Head office:
Ringkjøbing Landbobank A/S Tel. +45 9732 1166 CVR 37536814
Torvet 1 post@landbobanken.dk BIC/SWIFT: RINGDK22
6950 Ringkøbing, Denmark www.landbobanken.dk
Nasdaq Copenhagen
Euronext Dublin
London Stock Exchange
Other stakeholders
23 October 2024
Ringkjøbing Landbobank’s quarterly report for the first three quarters of
2024
The bank’s board of directors and general management have today approved the quarterly report for the first
three quarters of 2024.
With net profit of DKK 1.77 billion for the first three quarters of 2024, the bank specifies the expected results for
net profit for 2024 to the top of the DKK 2,000-2,350 million range.
Core earnings
(DKK million)
Q1-Q3
2024
Q1-Q3
2023
2023
2022
2021
2020
Total core income
3,067
2,785
3,828
2,862
2,433
2,179
Total expenses and depreciation
761
708
963
891
817
788
Core earnings before impairment charges
2,306
2,077
2,865
1,971
1,616
1,391
Impairment charges for loans etc.
+2
-1
-1
-2
-68
-223
Core earnings
2,308
2,076
2,864
1,969
1,548
1,168
Result for the portfolio etc.
+56
-36
-7
-69
+7
-9
Amortisation etc. on intangible assets
15
15
20
20
17
15
Tax
579
484
682
385
309
224
Net profit
1,770
1,541
2,155
1,495
1,229
920
Highlights of the first three quarters of 2024
• The net profit is DKK 1,770 million, equivalent to a 22% p.a. return on equity
• Earnings per share – measured on net profit – increase by 20% to DKK 69
• Core income increases by 10% to DKK 3,067 million
• Costs increase by 8%, and the cost/income ratio decreases to 24.8%
• In the first three quarters of 2024, the bank carried impairment charges of DKK 2 million to income based on
strong credit quality while, in the first nine months of 2024, the total management estimates increased by
DKK 52 million
• Highly satisfactory increase in customer numbers and growth of 9% in loans, 4% in deposits and 14% in
funds in custody accounts
• The bank’s brands remain highly ranked in the annual Voxmeter Image survey where the Ringkjøbing
Landbobank brand takes first place.
• The expected result for 2024 is specified to be at the upper end of the upwardly adjusted DKK 2,000-2,350
million range
Yours sincerely
Ringkjøbing Landbobank
John Fisker
CEO
Ringkjøbing Landbobank A/S Page 0
Financial review
Q U A R T E R L Y R E P O R T
F O R T H E F I R S T T H R E E
Q U A R T E R S O F 2 0 2 4
Ringkjøbing Landbobank A/S Page 1
Contents
Page
2 Quarterly report highlights
2 Key figures and ratios
3
10 Quarterly overviews
12 Statements of income and comprehensive income
13 Core earnings
14 Balance sheet
16 Statement of changes in equity
17 Statement of capital
19 Notes
31 Key figures
32 The
33 Management statement
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.
Ringkjøbing Landbobank A/S Page 2
Quarterly report highlights
• The net profit is DKK 1,770 million, equivalent to a 22% p.a. return on equity
• Earnings per share measured on net profit increase by 20% to DKK 69
• Core income increases by 10% to DKK 3,067 million
• Costs increase by 8%, and the cost/income ratio decreases to 24.8%
• In the first three quarters of 2024, the bank carried impairment charges of DKK 2 million to income based on strong
credit quality while, in the first nine months of 2024, the total management estimates increased by DKK 52 million
• Highly satisfactory increase in customer numbers and growth of 9% in loans, 4% in deposits and 14% in funds in
custody accounts
• annual Voxmeter Image survey where the Ringkjøbing Landbobank brand
takes first place
• The expected result for 2024 is specified to be at the upper end of the upwardly adjusted DKK 2,000-2,350 million range
Key figures for the bank (DKK million)
Q1-Q3
2024
Q1-Q3
2023
2023
2022
2021
2020
Total core income
3,067
2,785
3,828
2,862
2,433
2,179
Total expenses and depreciation
761
708
963
891
817
788
Core earnings before impairment charges
2,306
2,077
2,865
1,971
1,616
1,391
Impairment charges for loans etc.
+2
-1
-1
-2
-68
-223
Core earnings
2,308
2,076
2,864
1,969
1,548
1,168
Result for the portfolio etc.
+56
-36
-7
-69
+7
-9
Amortisation etc. on intangible assets
15
15
20
20
17
15
Tax
579
484
682
385
309
224
Net profit
1,770
1,541
2,155
1,495
1,229
920
Equity
10,825
10,042
10,451
9,295
8,723
8,146
Deposits including pooled schemes
54,238
52,216
52,626
48,700
43,740
39,639
Loans
53,887
49,590
50,881
48,342
41,179
36,241
Balance sheet total
75,531
73,254
73,520
68,980
60,357
54,862
Guarantees
6,941
6,780
6,465
7,570
10,270
9,812
Financial ratios for the bank (percent)
Net profit / average equity
22.2
21.3
21.8
16.6
14.6
11.7
Cost/income ratio
24.8
25.4
25.2
31.1
33.6
36.2
Common equity tier 1 capital ratio
15.6
17.6
18.9
17.4
17.6
17.5
Total capital ratio
18.8
21.6
23.0
21.6
22.3
21.1
MREL capital ratio
27.2
27.7
28.9
28.9
27.8
26.7
Key figures per DKK 1 share (DKK)
Core earnings
89.6
77.1
107.1
71.5
54.4
40.2
Net profit
68.7
57.2
80.6
54.3
43.2
31.6
Book value
420.2
327.7
391.0
337.3
306.8
280.2
Share price, end of period
1,056.0
1,021.0
991.5
948.0
878.0
554.0
Key figures and ratios
Ringkjøbing Landbobank A/S Page 3
Core earnings
Core income
Interest
Net interest income was DKK 2,046 million in the first
three quarters of 2024 compared to DKK 1,899 million in
2023, an increase of 8%.
Since peaking in October 2023, the interest margin has
been under constant pressure. The deposit margin has
been influenced by the migration from transaction
accounts to savings and high-interest accounts.
Continuing keen competition for loans resulted in
pressure on the lending margin. Most recently, the
decreasing interest rate level has put additional pressure
on the interest margin.
To mitigate the pressure on the interest margin, the bank
has been able to grow the business based on its organic
portfolio thus increased by 8.7% with 2.6% in the fourth
quarter of 2023, 1.1% in the first quarter of 2024, 2.3% in
the second quarter of 2024 and most recently 2.7% in the
third quarter. The increase in loans is related mainly to
the niches and less so to retail. The bank is highly
satisfied with its loan growth.
Overall, the bank has thus been able to maintain net
interest income at DKK 678 million in the third quarter of
2024, which is unchanged compared with DKK 677
million in the second quarter of 2024.
In July 2024, the bank reduced its interest rates for loans
and deposits by up to 0.25 percentage point. At the
beginning of October 2024, the bank announced new
reductions for loans and deposits by up to 0.25
percentage point with effect from the beginning of
November 2024.
The interest rate reductions will put pressure on the
interest margin over the coming quarters, but the bank
intends to mitigate this development through continued
focus on growth.
Fee, commission and foreign exchange income
and
focus on private banking and other asset management.
Total income from these three items amounted to DKK
386 million in the first three quarters of 2024, compared
to DKK 336 million in 2023, an increase of 15%. The
increase is attributable to a positive development in all
three items. The trading volume was thus higher and the
funds in custody accounts increased during the first nine
months of the year.
Funds in custody accounts etc.
(DKK million)
30 Sep.
2024
30 Sep.
2023
31 Dec.
2023
Custody account holdings
94,368
84,316
87,165
Deposits in pooled schemes
6,865
5,386
5,845
Letpension/PFA Pension
5,604
4,356
4,666
Total
106,837
94,058
97,676
first three quarters, compared to DKK 185 million the year
before. Interest from sold-off home loans is booked
under this item. The explanation of the development is
that the bank has caught up with the timing difference of
the interest rate increases in 2022 and 2023, as the
notice period to customers of lending rate changes for
home loans was six months, whereas the funding rates
were adjusted on an ongoing basis.
The income from loan fees was marginally lower in 2024
than in 2023.
Income from payment handling in the first three quarters
of 2024 was DKK 99 million compared to DKK 92 million
from this source in 2023, driven by the continued
increase in customer numbers.
Overall fee, commission and foreign exchange income
amounted to DKK 828 million in the first nine months of
2024, compared to DKK 748 million in the same period in
2023.
Net fee, commission and foreign exchange income
(DKK million)
Q1-Q3
2024
Q1-Q3
2023
2023
Securities trading
143
120
159
Asset management and custody
accounts
178
159
218
Payment handling
99
92
126
Loan fees
51
55
79
Guarantee and mortgage credit
commission etc.
205
185
248
Pension and insurance commission
62
57
77
Other fees and commission
25
23
29
Foreign exchange income
65
57
77
Total
828
748
1,013
Sector shares and other operating income
Earnings from banking sector shares totalled DKK 186
million in the first nine months of the year, compared to
DKK 133 million in 2023. Earnings in DLR Kredit and
PRAS improved and there was also a sound development
Ringkjøbing Landbobank A/S Page 4
in earnings in BankInvest. Finally, DKK 5 million of the
DKK 186 million is non-recurring, as the amount derives
from the sale of the last shares in Visa.
