Group Structure

102 Pages·2014·1.79 MB·English

Annual Report
Alm Brand Bank
2013
Alm. Brand Bank A/S / Midtermolen 7 / DK-2100 Copenhagen Ø / Registration (CAVlmR). Bnroa.n 8d1 B 7a5n 3k5 a 1n2nual report 2013 1
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Alm. Brand Bank annual report 2013
Contents
4 Company information 36 Auditors’ reports
5 Group structure 38 Financial statements
7 Management’s review 39 Income statement and
comprehensive income
8 Financial highlights and key ratios 40 Balance sheet
9 Alm. Brand Bank 42 Statement of changes in equity
22 Customers 43 Cash flow statement
24 Human resources 44 Segment information
26 Corporate governance 46 Overview of notes
30 Capitalisation 47 Notes to the financial statements
33 Investor information
94 Definitions of ratios
35 Statement by the management board
and the board of directors 96 Directorships and special qualications
Alm. Brand Bank annual report 2013 3
Company Information
Management board Auditors
Chief Executive Deloitte
Kim Bai Wadstrøm Statsautoriseret Revisionspartnerselskab
Joined Alm. Brand in 2011
Chief Executive of Alm. Brand Bank A/S since 2011
Internal audit
Board of directors Poul-Erik Winther, Group Chief Auditor
Jørgen H. Mikkelsen, Chairman
Boris N. Kjeldsen, Deputy Chairman
Arne Nielsen Registration
Jan Skytte Pedersen Alm. Brand Bank A/S
Ebbe Castella Company reg. (CVR) no. 81753512
Søren Boe Mortensen
Christian Bundgaard, Elected by the employees
Torben Jensen, Elected by the employees Address
Pia Støjfer, Elected by the employees Midtermolen 7
DK-2100 Copenhagen Ø
Phone: [phone]
Telefax: [phone]
Internet: www.almbrand.dk
E-mail: [email protected]
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Alm. Brand Bank annual report 2013
company information / group structure
Group Structure
Alm. Brand Bank
Alm. Brand Leasing Alm. Brand Formue
The bank has two subsidiaries: Ownership
The bank is wholly owned by the listed company Alm.
• Alm. Brand Leasing A/S Brand A/S.
• Alm. Brand Formue A/S
The consolidated financial statements of Alm. Brand Bank
The group also comprises five wholly-owned subsidiar- A/S are a component of the consolidated financial state-
ies, which have been established or acquired in connec- ments of Alm. Brand A/S and Alm. Brand af 1792 fmba.
tion with properties taken over temporarily.
In addition, the bank acts as custodian for:
• Investeringsforeningen Alm. Brand Invest
Alm. Brand Bank annual report 2013 5
Customers First
2013
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Alm. Brand Bank annual report 2013
Management’s
review
Alm. Brand Bank annual report 2013 7
Financial highlights and key ratios

Group
DKKm 2013 2012 2011
Income Continuing activities:
Statement Net interest and fee income, Private 179 177 172
Trading income (excl. value adjustments) 240 172 224
Other income 89 63 55
Total income 508 412 451
Expenses –368 –364 –368
Depreciation and amortisation –52 –33 –18
Core earnings 88 15 65
Value adjustments –33 3 –96
Profit/loss from investments –2 –6 0
Alm. Brand Formue (the bank’s ownership interest) –25 –2 –28
Profit/loss before impairment writedowns 28 10 –59
Impairment writedowns –118 –57 –105
Profit/loss before tax, continuing activities –90 –47 –164
Winding-up activities:
Profit/loss before impairment writedowns –123 –49 –101
Impairment writedowns –256 –423 –889
Profit/loss before tax, winding-up activities –379 –472 –990

Total profit/loss before tax and minority interests –469 –519 –1,154
Tax 77 128 236
Profit/loss for the year before minority interests –392 –391 –918
Minority interests 26 39 –32
Consolidated profit/loss for the year –366 –352 –950
Balance Loans and advances, continuing activities 2,568 2,754 3,158
sheet Loans and advances, winding-up activities 4,772 5,642 7,059
Deposits 10,936 11,325 7,995
Shareholders’ equity 1,696 1,169 1,234
Share attributable to minority interests 193 173 141
Total assets 16,296 17,903 21,393
Key ratios Average no, of employees (full-time equivalents) 263 275 286
Interest margin (%) 1.6% 1.4% 1.6%
Inome / cost ratio 0.38 0.42 0.08
Impairment ratio 2.1% 2.8% 6.0%
Solvency ratio 18.4% 18.5% 16.8%
Return on equity before tax (%) –33.8% –41.6% –94.5%
Return on equity after tax (%) –27.9% –30.6% –75.8%

