Quarterly Report for Q1-Q3 2011

| Source: Vestjysk Bank A/S Vestjysk Bank A/S

27 October 2011

vestjyskBANK Strengthens Earning Power
Summary of results for the period Q1–Q3 2011

  • Core income of DKK 825 million (DKK 822 million in Q1–Q3 2010)
  • Rate of cost of 54.0 percent (56.6 percent in Q1-Q3 2010)
  • Core earnings before impairments of DKK 380 million (DKK 357 million in Q1–Q3 2010)
  • Impairments of loans and receivables, excl. the Private Contingency Association (Det Private Beredskab), of DKK 258 million, corresponding to 1.2 percent on an annual basis (DKK 262 million in Q1-Q3 2010)
  • Profit before tax of DKK 29 million—an improvement of DKK 80 million over Q1-Q3 2010
  • Lending reduced by 2.5 percent compared to end of June 2011
  • Deposits of DKK 14.5 billion, compared to DKK 14.4 billion after Q2 2011
  • Excess liquidity cover of 73.4 percent, solvency ratio of 14.3 percent and core capital ratio of 12.2 percent end of September 2011
  • Expectations for core earnings before impairments of a minimum of DKK 500 million, a rate of cost of 55 percent as well as impairments of loans and receivables at the level of 1.5 percent for the fiscal year 2011.

Statement by CEO Frank Kristensen:

"In a quarter strongly impacted by rising economic uncertainty and challenging market conditions, vestjyskBANK has managed to improve its results. The core earnings for Q3 of DKK 146 million show the Bank's best quarterly results in two years and have been generated through our targeted efforts to strengthen our income platform and attain a high level of cost-effectiveness—and that with balance sheet figures smaller than at the beginning of the year. Since 1 January 2011 we have reduced our lending by nearly 4 percent or DKK 900 million, of which DKK 567 million was in Q3; and we have strengthened our deposits through advertising campaigns," says CEO Frank Kristensen.

"The growing economic uncertainty has resulted in increased risk and need for impairments on Danish companies. With an outlook suggesting a tightening of the market conditions, we expect that the impairment need will increase in the fourth quarter," says Frank Kristensen and concludes, "The uncertainty does not seem to be decreasing in the near future. That is why we must continue our efforts to ensure that our business develops soundly, in a manner that can strengthen our long-term earning power."

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