Other operating income in the first three quarters of 2024
amounted to DKK 7 million, compared to DKK 5 million in
2023. -recurring
payment from Visa and the sale of properties.
Core income
Overall, net interest income increased by 8% from the first
three quarters of 2023 to the first three quarters of 2024,
while the rate of increase for all other income sources
was 15%.
Total core income in the first nine months of the year
thus increased by 10% from DKK 2,785 million in 2023 to
DKK 3,067 million in 2024.
Expenses, depreciation and write-downs
Total expenses including depreciation and write-downs
on tangible assets amounted to DKK 761 million in the
first three quarters of 2024 compared to DKK 707 million
in 2023. This represents an increase of 8%, which is still
the expected rate of increase for the full year 2024. The
cost increase reflects higher staff costs and higher IT
third quarter of 2024, new IT equipment was purchased
The cost/income ratio was 24.8% in the first three
quarters of the year, compared to 25.4% in 2023.
Impairment charges for loans etc.
of DKK 1 million in the third quarter of 2024 and income
of DKK 2 million in the first nine months of the year. The
bank has thus realised net losses and impairment
charges around zero in the last eleven quarters in a row.
compared to the published interim report for 2024. The
continuing low level of losses and impairment charges is
supported by the generally good credit quality of the
We do see businesses for which the effects of previous
interest rate increases and a decreasing level of activity
have led to declining results, which in a few cases caused
a need for new impairment charges. However, this
development is neither general nor of significant
importance to the overall assessment of credit quality at
present.
still coping well. A strong labour market has
compensated for the challenges of increasing interest
rates and inflation and largely supports this development.
Ringkjøbing Landbobank A/S Page 5
We are very aware of the economic challenges currently
faced by several of our closest neighbouring countries
and important trading partners. The challenges contribute
to an increased risk regarding macroeconomic
development in Denmark. The bank has addressed these
risks in its total management estimates, which increased
from DKK 952 million to DKK 1,002 million during the
third quarter of 2024.
Core earnings
Core earnings for the first three quarters of 2024 totalled
million, an increase of 11%.
Core earnings
(DKK million)
Q1-Q3
2024
Q1-Q3
2023
2023
Total core income
3,067
2,785
3,828
Total expenses and depreciation
761
708
963
Core earnings before impairment
2,306
2,077
2,865
Impairment charges for loans etc.
+2
-1
-1
Core earnings
2,308
2,076
2,864
Earnings per share
they develop.
Core earnings per DKK 1 share were DKK 89.6 for the first
three quarters of 2024 compared to DKK 77.1 in 2023,
and net profit also per DKK 1 share was DKK 68.7 in the
first three quarters of 2024 compared to DKK 57.2 in
2023. The latter is equivalent to an increase of 20%
compared to the first three quarters of 2023.
buyback programmes had a positive effect on the key
figures.
Result for the portfolio etc.
The result for the portfolio etc. including portfolio funding
costs was positive by DKK 56 million net for the first nine
months of the year, compared to a negative result of DKK
37 million net for the first nine months of 2023.
The positive result for the portfolio in 2024 is primarily
shorter- and longer-term bonds caused by the decreasing
market interest rate and to a narrowing credit spread for
certain 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 15 million in the first three quarters of
2024, unchanged relative to 2023.
Ringkjøbing Landbobank A/S Page 6
Profit before and after tax
The profit before tax was DKK 2,349 million, equivalent to
a 29.4% p.a. return on average equity.
The profit after tax was DKK 1,770 million, equivalent to a
22.2% p.a. return on average equity.
On 1 January 2024, the corporate tax rate for financial
undertakings increased to 26.0% from 25.2% applicable
for 2023.
The effective tax rate was 24.7% in the first three quarters
of 2024, compared to 23.9% in 2023.
Balance sheet items and contingent liabilities
million at the end of September 2024, compared to DKK
73,254 million the year before.
Loans increased 8.7% in the period September 2023 to
September 2024, from DKK 49,590 million to DKK 53,887
million. The increase in loans in the first nine months of
the year was DKK 3,006 million, equivalent to 5.9%.
Deposits including pooled schemes increased by 3.9%,
from DKK 52,216 million at the end of September 2023 to
DKK 54,238 million at the end of September 2024. The
the year was DKK 1,611 million, equivalent to 3.1%.
amounted to DKK 6,941 million at the end of September
2024, compared to DKK 6,780 million at the end of
September 2023 and DKK 6,465 million at the end of
December 2023.
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.
compared to September 2023 and by 3.8% in the first
nine months of the year.
The development is shown in the following summary:
Total credit intermediation
(DKK million)
30 Sep.
2024
30 Sep.
2023
31 Dec.
2023
Loans etc.
53,887
49,590
50,881
Mortgage credit Totalkredit
48,014
46,345
46,766
Mortgage credit DLR Kredit
and others
9,375
9,659
9,551
Total
111,276
105,594
107,198
Securities and market risk
The bank measures its portfolio of securities at fair value.
the end of September 2024, with DKK 59 million in listed
shares and investment fund certificates and DKK 1,418
million in sector shares etc., mainly in the companies DLR
Kredit, BI Holding and PRAS.
The bond portfolio amounted to DKK 7,201 million on 30
September 2024, of which the majority consisted of AAA-
rated Danish mortgage credit bonds.
The total interest rate risk impact on profit of a one
percentage point change in interest level was
September 2024.
based on a Value at
Risk model computed with a 10-day horizon and 99%
probability was as follows in the first nine months of
the year:
Value at Risk
Risk in DKK
million
Risk relative to equity
end of period in %
Highest risk of loss
22.3
0.21
Lowest risk of loss
8.3
0.08
Average risk of loss
14.6
0.14
End-of-period risk of loss
8.3
0.08
rate risk, listed shares etc. and foreign currency remains
at a moderate level, and this policy will continue.
Liquidity
-term funding
liabilities total DKK 1.6 billion, comprising 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 the central bank of
Denmark, Danmarks Nationalbank, receivables from
credit institutions with term to maturity of less than 12
months and listed securities totalling DKK 11.4 billion.
This means the total excess cover is DKK 9.8 billion.
schemes) and equity exceeded its loans by DKK 4.3
billion on 30 September 2024 and these two items
therefore more than fully finance the loan portfolio. In
addition, part of the loan portfolio for renewable energy
projects is financed back-to-back with KfW
Bankengruppe, which means that DKK 0.7 billion can be
disregarded in terms of liquidity.
The bank has strengthened its liquidity in 2024, partly by
entering into a EUR 100 million loan agreement with the
European Investment Bank and partly by entering into
agreements on new issues of tier 2 capital, non-preferred
Ringkjøbing Landbobank A/S Page 7
senior capital and preferred senior capital equivalent to a
total of DKK 1,986 million in the first nine months of the
In terms of liquidity, the bank must comply with the
statutory requirement of at least 100% for both the
liquidity ratios LCR and NSFR.
NSFR 118%. The bank thus met the statutory requirement
for both ratios by a good margin.
Capital structure
10,451 million. The profit for the period must be added to
this, while the dividend paid,
own shares bought must be subtracted. After this, equity
at the end of September 2024 was DKK 10,825 million.
When computing the common equity tier 1, ongoing
earnings contribute 35%, and the full share buyback
programme totalling DKK 1,525 million was deducted
from the common equity tier 1 in the first quarter of 2024.
The capital ratios will thus improve gradually in step with
the recognition of ongoing earnings, but with the biggest
effect in the fourth quarter of 2024.
were 18.8% and 15.6% respectively at the end of
September 2024.
Capital ratios
30 Sep.
2024
30 Sep.
2023
31 Dec.
2023
Common equity tier 1 capital ratio
15.6
17.6
18.9
Tier 1 capital ratio
15.6
17.6
18.9
Total capital ratio
18.8
21.6
23.0
MREL capital ratio
27.2
27.7
28.9
The part of the share buyback programme which has not
yet been bought back has already been deducted from
the capital, and, as shown above, the bank can only
include 35% of ongoing earnings in the capital. This
influences the capital ratios. Adjusted for these two
circumstances, the tier 1 capital ratio would have been
18.8% on 30 September 2024.
Calculated without the IFRS 9 transition programmes,
capital ratio was 18.4% and the tier 1 capital ratio 15.2%
on 30 September 2024.
The individual solvency requirement at the end of
September 2024 was calculated as 8.9%.
The capital conservation buffer of 2.5% and the
countercyclical buffer also of 2.5% should be added to
this.
Finally, the sector-specific systemic buffer results in an
addition of 0.8%. The sector-specific systemic buffer for
exposures to real estate companies was activated at a
rate of 7%, see below.
Real estate companies are firms engaged in activities
under the
exempt from the buffer. In addition, the part of the
secured exposures in the 0-15% loan-to-value range is
exempt from the calculation.
14.7% at the end of September 2024.
In December 2023, the bank received an updated MREL
requirement of 18.9% from the Danish FSA, applicable
from the beginning of 2024. The Danish FSA at the same
time notified the bank of a subordination requirement of
22.8%.
