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Annual Financial Report

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Annual Financial Report

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1 February 2023

Ringkjøbing Landbobank’s annual report for 2022

The bank’s board of directors and general management today approved the annual report for 2022.

Despite of war and inflation, 2022 was again a good year for Ringkjøbing Landbobank with a large increase in new customers and high activity, partly due to the takeover of SEB’s Danish Private Banking portfolio. This resulted in two upward adjustments of the expectations to the core earnings and net profit for the year before tax, the latest on 5 December 2022. Both results were realised as announced.

Core earnings

(DKK million)20222021202020192018
Total core income2,8622,4332,1792,1162,001
Total expenses and depreciation891817788805866
Core earnings before impairment charges for loans1,9711,6161,3911,3111,135
Impairment charges for loans etc.26822310043
Core earnings1,9691,5481,1681,2111,092
Result for the portfolio etc.-69+7-9+49+77
Special costs20171515217
Profit before tax1,8801,5381,1441,245952
Profit after tax1,4951,229920978778

2022 – highlights

  • Net profit for the year increases by 22% to DKK 1,495 million
  • Income increases by 18% and expenses increase by 9%, reducing the cost/income ratio to 31%
  • Strong credit quality with impairment charges of only DKK 2 million coincide with increase in management estimates to DKK 794 million
  • Continued big increase in new customers and growth of 17% in loans, 11% in deposits and 6% in custody accounts holdings
  • Strong image for both brands, which take first and third place respectively in Denmark
  • Partnership with SEB in private banking and a new branch In Copenhagen
  • The bank’s Long Term Issuer Rating at Moody’s was upgraded to Aa3
  • A pay-out ratio of 65% will be effected through a dividend of DKK 7 per share and a DKK 770 million share buy-back programme
  • Expectations for net profit for 2023 in the range DKK 1,200-1,600 million

Yours faithfully

Ringkjøbing Landbobank

John Fisker