Ringkjøbing Landbobank’s interim report for the first half of 2020

Nasdaq Copenhagen
London Stock Exchange
Other stakeholders

5 August 2020

Ringkjøbing Landbobank’s interim report for the first half of 2020

The financial results for the half-year are affected by the corona crisis. We are pleased, in this context, that the bank’s business model is robust, with a low rate of costs and a strong capital base.

Core earnings

(DKK million)	H1 2020	H1 2019	2019	2018	2017	2016
Total core income	1,061	1,048	2,116	2,001	1,917	1,861
Total expenses and depreciation	390	405	805	866	845	815
Core earnings before impairment charges for loans	671	643	1,311	1,135	1,072	1,046
Impairment charges for loans etc.	-141	-49	-100	-43	-70	-211
Core earnings	530	594	1,211	1,092	1,002	835
Result for the portfolio etc.	-41	+33	+49	+77	+84	+78
Special costs	8	8	15	217	22	22
Profit before tax	481	619	1,245	952	1,064	891

Highlights of the first half of 2020

• Our main focus during the corona crisis has been to help our customers and business partners
  – and of course to safeguard the working conditions of our employees

• Income increases by 1% and expenses fall by 4%, reducing the bank’s rate of costs to 36.8%

• The management estimate for impairment charges in the second quarter of 2020 has increased by DKK 198 million after impairment charges of DKK 66 million for operations in the quarter and large reversals, particularly in the agricultural segment

• 11% fall in core earnings to DKK 530 million

• 22% fall in profit before tax to DKK 481 million

• Continued big increase in customers and 2% growth in loans

• Strong capital position with common equity tier 1 capital ratio of 18.1% and MREL capital ratio of 30.0%

Yours sincerely

Ringkjøbing Landbobank John Fisker

Attachment

• Interim Report 2020 - EN