The subordination requirement must be met, at a
minimum, with non-preferred senior capital, while the
difference between the MREL requirement plus the
combined capital buffer requirements and the
subordination requirement can be met with preferred
senior capital.
Both the MREL requirement and the subordination
requirement must always be met.
To meet the MREL requirement, the bank has issued non-
preferred senior capital over time. At the end of
September 2024, non-preferred senior capital equivalent
to DKK 3.8 billion had been issued. In the first nine
months of the year, the bank entered into agreements on
new issues of non-preferred senior capital equivalent to
DKK 1,262 million, of which the equivalent of DKK 330
million was not disbursed until the beginning of October
2024.
At the end of September 2024, the bank had issued
preferred senior capital equivalent to DKK 596 million,
which complies with the eligibility provisions and can be
used to cover the difference between the MREL
requirement plus the combined capital buffer
requirements and the subordination requirement.
For further information on capital, please see pages 17-
18 of this quarterly report.
The bank operates with three different capital targets.
The capital targets specify that the common equity tier 1
capital ratio must be at least 13.5%, the total capital ratio
at least 17.0% and the MREL capital ratio for covering the
Ringkjøbing Landbobank A/S Page 8
MREL requirement at least 26.0%, including the capital
buffers.
All capital targets must be met at the end of the year. The
capital ratios may fluctuate during the year.
In addition, the board of directors has specified an
internal target of at least 25.5% for the subordination
requirement, including capital buffers.
The bank issued tier 2 capital of DKK 500 million on 31
July 2024. The capital issue has a maturity of 10.5 years
with a first call (redemption) option after 5.5 years. The
interest for the entire term to maturity is agreed at a 3-
month Cibor rate plus a margin of 200 basis points and
with fixing of interest every three months. The issue is
unlisted and was made as a private placement with an
institutional investor.
In addition, the bank carried out early redemption of tier 2
capital of EUR 100 million on 22 August 2024, having
Both the early redemption and the issue were part of the
The bank expects not to need refinancing of non-
preferred senior capital and tier 2 capital in the rest of
2024.
Share buyback programmes and capital reduction
again renewed its previous authorisation of the board of
directors to permit the bank, in accordance with the
applicable law, to acquire its own shares to a total
e capital.
The initiated share buyback programme totalling DKK
1,525 million is proceeding as planned. Part I of the share
buyback programme was for DKK 750 million and
completed on 27 June 2024 with buyback of a total of
631,900 shares. Part II for DKK 775 million and a
maximum buyback of 1,550,000 shares was initiated on
28 June 2024 and will run until 27 January 2025.
On 30 September 2024, a total of 956,407 shares had
been bought back under the programme (parts I and II)
which the overview below shows.
The general meeting further decided to cancel the
784,600 of the bank's own shares that were bought
during 2023 and in early 2024. The capital reduction was
finalised in April 2024.
was thus DKK 25,750,332 in nom. DKK 1 shares: see
below.
Share capital/
Number of shares
Beginning of 2024
27,491,339
Capital reduction by cancellation of own shares,
April 2024
-784,600
Number of shares after the capital reduction
26,706,739
Bought under the total DKK 1,525 million share
buyback programme at the end of September
2024
-956,407
Actual number of shares on 30 September 2024
25,750,332
The Supervisory Diamond
Diamond. The Supervisory Diamond contains four
different benchmarks and associated limit values which
Danish banks are expected to observe.
The Supervisory Diamond benchmarks and limit values
Benchmark
Limit
value
Q3
2024
Q3
2023
2023
2022
Liquidity benchmark
>100%
194.6%
189.2%
224.9%
143.4%
Large exposures
<175%
137.7%
126.2%
116.9%
118.0%
Growth in loans
<20%
9.4%
2.6%
5.0%
17.5%
Real estate exposure
<25%
19.1%
22.1%
21.1%
20.0%
As shown above, Ringkjøbing Landbobank meets all four
current limit values by a good margin.
Financial rating and ESG rating
The bank is rated by the international credit rating agency
-term bank
deposits and the long-term issuer rating.
In the economic, social and governance (ESG) area, the
-
on 29 May 2024.
Image survey
annual Image and Reputation report published in
first place,
place.
The analysis is based on 20 image parameters and as
many as 39,000 respondent interviews.
Expected results for 2024
On 17 January 2024, the bank announced its initial
expectations for 2024, which were net profit in the range
DKK 1.8-2.2 billion.
Ringkjøbing Landbobank A/S Page 9
Financial ratios
Based on continued good credit quality and a level of
losses and impairment charges better than originally
budgeted for 2024, which is expected to continue to
improve for the rest of the year, the bank upwardly
adjusted its expectations on 7 August 2024 to net profit
in the range DKK 2.0-2.35 billion for 2024. The
expectations are uncertain and depend on the
development on the financial markets and
macroeconomic factors.
With net profit of DKK 1.77 billion for the first three
quarters of 2024, the expected results for 2024 are
specified to be at the upper end of the upwardly adjusted
range.
Accounting policies
The accounting policies are unchanged relative to those
in the submitted and audited 2023 annual report.
.
Ringkjøbing Landbobank A/S Page 10
Quarterly overviews
The following pages contain quarterly overviews including core earnings, net profit, balance sheet items and contingent liabilities, and statement of capital.
Core earnings
(DKK million)
Q3
2024
Q2
2024
Q1
2024
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Q4
2022
Q3
2022
Q2
2022
Q1
2022
Q4
2021
Q3
2021
Q2
2021
Q1
2021
Q4
2020
Q3
2020
Q2
2020
Q1
2020
Net interest income
678
677
691
717
686
652
561
511
410
390
366
355
336
327
325
321
319
311
305
Net fees and commission excluding
securities trading
212
208
200
207
193
193
185
190
199
196
199
182
170
166
159
156
147
136
152
Income from sector shares etc.
58
61
67
60
47
45
41
46
38
41
44
47
49
43
40
43
38
35
35
Foreign exchange income
20
21
23
20
18
19
20
17
18
16
15
15
14
13
16
13
9
9
10
Other operating income
4
3
0
1
5
0
0
1
0
0
1
0
0
1
4
1
0
1
0
Core income excluding securities trading
972
970
981
1,005
949
909
807
765
665
643
625
599
569
550
544
534
513
492
502
Securities trading
44
41
59
38
40
38
42
34
40
41
49
52
34
29
56
32
39
28
39
Total core income
1,016
1,011
1,040
1,043
989
947
849
799
705
684
674
651
603
579
600
566
552
520
541
Staff and administration expenses
237
255
241
248
231
238
222
229
214
221
207
206
191
195
198
206
179
190
191
Depreciation etc. on tangible assets
14
3
3
5
3
3
3
5
3
4
1
9
3
4
3
4
5
2
3
Other operating expenses
2
3
3
2
3
3
2
2
2
1
2
2
2
2
2
2
2
0
4
Total expenses etc.
253
261
247
255
237
244
227
236
219
226
210
217
196
201
203
212
186
192
198
Core earnings before impairment charges
763
750
793
788
752
703
622
563
486
458
464
434
407
378
397
354
366
328
343
Impairment charges for loans etc.
+1
+1
0
0
0
0
-1
0
0
-1
-1
-7
-13
-19
-29
-38
-44
-66
-75
Core earnings
764
751
793
788
752
703
621
563
486
457
463
427
394
359
368
316
322
262
268
Result for the portfolio etc.
