before
interest over the last 20 years is -0.48%, with -1.70% (1992) the highest
percentage loss and -0.01% (1999 and 2000) the lowest percentage loss. The
average percentage loss over the last 10 years (2000-2009) is positive at
+0.09%, and the average percentage loss before interest is -0.17%.
The bank's regional operations are operated partly via branches in the bank's
original core area in West Jutland and partly via branches in the three big
cities of Herning, Holstebro and Viborg in central and western Jutland.
The most important niches within the bank's niche area are the financing of
medical practitioners' purchase of private practices, a private banking
department covering affluent private customers and the financing of securities,
and loans to finance wind turbines. The financing of wind turbines is made for
final Danish investors' purchases of wind turbines erected in Denmark, Germany
and France.
An important common denominator in the niche loans is that the bank aims to gain
a first priority security, and thus satisfactory security in the pledged assets.
This is an important part of the bank's business philosophy.
Concentration of credit
In recent years the bank has focused on reducing the concentration of its credit
in order to further reduce the bank's credit risk.
As is evident from the summary below, this focus has resulted in a reduction in
total large exposures over the last five years from 73.3% in 2005 to 0.0% in
2009.
Concentration of credit
2009 2008 2007 2006 2005
Total large exposures 0.0% 12.1% 38.3% 116.1% 73.3%
Explanation: The Danish Financial Supervisory Authority key figure »Total large
exposures«.
Geographic spread of the bank's loans and guarantee portfolio
As will be evident from the figure, a significant geographic spread of the
bank's loans and guarantee portfolio has been gained in terms of both the
regional part and the niche part of the bank.
Loans made by the bank's niche department have also helped to ensure a
significant diversification in the bank's loans portfolio so that the portfolio
is not dependent on economic conditions to the same extent as if the bank were
operated exclusively as a regional bank.
Credit risk on financial counterparties
In connection with the bank's trading in securities, foreign currency and
derivative financial instruments, the bank's loans to other banks, the bank's
bond portfolio and its arranging of payments exposures incurs in relation to
financial counterparties and with that a credit risk, including also a
settlement risk. The settlement risk is the risk that the bank will not receive
payment or securities in connection with the settling of transactions in
securities and/or currency trades which correspond to the securities and/or
payments which the bank has made and provided.
The bank's board of directors grants lines of credit to financial counterparties
and for settlement risks. When granting lines of credit, account is taken of the
individual counterparty's risk profile, rating, size and financial
circumstances, and these lines of credit are regularly checked.
The bank's policy with respect to credit risk on financial counterparties is to
hold the credit risk at a balanced level relative to the bank's size and in
favour of credit institu-tions of good quality.
Claims on central banks and credit institutions
One of the two major items with respect to the credit risk on financial
counterparties is claims on central banks and credit institutions. The bank has
only assumed moderate risks on this item, and of the total claims on central
banks and credit institutions, 96% is thus due before 30 September 2010, and
thus before expiration of the government guarantee under the national bank
package I. Of the remaining 4%, 68% is with a credit institution with a rating
of A1 (Moody's rating).
The bond portfolio
The second of the two major items concerning the credit risk on financial
counterparties is the bank's bond portfolio.
As will be evident from the figure below, neither has the bank assumed
significant risks on this item, and by far the greater part of the bond
portfolio thus consists of AAA-rated Danish mortgage credit bonds.
Market risks
The bank's basic policy with respect to market risks is that the bank wishes to
keep such risks at a relatively low level.
The bank has determined a concrete framework for each type of market risk, and
the risk assessment includes the objective that there must be a sensible and
balanced relation-ship between risk and return.
The bank uses derivatives to cover and manage the various market risk types to
the extent to which the bank wishes to reduce the extent of or eliminate the
market risks which the bank has assumed.
To supplement the more traditional measures of market risk, the bank developed a
mathematical/statistical model during 2007 to compute market risks. The model is
used to compute Value at Risk (VaR), which is regularly reported to the bank's
management. VaR is a measure of risk which describes the bank's risk under
normal market conditions.
An isolated VaR figure is calculated for interest rate, foreign exchange and
listed share positions, and a total VaR figure is also calculated for all of the
bank's market risks consisting of interest rate, foreign exchange and listed
share positions. This possibility of calculating a total VaR figure for the
bank's market risks is one of the major advantages of the VaR model compared
with more traditional measures of risk. The reader is referred to the following
section »Value at Risk« for the specific results etc. under the VaR model.
Interest rate risk
The bank's loan and deposit business and accounts with credit institutions are
mostly entered into on a variable basis. The bank's fixed interest financial
assets and liabilities are continuously monitored, and hedging transactions are
entered into as needed with a consequent reduction of the interest rate risk.
Ringkjøbing Landbobank's policy is to maintain a low interest rate risk, and the
bank thus does not assume high levels of exposure to movements in the interest
level.
The bank's interest rate risk is monitored and managed daily by the bank's
securities department and the bank's service and support department controls
maintenance of the limits for assumption of interest rate risk, and reports to
the bank's board of managers and board of directors.
As will be evident from the figure, the bank has maintained a low interest risk
over the last five years in accordance with the bank's policy for this type of
risk.
Foreign exchange risk
The bank's principal currency is the Danish krone, but the bank has also entered
into loan and deposit arrangements in other currencies.
The bank's policy is to maintain a minimal foreign exchange risk, and the bank
thus reduces ongoing positions in foreign currencies via hedging.
The bank's positions in foreign exchange are managed daily by the foreign
department, while the bank's service and support department monitors maintenance
of lines and reports to the board of directors and board of managers.
As in previous years, the bank's foreign exchange risk in 2009 was at an
insignificant level.
Share risk
The bank co-owns various sector companies via equity interests in DLR Kredit
A/S, PRAS A/S, BankInvest Holding A/S, Sparinvest Holding A/S, Egnsinvest
Holding A/S, Letpension A/S, PBS Holding A/S, Multidata Holding A/S,
Værdipapircentralen A/S and Bankdata. These holdings are comparable with the
wholly owned subsidiaries of major banks, and the equity interests are thus not
deemed to be a part of the bank's share risk. The bank also holds a small
portfolio of listed shares.
The bank's policy is to maintain a low share risk. The daily management of the
bank's share portfolio is undertaken by the securities department, while
monitoring of the lines and reporting to the board of managers and the board of
directors are performed by the service and support department.
The bank's holding of listed shares etc. amounted to DKK 28.0 million at the end
of 2009 against DKK 32.8 million at the end of 2008. The holding of sector
shares and other holdings was DKK 228.7 million at the end of 2009 against DKK
214.6 million at the end of 2008.
As will be evident from the figure below, the bank's share exposure (excluding
sector shares and others holdings) as a percentage of the shareholders' equity
has been modest, thus documenting the bank's objective of maintaining a low
share risk.
Property risk
The bank primarily wishes to possess only properties for use in banking
operations, and also to maintain minimal property risks.
The bank's portfolio of both domicile and investment properties is thus quite
modest relative to the bank's balance sheet total.
Value at Risk
The bank's total Value at Risk at the end of 2009 was DKK 12.0 million. This sum
is an expression of the maximum loss in a statistical perspective which the
bank could risk losing with 99% probability if all market positions were
retained unchanged for a period of 10 days.
VaR summary
In DKK million
Average Min. Max. End of year
Risk VaR figure VaR figure* VaR figure* VaR
figure
Interest 17.4 4.8 27.8 11.6
Foreign currency 0.5 0.2 0.3
0.1
Share 5.3 3.2 5.9 6.2
Diversification -5.7 -2.7 -7.1 -5.9
Total
VaR figure 17.5 5.5 26.9 12.0
* Determined by the total VaR figure
As indicated in the table, the bank's total VaR throughout 2009 varied from DKK
5.5 million to DKK 26.9 million. The average VaR figure was DKK 17.5 million.
This figure is moderately higher than in 2008, primarily because the bank had a
higher interest rate risk throughout much of 2009 than in 2008. The reader is
referred to note 42 on page 66 for the VaR figures for the years 2007-2009.
The model in brief
The model is a parametric VaR model based on a historical analysis of the
covariation (correlations) between the prices of various financial assets etc.,
including different share indexes, various official interest rates and interest
swap rates and different exchange rate indices. By combining the historical
knowledge of the covariation on the financial markets with the bank's current
positions, the model can calculate a risk of loss for a following ten-day
period. All the bank's interest rate positions, foreign currency positions and
listed share positions etc. are included in the calculation, while positions in
sector shares and unlisted capital shares are not included. The model used in
2009 was unchanged relative to the model adjusted in 2008.
Back tests and stress tests
So-called »back tests« are made to document that the VaR model provides a
sensible picture of the bank's risk. The test compares the calculated loss under
the model with the losses which the bank would actually have suffered if the
positions in question have been retained for a ten-day period. A number of
stress tests are also carried out to indicate the bank's risk of loss in
abnormal market situations. Back tests of the model were performed throughout
the year with satisfactory results.
Liquidity risk
In general with respect to the bank's liquidity management, it is the bank's
objective not to have uncovered net funding requirements and not to be dependent
on the short-term money market. It is thus the bank's objective that it must not
be affected by a total shutdown of the money market for a period of 12 months.
The bank's loan portfolio is funded primarily via four different sources, namely
the bank's deposits, by taking up long-term loans with other credit
institutions, via issued bonds, and finally via the subordinated debts taken up
by the bank and the bank's equity.
The bank's deposit base consists primarily of core deposits, and the bank does
not focus on the receipt of short-term deposits of a more volatile nature.
Ringkjøbing Landbobank has also entered into a number of long-term bilateral
loan agreements with various European banks. It should, however, be noted that
the funding situation is such that the bank is not dependent on the institutions
in a single country or on individual institutions.
Finally the bank has also issued bonds in Norway during 2007 and 2008 to a total
for the two years of NOK 600 million.
As will be evident from the above table, the bank's short-term funding (term to
maturity under one year) is supported by certificates of deposit with the
Central Bank of Denmark, short-term loans to other Danish banks, the bank's
holding of liquid securities, and via agreements on committed credit facilities
with other banks. The committed credit facilities have been entered into for
long-term periods and are not normally used in everyday business. The liquidity
excess cover as of the end of 2009 is DKK 3.7 billion, and the equivalent
figures at the end of 2008 and 2007 were DKK 2.2 billion respectively DKK 1.8
billion.
In addition to the above liquidity excess cover, the bank was granted a credit
facility with the Central Bank of Denmark in October 2008, based on excess
statutory solvency. The facility is DKK 800 million and will run until 30
September 2010. The facility has not been used since it was granted in 2008.
The Central Bank of Denmark also introduced a temporary expansion of the basis
for borrowing in 2008. The rules for this temporary expansion were subsequently
adjusted such that it is currently possible to include listed and certain
unlisted shares and loan bills and bank bonds issued by Danish banks under the
scheme. The temporary expansion of the basis for borrowing applies until 30
September 2010 for certain of the assets and until 30 December 2013 for other
assets.
The bank established an EUR 2 billion EMTN bond programme at the end of 2008.
The programme was transferred to the London Stock Exchange in December 2009. The
intention is still that the programme will be included in the bank's future
funding alternatives in order to ensure adequate diversification in this area.
The programme was supplemented in December 2009 with the possibility of issuing
guaranteed bonds under the Danish state guarantee scheme until the end of 2013.
In December 2009 the bank thus gained approval for and entered into an agreement
on a framework of DKK 5 billion with the Financial Stability Company on the
possibility of issuing bonds guaranteed by the state.
The bank has also entered into formalised agreements on the provision of
mortgage credit loans by issuing specially covered bonds (SDOs) and ordinary
mortgage loans via Nykredit/Totalkredit and DLR Kredit to both business and
private customers.
Operational risk
The new capital adequacy rules came into force on 1 January 2007. These rules
require among other things the banks to quantify and include an amount for
operational risks when computing their capital adequacy.
The bank uses the so-called basic indicator method, where calculation of an
average of the last three financial years' net income is used to quantify an
amount which is added to the risk-weighted assets in order to cover the bank's
operational risks.
