Ringkjøbing Landbobank’s quarterly report for the first three quarters of 2020

In March 2020 we downwardly adjusted our expectations for core earnings and profit before tax as a result of the coronavirus crisis. During the first, second and third quarters we have built up large management reserves for handling of later impairment charges. The effect on the bank’s core earnings, however, has been less negative than expected in March, and earlier this month we therefore upwardly adjusted our expectations for core earnings and for profit before tax.

Core earnings

(DKK million)
Q1-Q3 2020
Q1-Q3 2019
2019
2018
2017
2016
Total core income 1,613
1,586
2,116
2,001
1,917
1,861
Total expenses and depreciation
576
593
805
866
845
815
Core earnings before impairment charges for loans 1,037
993
1,311
1,135
1,072
1,046
Impairment charges for loans etc.
-185
-75
-100
-43
-70
-211
Core earnings
852
918
1,211
1,092
1,002
835
Result for the portfolio etc.
-24
53
49
77
84
78
Special costs
11
11
15
217
22
22
Profit before tax
817
960
1,245
952
1,064
891

Highlights of the first three quarters of 2020

  • Our main focus during the coronavirus pandemic has been and still is to help our customers and business partners – and of course to ensure safe working conditions for our employees.
  • Income increases by 2% and expenses decrease by 3%, reducing the bank’s rate of costs to 35.7%.
  • After impairment charges of DKK 44 million in the third quarter, the management estimates increases by DKK 17 million to DKK 541 million.
  • 7% decrease in core earnings to DKK 852 million.
  • 15% decrease in profit before tax to DKK 817 million.
  • Growth in loans of 2% relative to the end of September 2019 and 1% during the third quarter of 2020.
  • Moody’s upgrades the bank’s long-term deposits rating from A1 to Aa3.

Quarterly report Q1-Q3 2020