RINGKJØBING LANDBOBANK A/S ANNUAL REPORT 2022
ANNUAL REPORT 2022
ANNUAL REPORT 2022 PAGE 1
CONTENTS
Page
2 Letter to shareholders
3 Annual report – highlights
Management’s review:
6 Financial review
26 Capital structure
32 Risks and risk management
34 Corporate governance etc.
46 Corporate social responsibility
Statement and reports:
50 Management statement
51 Auditors’ reports
Financial statements:
58 Statements of income and comprehensive income
59 Core earnings
60 Balance sheet
62 Statement of changes in equity
63 Statement of capital
65 Overview of notes
66 Notes
Other information (part of the management's review):
126 Shareholders' committee
128 Board of directors
140 General management
142 Company information
143 Shareholder relations
144 Company announcements
146 Financial calendar
148 The bank’s branches
Disclaimer:
This document is a translation of an original document in Danish. The original Danish text shall be the governing text for all purposes and in
case of any discrepancy the Danish wording shall be applicable.
PAGE 2 RINGKJØBING LANDBOBANK A/S
DEAR SHAREHOLDER
-
-
1,495 million, and a 17% return on equity.
Our image and a high level of customer satisfaction in 2022 again formed the basis for
growth of 17% in the bank’s loans and 11% in deposits. This is a highly satisfactory expan
-
year for the bank.
All of this resulted in increases of 18% in the bank’s income and 9% in its expenses. We were
therefore able to reduce the bank’s cost/income ratio from 34% to 31%, which is concrete
by Moody’s, which in 2022 upgraded the bank’s Long Term Issuer Rating to Aa3.
In 2022, we partnered with SEB in Stockholm in the private banking area, which has streng-
thened the bank’s value proposition to its customers. We also took over SEB’s private bank
-
ing clients in Denmark and the associated employees in the branch in Bernstorffsgade in
Copenhagen.
The stock market responded positively to the bank’s development. The increase in the bank’s
share price and the dividend paid resulted in a positive return of 9%.
This will be effected through a dividend of DKK 7 per share and a share buy-back programme
totalling DKK 770 million.
For a number of years we have worked to visualise sustainability as a foundation stone of
the bank and we report on this again this year in our ESG report. We also report on carbon
emissions from both the bank’s loans and from the investments which the bank owns and
has under management. We will continue to support and work with all the associations,
clubs and events which are a very important part of the communities in which the bank is
rooted. MSCI recognised this development in 2022 and upgraded the bank’s ESG rating to A.
We would like to thank our highly skilled employees who have made an extraordinary effort
in a busy year. We are pleased that employee satisfaction has never been higher in our sur
-
veys. This is the foundation for our continued growth.
We are looking ahead into 2023 with mixed feelings. On the one hand we are concerned
about the economic decline which is expected in the wake of the increasing interest rate
we are entering the year on a very robust basis. Our principal tasks will be serving our exist-
ing customers and continuing the increase in new customer relationships by winning addi-
Finally we would like to thank our customers and you, our shareholders, for the strong sup
-
John Bull Fisker
CEO
ANNUAL REPORT 2022 PAGE 3
ANNUAL REPORT – HIGHLIGHTS
• Income increases by 18% and expenses increase by 9%, reducing the cost/income
ratio to 31%
• Strong credit quality with impairment charges of only DKK 2 million coincide with
increase in management estimates to DKK 794 million
• Continued big increase in new customers and growth of 17% in loans, 11% in deposits
and 6% in custody account holdings
• Partnership with SEB in private banking and a new branch in Copenhagen
• The bank’s Long Term Issuer Rating at Moody's was upgraded to Aa3
• A pay-out ratio of 65% will be effected through a dividend of DKK 7 and a DKK 770 million
buy-back programme
2022 2021 2020 2019 2018
Main gures for the bank (DKK million)
Total core income 2,862 2,433 2,179 2,116 2,001
Total expenses and depreciation 891 817 788 805 866
Core earnings before impairments 1,971 1,616 1,391 1,311 1,135
Impairment charges for loans etc. -2 -68 -223 -100 -43
Core earnings 1,969 1,548 1,168 1,211 1,092
Result for the portfolio etc. -69 +7 -9 +49 +77
Special costs 20 17 15 15 217
Prot before tax 1,880 1,538 1,144 1,245 952
Net prot for the year 1,495 1,229 920 978 778
Equity 9,295 8,723 8,146 7,610 7,189
Deposits including pooled schemes 48,700 43,740 39,639 38,128 36,993
Loans 48,342 41,179 36,241 35,465 33,350
Balance sheet total 68,980 60,357 54,862 52,941 49,651
Guarantees 7,570 10,270 9,812 9,665 7,829
Key gures for the bank (percent)
Cost/income ratio 31.1 33.6 36.2 38.0 43.3
Common equity tier 1 capital ratio 17.4 17.6 17.5 14.7 14.6
Total capital ratio 21.6 22.3 21.1 20.0 18.4
MREL capital ratio 28.9 27.8 26.7 27.3 24.9
Key gures per DKK 1 share (DKK)
Core earnings 72 54 40 41 37
Book value 337 307 280 260 240
Price, end of year 948 878 554 514 340
Dividend 7 7 7 11 10
MAIN AND KEY FIGURES
PAGE 4 RINGKJØBING LANDBOBANK A/S
PAGE 6 RINGKJØBING LANDBOBANK A/S
Core earnings
Core income
Interest
Net interest income was DKK 1,677 million in 2022 compared to DKK 1,343 million in
several reasons.
Compared to the end of 2021, lending increased by 17% in 2022. The increase in lending
is broadly based and relates to both niches and retail. Please also see the section
“Balance sheet items and contingent liabilities”.
in the fourth quarter. The development in the interest margin is attributable to the
Nationalbank, the central bank of Denmark, in the period July to December, by a total of
2.35 percentage points.
beginning of September 2022 and marked the end of negative interest paid by all
personal customers. The second interest rate change took effect in mid-October 2022
and marked the end of negative interest paid by all business customers. In the second
half of 2022, the bank reintroduced positive interest rates on savings accounts and
various special accounts including pension and children’s savings accounts, and in
several rounds the bank introduced high-interest accounts.
The full effect on income of increasing interest rates was not felt in 2022, since appli-
cable rules on giving notice of changes have reduced their impact. Interest rate changes
for the bank’s home loan products are implemented with six month’s notice and will
The future effect of interest rate changes can be calculated on the basis that the bank
has interest-bearing assets that exceed the interest-bearing debt by approximately DKK
9.3 billion. All else being equal, a 1 percentage point increase in interest level would thus
result in an increase of approximately DKK 93 million per annum in the bank’s earnings.
In 2022, we also saw two positive one-off effects on net interest income. Until now, the
bank has suffered losses on deposits from personal customers as a result of the DKK
100,000 threshold for negative interest on personal customers’ deposits. This threshold
has, of course, been removed as a result of the increasing interest rates. In addition, a
deposit margin for deposits from personal customers as well as from business
customers was restored in 2022.
FINANCIAL REVIEW
ANNUAL REPORT 2022 PAGE 7
Fee, commission and foreign exchange income
Fee, commission and foreign exchange income amounted to DKK 1,014 million in 2022,
development, attributable in part to a high level of activity.
The sources of net fee, commission and foreign exchange income were as follows:
(DKK million) 2022 2021 2020 2019 2018
Securities trading 164 171 138 128 88
Asset management and custody accounts 207 182 150 148 160
Payment handling 104 84 63 79 91
Loan fees 115 81 82 103 40
Guarantee and mortgage credit commission etc. 257 245 225 217 214
Other fees and commission 101 85 71 80 63
Foreign exchange income 66 58 41 30 31
Total 1,014 906 770 785 687
Income from “Securities trading”, “Asset management and custody accounts” and
“Foreign exchange income” is assessed as one item as it relates primarily to the bank’s
focus on private banking and other asset management.
Total income from these three items increased from DKK 411 million in 2021 to DKK 437
million in 2022, an increase of 6%.
This development should be seen in the context of a year when the value of shares and
bonds fell by approximately 15% on average but in which the bank continued to see an
increase in customers. In addition, the bank entered into a partnership with SEB in 2022
and took over SEB’s portfolio of Danish private banking clients during the summer of
2022. As the next page shows, funds in custody accounts etc. increased by a total of 6%
in 2022.
Based on the above, the development in income for the three items is considered very
satisfactory.
Income from “Guarantee and mortgage credit commission etc.” increased by 5% to DKK
12 million in 2022. The volume of arranged mortgage loans etc. increased by 2%. In ad-
dition, the bank sold off home loans totalling DKK 2.3 billion during the year. The expla-
during 2022 and consequently brought down their unpaid debts. The result in many
cases is that customers pay a lower administration fee.
An additional explanation is that the interest on sold-off home loans is booked under the
item “Guarantee and mortgage credit commission etc.” As stated in the “Interest” sec-
tion, the bank must give six months’ notice of interest rate changes for home loans and
tional income of DKK 34 million compared to 2021.
PAGE 8 RINGKJØBING LANDBOBANK A/S
The 23% increase in income from payment handling was driven, among other things,
by a return to normality for income from these activities during 2022. In addition, the
increase in customer numbers resulted in a higher transaction volume, which also con-
tributed to the positive development of the item.
The income from “Other fees and commission” also developed positively compared to
2021. This is primarily attributable to the bank’s continued focus on the pension and
insurance activities.
Funds in custody accounts etc.
(DKK million) End of End of End of End of End of
2022 2021 2020 2019 2018
Custody account holdings 79,740 74,589 54,811 48,186 39,668
Deposits in pooled schemes 4,973 5,538 4,700 4,276 3,786
Letpension/PFA Pension 3,669 3,408 2,576 2,050 1,472
Total 88,382 83,535 62,087 54,512 44,926
Sector shares and other operating income
Total earnings from banking sector shares amounted to DKK 169 million in 2022 com-
pared to DKK 179 million in 2021. The earnings derive mainly from return on the bank’s
ownership interests in BankInvest (BI Holding), DLR Kredit and PRAS. The declining earn-
ings in 2022 are primarily attributable to a marginal decline in earnings in BankInvest.
Other operating income stood at DKK 2 million in 2022, which is less than 2021, when
Core income
Total core income increased by 18% in 2022, from DKK 2,433 million in 2021 to DKK
2,862 million in 2022. The bank considers the increase highly satisfactory.
FINANCIAL REVIEW
2,001
2,116
2,179
2,433
2,862
1,800
2,000
2,200
2,400
2,600
2,800
3,000
2018 2019 2020 2021 2022
DKK million
Core income
ANNUAL REPORT 2022 PAGE 9
Expenses, depreciation and write-downs
Total expenses including depreciation and write-downs on tangible assets amounted to
DKK 891 million in 2022, compared to DKK 817 million in 2021, an increase of 9%.
Expenses for the year increased more than had been expected at the beginning of
2022, due to increased operating expenses for the bank’s new private banking branch in
Bernstorffsgade in Copenhagen in the last three quarters of the year. The bank estab-
lished the branch when entering into a strategic partnership with SEB and taking over
its Danish private banking portfolio. Various one-off expenses relating to this were also
recognised as expenses.
The cost/income ratio was 31.1% in 2022, compared to 33.6% in 2021, which is consid-
ered highly satisfactory.
A low cost/income ratio combined with good credit quality are the foundation for the
revenue shield.
The bank’s business model is functioning as planned and a cost/income ratio below the
present level is not in itself a goal. In the years to come we therefore expect increasing
costs as the bank’s income grows.
47.3
44.3
44.1
37.2
34.2
33.7
32.4
31.6 31.6
32.4
32.2
32.4
32.8
32.1
32.3
32.8
43.3
38
36.2
33.6
31.1
20
30
40
50
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Percent
Cost/income ratio
* Proforma
*
PAGE 10 RINGKJØBING LANDBOBANK A/S
Impairment charges for loans etc.
Impairment charges for loans etc. represented an expense of DKK 2 million in 2022,
compared to an expense of DKK 68 million in 2021.
During 2022, the bank’s total account for impairment charges increased by DKK 19 mil-
lion to DKK 2,302 million and amounted to 4.0% of the bank’s total loans and guarantees
at the end of 2022. DKK 1,035 million of the total account for impairment charges is
attributable to stage 3 exposures. The remainder is attributable to stage 1 and 2 expo-
sures.
The bank’s loans with suspended interest decreased from DKK 98 million at the end of
2021 to DKK 81 million at the end of 2022.
Actual losses were at a satisfactory low level in 2022. The development has generally
been positive with lower losses and impairment charges than expected at the beginning
of the year.
The positive development of the bank’s expenses for losses and impairment charges is
attributable exclusively to reduced individual impairment charges, whereas the bank’s
expenses for management estimates increased considerably. The bank thus increased
the total management estimates for credit losses by DKK 163 million to a total of DKK
794 million during 2022. Management estimates now account for 34% of the bank’s
total provisions for losses. This development is considered positive.
The need for increasing the management estimates should be seen in the light of the
marked weakening in the macroeconomic outlook, which materialised in 2022, starting
with Russia’s invasion of Ukraine in February. It should be mentioned that the bank has
not provided loans based on assets in either Russia or Ukraine.
We also note that historically, trade between the bank’s customers and the two countries
has been extremely modest. The direct economic impact on the bank’s credit quality as
a result of the war is also extremely modest.
On the other hand, the implications in the form of increasing energy prices in particular
have hit the European and Danish economies in general and added more fuel to gene-
a level which has not been seen for decades, and frequent, substantial interest rate
increases have been needed from the respective central banks. The long-term interest
rates have also increased noticeably. The bank’s exposure to particularly energy-inten-
sive business customers is modest, however.
All else being equal, the factors above will result in a declining credit quality and for the
quality. We continue to be of the opinion, however, that the credit quality of the bank’s
loans is at a satisfactory high level.
the bank has largely been able to reverse previous years’ management estimates rela-
ting to credit uncertainty associated with the coronavirus pandemic. The bank’s expense
for individual losses and impairment charges in the period with coronavirus was very
low.
FINANCIAL REVIEW
ANNUAL REPORT 2022 PAGE 11
housing market where revenue and prices are falling. However, highly-geared customers
Danish FSA’s guidelines. This ensures great robustness in the current interest rate situa-
impairment charges but has also increased the management estimates relating to per-
sonal customers. The cumulative impairment ratio for personal customers is 3%.
The bank continues to have substantial impairment charges relating to its exposures to
agriculture. With the exception of pig production, the development in 2022 was positive,
however, with good earnings for both dairy and crop farmers. The bank’s exposure to
pig farms accounted for 0.9% of total loans and guarantees and at the end of 2022, the
bank’s cumulative impairment ratio was 32%.
of real property is granted without prior debt. The increasing interest rates naturally
depress prices and put revenue for investment properties under pressure. The bank
continually assesses the value of the security under the mortgages provided and we
continue to believe that the bank’s loans are generally well covered. However, acknow-
ledging the weakening property market and uncertain prospects, the bank has also
Core earnings
Core earnings in 2022 totalled DKK 1,969 million compared to the previous year’s DKK
1,548 million, an increase of 27%.
(DKK million) 2022 2021 2020 2019 2018
Total core income 2,862 2,433 2,179 2,116 2,001
Total expenses and depreciation 891 817 788 805 866
Core earnings before impairments 1,971 1,616 1,391 1,311 1,135
Impairment charges for loans etc. -2 -68 -223 -100 -43
Core earnings 1,969 1,548 1,168 1,211 1,092
PAGE 12 RINGKJØBING LANDBOBANK A/S
-
ops. Apart from 2020, the bank has been able to increase core earnings per share each
year in the period 2013-2022.
In 2022, “Core earnings per share” increased by 31% from DKK 54.4 in 2021 to DKK 71.5
in 2022. The development in the bank’s earnings and the share buy-back programmes
completed thus had a positive effect on “Core earnings per share”.
Result for the portfolio etc.
The result for the portfolio etc. including portfolio funding costs was negative by DKK
69 million net for 2022. In 2021, the result for the portfolio etc. was positive by DKK 7
million net.
Despite the bank keeping the interest rate risk at a low level throughout 2022, Danmarks
Nationalbank’s rate increases in the third quarter of 2022 and the expectations for the
future rate development also led to increases in the very short rates, which negatively
affected the value of the bank’s holding of short-term mortgage credit bonds.
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 20 million in 2022,
which is marginally higher than the DKK 17 million in 2021. The increase is attributable
to amortisation of the purchase in mid-2021 of the BIL Danmark (Banque Internationale
à Luxembourg) client portfolio.
FINANCIAL REVIEW
18.9
22.4
25.7
27.6
30.9
36.5
41.4
40.2
54.4
71.5
0
10
20
30
40
50
60
70
80
2013 2014 2015 2016 2017 2018* 2019 2020 2021 2022
Core earnings per DKK 1 share (DKK)
ANNUAL REPORT 2022 PAGE 13
Prot before and after tax and follow-up on nancial expectations for 2022
equity, which is considered satisfactory.
average equity.
In January 2022, the bank announced its expectations for core earnings for 2022 in the
development in lending and a satisfactory increase in customers, which was expected to
1,700-1,950 million range.
quarters of the year as well as continued good credit quality and a loss level that has
remained on a very satisfactory level.
realised within the ranges announced on 5 December 2022.
Balance sheet items and contingent liabilities
The bank’s balance sheet total stood at DKK 68,980 million at the end of 2022, com-
pared to DKK 60,357 million the year before.
Loans increased by 17% in 2022 from DKK 41,179 million at the end of 2021 to DKK
48,342 million at the end of 2022.
The increase in loans for the year should be seen in the context of the growth in loans in
2020 and 2021, which was 2% and 14% respectively. The coronavirus affected 2020 in
particular, and in 2020 and 2021 many businesses reduced their inventories and debtors
and postponed their VAT and tax payments.
Not until the fourth quarter of 2021 did the bank see many business customers again
drawing on their facilities at the bank, which continued in 2022. Many businesses built
up inventories and increased their debtors, and most of the bank’s business customers
have repaid their VAT and tax loans to the state.
years, which has positively affected the bank’s loans and other business volume.
private banking client portfolios of BIL Danmark and SEB in 2021 and 2022 respectively.
Deposits including pooled schemes increased by 11% in 2022 from DKK 43,740 million
at the end of 2021 to DKK 48,700 million at the end of 2022.
PAGE 14 RINGKJØBING LANDBOBANK A/S
Equity increased from DKK 8,723 million at the end of 2021 to DKK 9,295 million at the
end of 2022.
The bank’s contingent liabilities, including guarantees, at the end of the year amounted
to DKK 7,570 million, compared to DKK 10,270 million at the end of 2021. The decrease
is primarily a result of the slowdown of the housing market.
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.
With an increase of 9% compared to the end of 2021, the development in the bank’s total
credit intermediation was positive in 2022. The development is shown in the following
summary and please also refer to page 7:
Total credit intermediation 31 Dec. 31 Dec. 31 Dec. 31 Dec.
(DKK million) 2022 2021 2020 2019
Loans and other receivables 48,342 41,179 36,241 35,465
Arranged mortgage loans etc. – Totalkredit 45,248 43,849 39,454 36,374
Arranged mortgage loans – DLR Kredit 10,001 9,778 9,511 9,029
Arranged mortgage loans – others 255 394 - -
Total 103,846 95,200 85,206 80,868
Securities and market risk
The item “Shares, etc.” amounted to DKK 1,332 million at the end of 2022, with DKK 37
shares etc., mainly in the companies DLR Kredit, BI Holding (BankInvest) and PRAS.
AAA-rated Danish mortgage credit bonds.
rest level – was computed as 0.7% of the bank’s tier 1 capital on 31 December 2022, the
equivalent of DKK 61 million.
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 2022:
Value at Risk Risk relative to equity
Risk in DKK million end of year in %
Highest risk of loss: 80.3 0.86%
Lowest risk of loss: 7.5 0.08%
Average risk of loss: 30.1 0.32%
End-of-year risk of loss: 50.0 0.54%
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. Please see
note 51 on pages 100-101 for further information.
FINANCIAL REVIEW
ANNUAL REPORT 2022 PAGE 15
Liquidity
In terms of liquidity, the bank’s short-term funding liabilities total DKK 2.8 billion, com-
prising debt to credit institutions and issued bonds with term to maturity of less than
12 months. This is balanced by short-term liquidity management deposits in Danmarks
Nationalbank, receivables from credit institutions with term to maturity of less than
12 months and securities at fair value totalling DKK 12.3 billion, which means the total
excess cover is DKK 9.5 billion.
The bank’s deposits (excluding pooled schemes) and equity exceeded its loans by DKK
disregarded in terms of liquidity.
In terms of liquidity, the bank must comply with the statutory requirement of at least
100% for both of the two liquidity ratios LCR and NSFR.
On 31 December 2022 the bank’s LCR was 188% and its NSFR 119%. The bank thus met
the statutory requirement for both ratios by a good margin.
The Supervisory Diamond
The bank complies with the Danish FSA’s Supervisory Diamond. The Supervisory Dia-
mond contains four different benchmarks and associated limit values which Danish
banks are expected to observe.
given in the following table.
Benchmark Limit value 2022 2021 2020 2019 2018
Liquidity benchmark >100% 143.4% 161.1% 177.6% 193.2% 179.5%
Total large exposures <175% 118.0% 109.8% 99.8% 121.0% 106.0%
Growth in loans <20% 17.5% 13.5% 2.2% 6.3% 72.3%*
Real property exposure <25% 20.0% 18.4% 17.9% 17.5% 15.8%
* The growth was mainly caused by the merger. The proforma growth in loans relative to December 2017 was 7.0%.
During 2022, the bank exceeded the limit value for the benchmark “Growth in loans” both
at the end of June 2022 and at the end of September 2022.
The two cases of exceeding the benchmark are linked to reasons stated in the section
“Balance sheet items and contingent liabilities”. In August 2022, the bank received a risk
information from the Danish FSA regarding exceeding of the limit value but, as stated
in that risk information, the bank expected the growth in loans to fall again at the end of
2022, which it did.
margin at the end of 2022.
PAGE 16 RINGKJØBING LANDBOBANK A/S
Financial rating
The bank is rated by the international credit rating agency Moody’s Investors Service. In
May 2022, the bank’s Long Term Issuer Rating was upgraded from “A1” to “Aa3”.
The most important ratings at the end of 2022 were as follows:
Rating Assigned rating
Long Term Bank Deposits Aa3
Long Term Issuer Rating Aa3
Short Term Bank Deposits P-1
Short Term Issuer Rating P-1
Outlook Stable
The bank’s share
The bank’s share is listed on the Nasdaq Copenhagen and the volume in circulation is
OMX Copenhagen and the Stoxx Europe 600 index.
At the beginning of 2022 the share price was 878. At the end of 2022, the price was 948.
The market capitalisation totalled DKK 26.9 billion at the end of the year.
The return on the share in 2022 was 9% including the dividend of DKK 7.0 distributed in
2022.
FINANCIAL REVIEW
0
1
2
3
4
5
6
7
8
9
10
11
0
100
200
300
400
500
600
700
800
900
1,000
1,100
jan/01
jul/01
jan/02
jul/02
jan/03
jul/03
jan/04
jul/04
jan/05
jul/05
jan/06
jul/06
jan/07
jul/07
jan/08
jul/08
jan/09
jul/09
jan/10
jul/10
jan/11
jul/11
jan/12
jul/12
jan/13
jul/13
jan/14
jul/14
jan/15
jul/15
jan/16
jul/16
jan/17
jul/17
jan/18
jul/18
jan/19
jul/19
jan/20
jul/20
jan/21
jul/21
jan/22
jul/22
jan/23
Dividend (DKK)
Share price (DKK)
Share price and dividend
Share price
Dividend in DKK per share of nom. DKK 1
6.0
0.0
0.00.0
0.0
0.0 1.8 5.0 5.5
6.0 2.4
2.6
2.8 5.0 5.2 6.0 97.2 10 11 7
7
7
ANNUAL REPORT 2022 PAGE 17
on 31 December 2022, the average annual return on an investment in the bank’s shares
at the beginning of 2001 is 20%. As indicated in the chart below, the bank’s share has
outperformed the index for banks (OMX Copenhagen Banks PI) in the same period.
ESG
institution wanting to play an important role in society.
In the third quarter of 2022, the bank announced a Green Bond Framework which will
enable the bank to offer green bonds under its EMTN programme in future. The EMTN
programme is listed on Euronext Dublin in Ireland.
The research business Sustainalytics evaluated the framework and issued a second-
party opinion on it.
In addition to this annual report, the bank also publishes its fourth ESG report. The ESG
report contains the bank’s statutory statement on corporate social responsibility.
emissions from the securities it either owns or has under management.
-
over time more business customers are expected to state their actual carbon emissions.
The bank’s ESG affairs are also evaluated by external parties. This includes rating by
MSCI, one of the world’s largest ESG rating agencies.
In July 2022, MSCI upgraded the bank’s ESG rating from BBB to A, which is the third-
highest rating on MSCI’s 7-point rating scale.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
jan/01
jul/01
jan/02
jul/02
jan/03
jul/03
jan/04
jul/04
jan/05
jul/05
jan/06
jul/06
jan/07
jul/07
jan/08
jul/08
jan/09
jul/09
jan/10
jul/10
jan/11
jul/11
jan/12
jul/12
jan/13
jul/13
jan/14
jul/14
jan/15
jul/15
jan/16
jul/16
jan/17
jul/17
jan/18
jul/18
jan/19
jul/19
jan/20
jul/20
jan/21
jul/21
jan/22
jul/22
jan/23
Index
RILBA OMX Bank PI
Development in OMX Bank PI index and Landbobank share
PAGE 18 RINGKJØBING LANDBOBANK A/S
The Danish FSA’s ordinary inspection
four years after the last ordinary inspection.
In January 2022, the FSA requested substantial material for use in the inspection, which
was conducted during visits to the bank in May and June 2022.
The following areas were examined during the inspection: The work of the board of
directors and general management; assessment of the business model; the compliance
function; the risk management function; the credit area including review of exposures;
requirement calculation; etc.
The outcome of the inspection was published in September 2022, and the bank received
various orders of an administrative nature.
At the same time, the bank was very pleased to note that the Danish FSA assessed the
and with the bank’s impairment level, and agreed that the solvency requirement calcu-
In January 2023, the bank has submitted a report with documentation to the Danish FSA
regarding compliance with the orders received.
Reputation/image, customer satisfaction and Bank of the Year
In September 2022, the market research company Voxmeter published a reputation/
The analysis is based on 39,000 respondents and the bank’s two brands obtained the
following places:
The latter advanced one place compared to the survey in 2021.
in partnership with the market research company Wilke. The analysis “Image in Finance
institutions.
The Voxmeter survey is by far the biggest in Denmark and based on more than 60,000
respondents. The bank’s two brands obtained the following places:
FINANCIAL REVIEW
ANNUAL REPORT 2022 PAGE 19
reputation and customer satisfaction.
Happy customers and skilled staff are fundamental to a good bank.
New mobile banking service
In 2021 the bank’s IT supplier, Bankdata, supplied a new mobile banking app for the
bank’s personal customers.
More functionalities were added to the new app during 2022 and it now has a wide
range of uses.
First and foremost, the mobile banking app of course contains all the functions personal
customers are using today for their ordinary day-to-day banking business, including a
modern investment platform enabling them to buy and sell shares online on stock
exchanges in most of the world.
It also contains various self-serve and self-compliance solutions. Digital signing of
documents has been possible for several years via the mobile banking app. Now, custo-
preferences, submit information relating to anti-money laundering and have a written
dialogue with their adviser.
In addition, the mobile banking app can serve as a communication platform between
the customers and the bank, and via third-party integrations the app gives customers
access to relevant details on their own matters from the bank’s partners, which today
comprise Totalkredit, Letpension and Privatsikring.
Private banking
-
ternationale à Luxembourg S.A., of Luxembourg, regarding takeover of all BIL Danmark’s
clients, the private banking area was expanded once again in 2022.
In April 2022, the bank thus entered into an agreement with SEB on taking over SEB’s
Danish private banking client portfolio and on a strategic partnership in the private
banking segment.
banking branch in the SEB building in Bernstorffsgade in Copenhagen and took over a
number of competent employees from SEB.
2022 and in the half-year the bank worked on strengthening and developing the resour-
ces in the new branch, both in private banking and core banking comprising mortgage
credit, pensions and other products, to ensure the customers taken over are offered the
full product range covering the day-to-day banking needs of both personal and business
customers.
The bank has also worked with SEB to determine the framework and structure of the
both banks.