The bank regularly produces reports on the losses and events which are judged to
be attributable to operational risks. An assessment is made on the basis of the
reports of whether procedures etc. can be adjusted and improved in order to
avoid or minimise any operational risks, and the bank's procedures are also
regularly reviewed and assessed by the bank's internal and external auditors.
An important area in assessment of the bank's operational risks is IT. The
bank's IT organisation and the management regularly assess IT security,
including with respect to prepared emergency plans, and requirements and levels
for accessibility and stability for the IT systems and data used by the bank are
then set. These requirements apply to both the bank's internal IT organisation
and its external IT supplier, Bankdata, which the bank owns together with a
number of other banks.
Corporate governance
Corporate governance in Ringkjøbing Landbobank concerns the objectives which
govern the bank's management and the general principles and structures governing
the interplay with the bank's primary interested parties: the bank's
shareholders and customers, the bank's management and employees and the local
areas in which the bank has branches.
Since 2002, the bank's management has acted positively towards the published
recommendations for corporate governance, and the bank's attitude to corporate
governance has been minuted in the annual reports since then. From 2006 the
bank's management has taken a position on the various recommendations on the
basis of the »follow or explain« principle (introduced in the 2005
recommendations for corporate governance).
In preparing the 2009 annual report, the bank's boards of directors and managers
have reassessed the bank's attitude to the individual recommendations, a
detailed statement on which is provided on the bank's website at
www.landbobanken.com. The statement on corporate governance required under
applicable accounting rules in the management report is thus published on the
bank's website (in accordance with permit from the Danish Financial Supervisory
Authority). This statement also indicates how the bank's management has acted on
the supplementary recommendations for corporate governance etc. issued by The
Danish Bankers Association in December 2008.
The bank's management supports the efforts in the area of corporate governance,
and the bank's board of directors and board of managers have elected to adopt
almost all of the recommendations in this area. In some few individual areas,
the bank's management has, however, elected either not to follow the
recommendations or only to follow them in part, in connection with which the
bank advises that
• the periods of election of the shareholders' committee and the board of
directors are found to be appropriate, and
• it is not found to be relevant for assessment of the bank to publish
information on individual persons' remuneration etc.
Corporate social responsibility
From 2009, listed banks are required by law to provide an account of corporate
their social responsibilities when presenting their annual reports. This account
must either contain information on existing policies within the area of
corporate social responsibility and the implementation and effectiveness of
these policies, or a statement that the bank has no corporate social
responsibility policy.
Ringkjøbing Landbobank takes a positive attitude to the new statutory
requirement. The bank has not previously had an actual formulated policy for
corporate social responsibility, but as a local and regional bank, Ringkjøbing
Landbobank has always been strongly anchored throughout its long history in the
local communities where it is represented, and the bank has seen it as an
entirely natural part of its business base to support local development. The
bank has called this »local commitment«, but in reality the bank has been
showing social responsibility since long before the concept became fashionable.
For many years, the bank has also, via management's implementation of and
attitude to the recommendations for corporate governance, focused on those
matters which govern the interplay with the bank's primary interested parties,
namely its shareholders and customers, its management and employees and the
local areas in which the bank's branches are situated.
With the statutory requirement and social developments in general, the bank's
management has now found it natural to formulate a formal policy in the area.
And it has been just as natural to commence with the existing values and
activities in the area.
Ringkjøbing Landbobank is a local and regional bank which, with due respect to
social responsibility, is operated from commercial objectives.
For the bank, it is a matter of being an active partner in the local and
regional associations and sporting life in the towns and areas where the bank
has branches. The bank does this via numerous sponsorships both at the elite
level, but especially at the broad general level so that as many people as
possible benefit from the support which the bank provides to various
associations every year.
The bank's local and regional commitment is a cornerstone in our business
philosophy and one of the reasons why the bank has been able to retain its
position as a local and locally known partner to many of the area's businesses
and private families, but also for the bank's customers throughout Denmark.
With respect to its employees, the bank also takes its social responsibility
seriously. Initiatives within employee skills development and training as well
as activities which promote health and wellbeing are some of the reasons why
Ringkjøbing Landbobank is considered an attractive place to work. Over the years
the bank has thus had many employees who have celebrated both their twenty-fifth
and their fortieth anniversaries with the bank.
Ringkjøbing Landbobank is also focused on the environment. The bank thus tries
to limit the energy consumption associated with its operations, and there is
focus on environmentally correct recycling of the waste products which the
bank's operations generate.
A common feature of the bank's initiatives within the area of social
responsibility is that they must help to emphasise Ringkjøbing Landbobank's
position as an ethical and sustainable company to the bank's interested parties
- to its shareholders, customers and employees and to the surrounding world in
general.
The bank's website, www.landbobanken.com, provides a more detailed account of
the bank's corporate social responsibility, including the policies in this area.
Managerial matters
Payment policy
The remuneration policy for the boards of directors and managers of Ringkjøbing
Landbobank is that the bank's management is paid remuneration which is both in
line with the market and reflects the management's achievements for the bank. It
has also been decided that the remuneration paid to the boards of directors and
managers should be a fixed amount without any form of incentive component in
their remuneration.
Evaluation etc.
The board of directors makes an annual evaluation of its work and the working
relation-ship between the board of directors and the board of managers. The
evaluation is made by each member of the board of directors filling in writing
an assessment form, after which the completed forms are discussed by the bank's
board of directors and board of managers.
With respect to the frequency of meetings of the board of directors, the board
holds 10-12 meetings a year.
Supplementary information on members of the board of directors and the board of
managers, including other managerial activities
Reference is made to page 77 and 78 of this annual report for supplementary
information on the members of the bank's board of directors and board of
managers, including information on their other managerial activities.
Information on listed companies
As required under Section 133a of the Executive Order on Financial Reports for
Credit Institutions etc., we advise as follows:
The bank's share capital on 31 December 2009 was DKK 25.2 million in 5,040,000
nom. five kroner shares.
The bank has only one share class and the entire share capital, and thus all
shares, are listed on the NASDAQ OMX Copenhagen. There is no limitation on the
shares' negotiability.
ATP, Hillerød, has advised that it owns more than 5% of the bank's share
capital.
The right to vote is exercised as follows:
Each share holding up to and
including nom. DKK 500 carries one vote and shareholdings thereover carry a
total of two votes, which is the highest number of votes a shareholder may cast
when the shares are listed in the bank's share register or when the shareholder
has reported and documented his or her right. Apart from own votes, no
shareholder may at present cast more than a total of two votes as proxy for
others. In the case of shares acquired by transfer, no voting right may be
exercised at a notified general meeting if the shares are not listed in the
share register or a request for listing has not been made with documentation for
the acquisition.
Members (elected by shareholders) of the bank's board of directors are elected
by and among the members of the bank's shareholders' committee.
The following rule applies to changes to the bank's articles of association:
Any
decision to change the articles of association is only valid if the proposal is
adopted by at least two thirds of both votes cast and of the share capital with
voting rights represented at the meeting.
The board of directors possesses the following powers under the articles of
association with respect to the possibility of issuing shares:
Following
consultation with the shareholders' committee, the board is authorised to
increase the share capital by nom. DKK 14,210,980 to nom. DKK 39,410,980 in one
or more increases. This authorisation is currently valid until 25 February 2014.
The board of directors possesses the following powers with respect to the
possibility of acquiring own shares:
The bank's annual general meeting held the
25 February 2009 has authorised the board of directors to permit the bank to
acquire own shares within current legislation until the next ordinary general
meeting to a total nominal value of 10% of the bank's share capital such that
the shares can be acquired at current list price +/- 10%. As the bank joined the
state guarantee scheme (national bank package I, which expires on 30 September
2010) in 2008, the acquisition of own shares must be carried out in accordance
with the rules applying to national bank package I (cf. the provisions in the
Act on Financial Stability), and joining bank package I also means that new
share buy-back programmes may not be established during the term of the scheme.
Management's statement
The board of directors and the board of managers have today reviewed and
approved the annual report of Ringkjøbing Landbobank A/S for the financial year
1 January - 31 December 2009, which comprises the management report, profit and
loss account, core earnings, balance sheet, statement of shareholders´ equity,
capital adequacy computation, cash flow statement, accounting policies, notes to
the annual report and management's statement.
The annual report was prepared in accordance with the provisions of the Danish
Financial Business Act and additional Danish disclosure requirements for annual
reports of listed financial institutions. We consider the accounting policies to
be appropriate and the accounting estimates which have been made to be
responsible, so that the annual accounts provides a true and fair picture of the
bank's assets, liabilities and equity and financial position as of 31 December
2009 and of the result of the bank's financial performance and cash flows for
the financial year 1 January - 31 December 2009. We also believe that the
management report etc. provides a true and fair statement of the development in
the bank's activities and financial circumstances, and a description of the most
significant risks and uncertainties which could affect the bank.
The annual report will be submitted to the annual general meeting for approval.
Ringkøbing, the 3 February, 2010
Board of managers:
Bent Naur John Bull Fisker
Executive General Manager General Manager
Ringkøbing, the 3 February, 2010
Board of directors:
Jens Lykke Kjeldsen Gravers Kjærgaard
Chairman Deputy Chairman
Gert Asmussen Keld Hansen
Bo Bennedsgaard Søren Nielsen
Employee Representative Employee Representative
The internal auditors report
To the shareholders of Ringkjøbing Landbobank A/S
I have audited the annual accounts and the management report of Ringkjøbing
Landbobank A/S for the financial year 1 January - 31 December 2009. The annual
accounts comprises the profit and loss account, core earnings, balance sheet,
statement of shareholders´ equity, capital adequacy computation, cash flow
statement, accounting policies and notes to the annual report. The annual
accounts are prepared in accordance with the Danish Financial Business Act. The
management report is prepared in accordance with Danish disclosure requirements
of listed financial institutions.
Basis of opinion
The audit was conducted in accordance with the Executive Order of the Danish
Financial Supervisory Authority on Auditing Financial Undertakings etc. and the
Danish Standards on Auditing. Those standards require that the audit is planned
and performed to obtain reasonable assurance whether the annual accounts and the
management report are free from material misstatement.
The audit has been performed in accordance with the division of duties agreed
with the external auditors and has included an assessment of procedures and
internal controls established, including the risk management organised by the
management relevant to the entity's reporting processes and significant business
risks. Based on materiality and risk, I have examined, on a test basis, the
basis of amounts and other disclosures in the annual accounts and the management
report, including evidence supporting amounts and disclosures in the annual
accounts and the management report. Furthermore, the audit has included
evaluating the appropriateness of the accounting policies applied by the
management and the reasonableness of the accounting estimates made by the
management, as well as evaluating the overall presentation of the annual
accounts and the management report.
I have participated in the audit of risk related and other material areas and I
believe that the audit evidence I have obtained is sufficient and appropriate to
provide a basis for my audit opinion.
My audit has not resulted in any qualification.
Opinion
In my opinion, the procedures and internal controls established, including the
risk management organised by the management relevant to the bank's reporting
processes and significant business risks, are working satisfactorily.
Furthermore, in my opinion, the annual accounts gives a true and fair view of
the bank's assets, liabilities and equity and financial position at 31 December
2009 and of its financial performance and its cash flows for the financial year
1 January - 31 December 2009 in accordance with the Danish Finansiel Business
Act and that the management report contains a true and fair statement of
developments in the bank's activities and financial circumstances and a
description of the most important risks and uncertainties which could affect the
bank in accordance with Danish disclosure requirements of listed financial
companies.
Ringkøbing, the 3 February, 2010
Henrik Haugaard
Internal Audit Manager
The independent auditors report
To the shareholders of Ringkjøbing Landbobank A/S
We have audited the annual accounts and the management report of Ringkjøbing
Landbobank A/S for the financial year 1 January - 31 December 2009. The annual
accounts comprises the profit and loss account, core earnings, balance sheet,
statement of shareholders´ equity, capital adequacy computation, cash flow
statement, accounting policies and notes to the annual report. The annual
accounts are prepared in accordance with the Danish Financial Business Act. The
management report is prepared in accordance with Danish disclosure requirements
of listed financial institutions.
