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
7 August 2024
Ringkjøbing Landbobank’s interim report for the first half of 2024
The bank’s board of directors and general management have today approved the interim report for the first half
of 2024.
Due to a continued good credit quality and a loss and impairment level that has developed better than originally
budgeted for 2024 and that is expected to continue for the rest of the year, the bank is upwardly adjusting the
expectations for net profit for 2024 to the DKK 2,000-2,350 million range.
Core earnings
(DKK million)
H1 2024
H1 2023
2023
2022
2021
2020
Total core income
2,051
1.796
3,828
2,862
2,433
2,179
Total expenses and depreciation
508
471
963
891
817
788
Core earnings before impairment charges
for loans
1,543
1,325
2,865
1,971
1,616
1,391
Impairment charges for loans etc.
+1
-1
-1
-2
-68
-223
Core earnings
1,544
1,324
2,864
1,969
1,548
1,168
Result for the portfolio etc.
+30
-28
-7
-69
+7
-9
Amortisation and write-downs on intangible
assets
10
10
20
20
17
15
Tax
383
306
682
385
309
224
Net profit
1,181
980
2,155
1,495
1,229
920
Highlights of the first half of 2024
• The net profit is DKK 1,181 million, equivalent to a 22% p.a. return on equity
• Earnings per share – measured on net profit – increase by 25%
• Core income increases by 14% to DKK 2,051 million
• Costs increase by 8%, and the cost/income ratio decreases to 24.8%
• In the second quarter of 2024, the bank carried impairment charges of DKK 1 million to income based on
strong credit quality while, in the first half of 2024, the total account for impairment charges increased by
DKK 39 million
• Highly satisfactory increase in customer numbers and growth of 5% in loans, 6% in deposits and 18% in
funds in custody accounts etc.
• Employee wellbeing and satisfaction at their highest levels ever
• The expected result for 2024 is upwardly adjusted to the DKK 2,000-2,350 million range
Yours sincerely
Ringkjøbing Landbobank
John Fisker
CEO
Ringkjøbing Landbobank A/S Page 0
Financial review
I N T E R I M R E P O R T
F O R T H E F I R S T H A L F O F 2 0 2 4
Ringkjøbing Landbobank A/S Page 1
Contents
Page
2 Interim report highlights
2 Main and key figures
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 Main figures
32 The Da
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
Interim report highlights
• The net profit is DKK 1,181 million, equivalent to a 22% p.a. return on equity
• Earnings per share - measured on net profit - increase by 25%
• Core income increases by 14% to DKK 2,051 million
• Costs increase by 8%, and the cost/income ratio decreases to 24.8%
• In the second quarter of 2024, the bank carried impairment charges of DKK 1 million to income based on strong credit
quality while, in the first half of 2024, the total account for impairment charges increased by DKK 39 million
• Highly satisfactory increase in customer numbers and growth of 5% in loans, 6% in deposits and 18% in funds in custody
accounts etc.
• Employee wellbeing and satisfaction at their highest levels ever
• The expected result for 2024 is upwardly adjusted to the DKK 2,000-2,350 million range
Highlights for the bank (DKK million)
H1 2024
H1 2023
2023
2022
2021
2020
Total core income
2,051
1,796
3,828
2,862
2,433
2,179
Total expenses and depreciation
508
471
963
891
817
788
Core earnings before impairment charges
for loans
1,543
1,325
2,865
1,971
1,616
1,391
Impairment charges for loans etc.
+1
-1
-1
-2
-68
-223
Core earnings
1,544
1,324
2,864
1,969
1,548
1,168
Result for the portfolio etc.
+30
-28
-7
-69
+7
-9
Amortisation and write-downs on intangible
assets
10
10
20
20
17
15
Tax
383
306
682
385
309
224
Net profit
1,181
980
2,155
1,495
1,229
920
Equity
10,593
9,647
10,451
9,295
8,723
8,146
Deposits including pooled schemes
53,818
50,799
52,626
48,700
43,740
39,639
Loans
52,535
49,996
50,881
48,342
41,179
36,241
Balance sheet total
75,616
71,012
73,520
68,980
60,357
54,862
Guarantees
7,090
7,216
6,465
7,570
10,270
9,812
Financial ratios for the bank (percent)
Net profit / average equity
22.4
20.7
21.8
16.6
14.6
11.7
Cost/income ratio
24.8
26.2
25.2
31.1
33.6
36.2
Common equity tier 1 capital ratio
15.5
17.7
18.9
17.4
17.6
17.5
Total capital ratio
19.3
20.7
23.0
21.6
22.3
21.1
MREL capital ratio
28.0
27.5
28.9
28.9
27.8
26.7
Key figures per DKK 1 share (DKK)
Core earnings
59.2
48.8
107.1
71.5
54.4
40.2
Net profit
45.3
36.2
80.6
54.3
43.2
31.6
Book value
406.2
355.8
391.0
337.3
306.8
280.2
Share price, end of period
1,166.0
977.5
991.5
948.0
878.0
554.0
Main and key figures
Ringkjøbing Landbobank A/S Page 3
Core earnings
Core income
Interest
Net interest income was DKK 1,368 million in the first half
of 2024 compared to DKK 1,213 million in 2023, an
increase of 13%.
In the first six months of the year, as expected, the bank
experienced continued migration of deposits to savings
and high-interest accounts, which has reduced the
deposit margin. In addition, t
been under continuous pressure in 2024.
The above developments were partly mitigated by a
positive development in both loans and deposits
compared to the end of June 2023, with increases of
5.1% and 5.9% respectively. The increases in the first half
of 2024 were 3.3% for loans and 2.3% for deposits. The
increase in lending was broadly based and relates both to
niches and to retail.
Overall, net interest decreased from DKK 691 million in
the first quarter of 2024 to DKK 677 million in the second
quarter of 2024.
With effect from 25 July 2024, the bank reduced the
interest rates on its loans and deposits by up to 0.25
percentage point and, in the second quarter of 2024,
reduced the interest rate on home purchase loans.
The effect of the interest rate reductions will put
additional pressure on the interest margin in the second
half of 2024.
Fee, commission, and foreign exchange income
assessed as one item, a
focus on private banking and other asset management.
Total income from these three items amounted to DKK
261 million in the first half of 2024, compared to DKK 225
million in 2023, an increase of 16%. 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 half of the
year.
Funds in custody accounts etc.
(DKK million)
30 June
2024
30 June
2023
31 Dec.
2023
Custody account holdings
97,228
83,413
87,165
Deposits in pooled schemes
6,594
5,315
5,845
Letpension/PFA Pension
5,413
4,200
4,666
Total
109,235
92,928
97,676
million in the
half-year, compared to DKK 121 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 half of 2024
was DKK 64 million compared to DKK 57 million from this
source in 2023, driven by the continued increase in
customer numbers and the return to normality for
income.
