FØROYA BANKI Interim Report Q3 2023
Contents | ||
MANAGEMENT'S REPORT | ||
• Financial highlights and ratios | 3 | |
• Financial review | 4 | |
- | Q3 2023 Highlights | 4 |
- | Income statement | 4 |
- | Balance sheet | 5 |
- | Capital and Liquidity | 6 |
- Compliance with the Danish FSA Supervisory Diamond … | 6 | |
- Events after the balance sheet date | 6 |
- Guidance for 2023……………………………...................................................................... 6
- Adjusted results……………….………………………………………………………………….. 7
• | Segments | 8 | |
- | Personal Banking | 9 | |
- | Corporate Banking | 10 | |
- | Insurance: Trygd | 11 | |
FINANCIAL STATEMENTS | |||
• | Income statement | 12 | |
• | Balance sheet | 14 | |
• | Statement of capital | 16 | |
• | Capital and Solvency | 18 | |
• | Cash flow statement | 19 | |
• Notes to the financial statements | 20 | ||
Statement by the Executive Board and the Board of Directors | .…............................................. 27 |
CONTACT DETAILS …................................................................................................................. 28
2
Interim Report Q3 2023
Financial highlights and ratios - BankNordik Group
Highlights | Q1-Q3 | Q1-Q3 | Index | Q3 | Q2 | Q1 | Q4 | Q3 |
DKK 1,000 | 2023 | 2022 | 23 / 22 | 2023 | 2023 | 2023 | 2022 | 2022 |
Net interest income | 309,414 | 194,349 | 159 | 114,420 | 102,559 | 92,436 | 82,035 | 69,597 |
Dividends from shares and other investments | 6,227 | 6,475 | 96 | 10 | 25 | 6,191 | 0 | 0 |
Net fee and commision income | 59,512 | 65,229 | 91 | 19,420 | 18,801 | 21,291 | 22,884 | 22,028 |
Net interest and fee income | 375,153 | 266,053 | 141 | 133,850 | 121,385 | 119,918 | 104,919 | 91,626 |
Net insurance income | 47,616 | 37,896 | 126 | 23,563 | 19,230 | 4,823 | 14,172 | 10,974 |
Interest and fee income and income from insurance activities, net | 422,769 | 303,949 | 139 | 157,413 | 140,615 | 124,741 | 119,091 | 102,600 |
Market value adjustments | 25,105 | -35,159 | 15,082 | 7,210 | 2,813 | 3,371 | -28,904 | |
Other operating income | 4,887 | 5,021 | 97 | 1,495 | 2,042 | 1,350 | 2,451 | 1,159 |
Staff costs and administrative expenses | 195,272 | 179,394 | 109 | 62,959 | 67,627 | 64,685 | 59,566 | 60,211 |
Impairment charges on loans and advances etc. | -15,128 | -43,251 | 35 | 460 | -7,189 | -8,400 | -3,378 | -11,829 |
Net profit | 218,974 | 110,542 | 198 | 87,886 | 69,736 | 61,352 | 53,865 | 20,555 |
Loans and advances | 8,790,393 | 7,976,907 | 110 | 8,790,393 | 8,655,308 | 8,354,190 | 8,083,343 | 7,976,907 |
Bonds at fair value | 1,461,287 | 1,614,329 | 91 | 1,461,287 | 1,451,887 | 1,612,037 | 1,591,453 | 1,614,329 |
Intangible assets | 1,780 | 2,567 | 69 | 1,780 | 1,987 | 2,195 | 2,402 | 2,567 |
Assets held for sale | 19,000 | 0 | 19,000 | 19,000 | 19,000 | 24,200 | 0 | |
Total assets | 12,516,471 | 12,099,703 | 103 | 12,516,471 | 12,450,228 | 12,485,050 | 12,190,232 | 12,099,703 |
Amounts due to credit institutions and central banks | 850,685 | 857,703 | 99 | 850,685 | 1,074,332 | 835,923 | 858,172 | 857,703 |
Issued bonds at amortised cost | 561,264 | 551,868 | 102 | 561,264 | 556,176 | 564,813 | 547,584 | 551,868 |