Management's responsibility for the annual report
The management is responsible for the preparation and presentation which provide
a true and fair picture of the annual accounts in accordance with the Danish
Financial Business Act. This responsibility includes designing, implementing and
maintaining internal control relevant to the preparation and presentation of
annual accounts which give a true and fair picture without material
misstatement, irrespective of whether the misstatement is attributable to fraud
or error. The responsibility also includes selecting and using appropriate
accounting policies; and the making of accounting estimates that are reasonable
in the circumstances. In addition to this the management is also responsible for
preparing a management report which contains a true and fair statement in
accordance with Danish disclosure requirements of listed financial institutions.
Auditors' responsibility
Our responsibility is to express an opinion on the annual accounts and the
management report based on our audit. We conducted our audit in accordance with
Danish Standards on Auditing. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable
assurance whether the annual accounts and the management report are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the annual accounts and the management report. The
procedures selected depend on the auditors' judgment, including the assessment
of the risks of material misstatement of the annual accounts and the management
report, irrespective of whether the misstatement is attributable to fraud or
error. In making those risk assessments, the auditors consider internal control
relevant to the bank's preparation and presentation of the annual accounts which
provide a true and fair picture and of preparation of the management report
which contains a true and fair statement in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the bank's internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the management, as well as
evaluating the overall presentation of the annual accounts and the management
report.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Our audit did not result in any qualification.
The independent auditors report - continued
Opinion
In our opinion, the annual accounts provide a true and fair picture of the
bank's assets, liabilities and equity and financial position at 31 December 2009
and of the results of its financial performance and its cash flows for the
financial year 1 January - 31 December 2009 in accordance with the Danish
Financial Business Act. We further believe that the management report contains a
true and fair statement of developments in the bank's activities and financial
circumstances and a description of the most important risks and uncertainties
which could affect the bank in accordance with Danish disclosure requirements of
listed financial companies.
Ringkøbing, the 3 February, 2010
PricewaterhouseCoopers
Statsautoriseret Revisionsaktieselskab
Kim Rune Brarup Ole Blinkenberg
State Authorized State Authorized
Public
Accountant Public Accountant
Note 2009 2008
no. DKK 1,000 DKK 1,000
1 Interest receivable 993,756 1,221,165
2 Interest payable 377,728 669,149
Net income from interest 616,028 552,016
Interest-like commission income 9,266 20,690
3 Dividend on capital shares etc. 3,243 1,491
4 Income from fees and commissions 140,362 155,428
4 Fees and commissions paid 23,823 28,464
Net income from interest and fees 745,076 701,161
5 Value adjustments +58,130 -43,577
Other operating income 5,351 4,863
6,7,9 Staff and administration costs 235,604 236,056
10 Amortisations, depreciations and write-downs on
intangible and tangible
assets 2,424 2,420
Other operating costs
Miscellaneous other operating costs 56 86
Guarantee commission, national bank package I 55,785 16,148
Write-downs on loans and debtors etc.
14 Write-downs on loans and other debtors -158,600 -77,223
15 Write-downs on national bank package I etc. -51,173 -12,016
Result of capital shares in associated companies -59 -5
Profit before tax 304,856 318,493
11 Tax 72,775 78,495
Profit for the financial year 232,081 239,998
2009 2008
DKK 1,000 DKK 1,000
Profit for the financial year 232,081 239,998
Total amount available for distribution 232,081 239,998
Dividend 0 0
Other purposes 0 0
Transferred to reserve for net revaluation
under the intrinsic value
method -26 -5
Appropriation to own funds 232,107 240,003
Total distribution of the amount available 232,081 239,998
2009 2008
DKK 1,000 DKK 1,000
Net income from interest 596,828 558,365
Interest-like commission income 9,266 20,690
Net income from fees and provisions excl. commission 97,751 101,678
Income from sector shares 8,448 9,074
Foreign exchange income 16,515 13,670
Other operating income etc. 5,351 6,513
Total core income excl. trade income 734,159 709,990
Trade income 18,788 25,286
Total core income 752,947 735,276
Staff and administration costs 235,604 236,056
Amortisations, depreciations and write-downs on intangible
and tangible
assets 2,424 2,420
Other operating costs 56 86
Total costs etc. 238,084 238,562
Core earnings before write-downs on loans 514,863 496,714
Write-downs on loans and other debtors -158,600 -77,223
Core earnings 356,263 419,491
Result for portfolio +55,551 -72,834
Profit before national bank package I etc. 411,814 346,657
Costs national bank package I etc. 106,958 28,164
Profit before tax 304,856 318,493
Tax 72,775 78,495
Profit for the financial year 232,081 239,998
Note End Dec. 2009 End Dec. 2008
no. DKK 1,000 DKK 1,000
Assets
Cash in hand and claims at call on central banks 42,723 46,112
12 Claims on credit institutions and central banks
12 Claims at notice on central banks 649,846 1,121,767
12 Claims on credit institutions
Money market operations and
bilateral loans - term to
maturity under 1 year 1,751,361 756,510
Bilateral loans - term to maturity over 1 year 90,792 163,570
13,14,16 Loans and other debtors at amortised cost price 13,047,212 13,897,101
17 Bonds at current value 1,679,453 1,305,760
18 Shares etc. 256,697 247,410
Capital shares in associated companies 513 571
19 Land and buildings total 76,589 74,098
Investment
properties 7,261 7,261
Domicile properties 69,328 66,837
20 Other tangible assets 3,055 3,632
Actual tax assets 46,261 34,975
21 Deferred tax assets 0 27,713
Temporary assets 1,023 204
22 Other assets 275,171 312,080
Periodic-defined items 7,260 10,250
Total assets 17,927,956 18,001,753
Note End Dec. 2009 End Dec. 2008
no. DKK 1,000 DKK 1,000
Liabilities and equity
23 Debt to credit institutions and central banks
23 Debt to central banks 0 800,000
23 Debt to credit institutions
Money market operations and
bilateral credits - term to
maturity under 1 year 699,732 1,277,112
Bilateral credits - term to maturity over 1 year 2,294,991 3,224,050
24 Deposits and other debts 11,187,470 9,072,875
25 Issued bonds at amortised cost price 557,337 478,341
26 Other liabilities 364,332 651,703
Periodic-defined items 689 802
Total debt 15,104,551 15,504,883
27 Provisions for pensions and similar liabilities 7,463 9,471
28 Provisions for deferred tax 5,088 0
14 Provisions for losses on guarantees 1,376 1,669
15 Provisions national bank package I 45,101 8,828
Other provisions for liabilities 13,210 1,128
Total provisions for liabilities 72,238 21,096
29 Subordinated loan capital 491,625 492,152
29 Hybrid core capital 203,769 198,832
29 Total subordinated debt 695,394 690,984
30 Share capital 25,200 25,200
Reserve for net revaluation under the intrinsic value method 162 188
Proposed dividend etc. 0 0
Profit carried forward 2,030,411 1,759,402
Total shareholders' equity 2,055,773 1,784,790
Total liabilities and equity 17,927,956 18,001,753
32 Contingent liabilities etc.
Reserve for
net revalua-
Provi- tion under
sions the
intrin- Proposed Profit Total
Share for reva- sic
value dividend carried shareholders'
DKK
1,000 capital luation method etc. forward equity
2008
Shareholders' equity at the end
of the previous financial
year 26,200 0 193 157,500 1,594,668 1,778,561
Reduction of share capital -1,000 1,000 0
Dividend etc. paid -157,500 -157,500
Dividend received on own shares 7,100 7,100
Shareholders' equity after
allocation of dividend
etc. 25,200 0 193 0 1,602,768 1,628,161
Purchase and sale of own shares -111,756 -111,756
Tax calculated on transactions
with own shares 14,551 14,551
Adjustment of deferred tax
concerning own shares 10,437 10,437
Other shareholders' equity items 3,399 3,399
Profit for the financial year -5 240,003 239,998
Shareholders' equity on the
balance sheet
date 25,200 0 188 0 1,759,402 1,784,790
2009
Shareholders' equity at the end
of the previous financial
year 25,200 0 188 0 1,759,402 1,784,790
Dividend etc. paid 0
Dividend received on own shares 0
Shareholders' equity after
allocation of dividend
etc. 25,200 0 188 0 1,759,402 1,784,790
Purchase and sale of own shares 55,583 55,583
Tax calculated on transactions
with own shares 3,951 3,951
Adjustment of deferred tax
concerning own shares -24,229 -24,229
Other shareholders' equity items 3,597 3,597
Profit for the financial year -26 232,107 232,081
Shareholders' equity on the
balance sheet
date 25,200 0 162 0 2,030,411 2,055,773
End Dec. 2009 End Dec. 2008
DKK 1,000 DKK 1,000
Calculated pursuant to the Executive order on Capital Adequacy
issued by the
Danish Financial Supervisory Authority.
Weighted items with credit and counterpart risks 11,378,127 13,013,636
Market risk 914,819 838,422
Operational risk 1,322,788 1,251,250
Total risk-weighted items 13,615,734 15,103,308
Share capital 25,200 25,200
Reserve for net revaluation under the intrinsic value method 162 188
Profit carried forward 2,030,411 1,759,402
Core capital 2,055,773 1,784,790
Proposed dividend etc. 0 0
Addition to/deduction from the core capital -162 -27,901
Core capital after deductions 2,055,611 1,756,889
Hybrid core capital 200,000 200,000
Core capital after deductions incl. hybrid core capital 2,255,611 1,956,889
Subordinated loan capital 490,921 501,166
Addition to/deduction from the capital base 162 188
Capital base after deductions 2,746,694 2,458,243
Core capital ratio excl. hybrid core capital (%) 15.1 11.6
Core capital ratio (%) 16.6 13.0
Solvency ratio (%) 20.2 16.3
Capital base requirements under Section 124 (2,1) of the
Danish Financial
Business Act 1,089,259 1,208,265
Minimum capital requirements under Section 124 (2,2) of the
Danish Financial
Business Act 37,208 37,253
2009 2008
DKK 1,000 DKK 1,000
Operation activities
Profit for the financial year 232,081 239,998
Amortisations, depreciations and write-downs
on intangible and tangible
assets 2,424 2,420
Write-downs on loans and debtors etc. 184,709 101,775
Items not affecting liquidity 16,592 17,774
Adjusted result of operations 435,806 361,967
Changes in operating capital
Claims on and debt to credit institutions etc., net -3,540,982 -1,855,380
Loans and other debtors at amortised cost price 665,180 135,761
Securities, not liquid and pledged 782,493 -1,167,210
Deposits and other debts 2,114,595 -88,900
Issued bonds at amortised cost price 78,996 4,054
Other assets and liabilities, net -213,636 172,118
Cash flows from operating activities 322,452 -2,437,590
Investment activities
Associated companies 0 -32
Intangible and tangible assets -4,293 -3,400
Cash flows from investment activities -4,293 -3,432
Financing activities
Subordinated debt 0 194,961
Paid dividend, net 0 -150,370
Own shares etc. 59,534 -97,172
Cash flows from financing activities 59,534 -52,581
Total effect on liquidity for the year 377,693 -2,493,603
Cash and cash equivalents, beginning of year 2,008,831 4,502,434
Cash and cash equivalents, end of year 2,386,524 2,008,831
Cash and cash equivalents, end of year specified thus:
Cash in hand and claims at call on central banks 42,723 46,112
Claims on credit institutions and central banks 956,377 1,740,768
Securities, unpledged 1,387,424 221,951
Total cash and cash equivalents, end of year 2,386,524 2,008,831
The cash flow statement cannot be derived from this annual report, and the
statement has also been adapted to the special statement of accounts etc. for
banks.
Accounting policies
Basis for preparing the annual report
General
The annual report is prepared in accordance with the provisions of the Danish
Financial Business Act and the applicable Executive Order on Financial Reports
for Credit Institutions and Investment Companies etc. The annual report is also
prepared in accordance with the disclosure requirements of NASDAQ OMX Copenhagen
(Copenhagen Stock Exchange), to the extent to which the Danish Financial
Business Act, the Executive Order on Financial Reports for Credit Institutions
and Investment Companies etc. or other Executive Orders from the Danish
Financial Supervisory Authority do not specify a different practice.