Overall fee, commission, and foreign exchange income
amounted to DKK 552 million in the first half of 2024,
compared to DKK 496 million in 2023.
Net fee, commission, and foreign exchange income
(DKK million)
H1
2024
H1
2023
2023
Securities trading
100
80
159
Asset management and custody
accounts
117
107
218
Payment handling
64
57
126
Loan fees
34
38
79
Guarantee and mortgage credit
commission etc.
135
121
248
Pension and insurance commission
40
39
77
Other fees and commission
18
16
29
Foreign exchange income
44
38
77
Total
552
496
1,013
Sector shares and other operating income
Total earnings from banking sector shares amounted to
DKK 128 million in the first half of the year, compared to
DKK 86 million in 2023. Earnings in DLR Kredit and PRAS
improved, based on the higher interest rate level
compared to 2023. There was also a sound development
in earnings in BankInvest. Finally, DKK 5 million of the
DKK 128 million is non-recurring, as the amount derives
from the sale of the last shares in Visa.
Other operating income in the half-year amounted to DKK
income relates to a non-recurring payment from Visa.
Ringkjøbing Landbobank A/S Page 4
Core income
Total core income in the first half-year increased by 14%
from DKK 1,796 million in 2023 to DKK 2,051 million in
2024.
Expenses, depreciation, and write-downs
Total expenses including depreciation and write-downs
on tangible assets amounted to DKK 508 million in the
first half of 2024 compared to DKK 471 million in 2023,
an increase of 8%, which is also the expected rate of
increase for the full year 2024.
The cost increase reflects higher staff costs and higher IT
The cost/income ratio was 24.8% in the first half of the
year, compared to 26.2% in 2023.
Impairment charges for loans etc.
charges in the first half of 2024 was satisfactory and
better than expected. The item shows income of DKK 1
million for the half-year. Losses and impairment charges
are thus around DKK 0 million for the tenth consecutive
quarter.
These results were achieved without a simultaneous
charges. From the end of 2021 to the end of the second
charges thus increased from DKK 2,283 million to DKK
2,373 million.
This reflects that actual net losses have been very
modest during the last ten quarters and less than the
ongoing interest accruing on loans subject to individual
impairment charges. Actual losses in the first half of the
year remain very modest and, after offsetting against
amounts received on claims previously written off, the
item contributes net income of the order of DKK 10
million.
The bank still assesses the quality of its loan portfolio as
good. In the first half of 2024, the bank was thus able to
reduce the individual impairment charges for stage 3
customers from DKK 715 million at the end of the first
half of 2023 to DKK 674 million at the end of 2023 and to
DKK 600 million at the end of the first half of 2024. In the
same period there was a significant increase in the
-calculated
impairment charges for stage 1 customers and
management estimates.
portfolio of loans to both personal and business
customers.
Ringkjøbing Landbobank A/S Page 5
The bank remains aware of its exposure to real property
financing and any delayed effects of the significant
interest rate increases in 2022 and 2023. In the past
quarter, the Danish FSA completed a general thematic
companies. The FSA found no need for new individual
impairment charges for these customers, and identified
no new weak customers or changes to credit quality
ratings. The bank considers that the credit quality within
the segment remains satisfactory. Note that almost 80%
of
granted without prior debt.
production generally delivered healthy operating results
for 2023 and generally satisfactory results are expected
for 2024. The bank has taken note of the political
agreement from June 2024 on a gradual introduction of
carbon tax on agriculture from 2030. The present
assessment is that the total management estimates
related to agriculture take account of the risks associated
with the introduction of the new tax.
Despite market expectations of a continued decline in
interest rates in 2024 and 2025, the bank believes that
there is still a risk of delayed negative effects on the
economy resulting from the interest rate increases in
2022 and 2023. The bank has made significant
management estimates to counter these risks.
The total management estimates were DKK 952 million at
the end of the half-year 2024.
Loans with suspended interest amounted to DKK 68
million at the end of June 2024, compared to DKK 120
million at the end of 2023.
Core earnings
Core earnings in the first half of 2024 totalled DKK 1,544
million, an increase of 17%.
Core earnings
(DKK million)
H1
2024
H1
2023
2023
Total core income
2,051
1,796
3,828
Total expenses and depreciation
508
471
963
Core earnings before impairment
charges
1,543
1,325
2,865
Impairment charges for loans etc.
+1
-1
-1
Core earnings
1,544
1,324
2,864
Earnings per share
they develop.
Core earnings per DKK 1 share were DKK 59.2 for the first
half of 2024 compared to DKK 48.8 in 2023, and net profit
also per DKK 1 share was DKK 45.3 in the first half of
2024 compared to DKK 36.2 in 2023.
are
buyback programmes thus had a positive effect on the
key figures.
Ringkjøbing Landbobank A/S Page 6
Result for the portfolio etc.
The result for the portfolio etc. including portfolio funding
costs was positive by DKK 30 million net for the first six
months of the year, compared to a negative result of DKK
28 million net for the first six months of 2023.
The positive result for the portfolio is partly attributable to
-term bonds
and a narrowing credit spread for certain corporate
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 10 million in the first half of 2024,
unchanged relative to 2023.
Profit before and after tax
The profit before tax was DKK 1,564 million, equivalent to
a 29.7% p.a. return on average equity.
The profit after tax was DKK 1,181 million, equivalent to a
22.4% p.a. return on average equity.
On 1 January 2024, the corporate tax rate for financial
undertakings increased to 26.0% from the 25.2%
applicable for 2023.
The effective tax rate was 24.5% in the first half of 2024,
compared to 23.8% in the first half of 2023.
Balance sheet items and contingent liabilities
million at the end of June 2024, compared to DKK 71,012
million the year before.
Loans increased 5.1% in the period June 2023 to June
2024, from DKK 49,996 million to DKK 52,535 million. The
increase in loans in the first half of 2024 was DKK 1,654
million, equivalent to 3.3%.
Deposits including pooled schemes increased 5.9%, from
DKK 50,799 million at the end of June 2023 to DKK
53,818 million at the end of June 2024. The increase in
deposits in the first half of 2024 was DKK 1,191 million,
equivalent to 2.3%.
amounted to DKK 7,090 million at the end of June 2024,
compared to DKK 7,216 million at the end of June 2023
and DKK 6,465 million at the end of December 2023.
Credit intermediation
In addition to the traditional bank loans shown on the
balance sheet, the bank also arranges mortgage loans on
behalf of both Totalkredit and DLR Kredit.
intermediation increased by 3.1%
compared to the end of June 2023 and by 2.1% in the first
half of 2024.
The development is shown in the following summary:
Total credit intermediation
(DKK million)
30 June
2024
30 June
2023
31 Dec.
2023
Loans etc.
