Ringkjøbing Landbobank’s annual report for 2020

Nasdaq Copenhagen
London Stock Exchange
Other stakeholders3 February 2021Ringkjøbing Landbobank’s annual report for 2020The bank’s board of directors and general management today approved the annual report for 2020.In March 2020 we downwardly adjusted our expectations for net profit for the year as a result of the coronavirus pandemic. During the year we have built up large management reserves for handling of any later impairment charges. However, the bank’s core income was not negatively affected as we had expected in March. We therefore upwardly adjusted our expectations in October. The 2020 profit before tax was realised at the upper end of our expectations.Core earnings
2020 – highlightsOur main focus during the coronavirus pandemic has been to help our customers and business partners – and of course to ensure safe working conditions for our employeesThe profit before tax is DKK 1,144 million, equivalent to a 15% p.a. return on equityIncome increases by 3% and expenses fall by 2%, reducing the rate of costs to 36.2%Impairment charges are DKK 223 million in 2020 after increasing management estimates of DKK 440 million to DKK 566 millionThe high level of customer satisfaction and large increase in new customers result in growth of 2% in bank loansThe pay-out ratio is 50% of net profit for the year and will be effected through a dividend of DKK 7 per share and a DKK 255 million share buy-back programmeThe bank is carbon-neutral from 2020Profit before tax is expected to be between DKK 1.0 billion and DKK 1.3 billion in 2021
Yours faithfullyRingkjøbing LandbobankJohn FiskerCEOAttachmentsAnnual report 2020Front page for the company announcement 2020