2021 Highlights
As mentioned in the 2021 interim reports, the performance was strongly affected by non-recurring income and costs in connection with the merger with
The merger with
Alongside the merger process, Vestjysk Bank’s efforts to develop the business focus have produced satisfactory results. In addition to its focus on servicing both retail and business customers in local branches, the Bank is giving more attention to its niche areas (healthcare, renewable energy, tourism, fisheries and agriculture), most recently by establishing a Fisheries Centre in Thyborøn.
The profit for the year was not directly affected by the coronavirus pandemic. The profit was impacted by the impairment provision for economic uncertainty caused by the pandemic. The growing uncertainty regarding African Swine Fever (ASF) also caused the Bank to increase its impairment provision at
In connection with the Bank's budget and forecast updates in Q4 2021, the deferred tax asset was increased by additional tax income of
The highlights below were calculated after adjustment for non-recurring items resulting from the merger with
- Profit after tax of
DKK 725 million (31 December 2020 :DKK 303 million ). - Return on equity of 14.7% p.a. after tax (
31 December 2020 : 9.8%). - Core income of
DKK 1,538 million (31 December 2020 :DKK 887 million ). - Cost ratio of 60.8% (
31 December 2020 : 59.8%) - Core earnings before impairment allowances of
DKK 614 million (31 December 2020 :DKK 357 million ). - Net reversals of impairment of loans and receivables, etc. of
DKK 20 million (31 December 2020 : net impairment ofDKK 29 million ). - Common equity tier 1 capital ratio of 16.7% (
31 December 2020 : 20.9%).
Follow-up on outlook for 2021 and Vestjysk Bank’s outlook for 2022
In connection with the annual report for 2020, the Bank guided a profit after tax in the range of
The Bank has subsequently upgraded the guidance three times – on
The reported profit for 2021 was in accordance with the Bank’s forecast.
The uncertainty mainly relates to the Bank’s agricultural exposures. Particularly, uncertainties related to rising animal feeding and energy prices and the risk of ASF (African Swine Fever) spreading in
Enquiries
Please address any enquiries regarding the present announcement to Jan Ulsø Madsen, CEO, at tel. (+45) 96 63 21 04.
Chairman CEO
Industrivej Syd 13C
7400 Herning
Tel. (+45) 96 63 20 00
CVR no. 34 63 13 28
www.vestjyskbank.dk
Attachments
- 2021-vestjyskbank-eng
- 2021 Vestjysk Bank ENG - unofficial
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