52,535
49,996
50,881
Mortgage credit - Totalkredit
47,363
46,144
46,766
Mortgage credit - DLR Kredit a.o
9,536
10,007
9,551
Total
109,434
106,147
107,198
Securities and market risk
The bank measures its portfolio of securities at fair value.
the end of June 2024, with DKK 55 million in listed shares
and investment fund certificates and DKK 1,360 million in
sector shares etc., mainly in the companies DLR Kredit, BI
Holding and PRAS.
The bond portfolio amounted to DKK 7,748 million on 30
June 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 computed
as 0.9%
Value at Risk model (computed with a 10-day horizon and
99% probability) was as follows in the first half of 2024:
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
12.6
0.12
Average risk of loss
15.5
0.15
End-of-period risk of loss
12.8
0.12
rate risk, listed shares etc. and foreign currency remains
at a moderate level, and this policy will continue.
Liquidity
-term funding
liabilities total DKK 2.8 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
Ringkjøbing Landbobank A/S Page 7
months and listed securities totalling DKK 13.5 billion.
This means the total excess cover is DKK 10.7 billion.
Ringkjøbing Landbo
schemes) and equity exceeded its loans by DKK 5.3
billion on 30 June 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 0.8 billion can be
disregarded in terms of liquidity.
The bank strengthened its liquidity in the first half of
2024, partly by entering into a EUR 100 million loan
agreement with the European Investment Bank and partly
through new issues of non-preferred senior capital and
preferred senior capital equivalent to a total of DKK 1,152
million in the first six months of the year. See also
In terms of liquidity, the bank must comply with the
statutory requirement of at least 100% for both the
liquidity ratios LCR and NSFR.
On 30 June 2024 the
119%. 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
own shares bought must be subtracted. After this, equity
at the end of June 2024 was DKK 10,593 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 greatest
effect in the fourth quarter of 2024.
were 19.3% and 15.5% respectively at the end of June
2024.
Capital ratios
(%)
30 June
2024
30 June
2023
31 Dec.
2023
Common equity tier 1 capital ratio
15.5
17.7
18.9
Tier 1 capital ratio
15.5
17.7
18.9
Total capital ratio
19.3
20.7
23.0
MREL capital ratio
28.0
27.5
28.9
Calculated without the IFRS 9 transition programmes,
capital ratio was 19.0% and the tier 1 capital ratio 15.2%
on 30 June 2024.
The individual solvency requirement at the end of June
2024 was calculated as 8.9%. The solvency requirement
includes 0.1 percentage point resulting from operational
estate area in the second quarter of 2024.
The capital conservation buffer of 2.5% and the
countercyclical buffer also of 2.5% should be added to
this.
The sector-specific systemic buffer for exposures to real
estate companies was activated as from 30 June 2024 at
a rate of 7%, see below.
Real estate companies are firms engaged in activities
exempt from the buffer. Also exempt from the calculation
is the part of the exposures which is secured and in the 0-
15% loan-to-value range.
The result for the bank of the sector-specific systemic
buffer is an addition of 0.9%.
The total
14.8% at the end of June 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 June
2024, non-preferred senior capital equivalent to DKK 3.8
billion had been issued. In the first half of 2024, the bank
issued non-preferred senior capital equivalent to DKK 928
million - DKK 525 million in the first quarter of 2024 and
DKK 403 million in the second quarter of 2024.
Ringkjøbing Landbobank A/S Page 8
At the end of June 2024, the bank had issued preferred
senior capital equivalent to DKK 597 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 interim 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
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.
On 26 June 2024, the bank entered into an agreement to
issue 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, which is unlisted,
was made as a private placement with an institutional
investor.
In addition, early redemption of tier 2 capital of EUR 100
million will take place later in August 2024 subject to the
issued on 22 July 2024.
The issue and early
ongoing capital planning.
The bank expects not to need refinancing of non-
preferred senior capital and tier 2 capital in the rest of
2024. However, with a view to the ongoing capital
planning, non-preferred senior capital and preferred
senior capital may be issued in the remainder of 2024 if
considered opportune.
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 a 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 June 2024, a total of 637,900 shares had been
bought back under the programme (part 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.
thus DKK 26,068,839 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 June
2024
-637,900
Actual number of shares on 30 June 2024
26,068,839
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
H1
2024
H1
2023
2023
2022
Liquidity benchmark
>100%
185.2%
182.1%
224.9%
143.4%
Large exposures
<175%
128.9%
124.7%
116.9%
118.0%
Growth in loans
<20%
5.6%
6.6%
5.0%
17.5%
Real estate exposure
<25%
20.5%
21.2%
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
.
Ratings affirmed the rating
-term bank
deposits and the long-term issuer rating.
In the environmental, social and governance (ESG) area,
the bank is rated, for example, by MSCI, one of th
-
Ringkjøbing Landbobank A/S Page 9
Financial Institution of the Year - for the 9th year in a
row
In June 2024, for the ninth year in a row, Ringkjøbing
Landbobank was awarded the accolade of Financial
Institution of the Year among large and medium-sized
banks. As in previous years, the award was made by
FinansWatch in collaboration with the audit and
consultancy firm EY.
The Financial Institution of the Year award is based on
financial ratios for return on equity, income growth,
solvency, and efficiency.
The award of Financial Institution of the Year is an
acknowledgement of the great effort made by the
employees for the benefit of customers.
Employee wellbeing and satisfaction
As in previous years, the annual survey of employee
wellbeing and satisfaction was conducted during the
second quarter of 2024.
Compared to the 2023 survey, which showed employee
wellbeing and satisfaction at their highest levels since
these surveys began, the 2024 survey shows a further
marginal improvement.
Both the employee wellbeing and satisfaction levels and
the improvement are very positive. High employee
wellbeing and satisfaction help the bank to maintain the
focus on the organic growth strategy. That strategy is the
inspiration to work every single day to create value for
both existing and new customers in their relations with
the bank.
Products
In June 2024, the bank introduced free opening and
safekeeping (zero custody fee) and exemption from
-savings account product
for the rest of 2024 and all of 2025.
The bank wants to support both the continued
development of the share ownership culture in Denmark
and the entrepreneurial package agreed between the
Danish government (the Social Democratic Party, the
Liberal Party, and the Moderates), the Denmark
Democrats, the Liberal Alliance, the Conservative Party,
the Social Liberal Party,
The package includes a further increase in the
contribution limit for stock-savings accounts to DKK
160,000 from 2025.
The bank has also launched a new product, Monthly
Investment, in its mobile banking app. The new product
will transfer a fixed monthly amount chosen by the
customer and subsequently automatically invest it in an
Monthly Investment can be set up directly in the mobile
banking app. Setup and use of the product are free of
charge and instructions to buy are exempt from both
brokerage and fees.
Expected results for 2024
The Bank announced its expectations for 2024 on 17
profit in the range DKK 1.8-2.2 billion.
