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    RILBA   DK0060854669

RINGKJØBING LANDBOBANK A/S

(RILBA)
  Report
Delayed Quote. Delayed Nasdaq Copenhagen - 11/30 10:59:42 am
867 DKK   +2.36%
11/29Share buy-back programme – week 47
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Ringkjøbing Landbobank's quarterly report for the first three quarters of 2021

10/27/2021 | 01:31am EST

Nasdaq Copenhagen
London Stock Exchange
Euronext Dublin
Other stakeholders

27 October 2021


Ringkjøbing Landbobank’s quarterly report for the first three quarters of 2021

The bank delivers core earnings of DKK 1,121 million and profit before tax of DKK 1,105 million. The profit before tax is equivalent to a 17.6% p.a. return on equity.


Core earnings

(DKK million)Q1-Q3
2021
Q1-Q3
2020

2020
2019 2018
2017
Total core income1,7821,6132,1792,1162,0011,917
Total expenses and depreciation600576788805866845
Core earnings before impairment charges for loans1,1821,0371,3911,3111,1351,072
Impairment charges for loans etc.-61-185-223-100-43-70
Core earnings1,1218521,1681,2111,0921,002
Result for the portfolio etc.-4-24-9+49+77+84
Special costs1211151521722
Profit before tax1,1058171,1441,2459521,064


Highlights of the first three quarters of 2021

  • The profit before tax is DKK 1,105 million, equivalent to a 17.6% p.a. return on equity
  • Core income increases by 11% to DKK 1,782 million following nine months of high activity levels
  • Expenses increase by 4% to DKK 600 million
  • The rate of costs decreases to 33.7%
  • Continued increase in new customers results in growth of 9% in the bank’s loans compared to September 2020
  • The purchase of BIL Danmark was satisfactorily completed and implemented in the third quarter
  • Image and customer satisfaction are rated among the best in Voxmeter surveys
  • The results for the year are expected to be at the upper end of the upwardly adjusted ranges.


Yours sincerely

Ringkjøbing Landbobank

John Fisker


Management’s review

Core income

Interest
Net interest income was DKK 988 million in the first three quarters of 2021, compared to DKK 935 million in the same period in 2020, an increase of 6%. The bank is satisfied with this development.

The development is partly attributable to a 9% increase in lending compared to the end of September 2020 including the clients taken over from BIL Danmark, while the increase excluding them was 7%. The increase in lending is broadly based and relates to both niches and retail.

The interest margin was slightly lower in the third quarter compared to a year ago, although the bank lowered the threshold for negative interest on personal customers’ deposits to DKK 100,000 with effect from the beginning of January 2021. With effect from 1 July 2021, the bank lowered the interest rate on deposits from business customers. The interest margin on the bank’s loans has thus been under pressure.

The deposit interest rate for corporate customers will be lowered by 0.1 percentage points by early November 2021 and by early December 2021 also for private customers. This is due to the lowering of the interest rate by Denmark’s National Bank per 1. October 2021.


Fee, commission, and foreign exchange income
Fee, commission, and foreign exchange income amounted to DKK 657 million in the first three quarters of 2021, compared to DKK 569 million in the same period in 2020, an increase of 15%. The bank is highly satisfied with this development, and the increase reflects a very high level of activity – especially in the first quarter of the year. However, the general levels of activity in both the second and third quarters of 2021 continued at a higher level.

The bank’s focus on the private banking segment has had a positive effect on the “Securities trading”, “Asset management and custody accounts” and “Foreign exchange income” items in particular.

Due to the high levels of activity and the continued large increase in new customers, the item “Guarantee commission and mortgage credit commission etc.” also developed positively compared to the first three quarters of 2020. The item “Loan fees” also increased in 2021, although the respective activity level has been declining slightly during 2021.

Initiatives aimed at normalising the income from payment handling activities were announced with effect from 1 April 2021. These initiatives are reflected in the income from “Payment handling”, which has improved compared to the first three quarters of 2020.

The income from “Other fees and commission” developed positively compared to 2020. This is partly attributable to the bank’s focus on the pension and insurance activities.


Sector shares and other operating income
Earnings from sector shares totalled DKK 132 million in the first three quarters of 2021, compared to DKK 108 million in the same period in 2020. The earnings derive primarily from returns on the bank’s ownership interests in DLR Kredit, BankInvest (BI Holding) and PRAS.

Other operating income stood at DKK 5 million in the first three quarters of the year, in contrast to 2020, when the figure was DKK 1 million. The other operating income for the year relates primarily to the sale of a property.


Core income
Total core income increased by 11%, from DKK 1,613 million in 2020 to DKK 1,782 million in 2021.


Expenses, depreciation, and write-downs
Total expenses including depreciation and write-downs on tangible assets amounted to DKK 600 million in the first three quarters of 2021, compared to DKK 576 million in 2020, an increase of 4%.

The increase in the cost level reflects the high levels of activity and the purchase of BIL Danmark.

The rate of costs was 33.7% in the first three quarters of the year, compared to 35.7% in 2020.


Impairment charges for loans etc.
The bank’s expenditure for losses and impairment charges was DKK 13 million in the third quarter of 2021, compared to DKK 19 million in the second quarter and DKK 29 million in the first quarter. The total expenditure for losses and impairment charges was DKK 61 million in the first nine months of the year, compared to DKK 185 million in the same period in 2020.

The bank’s expenditure for losses and impairment charges has thus fallen each quarter since the first quarter of 2020.

The credit quality of the bank’s loans portfolio is generally judged to be good. The negative consequences of the coronavirus pandemic have so far been very limited for the vast majority of the bank’s customers. However, over the last few months we have seen growing challenges for several businesses due to shortages of components and increasing cost prices, including increasing energy prices. There is also still some risk associated with ending of the government’s loan schemes, which has now been postponed to 2022.

The bank increased its management estimates for losses and impairment charges considerably during 2020, from DKK 126 million to DKK 566 million. At the end of the third quarter of 2021, the management estimates increased to DKK 614 million.

Among industry-specific events is the considerable decrease in pig prices during the third quarter. The prices paid to farmers are currently at a level which results in operating losses for the vast majority of pig producers. Loans and guarantees to pig farms accounted for 1.3% of the bank’s total exposure at the end of September, and the bank’s impairment ratio was 26%.

The credit quality of the bank’s personal customers is generally judged to be good. The marked price increases on the housing market in the past few quarters have increased the wealth of many of them. On the other hand, the bank is aware that the continuing rise in house prices may lead to an increased risk – in particular in respect of first-time buyers.

The bank’s total account for impairment charges was DKK 2,287 million at the end of September 2021 compared to DKK 2,205 million at the end of 2020. Fifty-one percent of the total account for impairment charges was classified as stage 1 or 2 exposures.

The bank’s total loans to customers with suspended calculation of interest were DKK 142 million at the end of September 2021, compared to DKK 265 million at the end of December 2020.


Core earnings
Core earnings for the first three quarters of 2021 were DKK 1,121 million compared to last year’s DKK 852 million, an increase of 32%.

(DKK million)Q1-Q3
2021
Q1-Q3
2020

2020
2019 2018
2017
Total core income1,7821,6132,1792,1162,0011,917
Total expenses and depreciation600576788805866845
Core earnings before impairment charges for loans1,1821,0371,3911,3111,1351,072
Impairment charges for loans etc.-61-185-223-100-43-70
Core earnings1,1218521,1681,2111,0921,002

Core earnings per share were DKK 39.1 for the first three quarters of 2021 compared to DKK 29.3 in 2020.