Deposits and other debt | 8,590,082 | 8,210,426 | 105 | 8,590,082 | 8,415,165 | 8,518,439 | 8,335,662 | 8,210,426 |
Total shareholders' equity | 1,779,784 | 1,756,273 | 101 | 1,779,784 | 1,693,637 | 1,625,640 | 1,816,666 | 1,756,273 |
Sept. 30 | Sept. 30 | Sept. 30 | June 30 | March 31 | Dec. 31 | Sept. 30 | |
Ratios and key figures | 2023 | 2022 | 2023 | 2023 | 2023 | 2022 | 2022 |
Solvency | |||||||
Total capital ratio, incl. MREL capital, % | 30.1 | 31.4 | 30.1 | 30.4 | 29.1 | 29.9 | 31.4 |
Total capital ratio, % | 25.3 | 26.4 | 25.3 | 25.6 | 24.4 | 25.1 | 26.4 |
Core capital ratio, % | 23.9 | 25.0 | 23.9 | 24.2 | 23.1 | 23.7 | 25.0 |
CET 1 capital | 21.8 | 22.9 | 21.8 | 22.1 | 21.0 | 21.6 | 22.9 |
RWA, DKK mill | 7,106 | 7,096 | 7,106 | 7,029 | 7,382 | 7,195 | 7,096 |
Profitability | |||||||
Return on shareholders' equity after tax, % | 12.2 | 5.8 | 5.1 | 4.2 | 3.6 | 3.0 | 1.2 |
Cost / income, % | 40.9 | 51.1 | 37.9 | 42.0 | 43.7 | 43.9 | 67.6 |
Cost / income, % (excl. value adjustm. and impairments) | 46.8 | 59.2 | 41.2 | 49.1 | 51.0 | 47.8 | 60.2 |
Return on assets | 1.7 | 0.9 | 0.7 | 0.6 | 0.5 | 0.4 | 0.2 |
Market risk | |||||||
Interest rate risk, % | 1.0 | 1.1 | 1.0 | 1.5 | 1.4 | 1.0 | 1.1 |
Foreign exchange position, % | 0.9 | 0.9 | 0.9 | 1.0 | 0.7 | 0.7 | 0.9 |
Foreign exchange risk, % | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Liquidity | |||||||
Liquidity Coverage Ratio (LCR), % | 196.6 | 225.8 | 196.6 | 183.7 | 220.0 | 225.2 | 225.8 |
Credit risk | |||||||
Change in loans and advances, % | 8.7 | 4.6 | 1.6 | 3.6 | 3.4 | 1.3 | 3.3 |
Gearing of loans and advances | 4.9 | 4.5 | 4.9 | 5.1 | 5.1 | 4.4 | 4.5 |
Impairment and provisioning ratio, end of period, % | 1.8 | 2.0 | 1.8 | 1.7 | 1.8 | 1.9 | 2.0 |
Write-off and provisioning ratio, % | -0.2 | -0.4 | 0.0 | -0.1 | -0.1 | 0.0 | -0.1 |
Share of amounts due on w hich interest rates | |||||||
have been reduced, end of period, % | 0.2 | 0.6 | 0.2 | 0.2 | 0.2 | 0.2 | 0.6 |
Shares | |||||||
Earnings per share after tax (nom. DKK 20), DKK | 22.9 | 11.5 | 9.2 | 7.3 | 6.4 | 5.6 | 2.1 |
Market price per share (nom. DKK 20), DKK | 165.0 | 118.0 | 165.0 | 143.0 | 180.0 | 136.0 | 118.0 |
Book value per share (nom. DKK 20), DKK | 186.0 | 183.5 | 186.0 | 177.0 | 169.9 | 189.8 | 183.5 |
Other | |||||||
Number of full-time employees, end of period | 207 | 201 | 207 | 203 | 203 | 200 | 201 |
3
Interim Report Q3 2023
Financial Review
"We're pleased to report solid financial results for the first nine months of the year with a profit before tax of DKK 271m, up from DKK 136m in the year-earlier period.
The favourable performance was mainly driven by an increase in central bank and market rates, increases in both deposits and lending, the return on the investment portfolio and a good performance by the insurance business during the quarter. Furthermore, the customer portfolio maintained its sound credit quality despite a generally volatile economic environment of rising interest rates and high inflation.
Prospects are generally good for the rest of the year, and as reported in a previous announcement, we have raised our net profit guidance from DKK 235-265m to the DKK 260-290m range," said BankNordik CEO Turið F. Arge.