Due to a continued good credit quality and a loss and
impairment level that has developed better than originally
budgeted for 2024 and is expected to continue for the
rest of the year, the bank is upwardly adjusting the
expectations for net profit for 2024 to the DKK 2.0-2.35
billion range. The expectations are subject to uncertainty
and depends on the developments in the financial
markets and in the macroeconomic conditions.
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, which includes core earnings, net profit, balance sheet items and contingent liabilities, and statement of capital.
Core earnings
(DKK million)
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
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
208
200
207
193
193
185
190
199
196
199
182
170
166
159
156
147
136
152
Income from sector shares etc.
61
67
60
47
45
41
46
38
41
44
47
49
43
40
43
38
35
35
Foreign exchange income
21
23
20
18
19
20
17
18
16
15
15
14
13
16
13
9
9
10
Other operating income
3
0
1
5
0
0
1
0
0
1
0
0
1
4
1
0
1
0
Core income excluding securities trading
970
981
1,005
949
909
807
765
665
643
625
599
569
550
544
534
513
492
502
Securities trading
41
59
38
40
38
42
34
40
41
49
52
34
29
56
32
39
28
39
Total core income
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
255
241
248
231
238
222
229
214
221
207
206
191
195
198
206
179
190
191
Depreciation and write-downs, tangible
assets
3
3
5
3
3
3
5
3
4
1
9
3
4
3
4
5
2
3
Other operating expenses
3
3
2
3
3
2
2
2
1
2
2
2
2
2
2
2
0
4
Total expenses etc.
261
247
255
237
244
227
236
219
226
210
217
196
201
203
212
186
192
198
Core earnings before impairment charges
750
793
788
752
703
622
563
486
458
464
434
407
378
397
354
366
328
343
Impairment charges for loans etc.
+1
0
0
0
0
-1
0
0
-1
-1
-7
-13
-19
-29
-38
-44
-66
-75
Core earnings
751
793
788
752
703
621
563
486
457
463
427
394
359
368
316
322
262
268
Result for the portfolio etc.
+7
+23
+29
-8
-7
-21
+11
-61
-10
-9
+11
-1
+7
-10
+15
+17
+29
-70
Amortisation and write-downs, intangible
assets
5
5
5
5
5
5
5
5
5
5
5
4
4
4
4
3
4
4
Profit before tax
753
811
812
739
691
595
569
420
442
449
433
389
362
354
327
336
287
194
Tax
188
195
198
178
166
140
110
91
94
90
79
87
71
72
64
64
60
36
Net profit
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
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
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
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
10,593
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
75,616
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
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
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
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
9,849
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
14,231
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
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
15.5
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
15.5
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
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
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.
H1
2024
DKK 1,000
H1
2023
DKK 1,000
Full year
2023
DKK 1,000
1
Interest income
1,919,485
1,469,582
3,325,508
2
Interest expenses
556,681
294,637
785,976
Net interest income
1,362,804
1,174,945
2,539,532
Dividends from shares etc.
118,623
90,094
90,214
3
Fee and commission income
559,588
504,419
1,029,411
3
Fee and commission expenses
51,328
46,701
93,419
Net interest and fee income
1,989,687
1,722,757
3,565,738
4
Value adjustments
+88,683
+49,128
+253,354
Other operating income
2,571
315
5,829
5,6
Staff and administration expenses
495,864
459,812
939,121
Amortisation, depreciation, and write-downs on intangible and
tangible assets
16,123
15,753
33,377
Other operating expenses
5,465
4,968
10,044
7,11
Impairment charges for loans and other receivables etc.
+808
-5,269
-5,792
Results from investments in associated companies and
subsidiaries
0
0
+84
Profit before tax
1,564,297
1,286,398
2,836,671
8
Tax
383,618
306,122
681,449
Net profit
1,180,679
980,276
2,155,222
Other comprehensive income
0
0
0
Total comprehensive income for the period
1,180,679
980,276
2,155,222
Ringkjøbing Landbobank A/S Page 13
Core earnings
Note
no.
H1
2024
DKK 1,000
H1
2023
DKK 1,000
Full year
2023
DKK 1,000
Net interest income
1,368,130
1,212,747
2,615,661
3
Net fee and commission income excluding securities trading
408,292
378,295
777,611
Income from sector shares etc.
127,712
86,451
192,974
3
Foreign exchange income
43,854
38,543
77,192
Other operating income
2,571
315
5,829
Total core income excluding securities trading
1,950,559
1,716,351
3,669,267
3
Securities trading
99,968
79,423
158,381
Total core income
2,050,527
1,795,774
3,827,648
5,6
Staff and administration expenses
495,864
459,812
939,121
Depreciation and write-downs on tangible assets
6,369
5,999
13,868
Other operating expenses
5,465
4,968
10,044
Total expenses etc.
507,698
470,779
963,033
Core earnings before impairment charges for loans
1,542,829
1,324,995
2,864,615
7
Impairment charges for loans and other receivables etc.
+808
-763
-1,286
Core earnings
1,543,637
1,324,232
2,863,329
Result for the portfolio etc.
+30,414
-28,080
-7,149
Amortisation and write-downs on intangible assets
9,754
9,754
19,509
Profit before tax
1,564,297
1,286,398
2,836,671
8
Tax
383,618
306,122
681,449
Net profit
1,180,679
980,276
2,155,222
Ringkjøbing Landbobank A/S Page 14
Balance sheet
Note
no.
30 June
2024
DKK 1,000
30 June
2023
DKK 1,000
31 December
2023
DKK 1,000
Assets
Cash in hand and demand deposits with central banks
5,077,467
3,361,974
4,913,795
9
Receivables from credit institutions and central banks
243,186
548,873
243,490
10,11,12
Total loans and other receivables at amortised cost
52,535,426
49,995,657
50,880,954
Loans and other receivables at amortised cost
51,784,509
49,037,669
50,071,202
Wind turbine loans etc. with direct funding
750,917
957,988
809,752
13
Bonds at fair value
7,747,987
8,331,051
8,126,555
14
Shares etc.
1,415,379
1,375,472
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
6,593,548
5,314,808
5,845,400
16
Intangible assets
1,002,407
1,033,409
1,012,161
Total land and buildings
206,524
218,379
214,031
Investment properties
829
3,667
3,667
Domicile properties
192,607
196,440
194,684
Domicile properties (leasing)
13,088
18,272
15,680
Other tangible assets
15,757
14,849
16,140
Current tax assets
0
0
42,753
Deferred tax assets
14,737
43,305
20,006
Temporary assets
100
4,000
350
Other assets
730,512
738,159
702,186
Prepayments
20,543
19,215
18,326
Total assets
75,616,121
71,011,614
73,519,640
Ringkjøbing Landbobank A/S Page 15
Balance sheet
Note
no.