Result for the portfolio etc.
The result for the portfolio etc. including funding costs for the portfolio was negative by DKK 4 million net for the first three quarters of the year. In the same period in 2020, the result for the portfolio etc. was negative by DKK 24 million net. The result for the portfolio in the third quarter of 2021 was negative by DKK 1 million, due to increases in long-term interest rates.


Amortisation and write-downs on intangible assets
The bank treats amortisation and write-downs on intangible assets as a special item, since expensing them enhances the quality of equity and helps to reduce the deduction when computing total capital. Amortisation and write-downs on intangible assets amounted to DKK 12 million in the first three quarters of the year, which is marginally higher than in 2020, due to amortisation of the purchase of the client portfolio from BIL Danmark.


Profit before and after tax
The profit before tax was DKK 1,105 million, equivalent to a 17.6% p.a. return on average equity.

The profit after tax was DKK 875 million, equivalent to a 14.0% p.a. return on average equity.


Balance sheet items and contingent liabilities
The bank’s balance sheet total at the end of September 2021 stood at DKK 57,562 million, compared to DKK 53,956 million at the end of September 2020.

Relative to September 2020, the bank’s deposits including pooled schemes increased by 6% from DKK 39,204 million to DKK 41,475 million at the end of September 2021, while its loans in the same period increased by 9% from DKK 35,479 million to DKK 38,849 million.

The bank’s contingent liabilities including guarantees at the end of September 2021 amounted to DKK 10,886 million, compared to DKK 9,590 million at the end of September 2020.


Credit intermediation
In addition to the traditional bank loans shown on its balance sheet, the bank also arranges mortgage loans on behalf of both Totalkredit and DLR Kredit.

The development in the bank’s total credit intermediation is positive by 9% compared to the end of September 2020. The development is shown in the following summary:

Total credit intermediation30 Sep.
2021
DKK million
30 Sep.
2020
DKK million
31 Dec.
2020
DKK million
Loans and other receivables at amortised cost38,84935,47936,241
Arranged mortgage loans and funded home loans – Totalkredit42,70238,74039,454
Arranged mortgage loans – DLR Kredit9,8189,4529,511
Total91,36983,67185,206


Securities and market risk
The item “Shares etc.” amounted to DKK 1,418 million at the end of September 2021, with DKK 27 million in listed shares and investment fund certificates and DKK 1,391 million in sector shares etc., mainly in the companies DLR Kredit, BI Holding and PRAS.

The bond portfolio amounted to DKK 6,428 million, of which the vast majority consisted of AAA-rated Danish government and mortgage credit bonds.

The total interest rate risk – impact on profit of a one percentage point change in interest level – was computed as 0,6% of the bank’s tier 1 capital on 30 September 2021.

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 the first three quarters of 2021:

 Risk in DKK millionRisk relative to equity
end of period in %
Highest risk of loss15.0 0.17%
Lowest risk of loss4.4 0.05%
Average risk of loss10.3 0.12%
End-of-period risk of loss5.3 0.06%

The bank’s total market risk within exposures to interest rate risk, listed shares etc. and foreign currency remains at a moderate level, and this policy will continue.


Liquidity
The bank’s liquidity situation is good. The bank’s short-term funding with term to maturity of less than 12 months thus amounts to DKK 1.5 billion, balanced by DKK 10.0 billion in short-term deposits in Danmarks Nationalbank, the central bank of Denmark, and in liquid tradable securities.

The bank’s deposits (excluding pooled schemes) and equity exceeded its loans by DKK 6.0 billion and these two items therefore more than fully finance the loan portfolio. In addition, part of the loan portfolio for renewable energy projects is financed back-to-back with KfW Bankengruppe, which means that DKK 1.1 billion can be disregarded in terms of liquidity.

In terms of liquidity coverage ratio (LCR), the bank must comply with the statutory requirement of at least 100%. On 30 September 2021, the bank’s LCR was 196%, which thus met the statutory requirement by a good margin.


Capital structure
The bank’s equity at the beginning of 2021 was DKK 8,146 million. The profit for the period must be added to this, while the dividend paid, and the value of the bank’s own shares bought must be subtracted. After this, equity at the end of September 2021 was DKK 8,563 million.

The bank’s total capital ratio and tier 1 capital ratio were 21.0% and 17.4% respectively at the end of September 2021.

Capital ratiosQ3
2021
Q3
2020

2020
20192018
Common equity tier 1 capital ratio (%)17.417.817.514.714.6
Tier 1 capital ratio (%)17.417.817.514.714.6
Total capital ratio (%)21.021.621.120.018.4
MREL requirement (%) – fixed by the Danish FSA17.920.217.920.719.7
MREL capital ratio (%)26.829.226.727.324.9

A new five-year phasing-in period for the dynamic component of the IFRS 9 transitional arrangements was introduced in 2020. The bank now uses both the static and the dynamic components of the IFRS 9 transitional arrangements, including the simplified approach to recalculation of capital requirements.

Calculated without the IFRS 9 transition programmes, the bank’s total capital ratio was 19.7% and the common equity tier 1 capital ratio 16.1% on 30 September 2021.

In the second quarter of 2021, the bank started using a new system for calculating the risk-weighted items. The system was delivered by Moody’s and implemented at the bank’s IT supplier, Bankdata. The system ensures continuous updating in line with future legislative amendments.

At the end of September 2021, the bank has calculated the individual solvency requirement at 9.3%. To this should be added a capital conservation buffer of 2.5%. The total requirement for the bank’s total capital was thus 11.8% at the end of September 2021.

The countercyclical capital buffer is currently 0%. On 23 June 2021 the Minister for Industry, Business and Financial Affairs decided to re-activate the countercyclical capital buffer at 1.0% from 30 September 2022.

On 28 September 2021, the Systemic Risk Council published a press release stating that the Council expects to recommend a 1.0 percentage point increase of the buffer rate to 2.0% at its meeting in December 2021. This will allow the increase to 2.0% to take effect at the end of 2022. The Council also stated that it is assessing the need for activating the systemic buffer. The Council expects to assess whether the buffer should be activated – and if so at what level – during 2022.

Compared with the actual total capital of DKK 8.7 billion, the bank had excess capital cover of DKK 4.9 billion relative to the individual solvency requirement, equivalent to 11.7 percentage points at the end of September 2021, and excess capital cover of DKK 3.8 billion compared to the total requirement, equivalent to 9.2 percentage points.

In October 2021, the bank issued additional tier 2 capital for a total of DKK 500 million. All else being equal, this improves the total capital ratio by 1.2 percentage points.

In December 2020, the bank received an MREL requirement of 17.9% applicable from 28 December 2020.

The bank operates with three different capital targets. The capital targets specify that the common equity tier 1 capital ratio must be at least 13.5%, the total capital ratio at least 17% and the MREL capital ratio for covering the MREL requirement at least 23.5%, including the capital buffers. Due to the announced increase of the countercyclical capital buffer, the bank’s internal MREL target will be re-assessed during 2022.

All capital targets must be met at the end of the year, but the capital ratios may fluctuate over the year. However, the MREL requirement must always be met.

To meet the MREL requirement the bank has since December 2018 and up to and including September 2021 issued non-preferred senior capital for the equivalent of a total of DKK 1.9 billion. In addition, a total of DKK 0.5 billion can be included. The latter will be phased out with effect from 1 January 2022.

The bank’s capital for covering the MREL requirement totalled DKK 11,2 billion on 30 September 2021, equivalent to an MREL capital ratio of 26.8%. The excess cover relative to the MREL requirement on 30 September 2021 was thus 8.9 percentage points.