+26
+7
+23
+29
-8
-7
-21
+11
-61
-10
-9
+11
-1
+7
-10
+15
+17
+29
-70
Amortisation etc. on intangible assets
5
5
5
5
5
5
5
5
5
5
5
5
4
4
4
4
3
4
4
Profit before tax
785
753
811
812
739
691
595
569
420
442
449
433
389
362
354
327
336
287
194
Tax
196
188
195
198
178
166
140
110
91
94
90
79
87
71
72
64
64
60
36
Net profit
589
565
616
614
561
525
455
459
329
348
359
354
302
291
282
263
272
227
158
Ringkjøbing Landbobank A/S Page 11
Quarterly overviews
Balance sheet items and contingent liabilities
(DKK million)
End of
Q3
2024
End of
Q2
2024
End of
Q1
2024
End of
Q4
2023
End of
Q3
2023
End of
Q2
2023
End of
Q1
2023
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
Loans
53,887
52,535
51,417
50,881
49,590
49,996
48,842
48,342
48,052
46,681
43,352
41,179
38,849
37,268
37,210
36,241
35,479
35,260
36,130
Deposits including
pooled schemes
54,238
53,818
52,824
52,626
52,216
50,799
48,786
48,700
47,637
46,144
42,599
43,740
41,475
41,376
41,766
39,639
39,204
39,670
37,051
Equity
10,825
10,593
10,460
10,451
10,042
9,647
9,310
9,295
9,009
8,864
8,671
8,723
8,563
8,333
8,132
8,146
7,884
7,612
7,380
Balance sheet total
75,531
75,616
73,438
73,520
73,254
71,012
69,649
68,980
67,463
65,226
60,157
60,357
57,562
57,123
56,845
54,862
53,956
53,984
51,531
Contingent liabilities
6,941
7,090
6,533
6,465
6,780
7,216
6,993
7,570
8,998
11,244
12,432
10,270
10,886
11,811
10,370
9,812
9,590
9,379
9,992
Statement of capital
(DKK million)
Common equity tier 1
8,113
7,917
7,610
9,225
8,391
8,408
7,951
8,154
7,532
7,720
7,471
7,632
7,255
7,274
7,122
7,277
7,049
6,973
6,109
Tier 1 capital
8,113
7,917
7,610
9,225
8,391
8,408
7,951
8,154
7,532
7,720
7,471
7,632
7,255
7,274
7,122
7,277
7,049
6,973
6,109
Total capital
9,783
9,849
9,533
11,188
10,314
9,847
9,894
10,107
9,499
9,730
9,476
9,635
8,743
8,763
8,614
8,774
8,553
8,507
8,009
MREL capital
14,202
14,231
13,454
14,097
13,202
13,113
13,411
13,533
12,937
13,183
12,445
12,033
11,167
11,596
10,837
11,112
11,587
11,580
10,985
Total risk exposure
52,150
50,968
49,648
48,733
47,706
47,627
47,043
46,855
47,326
46,940
44,880
43,285
41,729
41,063
42,271
41,561
39,682
38,900
41,444
(Percent)
Common equity tier 1
capital ratio
15.6
15.5
15.3
18.9
17.6
17.7
16.9
17.4
15.9
16.4
16.6
17.6
17.4
17.7
16.8
17.5
17.8
17.9
14.7
Tier 1 capital ratio
15.6
15.5
15.3
18.9
17.6
17.7
16.9
17.4
15.9
16.4
16.6
17.6
17.4
17.7
16.8
17.5
17.8
17.9
14.7
Total capital ratio
18.8
19.3
19.2
23.0
21.6
20.7
21.0
21.6
20.1
20.7
21.1
22.3
21.0
21.3
20.4
21.1
21.6
21.9
19.3
MREL capital ratio
27.2
28.0
27.1
28.9
27.7
27.5
28.5
28.9
27.3
28.1
27.7
27.8
26.8
28.2
25.6
26.7
29.2
29.8
26.5
Ringkjøbing Landbobank A/S Page 12
Statements of income and comprehensive income
Note
no.
Q1-Q3
2024
DKK 1,000
Q1-Q3
2023
DKK 1,000
Full year
2023
DKK 1,000
1
Interest income
2,868,210
2,360,160
3,325,508
2
Interest expenses
831,868
521,551
785,976
Net interest income
2,036,342
1,838,609
2,539,532
Dividends from shares etc.
118,626
90,166
90,214
3
Fee and commission income
841,231
759,060
1,029,411
3
Fee and commission expenses
78,141
68,145
93,419
Net interest and fee income
2,918,058
2,619,690
3,565,738
4
Value adjustments
+197,541
+128,058
+253,354
Other operating income
7,208
4,865
5,829
5,6
Staff and administration expenses
732,855
690,877
939,121
Amortisation, depreciation and write-downs on intangible and
tangible assets
34,321
23,622
33,377
Other operating expenses
8,001
7,452
10,044
7,11
Impairment charges for loans and other receivables etc.
+1,755
-5,697
-5,792
Results from investments in associated companies and
subsidiaries
0
0
+84
Profit before tax
2,349,385
2,024,965
2,836,671
8
Tax
579,629
483,710
681,449
Net profit
1,769,756
1,541,255
2,155,222
Other comprehensive income
0
0
0
Total comprehensive income for the period
1,769,756
1,541,255
2,155,222
Ringkjøbing Landbobank A/S Page 13
Core earnings
Note
no.
Q1-Q3
2024
DKK 1,000
Q1-Q3
2023
DKK 1,000
Full year
2023
DKK 1,000
Net interest income
2,045,825
1,899,241
2,615,661
3
Net fee and commission income excluding securities trading
619,610
570,982
777,611
Income from sector shares etc.
185,909
132,828
192,974
3
Foreign exchange income
64,647
56,912
77,192
Other operating income
7,208
4,865
5,829
Total core income excluding securities trading
2,923,199
2,664,828
3,669,267
3
Securities trading
143,480
119,933
158,381
Total core income
3,066,679
2,784,761
3,827,648
5,6
Staff and administration expenses
732,855
690,877
939,121
Depreciation and write-downs on tangible assets
19,690
8,990
13,868
Other operating expenses
8,001
7,452
10,044
Total expenses etc.
760,546
707,319
963,033
Core earnings before impairment charges for loans
2,306,133
2,077,442
2,864,615
7
Impairment charges for loans and other receivables etc.
+1,755
-1,191
-1,286
Core earnings
2,307,888
2,076,251
2,863,329
Result for the portfolio etc.
+56,129
-36,654
-7,149
Amortisation and write-downs on intangible assets
14,632
14,632
19,509
Profit before tax
2,349,385
2,024,965
2,836,671
8
Tax
579,629
483,710
681,449
Net profit
1,769,756
1,541,255
2,155,222
Ringkjøbing Landbobank A/S Page 14
Balance sheet
Note
no.
30 Sep.
2024
DKK 1,000
30 Sep.
2023
DKK 1,000
31 Dec.
2023
DKK 1,000
Assets
Cash in hand and demand deposits with central banks
3,613,873
5,223,795
4,913,795
9
Receivables from credit institutions and central banks
482,611
448,288
243,490
10,11,12
Total loans and other receivables at amortised cost
53,887,132
49,589,602
50,880,954
Loans and other receivables at amortised cost
53,160,204
48,668,196
50,071,202
Wind turbine loans etc. with direct funding
726,928
921,406
809,752
13
Bonds at fair value
7,201,461
9,012,732
8,126,555
14
Shares etc.
1,477,121
1,418,078
1,470,945
Investments in associated companies
485
481
485
Investments in subsidiaries
12,063
11,982
12,063
15
Assets linked to pooled schemes
6,864,764
5,385,889
5,845,400
16
Intangible assets
997,529
1,028,531
1,012,161
Total land and buildings
202,381
216,744
214,031
Investment properties
829
3,667
3,667
Domicile properties
189,760
196,101
194,684
Domicile properties (leasing)
11,792
16,976
15,680
Other tangible assets
16,896
14,778
16,140
Current tax assets
0
0
42,753
Deferred tax assets
23,746
53,573
20,006
Temporary assets
100
4,250
350
Other assets
731,631
827,170
702,186
Prepayments
18,742
18,557
18,326
Total assets
75,530,535
73,254,450
73,519,640
Ringkjøbing Landbobank A/S Page 15
Balance sheet
Note
no.
30 Sep.
2024
DKK 1,000
30 Sep.
2023
DKK 1,000
31 Dec.
2023
DKK 1,000
Liabilities and equity
17
Debt to credit institutions and central banks
2,217,957
2,470,752
2,209,887
Total deposits and other debt
54,237,697
52,215,585
52,626,495
18
Deposits and other debt
47,372,933
46,829,696
46,781,095
15
Deposits in pooled schemes
6,864,764
5,385,889
5,845,400
19
Issued bonds at amortised cost
5,124,903
4,984,750
5,063,778
Preferred senior capital
1,380,669
2,230,209
2,251,655
Non-preferred senior capital
3,744,234
2,754,541
2,812,123
Current tax liabilities
454,345
441,753
0
Other liabilities
804,794
979,441
1,042,253
Deferred income
37
366
240
Total debt
62,839,733
61,092,647
60,942,653
11
Provisions for losses on guarantees
47,921
58,778
60,025
11
Other provisions for liabilities
22,790
22,082
26,648
Total provisions for liabilities
70,711
80,860
86,673
Tier 2 capital
1,795,222
2,039,020
2,039,110
20
Total subordinated debt
1,795,222
2,039,020
2,039,110
21
Share capital
26,707
27,491
27,491
Net revaluation reserve under the equity method
475
391
475
Retained earnings
10,797,687
10,014,041
10,146,325
Proposed dividend etc.
-
-
276,913
Total shareholders’ equity
10,824,869
10,041,923
10,451,204
Total liabilities and equity
75,530,535
73,254,450
73,519,640
22
Own shares
23
Contingent liabilities etc.
24
Assets provided as security
Credit risk
25
Loans and guarantees in percent, by sector and industry
26
Loans, guarantees and unutilised credit facilities and credit undertakings by credit quality and IFRS 9 stages
(before impairment and provisions), and impairment charges by stages
27
Miscellaneous information
Ringkjøbing Landbobank A/S Page 16
Statement of changes in equity
DKK 1,000
Share
capital
Net revaluation
reserve under the
equity method
Retained
earnings
Proposed
dividend
etc.