30 June
2024
DKK 1,000
30 June
2023
DKK 1,000
31 December
2023
DKK 1,000
Liabilities and equity
17
Debt to credit institutions and central banks
2,018,136
3,128,926
2,209,887
Total deposits and other debt
53,817,895
50,798,600
52,626,495
18
Deposits and other debt
47,224,347
45,483,792
46,781,095
15
Deposits in pooled schemes
6,593,548
5,314,808
5,845,400
19
Issued bonds at amortised cost
5,834,217
4,647,123
5,063,778
Preferred senior capital
2,116,857
1,508,219
2,251,655
Non-preferred senior capital
3,717,360
3,138,904
2,812,123
Current tax liabilities
249,789
254,962
0
Other liabilities
984,138
905,204
1,042,253
Deferred income
185
55
240
Total debt
62,904,360
59,734,870
60,942,653
11
Provisions for losses on guarantees
50,952
59,997
60,025
11
Other provisions for liabilities
26,897
26,861
26,648
Total provisions for liabilities
77,849
86,858
86,673
Tier 2 capital
2,040,600
1,542,692
2,039,110
20
Total subordinated debt
2,040,600
1,542,692
2,039,110
21
Share capital
26,707
27,491
27,491
Net revaluation reserve under the equity method
475
391
475
Retained earnings
10,566,130
9,619,312
10,146,325
Proposed dividend etc.
-
-
276,913
Total shareholders’ equity
10,593,312
9,647,194
10,451,204
Total liabilities and equity
75,616,121
71,011,614
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 June 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
1,180,679
1,180,679
Total comprehensive income
0
0
1,180,679
0
1,180,679
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
-1,414,190
-1,414,190
Sale of own shares
624,063
624,063
Other equity transactions (employee shares)
19,276
19,276
Total transactions with shareholders
-784
0
-760,874
-276,913
-1,038,571
Shareholders’ equity on the balance sheet date
26,707
475
10,566,130
0
10,593,312
At 30 June 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
980,276
980,276
Total comprehensive income
0
0
980,276
0
980,276
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
-1,074,501
-1,074,501
Sale of own shares
628,632
628,632
Other equity transactions (employee shares)
11,969
11,969
Total transactions with shareholders
-889
0
-426,297
-200,658
-627,844
Shareholders’ equity on the balance sheet date
27,491
391
9,619,312
0
9,647,194
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 June
2024
DKK 1,000
30 June
2023
DKK 1,000
31 December
2023
DKK 1,000
Credit risk
43,827,066
41,716,483
41,658,951
Market risk
1,600,046
1,381,936
1,532,667
Operational risk
5,541,119
4,528,649
5,541,119
Total risk exposure
50,968,231
47,627,068
48,732,737
10,593,312
9,647,194
10,451,204
Proposed dividend etc.
-
-
-276,913
Deduction for expected distributions
-767,442
-171,548
-
Addition for IFRS 9 transitional arrangements
202,030
321,087
359,171
Deduction for insufficient coverage of non-performing exposures
-23,582
-12,666
-5,680
Deduction for the sum of equity investments etc. above 10%
-246,101
-222,583
-188,016
Deduction for prudent valuation
-16,476
-15,751
-16,095
Deduction for intangible assets
-1,002,407
-1,033,409
-1,012,162
Deferred tax on intangible assets
13,717
16,917
15,629
Deferred tax on tangible assets etc.
-28,453
-60,222
-35,634
Deduction of amount of share buyback programme
-1,525,000
-385,000
-770,000
Actual utilisation of amount of share buyback programme
756,969
378,812
749,299
Deduction for trading limit for own shares
-15,000
-55,000
-15,000
Actual utilisation of the trading limit for own shares
5
22
0
Deduction for indirect ownership of own shares
-25,012
-
-30,623
Common equity tier 1
7,916,560
8,407,853
9,225,180
Tier 1 capital
7,916,560
8,407,853
9,225,180
Tier 2 capital
2,040,511
1,544,730
2,040,628
Deduction for the sum of equity investments etc. above 10%
-107,641
-105,130
-78,297
Total capital
9,849,430
9,847,453
11,187,511
Contractual senior funding
596,612
-
-
Non-preferred senior capital
3,820,426
3,265,238
2,909,546
MREL capital
14,266,468
13,112,691
14,097,057
Common equity tier 1 capital ratio (%)
15.5
17.7
18.9
Tier 1 capital ratio (%)
15.5
17.7
18.9
Total capital ratio (%)
19.3
20.7
23.0
MREL capital ratio (%)
28.0
27.5
28.9
Pillar I capital requirements
4,077,458
3,810,165
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 (%)
0.9
-
-
14.8
13.9
14.0
Excess cover in percentage points relative to individual solvency
requirement
10.4
11.7
14.0
Excess cover in percentage points relative to total requirement for total
capital
4.5
6.8
9.0
Subordination requirement (%) fixed by the Danish FSA
22.8
-
-
Excess cover in percentage points relative to the subordination
requirement
5.2
-
-
MREL requirement (%) fixed by the Danish FSA
18.9
17.9
17.9
Excess cover in percentage points relative to MREL requirement
9.1
9.6
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 June 2024
Risk exposure amount
50,968
50,968
Capital requirement
22.8
11,621
18.9
9,633
Buffer requirement
-
-
5.9
2,983
Total capital requirement
22.8
11,621
24.8
12,616
Total capital
9,850
9,850
Non-preferred senior capital
3,820
3,820
Preferred senior capital
-
597
Total cover
26.8
13,670
28.0
14,267
Calculated excess cover
4.0
2,049
3.2
1,651
Ringkjøbing Landbobank A/S Page 19
Notes
Note
no.
H1
2024
DKK 1,000
H1
2023
DKK 1,000
Full year
2023
DKK 1,000
1
Interest income
Receivables from credit institutions and central banks net
76,212
40,027
121,484
Loans and other receivables
1,712,679
1,357,640
3,008,420
Discounts amortisation concerning loans taken over etc.
0
4,506
4,506
Loans interest on the impaired part of loans
-29,756
-31,567
-63,594
Bonds net
155,440
95,590
235,514
Total derivative financial instruments net
4,910
3,120
18,614
of which currency contracts net
-4,647
5,972
8,251
of which interest-rate contracts net
9,557
-2,852
10,363
Other interest income
0
266
564
Total interest income
1,919,485
1,469,582
3,325,508
of which interest income from collateralised repurchase agreements/
2,823
856
3,731
2
Interest expenses
Debt to credit institutions and central banks net
7,810
14,317
36,453
Deposits and other debt net
378,536
163,352
476,184
Issued bonds
110,947
75,471
177,930
Subordinated debt
58,994
41,323
94,645
Other interest expenses
394
174
764
Total interest expenses
556,681
294,637
785,976
3
Gross fee and commission income
Securities trading
107,662
86,557
171,585
Asset management and custody accounts
125,394
114,789
233,776
Payment handling
90,628
82,601
176,097
Loan fees
38,994
41,149
86,870
Guarantee commission and mortgage credit commission etc.