Share buy-back programme and capital reduction
The bank’s annual general meeting of 3 March 2021 renewed the previous authorisation of the board of directors to permit the bank, in accordance with applicable law, to acquire its own shares to a total nominal value of 10% of the bank’s share capital.

In the first three quarters of the year, the bank initiated and completed two share buy-back programmes. In the period 4 February to 29 July 2021, a total of 361,605 shares were bought back, the equivalent of DKK 225 million, and in the period 5 August to 28 September 2021, a total of 40,400 shares were bought back, the equivalent of DKK 30 million.

On 15 September 2021, the board of directors decided to initiate a new share buy-back programme. The programme runs from 1 October 2021 up to and including 25 January 2022. During this period the bank will buy its own shares for up to DKK 242.5 million under the programme, but with a maximum of 800,000 shares. The share buy-back amount corresponds to the portion of the buy-back that was planned for 2020 but not executed due to the coronavirus situation. On 22 October 2021, 61,000 shares had been bought back under the programme.

The general meeting further decided to cancel the 160,600 of the bank's own shares that were bought in 2020. The capital reduction was finalised on 6 May 2021.

On 30 September 2021, the bank’s actual share capital was thus DKK 28,665,716 in nom. DKK 1 shares: see below.

 Number of shares
Beginning of 202129,228,321
Capital reduction completed by cancellation of own shares-160,600
After the capital reduction in May 202129,067,721
Share buy-back programmes totalling DKK 255 million 
Bought under the share buy-back programmes-402,005
Actual number of shares on 30 September 202128,665,716
DKK 242.5 million share buy-back programme 
Bought under the share buy-back programme in October 2021-61,800
Actual number of shares on 22 October 202128,603,916


The Supervisory Diamond
The bank complies with the Danish FSA’s Supervisory Diamond which contains a number of benchmarks and associated limit values which Danish banks must observe. With effect from 1 July 2021, the “Funding ratio” benchmark was removed from the Supervisory Diamond.

The Supervisory Diamond benchmarks and limit values and the bank’s key figures are given in the following table.

BenchmarkLimit valueQ3
2021
Q3
2020
2020

2019


2018
Liquidity benchmark> 100%191.3%205.6%177.6%193.2%179.5%
Total large exposures< 175%112.8%104.9%99.8%121.0%106.0%
Growth in loans< 20%9.4%2.1%2.2%6.3%*72.3%
Real property exposure< 25%18.0%18.0%17.9%17.5%15.8%

* The increase was mainly caused by the merger with Nordjyske Bank. The pro forma growth in loans for the full year 2018 was 7.0%.

As shown above, Ringkjøbing Landbobank meets all four current limit values by a good margin.


Rating
The bank is rated by the international credit rating agency Moody’s Investors Service.

Moody’s confirmed the bank’s ratings on 22 September 2021, including Aa3 for long-term bank deposits, P-1 for short-term bank deposits and A1 for long-term issuer – all with stable outlook.


BIL Danmark
In June 2021, the bank entered into an agreement with Banque Internationale à Luxembourg S.A., of Luxembourg, regarding takeover of all BIL Danmark’s clients. The client transfer process was completed satisfactorily in the third quarter of 2021 and the clients taken over will now be served by the bank’s employees, including those who were transferred from BIL Danmark.

The takeover of the BIL Danmark client portfolio strengthens the bank’s position in private banking.


Increase in customers and Voxmeter survey ratings
Both of the bank’s brands are placed high in Voxmeter’s annual Image and Reputation survey published in September 2021: the “Ringkjøbing Landbobank” brand takes first place and the “Nordjyske Bank” brand takes fourth place.

The poll thus ideally supplements Voxmeter’s customer satisfaction survey published in January 2021, which also ranked the bank among the best in the Danish banking sector.

Both surveys are by far the biggest in Denmark and based on more than 39,000 and more than 60,000 respondents respectively.

The high level of customer satisfaction and the bank’s image and reputation have contributed to the continued highly satisfactory growth in new customers and good retention of customers in 2021, like in previous years.


Organisational adjustments
In the third quarter of 2021, the bank has decided various adjustments to its organisational structure and administrative set-up for implementation during the fourth quarter of 2021 and the first quarter of 2022.

The aim of all the adjustments is to strengthen the bank’s specialist environments to ensure the continued best possible advisory services and experience for its customers.

The employees in the bank’s branch in Hvide Sande will in future be permanently attached to Ringkøbing, but the Hvide Sande branch will continue to be the venue for customer meetings etc.

The bank’s branch on Kastetvej in Aalborg will be combined with the branch in Hasseris, Aalborg. This will make Hasseris one of the bank’s largest retail customer branches.

Central Production in North Jutland has so far been located in both Nørresundby and Frederikshavn. In the future, Central Production will be in one location in Frederikshavn.


The coronavirus situation
We see support of our customers and business partners during the coronavirus pandemic as an important part of our task. From the start of the pandemic we have, of course, also placed great emphasis on protecting our employees to lessen the risk of transmission of the virus.

The bank has thus prepared for operating in an ever-changing environment due to the coronavirus situation and for potential reintroduction of varying restrictions.

The bank supports the Government’s and Finance Denmark’s declaration of intent of 9 September 2021 regarding termination of the governmental loan schemes.


Expected results for 2021
On publication of the 2020 annual report, the bank announced its expectations for core earnings for 2021 in the range DKK 1,100-1,300 million and profit before tax in the range DKK 1,000-1,300 million.

On 8 June 2021, the bank upwardly adjusted its expectations for 2021, primarily as a result of a better income flow than previously expected, due to a continued large increase in customers and a high level of activity among other things.

The upwardly adjusted expectations for the full year are core earnings in the range DKK 1,300-1,500 million and profit before tax in the range DKK 1,200-1,500 million. The upwardly adjusted expectations are maintained, but we now expect results at the upper end of the ranges.


Accounting policies
The accounting policies are unchanged relative to those in the submitted and audited 2020 annual report.


Key figures

 Q1-Q3
2021
Q1-Q3
2020
Full year
2020
Key figures for the bank (percent)   
Profit before tax as a percentage of average equity, per annum17.614.114.5
Net profit as a percentage of average equity, per annum14.011.311.7
    
Rate of costs33.735.736.2
    
Common equity tier 1 capital ratio17.417.817.5
Tier 1 capital ratio17.417.817.5
Total capital ratio21.021.621.1
    
MREL requirement – fixed by the Danish FSA17.920.217.9
MREL capital ratio26.829.226.7
    
Key figures per DKK 1 share (DKK)   
Core earnings39.129.340.2
Net profit38.522.631.6
Book value298.7271.2280.2
Share price, end of period741.0482.0554.0
    
Basis of calculation, number of shares28,665,71629,067,72129,067,721


Quarterly overviews

Core earnings

 Q3
2021
Q2
2021
Q1
2021
Q4
2020
Q3
2020
Q2
2020
Q1
2020
Q4
2019
Q3
2019
Q2
2019
Q1
2019
(DKK million)           
Net interest income336327325321319311305292294296291
Net fee and commission income excluding
securities trading
170166159156147136152154163159150
Income from sector shares etc.4943404338353536363637
Foreign exchange income1413161399108986
Other operating income01410105701
Total core income excluding securities
trading
569550544534513492502495509499485
Securities trading3429563239283935292341
Total core income603579600566552520541530538522526
Staff and administration expenses191195198206179190191202180198198
Depreciation and write-downs on tangible assets34345239842
Other operating expenses22222041021
Total expenses etc.196201203212186192198212188204201
Core earnings before impairment charges for loans407378397354366328343318350318325
Impairment charges for loans and other
receivables etc.
-13-19-29-38-44-66-75-25-26-24-25
Core earnings394359368316322262268293324294300
Result for the portfolio etc.-1+7-10+15+17+29-70-4+20+7+26
Amortisation and write-downs on intangible assets44443444344
Profit before tax389362354327336287194285341297322
Tax8771726464603662667663
Net profit302291282263272227158223275221259