PAGE 20 RINGKJØBING LANDBOBANK A/S
Taking over the employees from SEB, combined with employment of a number of new
employees with a high level of expertise and extensive experience from the sector,
strengthened the bank’s investment organisation which has thus been raised to a new
level. The organisation was thus strengthened and prepared for the bank’s continued
New deposit products
Following the increasing interest rates, the bank introduced new deposit products with
positive interest rates in the second half of 2022. The new products are savings
accounts offered to both personal and business customers with different commitment
periods. The bank has also reintroduced a savings account with no commitment period
and the possibility of making withdrawals.
Head ofce enlargement
than 1,300 m² was completed and taken into use and it now houses a number of the
bank’s departments.
customers and employees as there are more conference rooms and more space in the
growth strategy.
Expected results and plans for 2023
million.
2022 was a year when the bank continued its organic growth strategy and took over
SEB’s Danish private banking client portfolio. Both helped strengthen and increase the
bank’s customer base.
organic growth strategy by focusing on serving its existing customers and attracting
more new ones. However, we are also looking ahead to a year in which macroeconomic
uncertainty has increased due to increasing consumer and energy prices, increasing
interest rates and other uncertainties resulting from the war in Ukraine, all of which also
result in uncertainty in the development of impairment charges.
Based on the above, the bank’s expectations for 2023 are as follows:
• Total core income is expected to develop positively in 2023 compared to 2022
of customers and increase in business volume are expected to continue.
• An increase of approximately 7% in total expenses is expected in 2023 compared
to 2022
• Impairment charges are expected to increase during 2023
On the basis of the above, the bank maintains the previously announced expectations
year in the range DKK 1,200-1,600 million.
FINANCIAL REVIEW
ANNUAL REPORT 2022 PAGE 21
Accounting policies
equity or balance sheet total.
For a detailed description of the accounting policies, please see “Accounting policies
etc.” in note 57 on page 110-119.
Events after the reporting period
for 2022.
Comments on the fourth quarter of 2022
Core income
Core income of DKK 799 million in the fourth quarter of 2022 is the highest ever realised
by the bank in a single quarter.
quarter of the year.
Expenses
Expenses in the quarter totalled DKK 236 million compared to DKK 217 million in the
fourth quarter of 2021. Apart from general increases in expenses, the development is
attributable to increased expenses associated with the new private banking branch in
Copenhagen.
Impairment charges for loans
With the good credit quality, impairment charges in the quarter followed the pattern
The management estimate in the quarter increased during the quarter: From DKK 746
million at the beginning to DKK 794 million at the end of the quarter.
Result for the portfolio
The result for the portfolio in the quarter was positive by DKK 11 million and the bank
thus recovered some of the negative result for the portfolio in the three preceding
quarters.
PAGE 22 RINGKJØBING LANDBOBANK A/S
Quarterly overviews
The following pages contain quarterly overviews comprising core earnings, balance
sheet items and contingent liabilities, and statement of capital.
Core earnings
(DKK million)
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Q4
2021
Q3
2021
Q2
2021
Q1
2021
Q4
2020
Q3
2020
Q2
2020
Q1
2020
Q4
2019
Q3
2019
Q2
2019
Q1
2019
Q4
2018
Q3
2018
Q2
2018
Q1
2018
Net interest income 511 410 390 366 355 336 327 325 321 319 311 305 292 294 296 291 289 287 284 287
Net fee and commission
income excluding securities
trading 190 199 196 199 182 170 166 159
156 147 136 152 154 163 159 150 146 136 141 146
Income from sector shares etc. 46 38 41 44 47 49 43 40 43 38 35 35 36 36 36 37 39 34 49 38
Foreign exchange income 17 18 16 15 15 14 13 16 13 9 9 10 8 9 8 6 8 8 9 6
Other operating income 1 0 0 1 0 0 1 4 1 0 1 0 5 7 0 1 2 1 2 1
Total core income
excluding securities trading 765 665 643 625 599 569 550 544 534 513 492 502 495 509 499 485 484 466 485 478
Securities trading 34 40 41 49 52 34 29 56 32 39 28 39 35 29 23 41 17 23 20 28
Total core income 799 705 684 674 651 603 579 600 566 552 520 541 530 538 522 526 501 489 505 506
Staff and administration
expenses 229 214 221 207 206 191 195 198 206 179 190 191 202 180 198 198 221 203 217 206
Depreciation and write-downs
on tangible assets 5 3 4 1 9 3 4 3 4 5 2 3 9 8 4 2 3 3 2 8
Other operating expenses 2 2 1 2 2 2 2 2 2 2 0 4 1 0 2 1 1 0 1 1
Total expenses etc. 236 219 226 210 217 196 201 203 212 186 192 198 212 188 204 201 225 206 220 215
Core earnings before
impairment charges for loans 563 486 458 464 434 407 378 397
354 366 328 343 318 350 318 325 276 283 285 291
Impairment charges for loans
and other receivables etc. 0 0 -1 -1 -7 -13 -19 -29 -38 -44 -66 -75 -25 -26 -24 -25 -25 -20 -11 +13
Core earnings 563 486 457 463 427 394 359 368 316 322 262 268 293 324 294 300 251 263 274 304
Result for the portfolio etc. +11 -61 -10 -9 +11 -1 +7 -10 +15 +17 +29 -70 -4 +20 +7 +26 -20 +4 +3 +90
Amortisation and write-downs
on intangible assets 5 5 5 5 5 4 4 4 4 3 4 4 4 3 4 4 4 3 12 6
Merger and restructuring
costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 26 46 46 4
Non-recurring costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 69 0
Prot before tax 569 420 442 449 433 389 362 354 327 336 287 194 285 341 297 322 200 218 150 384
Tax 110 91 94 90 79 87 71 72 64 64 60 36 62 66 76 63 46 37 33 58
Net prot for the year 459 329 348 359 354 302 291 282 263 272 227 158 223 275 221 259 154 181 117 326
FINANCIAL REVIEW
ANNUAL REPORT 2022 PAGE 23
Quarterly overviews
The following pages contain quarterly overviews comprising core earnings, balance
sheet items and contingent liabilities, and statement of capital.
Core earnings
(DKK million)
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Q4
2021
Q3
2021
Q2
2021
Q1
2021
Q4
2020
Q3
2020
Q2
2020
Q1
2020
Q4
2019
Q3
2019
Q2
2019
Q1
2019
Q4
2018
Q3
2018
Q2
2018
Q1
2018
Net interest income 511 410 390 366 355 336 327 325 321 319 311 305 292 294 296 291 289 287 284 287
Net fee and commission
income excluding securities
trading 190 199 196 199 182 170 166 159
156 147 136 152 154 163 159 150 146 136 141 146
Income from sector shares etc. 46 38 41 44 47 49 43 40 43 38 35 35 36 36 36 37 39 34 49 38
Foreign exchange income 17 18 16 15 15 14 13 16 13 9 9 10 8 9 8 6 8 8 9 6
Other operating income 1 0 0 1 0 0 1 4 1 0 1 0 5 7 0 1 2 1 2 1
Total core income
excluding securities trading 765 665 643 625 599 569 550 544 534 513 492 502 495 509 499 485 484 466 485 478
Securities trading 34 40 41 49 52 34 29 56 32 39 28 39 35 29 23 41 17 23 20 28
Total core income 799 705 684 674 651 603 579 600 566 552 520 541 530 538 522 526 501 489 505 506
Staff and administration
expenses 229 214 221 207 206 191 195 198 206 179 190 191 202 180 198 198 221 203 217 206
Depreciation and write-downs
on tangible assets 5 3 4 1 9 3 4 3 4 5 2 3 9 8 4 2 3 3 2 8
Other operating expenses 2 2 1 2 2 2 2 2 2 2 0 4 1 0 2 1 1 0 1 1
Total expenses etc. 236 219 226 210 217 196 201 203 212 186 192 198 212 188 204 201 225 206 220 215
Core earnings before
impairment charges for loans 563 486 458 464 434 407 378 397
354 366 328 343 318 350 318 325 276 283 285 291
Impairment charges for loans
and other receivables etc. 0 0 -1 -1 -7 -13 -19 -29 -38 -44 -66 -75 -25 -26 -24 -25 -25 -20 -11 +13
Core earnings 563 486 457 463 427 394 359 368 316 322 262 268 293 324 294 300 251 263 274 304
Result for the portfolio etc. +11 -61 -10 -9 +11 -1 +7 -10 +15 +17 +29 -70 -4 +20 +7 +26 -20 +4 +3 +90
Amortisation and write-downs
on intangible assets 5 5 5 5 5 4 4 4 4 3 4 4 4 3 4 4 4 3 12 6
Merger and restructuring
costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 26 46 46 4
Non-recurring costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 69 0
Prot before tax 569 420 442 449 433 389 362 354 327 336 287 194 285 341 297 322 200 218 150 384
Tax 110 91 94 90 79 87 71 72 64 64 60 36 62 66 76 63 46 37 33 58
Net prot for the year 459 329 348 359 354 302 291 282 263 272 227 158 223 275 221 259 154 181 117 326
Core earnings – continued
PAGE 24 RINGKJØBING LANDBOBANK A/S
Quarterly overviews – continued
Balance sheet items and contingent liabilities
(DKK million)
End of
Q4
2022
End of
Q3
2022
End of
Q2
2022
End of
Q1
2022
End of
Q4
2021
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
End of
Q4
2018
End of
Q3
2018
End of
Q2
2018
End of
Q1
2018
Loans 48,342 48,052 46,681 43,352 41,179 38,849 37,268 37,210 36,241 35,479 35,260 36,130 35,465 34,757 34,528 34,195 33,350 32,192 31,970 31,647
Deposits including pooled
schemes 48,700 47,637 46,144 42,599 43,740 41,475 41,376 41,766 39,639 39,204 39,670 37,051 38,128 38,554 39,070 37,439 36,993 36,866 37,313 36,307
Equity 9,295 9,009 8,864 8,671 8,723 8,563 8,333 8,132 8,146 7,884 7,612 7,380 7,610 7,426 7,231 7,071 7,189 7,171 7,066 6,644
Balance sheet total 68,980 67,463 65,226 60,157 60,357 57,562 57,123 56,845 54,862 53,956 53,984 51,531 52,941 53,601 52,426 50,266 49,651 49,287 49,859 47,349
Contingent liabilities 7,570 8,998 11,244 12,432 10,270 10,886 11,811 10,370 9,812 9,590 9,379 9,992 9,665 10,836 10,466 7,976 7,829 8,078 7,809 7,821
Statement of capital
(DKK million)
End of
Q4
2022
End of
Q3
2022
End of
Q2
2022
End of
Q1
2022
End of
Q4
2021
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
End of
Q4
2018
End of
Q3
2018
End of
Q2
2018
End of
Q1
2018
Common equity tier 1 8,154 7,532 7,720 7,471 7,632 7,255 7,274 7,122 7,277 7,049 6,973 6,109 6,072 5,624 5,441 5,284 5,326 5,099 4,978 5,185
Tier 1 capital 8,154 7,532 7,720 7,471 7,632 7,255 7,274 7,122 7,277 7,049 6,973 6,109 6,072 5,624 5,441 5,284 5,326 5,099 4,978 5,185
Total capital 10,107 9,499 9,730 9,476 9,635 8,743 8,763 8,614 8,774 8,553 8,507 8,009 8,242 7,786 6,854 6,667 6,711 6,470 6,348 5,757
MREL capital 13,533 12,937 13,183 12,445 12,033 11,167 11,596 10,837 11,112 11,587 11,580 10,985 11,248 10,790 9,551 9,033 9,057 - - -
Total risk exposure 46,855 47,326 46,940 44,880 43,285 41,729 41,063 42,271 41,561 39,682 38,900 41,444 41,223 39,547 40,106 38,308 36,385 34,123 33,784 34,314
(Percent)
Common equity tier
1 capital ratio 17.4 15.9 16.4 16.6 17.6 17.4 17.7 16.8
17.5 17.8 17.9 14.7 14.7 14.2 13.6 13.8 14.6 15.0 14.7 15.1
Tier 1 capital ratio 17.4 15.9 16.4 16.6 17.6 17.4 17.7 16.8 17.5 17.8 17.9 14.7 14.7 14.2 13.6 13.8 14.6 15.0 14.7 15.1
Total capital ratio 21.6 20.1 20.7 21.1 22.3 21.0 21.3 20.4 21.1 21.6 21.9 19.3 20.0 19.7 17.1 17.4 18.4 19.0 18.8 16.8
MREL capital ratio 28.9 27.3 28.1 27.7 27.8 26.8 28.2 25.6 26.7 29.2 29.8 26.5 27.3 27.3 23.8 23.6 24.9 - - -
FINANCIAL REVIEW
ANNUAL REPORT 2022 PAGE 25
Quarterly overviews – continued
Balance sheet items and contingent liabilities
(DKK million)
End of
Q4
2022
End of
Q3
2022
End of
Q2
2022
End of
Q1
2022
End of
Q4
2021
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
End of
Q4
2018
End of
Q3
2018
End of
Q2
2018
End of
Q1
2018
Loans 48,342 48,052 46,681 43,352 41,179 38,849 37,268 37,210 36,241 35,479 35,260 36,130 35,465 34,757 34,528 34,195 33,350 32,192 31,970 31,647
Deposits including pooled
schemes 48,700 47,637 46,144 42,599 43,740 41,475 41,376 41,766 39,639 39,204 39,670 37,051 38,128 38,554 39,070 37,439 36,993 36,866 37,313 36,307
Equity 9,295 9,009 8,864 8,671 8,723 8,563 8,333 8,132 8,146 7,884 7,612 7,380 7,610 7,426 7,231 7,071 7,189 7,171 7,066 6,644
Balance sheet total 68,980 67,463 65,226 60,157 60,357 57,562 57,123 56,845 54,862 53,956 53,984 51,531 52,941 53,601 52,426 50,266 49,651 49,287 49,859 47,349
Contingent liabilities 7,570 8,998 11,244 12,432 10,270 10,886 11,811 10,370 9,812 9,590 9,379 9,992 9,665 10,836 10,466 7,976 7,829 8,078 7,809 7,821
Statement of capital
(DKK million)
End of
Q4
2022
End of
Q3
2022
End of
Q2
2022
End of
Q1
2022
End of
Q4
2021
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
End of
Q4
2018
End of
Q3
2018
End of
Q2
2018
End of
Q1
2018
Common equity tier 1 8,154 7,532 7,720 7,471 7,632 7,255 7,274 7,122 7,277 7,049 6,973 6,109 6,072 5,624 5,441 5,284 5,326 5,099 4,978 5,185
Tier 1 capital 8,154 7,532 7,720 7,471 7,632 7,255 7,274 7,122 7,277 7,049 6,973 6,109 6,072 5,624 5,441 5,284 5,326 5,099 4,978 5,185
Total capital 10,107 9,499 9,730 9,476 9,635 8,743 8,763 8,614 8,774 8,553 8,507 8,009 8,242 7,786 6,854 6,667 6,711 6,470 6,348 5,757
MREL capital 13,533 12,937 13,183 12,445 12,033 11,167 11,596 10,837 11,112 11,587 11,580 10,985 11,248 10,790 9,551 9,033 9,057 - - -
Total risk exposure 46,855 47,326 46,940 44,880 43,285 41,729 41,063 42,271 41,561 39,682 38,900 41,444 41,223 39,547 40,106 38,308 36,385 34,123 33,784 34,314
(Percent)
Common equity tier
1 capital ratio 17.4 15.9 16.4 16.6 17.6 17.4 17.7 16.8
17.5 17.8 17.9 14.7 14.7 14.2 13.6 13.8 14.6 15.0 14.7 15.1
Tier 1 capital ratio 17.4 15.9 16.4 16.6 17.6 17.4 17.7 16.8 17.5 17.8 17.9 14.7 14.7 14.2 13.6 13.8 14.6 15.0 14.7 15.1
Total capital ratio 21.6 20.1 20.7 21.1 22.3 21.0 21.3 20.4 21.1 21.6 21.9 19.3 20.0 19.7 17.1 17.4 18.4 19.0 18.8 16.8
MREL capital ratio 28.9 27.3 28.1 27.7 27.8 26.8 28.2 25.6 26.7 29.2 29.8 26.5 27.3 27.3 23.8 23.6 24.9 - - -
Balance sheet items and contingent liabilities – continued
Statement of capital – continued
PAGE 26 RINGKJØBING LANDBOBANK A/S
CAPITAL STRUCTURE
Share buyback programmes, capital reduction
and prot distribution
The bank’s board of directors initiated share buy-back programmes in both February and
July 2022, each for DKK 369 million. Of the total of DKK 738 million, DKK 600 million
for 2020.
Both share buy-back programmes were completed under the Safe Harbour regulation
with the purpose of cancelling the shares bought at a future general meeting.
The annual general meeting in March 2022 also decided to cancel the 688,055 shares in
2022.
It is proposed to the general meeting in March 2023 that the 888,327 shares bought in
a capital reduction, thus reducing the number of shares in the bank from 28,379,666 to
27,491,339.
The bank’s actual share capital at the end of the year was thus DKK 27,548,139 in nom.
DKK 1 shares, see below.
Share capital/
Number of shares
Beginning of 2022 29,067,721
Capital reduction by cancellation of own shares in May 2022 -688,055
Share capital at end of 2022 28,379,666
Share buy-back programmes – purchased in 2022 -831,527
Actual share capital at end of 2022 27,548,139
Share buy-back programmes – purchased in 2023 -56,800
Actual share capital following a capital reduction in 2023 27,491,339
The bank has completed an application process at the Danish FSA regarding distribu-
The board of directors proposes that a dividend of DKK 7 per share be paid for the 2022
The board of directors further intends to initiate share buy-back programmes totalling
DKK 770 million.
begin on 2 February 2023 and end on 27 July 2023. Implementation of the programme
the board of directors to acquire the bank’s own shares.
CAPITAL STRUCTURE
ANNUAL REPORT 2022 PAGE 27
It is therefore proposed to the general meeting that the bank’s board of directors be
authorised, as in previous years, to permit the bank to acquire its own shares, in accor-
dance with current legislation, until the next annual general meeting, to a total nominal
value of ten percent (10%) of the share capital, such that the shares can be acquired at
current market price plus or minus ten percent (+/- 10%) at the time of acquisition.
The share buy-back programmes will be initiated in several rounds. This means that the
amount of the share buy-back programmes must be deducted from the bank’s total capi-
tal on the dates in 2023 when the bank obtains the Danish FSA’s approval and the board
of directors decides to initiate the programmes.
Seen in isolation, this will mean a reduction of the bank’s common equity tier 1 capital
ratio by a total of 1.8 percentage points calculated on the basis of the capital structure
programme of DKK 385 million.
Capital objectives and pay-out ratios
by the bank.
At the beginning of 2022, the countercyclical capital buffer was 0%. During 2022, the
capital buffer was increased twice, each time by 1 percentage point, which means it
totalled 2% at the end of 2022. With effect from 30 September 2023, the buffer will be
increased by an additional 0.5 percentage point. The Systemic Risk Council announced
on 20 December 2022 that the Council is ready to recommend a reduction of the buffer
severe tightening of lending to households and businesses.
On the basis of the above and in connection with presenting this annual report, the
board of directors has decided to maintain the current capital targets which specify that
the common equity tier 1 capital ratio must be at least 13.5%, the total capital ratio must
be at least 17.0% and the MREL capital ratio for covering the MREL requirement must be
at least 25.0% including the capital buffers. All capital targets must be met at the end of
always be met.
The bank intends to continue the policy for distributions practised in recent years. The
policy has been characterised by stable dividends combined with share buy-back to
amount and its future growth opportunities as envisaged by management.
For quite a few years, the bank’s pay-out ratios have been between 60% and 65%. Due
increased to 77% to compensate for the low pay-out ratios in the preceding years. With
now back to its normal level.
PAGE 28 RINGKJØBING LANDBOBANK A/S
Current capital structure
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 2022 was DKK 9,295 million.
At the end of 2022, the bank’s tier 1 capital ratio was 17.4%, and the total capital ratio
21.6%.
The bank's capital ratios as at the end of December 2018-2022 were as follows:
Capital ratios 2022 2021 2020 2019 2018
Common equity tier 1 capital ratio 17.4 17.6 17.5 14.7 14.6
Tier 1 capital ratio 17.4 17.6 17.5 14.7 14.6
Total capital ratio 21.6 22.3 21.1 20.0 18.4
MREL capital ratio 28.9 27.8 26.7 27.3 24.9
Calculated without IFRS 9 transition programmes, the bank’s tier 1 capital ratio was
16.5% and the total capital ratio 20.7% on 31 December 2022.
Individual solvency requirement and capital buffers
-
amount.
Adequate total capital is assessed and calculated, on the basis of an internal calcula-
tion model, as the amount which is appropriate to hedge against the bank’s current and
future risks.
The bank calculates the individual solvency requirement using the 8+ model. The model
is based on 8 percentage points, plus any supplements calculated for customers with
-
ings and cost base and its robust business model.
Despite this, the bank’s individual solvency requirement at the end of 2022 was calcu-
lated at 9.3%, which is unchanged relative to the end of 2021. The capital conservation
buffer of 2.5% should be added to this, while the countercyclical buffer was 2.0% at the
end of 2022.
The total requirement for the bank’s total capital was thus 13.8% at the end of 2022.
Compared with the actual total capital of DKK 10.1 billion, the capital buffer at the end of
2022 was thus DKK 3.6 billion, equivalent to 7.8 percentage points.
CAPITAL STRUCTURE
ANNUAL REPORT 2022 PAGE 29
For further information, see the summary below.
Individual solvency requirement
and excess cover 2022 2021 2020 2019 2018
Individual solvency requirement (%) 9.3 9.3 9.3 9.3 9.3
Capital conservation buffer (%) 2.5 2.5 2.5 2.5 1.9
Countercyclical buffer (%) 2.0 0.0 0.0 1.0 0.0
Total requirement for the bank’s total capital (%) 13.8 11.8 11.8 12.8 11.2
Excess cover in percentage points relative
to individual solvency requirement 12.3 13.0 11.8 10.7 9.1
Excess cover in percentage points relative
to total requirement for total capital 7.8 10.5 9.3 7.2 7.2
The computed adequate total capital is assessed on a regular basis, and regular reports
are also made to the Danish FSA.
During the Danish FSA’s ordinary inspection in 2022, the FSA noted that the bank’s sol-
vency requirement at 31 December 2021 was calculated at 9.3%. In its report, the FSA
solvency requirement, please see the bank’s solvency requirement report for the fourth
quarter of 2022 on the bank’s website: www.landbobanken.dk/solvency
PAGE 30 RINGKJØBING LANDBOBANK A/S
MREL requirement
The bank’s MREL requirement at
the end of 2022 was 17.8%.
In December 2022, the bank
received an updated MREL require-
ment of 17.9% from the Danish FSA,
applicable from the beginning of
2023. The MREL requirement must
always be met.
To meet the MREL requirement,
the bank has issued non-preferred
senior capital.
At the end of 2022, non-preferred
senior capital equivalent to DKK 3.4
billion had been issued.
Most recently, in October 2022, the
bank extended non-preferred senior
capital totalling DKK 425 million
which had an option of early redemption in January 2023.
Based on the above-mentioned issue, the bank does not expect to need additional
The bank can issue non-preferred senior capital under its EMTN programme, which
Th
for the MREL capital ratio. At the end of 2022, the excess cover relative to the MREL
requirement was 11.1 percentage points.
CAPITAL STRUCTURE
MREL capital ration, MREL
requirement + capital buffer
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
24%
26%
28%
30%
End of 2023
22.9%
8.0%
8.6%
1.3%
2.5%
The bank’s total MREL capital
ratio end of 2022: 28.9%
Capital conservation
buffer
MREL add-on
Pillar II add-on
Equity
17.9%
Countercyclical capital
buffer
2.5%
ANNUAL REPORT 2022 PAGE 31
Capital adequacy rules
The bank used the methods below for the calculation of its total risk exposure amount
at the end of 2022 as provided by the CRD IV rules:
Calculation of capital adequacy – methods used
• Credit risk outside the trading portfolio Standardised Approach
• Counterparty risk Mark-to-Market Method
• Market risk Standardised Approach
• Operational risk Basic Indicator Method
As evident from the above, the bank uses the standardised method for calculation of
weightings.
The method means that the bank does not apply the same down-weighting of risks as
those banks which apply one of the advanced methods.
On the other hand, the bank does not experience increasing risk weightings in periods
of recession. Relative to the advanced methods, use of the standardised method means
total risk exposure amount.
transitional rules was introduced. This meant that the bank was able to add back to its
capital the difference between its current stage 1 and 2 impairment charges and the
stage 1 and 2 impairment charges on 1 January 2020.
Provided the stage 1 and 2 impairment charges have increased since 1 January 2020,
the bank can add back the increase in impairment charges less the effect on tax. The
add-back is 75% for 2022, 50% for 2023, 25% for 2024, and 0% for 2025. The arrange-
ment’s positive effect on the bank’s capital ratios is therefore only temporary. The bank
now uses both the static and the dynamic components of the IFRS 9 transitional rules,
(NPEs). The rules mean that NPEs must be fully deducted from common equity tier
1 within a period of at most ten years. Deduction must be in the form of either write-
downs of the exposure or deduction from tier 1 capital. The deduction from common
equity tier 1 at the end of 2022 was limited.
PAGE 32 RINGKJØBING LANDBOBANK A/S
RISKS AND RISK MANAGEMENT
Risks and risk management
Risk-taking is a natural part of banking.
liquidity risks and to operational risks including IT, compliance and reputational risks.
Risks associated with climate change are an integral part of the individual risk types.
The annual report contains details on the individual risk areas.
The bank’s general approach to risk-taking has been unchanged for years.
The absolutely biggest risk area for the bank is credit risk, for which the bank’s credit
policy sets the framework.
The bank wants to assume moderate credit risks based on a balanced relationship be-
tween risk and return. Over a sequence of years, the bank wants to operate with losses
-
cally is credit losses at a low level as shown in the table on the next page.
Further information on the bank’s risks
The various types of risk are described in more detail in notes 45-54 on pages 84-105 of
this annual report.
In addition, Danish banks are required by law to disclose information on risk. This annual
report gives some of the required risk information but, for a more detailed overview of
the bank’s disclosure requirement, the reader is referred to the bank’s website at:
www.landbobanken.dk/risk-information
ANNUAL REPORT 2022 PAGE 33
Actual net losses
(DKK 1,000) Loans and other
Actual receivables
Actual net losses with suspended Impairments for Total loans and Percentage loss Percentage loss
Year net losses after interest interest loans etc. guarantees etc. before interest* after interest*
1987 -6,696 304 10,544 75,000 1,358,464 -0.49% 0.02%
1988 -14,205 -5,205 4,522 93,900 1,408,830 -1.01% -0.37%
1989 -18,302 -5,302 13,107 117,270 1,468,206 -1.25% -0.36%
1990 -15,867 -1,867 47,182 147,800 1,555,647 -1.02% -0.12%
1991 -11,429 3,571 47,626 170,000 1,805,506 -0.63% 0.20%
1992 -32,928 -14,928 43,325 177,900 1,933,081 -1.70% -0.77%
1993 -27,875 -6,875 30,964 208,700 1,893,098 -1.47% -0.36%
1994 -14,554 4,446 33,889 223,500 1,938,572 -0.75% 0.23%
1995 -10,806 10,194 27,292 238,800 2,058,561 -0.52% 0.50%
1996 -19,802 -1,802 18,404 233,400 2,588,028 -0.77% -0.07%
1997 -31,412 -12,412 39,846 236,600 3,261,429 -0.96% -0.38%
1998 -2,914 18,086 4,905 263,600 3,752,602 -0.08% 0.48%
1999 -442 21,558 18,595 290,450 5,148,190 -0.01% 0.42%
2000 -405 27,595 12,843 316,750 5,377,749 -0.01% 0.51%
2001 -8,038 20,962 14,222 331,950 6,113,523 -0.13% 0.34%
2002 -8,470 20,530 26,290 382,850 7,655,112 -0.11% 0.27%
2003 -22,741 2,259 23,412 394,850 8,497,124 -0.27% 0.03%
2004 -14,554 9,446 18,875 404,855 11,523,143 -0.13% 0.08%
2005 -22,908 192 35,796 357,000 15,522,264 -0.15% 0.00%
2006 -13,531 7,028 20,578 295,000 17,858,787 -0.08% 0.04%
2007 -15,264 4,888 13,190 289,097 19,227,573 -0.08% 0.03%
2008 -34,789 -10,237 22,110 356,083 16,475,975 -0.21% -0.06%
2009 -73,767 -47,658 62,649 467,025 14,890,027 -0.50% -0.32%
2010 -69,428 -40,207 66,237 565,035 14,758,234 -0.47% -0.27%
2011 -78,813 -43,073 61,419 649,856 14,448,638 -0.55% -0.30%
2012 -90,022 -48,337 113,312 758,363 14,849,602 -0.61% -0.33%
2013 -69,030 -25,117 85,258 853,421 16,604,640 -0.42% -0.15%
2014 -53,427 -9,206 58,244 931,398 18,073,200 -0.30% -0.05%
2015 -87,250 -48,815 74,220 942,950 20,194,063 -0.43% -0.24%
2016 -86,666 -54,200 59,904 937,128 20,878,475 -0.42% -0.26%
2017 -45,769 -16,414 24,995 931,035 23,465,775 -0.20% -0.07%
2018 -251,451 -200,376 209,642 2,040,407 43,220,158 -0.58% -0.46%
2019 -187,787 -118,934 212,195 2,031,645 47,161,735 -0.40% -0.25%
2020 -120,051 -60,373 264,721 2,204,620 48,257,615 -0.25% -0.13%
2021 -49,541 71 97,757 2,283,320 53,680,913 -0.09% 0.00%
2022 -42,658 6,401 81,176 2,302,171 58,213,791 -0.07% 0.01%
36-year average (1987-2022) -0.47% -0.06%
10-year average (2013-2022) -0.31% -0.16%
* Actual net losses relative to total loans excluding reverse repo transactions, guarantees, impairment charges for loans, provi-
sions for losses on guarantees, and unutilised credit facilities and credit undertakings.