135,208
121,336
248,293
Pension and insurance commission
39,851
38,835
76,795
Other fees and commission
21,851
19,152
35,995
Total gross fee and commission income
559,588
504,419
1,029,411
Net fee and commission income
Securities trading
99,968
79,423
158,381
Asset management and custody accounts
116,737
107,155
218,334
Payment handling
63,952
57,181
125,794
Loan fees
34,520
37,436
79,078
Guarantee commission and mortgage credit commission etc.
135,208
121,336
248,293
Pension and insurance commission
39,851
38,835
76,795
Other fees and commission
18,024
16,352
29,317
Total net fee and commission income
508,260
457,718
935,992
Foreign exchange income
43,854
38,543
77,192
Total net fee, commission and foreign exchange income
552,114
496,261
1,013,184
Ringkjøbing Landbobank A/S Page 20
Notes
Note
no.
H1
2024
DKK 1,000
H1
2023
DKK 1,000
Full year
2023
DKK 1,000
4
Value adjustments
Other loans and receivables
-1,652
-225
8,835
Bonds
14,199
18,393
107,217
Shares etc.
20,605
-1,767
110,006
Investment properties
6,112
0
0
Foreign exchange
43,854
38,543
77,192
Total derivative financial instruments
6,970
13,234
18,468
of which currency contracts
-5,395
-466
24,727
of which interest-rate contracts
12,364
13,700
-6,261
of which share contracts
1
0
2
Assets linked to pooled schemes
406,498
3,289
507,479
Deposits in pooled schemes
-406,498
-3,289
-507,479
Issued bonds etc.
5,924
-17,124
-58,354
Debt to credit institutions
-7,329
-1,926
-10,010
Total value adjustments
88,683
49,128
253,354
The part of value adjustments relating to the fair value hedging accounts
below is distributed as follows
Currency contracts
-6,352
62
27,868
Interest-rate contracts
9,400
18,415
30,050
Other loans and receivables
-1,643
573
10,445
Debt to credit institutions
-7,329
-4,436
-10,010
Issued bonds
5,924
-12,688
-53,917
Tier 2 capital
0
-1,926
-4,436
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
14,468
14,034
28,411
General management
11,912
11,454
21,768
Board of directors
2,545
2,580
5,665
11
0
978
Total staff expenses
286,773
260,474
528,580
Salaries
221,561
198,148
406,093
Pensions
24,368
22,552
46,464
Social security expenses
2,884
2,225
6,053
Costs depending on number of staff
37,960
37,549
69,970
Other administration expenses
194,623
185,304
382,130
Total staff and administration expenses
495,864
459,812
939,121
6
Number of full-time employees
Average number of employees during the period converted into full-time
equivalents
663
647
653
Number of full-time employees at the end of the period
660
643
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
38,888
52,072
32,418
Actual realised net losses
-9,940
-15,236
36,968
Interest on the impaired part of loans
-29,756
-31,567
-63,594
Total impairment charges for loans and other receivables etc.
-808
5,269
5,792
Ringkjøbing Landbobank A/S Page 21
Notes
Note
no.
H1
2024
DKK 1,000
H1
2023
DKK 1,000
Full year
2023
DKK 1,000
8
Tax
Tax calculated on income for the year
378,349
326,394
675,491
Adjustment of deferred tax
5,269
-18,940
3,643
Effect on deferred tax of change in tax rate
0
-1,332
-616
Adjustment of tax calculated for previous years
0
0
2,931
Total tax
383,618
306,122
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*
-1.5
-1.3
-1.3
Effect of change in tax rate
0.0
-0.1
0.0
Adjustment regarding previous years etc.
0.0
0.0
0.1
Total effective tax rate
24.5
23.8
24.0
* Primarily value adjustment of and dividends from sector shares.
30 June
2024
30 June
2023
31 December
2023
DKK 1,000
DKK 1,000
DKK 1,000
9
Receivables from credit institutions and central banks
Demand
243,186
548,873
243,490
Total receivables from credit institutions and central banks
243,186
548,873
243,490
10
Loans and other receivables at amortised cost
Demand
9,141,420
9,423,397
7,978,024
Up to and including 3 months
5,337,677
4,120,135
2,968,599
More than 3 months and up to and including 1 year
7,476,903
7,886,406
10,578,051
More than 1 year and up to and including 5 years
13,260,496
11,847,979
12,396,714
More than 5 years
17,318,930
16,717,740
16,959,566
Total loans and other receivables at amortised cost
52,535,426
49,995,657
50,880,954
of which collateralised repurchase agreements/reverse repo transactions
122,008
341,965
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 June 2024
Loans and other receivables at amortised cost
452,727
1,081,082
761,819
2,295,628
Guarantees
6,025
9,912
35,015
50,952
Unutilised credit facilities and loan undertakings
11,791
15,106
0
26,897
Total impairment charges and provisions by stages
470,543
1,106,100
796,834
2,373,477
of which management estimates
301,839
453,380
196,355
951,574
At 30 June 2023
Loans and other receivables at amortised cost
249,178
1,069,398
948,809
2,267,385
Guarantees
5,214
13,239
41,544
59,997
Unutilised credit facilities and loan undertakings
9,045
17,816
0
26,861
Total impairment charges and provisions by stages
263,437
1,100,453
990,353
2,354,243
of which management estimates
130,982
436,336
275,505
842,823
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 June
2024
30 June
2023
31 December
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
-13,454
-25,815
-54,491
Total stage 3 impairment charges and provisions taken over
87,398
129,528
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 June 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
84,882
33,600
44,807
163,289
163,289
Reversed impairment charges and provisions
for repaid accounts
-45,278
-89,606
-96,267
-231,151
-231,151
Migration of impairment charges and
provisions at beginning of period to stage 1
145,520
-131,829
-13,691
0
-
Migration of impairment charges and
provisions at beginning of period to stage 2
-13,493
76,620
-63,127
0
-
Migration of impairment charges and
provisions at beginning of period to stage 3
-347
-41,168
41,515
0
-
Impairment charges and provisions during the
year resulting from credit risk change
-99,992
196,191
17,254
113,453
113,453
Previously written down, now definitively lost
-
-
-6,703
-6,703
-
Lost, not previously written down
-
-
-
-
1,910
Received on claims previously written off
-
-
-
-
-18,553
Interest on the impaired part of loans
-
-
-
-
-29,756
Total impairment charges and provisions
470,543
1,106,100
796,834
2,373,477
-808
of which regarding credit institutions etc.