Total
shareholders’
equity
At 30 September 2024:
Shareholders’ equity at the end of the previous
financial year
27,491
475
10,146,325
276,913
10,451,204
Comprehensive income
Net profit for the period
1,769,756
1,769,756
Total comprehensive income
0
0
1,769,756
0
1,769,756
Transactions with shareholders
Reduction of share capital
-784
784
0
Dividend etc. paid
-276,913
-276,913
Dividend received on own shares
9,193
9,193
Purchase of own shares
-1,918,023
-1,918,023
Sale of own shares
763,280
763,280
Other equity transactions (employee shares)
26,372
26,372
Total transactions with shareholders
-784
0
-1,118,394
-276,913
-1,396,091
Shareholders’ equity on the balance sheet date
26,707
475
10,797,687
0
10,824,869
At 30 September 2023:
Shareholders’ equity at the end of the previous
financial year
28,380
391
9,065,333
200,658
9,294,762
Comprehensive income
Net profit for the period
1,541,255
1,541,255
Total comprehensive income
0
0
1,541,255
0
1,541,255
Transactions with shareholders
Reduction of share capital
-889
889
0
Dividend etc. paid
-200,658
-200,658
Dividend received on own shares
6,714
6,714
Purchase of own shares
-1,422,894
-1,422,894
Sale of own shares
804,959
804,959
Other equity transactions (employee shares)
17,785
17,785
Total transactions with shareholders
-889
0
-592,547
-200,658
-794,094
Shareholders’ equity on the balance sheet date
27,491
391
10,014,041
0
10,041,923
At 31 December 2023:
Shareholders’ equity at the end of the previous
financial year
28,380
391
9,065,333
200,658
9,294,762
Comprehensive income
Net profit for the year
84
1,878,225
276,913
2,155,222
Total comprehensive income
0
84
1,878,225
276,913
2,155,222
Transactions with shareholders
Reduction of share capital
-889
889
0
Dividend etc. paid
-200,658
-200,658
Dividend received on own shares
6,714
6,714
Purchase of own shares
-1,801,436
-1,801,436
Sale of own shares
973,032
973,032
Other equity transactions (employee shares)
23,568
23,568
Total transactions with shareholders
-889
0
-797,233
-200,658
-998,780
Shareholders’ equity on the balance sheet date
27,491
475
10,146,325
276,913
10,451,204
Ringkjøbing Landbobank A/S Page 17
Statement of capital
30 Sep. 2024
DKK 1,000
30 Sep. 2023
DKK 1,000
31 Dec. 2023
DKK 1,000
Credit risk
45,081,217
41,472,097
41,658,951
Market risk
1,527,724
1,705,130
1,532,667
Operational risk
5,541,119
4,528,649
5,541,119
Total risk exposure
52,150,060
47,705,876
48,732,737
10,824,869
10,041,923
10,451,204
Proposed dividend etc.
-
-
-276,913
Deduction for expected distributions
-1,150,341
-269,719
-
Addition for IFRS 9 transitional arrangements
212,010
324,415
359,171
Deduction for insufficient coverage of non-performing exposures
-22,320
-21,158
-5,680
Deduction for the sum of equity investments etc. above 10%
-266,357
-275,302
-188,016
Deduction for prudent valuation
-16,187
-16,674
-16,095
Deduction for intangible assets
-997,529
-1,028,531
-1,012,161
Deferred tax on intangible assets
12,761
15,649
15,629
Deferred tax on tangible assets etc.
-36,507
-69,222
-35,635
Deduction of amount of share buyback programme
-1,525,000
-770,000
-770,000
Actual utilisation of amount of share buyback programme
1,113,316
544,940
749,299
Deduction for trading limit for own shares
-15,000
-55,000
-15,000
Actual utilisation of the trading limit for own shares
344
408
0
Deduction for indirect ownership of own shares
-21,320
-30,778
-30,623
Common equity tier 1
8,112,739
8,390,951
9,225,180
Tier 1 capital
8,112,739
8,390,951
9,225,180
Tier 2 capital
1,795,222
2,040,715
2,040,628
Deduction for the sum of equity investments etc. above 10%
-124,943
-117,436
-78,297
Total capital
9,783,018
10,314,230
11,187,511
Contractual senior funding
596,472
-
-
Non-preferred senior capital
3,822,707
2,887,918
2,909,546
MREL capital
14,202,197
13,202,148
14,097,057
Common equity tier 1 capital ratio (%)
15.6
17.6
18.9
Tier 1 capital ratio (%)
15.6
17.6
18.9
Total capital ratio (%)
18.8
21.6
23.0
MREL capital ratio (%)
27.2
27.7
28.9
Pillar I capital requirements
4,172,005
3,816,470
3,898,619
Individual solvency requirement (%)
8.9
9.0
9.0
Capital conservation buffer (%)
2.5
2.5
2.5
Countercyclical buffer (%)
2.5
2.4
2.5
Sector-specific systemic buffer (%)
0.8
-
-
14.7
13.9
14.0
Excess cover in percentage points relative to individual solvency
requirement
9.9
12.6
14.0
Excess cover in percentage points relative to total requirement for total
capital
4.1
7.7
9.0
Subordination requirement (%) fixed by the Danish FSA
22.8
-
-
Excess cover in percentage points relative to the subordination
requirement
4.4
-
-
MREL requirement (%) fixed by the Danish FSA
18.9
17.9
17.9
Excess cover in percentage points relative to MREL requirement
8.3
9.8
11.0
Ringkjøbing Landbobank A/S Page 18
Statement of capital
Once a year the Danish FSA sets requirements for subordinated liabilities and own funds and eligible liabilities (MREL) for
Danish financial institutions, including Ringkjøbing Landbobank. The two requirements for the bank differed for the first time
on 1 January 2024.
The requirements for subordinated liabilities and MREL on 1 January 2024 were, respectively, 22.8% and 18.9% of the risk
exposure amount and are calculated as follows:
Subordinated liabilities
MREL
%
DKK million
%
DKK million
30 September 2024
Risk exposure amount
52,150,060
52,150,060
Capital requirement
22.8%
11,890,214
18.9%
9,856,361
Buffer requirement
-
-
5.8%
3,011,993
Total capital requirement
22.8%
11,890,214
24.7%
12,868,355
Total capital
9,783,018
9,783,018
Non-preferred senior capital
3,822,707
3,822,707
Preferred senior capital
-
596,472
Total cover
26.1%
13,605,725
27.2%
14,202,197
Calculated excess cover
3.3%
1,715,511
2.5%
1,321,132
Ringkjøbing Landbobank A/S Page 19
Notes
Note
no.
Q1-Q3
2024
DKK 1,000
Q1-Q3
2023
DKK 1,000
Full year
2023
DKK 1,000
1
Interest income
Receivables from credit institutions and central banks net
112,556
79,521
121,484
Loans and other receivables
2,563,551
2,155,547
3,008,420
Discounts amortisation concerning loans taken over etc.
0
4,506
4,506
Loans interest on the impaired part of loans
-44,302
-47,536
-63,594
Bonds net
229,176
159,523
235,514
Total derivative financial instruments net
7,229
8,288
18,614
of which currency contracts net
-9,732
7,306
8,251
of which interest-rate contracts net
16,961
982
10,363
Other interest income
0
311
564
Total interest income
2,868,210
2,360,160
3,325,508
of which interest income from collateralised repurchase
3,130
3,731
5,800
2
Interest expenses
Debt to credit institutions and central banks net
12,306
28,234
36,453
Deposits and other debt net
562,176
303,890
476,184
Issued bonds
168,828
124,766
177,930
Subordinated debt
88,030
64,406
94,645
Other interest expenses
528
255
764
Total interest expenses
831,868
521,551
785,976
3
Gross fee and commission income
Securities trading
155,072
130,012
171,585
Asset management and custody accounts
191,449
170,554
233,776
Payment handling
140,057
129,173
176,097
Loan fees
57,643
60,131
86,870
Guarantee commission and mortgage credit commission etc.
205,333
185,436
248,293
Pension and insurance commission
61,657
56,692
76,795
Other fees and commission
30,020
27,062
35,995
Total gross fee and commission income
841,231
759,060
1,029,411
Net fee and commission income
Securities trading
143,480
119,933
158,381
Asset management and custody accounts
178,053
159,172
218,334
Payment handling
98,900
91,837
125,794
Loan fees
51,075
54,546
79,078
Guarantee commission and mortgage credit commission etc.
205,333
185,436
248,293
Pension and insurance commission
61,657
56,692
76,795
Other fees and commission
24,592
23,299
29,317
Total net fee and commission income
763,090
690,915
935,992
Foreign exchange income
64,647
56,912
77,192
Total net fee, commission and foreign exchange income
827,737
747,827
1,013,184
Ringkjøbing Landbobank A/S Page 20
Notes
Note
no.
Q1-Q3
2024
DKK 1,000
Q1-Q3
2023
DKK 1,000
Full year
2023
DKK 1,000
4
Value adjustments
Other loans and receivables
1,161
-804
8,835
Bonds
74,013
27,194
107,217
Shares etc.
77,829
46,826
110,006
Investment properties
6,112
0
0
Foreign exchange
64,647
56,912
77,192
Total derivative financial instruments
7,288
13,357
18,468
of which currency contracts
17,920
-10,832
24,727
of which interest-rate contracts
-10,631
24,188
-6,261
of which share contracts
-1
1
2
Assets linked to pooled schemes
551,796
189,496
507,479
Deposits in pooled schemes
-551,796
-189,496
-507,479
Issued bonds etc.