Explanation: The percentage losses are computed as the actual net losses for the year before and after interest on the im-
paired part of loans as a percentage of total loans, guarantees, impairments for loans and provisions for guarantees. A minus
in front of a percentage loss indicates a loss, while a positive percentage loss means that the interest on the impaired part of
reverse repo transactions and the national Bank Package I etc.
The 10-year average and the 36-year average are calculated as simple averages.
Supplementary comments on actual net losses in 2018, 2019 and 2020: In connection with the merger in 2018, the two banks’
impairment policies for losses were harmonised. In 2018 this resulted in full and partial impairment losses on exposures
PAGE 34 RINGKJØBING LANDBOBANK A/S
Statement on corporate governance
Goal
bank’s primary stakeholders, namely its shareholders, customers, employees, and the
local areas where the bank operates.
The bank’s goals are to realise good long-term results and thus achieve the best pos-
sible long-term returns for its owners, the shareholders, and to achieve an annual return
the bank and sound credit policy.
For its customers, the bank’s goal is to play a central role in West, Central and North Jut-
land, of which it is an integral part. The bank’s goal is thus to retain and further develop
that section of its customer portfolio which is situated in these areas.
It also seeks to serve selected customer groups throughout Denmark via the bank’s
niche concepts and its private banking branches, offering a high level of expertise and
competitive products.
In general, the bank will thus meet the expectations of a full-service bank for personal
and business customers via its strengths in both capital and consultancy.
for its employees. On the basis of this goal and the chosen strategy, the bank wishes to
create an interesting and challenging workplace which can attract and retain competent
employees.
Finally, the bank’s goal is to support development in those areas where it is rooted
historically.
Codes of management etc.
a number of codes of practice.
Being listed on the Nasdaq Copenhagen, the bank is covered by the Recommendations
on Corporate Governance issued by the Committee on Corporate Governance, and as a
member of Finance Denmark, by the Corporate Governance Code of the Danish Bankers
Association.
The Recommendations on Corporate Governance
principles and structures governing the bank and the interplay between the bank, its
management and its primary stakeholders: Shareholders, customers and employees,
and the local areas in which it has branches.
Since 2002, the management has pursued an active approach to the recommendations
issued on corporate governance. The bank’s position on corporate governance has been
recorded in the annual reports since that year.
In December 2020, the Committee on Corporate Governance adopted and published the
commencing on or after 1 January 2021.
CORPORATE GOVERNANCE ETC.
ANNUAL REPORT 2022 PAGE 35
The bank’s management has again addressed the 40 different recommendations for the
the company’s shareholders, investors and other stakeholders; 2) The duties and re-
sponsibilities of the board of directors; 3) The composition, organisation and evaluation
of the board of directors; 4) Remuneration of management; and 5) Risk management.
The recommendations supplement Danish law, particularly the Danish Companies Act,
the Danish Financial Statements Act, EU corporate law rules and the OECD Principles of
Corporate Governance.
When preparing the 2022 annual report, under the “comply or explain” principle, the
bank’s board of directors and general management have assessed the bank’s positions
and actions on the recommendations.
The bank’s management supports the efforts in the area of corporate governance, and
the general management and board of directors have elected to comply with almost all
of the recommendations in this area. Where the bank does not comply, the bank’s
management has explained why not, and which approach the bank has chosen instead.
By doing so, the bank thus complies with all 40 recommendations.
Finance Denmark’s Corporate Governance Code
In 2013, the then Danish Bankers Association (now Finance Denmark) published a
corporate governance code.
The recommendations in the Corporate Governance Code aim both to ensure that
Finance Denmark’s member companies actively consider a number of managerial
matters and to achieve greater openness concerning the frameworks for management
of the individual member companies.
On the “comply or explain” principle, the member companies of Finance Denmark must
specify how they view the Corporate Governance Code in connection with the presenta-
tion of the annual report.
When preparing the 2022 annual report, the bank’s board of directors and general
Code.
The bank’s management also supports Finance Denmark's Corporate Governance Code,
and the board of directors and general management have thus elected to follow all 12
recommendations.
Active ownership
Section 101a of the Danish Financial Business Act contains a provision on active owner-
ship policy. Under that provision, an active ownership policy must either be prepared or
an explanation given for why a policy has not been prepared.
The bank’s board of directors and general management assess that a policy is not
necessary since the bank only has a very modest holding of listed shares and, in the
role of asset manager, has not explicitly agreed with its customers that it must exercise
active ownership, for example by exercising the voting rights pertaining to investments
in listed shares.
PAGE 36 RINGKJØBING LANDBOBANK A/S
The bank’s nancial reporting process, management organs and their
functions
The board of directors, the board’s audit committee and the general management
regularly ensure that the bank’s controls and risk management in connection with the
The process is designed to ensure that the annual report is presented in accordance
with statutory requirements and is free of material misstatement attributable to fraud or
error.
-
ment prepares its annual report in cooperation with the general management and other
relevant departments.
and accounts department continuously monitor compliance with relevant legislation and
report regularly to the bank’s board of directors and the board’s audit committee.
The complete statement on corporate governance describes in detail matters including
processes, internal systems, recognition and measurement, the control environment,
risk assessment, control activities, monitoring and reporting.
The statement also describes the bank’s management organs and their functions in
detail.
Complete statement on management and corporate governance
The statutory complete statement on management and corporate governance in Ring-
www.landbobanken.dk/cg
Diversity in the board of directors
The bank has a policy for diversity on the board of directors. The board of directors and
its nomination committee assessed the policy in November 2022 and found no need for
changes.
The intention of this policy is that the board’s composition should embrace diverse com-
petences and backgrounds, including diversity in professional identity, work experience,
gender, age etc.
The policy further lays down that recruitment of candidates to serve as board members
must focus on ensuring that the candidates possess competences, backgrounds, know-
ledge and resources that are different to the current board members and collectively
match the bank’s business model etc.
Compliance with the adopted policy on diversity on the board of directors was assessed
by the board of directors and its nomination committee during the annual evaluation
process.
on the policy criteria when candidates are recruited to serve as members of the board of
directors and the shareholders’ committee respectively, and otherwise.
CORPORATE GOVERNANCE ETC.
ANNUAL REPORT 2022 PAGE 37
The reason for focusing on these criteria also when recruiting candidates to serve as
members of the shareholders’ committee is that the shareholders’ committee elects
the members of the bank’s board of directors primarily from among the members of the
shareholders' committee.
On the date of closing the accounts, seven of the eight board members elected by the
shareholders’ committee came from the membership of the shareholders’ committee,
undertaking) was not elected from the membership of the shareholders’ committee.
The under-represented gender
under-represented gender at the bank’s other management levels.
The board of directors and its nomination committee assessed the need for changes to
which was not the case previously.
management (reported to the Danish Business Authority), employees placed at the
same management level, in organisational terms, as the general management, and
employees with staff responsibilities reporting directly to the general management or
to employees placed at the same level, in organisational terms, as the general manage-
ment.
The new rules in the Act only took effect at the beginning of 2023, but we report below
directors and the bank’s other management levels were also changed.
The board of directors
30% for the under-represented gender to be met in 2023.
directors were:
• 25% women
• 75% men
An amendment to the articles of association permitting an enlargement of the board of
directors will be proposed at the annual general meeting to be held on 1 March 2023. If
the shareholders' committee elects the candidate proposed by the nomination commit-
PAGE 38 RINGKJØBING LANDBOBANK A/S
Other management levels
The policy adopted to increase the percentage of the under-represented gender at the
bank’s other management levels aims at creating a basis for a more equal gender distri-
bution at these management levels.
It is the bank’s overall and long-term aim to create a more equal gender distribution at
the bank’s other management levels. The bank wants to follow up on developments
continually in relation to the target.
-
sented gender at the bank’s other management levels to by met by 2025. It is also a goal
that the bank’s employees should feel that equal career and management opportunities
are open to them, irrespective of gender.
levels was as follows at the end of 2022:
• 20% women
• 80% men
In accordance with Section 135a of the Executive Order on Financial Reports for Credit
Institutions and Investment Firms etc., the statutory complete statement on the under-
represented gender is available on the bank’s website at: www.landbobanken.dk/gender
Sound corporate culture
The bank’s board of directors has adopted a policy for a sound corporate culture con-
taining various principles for the bank’s and the employees’ actions, which supplements
the framework of the bank’s code of conduct.
The policy was most recently updated in November 2022 and is available on the bank’s
website: www.landbobanken.dk/policies
The bank’s general management must report annually to the board of directors on the
bank’s compliance with the policy and the code of conduct. Through this report and
otherwise, the board of directors gains insight into matters relating to the policy and
code of conduct.
The report of the chair of the bank’s board of directors to the annual general meeting on
behalf of the board must cover the implementation of the corporate culture policy and
compliance with it. The bank’s ESG report also reports on these matters.
CORPORATE GOVERNANCE ETC.
ANNUAL REPORT 2022 PAGE 39
Combating money laundering and nancing of terrorism
The bank’s board of directors has endorsed the 25 recommendations contained in the
report issued in November 2019 by the Anti-Money Laundering Task Force, which was
appointed by Finance Denmark. The 25 recommendations for anti-money laundering
authorities, the banking sector in general and the individual banks.
One of the 25 recommendations is that the banks dedicate a page on their websites
to targeted and publicly available information about their anti-money laundering and
The bank complies with this recommendation by having created the web page:
www.landbobanken.dk/antimoneylaundering
Another of the 25 recommendations is that the individual banks undertake to outline
their anti-money laundering policy, in the management’s review section of their annual
reports.
The bank naturally also wants to comply with this recommendation and details of how
given below in this management's review.
obligation to know all its customers, including collect proper documentation of identity
and details of ownership structures of legal persons.
The bank must also have details of the individual customer’s purpose of being a
customer in the bank, the scope of the customer relationship and the origin of their
funds. This task is carried out by collecting data, including by the individual customer
advisers and/or via customers’ self-serve solutions.
However, the bank’s central anti-money laundering department carries out the general
checks that the necessary information on the individual customers’ identity and
ownership are registered. It also checks that the purpose and intended scope of the
customers’ relations with the bank are registered and updated.
In addition, the bank must monitor customer transactions on an ongoing basis. All of the
bank’s employees are both entitled and required to report unusual/suspicious transac-
tions or activities to the anti-money laundering department. The anti-money laundering
department thus supports the efforts of customer advisers and other employees, and is
also responsible for digital/automated monitoring of unusual/suspicious transactions
or activities and for manual follow-up on them. The department works continuously to
investigation by the department.
The anti-money laundering department also reports to the Money Laundering Secretariat
at the Special Crime Unit.
The bank’s monitoring of customers includes a risk assessment in which the bank has
divided the customers into different risk categories. The risk assessment is based,
among other things, on the EU’s supranatural risk assessment.
PAGE 40 RINGKJØBING LANDBOBANK A/S
available to the employees on the bank’s intranet.
The bank’s employees regularly receive training and are tested in combating money
• In a two-year cycle to continuously keep the employees up to date on new rules and
new methods and tools implemented by the bank
• On an ad hoc basis to familiarise new employees with the area on employment/
redeployment.
Data ethics
The bank’s board of directors has adopted a data ethics policy which provides the
framework for the bank’s ethical principles and conduct in relation to data. The board of
directors made minor editorial changes to the policy in November 2022.
In 2021, a new provision was inserted in section 135d of the Executive Order on Finan-
cial Reports for Credit Institutions and Investment Firms etc. The provision requires
companies which have a data ethics policy to supplement the management’s review
with a statement on data ethics.
The statement must contain information on the companies' work and policy on matters
of data ethics.
The bank’s board of directors has prepared a statement, which is available on the bank's
website at: www.landbobanken.dk/dataethics
Product approval and product management
The bank has a policy for product approval and product management to ensure that
customers are offered suitable investment products and investment services etc.
risks, the bank’s board of directors has overall responsibility for approving them.
In addition to this, the product approval and management of investment products and
respect on an ongoing basis.
the bank’s compliance function, risk management function and general management.
The compliance function and risk management function can always request that risks
be submitted to the board of directors.
At least annually, the compliance function reports to the board of directors on the bank’s
investment products and services, including target group compliance.
CORPORATE GOVERNANCE ETC.
ANNUAL REPORT 2022 PAGE 41
Complaints handling
In the event of disagreements between a customer and the bank, the bank’s fundamen-
tal view is that they are always best solved through dialogue between the customer and
the adviser, possibly with the involvement of the adviser’s line manager.
If agreement is not reached, the customer always has the possibility of complaining to
the bank’s complaints function. The complaints function is independent of the depart-
ments serving customers and handles complaints received and sends answers to the
customer.
The complaints function reports annually to both the bank’s board of directors and gene-
ral management, which gives them full insight into the scope and type of complaints.
Communication with stakeholders
The bank places great emphasis on communication with its stakeholders. It has always
been a priority for the bank that its advisers and other employees must be available to
both customers and other stakeholders.
This will remain a top priority in the future. The bank also gives high priority to having a
website and a mobile and online banking platform which are accessible, easy to under-
stand and can be used in the bank's communication with its customers and other stake-
holders.
In addition, the bank has prepared an investor relations policy dealing with the bank's
information to, and communication with, investors and other stakeholders. A code of
conduct has also been prepared which includes general guidelines for the bank's inter-
action with its stakeholders.
Investor relations policy
The bank's investor relations policy states among other things that the bank must strive
for openness and for good dialogue with its shareholders, investors and other stake-
holders.
The bank's goal is thus to give
• the stock exchanges on which the bank has listed issues
• existing and potential shareholders and investors
• share analysts and securities brokers and
• other stakeholders
quick information which gives a true and fair view of both price-related and other
The bank’s board of directors assessed the policy in November 2022 and found that only
The investor relations policy is available on the bank's website at:
www.landbobanken.dk/policies
PAGE 42 RINGKJØBING LANDBOBANK A/S
Code of conduct
establishes guidelines for the bank’s employees (including the bank's board of directors
and general management) concerning the conduct expected of them towards stake-
daily decisions and conduct.
The code is general and in no way exhaustive, but provides examples of unacceptable
behaviour.
The code of conduct was also reviewed in 2022 and the board of directors adopted an
update to the code in November 2022.
The complete code of conduct is available on the bank's website at:
www.landbobanken.dk/policies
Remuneration
Remuneration policy
which was subsequently approved by the annual general meeting in 2013.
The board of directors and the board’s remuneration committee have subsequently
reviewed the remuneration policy each year to assess any need for updating. If changes
have been adopted, the updated remuneration policy has been submitted to the bank’s
annual general meeting for approval.
The current policy is from 2021 and was approved by the bank’s annual general meeting
on 3 March 2021.
In December 2022, the bank’s board of directors and its remuneration committee
assessed the need for changes to the policy. The committee assessed that various
and updated by the board of directors will be recommended for approval at the bank’s
annual general meeting in March 2023.
The updated policy continues to specify that the bank’s management is paid remunera-
for the bank.
under a current workplace agreement, below the cap on variable salary components and
unless it is deemed to be variable salary in the terms of the applicable law.
CORPORATE GOVERNANCE ETC.
ANNUAL REPORT 2022 PAGE 43
In addition, the remuneration policy contains provisions on the remuneration paid to the
bank’s other employees, including variable salary paid to them.
The remuneration policy also complies with the remuneration policy requirements of the
Danish Companies Act applicable to public limited companies with shares admitted to
trading on a regulated market.
The current remuneration policy is available on the bank's website at:
www.landbobanken.dk/policies
Remuneration report and remuneration details
Pursuant to the Danish Companies Act, a remuneration report has also been prepared
on the remuneration paid to the board of directors and the general management for the
The remuneration report will be submitted for a consultative vote at the bank’s annual
general meeting in March 2023. The remuneration report contains a statement by the
bank’s external auditor.
In addition, a document with various remuneration details etc. is prepared pursuant
Article 450 of the CRR and section 80c of the Danish Financial Business Act.
The remuneration policy and the remuneration details document are available at the
bank's website: www.landbobanken.dk/policies
PAGE 44 RINGKJØBING LANDBOBANK A/S
CORPORATE GOVERNANCE ETC.
Information on listed companies
In accordance with Section 133a of the Executive Order on Financial Reports for Credit
Institutions and Investment Firms etc., the bank advises as follows:
The bank’s share capital on 31 December 2022 was DKK 28,379,666 in 28,379,666 nom.
DKK 1 shares.
The bank has only one share class, and the entire share capital, and thus all shares, are
listed on the Nasdaq Copenhagen. There are no restrictions on the shares’ negotiability.
The following shareholders have advised ownership etc. of more than 5% of the bank’s
share capital on 31 December 2022:
• Liontrust Investment Partners LLP, London, Great Britain owned/managed 5.85% of
the bank’s share capital on 31 December 2022 and held 3,000 voting rights.
2022 and held 3,000 voting rights.
With respect to the exercising of voting rights, each nom. DKK 1 share carries one vote
when the share is recorded in the company’s register of shareholders, or when the
shareholder has reported and documented his or her right. However, a shareholder may
cast no more than 3,000 votes.
Under the bank’s articles of association, the members of the bank’s board of directors
are elected by the members of the bank’s shareholders’ committee for four-year periods,
and the bank’s employees also elect members to the bank’s board of directors in accor-
dance with rules in force.
A decision to amend the bank’s articles of association is only valid if the resolution is
adopted by at least two-thirds of votes cast and two-thirds of the voting capital repre-
sented at the general meeting.
On the date of closing the accounts, the board of directors is authorised as follows,
pursuant to the articles of association, to issue shares:
The general meeting has decided to authorise the board of directors to increase the
share capital in one or more rounds by up to nom. DKK 5,675,933 with right of pre-
emption for the bank’s existing shareholders. The capital increase must be fully paid up
in cash. The capital increase may be below the market price. This authorisation applies
until 1 March 2027 (Article 2a of the articles of association).
The general meeting has decided to authorise the board of directors to increase the
share capital in one or more rounds by up to nom. DKK 2,837,966 without right of pre-
emption for the bank’s existing shareholders. The capital increase may be by cash pay-
the value of the shares issued. The capital increase must be fully paid up at the market
price ascertained by the board of directors. This authorisation applies until 1 March
2027 (Article 2b of the articles of association).
ANNUAL REPORT 2022 PAGE 45
The board of directors may use the authorisations under Articles 2a and 2b to increase
the share capital by a maximum of nom. DKK 5,675,933 in total (Article 2c of the articles
of association).
The board of directors has the following powers with respect to the possibility of
acquiring the bank’s own shares:
The bank’s annual general meeting has continually authorised the board of directors,
before the next annual general meeting and in accordance with applicable law, to permit
the bank to acquire its own shares to a total nominal value of 10% of the bank’s share
capital, so that the shares can be acquired at the current market price plus or minus 10%.
The authorisation was most recently renewed at the bank’s annual general meeting on 2
March 2022.
This authority was used in several rounds during 2022 to initiate share buy-back pro-
grammes: On 2 February 2022 for a DKK 369 million share buy-back programme (for
execution in the period 3 February 2022 to 28 July 2022), and on 5 July 2022 for another
DKK 369 million share buy-back programme (for execution in the period 4 August 2022
to 25 January 2023).
A total of 888,327 shares have been bought under the share buy-back programmes.
Cancellation of the shares will be recommended at the bank’s annual general meeting in
March 2023.
In conclusion, the bank has accepted “change of control” clauses in certain funding
agreements. For reasons of competition, no further details are given.
PAGE 46 RINGKJØBING LANDBOBANK A/S
Corporate social responsibility and ESG report
social responsibility.
The bank wants to serve its customers based on its core values, competent, responsive
and proper, and works to generate good, long-term results for its shareholders. The bank
also intends to contribute to creating a sustainable society, focusing on customers,
employees, climate and the environment, and society.
It is also the bank’s overall goal to be seen as a reliable and attentive partner by all its
stakeholders.
In response to this goal and the bank’s anchoring in Denmark and the local communi-
ties where we have roots, the board of directors has prepared and adopted a corporate
social responsibility (CSR) policy.
employees, climate and the environment, the local community and Danish society.
The bank’s policy in the area of social responsibility is available on its website at:
www.landbobanken.dk/csr
The CSR policy is supplemented by other policies adopted by the board of directors,
including the policy on responsible purchasing and the tax policy, and the board has also
adopted a code of conduct.
The ESG report is comprehensive and contains a number of details on the Environment,
Social aspects and Governance.
The ESG report also covers the requirement for a statutory statement on corporate
social responsibility pursuant to sections 135 and 135b of the Executive Order on
Financial Reports for Credit Institutions and Investment Firms etc.
The ESG report is available on the bank’s website:
www.landbobanken.dk/esg-en
As a supplement to the annual ESG report, the bank has also prepared and published an
ESG Fact Book at: www.landbobanken.dk/factbook
The ESG Fact Book is a compact and clear presentation of various ESG information and
data which supplement the bank’s ESG report. The Fact Book is updated continually.
CORPORATE SOCIAL RESPONSIBILITY
ANNUAL REPORT 2022 PAGE 47
human rights or climate. The bank supports the efforts to put human rights and climate
high on the agenda, however.
The bank’s CSR policy thus contains a goal of being and remaining carbon neutral in
respect of its CO
that the bank has clearly shown its attitude to and support of both areas via its CSR
policy and code of conduct.
includes principles regarding human rights.The ESG report contains an extract of the
bank’s CoP (Communication on Progress) report for 2022, including reports on the work
of implementing and complying with the Ten Principles and the support of the UN
Sustainable Development Goals in the bank’s operations.
CORPORATE SOCIAL RESPONSIBILITY
PAGE 48 RINGKJØBING LANDBOBANK A/S
PAGE 50 RINGKJØBING LANDBOBANK A/S
Management statement
The board of directors and the general management have today discussed and approved the annual
The annual report was prepared in accordance with the provisions of the Danish Financial Business Act.
We consider the chosen accounting policies to be appropriate and the estimates made responsible, so
to 31 December 2022. We also believe that the management’s review contains a true and fair account
most important risks and uncertainties which can affect the bank.
-
pliance with the ESEF regulation.
The annual report is recommended for approval by the general meeting.
General management:
CEO General Manager General Manager General Manager
Board of directors:
Chairman Deputy chairman Deputy chairman
Morten Jensen Jon Steingrim Johnsen Anne Kaptain
Employee representative Employee representative Employee representative Employee representative
MANAGEMENT STATEMENT
ANNUAL REPORT 2022 PAGE 51
Internal auditor’s report
Auditor’s report on the nancial statements
Opinion
Financial Business Act.
My opinion is consistent with my long-form audit report to the audit committee and the board of direc-
tors.
The audit
to 31 December 2022, which comprise income statement and statement of comprehensive income,
core earnings, balance sheet, statement of changes in equity, statement of capital and notes, including
accordance with the Danish Financial Business Act.
The audit was performed on the basis of the Danish FSA’s Executive Order on Auditing Financial Under-
takings etc. and Financial Groups, and in accordance with international auditing standards regarding
planning and performing the audit.
are free from material misstatement. I participated in the audit of all material and high-risk areas.
opinion.
Statement on management review
Management is responsible for the management review.
of assurance conclusion on that review.
with my knowledge obtained in the audit, or otherwise appears to be materially misstated.
I also considered whether the management review includes the disclosures required by the Danish
Financial Business Act.
Based on the work I have performed, in my view, the management review is in accordance with the
Financial Business Act. I did not identify any material misstatement in the management review.
Henrik Haugaard
Chief internal auditor
AUDITORS’ REPORTS
PAGE 52 RINGKJØBING LANDBOBANK A/S
The independent auditor’s report
Auditor’s Report on the Financial Statements
Opinion
2022 in accordance with the Danish Financial Business Act.
Our opinion is consistent with our Auditor’s Long-form Report to the Audit Committee and the Board of
Directors.
What we have audited
comprise the income statement and statement of comprehensive income, the core income, the balance
sheet, the statement of changes in equity, the statement of capital and notes, including summary of sig
-
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional
requirements applicable in Denmark. Our responsibilities under those standards and requirements are fur
-
ther described in the Auditor’s responsibilities for the audit of the Financial Statements section of our report.
our opinion.
Independence
We are independent of the Bank in accordance with International Ethics Standards Board for Accountants’
Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements applicable in
and the IESBA Code.
To the best of our knowledge, no prohibited non-audit services as referred to in Article 5(1) of Regulation
(EU) No 537/2014 have been provided.
Appointment
2018. We have been re-appointed annually by shareholder resolution for a total period of uninterrupted
Key audit matters
audit of the Financial Statements for 2022. These matters were addressed in the context of our audit of
the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Key audit matter How our audit addressed the key audit matter
Loan impairment charges
Loans and advances are measured at amortised
cost less impairment charges.
Impairment of loans and advances constitutes
Management’s best estimate of expected losses
on loans and advances at the balance sheet date
in accordance with the provisions of IFRS 9 as
We reviewed and assessed the impairment charg-
es recognised in the income statement for 2022
and in the balance sheet at 31 December 2022.
We carried out risk assessment procedures to gain
an understanding of IT systems, business practices
and relevant controls relating to the calculation of
loan impairment charges. We assessed whether
AUDITORS’ REPORTS
ANNUAL REPORT 2022 PAGE 53
Key audit matter How our audit addressed the
key audit matter
incorporated in the Danish Executive Order on the
Presentation of Financial Statements of Credit Insti-
tutions and Stockbroker Companies, etc. We refer
to note 57 to the Financial Statements for a detailed
description of the accounting policies applied.
As a result of the macroeconomic development as
-
crease in loan impairment charges by way of an ac-
counting estimate (“management estimate”). The
impact of the macroeconomic development on the
Bank's customers is largely undetermined, which
implies that the estimation uncertainty related to
the calculation of the indication of impairment is
increased.
Since accounting estimates are inherently complex
-
timation uncertainty, loan impairment charges con-
stitute a central focus area.
The following areas are central to the calculation of
loan impairment charges:
subsequent recognition.
• Model-based impairment charges in stages 1 and
2, including Management’s determination of mod-
el variables adapted to the Bank’s loan portfolio.
• The Bank’s procedures to ensure completeness
of the registration of credit-impaired loans (stage
(stage 2).
-
plied by Management in the calculations of im-
pairment charges, including principles for the as-
sessment of various outcomes of the customer’s
-
ment of collateral value of, for example, properties
included in the calculations of impairment.
• Management’s assessment of expected credit
losses at the balance sheet date as a result of
possible changes in conditions and which are not
included in the model-based calculations or indi-
vidually assessed impairment charges, including
in particular the impact of the macroeconomic de-
velopment on the Bank’s customers.
-
Statements which show factors that may affect the
impairment of loans and advances.
the controls have been designed and implement-
ed to effectively address the risk of material mis-
statement. Selected controls, which we planned
to rely on, were tested to check whether they had
been carried out on a consistent basis.
We assessed the impairment model applied, pre
-
pared by the data centre Bankdata, and its use,
including the division of responsibilities between
Bankdata and the Bank.
We assessed and tested the Bank’s calculation
of model-based impairment charges in stages 1
and 2, including assessment of Management’s de
-
termination and adaptation of model variables to
own issues.
We reviewed and assessed the Bank’s validation
of the methods applied for the calculation of ex
-
pected credit losses as well as the procedures
designed to ensure that credit-impaired loans in
stage 3 and underperforming loans in stage 2 are
We assessed and tested the principles applied by
the Bank for the determination of impairment sce
-
narios and for the measurement of collateral value
of, for example, properties included in the calcula
-
tions of impairment of credit-impaired loans and
-
cantly underperforming.
