Ringkjøbing Landbobank’s report for the first quarter of 2020

The first quarter of the year was heavily influenced by the corona crisis. We are pleased, in this context, that the bank’s business model is robust with a low rate of costs and a strong capital base.

Core earnings

(DKK million)
Q1 2020
Q1 2019
2019
2018
2017
2016
Total core income 541
526
2,116
2,001
1,917
1,861
Total expenses and depreciation
198
201
805
866
845
815
Core earnings before impairment charges for loans 343
325
1,311
1,135
1,072
1,046
Impairment charges for loans etc.
-75
-25
-100
-43
-70
-211
Core earnings
268
300
1,211
1,092
1,002
835
Result for the portfolio etc.
-70
26
49
77
84
78
Special costs
4
4
15
217
22
22
Profit before tax
194
322
1.245
952
1,064
891

Highlights of the first quarter of 2020

  • Our main focus during the corona crisis has been to help our customers and business partners
    – and of course to safeguard the working conditions of our employees
  • 3% increase in total core income to DKK 541 million
  • 11% fall in core earnings to DKK 268 million
  • DKK 200 million corona-led impairment buffer established resulting in a total management estimate for impairment charges of DKK 326 million at the end of the quarter
  • Result for the portfolio negative by DKK 70 million, which means a 40% fall to DKK 194 million in profit before tax
  • Continued increase in customers and 6% increase in the bank’s loans
  • Updating of the bank’s strategy with continued focus on organic growth
  • Share buy-back programme suspended
  • Following downward adjustment, core earnings are expected to be in the range DKK 900-1,100 million and profit before tax in the range DKK 800-1.100 million

Quarterly report Q1 2020