04.02.2010
- Profit before tax for the fourth quarter of 2009 is DKK 45 million, while profit after tax is DKK 178 million
- Results for the full year 2009 are a negative DKK 147 million before tax and a profit of DKK 12 million after tax, which is below FIH’s expectations for net results for the year at the end of the third quarter of 2009.
- Net results for the year are acceptable in view of macroeconomic developments. Moreover, the trend of quarterly results has been positive.
- Results for 2009 are impacted by significant writedowns of DKK 1,177 million (including provisions of DKK 208 million for the guarantee under Bank Package I). Costs associated with Bank Package I total DKK 530 million in 2009. Writedowns in the second half of the year are significantly lower than in the first half.
- In the fourth quarter, FIH made a bond issue of USD 1.5 billion. FIH has thus issued bonds worth a total of USD 3.5 billion in the second half of 2009, equivalent to DKK 18 billion.
- The bond issues have helped to provide the Bank with liquidity of DKK 22.9 billion.
- The solvency ratio, calculated using the standard approach, is 13.8 per cent at the end of 2009 and the individual solvency requirement has been calculated at 9.8 per cent. If FIH were to use the advanced approach, the solvency ratio would be positively impacted by about 2 percentage points.
- Due to the uncertainty surrounding FIH’s ownership and Moody’s ratings, FIH does not have access to the bond markets for subordinated debt. In order to maintain a satisfactory solvency ratio, FIH currently does not expect to exercise call options under the subordinated debt.