-25,540
-10,169
-58,354
Debt to credit institutions
-7,969
-5,258
-10,010
Total value adjustments
197,541
128,058
253,354
The part of value adjustments relating to the fair value hedging accounts
below is distributed as follows:
Other loans and receivables
1,197
766
10,445
Bonds
617
-545
8,172
Currency contracts
19,824
-11,520
27,868
Interest-rate contracts
11,871
26,726
21,878
Issued bonds etc.
-25,540
-10,169
58,353
Debt to credit institutions
-7,969
-5,258
-10,010
Total effect of hedging on profit
0
0
0
5
Staff and administration expenses
Total payments and fees to general management, board of directors and
20,316
19,963
28,411
General management
17,760
17,383
21,768
Board of directors
2,545
2,580
5,665
11
0
978
Total staff expenses
420,259
382,870
528,580
Salaries
320,629
290,460
406,093
Pensions
36,656
34,595
46,464
Social security expenses
4,658
5,080
6,053
Costs depending on number of staff
58,316
52,735
69,970
Other administration expenses
292,280
288,044
382,130
Total staff and administration expenses
732,855
690,877
939,121
6
Number of full-time employees
Average number of employees during the period converted into full-time
equivalents
663
650
653
Number of full-time employees at the end of the period
663
663
661
7
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 and unutilised credit facilities
73,046
55,936
32,418
Actual realised net losses
-30,499
-2,703
36,968
Interest on the impaired part of loans
-44,302
-47,536
-63,594
Total impairment charges for loans and other receivables etc.
-1,755
5,697
5,792
Ringkjøbing Landbobank A/S Page 21
Notes
Note
no.
Q1-Q3
2024
DKK 1,000
Q1-Q3
2023
DKK 1,000
Full year
2023
DKK 1,000
8
Tax
Tax calculated on income for the year
583,370
514,106
675,491
Adjustment of deferred tax
-3,741
-28,892
3,643
Effect on deferred tax of change in tax rate
0
-1,648
-616
Adjustment of tax calculated for previous years
0
144
2,931
Total tax
579,629
483,710
681,449
Effective tax rate (%):
Tax rate currently paid by the bank
22.0
22.0
22.0
Factor increase (extra tax imposed on financial undertakings)
4.0
3.2
3.2
Non-taxable income and non-deductible costs*
-1.3
-1.2
-1.3
Effect of change in tax rate
0
-0.1
0.0
Adjustment regarding previous years etc.
0
0.0
0.1
Total effective tax rate
24.7
23.9
24.0
* Primarily value adjustment of and dividends from sector shares.
30 Sep. 2024
30 Sep. 2023
31 Dec. 2023
DKK 1,000
DKK 1,000
DKK 1,000
9
Receivables from credit institutions and central banks
Demand
482,611
448,288
243,490
Total receivables from credit institutions and central banks
482,611
448,288
243,490
10
Loans and other receivables at amortised cost
Demand
10,924,034
8,508,441
7,978,024
Up to and including 3 months
2,911,429
3,448,848
2,968,599
More than 3 months and up to and including 1 year
8,895,442
8,717,069
10,578,051
More than 1 year and up to and including 5 years
13,606,068
12,321,637
12,396,714
More than 5 years
17,550,159
16,593,607
16,959,566
Total loans and other receivables at amortised cost
53,887,132
49,589,602
50,880,954
of which collateralised repurchase agreements/reverse repo transactions
20,263
367,835
145,682
Ringkjøbing Landbobank A/S Page 22
Notes
Note
no.
11
Impairment charges for loans and other receivables and provisions for losses on guarantees,
unutilised credit facilities and loan undertakings
Impairment charges and provisions – by stages
Stage 1
Stage 2
Stage 3
Total
DKK 1,000
DKK 1,000
DKK 1,000
DKK 1,000
At 30 September 2024
Loans and other receivables at amortised cost
450,287
1,138,541
748,096
2,336,924
Guarantees
5,532
10,680
31,709
47,921
Unutilised credit facilities and loan undertakings
9,793
12,990
7
22,790
Total impairment charges and provisions by stages
465,612
1,162,211
779,812
2,407,635
of which management estimates
306,674
514,615
181,116
1,002,405
At 30 September 2023
Loans and other receivables at amortised cost
254,543
1,078,371
944,333
2,277,247
Guarantees
4,787
12,642
41,349
58,778
Unutilised credit facilities and loan undertakings
9,104
12,978
0
22,082
Total impairment charges and provisions by stages
268,434
1,103,991
985,682
2,358,107
of which management estimates
129,792
472,813
274,037
876,642
At 31 December 2023
Loans and other receivables at amortised cost
381,396
1,034,615
831,905
2,247,916
Guarantees
5,336
13,548
41,141
60,025
Unutilised credit facilities and loan undertakings
12,519
14,129
0
26,648
Total impairment charges and provisions by stages
399,251
1,062,292
873,046
2,334,589
of which management estimates
257,186
493,756
199,026
949,968
30 Sep.
2024
30 Sep.
2023
31 Dec.
2023
DKK 1,000
DKK 1,000
DKK 1,000
The above includes the following stage 3 impairment charges and
provisions taken over from Nordjyske Bank:
Cumulative stage 3 impairment charges and provisions at the end of the
previous financial year
100,852
155,343
155,343
Change during the period
-19,786
-32,756
-54,491
Total stage 3 impairment charges and provisions taken over
81,066
122,587
100,852
Ringkjøbing Landbobank A/S Page 23
Notes
Note
no.
11
Impairment charges for loans and other receivables and provisions for losses on guarantees,
unutilised credit facilities and loan undertakings – continued
Impairment charges and provisions
Impairment
charges etc.
taken to
income
statement
Stage 1
Stage 2
Stage 3
Total
DKK 1,000
DKK 1,000
DKK 1,000
DKK 1,000
DKK 1,000
At 30 September 2024
Impairment charges and provisions at the end
of the previous financial year
399,251
1,062,292
873,046
2,334,589
-
Impairment charges and provisions for new
exposures during the period, including new
accounts for existing customers
105,899
67,056
64,319
237,274
237,274
Reversed impairment charges and provisions
for repaid accounts
-63,150
-149,654
-116,326
-329,130
-329,130
Migration of impairment charges and
provisions at beginning of period to stage 1
193,150
-173,519
-19,631
0
-
Migration of impairment charges and
provisions at beginning of period to stage 2
-17,790
93,712
-75,922
0
-
Migration of impairment charges and
provisions at beginning of period to stage 3
-1,570
-35,510
37,080
0
-
Impairment charges and provisions during the
year resulting from credit risk change
-150,178
297,834
39,988
187,644
187,644
Previously written down, now definitively lost
-
-
-22,742
-22,742
-
Lost, not previously written down
-
-
-
-
5,311
Received on claims previously written off
-
-
-
-
-58,552
Interest on the impaired part of loans
-
-
-
-
-44,302
Total impairment charges and provisions
465,612
1,162,211
779,812
2,407,635
-1,755
of which regarding credit institutions etc.
865
0
0
865
272
At 30 September 2023
Impairment charges and provisions at the end
of the previous financial year
226,760
1,040,582
1,034,829
2,302,171
-
Impairment charges and provisions for new
exposures during the period, including new
accounts for existing customers
67,139
59,499
83,387
210,025
210,025
Reversed impairment charges and provisions
for repaid accounts
-40,381
-132,665
-73,808
-246,854
-246,854
Migration of impairment charges and
provisions at beginning of period to stage 1
207,391
-200,799
-6,592
0
-
Migration of impairment charges and
provisions at beginning of period to stage 2
-11,835
49,142
-37,307
0
-
Migration of impairment charges and
provisions at beginning of period to stage 3
-315
-20,758
21,073
0
-
Impairment charges and provisions during the
year resulting from credit risk change
-180,325
308,990
-8,813
119,852
119,852
Previously written down, now definitively lost
-
-
-27,087
-27,087
-
Lost, not previously written down
-
-
-
-
4,871
Received on claims previously written off
-
-
-
-
-34,661
Interest on the impaired part of loans
-
-
-
-
-47,536
Total impairment charges and provisions
268,434
1,103,991
985,682
2,358,107
5,697
of which regarding credit institutions etc.
755
0
0
755
364
Ringkjøbing Landbobank A/S Page 24
Notes
Note
no.
11
Impairment charges for loans and other receivables and provisions for losses on guarantees,
unutilised credit facilities and loan undertakings – continued
Impairment charges and provisions – continued
Impairment
charges etc.
taken to
income
statement
Stage 1
Stage 2
Stage 3
Total
DKK 1,000
DKK 1,000
DKK 1,000
DKK 1,000
DKK 1,000
At 31 December 2023
Impairment charges and provisions at the end
of the previous financial year
226,760
1,040,582
1,034,829
2,302,171
-
Impairment charges and provisions for new
exposures during the period, including new
accounts for existing customers
115,671
75,989
86,003
277,663
277,663
Reversed impairment charges and provisions
for repaid accounts
-51,074
-169,305
-72,303
-292,682
-292,682
Migration of impairment charges and
provisions at beginning of period to stage 1
236,583
-233,187
-3,396
0
-
Migration of impairment charges and
provisions at beginning of period to stage 2
-14,914
68,415
-53,501
0
-
Migration of impairment charges and
provisions at beginning of period to stage 3
-361
-51,408
51,769
0
-
Impairment charges and provisions during the
year resulting from credit risk change
-113,414
331,206
-106,475
111,317
111,317
Previously written down, now definitively lost
-
-
-63,880
-63,880
-
Lost, not previously written down
-
-
-
-
9,305
Received on claims previously written off
-
-
-
-
-36,217
Interest on the impaired part of loans
-
-
-
-
-63,594
Total impairment charges and provisions
399,251
1,062,292
873,046
2,334,589
5,792
of which regarding credit institutions etc.
