Pre-tax profits of
DKK 512 million, equal to a 15.3% p.a. return on equity Core income for the first six months amounted to DKK 1,597 million, up 12% on H1 2013 - the growth being driven by market-value adjustments regarding the sale of the Nets sharehold-ing and sustained growth in net income from fees, charges and commissions, while there was pressure on net interest income in Q1, in particular. Costs & expenses ended at DKK 890 million, which is 4% up on H1 2013 and in line with expect-ations - thus, the cost/income ratio improved to 0.56. Core earnings before impairment amounted to DKK 707 million- 24% up on H1 2013. Impairment of loans and advances, etc. shrank by 17% (YOY), amounting to DKK 169 million, equal to an impairment ratio, excl. mortgage credit lending, of 0.78% p.a. The negative lending trend was reversed, with bank lending at end-H1 bouncing back to its end-2013 level - before consolidation of the portfolio acquired from FIH Erhvervsbank. The Group is in a comfortable capital and liquidity situation, with a Common Equity (Tier 1) ratio of 14.2%, an excess coverage relative to the solvency need ratio of 7.2 percentage points ( DKK 3.2 billion), and strategic liquidity of DKK 17.6 billion. In light of developments in H1, Spar Nord Bankmaintains its full-year forecast for core earnings before impairment of about DKK 1.1 billion, to which should be added DKK 175 millionregarding the divestment of the Banks Nets shareholding. Q2: Healthy growth in lending and net interest income Net interest income increased 5% on Q1, amounting to DKK 416 million- driven by growth in bank lending of DKK 700 millionand redemption of hybrid core capital at the end of May. Net income from fees, charges and commissions in the amount of DKK 195 millionwas retained at a highly satisfactory level - for one thing because of a sustained high activity level in the asset and investment management area. A quarter characterized by strategic initiatives: the redemption of governmental hybrid core capital, divestment of Swedish leasing activities and acquisition of customer portfolios from Basisbank and FIH Erhvervsbank. Copyright © 2014 OMX AB (publ).