The annual report is presented in DKK rounded to the nearest 1,000 kroner.
The accounting policies are unchanged relative to last year.
Inclusion and measuring - general
Assets are included in the balance sheet when it is probable that future
financial advantages will accrue to the bank and the value can be measured
reliably. Liabilities are included in the balance sheet, when they are probable,
and that they can be measured reliably.
Income is included in the profit and loss account in step with its earning.
Costs paid to achieve the income for the year are included in the profit and
loss account, and value adjustments made to financial assets, financial
liabilities and derivative financial instruments are also included in the profit
and loss account.
Regarding the criteria for inclusion and the basis of measurement we refer to
the following sections.
Accounting estimates
In computing the book value of certain assets and liabilities, an estimate has
been made of how future events will affect the value of the assets and
liabilities on the balance sheet date.
The estimates made are based on assumptions which management judges to be
responsible, but which are not certain. The final actual results may thus
deviate from the estimates as the bank is subject to risks and uncertainties
which can affect the results.
The most important estimates concern write-downs on loans and debtors,
computation of current values for unlisted financial instruments, and provisions
for liabilities. The most important estimates on write-downs on loans and
debtors are associated with quantification of the risk that no future payments
will be received.
Foreign currency
Assets and liabilities in foreign currency are converted to Danish kroner at the
closing exchange rate for the currency on balance sheet date, corresponding to
the rate published by the Central Bank of Denmark. Income and expenses are
converted continuously at the exchange rate on the transaction date.
Financial instruments - general
In general, the bank measures financial assets and liabilities at current value
on first inclusion. Measuring is subsequently made at current value unless
otherwise specifically emerges from the following sections on the individual
accounts items. The bank uses the date of payment as the date of entry for
financial instruments.
Derivative financial instruments
Forward transactions, interest rate swaps and other derivative financial
instruments are included at current value on balance sheet date.
Hedging transactions which, under the terms of the Danish Financial Supervisory
Authority's Executive Order on Financial Reports for Credit Institutions and
Investment Companies etc. are regarded as hedging at current value for
accounting purposes are included at current value on the balance sheet date with
respect to both the hedging instrument and the hedged part of the financial
instrument.
All value adjustments concerning derivative financial instruments and items
subject to hedging for accounting purposes are entered under the item »Value
adjustments« in the profit and loss account.
The profit and loss account
Interest income
Interest income is included on the basis of the effective interest method, under
which interest income also includes the allocated portion of establishment fees
etc. which are considered to be a part of the effective interest on the loan.
On loans which in full or in part have been written down, the interest income
relating to the written-down part is entered under the item »Write-downs on
loans and debtors etc.«.
Income from fees and commissions, net
Fees and commissions relating to loans and receivables are recognized as part of
the carrying amount of loans and receivables and are recognized in the profit
and loss account over the term of the loans and receivables as part of the
effective interest rate on the loans as interest income, as referred to in the
above section »Interest income«. Commissions relating to garantees are carried
to income over the term of the garantees. Income generated upon performing a
given transaction, including securities and custodianship fees plus payment
handling fees, are recognised as income when the transaction has been performed.
That part of the bank's commission income which derives from guarantees on
foreign loans is included as a separate item designated »Interest-like
commission income« in the profit and loss account on the basis of an assessment
of materiality.
Staff and administration costs
Staff and administration costs comprise among other things salaries, pension
costs, IT-costs, etc.
Write-downs on loans and debtors etc.
This item includes losses and write-downs on loans and other debtors and losses
and provisions on guarantees. The item also includes losses and write-downs on
claims on credit institutions and losses and provisions on the national bank
package I.
Tax
Tax on the profit for the year is booked as a cost in the profit and loss
account.
Net deferred tax is calculated on the items which cover the delay in accounting
and booking of taxable income and expenses at the tax rate applicable on the
balance sheet date.
The balance sheet
Claims on credit institutions and central banks
The first inclusion is made at current value plus transactions costs, less
establishment fees etc., and subsequent measurement is at amortised cost price,
but reference is made to the section »Derivative financial instruments« with
respect to hedging for accounting purposes.
Loans and other debtors
The first inclusion is made at current value plus transaction costs, less
establishment fees etc., and subsequent measurement is at amortised cost price.
Establishment fees etc. which are comparable with ongoing interest payments, and
are thus deemed to be an integral part of the effective interest on the loan,
are accrued over the life of the individual loan.
If an objective indication of impairment is found on an individually assessed
loan, a write-down is made to cover the bank's loss on the basis of expected
future payments series based on an assessment of the most likely outcome.
With respect to loans and receivables which have not been written down
individually, a group-wise assessment is made of whether there is an objective
indication of impairment in value for the group.
This group-wise assessment is made on groups of loans and debtors with uniform
characteristics with respect to credit risk. Eleven groups are used, one of
public clients, one of private clients and nine of business clients, the latter
further grouped by sector.
The group-wise assessment is made on the basis of a segmentation model developed
by the Association of Local Banks, Savings Banks and Cooperative Savings Banks
in Denmark, which undertakes the ongoing maintenance and development. The
segmentation model sets the relationship in the individual groups between losses
suffered and a number of significant explanatory macroeconomic variables via a
linear regression analysis. The explanatory macroeconomic variables include
unemployment, house prices, interest rates, number of bankruptcies/forced
auctions etc.
The macroeconomic segmentation model is initially calculated on the basis of
loss data for the entire banking sector. The bank has therefore made an
assessment of whether the model estimates reflect the credit risk for the bank's
own loan portfolio.
This assessment has resulted in an adaptation of the estimates under the model
to the bank's own circumstances, under which the adapted estimates form the
basis for calculation of the group write-downs. The adjusted estimates were
further corrected to take account of the changed economic conditions. For each
group of loans and debtors, there is an estimate which expresses the percentage
decrease in value associated with a given group of loans and debtors on the
balance sheet date. A comparison of the individual loan's current risk of loss
with the loan's original risk of loss and its risk of loss at the beginning of
the current accounting period provides the individual loan's contribution to the
group write-downs. The write-down is calculated as the difference between the
book value and the discounted value of the expected future payments.
With respect to hedging for accounting purposes reference is made to section
»Derivative financial instruments«.
Changes in write-downs which have been made are adjusted in the profit and loss
account under the item »Write-downs on loans and debtors etc.«.
Bonds and shares
Securities which are listed on a stock exchange are included at current value,
determined on the basis of the closing price on balance sheet date.
Unlisted securities are also included at current value, computed on the basis of
what the price would be in a transaction between independent parties.
All ongoing value adjustments to listed and unlisted securities are entered in
operations under the item »Value adjustments«.
Capital shares in associated companies
Capital shares in associated companies are entered in the balance sheet under
the intrinsic value method.
Land and buildings
Land and buildings cover the two items »Investment properties« and »Domicile
properties«. The properties which house the bank's branches are included under
domicile properties, while other properties are considered to be investment
properties.
Investment properties are included in the balance sheet at current value,
computed under the yield method. Ongoing changes in value concerning investment
properties are included in the profit and loss account.
Domicile properties are included in the balance sheet at reassessed value, which
is the current value computed on the basis of the yield method less cumulative
depreciation and any loss due to impairment. Depreciation is calculated on the
basis of expected useful life, which is 50 years, on the basis of depreciation
computed as cost price less scrap value. Depreciations and losses due to
impairment are included in the profit and loss account, while increases in the
reassessed value are included directly on the shareholders' equity under the
item »Provisions for revaluation« unless the increase corresponds to a reduction
in value which was previously included in the profit and loss account.
Other tangible assets
Other tangible assets including operating equipment are included in the balance
sheet at cost price less cumulative depreciation and write-downs for any loss
due to impairment. Depreciations are calculated on the basis of the assets'
expected lives, which are 1-5 years, on the basis of depreciation computed as
cost price less scrap value. Depreciations and losses due to impairment are
included in the profit and loss account.
Temporary assets
Temporary assets comprise assets taken over as a result of the unwinding of
customer engagements, the intention being to sell off the assets as soon as
possible. Assets taken over are recognized at fair value upon taking them over
and subsequently measured at estimated realizable value.
Other assets
Other assets include interest and commissions receivable as well as the positive
market value of derivative financial instruments.
Tax
Actual tax assets and actual tax liabilities are recognized in the balance sheet
as tax calculated on the taxable income for the year, adjusted for tax paid on
account.
A deferred tax liability is allocated under the item »Provisions for deferred
tax« and if a deferred tax asset is booked under the item »Deferred tax assets«
following a cautious assessment of the asset's value.
Debt to credit institutions and central banks / Deposits and other debts /
Issued bonds at amortised cost price / Subordinated debt
Measurement is at amortised cost price, but reference is made to the section
»Derivative financial instruments« with respect to hedging for accounting
purposes.
Other liabilities
Other liabilities include interest and commissions payable and the negative
marked value of derivative financial instruments.
Various informations
Contingent liabilities/guarantees
The bank's outstanding guarantees are given in the notes under the item
»Contingent liabilities«. If it is considered likely that an outstanding
guarantee will incur a loss to the bank, the liability is given under the item
»Provisions for losses on guarantees« and booked under costs in the profit and
loss account under the item »Write-downs on loans and debtors etc.«
Cash flow statement
The cash flow statement is presented in accordance with the indirect method on
the basis of the result for the year, adjusted for non-liquid items.
The statement shows net changes in the balance sheet, and on some points it will
therefore not provide the full picture of the actual cash flows.
The cash flows from the operating activity are computed as the result for the
year, adjusted for non-liquid items and changes in operating capital. Cash flows
from the investment activity cover purchases and sale of fixed assets etc. Cash
flows from the financing activity cover movements and allocations in
subordinated debt and in shareholders' equity.
Liquid assets cover cash in hand, claims at call on the Central Bank of Denmark,
fully secured and liquid claims at call on banks, unpledged certificates of
deposit issued by the Central Bank of Denmark, and secure and easily saleable
listed unpledged securities, under Section 152 of the Danish Financial Business
Act.
Information and key figures
»Total capital base« on page 3 under »Main figures for the bank« is computed as
the banks capital base after deductions.
The »Pre-tax return on equity at the beginning of the year«, and the »Return on
equity after tax at the beginning of the year« as given on page 3 under »Key
figures for the bank« were both for 2008 calculated after deduction of dividend
etc., net.
»Key figures per DKK 5 share« on page 3 were calculated on the basis of 2009:
5,040,000 shares, 2008: 5,040,000 shares, 2007: 5,040,000 shares, 2006:
5,280,000 shares and 2005: 5,280,000 shares.
All calculations etc. concerning write-downs on pages 3, 8, 19 and 20 were made
exclusive of amounts under the national bank package I etc.
With effect from 2008, the bank changed the calculation of the key figure »Rate
of costs«. The key figure is now calculated as »Total costs etc.« (including
depreciation on tangible fixed assets) divided by »Total core income« multiplied
by 100. The comparative figures on the pages 3 and 7 have been adjusted for the
change method of calculation.
No changes to the calculated VaR figures for 2007 were made in connection with
the adjustment of the VaR model in 2008 (note 42 on page 66).
It is noted, that the individual solvency requirement (reported at page 3, 12
and 16) not is audited.