593
0
0
593
202
30 Sep.
2024
DKK 1,000
30 Sep.
2023
DKK 1,000
31 Dec.
2023
DKK 1,000
12
Suspended interest
Loans and other receivables with suspended interest on the balance sheet
date
66,870
147,926
119,789
13
Bonds at fair value
Government bonds
0
611,194
367,089
Mortgage credit bonds
5,329,846
7,166,598
6,246,164
Other bonds
1,871,615
1,234,940
1,513,302
Total bonds at fair value
7,201,461
9,012,732
8,126,555
Bonds at fair value by rating classes
Percent
Percent
Percent
Aaa/AAA
74
86
82
A1/A+
2
0
1
A2/A
4
1
1
A3/A-
4
4
3
Baa1/BBB+
0
0
1
Baa2/BBB
4
2
2
Not rated
12
7
10
Total
100
100
100
sue
has more than one rating, the lowest is used.
Ringkjøbing Landbobank A/S Page 25
Notes
Note
no.
30 Sep.
2024
DKK 1,000
30 Sep.
2023
DKK 1,000
31 Dec.
2023
DKK 1,000
14
Shares etc.
Listed on Nasdaq Copenhagen
49,930
52,666
45,377
Investment fund certificates
8,773
7,651
8,911
Unlisted shares at fair value
11,339
8,678
11,339
Sector shares at fair value
1,407,079
1,349,083
1,405,318
Total shares etc.
1,477,121
1,418,078
1,470,945
15
Assets linked to pooled schemes
Cash deposits
17,575
8,273
136,038
Bonds:
Other bonds
1,491,509
1,392,999
1,532,816
Total bonds
1,491,509
1,392,999
1,532,816
Shares:
Other shares
368,621
644,395
541,782
Investment fund certificates
5,025,655
3,372,924
3,634,764
Total shares
5,394,276
4,017,319
4,176,546
Other items
-38,596
-32,702
0
Total assets linked to pooled schemes
6,864,764
5,385,889
5,845,400
16
Intangible assets
Goodwill
Cost at the end of the previous financial year
923,255
923,255
923,255
Total cost on the balance sheet date
923,255
923,255
923,255
Write-downs at the end of the previous financial year
0
0
0
Total write-downs on the balance sheet date
0
0
0
Total goodwill on the balance sheet date
923,255
923,255
923,255
Customer relationships
Cost at the end of the previous financial year
195,088
195,088
195,088
Total cost on the balance sheet date
195,088
195,088
195,088
Amortisation at the end of the previous financial year
106,182
75,180
75,180
Amortisation for the period
14,632
14,632
19,509
Write-downs for the period
0
0
11,493
Total amortisation on the balance sheet date
120,814
89,812
106,182
Total customer relationships on the balance sheet date
74,274
105,276
88,906
Total intangible assets on the balance sheet date
997,529
1,028,531
1,012,161
17
Debt to credit institutions and central banks
Demand
745,439
555,351
849,133
Up to and including 3 months
0
532,299
12,980
More than 3 months and up to and including 1 year
22,613
584,059
556,329
More than 1 year and up to and including 5 years
1,115,567
232,726
395,902
More than 5 years
334,338
566,317
395,543
Total debt to credit institutions and central banks
2,217,957
2,470,752
2,209,887
Ringkjøbing Landbobank A/S Page 26
Notes
Note
no.
30 Sep.
2024
DKK 1,000
30 Sep.
2023
DKK 1,000
31 Dec.
2023
DKK 1,000
18
Deposits and other debt
Demand
33,828,951
37,124,062
33,012,187
Deposits and other debt with notice:
Up to and including 3 months
4,611,823
2,370,804
4,572,111
More than 3 months and up to and including 1 year
3,567,928
3,851,156
3,049,221
More than 1 year and up to and including 5 years
1,837,544
798,348
2,895,405
More than 5 years
3,526,687
2,685,326
3,252,171
Total deposits and other debt
47,372,933
46,829,696
46,781,095
of which deposits covered by the Guarantee Fund
56.0%
54.7%
56.0%
Distributed as follows:
Demand
33,856,687
34,026,880
34,115,670
With notice
5,976,520
4,273,527
4,630,822
Time deposits
2,578,310
3,755,121
3,168,922
Long-term deposit agreements
1,987,931
1,721,439
1,663,875
Special types of deposits
3,153,485
3,052,729
3,201,806
Total deposits and other debt
47,372,933
46,829,696
46,781,095
19
Issued bonds at amortised cost
Up to and including 3 months
0
0
372,647
More than 3 months and up to and including 1 year
799,160
1,092,172
728,180
More than 1 year and up to and including 5 years
3,380,731
3,524,720
3,562,256
More than 5 years
945,012
367,858
400,695
Total issued bonds at amortised cost
5,124,903
4,984,750
5,063,778
Distributed as follows:
Preferred senior capital
1,395,590
2,290,573
2,289,649
Adjustment to amortised cost and fair value adjustment
-14,921
-60,364
-37,994
Total preferred senior capital
1,380,669
2,230,209
2,251,655
Non-preferred senior capital
3,824,723
2,887,918
2,911,643
Adjustment to amortised cost and fair value adjustment
-80,489
-133,377
-99,520
Total non-preferred senior capital
3,744,234
2,754,541
2,812,123
Total issued bonds at amortised cost
5,124,903
4,984,750
5,063,778
20
Subordinated debt
Tier 2 capital:
Floating-rate loan, principal of EUR 100 million
-
745,715
745,295
Floating-rate loan, principal of DKK 300 million,
maturity date 13 June 2030
300,000
300,000
300,000
Floating-rate loan, principal of DKK 500 million,
maturity date 12 January 2032
500,000
500,000
500,000
Floating-rate loan, principal of DKK 500 million,
maturity date 1 September 2033
500,000
500,000
500,000
Floating-rate loan, principal of DKK 500 million,
maturity date 22 January 2035
500,000
-
-
Adjustment to amortised cost and fair value adjustment
-4,778
-6,695
-6,185
Total subordinated debt
1,795,222
2,039,020
2,039,110
Ringkjøbing Landbobank A/S Page 27
Notes
Note
no.
30 Sep.
2024
DKK 1,000
30 Sep.
2023
DKK 1,000
31 Dec.
2023
DKK 1,000
21
Share capital
Number of DKK 1 shares
Beginning of period
27,491,339
28,379,666
28,379,666
Cancelled during the period
-784,600
-888,327
-888,327
End of period
26,706,739
27,491,339
27,491,339
of which reserved for subsequent cancellation
946,107
545,510
758,610
Total share capital
26,707
27,491
27,491
22
Own shares
Own shares included in the balance sheet at
0
0
0
Market value
999,433
557,374
752,162
Number of own shares:
Beginning of period
758,610
826,527
826,527
Purchased during the period
1,667,943
1,432,072
1,824,656
Sold during the period
-695,520
-824,362
-1,004,246
Cancelled during the period
-784,600
-888,327
-888,327
End of period
946,433
545,910
758,610
of which reserved for subsequent cancellation
946,107
545,510
758,610
Nominal value of holding of own shares, end of period
946
546
759
3.5
2.0
2.8
23
Contingent liabilities etc.
Contingent liabilities
Financial guarantees
3,463,507
2,500,078
2,038,132
Guarantees against losses on mortgage credit loans
1,320,235
1,915,062
1,821,326
Registration and refinancing guarantees
1,463,358
1,517,117
1,863,058
Sector guarantees
108,764
105,830
105,830
Other contingent liabilities
585,425
742,321
636,445
Total contingent liabilities
6,941,289
6,780,408
6,464,791
Other contractual obligations
Irrevocable credit undertakings etc.
163,488
247,807
328,148
Total other contractual obligations
163,488
247,807
328,148
24
Assets provided as security
First-mortgage loans are provided for renewable energy projects. The
loans are funded directly by KfW Bankengruppe, to which security in the
associated loans has been provided. Each reduction of the first-mortgage
loans is deducted directly from the funding at KfW Bankengruppe.
The balance sheet item is
726,928
921,406
809,752
Pledged to Danmarks Nationalbank as collateral for clearing etc.:
Balance in current account with Danmarks Nationalbank
35,531
35,531
17,674
Collateral under CSA agreements etc.
172,238
231,356
157,872
Ringkjøbing Landbobank A/S Page 28
Notes
Note
no.
25
Loans and guarantees by sector and industry
30 Sep. 2024
30 Sep. 2023
31 Dec. 2023
DKK million
%
DKK million
%
DKK million
%
Public authorities
11.2
0.0
2.6
0.0
1.7
0.0
Business customers:
Agriculture, hunting and forestry
Cattle farming etc.