Q3 2023 Highlights
Adjusted Income statement, Group | ||||||||||||
Q1-Q3 | Q1-Q3 | |||||||||||
DKKm | Q3 2023 | Q2 2023 | Index | Q1 2023 | Q4 2022 | Q3 2022 | 2023 | 2022 | Index | |||
Net interest income | 96 | 86 | 111 | 78 | 72 | 67 | 260 | 197 | 132 | |||
Net fee and commission income | 19 | 19 | 103 | 21 | 23 | 22 | 60 | 65 | 91 | |||
Net insurance income | 24 | 19 | 123 | 5 | 14 | 11 | 48 | 38 | 126 | |||
Other operating income (less reclassification) | 9 | 11 | 84 | 8 | 8 | 11 | 28 | 29 | 96 | |||
Operating income | 148 | 135 | 110 | 112 | 117 | 110 | 395 | 330 | 120 | |||
Operating costs | 1 | -65 | -64 | 101 | -63 | -58 | -62 | -192 | -185 | 104 | ||
Sector costs | 0 | 0 | 100 | 0 | 0 | 0 | -1 | -1 | 134 | |||
Profit before impairment charges | 83 | 71 | 117 | 49 | 59 | 48 | 202 | 144 | 140 | |||
Impairment charges, net | 0 | 7 | -6 | 8 | 3 | 12 | 15 | 43 | 35 | |||
Operating profit | 82 | 78 | 106 | 57 | 62 | 60 | 217 | 187 | 116 | |||
Non-recurring items | 2 | 0 | -6 | 0 | -3 | 0 | 0 | -9 | 0 | |||
Profit before investment portfolio earnings and tax | 82 | 72 | 114 | 54 | 62 | 60 | 208 | 187 | 111 | |||
Investment portfolio earnings | 3 | 26 | 15 | 175 | 22 | 8 | -36 | 63 | -50 | -124 | ||
Profit before tax | 108 | 87 | 124 | 75 | 70 | 24 | 271 | 136 | 198 | |||
Tax | 20 | 17 | 118 | 14 | 16 | 4 | 52 | 26 | 199 | |||
Net profit | 88 | 70 | 126 | 61 | 54 | 20 | 219 | 111 | 198 |
Operating cost/income, % | |
Number of FTE, end of period | |
1 | Comprises staff costs, administrative expenses |
2 | Reclassified from Other operating income, Staff |
3 | Incl. net income from investments accounted for |
44 | 47 | 56 | 49 | 56 | 49 | 56 | ||
207 | 203 | 102 | 203 | 200 | 201 | 207 | 201 | 103 |
and amortisation, depreciation and impairment charges (less reclassification to non-recurring items). | ||||||||
costs and administrative expenses and from Amortisation, depreciation and impairment charges. | ||||||||
under the equity method (excl. sector shares). |
Income statement
The following comments are generally stated relative to Q2 2023. Due to seasonal variations, comments provided on the insurance segment relate to Q3 2022. The comments on the first nine months of 2023 are stated relative to the same period of 2022.
Operating income
The BankNordik Group generated operating income of DKK 148m in Q3 2023, an increase of DKK 13m compared to Q2 2023, driven by quarter-on-quarter increases in net interest income and net insurance income.
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Interim Report Q3 2023
Net interest income
Net interest income was DKK 96m in Q3 2023, an increase of DKK 10m compared to Q2 2023.
Net fee and commission income
Net fee and commission income amounted to DKK 19m in Q3 2023, DKK 1m higher than in Q2 2023.
Net insurance income
Net insurance income was DKK 24m in Q3 2023, DKK 13m higher than in Q3 2022.
Operating and sector costs
Operating costs amounted to DKK 65m in Q3 2023, a slight increase of DKK 1m compared to Q2 2023.
Profit before impairment charges
Profit before impairment charges was DKK 83m in Q3 2023, an increase of DKK 12m compared to Q2 2023.
Impairment charges
Net impairments were DKK 0m in Q3 2023 compared to a reversal of DKK 7m in Q2 2023. The management provision of DKK 75m taken in relation to the ongoing economic uncertainty as well as uncertainty in relation to the Bank's impairment calculation and modelling did not change during the quarter. Management believes that the overall economic uncertainty remains a risk to the Bank's customers.
Operating profit
The resulting operating profit was DKK 82m in Q3 2023 compared to DKK 78m in Q2 2023.