Quarterly overviews – continued

Balance sheet items and contingent liabilities

 End of
Q3
2021
End of
Q2
2021
End of
Q1
2021
End of
Q4
2020
End of
Q3
2020
End of
Q2
2020
End of
Q1
2020
End of
Q4
2019
End of
Q3
2019
End of
Q2
2019
End of
Q1
2019
(DKK million)           
Loans38,84937,26837,21036,24135,47935,26036,13035,46534,75734,52834,195
Deposits including pooled schemes41,47541,37641,76639,63939,20439,67037,05138,12838,55439,07037,439
Equity8,5638,3338,1328,1467,8847,6127,3807,6107,4267,2317,071
Balance sheet total57,56257,12356,84554,86253,95653,98451,53152,94153,60152,42650,266
Contingent liabilities10,88611,81110,3709,8129,5909,3799,9929,66510,83610,4667,976

Statement of capital

 End of
Q3
2021
End of
Q2
2021
End of
Q1
2021
End of
Q4
2020
End of
Q3
2020
End of
Q2
2020
End of
Q1
2020
End of
Q4
2019
End of
Q3
2019
End of
Q2
2019
End of
Q1
2019
(DKK million)           
Common equity tier 17,2557,2747,1227,2777,0496,9736,1096,0725,6245,4415,284
Tier 1 capital7,2557,2747,1227,2777,0496,9736,1096,0725,6245,4415,284
Total capital8,7438,7638,6148,7748,5538,5078,0098,2427,7866,8546,667
MREL capital11,16711,59610,83711,11211,58711,58010,98511,24810,7909,5519,033
Total risk exposure41,72941,06342,27141,56139,68238,90041,44441,22339,54740,10638,308
            
(Percent)           
Common equity tier 1 capital ratio17.417.716.817.517.817.914.714.714.213.613.8
Tier 1 capital ratio17.417.716.817.517.817.914.714.714.213.613.8
Total capital ratio21.021.320.421.121.621.919.320.019.717.117.4
MREL capital ratio26.828.225.626.729.229.826.527.327.323.823.6

Statements of income and comprehensive income

NoteQ1-Q3
2021
DKK 1,000
Q1-Q3
2020
DKK 1,000
Full year
2020
DKK 1,000
1Interest income1,065,0331,024,4571,373,215
2Interest expenses66,23991,921120,910
 Net interest income998,794932,5361,252,305
3Dividends from shares etc.77,10971,10671,241
4Fee and commission income682,258603,681814,821
4Fee and commission expenses67,96862,45985,545
 Net interest and fee income1,690,1931,544,8642,052,822
5Value adjustments+90,589+50,546+126,079
 Other operating income5,1105192,054
6,7Staff and administration expenses584,303559,945765,933
 Amortisation, depreciation, and write-downs on
intangible and tangible assets
22,42620,85929,241
 Other operating expenses5,8306,0588,110
8,12Impairment charges for loans and other receivables etc.-68,303-192,505-233,348
 Results from investments in associated companies and group undertakings00-13
 Profit before tax1,105,030816,5621,144,310
9Tax230,062159,361224,596
 Net profit874,968657,201919,714
     
 Other comprehensive income:   
 Value changes in pension liabilities00-561
 Total comprehensive income for the period874,968657,201919,153

Core earnings

NoteQ1-Q3
2021
DKK 1,000
Q1-Q3
2020
DKK 1,000
Full year
2020
DKK 1,000
 Net interest income988,131934,5991,255,816
4Net fee and commission income excluding securities
trading
495,101435,320591,147
 Income from sector shares etc.131,704108,010150,935
4Foreign exchange income42,63128,16140,759
 Other operating income5,1105192,054
 Total core income excluding securities trading1,662,6771,506,6092,040,711
4Securities trading119,189105,902138,129
 Total core income1,781,8661,612,5112,178,840
6,7Staff and administration expenses584,303559,945765,933
 Depreciation and write-downs on tangible assets10,0499,60914,241
 Other operating expenses5,8306,0588,110
 Total expenses etc.600,182575,612788,284
 Core earnings before impairment charges for loans1,181,6841,036,8991,390,556
 Impairment charges for loans and other receivables etc.-60,581-184,783-223,052
 Core earnings1,121,103852,1161,167,504
 Result for the portfolio etc.-3,696-24,304-8,194
 Amortisation and write-downs on intangible assets12,37711,25015,000
 Profit before tax1,105,030816,5621,144,310
9Tax230,062159,361224,596
 Net profit874,968657,201919,714

        

Balance sheet

Note30 Sep. 2021
DKK 1,000
30 Sep. 2020
DKK 1,000
31 Dec.
2020
DKK 1,000
 Assets   
 Cash in hand and demand deposits with central banks3,334,658665,083659,004
10Receivables from credit institutions and central banks242,8842,571,0613,376,233
11,12,13 Total loans and other receivables at amortised cost38,848,70535,479,20636,241,166
 Loans and other receivables at amortised cost37,771,61234,292,88035,088,380
 Wind turbine loans etc. with direct funding1,077,0931,186,3261,152,786
14Bonds at fair value6,428,2817,478,9386,636,965
15Shares etc.1,417,6451,331,3061,385,807
 Investments in associated companies482457482
 Investments in group undertakings11,99712,03511,997
16Assets linked to pooled schemes5,221,0414,394,8374,700,080
17Intangible assets1,067,5491,038,5881,034,838
 Total land and buildings210,783216,295215,910
 Investment properties7,66710,0677,667
 Domicile properties177,331187,089186,971
 Domicile properties (leasing)25,78519,13921,272
 Other tangible assets15,56717,82317,626
 Current tax assets0024,249
 Deferred tax assets4,53219,40417,868
 Temporary assets6,36810,1156,368
 Other assets735,106704,020510,327
 Prepayments16,28916,50623,209
 Total assets 57,561,88753,955,67454,862,129


Balance sheet – continued

Note30 Sep. 2021
DKK 1,000
30 Sep. 2020
DKK 1,000
31 Dec.
2020
DKK 1,000
 Liabilities and equity   
18Debt to credit institutions and central banks2,214,8642,245,4332,448,918
 Total deposits and other debt41,474,91739,204,49939,638,645
19Deposits and other debt36,253,87634,809,66234,938,565
 Deposits in pooled schemes5,221,0414,394,8374,700,080
20Issued bonds at amortised cost2,969,4432,363,2102,361,796
 Preferred senior capital1,023,3561,033,4021,032,489
 Non-preferred senior capital1,946,0871,329,8081,329,307
 Current tax liabilities143,83989,1540
 Other liabilities507,149497,523591,109
 Deferred income1,4181,5861,728
 Total debt47,311,63044,401,40545,042,196
     
 Provisions for pensions and similar liabilities2,1381,9832,560
12Provisions for losses on guarantees106,90683,22485,814
12Other provisions for liabilities31,14134,94636,534
 Total provisions for liabilities140,185120,153124,908
     
 Tier 2 capital1,546,5941,550,1551,549,150
21Total subordinated debt1,546,5941,550,1551,549,150
     
22Share capital29,06829,22829,228
 Net revaluation reserve under the equity method406419406
 Retained earnings8,534,0047,854,3147,909,643
 Proposed dividend etc.--206,598
 Total shareholders’ equity8,563,4787,883,9618,145,875
     
