Interim financial statements
Announcement no. 21/2019
Strong customer activity in Q1 2019
“While net interest income was down due to persistent margin pressure, net fee and commission income was elevated by strong customer activity in the first quarter of 2019. In particular, an inflow of new customers in Denmark had a positive impact on mortgage sales. Operating costs, on the other hand, were higher during the quarter, but we remain steadfast in targeting almost flat expenditure level of around DKK 460m for FY2019,” said BankNordik CEO, Árni Ellefsen.
“In addition to our commitment to improving the customer experience and strengthening the Group’s customer relationships, we continued to advance the optimisation of processes and apply technology to increase productivity and our cost structure for the long term,” said Mr. Ellefsen.
Highlights of BankNordik's interim report for the first quarter of 2019:
Q1 2019 vs. Q1 2018
Q1 2019 vs. Q4 2018
Capital ratios
The Group’s CET1 capital ratio was down by 0.5 of a percentage point quarter-on-quarter to stand at 17.2% at 31 March 2019. The total capital ratio decreased to 19.2% at 31 March 2019 from 19.8% at 31 December 2018.
Net income in 2019 will not be recognised in the capital and solvency statement until the annual report is released in audited form.
Outlook
Management reconfirms the FY2019 guidance of operating profit before impairment charges in the range of DKK 160–200m in 2019 (Q1 2019: DKK 38m), while net profit is expected to be at the upper end of the previously announced range of DKK 100–150m (Q1 2019: DKK 52m).
This guidance is generally subject to uncertainty and will, amongst other things, depend on economic conditions, loan impairments and market value adjustments.
For additional information, please contact:
Árni Ellefsen, CEO, tel. (+298) 230 348
BankNordik has banking activities in Denmark, Greenland and the Faroe Islands and insurance activities in the Faroe Islands. Founded in the Faroe Islands more than a century ago, the Group has total assets of DKK 17.4bn and 393 employees. The Bank is subject to the supervision of the Danish Financial Supervisory Authority and is listed on Nasdaq Copenhagen.
Appendix: Financial highlights and comparative figures are provided below.
Financial highlights
DKK million | Q1 2019 | Q4 2018 | Q3 2018 | Q2 2018 | Q1 2018 |
Net interest income | 91 | 92 | 94 | 93 | 94 |
Net fee and commission income | 48 | 42 | 43 | 43 | 44 |
Income from insurance operations | 9 | 13 | 13 | 6 | 12 |
Other operating income | 11 | 9 | 10 | 15 | 12 |
Operating income* | 158 | 156 | 160 | 157 | 162 |
Operating costs* | -120 | -115 | -111 | -116 | -115 |
Sector costs, etc. | 0 | 0 | 0 | 0 | 0 |
Operating profit before impairment charges* | 38 | 42 | 49 | 42 | 47 |
Loan impairment charges, net | 19 | 18 | 39 | 23 | 31 |
Operating profit* | 57 | 60 | 88 | 65 | 77 |
Non-recurring items | 0 | -10 | -6 | 12 | 76 |
Profit before value adjustments and tax | 57 | 50 | 81 | 76 | 154 |
Value adjustments | 8 | -12 | -3 | -17 | -6 |
Profit/loss before tax | 65 | 38 | 78 | 59 | 148 |
Deposits, etc. DKKbn | 14.0 | 13.4 | 13.2 | 13.1 | 13.1 |
Loans and advances, etc. DKKbn | 10.0 | 10.0 | 10.0 | 9.7 | 9.6 |
Mortgage lending DKKn | 12.5 | 12.2 | 12.1 | 11.9 | 11.9 |
Equity, DKKbn | 2.0 | 2.0 | 1.9 | 1.9 | 1.9 |
Solvency ratio | 19.2% | 19.8% | 17.6% | 18.5% | 18.9% |
Excess liquidity relative to statutory requirement | 222% | 213% | 219% | 225% | 218% |
Operating cost/income | 76% | 73% | 69% | 73% | 71% |
Number of FTE, end of period | 393 | 393 | 385 | 390 | 387 |
* Excluding non-recurring items and value adjustments.
Further details are available from the interim report.
Attachments