Non-recurring items
Non-recurring items amounted to DKK 0m in Q3 2023. The figure in Q2 2023 was DKK 6m.
Investment portfolio earnings
Investment portfolio earnings amounted to DKK 26m in Q3 2023 compared to DKK 15m in Q2 2023.
Profit before tax
Profit before tax in Q3 2023 was DKK 108m, DKK 21m higher than the pre-tax profit of DKK 87m reported for Q2 2023.
Profit before tax for the first nine months of the year totalled DKK 271m. This was significantly higher than the figure for the first nine months of 2022, which came in at DKK 136m. The two factors driving the increased profit were net interest income, which has increased due to the changed interest rate environment, and investment portfolio earnings, for which the Bank has recorded significant income compared to the losses recorded for the same period of 2022.
Balance sheet
BankNordik's total assets at 30 September 2023 amounted to DKK 12.5bn, up by DKK 326m compared to 31 December 2022. Loans and advances were DKK 8.8bn, DKK 707m more than at 31 December 2022. Deposits were DKK 8.6bn, up by DKK 254m compared to 31 December 2022.
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Interim Report Q3 2023
Liquidity invested in Danish mortgage bonds and Danish government bonds amounted to DKK 1.5bn, a decrease of DKK 130m compared to 31 December 2022. Liquidity invested in equities amounted to DKK 268m, a decrease of DKK 31m relative to 31 December 2022. Shareholders' equity at 30 September 2023 amounted to DKK 1,780m, down by DKK 37m compared to 31 December 2022 due to the payment of dividend in the amount of DKK 250m.
Capital and Liquidity
At 30 September 2023, the Group's CET1 capital ratio was 21.8%, the core capital ratio was 23.9% and the total capital ratio was 25.3%. The total capital ratio, incl. MREL capital, was 30.1%. The net profitt for the Q1- Q3 2023 period, amounting to DKK 219.0m, is not included in the calculation of the capital ratios. The Group's liquidity indicator was 199.0% at 30 September 2023, well above the requirement of 100%. The Group's LCR at 30 September 2023 was 196.6%, also well above the requirement of 100%. The Group's Net Stable Funding Ratio (NSFR) was 142.6% at 30 September 2023, well above the requirement of 100%.
Compliance with the Danish FSA Supervisory Diamond
The Supervisory Diamond | |||
Q3 2023 | Q3 2022 | FSA limit | |
Sum of large exposures | 157.8% | 149.1% | < 175% |
Liquidity indicator | 199.0% | 225.8% | >100 % |
Loan growth | 8.7% | 5.1% | < 20 % |
Property exposure | 13.3% | 13.1% | < 25 % |
At 30 September 2023, the Group was in compliance with all Supervisory Diamond requirements set by the FSA.
Events after the balance sheet date
No events have occurred since 30 September 2023 that are deemed to have a significant impact on the Group's financial position.
Guidance for 2023
On 19 September 2023, the Bank raised its financial guidance for the third time since the initial guidance for the year provided February. The original guidance was for net profit of DKK 190-220m. This was raised to DKK 210-240m on 18 April and to DKK 235-265m on 16 June 2023. The current guidance is for net profit for 2023 in the DKK 260-290m range. The drivers of the increase in expected net profit remain rising policy and market rates and the fact that the Bank's customer remain resilient in the face of inflationary pressures, keeping impairments low. In addition, the Bank's return on its investment portfolio continues to exceed expectations.
The guidance is subject to uncertainty, including impairments on loans and advances, market value adjustments, and macroeconomic developments in the markets in which the Group operates.