1 Interest receivable
Claims on credit institutions and central banks 63,512 122,162
Loans and other debtors 865,961 1,061,077
Loans - interest concerning the written-down part of loans -26,109 -24,552
Bonds 65,062 42,996
Total derivatives financial instruments 24,338 19,168
of which
Currency contracts 24,759 18,601
Interest-rate contracts -421 567
Other 992 314
Total interest receivable 993,756 1,221,165
2 Interest payable
Credit institutions and central banks 94,946 261,630
Deposits and other debts 230,197 344,397
Issued bonds 21,525 33,185
Subordinated debt 30,743 29,585
Other 317 352
Total interest payable 377,728 669,149
3 Dividend on capital shares etc.
Shares 3,243 1,491
Total dividend on capital shares etc. 3,243 1,491
4 Fees and commissions
Gross income from fees and commissions
Securities trading 26,678 36,543
Asset management 40,943 48,343
Payment handling 16,419 16,946
Loan fees 9,854 8,740
Guarantee commissions 29,991 27,470
Other fees and commissions 16,477 17,386
Total gross income from fees and commissions 140,362 155,428
Fees and commissions paid
Securities trading 7,890 11,257
Asset management 3,960 4,221
Payment handling 1,551 2,070
Loan fees 2,453 2,309
Guarantee commissions 0 0
Other fees and commissions 7,969 8,607
Total fees and commissions paid 23,823 28,464
Net income from fees and commissions
Securities trading 18,788 25,286
Asset management 36,983 44,122
Payment handling 14,868 14,876
Loan fees 7,401 6,431
Guarantee commissions 29,991 27,470
Other fees and commissions 8,508 8,779
Total net income from fees and commissions 116,539 126,964
Foreign exchange income 16,515 13,670
Total net income from fees, commissions and
foreign exchange
income 133,054 140,634
5 Value adjustments
Loans and other debtors at current value 8,665 9,397
Bonds 39,402 -43,230
Shares etc. 7,159 -43,176
Shares in sector companies etc. 5,246 8,142
Shares in Totalkredit A/S 0 33,225
Investment properties 0 1,650
Foreign exchange income 16,515 13,670
Total derivative financial instruments -5,758 19,678
of which
Interest-rate contracts -5,656 19,649
Share contracts -102 29
Issued bonds 5,937 -13,398
Other liabilities -19,036 -29,535
Total value adjustments 58,130 -43,577
6 Staff and administration costs
Salaries and payments to board of managers,
board of directors and shareholders' committee
Board of managers 5,873 5,631
Board of directors 847 814
Shareholders' committee 307 292
Total 7,027 6,737
Staff costs
Salaries 110,783 107,593
Pensions 11,111 10,663
Social security expenses 12,660 12,300
Total 134,554 130,556
Other administration costs 94,023 98,763
Total staff and administration costs 235,604 236,056
7 Number of employees
Average number of employees during the financial year
converted into full-time employees 262.0 274.4
8 Incentive schemes
Under the employee share schemes established in previous financial years, a
total of 6,860 shares with a residual binding period of zero years were bound
under the schemes on the balance sheet date.
Under the employee bond schemes established in previous financial years, bonds
to a total of nom. tDKK 4,044 with residual binding periods of two, three, four
and five years had been issued on the balance sheet date.
9 Audit fee
Total fee to the firm of accountants, elected by the
General Meeting, that perform the statutory audit 988 699
Of this concerning other contributions than audit 354 125
It is noted, that the bank also has an internal auditor.
10 Amortisations, depreciations and write-downs on intangible
and tangible
assets
Tangible assets
Domicile properties, depreciations 377 320
Other tangible assets, depreciations 2,047 2,100
Total amortisations, depreciations and write-downs on
intangible and tangible
assets 2,424 2,420
11 Tax
Tax calculated on the years profit 64,201 84,680
Adjustment of deferred tax 8,572 -6,103
Adjustment of tax calculated for previous years 2 -82
Total tax 72,775 78,495
Effective tax rate (%):
The current tax rate of the bank 25.0 25.0
Adjustment of tax on non-liable income and non-deductible
costs
etc. -1.1 -0.4
Adjustment of tax calculated for previous years 0.0 0.0
Total effective tax rate 23.9 24.6
End Dec. 2009 End Dec. 2008
DKK 1,000 DKK 1,000
12 Claims on credit institutions and central banks
Claims at call 306,531 1,348,577
Up to and including 3 months 1,298,234 444,147
More than 3 months and up to and including 1 year 796,442 85,553
More than 1 year and up to and including 5 years 54,324 126,672
More than 5 years 36,468 36,898
Total claims on credit institutions and central banks 2,491,999 2,041,847
Distributed as follows:
Claims at notice on central banks 649,846 1,121,767
Claims on credit institutions 1,842,153 920,080
2,491,999 2,041,847
13 Loans and other debtors at amortised cost price
At call 2,851,137 3,861,170
Up to and including 3 months 862,975 712,129
More than 3 months and up to and including 1 year 2,066,758 2,533,169
More than 1 year and up to and including 5 years 4,155,151 3,501,623
More than 5 years 3,111,191 3,289,010
Total loans and other debtors at amortised cost price 13,047,212 13,897,101
14 Write-downs on loans and other debtors and provisions
for losses on
guarantees
Individual write-downs
Cumulative individual write-downs on loans and other debtors
at the end of the previous financial year 336,820 273,138
Write-downs/value adjustments during the year 195,056 190,236
Reverse entry - write-downs made in previous financial years -53,832 -116,390
Booked losses covered by write-downs -53,527 -10,164
Cumulative individual write-downs on loans and
other debtors on the balance sheet date 424,517 336,820
Group write-downs
Cumulative group write-downs on loans and other debtors
at the end of the previous financial year 17,594 8,656
Write-downs/value adjustments during the year 35,167 13,286
Reverse entry - write-downs made in previous financial years -11,629 -4,348
Cumulative group write-downs on loans and
other debtors on the balance sheet date 41,132 17,594
Total cumulative write-downs on loans and other debtors
on the balance sheet date 465,649 354,414
Provisions for losses on guarantees
Cumulative individual provisions for losses on guarantees at
the end of the previous financial year 1,669 7,303
Provisions/value adjustments during the year 3,822 573
Reverse entry - provisions made in previous financial years -4,115 -6,207
Cumulative individual provisions for losses on guarantees
on the balance sheet date 1,376 1,669
Total cumulative write-downs on loans and other debtors and
provisions for losses on guarantees on the balance sheet date 467,025 356,083
It is noted that no write-downs were made on outstanding claims on credit
institutions and other receivables at the end of 2009.
The above figures in
this note therefore do not include any such write-downs.
15 Provisions national bank package I
Cumulative individual provisions at the end of the previous
financial
year 8,828 0
Provisions/value adjustments during the year 36,273 8,828
Cumulative individual provisions on the balance sheet date 45,101 8,828
It is noted that the item in the profit and loss account in 2009 primarily
concerns write-downs made on the national bank package I, and that the item
also includes the writing off of a claim on a credit institution.
16 Suspended calculation of interest
Loans and other debtors with suspended calculation of
interest on the balance sheet date 62,649 22,110
17 Bonds at current value
Listed on the stock exchange 1,679,453 1,305,760
Total bonds at current value 1,679,453 1,305,760
18 Shares etc.
Listed on NASDAQ OMX Copenhagen 25,428 23,078
Listed on other stock exchanges 0 6
Unlisted shares at current value 2,591 9,741
Sector shares at current value 204,527 196,497
Other holdings 24,151 18,088
Total shares etc. 256,697 247,410
Sector shares are distributed as follows:
Asset management and pension
BankInvest Holding A/S 19,096 11,855
Egnsinvest Holding A/S 42 120
Letpension Holding A/S 3,358 7,838
Sparinvest Holding A/S 6,769 18,779
Sector infrastructure
Multidata Holding A/S 3,541 3,541
PBS Holding A/S 5,021 5,021
Swift 20 20
Værdipapircentralen A/S 1,362 1,363
Mortgage credit
DLR Kredit A/S 131,136 113,183
PRAS A/S 34,182 34,777
Total sector shares 204,527 196,497
19 Land and buildings
Investment properties
Current value at the end of the previous financial year 7,261 5,611
Acquisitions during the year, including improvements 0 0
Disposals during the year 0 0
Value adjustments to current value for the year 0 1,650
Current value on the balance sheet date 7,261 7,261
Domicile properties
Reassessed value at the end of the previous financial year 66,837 65,381
Acquisitions during the year, including improvements 2,868 1,776
Disposals during the year 0 0
Depreciations for the year -377 -320
Total reassessed value on the balance sheet date 69,328 66,837
When measuring investment and domicile properties a rate of return between 6%
and 8% is used.
No external experts were involved in the valuation of investment
and domicile properties.
20 Other tangible assets
Cost price
Cost price at the end of the previous financial year
without depreciations and write-downs 29,938 31,720
Acquisitions during the year, including improvements 1,651 1,777
Disposals during the year -1,763 -3,559
Transfers to other items during the year 0 0
Total cost price on the balance sheet date 29,826 29,938
Write-downs and depreciations
Write-downs and depreciations at the end of the previous
financial
year 26,306 27,586
Write-downs for the year 0 0
Depreciations for the year 2,047 2,100
Write-downs and depreciations on sold and discarded assets 0 0
Reverse entry of previous years' write-downs during the year and
reverse entry
of total depreciations and write-downs on assets
which were sold or taken out
of operation during the year -1,582 -3,380
Total depreciations and write-downs on the balance sheet date 26,771 26,306
Total other tangible assets on the balance sheet date 3,055 3,632
21 Deferred tax assets
The calc. deferred tax asset relates to the balance sheet items:
Loans and other debtors 0 2,649
Securities 0 31,333
Tangible assets 0 1,090
Provisions for liabilities 0 2,650
Other assets/liabilities 0 -10,009
Total deferred tax assets 0 27,713
Deferred tax is calculated at (%) 25.0 25.0
22 Other assets
Interest and commissions receivable 69,674 96,122
Positive market value of derivative financial instruments 192,894 185,953
Miscellaneous receivables and other assets 12,603 30,005
Total other assets 275,171 312,080
23 Debt to credit institutions and central banks
Debt payable on demand 407,506 1,266,005
Up to and including 3 months 240,334 305,944
More than 3 months and up to and including 1 year 51,892 505,163
More than 1 year and up to and including 5 years 1,974,750 2,850,267
More than 5 years 320,241 373,783
Total debt to credit institutions and central banks 2,994,723 5,301,162
Distributed as follows:
Debt to central banks 0 800,000
Debt to credit institutions 2,994,723 4,501,162
2,994,723 5,301,162
The bank has undrawn long-term committed revolving credit
facilities equivalent to:
Term to maturity under 1 year 300,000 300,000
Term to maturity over 1 year 769,735 1,070,554
Total 1,069,735 1,370,554
The bank also has an undrawn loan facility with the Central Bank
of Denmark
on the basis of statutory excess solvency which
expires on 30 September 2010
of 800,000 800,000
24 Deposits and other debts
On demand* 5,318,439 4,067,100
Deposits and other debts at notice:
Up to and including 3 months 2,019,860 1,968,029
More than 3 months and up to and including 1 year 1,141,367 586,356
More than 1 year and up to and including 5 years 1,251,393 1,055,126
More than 5 years 1,456,411 1,396,264
Total deposits and other debts 11,187,470 9,072,875
Distributed as follows:
On demand 4,870,100 3,796,184
At notice 88,810 52,190
Time deposits 3,174,223 2,495,579
Long-term deposit agreements 1,801,769 1,561,675
Special types of deposits* 1,252,568 1,167,247
11,187,470 9,072,875
* Special types of deposits are entered under the item »On demand«
pending
payment, while in the specification of the different types of deposits,
the sum
is instead included under »Special types of deposits«.
25 Issued bonds at amortised cost price
On demand 0 0
Up to and including 3 months 0 0
More than 3 months and up to and including 1 year 446,461 0
More than 1 year and up to and including 5 years 11,264 386,363
More than 5 years 99,612 91,978
Total issued bonds at amortised cost price 557,337 478,341
Distributed as follows:
Issues in Norwegian kroner:
Nom. NOK 500 million* 447,100 378,600
Nom. NOK 100 million 89,420 75,720
Regulation at amortised cost price and adjustment to
current value of
issues in Norwegian kroner 6,980 12,756
Other issues 13,837 11,265
557,337 478,341
* Admitted for listing on the Oslo Exchange/ABM.