559
0
0
559
34
At 30 June 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
48,436
51,979
56,191
156,606
156,606
Reversed impairment charges and provisions
for repaid accounts
-31,888
-88,949
-61,473
-182,310
-182,310
Migration of impairment charges and
provisions at beginning of period to stage 1
142,694
-140,087
-2,607
0
-
Migration of impairment charges and
provisions at beginning of period to stage 2
-9,934
36,995
-27,061
0
-
Migration of impairment charges and
provisions at beginning of period to stage 3
-229
-14,923
15,152
0
-
Impairment charges and provisions during the
year resulting from credit risk change
-112,402
214,856
-13,531
88,923
88,923
Previously written down, now definitively lost
-
-
-11,147
-11,147
-
Lost, not previously written down
-
-
-
-
3,314
Received on claims previously written off
-
-
-
-
-29,697
Interest on the impaired part of loans
-
-
-
-
-31,567
Total impairment charges and provisions
263,437
1,100,453
990,353
2,354,243
5,269
of which regarding credit institutions etc.
1,029
0
0
1,029
638
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 June
2024
DKK 1,000
30 June
2023
DKK 1,000
31 December
2023
DKK 1,000
12
Suspended interest
Loans and other receivables with suspended interest on the balance sheet
date
67,710
81,056
119,789
13
Bonds at fair value
Government bonds
0
963,710
367,089
Mortgage credit bonds
6,132,791
6,713,940
6,246,164
Other bonds
1,615,196
653,401
1,513,302
Total bonds at fair value
7,747,987
8,331,051
8,126,555
Bonds at fair value by rating classes
Percent
Percent
Percent
Aaa/AAA
79
88
82
A1/A+
1
0
1
A2/A
2
0
1
A3/A-
1
3
3
Baa1/BBB+
1
1
1
Baa2/BBB
1
1
2
Baas3/BBB-
1
0
0
Ba1/BB+
2
0
0
Not rated
12
7
10
Total
100
100
100
. If
an issue has more than one rating, the lowest is used.
Ringkjøbing Landbobank A/S Page 25
Notes
Note
no.
30 June
2024
DKK 1,000
30 June
2023
DKK 1,000
31 December
2023
DKK 1,000
14
Shares etc.
Listed on Nasdaq Copenhagen
50,780
52,910
45,377
Investment fund certificates
4,375
11,150
8,911
Unlisted shares at fair value
11,339
8,678
11,339
Sector shares at fair value
1,348,885
1,302,734
1,405,318
Total shares etc.
1,415,379
1,375,472
1,470,945
15
Assets linked to pooled schemes
Cash deposits
8,426
4,784
136,038
Bonds:
Other bonds
1,408,498
1,390,302
1,532,816
Total bonds
1,408,498
1,390,302
1,532,816
Shares:
Other shares
376,448
755,556
541,782
Investment fund certificates
4,825,741
3,185,995
3,634,764
Total shares
5,202,189
3,941,551
4,176,546
Other items
-25,565
-21,829
0
Total assets linked to pooled schemes
6,593,548
5,314,808
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
9,754
9,754
19,509
Write-downs for the period
0
0
11,493
Total amortisation on the balance sheet date
115,936
84,934
106,182
Total customer relationships on the balance sheet date
79,152
110,154
88,906
Total intangible assets on the balance sheet date
1,002,407
1,033,409
1,012,161
17
Debt to credit institutions and central banks
Demand
708,535
762,858
849,133
Up to and including 3 months
558,684
930,912
12,980
More than 3 months and up to and including 1 year
8,038
127,452
556,329
More than 1 year and up to and including 5 years
400,664
733,167
395,902
More than 5 years
342,215
574,537
395,543
Total debt to credit institutions and central banks
2,018,136
3,128,926
2,209,887
Ringkjøbing Landbobank A/S Page 26
Notes
Note
no.
30 June
2024
DKK 1,000
30 June
2023
DKK 1,000
31 December
2023
DKK 1,000
18
Deposits and other debt
Demand
33,737,363
36,303,558
33,012,187
Deposits and other debt with notice:
Up to and including 3 months
4,218,463
1,843,781
4,572,111
More than 3 months and up to and including 1 year
3,552,249
4,088,053
3,049,221
More than 1 year and up to and including 5 years
2,192,754
594,061
2,895,405
More than 5 years
3,523,518
2,654,339
3,252,171
Total deposits and other debt
47,224,347
45,483,792
46,781,095
of which deposits covered by the Guarantee Fund
56.3%
56.1%
56.0%
Distributed as follows:
Demand
33,795,970
34,199,087
34,115,670
With notice
5,579,587
4,166,999
4,630,822
Time deposits
2,680,398
3,431,894
3,168,922
Long-term deposit agreements
2,009,709
713,765
1,663,875
Special types of deposits
3,158,683
2,972,047
3,201,806
Total deposits and other debt
47,224,347
45,483,792
46,781,095
19
Issued bonds at amortised cost
Up to and including 3 months
743,291
0
372,647
More than 3 months and up to and including 1 year
798,515
372,365
728,180
More than 1 year and up to and including 5 years
3,371,094
3,893,794
3,562,256
More than 5 years
921,317
380,964
400,695
Total issued bonds at amortised cost
5,834,217
4,647,123
5,063,778
Distributed as follows:
Preferred senior capital
2,141,530
1,543,676
2,289,649
Adjustment to amortised cost and fair value adjustment
-24,673
-35,457
-37,994
Total preferred senior capital
2,116,857
1,508,219
2,251,655
Non-preferred senior capital
3,822,555
3,265,238
2,911,643
Adjustment to amortised cost and fair value adjustment
-105,195
-126,334
-99,520
Total non-preferred senior capital
3,717,360
3,138,904
2,812,123
Total issued bonds at amortised cost
5,834,217
4,647,123
5,063,778
20
Subordinated debt
Tier 2 capital:
Floating-rate loan, principal of EUR 100 million,
maturity date 22 August 2029
745,765
744,730
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
Adjustment to amortised cost and fair value adjustment
-5,165
-2,038
-6,185
Total subordinated debt
2,040,600
1,542,692
2,039,110
Ringkjøbing Landbobank A/S Page 27
Notes
Note
no.
30 June
2024
DKK 1,000
30 June
2023
DKK 1,000
31 December
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
627,800
380,500
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
732,019
371,960
752,162
Number of own shares:
Beginning of period
758,610
826,527
826,527
Purchased during the period
1,218,453
1,084,589
1,824,656
Sold during the period
-564,659
-642,267
-1,004,246
Cancelled during the period
-784,600
-888,327
-888,327
End of period
627,804
380,522
758,610
of which reserved for subsequent cancellation
627,800
380,500
758,610
Nominal value of holding of own shares, end of period
628
381
759
2.4
1.4
2.8
23
Contingent liabilities etc.
Contingent liabilities
Financial guarantees
3,683,173
2,629,265
2,038,132
Guarantees against losses on mortgage credit loans
1,360,640
2,012,065
1,821,326
Registration and refinancing guarantees
1,300,994
1,679,216
1,863,058
Sector guarantees
108,764
104,485
105,830
Other contingent liabilities
636,079
791,161
636,445
Total contingent liabilities
7,089,650
7,216,192
6,464,791
Other contractual obligations
Irrevocable credit undertakings etc.