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Interim Report Q3 2023
Adjusted results
Restated income | |||||
Note Adjusted Income statement Q1-Q3 2023, Group, DKK 1,000 | Income statement | Restatement | statement | ||
1 | Net interest income | 309,414 | -49,458 | 259,956 | |
2 | Net fee and commission income | 65,739 | -6,227 | 59,512 | |
Net insurance income | 47,616 | 0 | 47,616 | ||
2, 4 | Other operating income | 4,887 | 23,282 | 28,169 | |
Operating income | 427,656 | -32,403 | 395,253 | ||
3 | Operating costs | 201,153 | -8,928 | 192,225 | |
Sector costs | 1,309 | 0 | 1,309 | ||
Profit before impairment charges | 225,193 | -23,475 | 201,718 | ||
Impairment charges | -15,128 | 0 | -15,128 | ||
Operating profit | 240,321 | -23,475 | 216,846 | ||
Non-recurring items | 0 | -8,928 | -8,928 | ||
Profit before investment portfolio earnings and tax | 240,321 | -32,403 | 207,918 | ||
1, 4 | Investment portfolio earnings | 30,213 | 32,403 | 62,616 | |
Profit before tax | 270,534 | 0 | 270,534 | ||
Note Adjusted Income statement Q1-Q3 2022, Group, DKK 1,000 | |||||
1 | Net interest income | 194,349 | 2,838 | 197,187 | |
2 | Net fee and commission income | 71,704 | -6,475 | 65,229 | |
Net insurance income | 37,896 | 0 | 37,896 | ||
2, 4 | Other operating income | 5,021 | 24,347 | 29,368 | |
Operating income | 308,970 | 20,710 | 329,680 | ||
3 | Operating costs | 185,033 | 0 | 185,033 | |
Sector costs | 974 | 0 | 974 | ||
Profit before impairment charges | 122,963 | 20,710 | 143,673 | ||
Impairment charges | -43,251 | 0 | -43,251 | ||
Operating profit | 166,214 | 20,710 | 186,924 | ||
Non-recurring items | 0 | 0 | 0 | ||
Profit before investment portfolio earnings and tax | 166,214 | 20,710 | 186,924 | ||
1, 4 | Investment portfolio earnings | -29,769 | -20,710 | -50,479 | |
Profit before tax | 136,445 | 0 | 136,445 | ||
Note Restatements made to the income statement, DKK 1,000 | Q1-Q3 2023 | Q1-Q3 2022 | |||
1 | Reclassification of interest income related to bonds from the item Interest income to Investment | 49,458 | 2,838 | ||
portfolio earnings. | |||||
2 | Dividends reclassified from Net fee and commission income to Other operating income. | 6,227 | 6,475 | ||
3 | Reclassification of severance costs to Non-recurring items. | 8,928 | 0 | ||
4 | Reclassification of value adjustments related to sector shares and of profit or loss from currency | 17,055 | 17,872 | ||
transactions to Other operating income. | |||||
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Interim Report Q3 2023
Segments
Adjusted Income statement, Banking | |||||||||
Q1-Q3 | Q1-Q3 | ||||||||
DKKm | Q3 2023 | Q2 2023 | Index | Q1 2023 | Q4 2022 | Q3 2022 | 2023 | 2022 | Index |
Net interest income | 96 | 86 | 111 | 78 | 72 | 67 | 260 | 197 | 132 |
Net fee and commission income | 23 | 23 | 102 | 25 | 26 | 26 | 71 | 75 | 94 |
Other operating income | 8 | 9 | 87 | 8 | 6 | 10 | 25 | 26 | 95 |
Operating income | 127 | 118 | 108 | 110 | 105 | 102 | 356 | 299 | 119 |
Operating cost | -59 | -58 | 102 | -58 | -53 | -57 | -175 | -170 | 103 |
Sector costs | 0 | 0 | 100 | 0 | 0 | 0 | -1 | -1 | 134 |
Profit before impairment charges | 68 | 60 | 113 | 51 | 52 | 45 | 180 | 128 | 141 |
Impairment charges, net | 0 | 7 | -6 | 8 | 3 | 12 | 15 | 43 | 35 |
Operating profit | 68 | 67 | 101 | 60 | 55 | 57 | 195 | 171 | 114 |
Non-recurring items | 0 | -6 | 0 | -3 | 0 | 0 | -9 | 0 | |
Profit before investment portfolio earnings and tax | 68 | 62 | 110 | 56 | 55 | 57 | 186 | 171 | 109 |
Investment portfolio earnings | 24 | 14 | 166 | 20 | 3 | -32 | 58 | -41 | -141 |
Profit before tax | 92 | 76 | 120 | 76 | 58 | 25 | 244 | 130 | 188 |
Loans and advances | 8,790 | 8,655 | 102 | 8,354 | 8,083 | 7,977 | 8,790 | 7,977 | 110 |
Deposits and other debt | 8,602 | 8,426 | 102 | 8,524 | 8,351 | 8,225 | 8,602 | 8,225 | 105 |
Mortgage credit | 2,615 | 2,567 | 102 | 2,634 | 2,648 | 2,652 | 2,615 | 2,652 | 99 |
Operating cost/income, % | 46 | 49 | 53 | 50 | 56 | 49 | 57 | ||
Number of FTE, end of period | 176 | 173 | 102 | 172 | 169 | 170 | 176 | 170 | 104 |
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Interim Report Q3 2023
Personal Banking
The Personal Banking segment reported operating income of DKK 84m for Q3 2023, an increase of DKK 12m compared to Q2 2023. Net interest income was DKK 60m in Q3 2023, up DKK 12m compared to Q2 2023. Net fee and commission income was DKK 18m in Q3 2023, DKK 2m higher than in the preceding quarter. Other operating income amounted to DKK 5m in Q3 2023, a decrease of DKK 1m relative to Q2 2023.