511.9
0.8
594.9
1.1
650.3
1.1
Pig farming etc.
589.2
1.0
567.6
1.0
596.5
1.0
Other agriculture, hunting and forestry
3,418.5
5.6
3,090.7
5.5
3,157.2
5.5
Fisheries
659.1
1.1
658.8
1.2
673.1
1.2
Industry and raw materials extraction
2,692.9
4.4
1,861.6
3.3
2,263.2
4.0
Energy supply
Renewable energy
3,959.9
6.5
2,978.3
5.3
3,033.1
5.3
Other energy supply
350.4
0.6
140.4
0.2
122.5
0.2
Building and construction
2,841.2
4.7
2,543.3
4.5
2,677.6
4.7
Trade
2,269.4
3.7
2,319.3
4.1
2,264.8
4.0
Transport, hotels and restaurants
994.1
1.6
792.6
1.4
799.6
1.4
Information and communication
261.1
0.4
141.0
0.3
136.9
0.2
Finance and insurance
7,897.6
13.0
7,197.2
12.8
7,272.0
12.7
Real estate
Real estate financing without prior creditors
7,466.8
12.3
8,606.4
15.3
8,156.3
14.2
Other real estate financing
2,403.3
4.0
2,521.9
4.4
2,435.4
4.3
Other business customers
3,759.7
6.2
3,593.7
6.4
3,727.3
6.5
Total business customers
40,075.1
65.9
37,607.7
66.8
37,965.8
66.3
32,117.0
52.8
33,024.7
58.7
33,347.3
58.2
Private individuals
20,694.2
34.1
18,700.9
33.2
19,318.2
33.7
Total
60,780.5
100.0
56,311.2
100.0
57,285.7
100.0
Ringkjøbing Landbobank A/S Page 29
Notes
Note
no.
26
Loans, guarantees and unutilised credit facilities and credit undertakings by credit quality and IFRS 9
stages (before impairment and provisions), and impairment charges by 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
%
At 30 September 2024
Credit quality*
High
64,545,794
36,542
0
0
64,582,336
75.4%
Medium
12,197,436
2,151,162
0
0
14,348,598
16.7%
Low
1,345,142
4,131,574
0
0
5,476,716
6.4%
Credit-impaired
-
-
1,118,642
133,479
1,252,121
1.5%
Total
78,088,372
6,319,278
1,118,642
133,479
85,659,771
100.0%
Impairment charges etc.
Individual
918,388
38.2%
Model-calculated
486,842
20.2%
Management estimates
1,002,405
41.6%
Total
465,612
1,162,211
698,746
81,066
2,407,635
100.0%
At 30 September 2023
Credit quality*
High
61,192,650
92,586
0
0
61,285,236
74.2%
Medium
11,358,636
2,340,945
0
0
13,699,581
16.6%
Low
1,417,311
4,696,335
0
0
6,113,646
7.4%
Credit-impaired
-
-
1,294,997
187,902
1,482,899
1.8%
Total
73,968,597
7,129,866
1,294,997
187,902
82,581,362
100.0%
Impairment charges etc.
Individual
992,529
42.1%
Model-calculated
488,936
20.7%
Management estimates
876,642
37.2%
Total
268,434
1,103,991
863,095
122,587
2,358,107
100.0%
At 31 December 2023
Credit quality*
High
61,641,599
48,040
0
0
61,689,639
74.9%
Medium
11,359,422
2,748,161
0
0
14,107,583
17.1%
Low
1,205,698
3,943,486
0
0
5,149,184
6.2%
Credit-impaired
-
-
1,297,358
161,384
1,458,742
1.8%
Total
74,206,719
6,739,687
1,297,358
161,384
82,405,148
100.0%
Impairment charges etc.
Individual
887,901
38.0%
Model-calculated
496,720
21.3%
Management estimates
949,968
40.7%
Total
399,251
1,062,292
772,194
100,852
2,334,589
100.0%
high
credit quality can be viewed as FSA grades 3 and 2a, medium credit quality as the best part of the FSA grade 2b, while low credit
quality covers the rest of FSA grades 2b and 2c as well as the customers with objective evidence of impairment where losses are
not expected in the most probable scenario. Exposures which are in stage 3 or credit-impaired on initial recognition are those
where losses are expected in the most probable scenario.
Ringkjøbing Landbobank A/S Page 30
Notes
27
Miscellaneous information
The cost/income ratio on page 4 and core earnings and net profit per DKK 1 share on page 5 are
Landbobank up to and including 2017, pro forma for 2018 (as if the merger had taken effect on 1 January 2018) and for the
merged bank from 2019.
30 Sep.
2024
30 Sep.
2023
31 Dec.
2023
Basis of calculation, number of shares
25,760,632
26,945,829
26,732,729
Ringkjøbing Landbobank A/S Page 31
Key figures
Q1-Q3
2024
Q1-Q3
2023
Full year
2023
Summary of income statement (DKK million)
Net interest income
2,036
1,839
2,540
Dividends from shares etc.
119
90
90
Net fee and commission income
763
691
936
Net interest and fee income
2,918
2,620
3,566
Value adjustments
+198
+128
+253
Other operating income
7
5
6
Staff and administration expenses
733
691
939
Amortisation, depreciation and write-downs on intangible and tangible assets
34
24
33
Other operating expenses
8
7
10
Impairment charges for loans and receivables etc.
+2
-6
-6
Profit before tax
2,350
2,025
2,837
Tax
580
484
682
Net profit
1,770
1,541
2,155
30 Sep.
2024
30 Sep.
2023
31 Dec.
2023
Balance sheet key figures (DKK million)
Loans and other receivables at amortised cost
53,887
49,590
50,881
Deposits and other debt including pooled schemes
54,238
52,216
52,626
Subordinated debt
1,795
2,039
2,039
Equity
10,825
10,042
10,451
Balance sheet total
75,531
73,254
73,520
Ringkjøbing Landbobank A/S Page 32
The
Q1-Q3
2024
Q1-Q3
2023
Full year
2023
Capital ratios:
Total capital ratio
%
18.8
21.6
23.0
Tier 1 capital ratio
%
15.6
17.6
18.9
Individual solvency requirement
%
8.9
9.0
9.0
MREL requirement fixed by the Danish FSA
%
18.9
17.9
17.9
MREL capital ratio
%
27.2
27.7
28.9
Earnings:
Return on equity before tax
%
22.1
20.9
28.7
Return on equity after tax
%
16.6
15.9
21.8
Income/cost ratio
DKK
4.04
3.78
3.87
Cost/income ratio
%
24.8
25.4
25.2
Return on assets
%
2.3
2.1
2.9
Market risk:
Interest rate risk
%
0.8
0.5
0.5
Foreign exchange position
%
1.2
1.1
0.6
Foreign exchange risk
%
0.0
0.0
0.0
Liquidity risk:
Liquidity Coverage Ratio (LCR)
%
213.0
236.5
254.0
Net Stable Funding Ratio (NSFR)
%
118.0
121.0
122.7
Loans and impairments thereon relative to deposits
%
103.7
99.3
100.9
Credit risk:
Loans relative to
5.0
4.9
4.9
Growth in loans
%
6.2
1.8
5.0
Total large exposures (<175%)
%
137.7
126.2
116.9
Cumulative impairment ratio
%
3.8
4.0
3.9
Impairment ratio
%
-0.00
0.01
0.01
Proportion of receivables at reduced interest
%
0.1
0.3
0.2
Share return:
Earnings per share
1/3
DKK
6,743
5,566
7,814
Book value per share
1/2
DKK
42,022
37,268
39,095
Dividend per share
1
DKK
0
0
1,000
Market price relative to earnings per share
1/3
15.7
18.3
12.7
Market price relative to book value per share
1/2
2.5
2.7
2.5
1
Calculated on the basis of a denomination of DKK 100 per share.
2
Calculated on the basis of number of shares in circulation at the end of the period.
3
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 and the end of the period.
Ringkjøbing Landbobank A/S Page 33
Management statement
The board of directors and the general management have today discussed and approved the quarterly report of Ringkjøbing
Landbobank A/S for the period 1 January to 30 September 2024.
The quarterly report is drawn up in accordance with statutory requirements, including the provisions of the Danish Financial
Business Act and other Danish disclosure requirements for listed financial companies. We consider the chosen accounting
policies to be appropriate and the estimates made responsible, so that the quarterly report provides a true and fair view of
the
period 1 Janu
uncertainties which can affect the bank.
out
procedures corresponding to those required for a review and have thereby checked that the conditions for ongoing
recognition of the profit for the period in the common equity tier 1 capital have been met.
Ringkøbing, 23 October 2024
General management:
John Fisker
CEO
Claus Andersen
General Manager
Jørn Nielsen
General Manager
Carl Pedersen
General Manager
Board of directors:
Martin Krogh Pedersen
Chair
Jacob Møller
Deputy Chair
Morten Jensen
Deputy Chair
Jon Steingrim Johnsen
Anne Kaptain
Karsten Madsen
Lone Rejkjær Söllmann
Lene Weldum
Lisa Munkholm
Employee representative
Nanna G. Snogdal
Employee representative
Martin Wilche
Employee representative
Finn Aaen
Employee representative