We tested a sample of credit-impaired loans in
stage 3 and underperforming loans in stage 2 by
testing the calculations of impairment charges
and applied data to underlying documentation.
We tested a sample of other loans by making an
This included samples of large loans as well as
loans relating to segments with generally in
-
creased exposure, including segments which are
particularly affected by the macroeconomic devel
-
opment.
We reviewed and challenged the material as
-
sumptions underlying Management’s estimates
of expected credit losses not included in the mod
-
el-based calculations or individually assessed
impairment charges based on our knowledge of
the portfolio, the sectors and current market con
-
calculation of management estimates for hedging
of expected credit losses as a result of the macro
-
economic development.
We assessed whether the factors which may af
-
fect loan impairment charges had been disclosed
appropriately.
PAGE 54 RINGKJØBING LANDBOBANK A/S
AUDITORS’ REPORTS
Statement on Management’s Review
Management is responsible for Management’s Review.
Our opinion on the Financial Statements does not cover Management’s Review, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the Financial Statements, our responsibility is to read Management’s
Review and, in doing so, consider whether Management’s Review is materially inconsistent with the
Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated.
Moreover, we considered whether Management’s Review includes the disclosures required by the Dan-
ish Financial Business Act.
Based on the work we have performed, in our view, Management’s Review is in accordance with the
Financial Statements and has been prepared in accordance with the requirements of the Danish Finan-
cial Business Act. We did not identify any material misstatement in Management’s Review.
Management’s responsibilities for the Financial Statements
in accordance with the Danish Financial Business Act and for such internal control as Management
misstatement, whether due to fraud or error.
In preparing the Financial Statements, Management is responsible for assessing the Bank’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting in preparing the Financial Statements unless Management either
intends to liquidate the Bank or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Statements
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and
-
ence the economic decisions of users taken on the basis of these Financial Statements.
As part of an audit in accordance with ISAs and the additional requirements applicable in Denmark, we
• Identify and assess the risks of material misstatement of the Financial Statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
-
ing a material misstatement resulting from fraud is higher than for one resulting from error as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Bank’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by Management.
The independent auditor’s report – continued
ANNUAL REPORT 2022 PAGE 55
• Conclude on the appropriateness of Management’s use of the going concern basis of accounting in
preparing the Financial Statements and, based on the audit evidence obtained, whether a material
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Bank to cease to continue as a going concern.
• Evaluate the overall presentation, structure and contents of the Financial Statements, including the
disclosures, and whether the Financial Statements represent the underlying transactions and events
in a manner that gives a true and fair view.
We communicate with those charged with governance regarding, among other matters, the planned
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and, where applicable,
safeguards in place or measures taken to eliminate threats.
Based on the matters communicated with those charged with governance, we determine those matters
which thus constitute key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter.
Report on compliance with the ESEF Regulation
in accordance with the Commission Delegated Regulation (EU) 2019/815 on the single electronic
reporting format (the ESEF Regulation), which requires the preparation of an annual report in XHTML
format.
Management is responsible for preparing an annual report in compliance with the ESEF Regulation,
including the preparation of an annual report in XHTML format.
Based on the evidence obtained, our responsibility is to obtain reasonable assurance whether the An-
nual Report, in all material respects, has been prepared in accordance with the ESEF Regulation, and to
express an opinion. Our procedures include verifying whether the Annual Report has been prepared in
XHTML format.
name RILBA-2022-12-31-da.xhtml, has, in all material respects, been prepared in accordance with the
ESEF Regulation.
Herning, 1 February 2023
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR-nr. 33 77 12 31
Per Rolf Larssen
State Authorised Public Accountant
mne24822
The independent auditor’s report – continued
PAGE 56 RINGKJØBING LANDBOBANK A/S
ANNUAL REPORT 2022 PAGE 57
Page
58 Statements of income and comprehensive income
59 Core earnings
60 Balance sheet
62 Statement of changes in equity
63 Statement of capital
65 Overview of notes
66 Notes
FINANCIAL STATEMENTS
PAGE 58 RINGKJØBING LANDBOBANK A/S
Note 2022 2021
no. DKK 1,000 DKK 1,000
1 Interest income 1,865,848 1,459,846
2 Interest expenses 185,174 103,080
Net interest income 1,680,674 1,356,766
3 Dividends from shares etc. 99,637 77,109
4 Fee and commission income 1,038,855 939,219
4 Fee and commission expenses 91,602 91,183
Net interest and fee income 2,727,564 2,281,911
5 +73,493 +163,127
Other operating income 2,055 5,490
6,7,8,9 Staff and administration expenses 870,847 790,374
10 Amortisation, depreciation and write-downs on intangible
and tangible assets
33,035
35,793
Other operating expenses 6,607 7,643
11 Impairment charges for loans and other receivables etc. -12,450 -78,629
Results from investments in associated companies
and subsidiaries
-37 +22
Prot before tax 1,880,136 1,538,111
12 Tax 385,239 308,846
Net prot for the year 1,494,897 1,229,265
Other comprehensive income:
Value changes in pension liabilities +2,111 -404
Total comprehensive income for the year 1,497,008 1,228,861
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
2022
DKK 1,000
2021
DKK 1,000
Total comprehensive income for the year 1,497,008 1,228,861
Total amount available for distribution 1,497,008 1,228,861
Appropriated for ordinary dividend 198,658 203,474
Appropriated for charitable purposes 2,000 2,000
Transfer to net revaluation reserve
under the equity method
-37
22
Transfer to retained earnings 1,296,387 1,023,365
Total distribution of the amount available 1,497,008 1,228,861
PROPOSED DISTRIBUTION OF PROFIT
ANNUAL REPORT 2022 PAGE 59
CORE EARNINGS
Note
no.
2022
DKK 1,000
2021
DKK 1,000
13 Net interest income 1,677,409 1,342,559
14 Net fee and commission income excluding securities trading 783,728 676,831
15 Income from sector shares etc. 168,922 179,190
5 Foreign exchange income 66,262 57,670
Other operating income 2,055 5,490
Total core income excluding securities trading 2,698,376 2,261,740
14 Securities trading 163,525 171,205
Total core income 2,861,901 2,432,945
16 Staff and administration expenses 870,847 790,374
16 Depreciation and write-downs on tangible assets 13,526 18,539
16 Other operating expenses 6,607 7,643
16 Total expenses etc. 890,980 816,556
Core earnings before impairment charges for loans 1,970,921 1,616,389
17 Impairment charges for loans and other receivables etc. -2,154 -68,333
18 Core earnings 1,968,767 1,548,056
18 Result for the portfolio etc. -69,122 7,309
16,18 Amortisation and write-downs on intangible assets 19,509 17,254
18 Prot before tax 1,880,136 1,538,111
12 Tax 385,239 308,846
Net prot for the year 1,494,897 1,229,265
PAGE 60 RINGKJØBING LANDBOBANK A/S
BALANCE SHEET
Note
no.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
Assets
Cash in hand and demand deposits
with central banks
4,750,398 3,459,464
19 Receivables from credit institutions and central banks 776,039 216,097
20,21 Total loans and other receivables at amortised cost 48,341,941 41,179,255
Loans and other receivables at amortised cost 47,300,816 40,008,162
1,041,125 1,171,093
22 Bonds at fair value 6,775,872 6,743,836
23 Shares etc. 1,331,791 1,467,417
Investments in associated companies 481 481
Investments in subsidiaries 11,982 12,020
24 Assets linked to pooled schemes 4,972,840 5,537,863
25 Intangible assets 1,043,163 1,062,672
26 Total land and buildings 220,579 199,632
Investment properties 3,667 8,667
Domicile properties 196,048 168,387
Domicile properties (leasing) 20,864 22,578
27 Other tangible assets 14,731 14,999
Current tax assets 20,056 23,501
28 Deferred tax assets 23,033 11,263
Temporary assets 2,000 5,868
29 Other assets 677,490 407,166
Prepayments
17,185 15,854
Total assets 68,979,581 60,357,388
BALANCE SHEET
ANNUAL REPORT 2022 PAGE 61
Note
no.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
Liabilities and equity
30 Debt to credit institutions and central banks 3,567,758 2,030,175
Total deposits and other debt 48,699,778 43,740,049
31 Deposits and other debt 43,726,938 38,202,186
Deposits in pooled schemes 4,972,840 5,537,863
32 Issued bonds at amortised cost 4,255,498 2,961,422
Preferred senior capital 966,492 1,019,790
Non-preferred senior capital 3,289,006 1,941,632
33 Other liabilities 1,033,971 728,954
Deferred income 579 1,167
Total debt 57,557,584 49,461,767
34 Provisions for pensions and similar liabilities 0 2,473
21 Provisions for losses on guarantees 66,596 97,207
21 Other provisions for liabilities 24,113 28,763
Total provisions for liabilities 90,709 128,443
Tier 2 capital 2,036,526 2,044,505
35 Total subordinated debt 2,036,526 2,044,505
36 Share capital 28,380 29,068
Net revaluation reserve under the equity method 391 428
Retained earnings 9,065,333 8,487,703
Proposed dividend etc. 200,658 205,474
Total shareholders’ equity 9,294,762 8,722,673
Total liabilities and equity 68,979,581 60,357,388
PAGE 62 RINGKJØBING LANDBOBANK A/S
STATEMENT OF CHANGES IN EQUITY
DKK 1,000
Share
capital
Net
revaluation
reserve
under the
equity
method
Retained
earnings
Proposed
dividend
etc.
Total share-
holders’
equity
2021
Shareholders’ equity at the end
of the previous nancial year
29,228
406
7,909,643
206,598
8,145,875
Comprehensive income
22 1,023,769 205,474 1,229,265
Other comprehensive income -404 -404
Total comprehensive income 0 22 1,023,365 205,474 1,228,861
Transactions with shareholders
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 -1,238,871 -1,238,871
Sale of own shares 776,227 776,227
Other equity transactions
(employee shares)
15,534
15,534
Total transactions with shareholders -160 0 -445,305 -206,598 -652,063
Shareholders’ equity on the
balance sheet date
29,068
428
8,487,703
205,474
8,722,673
2022
Shareholders’ equity at the end
of the previous nancial year
29,068
428
8,487,703
205,474
8,722,673
Comprehensive income
-37 1,294,276 200,658 1,494,897
Other comprehensive income 2,111 2,111
Total comprehensive income 0 -37 1,296,387 200,658 1,497,008
Transactions with shareholders
Reduction of share capital -688 688 0
Dividend etc. paid -205,474 -205,474
Dividend received on own shares 5,638 5,638
Purchase of own shares -1,507,045 -1,507,045
Sale of own shares 760,509 760,509
Other equity transactions
(employee shares)
21,453
21,453
Total transactions with shareholders -688 0 -718,757 -205,474 -924,919
Shareholders’ equity on the
balance sheet date
28,380
391
9,065,333
200,658
9,294,762
ANNUAL REPORT 2022 PAGE 63
STATEMENT OF CAPITAL
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
Credit risk 40,843,152 37,454,457
Market risk 1,483,592 1,719,608
Operational risk 4,528,649 4,111,013
Total risk exposure 46,855,393 43,285,078
Shareholders’ equity 9,294,762 8,722,673
Proposed dividend etc. -200,658 -205,474
Addition for transition programme concerning IFRS 9 469,846 533,172
-25,341 -3,215
Deduction for the sum of equity investments etc. above 10% -194,192 -258,432
Deduction for prudent valuation -13,924 -14,044
Deduction for intangible assets -1,043,163 -1,062,672
Deferred tax on intangible assets 18,855 22,169
Deferred tax assets -41,888 -
Deduction of amount of share buy-back programme -738,000 -497,500
Actual utilisation of amount of share buy-back programme 682,262 449,894
Deduction for trading limit for direct and indirect ownership of own shares -55,000 -55,000
Actual utilisation of the trading limit for own shares 0 161
Common equity tier 1 8,153,559 7,631,732
Tier 1 capital 8,153,559 7,631,732
Tier 2 capital 2,043,645 2,043,630
Deduction for the sum of equity investments etc. above 10% -90,606 -40,258
Total capital 10,106,598 9,635,104
Contractual senior funding (grandfathered) 0 456,272
Non-preferred senior capital 3,426,434 1,941,178
MREL capital 13,533,032 12,032,554
Common equity tier 1 capital ratio 17.4 17.6
Tier 1 capital ratio 17.4 17.6
Total capital ratio 21.6 22.3
MREL capital ratio 28.9 27.8
Pillar I capital requirements 3,748,431 3,462,806
17.8 17.9
Excess cover in percentage points relative to MREL requirement 11.1 9.9
PAGE 64 RINGKJØBING LANDBOBANK A/S
ANNUAL REPORT 2022 PAGE 65
OVERVIEW OF NOTES
Page
................................................................................................................................. 66
............................................................................................................................. 66
.............................................................................................................. 67
...................................................................................................................... 67
............................................................................................................................ 67
.................................................................................................. 68
....................................................................................................... 68
.............................. 68
........................................................... 68
10 Amortisation, depreciation and write-downs on intangible and tangible assets ......................... 69
11 Impairment charges for loans and other receivables etc. ............................................................ 69
12 Tax ..................................................................................................................................................... 69
13 Net interest income ........................................................................................................................... 70
14 Net fee and commission income excluding securities trading ..................................................... 70
15 Income from sector shares etc. ........................................................................................................ 70
16 Total expenses etc. ........................................................................................................................... 70
17 Impairment charges for loans and other receivables etc. .............................................................. 70
............................................................................... 70
19 Receivables from credit institutions and central banks ................................................................. 71
20 Loans and other receivables at amortised cost .............................................................................. 71
21 Impairment charges for loans and other receivables and provisions for losses on
guarantees, unutilised credit facilities and credit undertakings ..................................................... 71
22 Bonds at fair value ............................................................................................................................. 73
23 Shares etc. ........................................................................................................................................ 73
24 Assets linked to pooled schemes ..................................................................................................... 73
25 Intangible assets ............................................................................................................................... 74
26 Land and buildings ............................................................................................................................. 75
27 Other tangible assets ....................................................................................................................... 75
28 Deferred tax assets ............................................................................................................................ 76
29 Other assets ....................................................................................................................................... 76
30 Debt to credit institutions and central banks ................................................................................... 76
31 Deposits and other debt .................................................................................................................... 76
32 Issued bonds at amortised cost ....................................................................................................... 77
33 Other liabilities ................................................................................................................................... 77
34 Provisions for pensions and similar liabilities ................................................................................. 77
35 Subordinated debt ............................................................................................................................. 77
36 Share capital ...................................................................................................................................... 77
37 Own shares ........................................................................................................................................ 78
38 Contingent liabilities etc. ................................................................................................................... 78
39 Assets furnished as security ............................................................................................................. 78
40 Contractual obligations ..................................................................................................................... 79
41 Legal proceedings etc. ...................................................................................................................... 79
42 Related parties ................................................................................................................................... 79
.................................................................................................. 81
44 Hedging .............................................................................................................................................. 83
45 Risks and risk management .............................................................................................................. 84
46 Credit risks ......................................................................................................................................... 85
47 Market risks ...................................................................................................................................... 96
48 Interest rate risks ............................................................................................................................... 97
49 Foreign exchange risks ..................................................................................................................... 98
50 Share price risks ................................................................................................................................. 99
51 Value at Risk .................................................................................................................................... 100
52 Property risks ................................................................................................................................... 101
53 Liquidity risks .................................................................................................................................... 102
............................................................................................................................ 104
..................................................................................................... 106
........................................................................................... 109
57 Accounting policies etc. ................................................................................................................. 110
PAGE 66 RINGKJØBING LANDBOBANK A/S
Note
no.
2022
DKK 1,000
2021
DKK 1,000
1 Interest income
Receivables from credit institutions and central banks – net -1,136 -14,893
Loans and other receivables 1,581,790 1,253,811
Discounts – amortisation concerning loans taken over etc. 10,296 10,296
Loans – interest on the impaired part of loans -49,059 -49,612
Bonds – net 59,503 28,211
82,373 21,620
of which currency contracts – net 27,665 5,079
of which interest-rate contracts – net 54,708 16,541
Other interest income 1,285 2,464
Total interest income after offsetting of negative interest 1,685,052 1,251,897
of which interest income from collateralised repurchase
agreements/reverse repo transactions booked under the item
“Loans and other receivables” is
808
-108
Negative interest income transferred to interest expenses
Receivables from credit institutions and central banks 13,452 16,685
Bonds 2,497 5,134
1,344 2,979
of which currency contracts 554 771
of which interest-rate contracts 790 2,208
Total negative interest income transferred to interest expenses 17,293 24,798
Negative interest expenses transferred from interest expenses
Debt to credit institutions and central banks 57 1
Deposits and other debt 163,446 183,150
Total negative interest expenses transferred from interest 163,503 183,151
Total interest income 1,865,848 1,459,846
2 Interest expenses
Credit institutions and central banks – net 18,736 9,996
Deposits and other debt – net -100,778 -165,948
Issued bonds 49,980 22,959
Subordinated debt 35,542 27,311
Other interest expenses 898 813
Total interest expenses after offsetting of negative interest 4,378 -104,869
Negative interest expenses transferred to interest income
Debt to credit institutions and central banks 57 1
Deposits and other debt 163,446 183,150
Total negative interest expenses transferred to interest income 163,503 183,151
Negative interest income transferred from interest income
Receivables from credit institutions and central banks 13,452 16,685
Bonds 2,497 5,134
1,344 2,979
of which currency contracts 554 771
of which interest-rate contracts 790 2,208
Total negative interest income transferred from interest 17,293 24,798
Total interest expenses 185,174 103,080
NOTES
ANNUAL REPORT 2022 PAGE 67
Note
no.
2022
DKK 1,000
2021
DKK 1,000
3 Dividends from shares etc.
Shares 99,637 77,109
Total dividends from shares etc. 99,637 77,109
4 Fees and commission
Gross fee and commission income
Securities trading 175,681 188,682
Asset management and custody accounts 221,355 197,448
Payment handling 151,053 125,136
Loan fees 126,221 93,246
Guarantee commission and mortgage credit commission etc. 256,622 244,423
Other fees and commission 107,923 90,284
Total gross fee and commission income 1,038,855 939,219
Fee and commission expenses
Securities trading 12,156 17,477
Asset management and custody accounts 13,919 15,508
Payment handling 47,484 41,224
Loan fees 11,694 11,865
Other fees and commission 6,349 5,109
Total fee and commission expenses 91,602 91,183
Net fee and commission income
Securities trading 163,525 171,205
Asset management and custody accounts 207,436 181,940
Payment handling 103,569 83,912
Loan fees 114,527 81,381
Guarantee commission and mortgage credit commission etc. 256,622 244,423
Other fees and commission 101,574 85,175
Total net fee and commission income 947,253 848,036
Foreign exchange income 66,262 57,670
Total net fee, commission and foreign exchange income 1,013,515 905,706
5 Value adjustments
-28,775 -4,492
Bonds -166,484 -15,820
Shares etc. 65,409 106,003
Foreign exchange 66,262 57,670
-79,598 -18,337
of which currency contracts -130,997 -23,489
of which interest-rate contracts 51,399 5,095
of which share contracts 0 57
Assets linked to pooled schemes -864,971 490,318
Deposits in pooled schemes 864,971 -490,318
Issued bonds etc.* 198,702 38,103
Debt to credit institutions 17,977 0
Total value adjustments 73,493 163,127
* See also note 44.
PAGE 68 RINGKJØBING LANDBOBANK A/S
Note
no.
2022
DKK 1,000
2021
DKK 1,000
6 Staff and administration expenses
Payments to general management, board of directors
and shareholders’ committee:
General management (4 persons):
Salary 16,851 14,601
Pension 2,321 2,365
Total payments 19,172 16,966
Total taxable value of company car: 2022: tDKK 613, 2021: tDKK 526.
The amounts are not included in the salary amounts stated.
Board of directors (12 persons):
Total payments 4,367 4,225
Shareholders' committee (41 persons):
Total payments 898 890
Total 24,437 22,081
Staff expenses:
Salaries 389,689 345,780
Pensions 43,876 39,665
Social security expenses 5,727 5,353
Costs depending on number of staff 62,268 60,293
Total 501,560 451,091
Other administration expenses 344,850 317,202
Total staff and administration expenses 870,847 790,374
Information on the remuneration paid to the individual members of the board
of directors and general management is shown in the remuneration report for
2022, available on the bank’s website: www.landbobanken.dk/policies
7 Number of full-time employees
converted into full-time employees 641 619
Number of full-time employees at the end of the period 646 626
8 Salaries paid to other major risk-takers and
employees in control functions
Fixed salary 18,053 17,631
Variable salary 500 630
Pension 2,052 1,926
Total 20,605 20,187
Number of full-time employees at end of year 21 21
9 Fee to the auditor elected by the general meeting
Statutory audit 718 712
Other assurance engagements 140 101
Advice on tax 0 145
Other services 298 270
Total fee to the auditor elected by the general meeting 1,156 1,228
Fees for other assurance engagements primarily concern reports to
public authorities and business partners.
Fees for other services primarily concern issue of the comfort letter regarding
common equity tier 1.
The bank also has an internal auditor.
NOTES
ANNUAL REPORT 2022 PAGE 69
Note
no.
2022
DKK 1,000
2021
DKK 1,000
10 Amortisation, depreciation and write-downs
on intangible and tangible assets
Intangible assets
Customer relationships, amortisation 19,509 17,254
Tangible assets
Domicile properties, depreciation 1,839 1,838
Domicile properties, write-down to reassessed value (net) -2,000 5,500
Domicile properties (leasing), depreciation 5,736 5,438
Other tangible assets, depreciation 7,848 5,660
Other tangible assets (leasing), depreciation 103 103
Total amortisation, depreciation and write-downs on
intangible and tangible assets
33,035
35,793
11 Impairment charges for loans and other
receivables etc.
Net changes in impairment charges for loans and other
receivables etc. and provisions for losses on guarantees
18,851
78,700
Actual realised net losses 42,658 49,541
Interest on the impaired part of loans -49,059 -49,612
Total impairment charges for loans and other receivables etc. 12,450 78,629
12 Tax
Tax calculated on income for the year 374,752 293,912
11,928 6,604
tax rate (factor increase)
-2,925
-
1,484 8,330
Total tax 385,239 308,846
Effective tax rate (%):
Tax rate currently paid by the bank 22.0 22.0
Non-taxable income and non-deductible costs*
-1.4 -2.4
Change in tax rate (factor increase) -0.2 -
0.1 0.5
Total effective tax rate 20.5 20.1
* Primarily value adjustment of and dividends from sector shares.
PAGE 70 RINGKJØBING LANDBOBANK A/S
Note
no.
2022
DKK 1,000
2021
DKK 1,000
Explanation of the correlation between prot before
tax and core earnings
13 Net interest income
Net interest income – income statement 1,680,674 1,356,766
Discounts – amortisation concerning loans taken over etc. -10,296 -10,296
Funding income – own portfolio 66,534 26,088
Bond yields etc. -59,503 -29,999
Net interest income – core earnings 1,677,409 1,342,559
14 Net fee and commission income excluding
securities trading
Fee and commission income – income statement 1,038,855 939,219
Fee and commission expenses – income statement -91,602 -91,183
Securities trading – core earnings -163,525 -171,205
Net fee and commission income excluding
securities trading – core earnings
783,728
676,831
15 Income from sector shares etc.
70,470 102,933
Dividends from sector shares etc. 98,452 76,257
Income from sector shares etc. – core earnings 168,922 179,190
16 Total expenses etc.
Staff and administration expenses – income statement 870,847 790,374
Amortisation, depreciation and write-downs on intangible and
tangible assets – income statement
33,035
35,793
Other operating expenses – income statement 6,607 7,643
Amortisation and write-downs on intangible assets
– core earnings
-19,509
-17,254
Total expenses etc. – core earnings 890,980 816,556
17 Impairment charges for loans and other
receivables etc.
Impairment charges for loans and other receivables etc.
– income statement
-12,450
-78,629
Discounts – amortisation concerning loans taken over etc. 10,296 10,296
Impairment charges for loans and other receivables etc.
– core earnings
-2,154
-68,333
18 Prot before tax and core earnings
Prot before tax 1,880,136 1,538,111
73,493 163,127
Results from investments in associated companies and group
undertakings – income statement
-37
22
-70,470 -102,933
Foreign exchange income – core earnings -66,262 -57,670
Funding expenses – own portfolio -66,534 -26,088
Bond yields etc. 59,503 29,999
Dividends – not sector shares 1,185 852
Result for the portfolio – core earnings (minus) -69,122 7,309
Special costs – core earnings (plus) 19,509 17,254
Core earnings 1,968,767 1,548,056
NOTES
ANNUAL REPORT 2022 PAGE 71
Note
no.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
19 Receivables from credit institutions and central banks
Demand 776,039 216,097
Total receivables from credit institutions and central banks 776,039 216,097
Distributed as follows:
Receivables from credit institutions 776,039 216,097
776,039 216,097
20 Loans and other receivables at amortised cost*
Demand 7,353,370 4,889,428
Up to and including 3 months 2,475,978 1,396,536
More than 3 months and up to and including 1 year 9,815,126 9,266,165
More than 1 year and up to and including 5 years 11,945,344 11,311,679
More than 5 years 16,752,123 14,315,447
Total loans and other receivables at amortised cost 48,341,941 41,179,255
of which collateralised repurchase agreements/
reverse repo transactions
0
52,090
* See also note 44.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
In addition, a discount on loans and guarantees taken over
4,507
14,803
The above includes the following stage 3 impairment charges
Cumulative stage 3 impairment charges and provisions at the
190,619
247,609
Changes during the year -35,276 -56,990
Total stage 3 impairment charges and provisions taken over 155,343 190,619
21 Impairment charges for loans and other receivables and provisions for losses on
guarantees, unutilised credit facilities and credit undertakings
Impairment charges and provisions by stages
Stage 1
DKK 1,000
Stage 2
DKK 1,000
Stage 3
DKK 1,000
Total
DKK 1,000
2022
Loans and other receivables at amortised cost
213,651 1,009,429 988,382 2,211,462
Guarantees
4,955 15,194 46,447 66,596
Unutilised credit facilities and credit undertakings
8,154 15,959 0 24,113
Total impairment charges and provisions by stages 226,760 1,040,582 1,034,829 2,302,171
of which management estimates*
107,591
409,336
277,283
794,210
2021
Loans and other receivables at amortised cost 232,549 825,278 1,099,523 2,157,350
Guarantees 7,961 14,987 74,259 97,207
Unutilised credit facilities and credit undertakings 10,531 18,232 0 28,763
Total impairment charges and provisions by stages 251,041 858,497 1,173,782 2,283,320
of which management estimates* 123,178 283,159 224,906 631,243
* See the description of distribution by stages on page 91-93.
PAGE 72 RINGKJØBING LANDBOBANK A/S
Note
no.
21 Impairment charges for loans and other receivables and provisions for losses on
guarantees, unutilised credit facilities and credit undertakings – continued
Impairment charges and provisions
2022
Stage 1
DKK 1,000
Stage 2
DKK 1,000
Stage 3
DKK 1,000
Total
DKK 1,000
Impairment
charges
etc. taken
to income
statement
DKK 1,000
Impairment charges and provisions at the
251,041 858,497 1,173,782 2,283,320 -
Impairment charges and provisions for
new exposures during the year, including
new accounts for existing customers
80,296 148,705 60,126 289,127 289,127
Reversed impairment charges and
provisions for repaid accounts
-66,346 -144,630 -124,811 -335,787 -335,787
Transfer of impairment charges and
provisions at beginning of year to stage 1
178,445 -154,905 -23,540 0 0
Transfer of impairment charges and
provisions at beginning of year to stage 2
-18,592 108,600 -90,008 0 0
Transfer of impairment charges and
provisions at beginning of year to stage 3
-429 -20,717 21,146 0 0
Impairment charges and provisions during
the year resulting from credit risk change
-197,655 245,032 69,725 117,102 117,102
- - -51,591 -51,591 0
Lost, not previously written down
- - - - 16,300
Received on receivables previously written off
- - - - -25,233
Interest on the impaired part of loans
-49,059
Total impairment charges and provisions
226,760 1,040,582 1,034,829 2,302,171 12,450
of which regarding credit institutions etc.
