Banks, EU – Baltic States, Financial Services

Its income totaled DKK 24.6 billion, up 6% from the level in the first half of 2011, mainly because of higher net interest income and net income from insurance business, writes LETA.

Net trading income remained solid, rising five% from the level a year earlier.

the expenses were down by four% from the level in the first half of 2011, and the cost/income ratio fell from 60.5% to 54.8%.

Loan impairment charges increased from the level in the first half of 2011. Charges declined for the second consecutive quarter, however.

The charges related mainly to commercial property in Ireland and Northern Ireland, personal customers in Ireland and Denmark, and the shipping industry.

At the end of June 2012, the group had, as planned, redeemed state-guaranteed bond issues for DKK 30 billion. The remainder of the state-guaranteed bond issues was redeemed in July 2012. On June 30, 2012, the Tier 1 capital and total capital ratios were 16.2% and 17.7%, respectively, against 16% and 17.9% on December 31, 2011.

The group still expects earnings to remain low in 2012. Because of the economic climate, the outlook is subject to considerable uncertainty. Total impairment charges are likely to remain at the same high level as in 2011.

"These are our best results for a half year since the financial crisis hit in 2008", says Eivind Kolding, Chairman of the Executive Board.

On June 1, 2012, the group implemented organizational changes.

The new organization is the first step in implementing the group's new strategy, which is expected to be completed by the end of the third quarter of 2012.

The financial reporting will reflect the new organization beginning on January 1, 2013.