26 Other liabilities
Interest and commissions payable 73,038 105,495
Negative market value of derivative financial instruments 181,856 400,133
Micellaneous payables and other liabilities 109,438 146,075
Total other liabilities 364,332 651,703
27 Provisions for pensions and similar liabilities
The provisions concern conditional pension commitments to
current members of
the board of managers and a pension com-
mitment to a former member of the
board of managers from a
merged bank. 7,463 9,471
28 Provisions for deferred tax
The calc. provisions for defer. tax relates to the balance sheet items:
Loans and other debtors -1,308 0
Securities 6,270 0
Tangible assets -1,120 0
Provisions for liabilities -5,168 0
Other assets/liabilities 6,414 0
Total provisions for deferred tax 5,088 0
Deferred tax is calculated at (%) 25.0 25.0
29 Subordinated debt
Possible
Interest early
rate Cur- Due redemption
Type (%) rency Mill. date date
Subordinated loan capital
Bond loan*/**** 3.995 DKK 300 9 Feb. 2014 9 Feb. 2011 300,000 300,000
Bilateral agreement** Floating EUR 27 30 June 2021 30 June 2018 200,921 201,166
Total subordinated loan capital 500,921 501,166
Hybrid core capital
Bond loan***/**** 4.795 DKK 200 Indefinite 2 March 2015 200,000 200,000
Total hybrid core capital 200,000 200,000
Subordinated debt included in the calculation
of the capital base (before
deduction of own holding) 700,921 701,166
Regulation at amortised cost price and adjustment to current
value 4,631 -10,182
Own holding of subordinated loan capital -10,158 0
Total subordinated debt 695,394 690,984
* The interest rate will change on 9 February 2011 to a quarterly variable
coupon rate equivalent to the
CIBOR rate published by the Central Bank of
Denmark for a term of three months plus 2.30% p.a.
Interest - 2009: tDKK 13,666
/ 2008: tDKK 12,522
** The interest rate will change on 30 June 2018 to a quarterly variable rate
equivalent to the
EURIBOR rate for a term of three months plus 3.50%
p.a.
Interest - 2009: tDKK 7,319 / 2008: tDKK 7,252
*** The interest rate will change on 2 March 2015 to a quarterly variable coupon
rate equivalent to the
CIBOR rate published by the Central Bank of Denmark for
a term of three months plus 2.16% p.a.
Interest - 2009: tDKK 9,758 / 2008: tDKK
9,811
**** Admitted for listing on NASDAQ OMX Copenhagen.
30 Share capital
Number of shares at DKK 5 each:
Beginning of year 5,040,000 5,240,000
Cancelled during the year 0 -200,000
End of year 5,040,000 5,040,000
Share capital 25,200 25,200
The whole share capital has been admitted for listing on
NASDAQ OMX Copenhagen.
31 Own capital shares
Own capital shares included in the balance sheet at 0 0
The market value is 5,220 63,343
Number of own shares:
Beginning of year 204,333 196,531
Purchase of own shares during the year 487,279 743,187
Sale of own shares during the year -683,040 -535,385
Cancellation of own shares during the year 0 -200,000
End of year 8,572 204,333
Nominal value of holding of own shares, end of year 43 1,022
Own shares' proportion of share capital end of year (%):
Beginning of year 4.1 3.9
Purchase of own shares during the year 9.7 14.7
Sale of own shares during the year -13.6 -10.6
Cancellation of own shares during the year 0.0 -3.9
End of year 0.2 4.1
Total purchase price for shares acquired during the year 251,393 403,338
Total sales price for shares sold during the year 306,976 291,582
The transactions for the year in own shares were made on the basis of the bank's
ordinary trading with shares.
32 Contingent liabilities etc.
Contingent liabilities
Finance guarantees 1,009,540 732,598
Guarantees for foreign loans 29,613 1,089,343
Guarantees against losses on mortgage credit loans 48,774 48,710
Guarantees against losses Totalkredit 116,327 116,182
Registration and conversion guarantees 74,389 134,160
Guarantee national bank package I 109,886 163,422
Other contingent liabilities 97,147 101,798
Total contingent liabilities 1,485,676 2,386,213
Binding agreements
Irrevocable credit commitments 0 0
Other 0 0
Total binding agreements 0 0
33 Assets furnished as security
As security for clearing and any debt, the bank has pledged
securities from
its holding to the Central Bank of Denmark
to a total market price
of 292,858 1,170,161
34 Legal proceedings, etc.
The bank is not party to any legal proceedings that are estimated to result in
major losses and in that way to a substantial change of the accounts.
35 Related parties
Related parties are among others the bank's board of directors and board of
managers, managerial employees and their relatives. Ringkjøbing Landbobank
advises that it has no related parties with a controlling influence on the bank
(defined as >20% ownership).
There were no transactions during the year with the board of directors and board
of managers or managerial employees apart from the payment of salaries and
compensation etc., stock exchange business and the provision of loans and
guarantees.
It is also noted that all of the transactions performed in 2009 and 2008 with
related parties, including credit facilities, were carried out on market terms
or a cost-cover basis.
Information on the remuneration made to the board of directors and board of
managers is given in note 6.
Information on the size of loans, mortgages, sureties and guarantees provided to
members of the bank's board of directors and board of managers and the security
received is given in this note. The information in the note covers these
parties' personal engagements and those of their relatives.
Information on the shareholdings held by the board of directors and board of
managers is given in this note.
The amount of loans issued to and mortgages, sureties or
guarantees issued
for the members
of the bank's:
Interest rates 2009
Board of managers
4.8% 306 300
Board of directors, incl. elected by the staff
2.4%-9.8% 9,326 11,497
All engagements are performed under market terms,
including both interest and guarantee commission rates.
Security pledged from members of the bank's:
Board of managers 0 0
Board of directors, incl. elected by the staff 1,829 2,110
35 Related parties - continued
The board of directors' and the board of managers' share-
holdings* in
Ringkjøbing Landbobank at the end of the year
The board of directors:
Jens Lykke Kjeldsen 5,415 3,915
Gravers
Kjærgaard 6,767 6,767
Gert Asmussen 4,528 4,528
Keld Hansen 15,636 14,137
Bo
Bennedsgaard 337 247
Søren Nielsen 452 395
The board of managers:
Bent Naur 16,402 16,355
John Fisker 14,650 14,603
* Stated in accordance with the rules on insiders.
36 Current value of financial instruments
Financial instruments are measured in the balance sheet at either current value
or amortised cost price (with consideration to risk cover that fulfil the
conditions applying to hedging).
The current value is the amount at which a financial asset can be sold or the
amount at which a financial liability can be redeemed between agreed independent
parties. The current values of financial assets and liabilities valued on active
markets are calculated on the basis of observed market prices on the balance
sheet date. The current values of financial instruments which are not valued on
active markets are calculated on the basis of generally recognised methods of
valuation.
Shares etc. and derivative financial instruments are measured in the accounts at
market value such that included book values correspond to current values.
The write-downs on loans are assessed such that they correspond to changes in
credit quality. The difference from current value is assessed as fees and
commissions received, costs incurred in lending activities, and, for
fixed-interest loans, the value adjustment which is independent of the interest
level and which can be calculated by comparing the actual market interest rate
with the nominal rate applying to the loans.
The current value of claims on credit institutions and central banks is
determined under the same method as for loans, but the bank has not currently
made any write-downs on claims on credit institutions and central banks.
Issued bonds and subordinated debt are measured at amortised cost price. The
difference between book and current values is calculated on the basis of prices
on the market for own listed issues.
For variable-interest financial liabilities in the form of deposits and debts to
credit institutions measured at amortised cost price, it is estimated that the
book value corresponds to the current value.
For fixed-interest financial liabilities in the form of deposits and debts to
credit institutions measured at amortised cost price, the difference from
current values is estimated to be the value adjustment which is independent of
interest level.
36 Current value of financial instruments
- continued
Financial assets
Cash in hand+claims at call on central
banks 42,723 42,723 46,112 46,112
Claims on credit institut. and central
banks* 2,499,099 2,499,613 2,051,203 2,051,203
Loans and other debtors at amort.
cost price* 13,077,263 13,112,976 13,949,779 13,984,194
Bonds at current
value* 1,695,609 1,695,609 1,336,123 1,336,123
Shares
etc. 257,210 257,210 247,981 247,981
Derivative financial
instruments 192,894 192,894 185,953 185,953
Total financial
assets 17,764,798 17,801,025 17,817,151 17,851,566
Financial liabilities
Debt to credit institutions and central
banks* 2,997,177 2,998,456 5,328,951 5,328,951
Deposits and other
debts* 11,233,073 11,248,384 9,113,479 9,131,648
Issued bonds at amortised cost
price*/** 562,082 561,245 484,009 479,167
Derivative financial
instruments 181,856 181,856 400,133 400,133
Subordinated
debt*/** 713,767 654,594 713,134 684,350
Total financial
liabilities 15,687,955 15,644,535 16,039,706 16,024,249
* The item includes calculated interest on the balance sheet date. The
calculated interest in the balance sheet is included under the items »Other
assets« and »Other liabilities«.
** Using the most recently listed transaction
price before the balance sheet date, irrespective of the liquidity in the
security in question.
37 Hedging
The following are hedged:
Fixed interest claim on a credit institution, fixed interest loans,
fixed
interest deposits, issued bonds at amortised cost price,
fixed interest
subordinated loan capital, floating interest subordi-
nated loan capital and
fixed interest hybrid core capital
Risk cover:
Interest rate risk and foreign exchange risk
Book values:
Claim on a credit institution 28,604 27,932
Loans 145,249 205,654
Deposits 311,943 306,187
Issued bonds at amortised cost price 543,500 467,076
Subordinated loan capital 491,625 492,152
Hybrid core capital 203,769 198,832
Cover is thus:
Interest and currency swaps - total synthetic principal 1,628,651 1,612,660
Total current value 21,468 10,794
38 Risks and risk management
As described in the section on risk »Risks and risk management« in the
management report contained in the annual report, Ringkjøbing Landbobank is
exposed to various types of risk. See the section on risks on pages 18-29 of the
management report for a description of financial risks and policies and
objectives for their management.
The following notes to the annual report contain some additional information and
a more detailed description of the bank's credit and market risks.
39 Credit risk
Maximum credit exposure classified by balance sheet and
off-balance sheet
items
Balance sheet items
Cash in hand and claims at call on central banks 42,723 46,112
Claims on credit institutions and central banks 2,491,999 2,041,847
Loans and other debtors at amortised cost price 13,047,212 13,897,101
Bonds at current value 1,679,453 1,305,760
Shares etc. 256,697 247,410
Capital shares in associated companies 513 571
Other assets, including derivative financial instruments 321,432 347,055
17,840,029 17,885,856
Off-balance sheet items
Guarantees (contingent liabilities) 1,485,676 2,386,213
Credit commitments (binding agreements) 0 0
1,485,676 2,386,213
Total 19,325,705 20,272,069
A more detailed classification of the items »Loans and other deb-
tors at
amortised cost price« and »Guarantees« is given below.
Loans and guarantees distributed on sectors
Loans and guarantees distributed on sectors and lines of
business (in % end year)
Public authorities 0.0 0.3
Business
Agriculture, hunting and forestry
Cattle farming etc. 3.9 4.9
Pig farming etc. 3.8 4.4
Other agriculture, hunting and forestry 4.0 3.7
Fishing industry 1.6 1.4
Mink production 1.7 1.4
Manufacturing business, primary business, electricity-, gas-,
water- and
heating plants 4.6 11.8
Wind turbines/electricity production 14.3 -
Building and construction 2.1 2.2
Wholesale and retail trade, catering- and hotel trade 4.1 5.7
Carrying trade, storage- and communication service 2.1 0.7
Credit- and financial intermediation and insurance business 7.0 8.6
Real-estate administration, real-estate agent, service business 8.9 6.1
Other business 7.9 14.6
Total business 66.0 65.5
Private persons 34.0 34.2
Total 100.0 100.0
The distribution by sector is based on Statistics Denmark's sector codes etc.
A separate line was added in 2009 for loans for the erection of wind turbines.
In previous years this item was included in various sectors.
39 Credit risk - continued
Description of securities (collateral)
Ringkjøbing Landbobank wishes to reduce its risk to the greatest possible extent
in connection with business transactions entered into with the bank's customers
by receiving security in the form of a mortgage/pledge in physical assets, bonds
and shares, bank deposits etc. and via sureties, guarantees, notices of
rescission etc. The most used securities are mortgages in real estate and
pledges in bonds and shares. The bank regularly monitors the values of
securities received.