391 0 0 391 -2,911
2021
Impairment charges and provisions at the
346,844 881,064 976,712 2,204,620 -
Impairment charges and provisions for
new exposures during the year, including
new accounts for existing customers
91,455 118,960 98,793 309,208 309,208
Reversed impairment charges and
provisions for repaid accounts
-83,784 -134,825 -95,421 -314,030 -314,030
Transfer of impairment charges and
provisions at beginning of year to stage 1
158,998 -152,580 -6,418 0 0
Transfer of impairment charges and
provisions at beginning of year to stage 2
-15,390 66,408 -51,018 0 0
Transfer of impairment charges and
provisions at beginning of year to stage 3
-1,731 -107,727 109,458 0 0
Impairment charges and provisions during
the year resulting from credit risk change
-245,351 187,197 203,740 145,586 145,586
- - -62,064 -62,064 -
Lost, not previously written down
- - - - 10,088
Received on receivables previously written off
- - - - -22,611
Interest on the impaired part of loans
-49,612
Total impairment charges and provisions
251,041 858,497 1,173,782 2,283,320 78,629
of which regarding credit institutions etc.
3,302 0 0 3,302 1,297
NOTES
ANNUAL REPORT 2022 PAGE 73
Note
no.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
22 Bonds at fair value
Mortgage credit bonds 5,578,166 5,038,241
Other bonds 1,197,706 1,705,595
Total bonds at fair value 6,775,872 6,743,836
Percent Percent
Bonds at fair value by rating classes
Aaa/AAA 82 73
A3/A- 4 4
Baa1/BBB+ 1 4
Baa2/BBB 2 5
Ba1/BB+ 0 1
Not rated 11 13
Total 100 100
Ratings from the credit rating agencies Moody’s Investors Service, Standard &
rating, the lowest is used.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
23 Shares etc.
Listed on Nasdaq Copenhagen 26,449 8,879
10,012 20,345
Unlisted shares at fair value 8,798 6,838
Sector shares at fair value 1,286,532 1,431,355
Total shares etc. 1,331,791 1,467,417
24 Assets linked to pooled schemes
Cash deposits 103,301 267,180
Bonds:
Other bonds 1,394,342 1,431,770
Total bonds 1,394,342 1,431,770
Shares:
Other shares 815,830 777,747
2,659,367 3,061,166
Total shares 3,475,197 3,838,913
Total assets linked to pooled schemes 4,972,840 5,537,863
PAGE 74 RINGKJØBING LANDBOBANK A/S
Note
no.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
25 Intangible assets
Goodwill
923,255 923,255
Total cost on the balance sheet date 923,255 923,255
Total goodwill on the balance sheet date 923,255 923,255
Customer relationships
195,088 150,000
Additions during the year 0 45,088
Total cost on the balance sheet date 195,088 195,088
55,671 38,417
Amortisation for the year 19,509 17,254
Total amortisation on the balance sheet date 75,180 55,671
Total customer relationships on the balance sheet date 119,908 139,417
Total intangible assets on the balance sheet date 1,043,163 1,062,672
Goodwill was impairment-tested at the end of 2022. The merged bank was tested as a single
Therefore a true and fair view could not be obtained from a test only of the part that had been
taken over. The impairment test did not result in any write-downs.
the year” is used as the opening value for calculating the sensitivity. The tax rate is expected
The robustness of the model is tested in sensitivity analyses where the required rate of return,
changes in growth rate and negative effects of “Result for the portfolio etc.” are tested. The
management believes that the model is robust in respect of the relevant scenarios chosen.
In addition, the bank’s market value is an indicator that there is no need for impairment. On 31
December 2022, the market value was approximately three times the equity value.
NOTES
ANNUAL REPORT 2022 PAGE 75
Note
no.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
26 Land and buildings
Investment properties
8,667 7,667
Disposals during the year 0 -2,340
-5,000 2,500
Reversal of previous years’ write-downs for the year and rever-
sal of total depreciation and write-downs on assets which were
disposed of or decommissioned during the year
0
840
Fair value on the balance sheet date 3,667 8,667
Domicile properties
168,387 186,971
Additions during the year, including improvements 29,500 5,000
3,868 0
Disposals during the year -5,868 -17,882
Depreciation for the year -1,839 -1,838
Write-downs after revaluation for the year -2,500 -5,500
Reversal of previous years’ write-downs for the year and rever-
sal of total depreciation and write-downs on assets which were
disposed of or decommissioned during the year
4,500
1,636
Total revalued amount on the balance sheet date 196,048 168,387
Domicile properties (leasing)
22,578 21,272
Additions during the year 4,041 8,655
Disposals during the year 0 -2,164
Depreciation for the year -5,736 -5,438
Reversal of previous years’ write-downs for the year and rever-
sal of total depreciation and write-downs on assets which were
disposed of or decommissioned during the year
-19
253
Total recognised amount on the balance sheet date 20,864 22,578
When valuing investment and domicile properties, a required rate of return
between 6% and 10% is applied. No external experts were involved in the valua-
tions of investment and domicile properties.
27 Other tangible assets
Cost
depreciation and write-downs 85,621 82,701
Additions during the year, including improvements 7,683 3,136
Disposals during the year -917 -216
Total cost on the balance sheet date 92,387 85,621
Depreciation and write-downs
Depreciation and write-downs at the end of the
70,622
65,075
Depreciation for the year 7,951 5,763
Reversal of previous years’ write-downs for the year and rever-
sal of total depreciation and write-downs on assets which were
disposed of or decommissioned during the year
-917
-216
Total depreciation and write-downs on the balance sheet date 77,656 70,622
Total other tangible assets on the balance sheet date 14,731 14,999
The bank is a lessee under leases for other tangible assets,
which are recognised at:
104
207
PAGE 76 RINGKJØBING LANDBOBANK A/S
Note
no.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
28 Deferred tax assets
The calculated provisions for deferred tax relate to the
following balance sheet items:
Loans and other receivables 77,220 31,325
-52,423 -10,326
Intangible assets -18,855 -22,169
Tangible assets 8,649 4,597
Other balance sheet items 8,442 7,836
Total deferred tax assets 23,033 11,263
Deferred tax assets, beginning of year 11,263 17,868
20,773 0
Deferred tax for the year -11,928 -6,605
tax rate (factor increase)
2,925
0
Total deferred tax assets 23,033 11,263
29 Other assets
Interest and commission receivable 132,024 78,373
150,673 117,478
Collateral under CSA agreements 226,293 20,720
Miscellaneous debtors and other assets 117,925 142,895
Other deposits 50,575 47,700
Total other assets 677,490 407,166
30 Debt to credit institutions and central banks*
Demand 758,592 803,571
Up to and including 3 months 331,075 62,901
More than 3 months and up to and including 1 year 1,128,099 53,704
More than 1 year and up to and including 5 years 758,383 405,266
More than 5 years 591,609 704,733
Total debt to credit institutions and central banks
* See also note 44.
3,567,758 2,030,175
Distributed as follows:
Debt to credit institutions 3,567,758 2,030,175
3,567,758 2,030,175
31 Deposits and other debt
Demand* 35,665,320 32,744,980
Deposits and other debt with notice:
Up to and including 3 months 2,190,631 853,645
More than 3 months and up to and including 1 year 2,577,901 1,620,263
More than 1 year and up to and including 5 years 621,464 532,593
More than 5 years 2,671,622 2,450,705
Total deposits and other debt 43,726,938 38,202,186
of which deposits covered by the Guarantee Fund 55.6% 59.2%
Distributed as follows:
Demand 34,739,640 32,632,512
With notice 2,185,866 1,246,496
Time deposits 3,106,657 968,119
Long-term deposit agreements 758,090 902,960
Special types of deposits* 2,936,685 2,452,099
* Special types of deposits are entered under the item “Demand” pending
payment whereas, in the specication of the different types of deposits,
the sum is included under “Special types of deposit”.
43,726,938 38,202,186
NOTES
ANNUAL REPORT 2022 PAGE 77
Note
no.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
32 Issued bonds at amortised cost*
Up to and including 3 months 259,405 0
More than 3 months and up to and including 1 year 368,799 372,191
More than 1 year and up to and including 5 years 2,450,260 1,982,321
More than 5 years 1,177,034 606,910
Total issued bonds at amortised cost 4,255,498 2,961,422
* See also note 44.
33 Other liabilities
Interest and commission payable 62,372 24,750
366,884 70,605
Collateral under CSA agreements 23,309 15,752
Miscellaneous creditors and other liabilities 581,406 617,847
Total other liabilities 1,033,971 728,954
34 Provisions for pensions and similar liabilities
Pension obligations taken over on the merger 0 2,473
Total provisions for pensions and similar liabilities 0 2,473
35 Subordinated debt*
Type Interest
Cur-
rency
Mil-
lion
Due
date
Possible early
repayment
date
Tier 2 capital
Bond loan** Fixed-rate DKK 500 13 June 2028 13 June 2023
500,000 500,000
Bond loan*** Floating-rate DKK 300 13 June 2030 13 June 2025
300,000 300,000
Bond loan**** Floating-rate EUR 100 22 Aug. 2029 22 Aug. 2024
743,645 743,630
Bond loan***** Floating-rate DKK 500 11 Jan. 2032 11 Jan. 2027
500,000 500,000
Total tier 2 capital (included in total capital) 2,043,645 2,043,630
-7,119 875
Total subordinated debt 2,036,526 2,044,505
* See also note 44.
** Issued on 13 June 2018. The interest rate is a xed rate corresponding
to a 5-year mid-swap plus 1.65% p.a., after which the interest rate will
be a oating rate corresponding to Cibor 6M plus 1.65% p.a. interest
expenses etc. – 2022: tDKK 11,283, 2021: tDKK 11,283. Costs of raising
loan: tDKK 2,500
*** Issued on 13 June 2018. The interest rate is a oating rate correspon-
ding to the Cibor 6M plus 1.85% p.a. interest expenses etc. – 2022:
tDKK 6,269, 2021: tDKK 5,460. Costs of raising loan: tDKK 1,500
**** Issued on 22 August 2019. The interest rate is a oating rate correspon-
ding to the Euribor 3M plus 1.75% p.a. interest expenses etc. – 2022:
tDKK 12,503, 2021: tDKK 9,557. Costs of raising loan: tDKK 2,462
***** Issued on 11 October 2021. The interest rate is a oating rate correspon-
ding to the Euribor 3M plus 1.10% p.a. interest expenses etc. – 2022:
tDKK 5,487, 2021: tDKK 1,011. Costs of raising loan: tDKK 1,750
36 Share capital
Number of DKK 1 shares:
Beginning of year 29,067,721 29,228,321
Cancellation during the year -688,055 -160,600
End of year 28,379,666 29,067,721
of which reserved for subsequent cancellation 826,527 635,805
Total share capital 28,380 29,068
The whole share capital has been admitted for listing on Nasdaq Copenhagen.
PAGE 78 RINGKJØBING LANDBOBANK A/S
Note
no.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
37 Own shares
Own shares included in the balance sheet at 0 0
Market value 783,548 558,397
Number of own shares:
Beginning of year 635,988 165,644
Purchase during the year 1,781,303 1,792,600
Sale during the year -902,709 -1,161,656
Cancellation during the year -688,055 -160,600
End of year 826,527 635,988
of which reserved for subsequent cancellation 826,527 635,805
Nominal value of holding of own shares, end of year 827 636
Own shares’ proportion of share capital, end of year (%):
Beginning of year 2.2 0.6
Purchase during the year 6.3 6.2
Sale during the year -3.2 -4.0
Cancellation during the year -2.4 -0.6
End of year 2.9 2.2
The purchases and sales of own shares during the year were effected on the
basis of the bank’s ordinary trading in shares and share buy-back programmes.
38 Contingent liabilities etc.
Contingent liabilities
Financial guarantees 2,345,714 3,673,137
Guarantees against losses on mortgage credit loans 2,199,287 3,065,101
2,163,492 2,713,942
Sector guarantees 104,485 105,626
Other contingent liabilities 756,701 712,622
Total contingent liabilities 7,569,679 10,270,428
Other contractual obligations
Irrevocable credit undertakings etc. 84,055 781,832
Total other contractual obligations 84,055 781,832
39 Assets provided as security
The loans are funded directly by KfW Bankengruppe, to
which security in the associated loans has been provided.
from the funding at KfW Bankengruppe.
The balance sheet item is 1,041,125 1,171,093
Pledged to Danmarks Nationalbank as collateral
for clearing etc.:
Securities 0 114,020
Balance in current account with Danmarks Nationalbank 35,531 0
Collateral under CSA agreements etc. 226,293 20,720
NOTES
ANNUAL REPORT 2022 PAGE 79
Note
no.
40 Contractual obligations
The following information is provided on material contractual obligations:
• The bank is a member of the association Bankdata. If the bank terminates its membership, it
is liable to pay an exit charge.
• Like the rest of the Danish banking sector, the bank has an obligation to make payments to
the Guarantee Fund and the Resolution Fund.
41 Legal proceedings etc.
substantial alteration of the accounts.
42 Related parties
Persons comprised and denition
Related parties comprise both physical and legal persons who or which have a controlling
interest in or control the bank.
in or control the bank.
The bank’s related parties are thus the members of the bank’s board of directors and general
management and their related parties.
Board members are elected in part by the bank’s shareholders' committee and in part by the
bank’s employees, and the members of general management are employed by the board of
directors on recommendation by the board’s nomination committee.
Plantage ApS.
Transactions with related parties
There were no transactions with members of the board of directors and general management
or their related parties in 2022 except
• payment of salaries and remuneration etc. to the members of the bank’s board of directors
and general management
• securities trading
• deposit activities
• loans and provision of collateral security, and
• other day-to-day banking business.
All transactions during the year with related parties were on market terms or on an at-cost
basis.
Information on the remuneration paid to the board of directors and general management is
given in note 8 and the remuneration report for 2022.
Information on the size of loans, mortgages, sureties and guarantees provided to members
of the bank’s board of directors and general management, the collateral security received and
shareholdings is given in this note. The information in this note covers these parties’ personal
exposures and those of their related parties.
PAGE 80 RINGKJØBING LANDBOBANK A/S
Note
no.
42 Related parties – continued
Amounts of loans issued to and mortgages, sureties or
guarantees issued for the members of the bank’s organs:
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
Board of directors, including members elected by the employees 30,986 48,814
Interest rate
2.22%-21,35% 0.75%-19.50%
General management 1,330 1,330
Interest rate
4.22%-7,42% 2.75%-5.95%
New exposures during the year have been granted for a net 10,502 27,995
All exposures are on market terms, including both
interest and guarantee commission rates.
Security provided by members of the bank’s organs:
Board of directors, including members elected by the employees 12,916 6,702
General management 0 0
Shareholdings* of the board of directors and general man-
agement in Ringkjøbing Landbobank at the end of the year
No. of shares
No. of shares
Board of directors:
Martin Krogh Pedersen, chairman 36,015 30,015
Mads Hvolby, deputy chairman 3,204 3,204
270 270
Morten Jensen 1,100 1,100
Jon Steingrim Johnsen 0 0
16 -
795 785
999 978
- 30,122
Dan Junker Astrup 298 163
Arne Ugilt 839 839
132 293
Finn Aaen 608 555
General management:
John Bull Fisker 76,015 76,015
Claus Andersen 1,947 1,947
8,939 9,089
Carl Pedersen 1,378 1,289
* Shares owned by members of management and their personal related parties.
NOTES
ANNUAL REPORT 2022 PAGE 81
43 Fair value of nancial instruments
Financial instruments are measured in the balance sheet at either fair value or amortised cost
liabilities priced on active markets are calculated on the basis of observed market prices on the
markets are calculated on the basis of generally recognised pricing methods.
Shares etc., investments in associated companies and subsidiaries, assets linked to pooled
Recognised amounts equal fair values.
Loans are measured in the balance sheet at amortised cost plus any fair value hedging.
The difference from fair values is calculated as fees and commission received, costs paid in the
interest level. This, in turn, is calculated by comparing the actual market interest rate with the
nominal rate applying to the loans. The stage 1 impairment charges stated on the balance sheet
date are also added.
The fair value of receivables from credit institutions and central banks is determined by the
same method as for loans.
-
sured at amortised cost, it is estimated that the carrying value corresponds to the fair value. For
dependent on interest level.
Deposits in pooled schemes are measured in the accounts at fair value. Recognised amounts
equal fair values.
Issued bonds and subordinated debt are measured at amortised cost plus any fair value
hedging, which is estimated to correspond to the fair value.
Note
no.
PAGE 82 RINGKJØBING LANDBOBANK A/S
43 Fair value of nancial instruments – continued
Note
no.
Book value
31 Dec. 2022
Fair value
Book value
31 Dec. 2021
Fair value
DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000
Financial assets
Cash in hand and demand deposits
with central banks
4,750,398
4,750,398
3,459,464
3,459,464
Receivables from credit institutions and
central banks*
776,039
776,039
216,097
216,097
Loans and other receivables at
amortised cost*
48,437,342
48,611,400
41,237,540
41,509,682
Bonds at fair value* 6,811,728 6,811,728 6,756,373 6,756,373
Shares etc. 1,331,791 1,331,791 1,467,417 1,467,417
Investments in associated companies 481 481 481 481
Investments in subsidiaries 11,982 11,982 12,020 12,020
Assets linked to pooled schemes 4,972,840 4,972,840 5,537,863 5,537,863
150,673 150,673 117,478 117,478
Total nancial assets 67,243,274 67,417,332 58,804,733 59,076,875
Financial liabilities
Debt to credit institutions and
central banks*
3,577,849
3,535,296
2,030,582
2,030,700
Deposits and other debt* 43,747,721 43,740,175 38,195,382 38,195,161
Deposits in pooled schemes 4,972,840 4,972,840 5,537,863 5,537,863
Issued bonds at amortised cost* 4,277,336 4,277,336 2,975,764 2,975,764
366,884 366,884 70,605 70,605
Subordinated debt* 2,045,954 2,045,954 2,052,632 2,052,632
Total nancial liabilities 58,988,584 58,938,485 50,862,828 50,862,725
* The item includes calculated interest on the balance sheet date. The calculated interest in the balance sheet is
included under the items “Other assets” and “Other liabilities”.
NOTES
ANNUAL REPORT 2022 PAGE 83
Note
no.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
44 Hedging*
Fixed-rate loans at book value 328,788 194,821
Hedged by currency swap (EUR/DKK), maturity 2025:
Synthetic principal 149,101 149,098
Fair value 8,925 -4,393
Hedged by interest rate swaps, maturity 2026-2035:
Synthetic principal 179,887 46,219
Fair value 7,174 -1,113
Fixed-rate debt to credit institutions at book value 557,734 -
Hedged by interest rate swap, maturity 2024:
Synthetic principal 557,734 -
Fair value -18,255 -
Issued bonds at book value 3,105,355 1,698,264
Hedged by currency swaps (EUR/DKK), maturity 2023-2039:
Synthetic principal 1,154,662 1,005,846
Fair value -125,929 20,965
Hedged by currency swaps (SEK/DKK), maturity 2026:
Synthetic principal 684,182 -
Fair value -55,369 -
Hedged by currency swaps (NOK/DKK), maturity 2027:
Synthetic principal 189,375 -
Fair value -13,300 -
Hedged by interest rate swaps, maturity 2023-2029:
Synthetic principal 1,140,552 694,363
Fair value -34,119 4,211
Tier 2 capital at book value 500,000 500,000
Hedged by interest rate swap, maturity 2023:
Synthetic principal 500,000 500,000
Fair value -46 10,201
Hedging is thus:
Currency swaps – total synthetic principal 2,177,320 1,154,944
Interest rate swaps – total synthetic principal 2,378,173 1,240,582
Fair value – currency swaps -185,673 16,572
Fair value – interest rate swaps -45,246 13,299
Value adjustment for the year is distributed as follows:
Currency swaps -140,792 -27,125
Interest rate swaps -54,196 -6,486
Fixed-rate loans -21,692 -4,492
Fixed-rate debt to credit institutions 17,978 3,886
Issued bonds 189,168 34,217
Tier 2 capital 9,534 0
Total effect on prot 0 0
* Fair value hedging only.
PAGE 84 RINGKJØBING LANDBOBANK A/S
Note
no.
45 Risks and risk management
-
The framework for the bank’s risk-taking is established by the board of directors, which has
-
often if needed.
which it has the expertise to manage.
The board of directors’ review of the bank’s business model and associated policies for each
individual risk area is based on various risk reports which are supplied to the board.
The reports describe the various risks to which the bank is exposed and give the board a
act as a basis for a possible decision on adaptation of the policies in the various risk areas.
Apart from the strategic risk management, there is ongoing central operational management
and monitoring of the bank’s risks in each area. This monitoring is reported to the bank’s
general management and board of directors. The management function and the control and
reporting functions are separate, and the work is performed by different central staff functions
in the bank.
The bank’s risk manager ensures full reporting of risks which provides an adequate picture
of the bank’s actual risk taking. In this context, the risk manager prepares a risk management
report to the board of directors' risk committee.
management of these risks:
• Credit risks – note 46 – page 85
• Market risks – note 47 – page 96
• Interest rate risks – note 48 – page 97
• Foreign exchange risks – note 49 – page 98
• Share price risks – note 50 – page 99
• Value at Risk – note 51 – page 100
• Property risks – note 52 – page 101
• Liquidity risks – note 53 – page 102
• Operational risks – note 54 – page 104
descriptions of the bank’s risks.
NOTES
ANNUAL REPORT 2022 PAGE 85
Note
no.
46 Credit risks
-
cant risk area in the bank.
the right balance between assumed risks and return gained by the bank and keeping the bank’s
-
ods etc. in 2022 relative to the previous year.
General information on the portfolio, its management and risk prole
West, Central and North Jutland while also operating within selected niches.
The local section is run via branches in the bank’s core areas in West, Central and North Jut-
land. The most important areas within the niche are a private banking concept covering asset
-
gage and thereby satisfactory security in the mortgaged assets, which is an important part of
its business philosophy.
its central credit function.
The central credit function regularly reviews and follows up all large exposures. Apart from this
routine credit monitoring and management, the bank has developed a set of credit evaluation
models which are used to assess the quality of the credit exposure. The models take various
factors into account.
The personal customer models (for personal and small business customers) are based on
information on the customer’s assets, debt gearing and disposable amount as well as a range
of behavioural data.
standing and earning capacity.
Credit exposure
The bank’s credit exposure has increased in recent years in step with the growth in its loan
portfolio.
Maximum credit exposure classied by balance sheet and off-balance sheet items
(after impairment charges and provisions)
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
Loans and other receivables at amortised cost 48,341,941 41,179,255
Guarantees 7,503,083 10,173,221
Unutilised credit facilities and credit undertakings* 20,583,956 21,208,177
1,072,417 1,006,348
Total maximum credit exposure 77,501,397 73,567,001
* On 31 December 2022 the bank had provided unutilised credit facilities and credit undertakings to a total of DKK 20.6 billion
(2021: DKK 21.2 billion). Committed credit facilities and credit undertakings were DKK 84.0 million (2021: DKK 781.8 million).
PAGE 86 RINGKJØBING LANDBOBANK A/S
Note
no.
46 Credit risks – continued
Security received
as much as possible by obtaining collateral in the form of physical assets, securities, bank deposits etc.
as well as guarantees, including by surety.
The bank regularly monitors the value of collateral security obtained, and the related loan values are
calculated in accordance with the bank’s internal procedures as follows:
•
•
deduction.
• Movables and production facilities are in principle valued at book value less a deduction.
• Agricultural properties are valued on the same principles as used by the Danish FSA, except that the
bank applies lower prices for farmland.
• Securities are valued at fair value less a safety margin.
•
over the assets’ expected/remaining lives. The calculation is based on the expected output in a
normal year.
The deductions are made to cover the risk in connection with realisation, costs etc.
Security received
Maximum
credit
exposure
Loans and
guarantees
Real
property Movables
Securities
and cash
Other
security* Total
DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000
31 Dec. 2022
Public
authorities
23,745
2,388
702
1,348
843
120
3,013
Business customers:
Agriculture, forestry
5,687,342
4,367,757
1,613,811
698,809
159,823
1,323,888
3,796,331
Industry and raw
materials extraction
2,957,433
2,001,414
282,104
662,525
54,057
212,776
1,211,462
Energy supply 5,539,631 4,301,792 247,940 500 36,073 1,977,800 2,262,313
Building and
construction
3,234,559
2,065,485
705,761
201,131
165,546
153,922
1,226,360
Trade 3,382,669 2,311,666 582,236 676,697 86,983 94,864 1,440,780
Transport, hotels
and restaurants
1,034,260
808,522
362,295
74,447
63,927
213,671
714,340
Information and
communication
292,301
173,738
67,180
43,595
23,196
10,757
144,728
Finance and
insurance
9,317,870
6,005,502
513,705
832,112
1,911,538
386,785
3,644,140
Real property 13,619,395 10,480,129 6,173,461 17,217 546,817 455,358 7,192,853
Other business
customers
6,800,451
3,796,549
1,342,454
250,348
1,129,790
269,118
2,991,710
Total business
customers
51,865,911
36,312,554
11,890,947
3,457,381
4,177,750
5,098,939
24,625,017
Private individuals 25,611,741 19,530,082 9,520,495 2,412,294 1,816,245 2,236,228 15,985,262
Total 77,501,397 55,845,024 21,412,144 5,871,023 5,994,838 7,335,287 40,613,292
* Includes security in the form of wind turbines, farms, mortgaged share capital, surety etc.
NOTES
ANNUAL REPORT 2022 PAGE 87
Note
no.
46 Credit risks – continued
Security received – continued
Security received
Maximum
credit
exposure
Loans and
guarantees
Real
property Movables
Securities
and cash
Other
security* Total
DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000
31 Dec. 2021
Public
authorities
22,470
2,020
117
963
912
120
2,112
Business customers:
Agriculture, forestry
5,742,096
4,147,045
1,502,751
777,203
190,273
1,483,151
3,953,378
Industry and raw
materials extraction
2,576,960
1,621,696
226,662
534,402
17,298
171,128
949,490
Energy supply 4,702,091 3,510,502 92,425 700 21,721 2,183,499 2,298,345
Building and
construction
3,235,952
1,929,500
734,221
186,528
173,580
139,831
1,234,160
Trade 3,122,538 1,746,443 499,554 508,192 112,322 106,063 1,226,131
Transport, hotels
and restaurants
1,164,156
933,470
287,185
74,301
108,899
374,852
845,237
Information and
communication
405,912
277,166
94,823
60,206
19,218
68,223
242,470
Finance and
insurance
8,027,396
4,956,447
296,928
386,246
1,632,097
502,247
2,817,518
Real property 12,893,856 8,940,036 5,527,036 19,498 486,740 625,880 6,659,154
Other business
customers
6,203,776
3,381,542
1,192,305
265,603
686,408
320,325
2,464,641
Total business
customers
48,074,733
31,443,847
10,453,890
2,812,879
3,448,556
5,975,199
22,690,524
Private individuals 25,469,798 19,906,609 8,954,470 2,060,668 1,319,083 2,721,142 15,055,363
Total 73,567,001 51,352,476 19,408,477 4,874,510 4,768,551 8,696,461 37,747,999
* Includes security in the form of wind turbines, farms, mortgaged share capital, surety etc.
The tables above only show loan values corresponding to the maximum credit exposure for the indi-
vidual exposure. If the loan value for the individual exposure exceeds the maximum credit exposure
allowed, the surplus loan value is not included in the tables.
As a result of general cautiousness when computing loan values, the possible realisation values are
often higher than the loan values shown. In a number of instances, customers' drawdown of their maxi-
mum credit facilities is also conditional upon their ability to deposit additional security.
The real collateral values for the maximum credit risk are therefore actually higher than indicated in the
tables.
In addition, a portion of the undrawn credit lines which are part of the maximum credit exposure is
undrawn credit facilities. The maximum credit exposure is consequently lower in practice than indicated
in the tables.
PAGE 88 RINGKJØBING LANDBOBANK A/S
Note
no.
46 Credit risks – continued
Credit concentration
-
tive to its common equity tier 1 capital.
The credit quality of the bank’s 20 largest exposures is generally high. One of the exposures
None of the other exposures show any material signs of weakness.
Credit concentration
End of End of End of End of End of
2022 2021 2020 2019 2018
Total large exposures 118.0% 109.8% 99.8% 121.0% 106.0%
Explanation: The Danish FSA key gure “Total large exposures”.
Geographical diversication
loans and guarantees has been achieved via both the local and niche sections.
NOTES
29%
5%
26%
8%
27%
5%
Explanation: Distribution of the bank’s portfolio of loans and guarantees before impairments and provisions,
based on the customers’ addresses.
ANNUAL REPORT 2022 PAGE 89
Note
no.
46 Credit risks – continued
Diversication across industries
be if the bank were run exclusively as a local bank.
A more detailed distribution by sector and industry of the items “Loans and other receivables at
amortised cost” and “Guarantees” (less provisions for losses on guarantees) is given below.