 Total liabilities and equity57,561,88753,955,67454,862,129
23Own shares   
24Contingent liabilities etc.   
25Assets provided as security   
 Credit risk   
26   Loans and guarantees in percent, by sector and industry   
27   Loans, guarantees and unutilised credit facilities and loan undertakings by credit quality and IFRS 9 stages
28Miscellaneous comments   

Statement of changes in equity

DKK 1,000Share
capital
Net revaluation
reserve under the equity method
Retained earningsProposed dividend etc.Total share-holders’ equity
As at 30 September 2021:



Shareholders’ equity at the end of the previous financial year
29,2284067,909,643206,5988,145,875
Reduction of share capital-160 160 0
Dividend etc. paid   -206,598-206,598
Dividend received on own shares  1,645 1,645
Purchase of own shares  -827,824 -827,824
Sale of own shares  563,717 563,717
Other equity transactions (employee shares)  11,695 11,695
Total comprehensive income for the period  874,968 874,968
Shareholders’ equity
on the balance sheet date
29,0684068,534,00408,563,478


DKK 1,000Share
capital
Net revaluation
reserve under the equity method
Retained earningsProposed dividend etc.Total share-holders’ equity
As at 30 September 2020:



Shareholders’ equity at the end of the previous financial year
29,6624197,252,515327,2807,609,876
Reduction of share capital-434 434 0
Dividend etc. paid   -327,280-327,280
Dividend received on own shares  4,966 4,966
Purchase of own shares  -519,930 -519,930
Sale of own shares  451,109 451,109
Other equity transactions (employee shares)  8,019 8,019
Total comprehensive income for the period  657,201 657,201
Shareholders’ equity
on the balance sheet date
29,2284197,854,31407,883,961

Statement of changes in equity – continued

DKK 1,000Share
capital
Net revaluation
reserve under the equity method
Retained earningsProposed dividend etc.Total share-holders’ equity
As at 31 December 2020:



Shareholders’ equity at the end of the previous financial year
29,6624197,252,515327,2807,609,876
Reduction of share capital-434 434 0
Dividend etc. paid   -327,280-327,280
Dividend received on own shares  4,966 4,966
Purchase of own shares  -680,099 -680,099
Sale of own shares  611,241 611,241
Other equity transactions (employee shares)  8,018 8,018
Total comprehensive income for the year -13712,568206,598919,153
Shareholders’ equity
on the balance sheet date
29,2284067,909,643206,5988,145,875

Statement of capital                

 30 Sep. 2021
DKK 1,000
30 Sep.
2020
DKK 1,000
31 Dec.
2020
DKK 1,000


Credit risk
36,239,93034,311,44135,080,095
Market risk1,920,9932,464,2052,912,209
Operational risk3,568,3762,906,6653,568,376
Total risk exposure41,729,29939,682,31141,560,680
    
Shareholders’ equity8,563,4787,883,9618,145,875
Proposed dividend etc.---206,598
Deduction for expected dividend-300,114-251,051-
Addition for transition programme concerning IFRS 9581,838700,584661,258
Deduction for insufficient coverage of non-performing exposures-817--
Deduction for the sum of equity investments etc. above 10%-282,462-202,981-244,297
Deduction for prudent valuation-16,953-15,963-16,284
Deduction for intangible assets-1,067,549-1,038,588-1,034,838
Deferred tax on intangible assets31,74525,37324,548
Deduction of amount of share buy-back programme-497,500-57,504-57,504
Actual utilisation of amount of share buy-back programme297,88657,50457,504
Deduction for trading limit for own shares-55,000-55,000-55,000
Actual utilisation of the trading limit for own shares2792,3972,794
Common equity tier 1 7,254,8317,048,7327,277,458
    
Tier 1 capital 7,254,8317,048,7327,277,458
    
Tier 2 capital1,543,6001,544,5801,543,925
Deduction for the sum of equity investments etc. above 10%-55,337-40,431-46,950
Total capital8,743,0948,552,8818,774,433
Contractual senior funding (grandfathered)482,4151,728,4931,031,852
Non-preferred senior capital1,941,1601,305,6031,305,374
MREL capital11,166,66911,586,97711,111,659

Statement of capital – continued

 30 Sep. 2021
DKK 1,000
30 Sep.
2020
DKK 1,000
31 Dec.
2020
DKK 1,000
    
Common equity tier 1 capital ratio (%)17.417.817.5
Tier 1 capital ratio (%)17.417.817.5
Total capital ratio (%)21.021.621.1
MREL capital ratio (%)26.829.226.7
    
Pillar I capital requirements3,338,3443,174,5853,324,854
    
    
Individual solvency requirement (%)9.39.39.3
Capital conservation buffer (%)2.52.52.5
Countercyclical buffer (%)0.00.00.0
Total requirement for the bank’s total capital (%)11.811.811.8
Excess cover in percentage points relative to individual solvency requirement11.712.311.8
Excess cover in percentage points relative to total requirement for total capital9.29.89.3
    
    
MREL requirement (%) – fixed by the Danish FSA17.920.217.9
Excess cover in percentage points relative to MREL requirement8.99.08.8
    

Notes

NoteQ1-Q3 2021
DKK 1,000
Q1-Q3
2020
DKK 1,000
Full year 2020
DKK 1,000
1Interest income   
 Receivables from credit institutions and central
banks – net
-10,167

-13,788
-15,917
 Loans and other receivables927,605943,5481,251,394
 Discounts – amortisation concerning loans taken over etc.7,7227,72210,296
 Loans – interest on the impaired part of loans-37,405-46,183-59,678
 Bonds – net20,8747,02513,188
 Total derivative financial instruments – net15,21515,55320,424
 of which currency contracts – net5,3028,7999,740
 of which interest-rate contracts – net9,9136,75410,684
 Other interest income2,5112,2952,862
 Total interest income926,355916,1721,222,569
     
 Negative interest income transferred to interest expenses   
 Receivables from credit institutions and central banks2,88115,32317,969
 Bonds3,6025,49610,883
 Total derivative financial instruments2,3173,5584,064
 of which currency contracts4629281,102
 of which interest-rate contracts1,8552,6302,962
 Total negative interest income transferred to interest expenses8,80024,37732,916
     
 Negative interest expenses transferred from interest expenses    
 Debt to credit institutions and central banks091161
 Deposits and other debt129,87883,817117,569
 Total negative interest expenses transferred from interest expenses129,87883,908117,730
     
 Total interest income1,065,0331,024,4571,373,215
 of which interest income from collateralised repurchase agreements/reverse repo transactions booked under the item “Loans and other receivables”-76--

Notes – continued

NoteQ1-Q3 2021
DKK 1,000
Q1-Q3 2020
DKK 1,000
Full year 2020
DKK 1,000
2Interest expenses   
 Debt to credit institutions and central banks – net7,2539,14411,885
 Deposits and other debt – net-116,799-69,293-97,803
 Issued bonds16,86216,16821,538
 Subordinated debt19,70725,23332,003
 Other interest expenses5382,3842,641
 Total interest expenses-72,439-16,364-29,736
     
 Negative interest expenses transferred to interest income    
 Debt to credit institutions and central banks091161
 Deposits and other debt129,87883,817117,569
 Total negative interest expenses transferred to interest income129,878

83,908
117,730
     
 Negative interest income transferred from interest income   
 Receivables from credit institutions and central banks2,88115,32317,969
 Bonds3,6025,49610,883
 Total derivative financial instruments2,3173,5584,064
 of which currency contracts4629281,102
 of which interest-rate contracts1,8552,6302,962
 Total negative interest income transferred from
interest income
8,80024,37732,916
     