Description of loans which are neither in arrears nor written down
Ringkjøbing Landbobank has historically always been operated with a conservative
credit policy, which is also reflected in the loans which are neither in arrears
nor have been written down. With respect to the loans in question, reference is
also made to relevant sections on the bank's credit risk on loans on pages 8 and
18-21 of the management report.
Book value of loans which would have been in arrears or
written down if they
had not been renegotiated 0 0
Terms from the due date for loans in
arrears which have not been written down
0-90 days 13,209 11,554 97,969 11,055
over 90 days 1,078 1,744 1,458 871
Total 14,287 13,298 99,427 11,926
39 Credit risk - cont.
Value of loans
which have been
individually written
down
Reason for
write-down:
Major financial
difficulties 347,298 187,646 42,436 296,817 171,953 44,369
Breach of contract 143,652 99,071 18,041 132,441 83,432 25,638
Easing of terms 72,872 52,265 3,745 52,924 40,890 1,265
Probability of
bankruptcy 108,103 85,535 6,945 59,506 40,545 4,184
Total 671,925 424,517 71,167 541,688 336,820 75,456
Loans and other debtors with an objective indication of
impairment included in the balance sheet at a book value
greater than zero
Individual written-down loans
Balance for loans and other debtors before write-downs 643,251 513,177
Write-downs -393,025 -301,825
Balance for loans and other debtors after write-downs 250,226 211,352
Group written-down loans
Balance for loans and other debtors before write-downs 12,340,803 12,981,170
Write-downs -41,132 -17,594
Balance for loans and other debtors after write-downs 12,299,671 12,963,576
Credit risk on derivative financial instruments
Positive market value (by counterpart risk) after netting
Counterpart riskweight 0% 0 0
Counterpart riskweight 20% 179,291 295,247
Counterpart riskweight 75% 39,644 40,374
Counterpart riskweight 100% 84,897 114,002
Counterpart riskweight 150% 672 9,479
Total counterpart riskweight 304,504 459,102
40 Foreign exchange risk
Total assets in foreign currency 7,262,527 5,617,903
Total liabilities in foreign currency 5,589,649 6,167,198
Foreign exchange indicator 1 75,935 109,301
Foreign exchange indicator 1 in %
of core capital after deductions
(%) 3.4 5.6
Foreign exchange indicator 2 1,355 665
Foreign exchange indicator 2 in %
of core capital after deductions
(%) 0.1 0.0
41 Interest rate risk
Total interest rate risk 12,772 23,519
Total interest rate risk (%) 0.6 1.2
Interest rate risk by the foreign currencies:
DKK 41,812 34,452
EUR -23,678 -10,171
USD -716 -908
CHF -4,652 185
JPY -9 -46
Other currencies 15 7
Total 12,772 23,519
42 Value at Risk/Market risk
Ringkjøbing Landbobank uses a Value at Risk (VaR) model as a sensitivity
analysis for market risks. The model is a parametric VaR model based on a
historic analysis of the covariation (the correlations) between the prices of
various financial assets etc. The model combines the historical knowledge of the
covariation on the financial markets with the bank's current positions, and on
this basis calculates the risk of losses for a forthcoming ten-day period. The
calculation includes the bank's positions with respect to interest, foreign
currencies and listed shares, while positions in sector shares and unlisted
capital shares are not included. The calculated VaR thus indicates the bank's
sensitivity to losses on the basis of its positions. The model is used as one of
a number of tools in the bank's management of market risks.
Reference is made to pages 26-27 of this annual report for further description
of the model etc.
DKK million
Average Minimum Maximum End of
year
Year/Risk VaR-figure VaR-figure* VaR-figure* VaR-figure
2009
Interest 17.4 4.8 27.8 11.6
Foreign currency 0.5 0.2 0.3 0.1
Share 5.3 3.2 5.9 6.2
Diversification -5.7 -2.7 -7.1 -5.9
Total VaR-figure 17.5 5.5 26.9 12.0
2008
Interest 11.0 4.3 25.8 21.7
Foreign currency 0.3 0.1 0.2 1.2
Share 8.1 6.7 7.0 6.9
Diversification -8.2 -5.7 -7.8 -9.4
Total VaR-figure 11.2 5.4 25.2 20.4
2007
Interest 7.2 4.3 13.3 7.4
Foreign currency 0.2 0.1 2.2 0.1
Share 7.0 5.3 6.5 4.5
Diversification -5.8 -4.8 -7.4 -4.2
Total VaR-figure 8.6 4.9 14.6 7.8
* Determined by the total VaR-figure.
43 Unsettled spot transactions
Net
DKK 1,000 Nominal Market value market
value Positive Negative value
Foreign-exchange transactions, purchase 38,677 36 82 -46
Foreign-exchange transactions, sale 59,531 42 798 -756
Interest-rate transactions, purchase 46,038 50 117 -67
Interest-rate transactions, sale 34,562 103 42 61
Share transactions, purchase 31,003 696 1,777 -1,081
Share transactions, sale 32,594 1,782 694 1,088
Total 2009 242,405 2,709 3,510 -801
Total 2008 349,806 1,367 2,521 -1,154
Derivative financial instruments
By residual maturity
DKK 1,000
Over 3 month
Up to 3 month and up to 1 year
Net Net
Nominal market Nominal market
value value value value
Foreign-exchange contracts
Forward transactions/futures, purchase 2,116,226 27,436 299,104 2,069
Forward transactions/futures, sale 4,127,205 -9,561 296,117 697
Swaps 467,867 -33,392
Options, purchase
Options, sale
Interest-rate contracts
Forward transactions/futures, purchase 3,262 19
Forward transactions/futures, sale 119,642 -131
Swaps 50,000 -302 214,175 -527
Options, purchase 173,778 6,411
Options, sale 173,778 -6,411
Share contracts
Forward transactions/futures, purchase
Forward transactions/futures, sale
Options, purchase 7
Options, sale 7
Over 1 year
and up to 5 years Over 5 years
Net Net
Nominal market Nominal market
value value value value
Foreign-exchange contracts
Forward transactions/futures, purchase 984 92
Forward transactions/futures, sale 984 -90
Swaps 550,531 2,476 617,486 19,985
Options, purchase
Options, sale
Interest-rate contracts
Forward transactions/futures, purchase
Forward transactions/futures, sale
Swaps 1,390,071 9,006 575,317 -5,938
Options, purchase 65,823 8,216 176,583 7,635
Options, sale 65,823 -8,216 176,583 -7,635
Share contracts
Forward transactions/futures, purchase
Forward transactions/futures, sale
Options, purchase
Options, sale
Derivative financial instruments - continued
DKK 1,000
Total net
Total nominal value market value
2009 2008 2009 2008
Foreign-exchange contracts
Forward transactions/futures, purchase 2,416,314 3,721,755 29,597 -51,087
Forward transactions/futures, sale 4,424,306 3,596,773 -8,954 -55,513
Swaps 1,635,884 1,308,938 -10,931 -108,896
Options, purchase
Options, sale
Interest-rate contracts
Forward transactions/futures, purchase 3,262 23,934 19 513
Forward transactions/futures, sale 119,642 26,878 -131 -704
Swaps 2,229,563 3,191,782 2,239 2,661
Options, purchase 416,184 22,262
Options, sale 416,184 -22,262
Share contracts
Forward transactions/futures, purchase 2 2
Forward transactions/futures, sale 2 -2
Options, purchase 7 32 31
Options, sale 7 32 -31
Net market value, total 11,839 -213,026
Market value Average market value
Positive Negative Positive
Negative
2009 2008 2009 2008 2009 2008 2009 2008
Foreign-exchange contracts
Forward transactions/
futures,
purchase 36,571 48,828 6,974 99,915 32,666 33,557 20,608 22,735
Forward transactions/
futures,
sale 17,507 42,924 26,461 98,437 25,038 31,210 13,995 21,785
Swaps 46,473 29,897 57,404 138,793 25,601 15,543 70,987 56,263
Options, purchase
Options, sale
Interest-rate contracts
Forward transactions/
futures, purchase 19 513 52 160 150
Forward transactions/
futures, sale 19 131 723 7 126 103 191
Swaps 67,353 62,372 65,114 59,711 60,491 56,299 71,099 37,720
Options, purchase 22,262 10,784
Options, sale 22,262 10,784
Share contracts
Forward transactions/
futures, purchase 2 7 79 7,568
Forward transactions/
futures, sale 2 7,568 13 79
Options, purchase 31 25 12
Options, sale 31 25 12
Total 190,185 184,586 178,346 397,612 154,671 144,554 187,614 146,503
All contracts of derivative financial instruments are non-guanteed contracts.
Summary DKK 1,000 2009 2008 2007 2006 2005
Profit and loss account
Interest receivable 993,756 1,221,165 1,031,830 705,949 500,547
Interest payable 377,728 669,149 570,690 309,366 166,080
Net income from interest 616,028 552,016 461,140 396,583 334,467
Interest-like commission income 9,266 20,690 17,376 19,963 23,308
Dividend on capital shares etc. 3,243 1,491 2,386 4,596 3,979
Income from fees and commissions 140,362 155,428 207,977 188,587 159,995
Fees and commissions paid 23,823 28,464 35,599 30,464 34,451
Net income from interest and fees 745,076 701,161 653,280 579,265 487,298
Value adjustments +58,130 -43,577 +17,965 +128,979 +56,237
Other operating income 5,351 4,863 7,443 4,717 2,650
Staff and administration costs 235,604 236,056 229,755 204,038 187,426
Amortisations, depreciations and
write-downs on intangible and
tangible
assets 2,424 2,420 4,647 4,517 2,421
Other operating costs 56 86 16 5 48
Guarantee commission, national bank
package I 55,785 16,148 0 0 0
Write-downs on loans -158,600 -77,223 +10,791 +69,027 +5,047
Write-downs on national
bank package I etc. -51,173 -12,016 0 0 0
Result of capital shares in associated
companies -59 -5 -11 0 +144
Profit before tax 304,856 318,493 455,050 573,428 361,481
Tax 72,775 78,495 106,730 141,046 96,885
Profit for the financial year 232,081 239,998 348,320 432,382 264,596
Summary DKK 1,000 End 2009 End 2008 End 2007 End 2006 End 2005
Balance sheet
Assets
Cash in hand and claims on credit
institutions and central banks
2,534,722 2,087,959 4,337,064 3,339,743 2,226,283
Loans and other debtors at
amortised cost
price 13,047,212 13,897,101 14,134,637 12,760,168 10,023,406
Securities 1,936,663 1,553,741 914,421 967,102 929,444
Tangible assets 79,644 77,730 75,126 66,143 62,015
Other assets 329,715 385,222 172,480 136,202 119,456
Total assets 17,927,956 18,001,753 19,633,728 17,269,358 13,360,604
Liabilities and equity
Debt to credit institutions and
central banks
Term to maturity under 1 year 699,732 2,077,112 4,307,206 6,535,577 4,405,610
Term to maturity over 1 year 2,294,991 3,224,050 3,132,755 1,274,603 671,445
Deposits and other debts 11,187,470 9,072,875 9,161,775 7,046,159 6,291,696
Issued bonds 557,337 478,341 474,287 2,955 0
Other liabilities 365,021 652,505 285,348 198,336 256,358
Provisions for liabilities 72,238 21,096 19,933 21,650 19,821
Subordinated debt 695,394 690,984 473,863 479,288 200,952
Share capital 25,200 25,200 26,200 26,400 26,400
Reserves 2,030,573 1,759,590 1,752,361 1,684,390 1,488,322
Total shareholders' equity 2,055,773 1,784,790 1,778,561 1,710,790 1,514,722
Total liabilities and
equity 17,927,956 18,001,753 19,633,728 17,269,358 13,360,604
Contingent liabilities etc.