Loans and guarantees in percent, end of year, by sector and industry (net)*
31 Dec. 2022
DKK 1,000
31 Dec. 2022
Percent
31 Dec. 2021
DKK 1,000
31 Dec. 2021
Percent
Public authorities 2,388 0.0 2,020 0.0
Business customers:
Agriculture, hunting and forestry
Cattle farming etc. 587,975 1.1 587,222 1.1
Pig farming etc. 501,863 0.9 560,772 1.1
Other agriculture,
hunting and forestry
2,518,250
4.5
2,258,418
4.4
Fisheries 759,669 1.4 740,633 1.4
Industry and raw materials extraction 2,001,414 3.6 1,621,696 3.2
Energy supply
Renewable energy 4,213,630 7.5 3,347,550 6.5
Other energy supply 88,162 0.2 162,952 0.3
Building and construction 2,065,485 3.7 1,929,500 3.8
Trade 2,311,666 4.1 1,746,443 3.4
Transport, hotels and restaurants 808,522 1.4 933,470 1.8
Information and communication 173,738 0.3 277,166 0.5
Finance and insurance 6,005,502 10.8 4,956,447 9.7
Real property
prior creditors
8,061,051
14.4
6,743,210
13.1
2,419,078 4.3 2,196,826 4.3
Other business customers 3,796,549 6.8 3,381,542 6.6
Total business customers 36,312,554 65.0 31,443,847 61.2
SMEs’ share of this (in percentage points) 31,215,956 55.9 28,162,342 54.8
Private individuals 19,530,082 35.0 19,906,609 38.8
Total 55,845,024 100.0 51,352,476 100.0
* The distribution by sector and industry is made on the basis of Statistics Denmark’s sector codes etc.
PAGE 90 RINGKJØBING LANDBOBANK A/S
Note
no.
46 Credit risks – continued
Diversication across industries – continued
Comments on certain industries
certain degree.
Loans and guarantees for renewable energy grew from 6.5% to 7.5%. The industry
primarily attributable to new loans to biogas plants. Security consists of mortgages on the
plants and assignment in electricity accounts etc.
deed portfolios, leasing companies and the bank’s concept for securities lending. Security con-
sists, among other things, of listed securities, mortgage deeds and lease assets.
The share of loans and guarantees to personal customers decreased in the period. The reasons
include a transfer of home loans for funding by Totalkredit, a decrease in guarantees for home
loans and the fact that the share decreases automatically when the loans in other industries
personal customers consists primarily of mortgages on real property (private homes).
NOTES
ANNUAL REPORT 2022 PAGE 91
Note
no.
46 Credit risks – continued
Credit quality
The bank’s assessment is that the credit quality of its loans is generally high. The ability of the bank’s
customers to pay is generally good and, combined with the bank’s solid cover of many exposures
through collateral, the result is low credit risks.
Loans, guarantees and unutilised credit facilities and credit undertakings by credit quality, sector and
industry and IFRS 9 stages (before impairment and provisions)
Distribution by credit quality and stages
Stage 1 Stage 2 Stage 3
Credit-
impaired on
initial
recognition Total Total
DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000 Percent
31 Dec. 2022
Credit quality
High 58,193,355 51,430 0 0 58,244,785 74.0
Medium 11,063,228 2,409,161 0 0 13,472,389 17.1
Low 1,165,646 4,404,266 0 0 5,569,912 7.1
Credit-impaired - - 1,214,455 229,610 1,444,065 1.8
Total 70,422,229 6,864,857 1,214,455 229,610 78,731,151 100.0
Impairment charges etc. 226,760 1,040,582 879,486 155,343 2,302,171
31 Dec. 2021
Credit quality
High 56,013,173 244,013 0 0 56,257,186 75.2
Medium 10,262,509 1,751,905 0 0 12,014,414 16.0
Low 1,215,687 3,570,338 0 0 4,786,025 6.4
Credit-impaired - - 1,499,175 287,173 1,786,348 2.4
Total 67,491,369 5,566,256 1,499,175 287,173 74,843,973 100.0
Impairment charges etc. 251,041 858,497 983,163 190,619 2,283,320
The table shows exposures by high, medium and low credit quality as well as credit-impaired on initial
recognition and indicates that the credit quality is high for 74.0% of the bank’s exposures, a decrease
compared to the 75.2% last year. Despite the marginal decrease, the credit quality remains high.
The categories high, medium and low credit quality do not translate directly into the Danish FSA’s rating
classes but, as a rule, high credit quality can be viewed as FSA rating classes 3 and 2a, medium credit
quality as the best part of FSA rating class 2b, while low credit quality covers the rest of FSA rating
expected in the most probable scenario. Exposures which are credit-impaired on initial recognition are
those where losses are expected in the most probable scenario.
only gradually incorporated into statements of assets and liabilities etc. Changes in the economic situ-
continues, the stated credit quality is also expected to fall.
PAGE 92 RINGKJØBING LANDBOBANK A/S
Note
no.
46 Credit risks – continued
Credit quality – continued
Loans, guarantees and unutilised credit facilities and credit undertakings by credit quality, sector and
industry and IFRS 9 stages (before impairment and provisions) – continued
Distribution by sector and industry and stage
Stage 1 Stage 2 Stage 3
Credit-
impaired on
initial
recognition Total
Total
impairment
charges etc.
DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000
31 Dec. 2022
Public
authorities
23,442
374
660
0
24,476
731
Business customers:
Agriculture, forestry
4,474,520
1,382,805
618,976
119,354
6,595,655
974,753
Industry and raw
materials extraction
2,552,250
320,438
42,847
225
2,915,760
59,694
Energy supply 5,425,297 126,750 458 7,290 5,559,795 37,758
Building and
construction
2,872,240
356,916
107,760
2,396
3,339,312
104,887
Trade 2,999,472 345,575 40,352 2,998 3,388,397 82,139
Transport, hotels
and restaurants
877,953
166,483
12,764
1,587
1,058,787
34,026
Information and
communication
255,802
30,660
25,681
0
312,143
21,892
Finance and
insurance
8,678,227
484,874
38,501
0
9,201,602
98,842
Real property 12,457,659 1,126,304 70,608 31,571 13,686,142 219,831
Other business
customers
5,983,638
534,520
55,741
2,405
6,576,304
143,513
Total business
customers
46,577,058
4,875,327
1,013,688
167,824
52,633,897
1,777,335
Private individuals 23,821,729 1,989,158 200,107 61,784 26,072,778 524,105
Total 70,422,229 6,864,857 1,214,455 229,610 78,731,151 2,302,171
Total (percent) 89.4 8.7 1.6 0.3 100.0
NOTES
ANNUAL REPORT 2022 PAGE 93
Note
no.
46 Credit risks – continued
Credit quality – continued
Loans, guarantees and unutilised credit facilities and credit undertakings by credit quality, sector and
industry and IFRS 9 stages (before impairment and provisions) – continued
Distribution by sector and industry and stage
Stage 1 Stage 2 Stage 3
Credit-
impaired on
initial
recognition Total
Total
impairment
charges etc.
DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000 DKK 1,000
31 Dec. 2021
Public
authorities
21,929
375
479
0
22,783
614
Business customers:
Agriculture, forestry
4,317,397
1,409,516
779,352
153,226
6,659,491
993,851
Industry and raw
materials extraction
2,277,955
190,311
43,872
227
2,512,365
54,352
Energy supply 4,608,886 96,405 0 6,990 4,712,281 28,590
Building and
construction
3,038,868
226,606
91,585
5,466
3,362,525
128,206
Trade 2,800,461 316,009 29,721 3,200 3,149,391 89,312
Transport, hotels
and restaurants
950,632
209,282
37,771
1,861
1,199,546
44,890
Information and
communication
363,571
35,872
24,157
0
423,600
19,739
Finance and
insurance
7,254,369
680,927
54,078
0
7,989,374
89,648
Real property 12,172,671 600,708 94,271 30,399 12,898,049 160,333
Other business
customers
5,407,604
480,891
90,747
3,554
5,982,796
182,680
Total business
customers
43,192,414
4,246,527
1,245,554
204,923
48,889,418
1,791,601
Private individuals 24,277,026 1,319,354 253,142 82,250 25,931,772 491,105
Total 67,491,369 5,566,256 1,499,175 287,173 74,843,973 2,283,320
Total (percent) 90.2 7.4 2.0 0.4 100.0
According to the table as at 31 December 2022 on page 92, 89.4 percent of the bank’s exposures are in
stage 1, while 8.7% are in stage 2. The bank's exposures in stage 3 account for 1.9%. The group “Credit-
impaired on initial recognition” is included as a part of stage 3.
-
tion in stages are described in note 57 “Accounting policies etc.” in the section “Model for impairment of
expected credit losses on loans and other receivables etc.”
from stage 3 to stage 2.
PAGE 94 RINGKJØBING LANDBOBANK A/S
Note
no.
46 Credit risks – continued
Credit quality – continued
Loans in stage 3
Loans (gross) with
impairment charges Impairment charges
Security for
impaired loans
DKK 1,000 DKK 1,000 DKK 1,000
31 Dec. 2022
Public authorities 660 621 45
Business customers:
674,155 335,451 311,977
Industry and raw materials extraction 6,804 3,733 1,673
Energy supply 7,477 7,497 1
Building and construction 86,074 43,232 43,725
Trade 36,553 25,328 11,145
Transport, hotels and restaurants 12,862 8,676 4,232
Information and communication 24,182 16,303 7,335
Finance and insurance 35,399 12,816 23,024
Real property 100,874 40,276 54,506
Other business customers 52,730 34,694 16,554
Total business customers 1,037,110 528,006 474,172
Private individuals 226,499 182,472 51,159
Total 1,264,269 711,099 525,376
31 Dec. 2021
Public authorities 678 533 128
Business customers:
829,987 405,495 373,691
Industry and raw materials extraction 6,368 4,455 2,080
Energy supply 6,835 7,008 0
Building and construction 74,478 47,408 27,373
Trade 26,492 23,330 5,021
Transport, hotels and restaurants 34,510 18,408 10,081
Information and communication 21,067 12,389 9,550
Finance and insurance 51,952 15,752 33,378
Real property 123,447 46,244 54,269
Other business customers 86,818 68,963 19,871
Total business customers 1,261,954 649,452 535,314
Private individuals 298,600 224,632 81,158
Total 1,561,232 874,617 616,600
The bank is particularly focused on covering the risk on exposures which have been impaired. Under
the bank’s credit policy, these exposures must be covered to the greatest possible extent by collateral.
When determining the need for an impairment charge, the value of collateral is included at the expected
net realisation value in different scenarios. When determining the need for an impairment charge, the
bank makes only modest allowance for the ability to make payments over and above the value of col-
lateral.
NOTES
ANNUAL REPORT 2022 PAGE 95
Note
no.
46 Credit risks – continued
Credit quality – continued
Suspended interest
The credit quality is also documented by the size of exposures with suspended interest.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
Loans and other receivables with suspended
interest on the balance sheet date 81,176 97,757
Other credit risks
arises from the bank’s loans to other banks, its possession of bonds, its trading in securities,
The settlement risk is the risk that the bank will not receive payment or securities correspon-
ding to the securities and/or payments which it had made and delivered in the context of trades
in securities and/or currency.
counterparties. When granting lines, account is taken of the individual counterparty’s risk pro-
which are granted. The bank also mitigates its settlement risk concerning clearing of foreign
exchange via its membership of a clearing partnership (referred to as the CLS partnership).
The bank has also entered into a number of CSA (Credit Support Annex) agreements in con-
nection with ISDA (International Swaps and Derivatives Association) agreements which had
been signed. The CSA agreements contribute to reducing the credit risk for either the bank or
market value of the derivatives in question.
level relative to the bank’s size, and limit it to credit institutions of good credit quality.
Receivables from central banks and credit institutions
central banks and credit institutions. The bank has assumed only a moderate risk on this
item and all of the total receivables from central banks and credit institutions are thus due on
demand.
The bond portfolio
counterparties.
The bank also has a portfolio of corporate bonds etc. The credit quality of these bonds is good,
but their market value can vary over time in connection with general changes in credit spreads
The 11% non-rated securities includes non-preferred senior issues.
Please also refer to note 22.
PAGE 96 RINGKJØBING LANDBOBANK A/S
NOTES
Note
no.
46 Credit risks – continued
Derivative nancial instruments
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
Positive market value (by counterparty risk) after netting
Counterparty risk weighting 20% 42,315 19,998
Counterparty risk weighting 50% 50,102 24,611
Counterparty risk weighting 75% 12,727 19,452
Counterparty risk weighting 100% 13,416 30,941
Counterparty risk weighting 150% 78 4,467
Total risk weighting 118,638 99,469
47 Market risks
interest rate risks, foreign currency risks, share price risks and property risks. The bank’s basic
policy is to keep total market risks at a moderate level.
The bank has determined a concrete framework for each type of market risk, and the risk
return.
The bank uses derivatives to hedge and manage the various market risk types if it wishes to
reduce or eliminate the market risks which it has assumed.
To supplement the more traditional measures of market risk, the bank uses a mathematical/
statistical model to compute market risks. The model is used to compute Value at Risk (VaR),
which is regularly reported to the bank’s management. The model is thus used as one of a
number of tools in the bank’s management of market risks. Please see note 51 on page 100 for
information.
ANNUAL REPORT 2022 PAGE 97
Note
no.
48 Interest rate risks
The bank’s lending and deposit activities and accounts with credit institutions are mostly based
which are monitored continuously, and hedging transactions are entered into as needed, with a
consequent reduction of the interest rate risk.
-
sume high levels of exposure to movements in interest rates.
The bank’s securities department monitors and manages its interest rate risk daily. The bank’s
accounts department checks that the limits for assumption of interest rate risk are observed,
and reports to the bank’s board of directors and general management.
accordance with its policy for this type of risk.
Interest rate risk
0
1
2
3
4
5
6
7
Dec/17
Jun/18
Dec/18
Jun/19
Dec/19
Jun/20
Dec/20
Jun/21
Dec/21
Jun/22
Dec/22
Percent
PAGE 98 RINGKJØBING LANDBOBANK A/S
Note
no.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
48 Interest rate risks – continued
Total interest rate risk, including by foreign currency
Total interest rate risk 60,813 31,033
Interest rate risk (%) 0.7 0.4
Interest rate risk by foreign currency:
DKK 24,06459,858
CHF -133 -163
EUR 1,096 6,706
GBP -630 -529
NOK 121 196
SEK 304 307
USD 198 469
Other currencies -1 -17
Total 60,813 31,033
49 Foreign exchange risks
The bank’s principal currency is the Danish krone, but it has also entered into lending and de-
posit activities, owns securities, and has issued bonds and raised loans in other currencies.
The bank’s policy is to maintain a low exposure to foreign exchange risk, and the bank thus
reduces ongoing positions in foreign currencies via hedging.
The bank’s foreign department manages its positions in foreign exchange daily, while the ac-
counts department monitors compliance with limits and reports to the board of directors and
general management.
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
Assets and liabilities in foreign currency
and foreign exchange indicators
Total assets in foreign currency 5,710,341 5,753,404
Total liabilities in foreign currency 9,741,588 5,653,534
Foreign exchange indicator 1 87,595 112,524
Foreign exchange indicator 1 as a percentage of tier 1 capital (%) 1.1 1.5
Foreign exchange indicator 2 1,052 100
Foreign exchange indicator 2 as a percentage of tier 1 capital (%) 0.0 0.0
NOTES
ANNUAL REPORT 2022 PAGE 99
Note
no.
50 Share price risks
The bank is a co-owner of various sector companies such as BI Holding A/S (BankInvest), Bokis
A/S, DLR Kredit A/S, Letpension Holding A/S, PRAS A/S and others.
equity interests are thus not deemed to be a part of the bank’s share price risk. The bank also
holds a small portfolio of listed shares etc.
The holding of shares etc. amounted to DKK 1,332 million at the end of the year, with DKK 37
The bank’s policy is to maintain a moderate exposure to share price risk. The securities de-
partment undertakes the daily management of the bank’s share portfolio, while the accounts
department monitors limits and reports to general management and the board of directors.
efforts to achieve its goal of maintaining a moderate risk on share prices.
Share exposure
0
1
2
3
4
5
6
7
Dec/17
Dec/18
Dec/19
Dec/20
Dec/21
Dec/22
Percent
Explanation: The share price exposure is computed as the bank’s portfolio of shares (excluding sector shares and
PAGE 100 RINGKJØBING LANDBOBANK A/S
NOTES
Note
no.
50 Share price risks – continued
Sensitivity analysis
31 Dec. 2022
DKK 1,000
31 Dec. 2021
DKK 1,000
Sensitivity analysis of sector shares
Sector shares cf. note 23 1,286,532 1,431,355
128,653 143,136
The price on the sector shares depends on earnings in the companies. The above shows the
effect of a 10% decrease in earnings.
51 Value at Risk
(VaR) model as a sensitivity analysis to compute market risks as a supplement to the more
traditional measures of market risk. The model is thus used as one of a number of tools in the
bank’s management of market risks. VaR is a measure of risk which describes the bank’s risk
under normal market conditions.
The model in brief
The model is a parametric VaR model based on a historical analysis of the covariance (cor-
current positions, the model can calculate a risk of losses for a forthcoming ten-day period.
The bank’s interest rate positions, foreign currency positions and listed share positions etc. are
included in the calculation, while positions in sector shares etc. are not included. The model
does not include the credit spread risks on the bank’s portfolio of bonds.
A separate VaR is thus calculated for interest rate, foreign exchange and listed share positions
etc., and a total VaR is also calculated for all of these. The calculated VaR indicates the bank’s
sensitivity to losses on the basis of its positions.
of the VaR model over more traditional measures of risk.
the model’s method is unchanged compared to last year.
Back tests and stress tests
“Back tests” are carried out to demonstrate that the VaR model provides a sensible picture of
the bank’s risk. The test compares the loss calculated by the model with the losses which the
bank would actually have suffered if the positions in question had been retained for a ten-day
period.
The extraordinary market situation arising in connection with Russia’s invasion of Ukraine and
-
model with 99% probability.
This is not unnatural in a situation where market volatility has exceeded historical market
dynamics and where the nature of the correlations between the returns for different asset
classes changes. The changed correlations and increased volatility have subsequently become
ANNUAL REPORT 2022 PAGE 101
Note
no.
51 Value at Risk – continued
Value at Risk summary
The bank’s total VaR was DKK 50.0 million at the end of 2022. This sum is an expression of the
maximum loss in a statistical perspective which the bank could risk losing with 99% probability
if all market positions were retained unchanged for a period of ten days.
As indicated in the table, the bank’s total VaR in 2022 varied from DKK 7.5 million to DKK 80.3
Average Min. Max. End of year
Risk type VaR gure VaR gure* VaR gure* VaR gure
(DKK million)
Interest 28.7 6.7 79.0 48.1
Foreign exchange 0.2 0.3 0.1 0.2
Share price 5.4 4.1 5.9 4.7
-4.2 -3.6 -4.7 -3.0
Total VaR gure 30.1 7.5 80.3 50.0
* Determined by the total VaR gure.
52 Property risks
The bank primarily intends to possess only properties for use in banking operations, and also to
maintain low property risks.
The bank’s portfolio therefore mainly consists of domicile properties to which investment
properties should be added that are relatively modest relative to both the bank’s balance sheet
total and its equity.
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Value at Risk (DKK million)
10-days period with 99% probability
Development in Value at Risk
Interest Total
Foreign currency Share
PAGE 102 RINGKJØBING LANDBOBANK A/S
NOTES
Note
no.
53 Liquidity risks
obligations.
-
liquidity for a stress scenario by means of recovery plans for a period of at least 12 months.
In terms of the LCR, the bank must comply with the statutory requirement of at least 100%.
This key ratio expresses the ability of banks to honour their payment obligations for a 30-day
period without access to market funds.
On 31 December 2022 the bank’s LCR was 188%, which thus met the statutory requirement.
143% on 31 December 2022, compared to a limit value of 100%. The bank thus also met this
statutory requirement.
Finally, the bank must meet the Net Stable Funding Ratio (NSFR). Like the LCR requirement, the
The NSFR is calculated in percent as the ratio of total available stable funding to total required
stable funding. The statutory requirement is that the ratio must exceed 100%.
The bank’s NSFR was 119% on 31 December 2022, which thus exceeded the statutory require-
ment.
The bank’s assets and thus its loan portfolio are funded from a range of sources, primarily the
out longer-term loans with other credit institutions, issuing both preferred and non-preferred
The bank’s deposit base consists of core deposits and deposits from customers with a long-
bilateral loan agreements with various European business partners.
The composition of the bank’s funding situation does not leave the bank dependent on indi-
vidual business partners.
-
lion. The programme helps to ensure alternative funding sources for the bank. Historically, the
bank has used the EMTN bond programme to issue ordinary senior capital, non-preferred senior
capital and tier 2 capital, and funds were also raised under the programme in 2022.
The bank thus issued non-preferred senior capital equivalent to a total of DKK 2 billion in 2022.
ANNUAL REPORT 2022 PAGE 103
Note
no.
53 Liquidity risks – continued
that the bank can procure liquidity by letting Totalkredit/Nykredit issue SDO bonds against
security in the loans which the bank has provided to customers with security in real property.
As evident from the following, the short-term funding (time to maturity less than one year) is
supported via the bank’s cash in hand and receivables from Danmarks Nationalbank, short-term
deposits with other credit institutions, and the bank’s own portfolio of liquid securities. Surplus
2021 was DKK 9.2 billion.
Distribution of funding
Total capital base, 17%
Other liabilities, 2%
Deposits, 63%
Deposits in pooled schemes, 7%
Issued bonds – term to
maturity less than 1 year, 1%
Issued bonds – term to
maturity more than 1 year, 5%
Debt to credit institutions
- term to maturity more
than 1 year, 2%
Debt to credit institutions
- term to maturity less
than 1 year, 3%
(DKK 1,000)
The short-term funding (term to maturity less than 1 year):
Debt to credit institutions and central banks – term to maturity less than 1 year 2,217,766
Issued bonds – term to maturity less than 1 year 628,204
Total 2,845,970
Covered as follows:
Cash in hand and demand deposits with Danmarks Nationalbank 4,750,398
Receivables from credit institutions – term to maturity less than 1 year 776,039
Total 12,338,770
Excess cover 9,492,800
PAGE 104 RINGKJØBING LANDBOBANK A/S
NOTES
Note
no.
54 Non-nancial risks
terrorism etc., IT risks and other operational risks.
compliance with data ethics, the integration and adequacy of the bank’s IT systems, depen-
dence on external factors, including subsuppliers, and with the bank’s organisation, including
ineffective separation of functions.
The bank regularly produces reports on the losses and events which are attributed to opera-
and improved in order to avoid or minimise any operational risks. The bank’s procedures are
regularly reviewed and assessed by the bank’s internal and external auditors.
In addition, the bank conducts internal thematic reviews of selected business areas, identi-
improving the bank’s procedures etc. accordingly.
Combating money laundering etc.
of banking in a globalised world.
The bank has implemented internal procedures, controls, monitoring etc. to help comply
with applicable rules in the area. The bank also regularly provides in-service training for its
39-40.
ANNUAL REPORT 2022 PAGE 105
Note
no.
54 Non-nancial risks – continued
IT risks
IT supports a large part of the systems and processes used by both the bank’s customers and
its employees. IT security is therefore an important element in the assessment of the bank’s
The bank’s board of directors sets and formulates the requirements regarding the level of the
bank’s IT risks in the IT risk management policy and the IT security policy. The two policies form
the basis for the bank’s work with IT risks.
Part of the work with IT risks and their management is an annual risk analysis. The analysis
assesses different IT risk scenarios for the bank’s different systems and the probability and
consequences of the different scenarios – before and after mitigating measures.
The risk analysis is expressed as a risk score for each individual system. Requirements for the
Based on the above, the board of directors annually updates and approves the two policies.
In addition to addressing IT risk management risks and IT security risks, the bank’s IT organisa-
tion and management also regularly decide on the IT preparedness plans made.
Preparedness exercises are carried out regularly to ensure that the bank is able to handle
events that may arise.
The bank’s IT risk management policy, IT security policy and IT preparedness plans apply to all
aspects of its use of IT, including IT that is fully or partly outsourced.
These requirements apply to the bank’s internal IT organisation as well as its primary external
IT supplier Bankdata, which the bank owns together with a number of other banks, and JN Data
which is a supplier to Bankdata and responsible for the daily operation.
Data processing
sing are a high priority for the bank. The bank’s board of directors has therefore adopted a data
ethics policy. The policy supplements the bank’s systems and procedures. The policy, systems
customer data.
Quantication of operational risks in the statement of capital
The capital adequacy rules require the banks to quantify and recognise an amount for opera-
tional risks when computing their capital adequacy.
The bank uses the basic indicator method which bases the calculation on an average of the
risk exposure to cover the bank’s operational risks.
Please see page 63 for further details on the amount recognised.
PAGE 106 RINGKJØBING LANDBOBANK A/S
Note
no.
55 Derivative nancial instruments
Remaining time to maturity
DKK 1,000 Up to and including 3 months More than 3 months and up to and
including 1 year
31 Dec. 2022
Nominal value
Net
market value
Nominal value
Net
market value
Currency contracts
Spot, purchase 74,343 -138 0 0
Spot, sale 13,507 39 0 0
Forward transactions/futures, purchase 3,910,355 -50,635 981,745 672
Forward transactions/futures, sale 74,826 482 18,852 530
Swaps 483,537 2,565 72,140 2,343
Options, acquired 930 -5 0 0
Options, issued 956 5 0 0
Interest-rate contracts
Spot, purchase 708,804 584 0 0
Spot, sale 175,689 1,138 0 0
Forward transactions/futures, purchase 250,237 -5,014 22,969 142
Forward transactions/futures, sale 495,976 6,358 66,882 282
Swaps 8,000 -6 1,547,697 -17,278
Options, acquired 0 0 19,200 181
Options, issued 0 0 19,200 -105
Share contracts
Spot, purchase 1,621 214 0 0
Spot, sale 1,638 -172 0 0
Forward transactions/futures, purchase 147 144 0 0
Forward transactions/futures, sale 147 -109 0 0
Options, acquired 27,413 6 4,563 745
Options, issued 27,338 -6 4,563 -745
More than 1 year and up to and
including 5 years
More than 5 years
Nominal value
Net
market value
Nominal value
Net
market value
Currency contracts
Swaps 1,995,551 -54,064 999,733 -47,724
Interest-rate contracts
Swaps 868,748 -42,776 257,060 -14,011
Options, acquired 39,921 1,304 7,367 -46
Options, issued 39,921 -1,211 3,620 100
Share contracts
Options, acquired 10,750 192 0 0
Options, issued 10,765 -192 0 0
NOTES
ANNUAL REPORT 2022 PAGE 107
55 Derivative nancial instruments – continued
DKK 1,000 Total nominal value Total net market value
31 Dec. 2022 2021 2022 2021
Currency contracts
Spot, purchase 74,343 24,519 -138 -60
Spot, sale 13,507 56,428 39 22
Forward transactions/futures, purchase 4,892,100 1,296,589 -49,963 14,381
Forward transactions/futures, sale 93,678 2,378,342 1,012 -1,579
Swaps 3,550,961 2,281,530 -96,880 54,176
Options, acquired 930 5,490 -5 111
Options, issued 956 5,447 5 -111
Interest-rate contracts
Spot, purchase 708,804 127,313 584 62
Spot, sale 175,689 163,331 1,138 116
Forward transactions/futures, purchase 273,206 309,097 -4,872 1,485
Forward transactions/futures, sale 562,858 562,394 6,640 -728
Swaps 2,681,505 2,123,013 -74,071 -21,565
Options, acquired 66,488 129,897 1,439 -1,021
Options, issued 62,741 121,556 -1,216 1,470
Share contracts
Spot, purchase 1,621 3,339 214 1,138
Spot, sale 1,638 3,279 -172 -1,024
Forward transactions/futures, purchase 147 0 144 0
Forward transactions/futures, sale 147 0 -109 0
Options, acquired 42,726 13,510 943 0
Options, issued 42,666 13,516 -943 0
Total net market value -216,211 46,873
Note
no.
PAGE 108 RINGKJØBING LANDBOBANK A/S
Note
no.