 Total interest expenses        66,23991,921120,910
     
3Dividends from shares etc.   
 Shares77,10971,10671,241
 Total dividends from shares etc.77,10971,10671,241
     
4Gross fee and commission income   
 Securities trading131,850118,135154,196
 Asset management and custody accounts139,945121,974165,388
 Payment handling91,65374,063100,790
 Loan fees71,94465,00691,361
 Guarantee commission and mortgage credit commission etc.180,597166,159224,817
 Other fees and commission66,26958,34478,269
 Total gross fee and commission income682,258603,681814,821
     
 Net fee and commission income   
 Securities trading119,189105,902138,129
 Asset management and custody accounts127,763109,876150,012
 Payment handling61,56247,23363,072
 Loan fees62,96358,86182,039
 Guarantee commission and mortgage credit commission etc.180,597166,159224,817
 Other fees and commission62,21653,19171,207
 Total net fee and commission income614,290541,222729,276
 Foreign exchange income42,63128,16140,759
 Total net fee, commission, and foreign exchange
income
656,921

569,383
770,035


Notes – continued

NoteQ1-Q3 2021
DKK 1,000
Q1-Q3 2020
DKK 1,000
Full year 2020
DKK 1,000
5Value adjustments   
 Other loans and receivables, fair value adjustment-3,1471,4841,292
 Bonds-22,780-7,85910,658
 Shares etc.57,44432,76076,441
 Foreign exchange42,63128,16140,759
 Total derivative financial instruments-12,62524,34024,106
 of which currency contracts-18,63321,92322,235
 of which interest-rate contracts6,0102,4111,870
 of which share contracts-261
 Assets linked to pooled schemes277,759-64,728124,574
 Deposits in pooled schemes-277,75964,728-124,574
 Issued bonds etc.29,066-28,340-27,177
 Total value adjustments90,58950,546126,079
     
6Staff and administration expenses   
 Payments and fees to general management, board of
directors and shareholders’ committee
   
 General management13,58112,24117,174
 Board of directors2,0501,5853,170
 Shareholders’ committee00857
 Total15,63113,82621,201
 Staff expenses   
 Salaries266,880257,882344,570
 Pensions29,16032,44941,958
 Social security expenses3,9525,0835,244
 Costs depending on number of staff45,25545,85760,840
 Total345,247341,271452,612
 Other administration expenses223,425204,848292,120
 Total staff and administration expenses584,303559,945765,933
     
7Number of full-time employees   
 Average number of employees during the period
converted into full-time employees
615638632
     
 Number of full-time employees at the end of the period632630612
     
8Impairment charges for loans and other receivables etc.   
 Net changes in impairment charges for loans and other receivables etc. and provisions for losses on guarantees and unutilised credit facilities82,475



180,274
172,975
 Actual realised net losses23,23258,414120,051
 Interest on the impaired part of loans-37,404-46,183-59,678
 Total impairment charges for loans and other receivables etc.68,303

192,505
233,348

Notes – continued

NoteQ1-Q3 2021
DKK 1,000
Q1-Q3
2020
DKK 1,000
Full year 2020
DKK 1,000
9Tax   
 Tax calculated on income for the year208,390163,034223,794
 Adjustment of deferred tax13,335-15,580-3,689
 Adjustment of tax calculated for previous years8,33711,9074,491
 Total tax230,062159,361224,596
     
 Effective tax rate (%):   
 Tax rate currently paid by the bank22.022.022.0
 Non-taxable income and non-deductible costs*-3.1-4.0-2.5
 Adjustment of tax calculated for previous years etc.1.91.50.1
 Total effective tax rate20.819.519.6
 * Primarily value adjustment of and dividends from sector shares.   
     
     
     
Note30 Sep. 2021
DKK 1,000
30 Sep.
2020
DKK 1,000
31 Dec.
2020
DKK 1,000
10Receivables from credit institutions and central banks   
 Demand192,884140,982114,751
 Up to and including 3 months02,380,0793,211,482
 More than 3 months and up to and including 1 year000
 More than 1 year and up to and including 5 years000
 More than 5 years50,00050,00050,000
 Total receivables from credit institutions and central banks242,8842,571,0613,376,233
     
11Loans and other receivables at amortised cost   
 Demand4,547,6773,592,1173,859,843
 Up to and including 3 months2,298,5552,531,5021,252,486
 More than 3 months and up to and including 1 year6,734,9516,302,7517,954,602
 More than 1 year and up to and including 5 years11,464,44610,306,44210,053,336
 More than 5 years13,803,07612,746,39413,120,899
 Total loans and other receivables at amortised cost38,848,70535,479,20636,241,166
 of which collateralised repurchase agreements/reverse repo transactions30,291--


Notes – continued

NoteStage 1
DKK 1,000
Stage 2
DKK
1,000
Stage 3
DKK 1,000
Total
DKK
1,000
12Impairment charges for loans and other receivables and provisions for losses on guarantees, unutilised credit facilities and loan undertakings    
      
 Impairment charges and provisions
– by stages
    
      
 As at 30 September 2021:    
 Loans and other receivables at amortised cost262,794844,9001,041,3552,149,049
 Guarantees18,21614,88073,810106,906
 Unutilised credit facilities and loan undertakings13,37417,767031,141
 Total impairment charges and provisions by stages294,384877,5471,115,1652,287,096
 of which management estimates136,106279,911198,345614,362
      
 As at 30 September 2020:    
 Loans and other receivables at amortised cost348,424839,386905,9382,093,748
 Guarantees21,40918,75143,06483,224
 Unutilised credit facilities and loan undertakings17,67617,271034,947
 Total impairment charges and provisions by stages387,509875,408949,0022,211,919
 of which management estimates238,930174,924127,000540,854
      
 As at 31 December 2020    
 Loans and other receivables at amortised cost304,520839,303938,4492,082,272
 Guarantees23,66523,88638,26385,814
 Unutilised credit facilities and loan undertakings18,65917,875036,534
 Total impairment charges and provisions by stages346,844881,064976,7122,204,620
 of which management estimates205,137255,284105,765566,186


Note30 Sep.
2021
DKK 1,000
30 Sep.
2020
DKK 1,000
31 Dec.
2020
DKK 1,000
12Impairment charges for loans and other receivables and provisions for losses on guarantees, unutilised credit facilities and loan undertakings – continued   
     
 In addition to the above, a discount on loans and guarantees taken over from Nordjyske Bank amounted to17,37627,67225,099
     
 The above includes the following stage 3 impairment charges and provisions taken over from Nordjyske Bank:   
     
 Cumulative stage 3 impairment charges and provisions at the end of the previous financial year247,609507,433507,433
 Change during the period-45,265-234,669-259,824
 Total stage 3 impairment charges and provisions
taken over
202,344272,764247,609

Notes – continued

NoteStage 1
DKK 1,000
Stage 2
DKK
1,000
Stage 3
DKK 1,000
Total
DKK
1,000
Impair-ment charges etc. taken to income statement
DKK 1,000
12Impairment charges for loans and
other receivables and provisions for losses on guarantees, unutilised credit facilities and loan undertakings – continued
     
       
 Impairment charges and provisions     
       
 As at 30 September 2021:     
       