Contingent liabilities 1,485,676 2,386,213 4,803,839 4,803,619 5,141,858
Binding agreements 0 0 3,995 3,695 53,140
Total contingent liabilities
etc. 1,485,676 2,386,213 4,807,834 4,807,314 5,194,998
2009 2008 2007 2006 2005
Solvency:
Solvency ratio % 20.2 16.3 13.0 12.3 11.6
Core capital ratio % 16.6 13.0 11.2 10.4 11.6
Earnings:
Pre-tax return on equity % 15.9 17.9 26.1 35.6 25.0
Return on equity after tax % 12.1 13.5 20.0 26.8 18.3
Income/cost ratio DKK 1.61 1.93 3.04 5.11 2.95
Market risk:
Interest rate risk % 0.6 1.2 1.0 1.6 1.7
Foreign exchange position % 3.4 5.6 2.1 4.1 1.7
Foreign exchange risk % 0.1 0.0 0.0 0.0 0.0
Liquidity risk:
Excess cover relative to statutory
liquidity
requirements % 205.6 139.1 161.4 134.3 88.5
Loans and write-downs thereon
relative to
deposits % 120.8 157.1 157.4 185.2 164.9
Credit risk:
Loans relative to shareholders' equity 6.3 7.8 7.9 7.5 6.6
Growth in loans for the year % -6.1 -1.7 10.8 27.3 39.0
Total large exposures % 0.0 12.1 38.3 116.1 73.3
Cumulative write-down percentage % 3.1 2.1 1.5 1.7 2.3
Write-down percentage for the year % 1.16 0.48 -0.06 -0.39 -0.03
Proportion of debtors at reduced interest % 0.4 0.1 0.1 0.1 0.2
Share return:
Profit for the year after tax per
share*/*** DKK 921.0 933.8 1,324.4 1,637.8 1,002.3
Book value per share*/** DKK 8,172 7,382 7,053 6,631 5,862
Dividend per share* DKK 0 0 600 600 550
Share price relative to profit for
the year per
share*/*** 13.2 6.6 13.0 13.2 15.0
Share price relative to book value per share*/** 1.49 0.84 2.43 3.26 2.56
* Calculated on the basis of a denomination of DKK 100 per share.
** Calculated on the basis of number of shares outstanding at the end of the
year.
*** Calculated on the basis of the average number of shares. The average number
of shares is calculated as a simple average of the shares at the beginning of
the year and at the end of the year.
Definitions of the official key figures/ratios from the Danish Financial
Supervisory Authority
Solvency ratio
Capital base after deductions in per cent of total risk weighted
assets.
Core capital ratio
Core capital after deductions (incl. hybrid core capital) in
per cent of total risk weighted assets.
Pre-tax return on equity
Profit before tax in per cent of average shareholders'
equity. The average shareholders' equity is calculated as a simple average of
the shareholders' equity at the beginning of the year and at the end of the
year.
Return on equity after tax
Profit after tax in per cent of average shareholders'
equity. The average shareholders' equity is calculated as a simple average of
the shareholders' equity at the beginning of the year and at the end of the
year.
Income/cost ratio
Net income from interest and fees, value adjustments, other
operating income and result of capital shares in associated companies in per
cent of staff and administration costs, amortisation, depreciation and
write-downs on intangible and tangible assets, other operating costs and
write-downs on loans and debtors etc.
Interest rate risk
Interest rate risk in per cent of core capital after
deductions (incl. hybrid core capital).
Foreign exchange position
Foreign exchange indicator 1 in per cent of core
capital after deductions (incl. hybrid core capital).
Foreign exchange risk
Foreign exchange indicator 2 in per cent of core capital
after deductions (incl. hybrid core capital).
Excess coverage relative to statutory liquidity requirements
Cash in hand,
claims at notice on the Central Bank of Denmark, absolutely secure and liquid
demand deposits with credit institutions and insurance companies, unpledged
certificates of deposit issued by the Central Bank of Denmark, secure and liquid
listed unpledged securities, unpledged temporary loan framework in the form of
temporary expansion of the security base (interim option partly until 30
September 2010 and partly until 30 December 2013) and in form of loan facility
based on excess statutory solvency with the Central Bank of Denmark (interim
option until 30 September 2010) in per cent of 10% of reduced liabilities and
guarantee commitments.
Loans and write-downs thereon relative to deposits
Loans + write-downs thereon
in per cent of deposits.
Loans relative to shareholders' equity
Loans/shareholders' equity.
Growth in loans for the year
Growth in loans from the beginning of the year to
the end of the year, in per cent.
Total large exposures
The total sum of large exposures in per cent of the
capital base after deductions.
Cumulative write-down percentage
Write-downs on loans and provisions for losses
on guarantees in per cent of loans + write-downs on loans + guarantees +
provisions for losses for guarantees.
Write-down percentage for the year
Write-downs etc. for the year in per cent of
loans + write-downs on loans + guarantees + provision for losses on guarantees.
Proportion of debtors at reduced interest
Proportion of debtors at reduced
interest before write-downs etc. in per cent of loans + write-downs on loans +
guarantees + provision for losses on guarantees.
Profit for the year after tax per share*/***
Profit for the year after
tax/average number of shares.
Book valve per share*/**
Shareholders' equity/share capital excl. own shares.
Dividend per share*
Proposed dividend/share capital.
Share price relative to profit for the year per share*/***
Share price/profit
for the year per share.
Share price relative to book value per share*/**
Share price/book value per
share.
*/**/***: See page 72.
Shareholders' committee
Jens Møller Nielsen, manager, Ringkøbing, - born 1956
chairman of the
shareholders' committee
Else Kirkegaard Hansen, senior master, Ringkøbing, - born 1954
deputy
chairman of the shareholders' committee
Find Andersen, manager, Ådum - born 1943
Hejne F. Andersen, industrialist, Ringkøbing - born 1954
Jens Arnth-Jensen, manager, Holte - born 1948
Gert Asmussen, printer, Tarm - born 1950*
Inge Sandgrav Bak, financial manager, Ringkøbing - born 1960
Claus H. Christensen, farmer, Lem - born 1961
Claus Dalgaard, manager, Ringkøbing - born 1962
Per Dam, accountant, Ulfborg - born 1952
Viktor Degn, school principal, Hvide Sande - born 1945
Ole K. Erlandsen, butcher, Herning - born 1962
Keld Hansen, grocer, Søndervig - born 1948*
Niels Ole Hansen, manager, Ringkøbing - born 1951
Tonny Hansen, college principal, Ringkøbing - born 1958
Leif Haubjerg, farmer, No - born 1959
Erik Jensen, haulage contractor, Skjern - born 1965
Niels Esper Kamp, farmer, Stadil - born 1957
Jens Lykke Kjeldsen, timber merchant, Ringkøbing - born 1950*
Niels Kjeldtoft, teacher, Spjald - born 1945
Gravers Kjærgaard, farmer, Grønbjerg - born 1952*
Lars Møller, municipal chief executive, Holstebro - born 1957
Ole Christian Pedersen, manager, Vostrup - born 1950
Kristian Skannerup, industrialist, Tim - born 1959
Jørgen Kolle Sørensen, car dealer, Hvide Sande - born 1970
Johan Chr. Øllgaard, industrialist, Stauning - born 1947
* Member of the board of directors
Board of directors
Jens Lykke Kjeldsen, timber merchant, Ringkøbing, chairman of the board of
directors - born 1950
Member of the bank's auditing committee
Member of the
board of directors since 1995
End of current term of election to the board of
directors: 2012
Other managerial activities - member of the board of management
of:
A/S af 1. august 1989
A/S Henry Kjeldsen
A/S Miljøpark Vest
Asta og
Henry Kjeldsens Familiefond
Danbuy A.m.b.A.
Henry Kjeldsen, Ringkøbing
Tømmerhandel A/S
VT Hallen A/S
Gravers Kjærgaard, farmer, Grønbjerg, deputy chairman of the board of directors
- born 1952
Member of the bank's auditing committee
Member of the board of
directors since 2002
End of current term of election to the board of directors:
2013
No other managerial activities
Gert Asmussen, printer, Tarm - born 1950
Member of the bank's auditing
committee
Member of the board of directors since 2002
End of current term of
election to the board of directors: 2010
Other managerial activities - member of
the board of management of:
A. Rasmussens Bogtrykkeri ApS
Gert Asmussen
Holding A/S
Gullanders Bogtrykkeri A/S
Tarm Bogtryk A/S
Tarm Elværk Net
A/S
Tarm Ugeblad ApS
TB Anlæg ApS
Vestjysk Rotation af 8. maj 2008
A/S
Vinderup Invest ApS
Keld Hansen, grocer, Søndervig - born 1948
Member of the board of directors
since 2002
End of current term of election to the board of directors: 2010
Other
managerial activities - member of the board of management of:
A/S Miljøpark
Vest
Beach Bowl A/S
Investeringsselskabet Søndervig ApS
Norddan-Søndervig
ApS
Søndervig Ejendomsselskab ApS
Søndervig Holding ApS
Søndervig Supermarked
ApS
Bo Bennedsgaard, IT consultant, Ringkøbing, elected by the employees - born
1972
Member of the board of directors since 2007
End of current term of election
to the board of directors: 2011
No other managerial activities
Søren Nielsen, costumer adviser, Holstebro, elected by the employees - born
1954
Member of the board of directors since 2003
End of current term of election
to the board of directors: 2011
No other managerial activities
Board of managers
Bent Naur, executive general manager - born 1947
Member of the board of managers
since 1987
Member of the boards of directors of:
The Danish Bankers Association,
Copenhagen
The Danish Contingency Committee, Copenhagen
Association of Local
Banks, Savings Banks and Cooperative Savings Banks in Denmark,
Copenhagen
Bankdata, Fredericia
Nykredit Holding A/S, Copenhagen
PRAS A/S,
Copenhagen
Totalkredit A/S, Taastrup, Copenhagen
John Bull Fisker, general manager - born 1964
Member of the board of managers
since 1999
Member of the boards of directors of:
BankInvest Holding A/S, Copenhagen
BI
Asset Management Fondsmæglerselskab A/S, Copenhagen
BI Technology A/S,
Copenhagen
Letpension Holding A/S, Søborg, Copenhagen
Letpension IT A/S,
Søborg, Copenhagen
Letpension, Livs- og Pensionsforsikringsselskab A/S, Søborg,
Copenhagen
Member of the customer board of:
PFA Pension A/S, Copenhagen
Ringkjøbing Landbobank Aktieselskab
Torvet 1
DK-6950 Ringkøbing
Denmark
Founded: 1886
Phone: +45 9732
1166
Telefax: +45 9732 1800
E-mail: post@landbobanken.dk
Website:
www.landbobanken.com
CVR-no.: 37 53 68 14
Bank registration number in Denmark:
7670
SWIFT/BIC: RINGDK22
Share capital
Ringkjøbing Landbobank's share capital is DKK 25.2 million in 5,040,000 shares
of DKK 5.
Ownership
Ringkjøbing Landbobank is owned by approx. 18,600 shareholders.
We report as required by Section 28a of the Danish Companies Act that ATP,
Hillerød, has advised that they own more than 5% of the bank's share capital.
Stock exchange announcements 2009
Review of Ringkjøbing Landbobank's announcements to NASDAQ OMX Copenhagen and
others in 2009 in compliance with Section 27b of the Danish Securities Trading
Act:
4 February 2009 Announcement of the annual accounts 2008
4 February 2009 Annual
report 2008
6 February 2009 Notice convening the annual general meeting
the
25 February 2009
26 February 2009 Information of the development of the annual
general meeting
the 25 February 2009
3 March 2009 Articles of association
of the 25 February 2009
22 April 2009 Quarterly report 1st quarter 2009
5
August 2009 Interim report for the 1st half 2009
21 October 2009 Quarterly
report 1st-3rd quarter 2009
21 October 2009 Financial calendar
Announcements regarding insiders' transactions with the Ringkjøbing Landbobank
share from executive employees and their closely related do not emerge from the
above review.
All the announcements from the bank to NASDAQ OMX Copenhagen and others can be
seen on the website: www.landbobanken.com.
Financial calendar 2010
The financial calendar for the upcoming publications is as follows:
24 February 2010 General meeting
21 April 2010 Quarterly report - 1st quarter
2010
11 August 2010 Interim report 2010
27 October 2010 Quarterly report -
1st-3rd quarter 2010
Head office:
Ringkøbing
Branches:
Herning
Investcenter Herning
Holstebro
Hvide Sande
Lem
Spjald
Tarm
Thorsminde
Tim
Ulfborg
Viborg
Vildbjerg