Operating costs were DKK 51m in Q3 2023, DKK 2m higher than in Q2 2023. Impairment charges amounted to a reversal of DKK 1m in Q3 2023, the same level as seen in Q2 2023. As a result, operating profit for Q3 2023 was DKK 33m, DKK 11m higher than in the previous quarter.
Investment portfolio earnings posted to the personal banking segment amounted to DKK 17m in Q3 2023 compared to DKK 10m in Q2 2023. Non-recurring items in the Personal Banking segment amounted to DKK 0m in Q3 2023 compared to DKK 5m in Q2 2023.
Profit before tax thus amounted to DKK 51m in Q3 2023, DKK 22m higher than the DKK 28m posted in Q2 2023.
Profit before tax for the first nine months of 2023 totalled DKK 112m. This was significantly higher than the DKK 21m posted for the same period of 2022. The drivers behind the difference were net interest income and investment portfolio earnings.
Loans and advances to personal customers in Q3 2023 rose by DKK 87m to DKK 3,859m, while brokered mortgage credit fell by DKK 81m to DKK 2,203m, both compared to 30 June 2023. Although the trend in recent years has been for Faroese households to increasingly embrace the traditional Danish financing model of 80% LTV mortgage funding with the residual in 2nd lien bank lending, interest rate conditions of the past year or so have affected the type of loans preferred by customers. The Bank expects this trend to reverse in the longer term. Deposits held by personal customers rose by DKK 94m in Q3 2023 to DKK 5,678m at 30 September.
Adjusted Income statement, Personal banking. Note regarding Q1 and Q2 2023 - NII is adjusted due to a correction of the internal interest rate. | |||||||||
Q1-Q3 | Q1-Q3 | ||||||||
DKKm | Q3 2023 | Q2 2023 | Index | Q1 2023 | Q4 2022 | Q3 2022 | 2023 | 2022 | Index |
Net interest income | 60 | 48 | 124 | 43 | 35 | 34 | 151 | 101 | 150 |
Net fee and commission income | 18 | 16 | 114 | 18 | 19 | 19 | 52 | 54 | 96 |
Other operating income | 5 | 7 | 79 | 6 | 5 | 8 | 18 | 20 | 94 |
Operating income | 84 | 71 | 117 | 67 | 60 | 60 | 222 | 175 | 127 |
Operating costs | -51 | -49 | 103 | -47 | -48 | -49 | -147 | -137 | 107 |
Sector costs | 0 | 0 | 100 | 0 | 0 | 0 | -1 | -1 | 135 |
Profit before impairment charges | 32 | 22 | 149 | 20 | 11 | 11 | 74 | 37 | 199 |
Impairment charges, net | 1 | 1 | 117 | 5 | -3 | 6 | 7 | 18 | 39 |
Operating profit | 33 | 23 | 148 | 25 | 8 | 17 | 81 | 55 | 146 |
Non-recurring items | 0 | -5 | 0 | -3 | 0 | 0 | -8 | 0 | |
Profit before investment portfolio earnings and tax | 33 | 18 | 187 | 22 | 8 | 17 | 73 | 55 | 132 |
Investment portfolio earnings | 17 | 10 | 166 | 11 | 6 | -23 | 38 | -34 | -113 |
Profit before tax | 51 | 28 | 179 | 33 | 14 | -6 | 112 | 21 | 520 |
Loans and advances | 3,859 | 3,771 | 102 | 3,673 | 3,645 | 3,626 | 3,859 | 3,626 | 106 |
Deposits and other debt | 5,678 | 5,584 | 102 | 5,392 | 5,412 | 5,388 | 5,678 | 5,388 | 105 |
Mortgage credit | 2,203 | 2,285 | 96 | 2,331 | 2,338 | 2,328 | 2,203 | 2,328 | 95 |
Number of FTE, end of period | 82 | 74 | 110 | 74 | 71 | 74 | 82 | 74 | 110 |
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Interim Report Q3 2023
Corporate Banking
Corporate Banking activities saw operating income of DKK 44m in Q3 2023, a decrease of DKK 3m compared to Q2 2023. Net interest income fell by DKK 2m to DKK 36m. Net fee and commission income fell by DKK 2m to DKK 5m, and other operating income rose by DKK 1m to DKK 3m in Q3 2023 compared to Q2 2023.