275,341
112,387
328,148
Total other contractual obligations
275,341
112,387
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
750,917
957,988
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.
194,486
248,414
157,872
Ringkjøbing Landbobank A/S Page 28
Notes
Note
no.
25
Loans and guarantees by sector and industry
30 June 2024
30 June 2023
31 December 2023
DKK million
%
DKK million
%
DKK million
%
Public authorities
0.8
0.0
2.0
0.0
1.7
0.0
Business customers:
Agriculture, hunting and forestry
Cattle farming etc.
509.6
0.9
561.2
1.0
650.3
1.1
Pig farming etc.
593.2
1.0
546.9
1.0
596.5
1.0
Other agriculture, hunting and forestry
3,301.8
5.5
2,917.8
5.1
3,157.2
5.5
Fisheries
672.7
1.1
701.1
1.2
673.1
1.2
Industry and raw materials extraction
2,604.3
4.4
2,009.4
3.5
2,263.2
4.0
Energy supply
Renewable energy
3,509.1
5.9
2,974.6
5.2
3,033.1
5.3
Other energy supply
300.7
0.5
99.6
0.2
122.5
0.2
Building and construction
2,825.5
4.7
2,431.6
4.2
2,677.6
4.7
Trade
2,326.4
3.9
2,495.8
4.4
2,264.8
4.0
Transport, hotels and restaurants
1,083.4
1.8
827.4
1.4
799.6
1.4
Information and communication
128.3
0.2
148.1
0.3
136.9
0.2
Finance and insurance
7,373.5
12.4
7,763.1
13.6
7,272.0
12.7
Real estate
Real estate financing without prior creditors
7,966.5
13.4
8,194.3
14.3
8,156.3
14.2
Other real estate financing
2,537.6
4.3
2,849.2
5.0
2,435.4
4.3
Other business customers
3,709.4
6.2
3,825.6
6.7
3,727.3
6.5
Total business customers
39,442.0
66.2
38,345.7
67.1
37,965.8
66.3
32,352.5
54.3
33,961.9
59.4
33,347.3
58.2
Private individuals
20,131.3
33.8
18,804.2
32.9
19,318.2
33.7
Total
59,574.1
100.0
57,151.9
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 June 2024
Credit quality*
High
63,243,113
16,850
0
0
63,259,963
74.7
Medium
12,282,056
2,404,849
0
0
14,686,905
17.4
Low
1,405,550
3,997,104
0
0
5,402,654
6.4
Credit-impaired
-
-
1,139,281
146,468
1,285,749
1.5
Total
76,930,719
6,418,803
1,139,281
146,468
84,635,271
100.0
Impairment charges etc.
Individual
834,387
35.2
Model-calculated
587,516
24.8
Management estimates
951,574
40.0
Total
470,543
1,106,100
709,436
87,398
2,373,477
100.0
At 30 June 2023
Credit quality*
High
60,470,565
211,785
0
0
60,682,350
74.1
Medium
11,133,865
2,486,795
0
0
13,620,660
16.6
Low
1,411,794
4,533,973
0
0
5,945,767
7.3
Credit-impaired
-
-
1,434,877
227,957
1,662,834
2.0
Total
73,016,224
7,232,553
1,434,877
227,957
81,911,611
100.0
Impairment charges etc.
Individual
1,012,162
43.0
Model-calculated
499,258
21.2
Management estimates
842,823
35.8
Total
263,437
1,100,453
860,825
129,528
2,354,243
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
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 classes 2b and 2c as well as the customers with objective evidence of
impairment where losses are not expected in the most probable scenario. Stage 3 and exposures which are 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
Landbobank up to and including 2017, pro forma for 2018 and for the merged bank from 2019.
30 June
2024
30 June
2023
31 December
2023
Basis of calculation, number of shares
26,078,939
27,110,839
26,732,729
Ringkjøbing Landbobank A/S Page 31
Main figures
H1
2024
H1
2023
Full year
2023
Summary of income statement (DKK million)
Net interest income
1,363
1,175
2,540
Dividends from shares etc.
119
90
90
Net fee and commission income
508
458
936
Net interest and fee income
1,990
1,723
3,566
Value adjustments
+89
+49
+253
Other operating income
3
0
6
Staff and administration expenses
497
460
939
Amortisation, depreciation and write-downs on intangible and tangible assets
16
16
33
Other operating expenses
5
5
10
Impairment charges for loans and receivables etc.
+1
-5
-6
Profit before tax
1,565
1,286
2,837
Tax
384
306
682
Net profit
1,181
980
2,155
30 June
2024
30 June
2023
31 December
2023
Balance sheet highlights (DKK million)
Loans and other receivables at amortised cost
52,535
49,996
50,881
Deposits and other debt including pooled schemes
53,818
50,799
52,626
Subordinated debt
2,041
1,543
2,039
Equity
10,593
9,647
10,451
Balance sheet total
75,616
71,012
73,520
Ringkjøbing Landbobank A/S Page 32
H1
2024
H1
2023
Full year
2023
Capital ratios:
Total capital ratio
%
19.3
20.7
23.0
Tier 1 capital ratio
%
15.5
17.7
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
%
28.0
27.5
28.9
Earnings:
Return on equity before tax
%
14.9
13.6
28.7
Return on equity after tax
%
11.2
10.4
21.8
Income/cost ratio
DKK
4.03
3.65
3.87
Cost/income ratio
%
24.8
26.2
25.2
Return on assets
%
1.6
1.4
2.9
Market risk:
Interest rate risk
%
0.9
0.5
0.5
Foreign exchange position
%
1.6
0.7
0.6
Foreign exchange risk
%
0.0
0.0
0.0
Liquidity risk:
Liquidity Coverage Ratio (LCR)
%
208.0
206.6
254.0
Net Stable Funding Ratio (NSFR)
%
119.1
121.2
122.7
Loans and impairments thereon relative to deposits
%
101.9
102.2
100.9
Credit risk:
5.0
5.2
4.9
Growth in loans
%
3.3
20.7
5.0
Total large exposures (<175%)
%
128.9
124.7
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
0.1
0.2
Share return:
Earnings per share
1/3
DKK
4,471
3,530
7,814
Book value per share
1/2
DKK
40,620
35,584
39,095
Dividend per share
1
DKK
0
0
1,000
Market price relative to earnings per share
1/3
26.1
27.7
12.7
Market price relative to book value per share
1/2
2.9
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 interim report of Ringkjøbing
Landbobank A/S for the period 1 January to 30 June 2024.
The interim 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 interim accounts provide a true and fair view of
al circumstances as well as a description of the most important risks and
uncertainties which can affect the bank.
t
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, 7 August 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