 Impairment charges and provisions
at the end of the previous financial year
346,844881,064976,7122,204,620-
 Impairment charges and provisions for new exposures during the period, including new accounts for existing customers90,28170,957112,869274,107274,107
 Reversed impairment charges and
provisions for repaid accounts
-67,932-117,346-92,428-277,706-277,706
 Transfer of impairment charges and provisions at beginning of period to stage 1124,828-120,348-4,48000
 Transfer of impairment charges and provisions at beginning of period to stage 2-12,55335,877-23,32400
 Transfer of impairment charges and provisions at beginning of period to stage 3-1,708-48,78450,49200
 Impairment charges and provisions during the year resulting from credit risk change-185,376176,127124,903115,654115,654
 Previously written down, now definitively lost-0-29,579-29,579-
 Lost, not previously written down--- 11,180
 Received on receivables etc. previously written off-----54,932
 Total impairment charges and provisions294,384877,5471,115,1652,287,09668,303
 of which regarding credit institutions etc.6,051006,0514,046

Notes – continued

NoteStage 1
DKK 1,000
Stage 2
DKK
1,000
Stage 3
DKK 1,000
Total
DKK
1,000
Impair-ment charges etc. taken to income statement
DKK 1,000
12Impairment charges for loans and
other receivables and provisions for losses on guarantees, unutilised credit facilities and loan undertakings – continued
     
       
 Impairment charges and provisions     
       
 30 September 2020:     
       
 Impairment charges and provisions
at the end of the previous financial year
136,729404,0061,490,9102,031,645-
 Impairment charges and provisions for new exposures during the period, including new accounts for existing customers104,18860,073114,353278,614278,614
 Reversed impairment charges and
provisions for repaid accounts
-29,466-51,458-132,450-213,374-213,374
 Transfer of impairment charges and provisions at beginning of period to stage 195,673-45,483-50,19000
 Transfer of impairment charges and provisions at beginning of period to stage 2-7,729586,767-579,03800
 Transfer of impairment charges and provisions at beginning of period to stage 3-1,550-12,97014,52000
 Impairment charges and provisions during the year resulting from credit risk change89,664-65,527153,854177,991177,991
 Previously written down, now definitively lost---62,957-62,957-
 Lost, not previously written down--- 32,192
 Received on receivables etc. previously written off-----82,918
 Total impairment charges and provisions387,509875,408949,0022,211,919192,505
 of which regarding credit institutions etc.2,228002,2281,317

Notes – continued

NoteStage 1
DKK 1,000
Stage 2
DKK
1,000
Stage 3
DKK 1,000
Total
DKK
1,000
Impair-ment charges etc. taken to income statement
DKK 1,000
12Impairment charges for loans and
other receivables and provisions for losses on guarantees, unutilised credit facilities and loan undertakings – continued
     
       
 Impairment charges and provisions     
       
 As at 31 December 2020     
       
 Impairment charges and provisions
at the end of the previous financial year
136,729404,0061,490,9102,031,645-
 Impairment charges and provisions for new exposures during the period, including new accounts for existing customers110,10286,720122,077318,899318,899
 Reversed impairment charges and
provisions for repaid accounts
-35,138-70,486-180,189-285,813-285,813
 Transfer of impairment charges and provisions at beginning of period to stage 1147,307-58,732-88,57500
 Transfer of impairment charges and provisions at beginning of period to stage 2-10,189453,417-443,22800
 Transfer of impairment charges and provisions at beginning of period to stage 3-1,573-17,20518,77800
 Impairment charges and provisions during the year resulting from credit risk change-39483,344153,320236,270236,270
 Previously written down, now definitively lost---96,381-96,381-
 Lost, not previously written down----66,781
 Received on receivables etc. previously written off-----102,789
 Total impairment charges and provisions346,844881,064976,7122,204,620233,348
 of which regarding credit institutions etc.2,005002,0051,094

Notes – continued

Note30 Sep. 2021
DKK 1,000
30 Sep.
2020
DKK 1,000
31 Dec.
2020
DKK 1,000
13Suspended calculation of interest   
 Loans and other receivables with suspended
calculation of interest on the balance sheet date
142,255179,309264,721
     
14Bonds at fair value   
 Listed on the stock exchange6,428,2817,478,9386,636,965
 Total bonds at fair value6,428,2817,478,9386,636,965
     
15Shares etc.   
 Listed on Nasdaq Copenhagen6,7488,02010,850
 Investment fund certificates20,27920,50229,577
 Unlisted shares at fair value7,02412,20414,186
 Sector shares at fair value1,383,5941,290,5801,331,194
 Total shares etc.1,417,6451,331,3061,385,807
     
16Assets linked to pooled schemes   
 Cash deposits5,69018,608101,854
     
 Bonds:   
 Other bonds1,401,5671,487,9161,513,905
 Total bonds1,401,5671,487,9161,513,905
     
 Shares:   
 Other shares783,969671,648672,557
 Investment fund certificates3,060,3012,244,3432,411,764
 Total shares3,844,2702,915,9913,084,321
     
 Other items-30,486-27,6780
 Total assets linked to pooled schemes5,221,0414,394,8374,700,080
     
17Intangible assets   
     
 Goodwill   
 Cost at the end of the previous financial year923,255923,255923,255
 Total cost on the balance sheet date923,255923,255923,255
     
 Write-downs at the end of the previous financial year000
 Total write-downs on the balance sheet date000
 Total goodwill on the balance sheet date923,255923,255923,255
     
 Customer relationships   
 Cost at the end of the previous financial year150,000150,000150,000
 Addition45,08800
 Total cost on the balance sheet date195,088150,000150,000
     
 Amortisation at the end of the previous financial year38,41723,41723,417
 Amortisation for the period12,37711,25015,000
 Total amortisation on the balance sheet date50,79434,66738,417
 Total customer relationships on the balance sheet date144,294115,333111,583
     
 Total intangible assets on the balance sheet date1,067,5491,038,5881,034,838


Notes – continued        

Note30 Sep. 2021
DKK 1,000
30 Sep.
2020
DKK 1,000
31 Dec.
2020
DKK 1,000
18Debt to credit institutions and central banks   
 Demand1,082,001947,420711,366
 Up to and including 3 months032,525292,643
 More than 3 months and up to and including 1 year80,363172,379385,258
 More than 1 year and up to and including 5 years446,707572,081562,413
 More than 5 years605,793521,028497,238
 Total debt to credit institutions and central banks2,214,8642,245,4332,448,918
     
19Deposits and other debt   
 Demand31,166,30328,923,72829,973,193
 Deposits and other debt with notice:   
 Up to and including 3 months443,502456,264418,740
 More than 3 months and up to and including 1 year1,656,5481,468,4401,395,528
 More than 1 year and up to and including 5 years555,5071,224,866668,580
 More than 5 years2,432,0162,736,3642,482,524
 Total deposits and other debt36,253,87634,809,66234,938,565
 of which deposits covered by the Guarantee Fund60.5%60.6%64.1%
     
 Distributed as follows:   
 Demand31,031,10428,788,88229,849,983
 With notice1,280,1271,529,4451,328,132
 Time deposits607,240159,673277,918
 Long-term deposit agreements929,1031,747,0481,050,783
 Special types of deposits2,406,3022,584,6142,431,749
  36,253,87634,809,66234,938,565
     
20Issued bonds at amortised cost   
 More than 3 months and up to and including 1 year372,36400
 More than 1 year and up to and including 5 years1,984,0231,676,4201,675,470
 More than 5 years613,056686,790686,326
 Total issued bonds at amortised cost2,969,4432,363,2102,361,796
     
21Subordinated debt   
 Tier 2 capital:   
 Fixed-rate loan, principal of DKK 500 million,   
 maturity date 13 June 2028500,000500,000500,000
 Floating-rate loan, principal of EUR 100 million,   
 maturity date 22 August 2029743,600744,580743,925
 Floating-rate loan, principal of DKK 300 million,   
 maturity date 13 June 2030300,000300,000300,000
 Adjustment to amortised cost and fair value adjustment2,9945,5755,225
 Total subordinated debt1,546,5941,550,1551,549,150
     