55 Derivative nancial instruments – continued
DKK 1,000 Market value Average market value
Positive Negative Positive Negative
31 Dec. 2022 2021 2022 2021 2022 2021 2022 2021
Currency contracts
Spot, purchase 88 70 226 130 488 190 480 307
Spot, sale 39 34 0 12 86 97 168 32
Forward transactions/
futures, purchase
21,109
19,757
71,072
5,376
49,042
16,152
24,671
3,024
Forward transactions/
futures, sale
2,613
8,580
1,601
10,159
8,621
9,403
14,750
8,351
Swaps 99,556 64,065 196,436 9,889 77,056 71,890 134,555 12,090
Options, acquired 0 111 5 0 9 70 3 0
Options, issued 5 0 0 111 3 0 9 70
Interest-rate contracts
Spot, purchase 1,121 137 537 75 4,073 562 2,418 318
Spot, sale 1,624 388 486 272 6,635 762 2,920 355
Forward transactions/
futures, purchase
1,917
2,023
6,789
538
5,474
2,155
12,830
2,221
Forward transactions/
futures, sale
9,728
1,501
3,088
2,229
24,617
4,850
5,690
1,954
Swaps 8,753 17,579 82,824 39,144 10,268 16,553 62,932 44,362
Options, acquired 1,497 33 58 1,054 969 23 441 1,762
Options, issued 157 1,503 1,373 33 678 2,165 915 35
Share contracts
Spot, purchase 754 1,397 540 259 5,117 8,862 1,402 1,179
Spot, sale 571 300 743 1,324 1,491 1,253 4,901 8,599
Forward transactions/
futures, purchase
166
0
22
0
382
0
10
0
Forward transactions/
futures, sale
32
0
141
0
13
2
372
0
Options, acquired 943 0 0 0 396 18 0 0
Options, issued 0 0 943 0 0 0 396 18
Total market value 150,673 117,478 366,884 70,605 195,418 135,007 269,863 84,677
OVERVIEW OF NOTES
NOTES
ANNUAL REPORT 2022 PAGE 109
Note
no.
56 Accounting estimates and judgments
General
In computing the book value of certain assets and liabilities, estimates have been made of
how future events will affect the value of the assets and liabilities on the balance sheet date.
-
The most important estimates concern the following areas:
• Calculation of expected losses on loans and other credit exposures
• Assessment of collateral security
• Valuation of intangible assets including goodwill
Calculation of expected losses on loans and other credit exposures
Expected impairment is computed as a combination of individual calculations for facilities
which the customer is expected to generate. In addition to the calculated impairment charges
which are based on probability-weighted scenarios, a management estimate is also allocated
exposures where automated impairment calculations are made on the basis of customer
ratings and a number of parametric values. The parametric values are determined on the basis
of historical data, including the risk of loss on different rating classes and the expected
percentage loss if a loss arises. The historical data are translated into forward-looking
These estimates comprise considerations regarding the industry, i.e. not the individual expo-
sure, and the macro-economic impact of the probability weightings used for calculating the
individual facilities. In 2022, the concern about the housing market, land prices and pig prices
and the general economic uncertainty resulting from the tightened monetary policy and
Russia’s invasion of Ukraine in particular have given rise to the management estimates for
The reader is referred to note 57 “Accounting policies etc.” under “Model for impairment of
expected credit losses on loans and other receivables etc.” for details of the calculation of
expected loss.
Assessment of collateral security
To reduce the risk of the individual exposures, the bank receives collateral security mainly
in the form of physical assets (with real property as the main form), securities etc. Material
estimates are involved in valuing the security.
A detailed description of security is provided in note 46 “Credit risks”.
PAGE 110 RINGKJØBING LANDBOBANK A/S
Fair value of unlisted nancial instruments
As part of its operations, the bank has acquired strategic shares in different sector compa-
nies. Strategic shares in sector companies are measured at fair value on the basis of available
information on transactions in the relevant company’s shares or, alternatively, by a valuation
-
ship, trading, shareholders’ agreements etc.
observable market data. This is the case, for example, with unlisted shares and certain bonds
-
ments” and “Bonds and shares” under “Accounting policies etc.” in note 57.
Valuation of goodwill
Goodwill is impairment-tested at least annually. This involves a degree of estimation in quan-
tifying the future income and determining the weighted average cost of capital (consisting of
the return on shareholders’ equity and the cost of loan capital) in line with presumed market
expectations.
See note 25 “Intangible assets” for further details on the impairment test.
57 Accounting policies etc.
General
The annual report was prepared in accordance with the provisions of the Danish Financial
Business Act.
The annual report is presented in Danish kroner (DKK).
Recognition and measurement – general
-
tages will accrue to the bank and the value can be measured reliably.
Liabilities are recognised in the balance sheet when they are probable and can be measured
reliably.
Income is recognised in the income statement as it is earned.
Expenses paid to earn the income for the year are recognised in the income statement, and
-
ments are also recognised in the income statement.
When measuring fair value etc. of bonds and shares, the three levels of the IFRS 13 hierarchy
are used as valuation categories:
• Level 1: Quoted prices in active markets for identical instruments, i.e. without changes in
form or composition, including listed shares and bonds.
• Level 2: Quoted prices in active markets for similar assets or other valuation methods where
Valuation is primarily based on generally recognised valuation techniques.
The following sections describe the criteria for recognition and the basis of measurement.
NOTES
Note
no.
56 Accounting estimates and judgments – continued
ANNUAL REPORT 2022 PAGE 111
Foreign currency
Assets and liabilities in foreign currency are converted to DKK at the exchange rate for the
currency published by the central bank of Denmark on the balance sheet date. Income and
expenses are converted continuously at the exchange rate on the transaction date.
Lease contracts (lessee)
Lease assets consist only of operating leases with the bank as lessee and concern primarily
rental contracts for properties used by the branch network (domicile properties) and a few
other assets.
agreements at 3-25 years. The lease assets are depreciated on a straight-line basis over the
expected periods of use of 3-25 years and the lease liabilities are repaid according to the
principle of annuities and measured at amortised cost.
The lease liabilities are discounted to present value using the bank’s incremental borrowing
-
lar to the term of the lease. When measuring the lease liability, the bank uses borrowing rates
of 1-2% for discounting future lease payments.
The bank has chosen not to recognise low-value asset leases and short-term leases in the
balance sheet. Lease payments for these leases are instead recognised in the income state-
ment.
Financial instruments – general
following sections on the individual items. The bank uses the date of payment as the date of
Derivative nancial instruments
-
sured at fair value on the balance sheet date.
Hedging transactions which, under the Danish FSA’s Executive Order on Financial Reports for
Credit Institutions and Investment Firms etc., are regarded as hedge accounting at fair value,
are recognised at fair value on the balance sheet date with respect to both the hedging instru-
Business combination
The acquisition method is used when new businesses are bought. Under this method, the
have not previously been booked in the acquired business, are measured at fair value on the
takeover date.
recognised as goodwill.
recognised as badwill under other operating income in the income statement.
Note
no.
57 Accounting policies etc. – continued
PAGE 112 RINGKJØBING LANDBOBANK A/S
Group
both balance sheet and activity compared to the bank.
The income statement
Interest income
Interest income is recognised by the effective interest method, under which interest income
includes the allocated portion of loan establishment fees etc., which are considered to be part
of the effective interest on the loan.
Negative interest income is recognised as interest expenses and negative interest expenses
are recognised as interest income. Negative interest is presented separately in the notes to
interest income and interest expenses.
On stage 3 loans which have been written down or off, the interest income relating to the
written-down part is entered under the item “Impairment charges for loans and receivables etc.”
Net fee and commission income
Fees and commission relating to loans and receivables are recognised as part of the book
value of loans and receivables. They are recognised as interest income in the income state-
ment over the term of the loans and receivables, as part of the effective interest rate on the
loans. See “Interest income” section above. Guarantee-related commission is carried to in-
come over the guarantee term. Income generated on performing a given transaction, including
securities and custodianship fees plus payment handling fees, is recognised as income when
the transaction has been completed.
Staff and administration expenses
Staff and administration expenses include salaries, pension costs, IT costs, etc.
Other operating expenses
Other operating expenses include contributions to the Guarantee Fund and the Resolution
Fund. Other operating expenses also include items which, by nature, are secondary to the
banking activities.
Impairment charges for loans and receivables etc.
This item includes losses and impairment charges for loans and losses and provisions on
guarantees etc. Losses and impairment charges for receivables from credit institutions are
also included.
Tax
Net deferred tax is calculated on the items which cover the temporary differences in accoun-
ting and booking of taxable income and expenses. Changes in the corporate tax rate will be
taken into account.
Corporation tax is paid in accordance with the Danish Tax Prepayment Scheme.
Core earnings
The bank uses the alternative performance measure “Core earnings”. Core earnings are used
are deemed to give a true and fair view of the actual banking operations. Overall, core
following from the development in the bank’s trading portfolio of securities (the securities
Core earnings and result for the portfolio.
NOTES
Note
no.
57 Accounting policies etc. – continued
ANNUAL REPORT 2022 PAGE 113
actual return in the form of interest and dividends from the portfolio and less the calculated
funding costs for the portfolio.
given in notes 13-18 on page 70.
The balance sheet
Receivables from credit institutions and central banks
Initial recognition takes place at fair value plus transaction costs, less establishment fees
etc., and subsequent measurement is at amortised cost. Please see the section “Derivative
Loans and other receivables
Initial recognition is at fair value plus transaction costs, less establishment fees etc., and
subsequent measurement is at amortised cost. Establishment fees etc. which are comparable
with ongoing interest payments, and thus deemed part of the effective interest on the loan,
are accrued over the life of the individual loan.
Leasing
rewards of ownership pertaining to an asset to the lessee.
Finance lease assets where the bank is the lessor are recognised as loans at the net invest-
ment in the lease contracts less depreciation (repayments) calculated according to the
annuity method over the lease term.
Income from the lease assets is recognised on the basis of the effective interest agreed in the
lease contracts and included under interest income in the income statement.
Model for impairment of expected credit losses on loans and other receivables etc.
cost are impaired by the expected credit losses. Under the same rules, provisions for expected
The impairment rules use a model based on expectations, which means earlier recognition
evidence of impairment had to exist before impairment charges could be and had to be recog-
nised.
losses are recognised in the income statement and reduce the value of the asset in the
balance sheet.
are recognised as liabilities.
Development stages for credit risk
must be impaired by the expected credit loss for a twelve-month period (stage 1). If the credit
-
cial asset must be impaired by the expected credit loss over the asset’s expected remaining
life (stage 2). If the instrument is found to be impaired (stage 3), the asset must be impaired
by the expected credit loss over its remaining life, and interest income must be recognised in
the income statement based on the effective interest method applied to the impaired amount.
Note
no.
57 Accounting policies etc. – continued
PAGE 114 RINGKJØBING LANDBOBANK A/S
The expected loss is calculated as a function of PD (the Probability of Default), EAD (Exposure
At Default) and LGD (Loss Given Default), into which forward-looking information representing
the management’s expectations for future development has been incorporated.
The EAD values for on-balance sheet items are determined as 100% of actual drawdowns,
-
tion of off-balance sheet items. The maturities of the facilities are determined based on their
of weakness, the actual term to maturity is used.
rating models, which were developed by the data centre Bankdata, and the bank’s internal
credit management.
Assessment of signicant increase in credit risk etc.
occurred on a downgrading in the bank’s internal rating of the customer corresponding to one
credit risk.
increase in credit risk. The Danish FSA’s rating class 2c in principle always characterises a
stage 3 are treated as credit-impaired on initial recognition.
The bank considers credit risk to be low when the bank’s internal rating of the customer
corresponds to the Danish FSA’s rating class 3 and the best part of 2a. The rest of 2a is only
considered low credit risk if payments are not overdue. Please also see the section on credit
assets with credit risk for the item “Loans and other receivables at amortised cost”.
Denition of credit-impaired and default
the following criteria:
fail to honour its obligations as agreed;
• The borrower is in breach of contract, for example by failing to meet its obligation to pay
interest and repayments or by repeated overdrafts;
• The bank has granted the borrower a relaxation of terms which would not have been
NOTES
Note
no.
57 Accounting policies etc. – continued
ANNUAL REPORT 2022 PAGE 115
in stage 2 if no losses are expected in the most probable scenario (weak stage 2).
requirements regulation (CCR).
performing as the bank has aligned the entry criteria for the three concepts. Only the exit and
The calculation of impairment for exposures in stages 1 and 2, except for exposures in weak
stage 2, is on a portfolio-based model, while impairment for the rest of the exposures is based
on a manual, individual assessment of relevant scenarios and probabilities that they will occur.
-
ties in models is allocated: See also note 56.
Calculation of expected losses
The portfolio-based calculation model is based on the bank’s rating of its customers in
different rating classes and an estimation of the risk for the individual classes. Calculations
are made in a set-up developed and maintained by the bank’s data centre Bankdata, supple-
mented by a forward-looking macroeconomic module developed and maintained by LOPI, the
Association of Local Banks, Savings Banks and Cooperative Banks in Denmark, and used as
the starting point for incorporating management’s expectations for the future.
The macroeconomic module is built around a number of regression models that determine
the historical connection between impairment charges for the year in a number of sectors and
industries and a number of explanatory macroeconomic variables. The regression models
are then supplied with estimates for the macroeconomic variables based on forecasts from
consistent sources such as the Danish Economic Councils, Danmarks Nationalbank and
others. The forecasts generally cover two years and include variables such as increase in
public spending, increase in GDP, interest etc. The expected impairment charges are thus
calculated up to two years ahead for the individual sectors and industries. For terms of more
than two years, a linear interpolation is applied between the impairment ratio for year 2 and
the impairment ratio for year 10. The model assumes that long-term equilibrium will exist in
the form of a normal impairment level. The calculated impairment ratios are then transformed
industries.
Practice for derecognising nancial assets from the balance sheet
Financial assets are derecognised fully or partly from the balance sheet when the exposure or
-
furnished as security for the exposure. For personal customers, the assessment is also based
charges: see note 21.
As a rule, the bank’s efforts to collect the assets continue after derecognition from the
reach a voluntary agreement with the customer, including renegotiation of terms or restruc-
turing of an enterprise. Debt recovery and petition for bankruptcy are not applied until other
steps have been tried.
Note
no.
57 Accounting policies etc. – continued
PAGE 116 RINGKJØBING LANDBOBANK A/S
Bonds and shares
Bonds at fair value
Bonds listed on a stock exchange are measured at fair value determined on the basis of the
closing price on the balance sheet day (level 1).
Unlisted bonds are measured at fair value, computed on the basis of price information from
the issuer (levels 2 and 3).
Shares etc.
Shares listed on a stock exchange are measured at fair value determined on the basis of the
closing price on the balance sheet day (level 1).
Unlisted shares are measured at fair value, computed on the basis of the price of a trans-
action between independent parties. Measurement is based on available information on
capitalisation calculations (levels 2 and 3).
For unlisted shares in the form of shares in companies owned by the sector where the shares
are distributed, the redistribution is considered to be the primary market for the shares. Fair
value is determined at the redistribution price and the shares are included as level 2 assets.
Unlisted shares for which a reliable fair value cannot be determined are measured at cost less
impairment charges (level 3).
The management actively considers the fair value computations.
Investments in group undertakings and associated companies
Investments in group undertakings and associated companies are recognised and measured
by the equity method, which means that the investments are measured at the proportionate
share of the entity’s equity value.
are recognised in the income statement.
Net revaluation of investments in group undertakings is transferred to the net revaluation
exceeds the cost price. Write-downs are recognised in and deducted from any positive statu-
tory reserves as long as a reserve for offsetting exists.
Group undertakings and associated companies with negative equity values are recognised at
be recognised.
Assets linked to pooled schemes
All pooled assets and deposits are recognised as separate balance sheet items.
Returns on pooled assets and distributions to participants are posted under the item “Value
Intangible assets
Goodwill
Goodwill acquired in connection with acquisitions is recognised at cost less cumulative
impairment charges.
Goodwill is not amortised but the value is impairment tested at least once a year. Goodwill
is written down to the recoverable amount through the income statement if the net asset’s
carrying amount exceeds the higher of net sales price and value in use, which corresponds
NOTES
Note
no.
57 Accounting policies etc. – continued
ANNUAL REPORT 2022 PAGE 117
Customer relationships
The value of customer relationships acquired in connection with acquisitions is recognised
at cost and amortised on a straight-line basis over the estimated useful life, which will not
exceed ten years. The useful life depends on customer loyalty, and is reassessed annually.
Changes in amortisation as a result of changes in useful life are recognised prospectively as a
change in accounting estimates.
Customer relationships are impairment tested when there is evidence of impairment. Impair-
ment charges for customer relationships are recognised in the income statement and not
subsequently reversed.
Land and buildings
Land and buildings cover the three items “Investment properties”, “Domicile properties” and
“Domicile properties (leasing)”. The properties which house the bank’s branches are included
under domicile properties, while other properties are considered to be investment properties.
Investment properties are included in the balance sheet at fair value, computed by the return
method. Ongoing changes in the value of investment properties are recognised in the income
statement.
Domicile properties are included in the balance sheet at reassessed value, which is the fair
value computed by the return method less cumulative depreciation and any impairment loss.
Depreciation is calculated on the basis of an expected useful life of 50 years, computing de-
preciation at cost plus or minus revaluation less scrap value. Depreciation and losses due to
impairment are recognised in the income statement, while increases in reassessed value are
recognised in total comprehensive income in shareholders’ equity under the item “Provisions
for revaluation” unless the increase corresponds to a reduction in value which was previously
recognised in the income statement.
Other tangible assets
Other tangible assets, including operating equipment and improvements to rented premises,
are recognised in the balance sheet at cost less cumulative depreciation and write-downs for
any loss due to impairment.
years for operating equipment and thirty years for improvements to rented premises, on the
basis of depreciation computed at cost less scrap value. Depreciation and losses due to
impairment are recognised in the income statement.
Temporary assets
Temporary assets comprise assets taken over as a result of termination of customer expo-
sures, the intention being to sell off the assets as soon as possible. The item also includes
domicile properties for sale. Temporary assets are included at cost on transfer and will
subsequently be written down to a possibly lower realisation value.
losses in subsequent measurements are recognised in the income statement under the items
they concern.
Other assets
Other assets include interest and commission receivables as well as the positive market value
Note
no.
57 Accounting policies etc. – continued
PAGE 118 RINGKJØBING LANDBOBANK A/S
Tax
Current tax assets and current tax liabilities are recognised in the balance sheet as tax calcu-
A deferred tax liability is allocated under the item “Provisions for deferred tax”.
A deferred tax asset is booked under the item “Deferred tax assets” following a prudent
assessment of the asset’s value.
The effect of changes in the corporate tax rate is recognised in “Deferred tax
assets”/“Provisions for deferred tax”.
Debt to credit institutions and central banks/Deposits and other debt/Deposits in pooled
schemes/Issued bonds at amortised cost/Subordinated debt
respect to hedge accounting.
Other liabilities
Other liabilities include interest and commission payable and the negative market value of
Provisions for liabilities
“Provisions for pensions and similar liabilities”, “Provisions for losses on guarantees” and
“Other provisions for liabilities” all come under the heading of Provisions for liabilities.
Unfunded pension liabilities for former management members are itemised in the balance
sheet under the item “Provisions for pensions and similar liabilities”. The liability is calculated
as the capitalised value of the expected future pension payments.
in accordance with the IFRS 9-compatible impairment rules: See the section “Model for impair-
ment of expected credit losses on loans and other receivables etc.”
Provisions are also made for other guarantees if it is probable that the guarantee will be called
and the amount of the liability can be reliably determined.
Contingent liabilities/guarantees
The bank’s outstanding guarantees are given in the notes under the item “Contingent liabilities”.
Statement of capital
Phasing in IFRS 9 impairment rules concerning capital
The bank has decided to take advantage of the transition programme under the capital
requirements regulation (CRR). Thus both the static and the dynamic components of the IFRS
requirements. The negative effect of the transition to the IFRS 9 impairment rules will thus not
take full effect on total capital until the beginning of 2025.
Main and key gures (page 3)
the basis of 2022: 27,553,139 shares, and 2021: 28,431,916 shares, and 2020: 29,067,721
shares, and 2019: 29,228,321 shares and 2018: 29,906,383 shares.
NOTES
Note
no.
57 Accounting policies etc. – continued
ANNUAL REPORT 2022 PAGE 119
Statements in the nancial review (pages 6-25)
-
bank’s statement of the alternative measure of performance “Core earnings” and proforma
of the alternative performance measure “Core earnings”.
The core earnings for 2022, 2021, 2020 and 2019, and the core earnings from the third quarter
Balance sheet items and contingent liabilities, as well as capital ratios, in the quarterly over-
views of “Balance sheet items and contingent liabilities” and “Statement of capital” for 2018
quarter of 2018 are for the post-merger entity.
Core earnings per DKK 1 share (page 12)
The bank’s alternative performance measure “Core earnings” is used as the value of earnings.
2019-2022 the actual core earnings for 2019-2022 for the merged bank were used.
The following numbers of shares were used in the calculation: End of 2013: 23,900,000
shares, end of 2014: 23,350,000 shares, end of 2015: 22,850,000 shares, end of 2016:
22,350,000 shares, end of 2017: 21,812,000 shares, end of 2018: 29,906,383 shares, end of
2019: 29,228,321 shares, end of 2020: 29,067,721 shares, end of 2021: 28,431,916 shares, and
end of 2022: 27,553,139 shares.
The number of shares is calculated based on transactions made.
Note
no.
57 Accounting policies etc. – continued
PAGE 120 RINGKJØBING LANDBOBANK A/S
FIVE-YEAR MAIN FIGURES
Summary (DKK 1,000)
2022 2021 2020 2019 2018
Income statement
Interest income 1,865,848 1,459,846 1,373,215 1,299,449 1,031,664
Interest expenses 185,174 103,080 120,910 131,144 105,169
Net interest income 1,680,674 1,356,766 1,252,305 1,168,305 926,495
Dividends from shares etc. 99,637 77,109 71,241 70,409 27,619
Fee and commission income 1,038,855 939,219 814,821 833,082 538,862
Fee and commission expenses 91,602 91,183 85,545 78,541 48,293
Net interest and fee income 2,727,564 2,281,911 2,052,822 1,993,255 1,444,683
+73,493 +163,127 +126,079 +168,906 +179,833
Other operating income 2,055 5,490 2,054 13,582 5,770
Staff and administration expenses 870,847 790,374 765,933 778,458 704,778
Amortisation, depreciation and write-
downs on intangible and tangible assets
33,035
35,793
29,241
37,959
22,690
Other operating expenses 6,607 7,643 8,110 3,934 2,816
Impairment charges for loans
and receivables etc.
-12,450
-78,629
-233,348
-110,172
-86,955
Results from investments in associated
companies and group undertakings
-37
+22
-13
+201
+80
Prot before tax 1,880,136 1,538,111 1,144,310 1,245,421 813,127
Tax 385,239 308,846 224,596 267,156 149,935
Net prot for the year 1,494,897 1,229,265 919,714 978,265 663,192
ANNUAL REPORT 2022 PAGE 121
Summary (DKK 1,000)
End of 2022 End of 2021 End of 2020 End of 2019 End of 2018
Balance sheet
Assets
Cash in hand and deposits
with credit institutions
and central banks
5,526,437
3,675,561
4,035,237
3,354,295
3,823,860
Loans and other receivables at
amortised cost
48,341,941
41,179,255
36,241,166
35,465,416
33,350,334
Securities 8,120,126 8,223,754 8,035,251 8,076,548 6,906,742
Assets linked to pooled schemes 4,972,840 5,537,863 4,700,080 4,276,344 3,786,476
Intangible assets 1,043,163 1,062,672 1,034,838 1,049,838 1,064,838
Tangible assets 235,310 214,631 233,536 228,936 266,265
Other assets 739,764 463,652 582,021 489,517 452,013
Total assets 68,979,581 60,357,388 54,862,129 52,940,894 49,650,528
Liabilities and equity
Debt to credit institutions and
central banks
3,567,758
2,030,175
2,448,918
2,172,765
1,916,476
Deposits and other debt 43,726,938 38,202,186 34,938,565 33,851,493 33,206,095
Deposits in pooled schemes 4,972,840 5,537,863 4,700,080 4,276,344 3,786,476
Issued bonds 4,255,498 2,961,422 2,361,796 2,212,709 1,428,024
Other liabilities 1,034,550 730,121 592,837 533,417 599,966
Provisions for liabilities 90,709 128,443 124,908 83,433 76,327
Subordinated debt 2,036,526 2,044,505 1,549,150 2,200,857 1,448,474
Share capital 28,380 29,068 29,228 29,662 30,994
Reserves 9,266,382 8,693,605 8,116,647 7,580,214 7,157,696
Total shareholders’ equity 9,294,762 8,722,673 8,145,875 7,609,876 7,188,690
Total liabilities and equity 68,979,581 60,357,388 54,862,129 52,940,894 49,650,528
Contingent liabilities etc.
Contingent liabilities 7,569,679 10,270,428 9,811,830 9,664,674 7,829,417
Irrevocable credit undertakings 84,055 781,832 0 281,000 13,531
Total contingent liabilities etc. 7,653,734 11,052,260 9,811,830 9,945,674 7,842,948
PAGE 122 RINGKJØBING LANDBOBANK A/S
FIVE-YEAR KEY FIGURES
2022 2021 2020 2019 2018
Capital ratios:
Total capital ratio % 21.6 22.3 21.1 20.0 18.4
Tier 1 capital ratio % 17.4 17.6 17.5 14.7 14.6
MREL capital ratio % 28.9 27.8 26.7 27.3 24.9
Earnings:
Return on equity before tax % 20.9 18.2 14.5 16.8 14.8
Return on equity after tax % 16.6 14.6 11.7 13.2 12.1
Income/cost ratio DKK 3.04 2.69 2.10 2.34 1.99
Cost/income ratio % 31.1 33.6 36.2 38.0 43.3
Return on assets % 2.2 2.0 1.7 1.8 1.3
Market risk:
Interest rate risk % 0.7 0.4 1.1 0.9 1.0
Foreign exchange position % 1.1 1.5 0.1 1.4 1.1
Foreign exchange risk % 0.0 0.0 0.0 0.0 0.0
Liquidity risk:
Liquidity Coverage Ratio (LCR) % 187.9 175.8 207.3 203.5 183.3
Net Stable Funding Ratio (NSFR)* % 118.9 116.2 - - -
Loans and impairments thereon
relative to deposits
%
103.8
99.0
96.7
98.1
95.5
Credit risk:
Loans relative to shareholders’ equity 5.2 4.7 4.4 4.7 4.6
Growth in loans for the year % 17.5 13.5 2.2 6.3 72.9
(Proforma growth in loans in 2018: 7.7%)
Total large exposures % 118.0 109.8 99.8 121.0 106.0
Cumulative impairment ratio % 4.0 4.2 4.6 4.3 4.7
Impairment ratio for the year % 0.02 0.15 0.48 0.21 0.20
Proportion of receivables at reduced interest % 0.1 0.2 0.5 0.4 0.5
Share return:
Earnings per share DKK 5,340.4 4,276.1 3,155.6 3,310.7 2,486.5
Book value per share
DKK 33,734 30,679 28,029 26,036 24,068
Dividend per share
DKK 700 700 700 1,100 1,000
Market price relative to earnings
per share
17.8
20.5
17.6
15.5
13.7
Market price relative to book value
per share
2.81
2.86
1.98
1.97
1.41
Comparative gures are only stated for the years when the key gure has applied.
Calculated on the basis of a denomination of DKK 100 per share.
Calculated on the basis of number of shares in circulation at the end of the year.
Calculated on the basis of the average number of shares. The average number of shares is calculated as a simple average
of the shares at the beginning of the year and at the end of the year.
ANNUAL REPORT 2022 PAGE 123
Denitions of the ofcial key gures/ratios etc. from the Danish FSA
Total capital ratio
Total capital in percent of total risk exposure.
Tier 1 capital ratio
Tier 1 capital in percent of total risk exposure.
MREL capital ratio*
MREL capital in percent of total risk exposure.
Return on equity before tax
simple average of the shareholders’ equity at the beginning of the year and at the end of the year.
Return on equity after tax
simple average of the shareholders’ equity at the beginning of the year and at the end of the year.
Income/cost ratio
Income for the year divided by expenses for the year including impairment charges for loans and other receivables etc.
Cost/income ratio
Total expenses etc. in percent of total core income.
Return on assets
Interest rate risk
Interest rate risk as a percentage of tier 1 capital.
Foreign exchange position
Foreign exchange indicator 1 as a percentage of tier 1 capital.
Foreign exchange risk
Foreign exchange indicator 2 as a percentage of tier 1 capital.
Liquidity Coverage Ratio (LCR)
Net Stable Funding Ratio (NSFR)
The ratio of available stable funding, which includes deposits and shareholders’ equity, to the required stable funding.
Loans and impairments thereon relative to deposits
Loans plus impairments thereon in percent of deposits.
Loans relative to shareholders’ equity
Loans/shareholders’ equity.