Operating costs were DKK 8m in Q3 2023, flat compared to Q2 2023. Net impairment charges during Q3 2023 amounted to DKK 2m compared to a reversal of DKK 6m in Q2 2023.
Operating profit for Q3 2023 amounted to DKK 34m, a decrease of DKK 10m relative to Q2 2023.
Investment portfolio earnings posted to the corporate banking segment in Q3 2023 amounted to DKK 7m, DKK 3m higher than in the preceding quarter.
The resulting profit before tax for the quarter was DKK 41m, down DKK 7m relative to the second quarter of 2023.
Profit before tax for the first nine months of 2023 were DKK 133m, which compares favourably with the DKK 107m reported for the same period of 2022. The main difference between the two periods was that net interest income and investment portfolio earnings were DKK 12m and DKK 28m higher respectively in the first nine months of 2023 than in the same period of 2022. Net impairment reversals were DKK 17m lower in the first nine months of 2023 than in the same period of 2022.
Corporate loans and advances increased by DKK 48m in Q3 2023 to DKK 4,932m on 30 September 2023. Customer deposits rose by DKK 100m during the period to DKK 2,924m. Brokered mortgage credit rose by DKK 130m to DKK 412m at 30 September 2023 compared to 30 June 2023.
Adjusted Income statement, Corporate Banking. Note regarding Q1 and Q2 2023 - NII is adjusted due to a correction of the internal interest rate.
Q1-Q3 | Q1-Q3 | ||||||||
DKKm | Q3 2023 | Q2 2023 | Index | Q1 2023 | Q4 2022 | Q3 2022 | 2023 | 2022 | Index |
Net interest income | 36 | 38 | 95 | 35 | 37 | 33 | 109 | 96 | 113 |
Net fee and commission income | 5 | 7 | 73 | 7 | 7 | 7 | 19 | 21 | 89 |
Other operating income | 3 | 2 | 109 | 1 | 1 | 2 | 6 | 6 | 100 |
Operating income | 44 | 47 | 93 | 43 | 45 | 42 | 134 | 124 | 108 |
Operating costs | -8 | -8 | 91 | -6 | -3 | -9 | -22 | -29 | 78 |
Sector costs | 0 | 0 | 100 | 0 | 0 | 0 | 0 | 0 | 134 |
Profit before impairment charges | 36 | 39 | 93 | 36 | 42 | 33 | 111 | 95 | 117 |
Impairment charges, net | -2 | 6 | -25 | 3 | 6 | 6 | 8 | 25 | 32 |
Operating profit | 34 | 45 | 77 | 40 | 48 | 38 | 119 | 120 | 100 |
Non-recurring items | 0 | -1 | 0 | 0 | 0 | -1 | 0 | ||
Profit before investment portfolio earnings and tax | 34 | 44 | 78 | 39 | 48 | 38 | 118 | 120 | 98 |
Investment portfolio earnings | 7 | 4 | 166 | 4 | -3 | -9 | 15 | -13 | -117 |
Profit before tax | 41 | 48 | 86 | 44 | 46 | 29 | 133 | 107 | 124 |
Loans and advances | 4,932 | 4,884 | 101 | 4,681 | 4,438 | 4,351 | 4,932 | 4,351 | 113 |
Deposits and other debt | 2,924 | 2,824 | 104 | 3,132 | 2,939 | 2,837 | 2,924 | 2,837 | 103 |
Mortgage credit | 412 | 282 | 146 | 302 | 310 | 324 | 412 | 324 | 127 |
Number of FTE, end of period | 15 | 15 | 100 | 15 | 15 | 15 | 15 | 15 | 100 |
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BankNordik P/F published this content on 02 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 07:29:50 UTC.