22Share capital   
 Number of DKK 1 shares   
 Beginning of period29,228,32129,661,79629,661,796
 Cancelled during the period-160,600-433,475-433,475
 End of period 29,067,72129,228,32129,228,321
 of which reserved for subsequent cancellation402,005160,600160,600
 Total share capital 29,06829,22829,228

Notes – continued

Note30 Sep. 2021
DKK 1,000
30 Sep.
2020
DKK 1,000
31 Dec.
2020
DKK 1,000
23Own shares   
 Own shares included in the balance sheet at000
 Market value298,16579,80791,767
     
 Number of own shares:   
 Beginning of period165,644433,721433,721
 Purchased during the period1,298,0991,217,0541,525,629
 Sold during the period-900,761-1,051,726-1,360,231
 Cancelled during the period-160,600-433,475-433,475
 End of period402,382165,574165,644
 of which reserved for subsequent cancellation402,005160,600160,600
     
 Nominal value of holding of own shares, end of period402166166
 Own shares’ proportion of share capital, end of period (%)1.40.60.6
     
24Contingent liabilities etc.   
     
 Contingent liabilities   
 Financial guarantees3,980,4333,055,5083,536,326
 Guarantees against losses on mortgage credit loans2,950,5002,739,2732,813,424
 Registration and refinancing guarantees3,171,0762,946,2572,684,855
 Sector guarantees105,626104,802104,802
 Other contingent liabilities678,842743,866672,423
 Total contingent liabilities10,886,4779,589,7069,811,830
     
 Other contractual obligations   
 Irrevocable credit commitments etc.1,154,63800
 Total other contractual obligations1,154,63800
     
25Assets provided as security   
 First-mortgage loans are provided for renewable energy projects. The loans are funded directly by KfW Bankengruppe, to which security in the associated loans has been provided. Each reduction of the first-mortgage loans is deducted directly from the funding at KfW Bankengruppe.   
 The balance sheet item is1,077,0931,186,3261,152,786
     
 As collateral for clearing and raising of loans, the bank has pledged securities to the central bank of Denmark at a market price of158,275170,935168,512
     
 Amount deposited in a cover-for-liabilities account as security for the Danish Growth Fund up to a specific limit of loss as a consequence of Ringkjøbing Landbobank's ownership interest in Landbrugets Finansieringsbank03770
     
 Collateral under CSA agreements etc.23,76147,61535,193

        

Notes – continued

Note30 Sep. 2021
percent
30 Sep.
2020
percent
31 Dec.
2020
percent
26

Loans and guarantees in percent, by sector and industry    
     
 Public authorities0.00.00.0
     
 Business customers:   
 Agriculture, hunting and forestry   
 Cattle farming etc.1.41.31.3
 Pig farming etc.1.31.31.2
 Other agriculture, hunting and forestry4.95.75.4
 Fisheries1.51.91.8
 Industry and raw materials extraction2.62.42.7
 Energy supply   
 Renewable energy6.46.97.2
 Other energy supply0.30.40.3
 Building and construction3.43.23.3
 Trade3.33.93.3
 Transport, hotels and restaurants1.82.12.0
 Information and communication0.60.50.5
 Finance and insurance8.57.88.1
 Real property   
 First mortgage without prior creditors12.613.212.7
 Other real property financing4.53.94.2
 Other business customers6.97.17.1
 Total business customers 60.061.661.1
     
 Private individuals40.038.438.9
     
 Total100.0100.0100.0


Notes – continued

NoteStage 1
DKK 1,000
Stage 2
DKK 1,000
Stage 3
DKK 1,000
Credit-impaired on initial recogni-tion
DKK 1,000
Total
DKK 1,000
Total
%
27Loans, guarantees and unutilised credit facilities and loan undertakings by credit quality and IFRS 9 stages

      
        
 As at 30 September 2021      
        
 Credit quality      
 High53,783,298140,6200053,923,91874%
 Medium9,985,2181,650,1000011,635,31816%
 Low1,539,7333,832,829005,372,5627%
 Credit-impaired001,655,764318,1971,973,9613%
 Total65,308,2495,623,5491,655,764318,19772,905,759100%
        
 Impairment charges etc.294,384877,547912,821202,3442,287,096 
        
 As at 30 September 2020      
        
 Credit quality      
 High46,095,684142,9160046,238,60071%
 Medium9,078,5501,771,7580010,850,30817%
 Low1,873,9694,059,359005,933,3289%
 Credit-impaired001,358,979397,3941,756,3733%
 Total57,048,2035,974,0331,358,979397,39464,778,609100%
        
 Impairment charges etc.387,509875,408676,239272,7632,211,919 
        
 As at 31 December 2020      
        
 Credit quality      
 High47,043,274123,7280047,167,00272%
 Medium9,525,6181,630,4330011,156,05117%
 Low1,640,2453,932,329005,572,5748%
 Credit-impaired001,415,013366,9091,781,9223%
 Total58,209,1375,686,4901,415,013366,90965,677,549100%
        
 Impairment charges etc.346,844881,064729,103247,6092,204,620 

Notes – continued

28Miscellaneous comments
 

The statement of core earnings for 2017 and 2018 on pages 1 and 4 was calculated pro forma by adding up figures from Ringkjøbing Landbobank’s statement of the alternative measure of performance “Core earnings” and pro forma figures from Nordjyske Bank, converted and adjusted to Ringkjøbing Landbobank’s statement of the alternative performance measure “Core earnings”.



Core earnings per share on page 4 are stated for the “old” Ringkjøbing Landbobank up to and including 2017, pro forma for 2018 and for the merged bank from 2019.

Main figures

Summary of income statement (DKK million)Q1-Q3
2021
Q1-Q3
2020
Full year
2020
Net interest income9999331,252
Dividends from shares etc.777171
Net fee and commission income614541730
Net interest and fee income1,6901,5452,053
Value adjustments+91+51+126
Other operating income512
Staff and administration expenses584560766
Amortisation, depreciation, and write-downs on intangible and tangible assets232129
Other operating expenses668
Impairment charges for loans and receivables etc.-68-193-234
Profit before tax1,1058171,144
Tax230160224
Net profit875657920


Main figures from the balance sheet (DKK million)30 Sep.
2021
30 Sep.
2020
31 Dec.
2020
Loans and other receivables at amortised cost38,84935,47936,241
Deposits and other debt including pooled schemes41,47539,20439,639
Subordinated debt1,5471,5501,549
Equity8,5637,8848,146
Balance sheet total57,56253,95654,862

The Danish FSA’s official key figures/ratios etc. for Danish banks

 Q1-Q3
2021
Q1-Q3
2020


2020
Capital ratios:    
Total capital ratio%21.021.621.1
Tier 1 capital ratio%17.417.817.5
Individual solvency requirement%9.39.39.3
MREL requirement – fixed by the Danish FSA%17.920.217.9
MREL capital ratio%26.829.226.7
     
Earnings:    
Return on equity before tax%13.210.514.5
Return on equity after tax%10.58.511.7
Income/cost ratioDKK2.622.052.10
Return on assets%1.51.21.7
     
Market risk:    
Interest rate risk%0.61.31.0
Foreign exchange position%1.41.30.1
Foreign exchange risk%0.00.00.0
     
Liquidity risk:    
Liquidity Coverage Ratio (LCR)%196210206
Loans and impairments thereon relative to deposits%98.895.896.7
     
Credit risk:    
Loans relative to shareholders’ equity 4.54.54.4
Growth in loans%7.10.0