Growth in loans for the year
Growth in loans from the beginning of the year to the end of the year, in percent
(excluding reverse repo transactions).
Total large exposures
The total sum of the 20 largest exposures as a percentage of common equity tier 1.
Cumulative impairment ratio
Impairment charges for loans and provisions for losses on guarantees etc. as a percentage of loans plus impair-
ment charges for loans plus guarantees plus provisions for losses on guarantees etc.
Impairment ratio for the year
Impairment charges for the year as a percentage of loans plus impairment charges for loans plus guarantees plus
provisions for losses on guarantees etc.
Proportion of receivables at reduced interest
Proportion of receivables at reduced interest before impairment charges as a percentage of loans plus impairment
charges for loans plus guarantees plus provisions for losses on guarantees etc.
Earnings per share
Book value per share
Shareholders’ equity/share capital excluding own shares.
Dividend per share
Proposed dividend/share capital.
Market price relative to earnings per share
Market price/earnings per share.
Market price relative to book value per share
Market price/book value per share
See page 122.
PAGE 124 RINGKJØBING LANDBOBANK A/S
ANNUAL REPORT 2022 PAGE 125
Page
118 Shareholders’ committee
120 Board of directors
130 General management
132 Company information
133 Company announcements
134 Financial calendar
137 The bank’s branches
Page
126 Shareholders' committee
128 Board of directors
140 General management
142 Company information
143 Shareholder relations
144 Company announcements
146 Financial calendar
148 The bank’s branches
OTHER INFORMATION (PART OF THE MANAGEMENT'S REVIEW)
PAGE 126 RINGKJØBING LANDBOBANK A/S
SHAREHOLDERS' COMMITTEE
Shareholders’ committee
Name Position Home town Born
Kristian Skannerup Manufacturer Tim 14 June 1959
chairman of the
shareholders' committee
deputy chairman of the
shareholders’ committee
Mette Bundgaard Police superintendent No 3 November 1966
Dennis Conradsen General Manager Frederikshavn 26 June 1984
Thomas Sindberg Hansen Grocer Kloster 12 December 1978
Kim Jacobsen Manager Aalborg 25 September 1969
Morten Jensen* Attorney-at-law (Supreme Court) Dronninglund 31 October 1961
Carl Erik Kristensen Manager Hvide Sande 28 January 1978
Niels Erik Burgdorf Madsen Manager Ølgod 25 October 1959
Dorte Zacho Martinsen Self-employed business consultant Holstebro 2 May 1972
ANNUAL REPORT 2022 PAGE 127
Name Position Home town Born
Karsten Sandal Manager Ølstrup 25 June 1969
Lise Kvist Thomsen Manager Virum 24 May 1984
John Christian Aasted Manager Aalborg 12 February 1961
* Member of the board of directors
PAGE 128 RINGKJØBING LANDBOBANK A/S
Board of directors
Martin Krogh Pedersen
CEO
Born on 7 June 1967
Chairman of the board of directors
Board committees:
Remuneration committee,
committee chairman
Nomination committee,
committee chairman
Audit committee, committee member
Risk committee, committee chairman
Seniority:
Member of the board of directors since
27 April 2011
End of current term of ofce: 2023
Independence assessment:
Independent
Professional competences:
Has special competences, knowledge and
experience within the areas of the business
model, credit risks, market risks, liquidity
risks, other risks including risks of money
and compliance, budgets, accounting and
auditing, capital structure, insurance risks,
and has general managerial experience.
Other managerial activities
– member of the management of:
• KP Group Holding ApS and two wholly
owned Danish subsidiaries
• MHKP Holding ApS and two wholly owned
Danish subsidiaries
• PcP Corporation A/S and one wholly
owned Danish subsidiary
• The supplementary pension fund for
• Techo A/S
Mads Hvolby
Chartered surveyor
Born on 9 December 1956
Deputy chairman of the board of directors
Board committees:
Remuneration committee,
committee member
Nomination committee, committee member
Audit committee, committee member
Risk committee, committee member
Seniority:
Member of the board of directors since
7 June 2018
End of current term of ofce: 2026
Independence assessment:
Independent
Professional competences:
Has special competences, knowledge and
experience within the areas of the busi-
ness model, credit risks, operational risks,
budgets, accounting and auditing, capital
structure, insurance risks and risk manage-
ment, and has general managerial experi-
ence, managerial experience from other
Other managerial activities
– member of the management of:
Erhvervsansvarsforsikring
• M. Hvolby Holding ApS
• NB Partnere I/S
BOARD OF DIRECTORS
BOARD OF DIRECTORS
ANNUAL REPORT 2022 PAGE 129
Jens Møller Nielsen
Former manager
Born on 25 August 1956
Deputy chairman of the board of directors
Board committees:
Remuneration committee, committee
member
Nomination committee, committee member
Audit committee, committee chairman
Risk committee, committee member
Seniority:
Member of the board of directors since
22 April 2015
End of current term of ofce:
2023
Independence assessment:
Independent
Professional competences:
Has special competences, knowledge and
experience within the areas of the business
model, credit risks, market risks, liquidity
risks, operational risks, other risks including
-
good practice and compliance, budgets,
accounting and auditing, capital structure,
insurance risks, risk management and has
general managerial experience and legal
insight. As the chairman of the bank’s audit
-
tences within accounting or auditing.
Other managerial activities
– member of the management of:
• The independent institution Generator
PAGE 130 RINGKJØBING LANDBOBANK A/S
Morten Jensen
Attorney-at-law (Supreme Court)
Dronninglund
Born on 31 October 1961
Board committees:
Nomination committee,
committee member
Risk committee, committee member
Seniority:
Member of the board of directors since
7 June 2018
End of current term of ofce:
2026
Independence assessment:
Independent
Professional competences:
Has special competences, knowledge
and experience within the areas of credit
risks, operational risks, risks of outsour-
cing, other risks including risks of money
and compliance, budgets, accounting and
auditing, risk management, general mana-
gerial experience and legal insight and
within sections of the business model and
liquidity risk areas.
Other managerial activities
– member of the management of:
• AEC-Fonden
• Andersen & Aaquist A/S
• ANS-Fundacion Fonden
• Christine og Poul Goos Fond for Fri
Forsikring
• Dansk Facility Service Holding A/S and two
wholly owned Danish subsidiaries
• DCH A/S and one wholly owned Danish
subsidiary
Kommanditaktieselskab as the main
company and 22 Danish feeder companies
A/S)
• Ergonomic Solutions International Ltd and
two wholly owned Danish subsidiaries
• Fonden for Dronninglund Kunstcenter
• Havnens Fiskebod A/S
• JenSchu K/S
• Lundagergaard Holding ApS and one wholly
owned Danish subsidiary
• Mesterbyg Klokkerholm A/S
• Micodan Holding A/S and four wholly owned
Danish subsidiaries
• PM Energi A/S
• Saga Shipping A/S
• Toma Facility Danmark A/S
• Vibeke Emborg Holding ApS and one wholly
owned Danish subsidiary
BOARD OF DIRECTORS
ANNUAL REPORT 2022 PAGE 131
Jon Steingrim Johnsen
CEO
Born on 17 April 1968
Board committees:
Nomination committee, committee member
Risk committee, committee member
Seniority:
Member of the board of directors since
22 February 2017
End of current term of ofce:
2025
Independence assessment:
Independent
Professional competences:
Has special competences, knowledge and
experience within the areas of the busi-
ness model, market risks, liquidity risks,
operational risks, IT risks, risks of outsour-
cing, other risks including risks of money
and compliance, budgets, accounting and
auditing, capital structure, insurance risks,
risk management, general managerial ex-
perience, managerial experience from other
within sections of the credit risk area.
Other managerial activities
– member of the management of:
• Pensionskassen for Farmakonomer
• Pensionskassen for Sundhedsfaglige
• PKA+ Pension Forsikringsselskab A/S
• 17 Danish investment companies wholly
owned by the above company and four
pension funds – either individually or
co-owned by several of them
• The following operational Danish group
undertakings which are wholly or partly
owned by the above four pension funds
– either individually or co-owned by several
of them:
• Pensionskassernes Administration A/S
• Forca A/S
• AIP Management P/S and Institutional
Holding P/S
• IIP Denmark P/S, IIP Denmark GP ApS
and 5 underlying Danish fonds
In addition, a member of the governing
body of the following interest organisa-
tions:
• Axcelfuture
• Forsikring & Pension
• Institutional Investors Group on Climate
Change (IIGCC)
PAGE 132 RINGKJØBING LANDBOBANK A/S
Anne Kaptain
Born on 14 March 1980
Board committees:
Nomination committee, committee member
Risk committee, committee member
Seniority:
Member of the board of directors since
2 March 2022
End of current term of ofce:
2026
Independence assessment:
Independent
Professional competences:
Has special competences, knowledge and
experience within the areas of insurance
risks, general managerial experience and
legal insight and within sections of the busi-
ness model and credit risk areas.
Other managerial activities
– member of the management of:
• Kaptain Invest ApS
• Scandinavian Medical Solutions A/S
Jacob Møller
CEO
Born on 2 August 1969
Board committees:
Nomination committee, committee member
Audit committee, committee member
Risk committee, committee member
Seniority:
Member of the board of directors since
26 April 2017
End of current term of ofce:
2023
Independence assessment:
Independent
Professional competences:
Has special competences, knowledge and
experience within the areas of budgets,
accounting and auditing, capital structure,
insurance risks, general managerial experi-
ence and legal insight and within sections of
the business model, credit risk and market
risk areas.
Other managerial activities
– member of the management of:
• Goenergi A/S
• Green Power Denmark
• Iron Fonden and three wholly owned
Danish subsidiaries
• N H Vind 16 ApS
• RAH A.M.B.A and two wholly owned
Danish subsidiaries
• RAH Net A/S
• Scanenergi Holding A/S and three wholly
owned Danish subsidiaries
owned Danish subsidiary
BOARD OF DIRECTORS
ANNUAL REPORT 2022 PAGE 133
Lone Rejkjær Söllmann
Finance manager
Tarm
Born on 26 January 1968
Board committees:
Nomination committee, committee member
Risk committee, committee member
Seniority:
Member of the board of directors since
26 April 2017
End of current term of ofce:
2026
Independence assessment:
Independent
Professional competences:
Has special competences, knowledge and
experience within the areas of budgets, ac-
counting and auditing and within sections of
the business model and credit risk areas.
Other managerial activities
– member of the management of:
• Tama ApS
Dan Junker Astrup
Credit manager
Born on 20 January 1989
Elected by the employees
Board committees:
Nomination committee, committee member
Risk committee, committee member
Seniority:
Member of the board of directors since
1 March 2015
End of current term of ofce:
2023
Independence assessment:
Not independent
Professional competences:
Has special competences, knowledge and
experience within the areas of the business
model, credit risks, market risks, budgets,
accounting and auditing, capital structure,
risk management, general managerial expe-
rience and legal insight.
No other managerial activities
PAGE 134 RINGKJØBING LANDBOBANK A/S
Arne Ugilt
Credit consultant
Born on 6 August 1956
Elected by the employees
Board committees:
Nomination committee, committee member
Risk committee, committee member
Seniority:
Member of the board of directors since
7 June 2018
End of current term of ofce:
2023
Independence assessment:
Not independent
Professional competences:
Has special competences, knowledge and
experience within the areas of the business
model, credit risks and market risks.
No other managerial activities
Gitte E.S.H. Vigsø
Holstebro
Born on 24 April 1976
Elected by the employees
Board committees:
Remuneration committee,
committee member
Nomination committee, committee member
Risk committee, committee member
Seniority:
Member of the board of directors since
1 March 2011
End of current term of ofce:
2023
Independence assessment:
Not independent
Professional competences:
Has special competences, knowledge and
experience within the areas of operational
risks, risks of outsourcing, other risks, in-
within good practice and compliance and
legal insight and within sections of the busi-
ness model and credit risk areas.
No other managerial activities
BOARD OF DIRECTORS
ANNUAL REPORT 2022 PAGE 135
Finn Aaen
Business customer adviser
Aalborg
Born on 22 April 1970
Elected by the employees
Board committees:
Nomination committee, committee member
Risk committee, committee member
Seniority:
Member of the board of directors since
7 June 2018
End of current term of ofce:
2023
Independence assessment:
Not independent
Professional competences:
Has special competences, knowledge and
experience within sections of the business
model and credit risk areas.
No other managerial activities
The board members’ other managerial activities are stated as at the date of closing the accounts.
PAGE 136 RINGKJØBING LANDBOBANK A/S
BOARD OF DIRECTORS
Board committees
The board of directors has appointed a remuneration committee, a nomination committee, an audit
committee and a risk committee. Information on the individual board committees is provided below.
Remuneration committee
The bank’s board of directors has agreed a brief for the remuneration committee which includes
resources, reporting and minutes of meetings, publication, evaluation and self-assessment, as well as
changes to its brief.
The remuneration committee is, as a minimum, responsible for the following tasks:
• Negotiation with the general management on remuneration of the general management
• Undertaking the preparatory work for the board of directors’ decisions on remuneration, including
the remuneration policy and any other associated decisions that may affect the bank’s risk manage-
ment and, in that connection, undertaking any tasks and obligations following from the legislation,
including:
• Advising the board of directors on the development of the remuneration policy, assisting the
board with monitoring compliance with it, assessing whether the remuneration policy needs to
be updated and, if necessary, proposing changes to the policy including:
• Drafting the remuneration policy for approval by the board of directors before recommenda-
tion for approval by the general meeting
• Drafting and recommending guidelines for the board of directors’ monitoring of compliance
with the remuneration policy etc. for approval by the board of directors, including ensuring
that compliance with the policy is monitored
• Monitoring remuneration of the management of the part of the organisation in charge of
monitoring the limits of risk-taking, and the management of the part of the organisation
otherwise in charge of monitoring and auditing, including the management of the com-
pliance function and the chief internal auditor
• Ensuring that the information on the bank’s remuneration policy and practice presented to the
general meeting is adequate
• Assessing whether the bank’s procedures and systems are adequate and allow for the bank’s
risks associated with the management of capital and liquidity in relation to the remuneration
structure
• Ensuring that the remuneration policy and practice are in accordance with and promote sound
and long-term interests
• Ensuring that independent control functions and other relevant functions are included to the
extent necessary for the performance of such tasks and, if necessary, seeking external advice
• In its preparatory work, and with reference to the adopted remuneration policy, the committee must
protect the bank’s long-term interests, including those of shareholders, other investors and the
public
• Other remuneration-related tasks, including supporting the board of directors in its task of identify-
• Tasks in connection with the bank’s compliance with the remuneration policy under the special
requirements for housing
In addition, the Recommendations on Corporate Governance require the remuneration committee to
undertake at least the following preparatory tasks:
• Prior to approval by the shareholders' committee, the remuneration committee must submit pro-
posals for remuneration of members of the bank's board of directors and shareholders' commit-
tee to the board and the shareholders' committee, ensure that the remuneration is in accordance
with the bank's remuneration policy and recommend a remuneration policy applying to the bank in
general
• Assist with preparing the annual remuneration report for approval by the board of directors before
recommendation for a consultative vote by the general meeting.
ANNUAL REPORT 2022 PAGE 137
Nomination committee
The bank’s board of directors has agreed a brief for the nomination committee which includes provi-
authority and resources, reporting and minutes of meeting, publication, evaluation and self-assessment,
as well as changes to the brief.
The nomination committee is, as a minimum, responsible for the following tasks:
• Preparing proposals and recommendations for the election and re-election of members to the
bank’s shareholders’ committee and board of directors, including considering proposals for election
and re-election, recruiting candidates for the bank’s general management, including describing all
process of recruitment of candidates for the board of directors is carried out on the basis of discus-
sions in the committee
• Regularly and at least once a year assessing the board of directors’ size, structure, composition and
results in relation to its tasks and reporting and making recommendations to the full board of direc-
tors for possible changes
• In partnership with the chair of the committee, undertaking the annual board evaluation, including
assessing the individual board members’ competences, knowledge and experience, assessing
whether the full board of directors has the required combination of knowledge, professional skills,
diversity and experience, and whether individual members meet the requirements of section 64 of
the Danish Financial Business Act, and reporting and making recommendations to the full board
of directors for possible changes, including a possible action plan for the future composition and
Danish Financial Business Act. The nomination committee must assess at least once a year
whether it agrees with the individual’s assessment
• Regularly and at least once a year evaluating the bank’s general management, including its size,
structure, composition and results, and making recommendations to the board of directors and
• Regularly reviewing the board of directors’ policy for selection and appointment of members to
the general management if such a policy has been prepared, and making recommendations to the
board of directors (currently there is no such policy)
• Setting a target percentage of the under-represented gender on the board of directors and preparing
• Preparing a policy for diversity on the board of directors.
PAGE 138 RINGKJØBING LANDBOBANK A/S
Audit committee
complexity and Mr Nielsen’s education, professional experience and experience on the bank’s board of
directors and board committees, including the audit committee, the bank’s board of directors considers
Act on Approved Auditors and Audit Firms.
The bank’s board of directors has agreed a brief for the audit committee which includes provisions on
and self-assessment.
The audit committee is, as a minimum, responsible for the following tasks:
process
-
pose of ensuring integrity
• Monitoring whether the bank’s internal control system, internal audit and risk management systems
• Monitoring and verifying the auditor’s independence, pursuant to sections 24-24c of the Act on
Approved Auditors and Audit Firms and to Article 6 of Regulation (EU) no. 537/2014 of the European
interest entities, and approving the auditor’s provision of services other than audit, pursuant to
Article 5 of the Regulation
• Being in charge of the procedure for selecting and recommending an auditor for election, pursuant
to Article 16 of Regulation (EU) no. 537/2014 of the European Parliament and of the Council of 16
Risk committee
The bank’s board of directors has agreed a brief for the risk committee which includes provisions on
resources, reporting and minutes of meetings, publication, evaluation and self-assessment, as well as
changes to its brief.
The risk committee is, as a minimum, responsible for the following tasks:
• Assisting the board of directors with ensuring that the board’s risk strategy is implemented correctly
in the organisation
-
• Assessing whether the incentive components of the bank’s remuneration structure take account of
the bank’s risks, capital, liquidity and the probability and time of payment of remuneration (under
the bank’s remuneration policy, no forms of incentive components are used for the bank’s board of
directors and general management)
• Conducting a review of the quarterly credit reports.
Regarding all four committees in general, in cases where a committee consists of the bank’s full
board of directors or where the full board of directors participates in a committee meeting, both the
committee and the board of directors’ proceedings may take place simultaneously.
GENERAL MANAGEMENT
BOARD OF DIRECTORS
ANNUAL REPORT 2022 PAGE 139
Board of directors – competences
The members of the bank’s board of directors together possess all the competences required for the
overall management of the bank on the basis of the business model for the bank’s operations.
The members of the bank’s full board of directors thus possess competences concerning:
• The business model and relevant related matters
• Credit risks and relevant related matters
• Market risks and relevant related matters
• Liquidity risks and relevant related matters
• Operational risks and relevant related matters
• IT risks and relevant related matters
• Risks of outsourcing
practice and compliance
• Budgets, accounting and auditing
• Capital structure including capital adequacy and solvency requirement
• Insurance risks
• Risk management including interdisciplinary risk management
• General managerial experience
See also pages 128-135 for the special competences of the individual board members.
Holdings of Ringkjøbing Landbobank shares by members of the board
of directors
shares by members of the board of directors.
PAGE 140 RINGKJØBING LANDBOBANK A/S
General management
John Bull Fisker
Born on 3 December 1964
CEO
Seniority:
Employed by the bank on 1 January 1995
Member of the general management since 1 May 1999
CEO since 1 May 2012
On the board of directors of the following companies etc.
• Chairman of Letpension Forsikringsformidling A/S, Copenhagen
• Deputy chairman of Foreningen Bankdata, Fredericia
• Deputy chairman of BI Holding A/S, Copenhagen
• Board member of PRAS A/S, Copenhagen
• Board member of the supplementary pension fund for employees
Claus Andersen
Born on 19 April 1966
General manager
Seniority:
Employed by the bank on 7 June 2018
Member of the general management since 7 June 2018
On the board of directors of the following companies etc.
• Board member of Bokis A/S, Copenhagen
• Board member of DLR Kredit A/S, Copenhagen
• Board member of the Association of Local Banks, Savings Banks and
Cooperative Banks in Denmark, Copenhagen
• Board member of the Education Fund of the Association of Local Banks,
Savings Banks and Cooperative Banks in Denmark, Copenhagen
GENERAL MANAGEMENT
ANNUAL REPORT 2022 PAGE 141
Jørn Nielsen
Born on 9 November 1972
General manager
Seniority:
Employed by the bank on 1 August 1991
Member of the general management since 1 September 2015
No other managerial activities
Carl Pedersen
Born on 28 December 1962
General manager
Seniority:
Employed by the bank on 7 June 2018
Member of the general management since 7 June 2018
On the board of directors of the following companies etc.
• Board member of Byggesocietetet Aalborg, Aalborg
The board members’ other managerial activities are stated as at the date of closing the accounts.
Holdings of Ringkjøbing Landbobank shares by the general management
shares by members of the general management.
PAGE 142 RINGKJØBING LANDBOBANK A/S
Ringkjøbing Landbobank Aktieselskab
Torvet 1
Founded: 1886
Phone: +45 9732 1166
Telefax: +45 7624 4913
E-mail: post@landbobanken.dk
Website: www.landbobanken.com
CVR no.: 37536814
Sort code: 7670
SWIFT/BIC: RINGDK22
LEI code: 2138002M5U5K4OUMVV62
ISIN: DK0060854669
Share capital
28,379,666 nom. DKK 1 shares.
COMPANY INFORMATION
ANNUAL REPORT 2022 PAGE 143
Ownership
27,983,522 of the total share capital of DKK 28,379,666, equivalent to 98.6% of the total
share capital.
The number of registered shareholders on 31 December 2022 totalled 50,554.
Major shareholders
On 31 December 2022, two shareholders had advised their ownership etc. of between
• Liontrust Investment Partners LLP, London, Great Britain owned/managed 5.85% of
the bank’s share capital on 31 December 2022 and held 3,000 voting rights.
•
2022 and held 3,000 voting rights.
Distribution of shareholders
End of
2022
End of
2021
End of
2020
End of
2019
End of
2018
Danish institutional shareholders 17% 16% 25% 27% 36%
Other Danish shareholders 37% 38% 37% 40% 43%
Foreign institutional shareholders 41% 42% 33% 29% 17%
Other foreign shareholders 5% 4% 5% 4% 4%
100% 100% 100% 100% 100%
SHAREHOLDERS
PAGE 144 RINGKJØBING LANDBOBANK A/S
COMPANY ANNOUNCEMENTS
Company announcements 2022
Copenhagen and others in 2022:
03.01.2022 Share buy-back programme – week 52
06.01.2022 Up
of expectations for 2022
10.01.2022 Share buy-back programme – week 01
17.01.2022 Share buy-back programme – week 02
24.01.2022 Share buy-back programme – week 03
26.01.2022 Conclusion of share buy-back programme
02.02.2022 Initiation of share buy-back programme
07.02.2022 Share buy-back programme – week 05
14.02.2022 Share buy-back programme – week 06
21.02.2022 Share buy-back programme – week 07
28.02.2022 Share buy-back programme – week 08
02.03.2022 Minutes of the annual general meeting on 2 March 2022
07.03.2022 Share buy-back programme – week 09
14.03.2022 Share buy-back programme – week 10
21.03.2022 Share buy-back programme – week 11
28.03.2022 Share buy-back programme – week 12
04.04.2022 Share buy-back programme – week 13
11.04.2022 Share buy-back programme – week 14
19.04.2022 Share buy-back programme – week 15
25.04.2022 Share buy-back programme – week 16
27.04.2022 Entering into a strategic partnership with SEB in private banking
02.05.2022 Share buy-back programme – week 17
09.05.2022 Share buy-back programme – week 18
09.05.2022 Implementation of capital reduction
12.05.2022 Share buy-back programme – week 19
23.05.2022 Share buy-back programme – week 20
30.05.2022 Share buy-back programme – week 21
07.06.2022 Share buy-back programme – week 22
13.06.2022 Share buy-back programme – week 23
ANNUAL REPORT 2022 PAGE 145
Company announcements 2022 – continued
20.06.2022 Share buy-back programme – week 24
27.06.2022 Share buy-back programme – week 25
04.07.2022 Share buy-back programme – week 26
05.07.2022 Initiation of share buy-back programme
11.07.2022 Share buy-back programme – week 27
18.07.2022 Share buy-back programme – week 28
20.07.2022 Conclusion of share buy-back programme
08.08.2022 Share buy-back programme – week 31
15.08.2022 Share buy-back programme – week 32
22.08.2022 Share buy-back programme – week 33
29.08.2022 Share buy-back programme – week 34
05.09.2022 Share buy-back programme – week 35
12.09.2022 Share buy-back programme – week 36
19.09.2022 Share buy-back programme – week 37
26.09.2022 Share buy-back programme – week 38
03.10.2022 Share buy-back programme – week 39
10.10.2022 Share buy-back programme – week 40
17.10.2022 Share buy-back programme – week 41
24.10.2022 Share buy-back programme – week 42
26.10.2022 Financial calendar for 2023
31.10.2022 Share buy-back programme – week 43
07.11.2022 Share buy-back programme – week 44
14.11.2022 Share buy-back programme – week 45
21.11.2022 Share buy-back programme – week 46
28.11.2022 Share buy-back programme – week 47
05.12.2022 Share buy-back programme – week 48
12.12.2022 Share buy-back programme – week 49
19.12.2022 Share buy-back programme – week 50
27.12.2022 Share buy-back programme – week 51
included in the summary above.
All the company announcements from the bank to Nasdaq Copenhagen and others can be
seen on the bank´s website: www.landbobanken.com
PAGE 146 RINGKJØBING LANDBOBANK A/S
FINANCIAL CALENDAR
Financial calendar 2023
01.03.2023 Annual general meeting
26.04.2023 Quarterly report 1st quarter 2023
02.08.2023 Interim report 2023
25.10.2023 Quarterly report 1st-3rd quarters 2023
ANNUAL REPORT 2022 PAGE 147
PAGE 148 RINGKJØBING LANDBOBANK A/S
THE BANK’S BRANCHES
Branch Address Telephone
Ringkøbing, HQ Torvet 1, DK-6950 Ringkøbing +45 9732 1166
Brønderslev Algade 39-41, DK-9700 Brønderslev +45 9870 4500
Frederikshavn Jernbanegade 4-8, DK-9900 Frederikshavn +45 9870 6000
Hasseris Thulebakken 34, DK-9000 Aalborg +45 9870 5900
Herning Torvet 18, DK-7400 Herning +45 9721 4800
Hjallerup Hjallerup Centret 5, DK-9320 Hjallerup +45 9870 5100
Hjørring Østergade 4, DK-9800 Hjørring +45 9633 5520
Holstebro Den Røde Plads 2, DK-7500 Holstebro +45 9610 9500
Holte Kongevejen 272A, DK-2830 Virum +45 7624 9550
Copenhagen Bernstorffsgade 50, 8. sal, DK-1577 København V +45 7624 9640
Copenhagen Frederiksborggade 1, 1.th., DK-1360 Copenhagen K +45 9633 5240
Læsø Byrum Hovedgade 79, DK-9940 Læsø +45 9633 5480
Nørresundby Torvet 4, DK-9400 Nørresundby +45 9870 5000
Skagen Sct. Laurentii Vej 39 B, DK-9990 Skagen +45 9633 5210
Sæby Vestergade 21, DK-9300 Sæby +45 9633 5320
Tarm Storegade 6-10, DK-6880 Tarm +45 9737 1411
Vejgaard Vejgaard Bymidte 2, DK-9000 Aalborg +45 9870 4400
Vejle Lysholt Allé 10, DK-7100 Vejle +45 7624 9780
Vestbjerg Bakkelyvej 2A, DK-9380 Vestbjerg +45 9870 4900
Viborg Gravene 18, DK-8800 Viborg +45 8662 5501
Vildbjerg Søndergade 6, DK-7480 Vildbjerg +45 9713 3166
Aabybro Østergade 12, DK-9440 Aabybro +45 9870 5400
Aarhus Marselis Boulevard 9, DK-8000 Aarhus C +45 7624 9760
RINGKJØBING LANDBOBANK A/S
Rasmussens Bogtrykkeri, Ringkøbing
ANNUAL REPORT 2022
Ringkjøbing Landbobank A/S
Torvet 1
6950 Ringkøbing, Denmark
Telephone: +45 9732 1166
Email: post@landbobanken.dk
Web: www.landbobanken.com
CVR no.: 37536814