The bank has introduced a new version of the financial highlights in the Annual Report 2013, showing a break-
down on continuing activities and winding-up activities. For registration reasons, it has not been possible to
show the breakdown until from 2011. In the management’s review, the items of the income statement and loans
and advances have been broken down by continuing activities and winding-up activities. This breakdown does
not apply to the rest of the annual report, as the conditions of IFRS 5 are not fully met, including the condition
on realisation within 12 months. Alm. Brand Formue is stated as the bank’s ownership interest including results
of equity risk hedging. See the accounting policies for a description of the contents of the individual line items.
Financial ratios are based on the definitions and guidelines of the Danish FSA and on “Recommendations & Fi-
nancial Ratios 2010” issued by the Danish Society of Financial Analysts.
financial highlights and key ratios / alm. brand bank
Alm. Brand Bank
Alm. Brand Bank is a nation-wide bank with just over As a result of the declining trend in lending, a sluggish
50,000 private customers measured in terms of house- housing market and tax payments on pension assets, ear-
holds. nings from the private customer banking market did not
improve to any great extent in 2013.
The bank offers products that meet the financial needs
of private customers. In addition, the bank has activities Financial Markets
within car leasing for private and commercial customers, Trading activity generally picked up in 2013, impacting
bond, equity and currency trading and research (Markets) favourably on Alm. Brand’s activities in Financial Mar-
and asset management services (Asset Management). kets.
The bank also has a winding-up portfolio of loans and ad- However, trading income remains under pressure, and
vances, consisting primarily of agricultural, commercial the market for asset management services is extremely
and mortgage deed exposures. competitive. At the same time, customers are increasingly
demanding more information and reporting services.
Market Markets generally developed favourably in 2013. The fi-
Private nancial markets were focused on whether growth would
The private customer market was characterised by consu- pick up and whether the very lenient monetary policies
mer spending restraint again in 2013. Private customers would be maintained. Economic indicators gradually im-
generally remain focused on reducing their bank debts proved during the year, driven mainly by the USA where
and increasing their savings. declining unemployment and growing consumer confi-
dence characterised developments.
The housing market was slightly upward trending in
2013, but the recovery is fragile with substantial geogra- Long-term yields were generally upward trending over
phical variations. The market remains sluggish, and actual the year, as were the major equity markets.
improvement is only seen in and around major towns and
cities. Leasing
The private car leasing market experienced fair growth in
After years of great restraint, the general investment ap- 2013. The market has yet to reach the level seen prior to
petite of ordinary private customers is gradually reco- the change in the principles for calculating vehicle regi-
vering. There are indications of budding optimism, but stration fees, but particularly private leasing of small and
they have yet to translate into a significant increase in the mid-sized cars saw substantial growth in 2013.
bank’s brokerage income from private customers.
The commercial car leasing market bounced back to a
As expected, the introduction by the Danish government reasonable level in 2012, and this level was maintained in
of the new retirement pension (Alderspension) caused 2013.
many customers to exercise the option of early payment
of tax on capital pension deposits at a lower rate.
Alm. Brand Bank annual report 2013 9
Strategy We want our customers to perceive Alm. Brand Bank as
The bank’s strategy is to support the Alm. Brand Group’s one of the best providers of service and advice and as offe-
aim of offering its selected customer segments compre- ring the best prices in the industry. Customers should be
hensive financial solutions across insurance, pension and offered financially attractive and value-creating solutions
banking. supporting long-term customer relationships. The aim is
to have simple and uncomplicated procedures and offer
The bank’s strategy is focused on three segments: high-quality advisory services as and when required.
• Private customers The bank has just over 50,000 customers (measured in
• Financial Markets terms of households), who are served by some 80 ban-
• Leasing king, investment and pension advisers distributed on 11
branches. In addition, around 40 employees at the bank’s
Alm. Brand Bank wants to be the primary banker of its head office deal direct with customer needs and enquiries
private customers. The bank focuses particularly on and with developing the private customer area. Finan-
customers who own their own homes or live in coopera- cial Markets has some 50 employees working in front,
tive housing and customers with a major requirement for middle and back office functions, and Leasing has about
investment and pension advisory services, as these custo- 25 employees.
mer segments would potentially benefit the most from
the bank’s advisory services. The private customer area In addition to these segments, the bank has a portfolio of
collaborates closely with Financial Markets on invest- winding-up activities consisting of agricultural, commer-
ment and asset management services. cial and mortgage deed exposures. The bank is strongly
focused on minimising losses when winding up disconti-
By maintaining superior quality in its research and advi- nued business areas.
sory services, Financial Markets aims to provide all custo-
mers with an optimum decision-making basis, whether In terms of organisational resources, the winding-up
they are private or professional customers. The advisory portfolio is handled by close to 30 employees. Winding-
services are based on long-term strategies, fundamental up activities are handled centrally at the head office, en-
and quantitative research and focus on risk management suring that the remaining organisation stays focused on
aligned with the risk profile of each individual customer. providing optimum service to the bank’s customers going
The advisory services are furthermore founded on a ho- forward.
listic advisory approach based on a proprietary asset al-
location model that provides guidelines on the most ap- Strategic goals for 2013-2016
propriate allocation of a customer’s assets. The bank has defined a number of goals to improve ear-
nings so that it may deliver satisfactory results in future.
In leasing, the strategy is to offer competitive lease solu-
tions that cover the requirements of financially sound Target: Income/cost ratio of more than 1.1 by 2016
businesses for leasing passenger and commercial cars. The The income/cost ratio was 0.38 in 2013, being affected by
strategy also aims to intensify direct sales of car leases to large impairment writedowns. The improvement to be
individuals, both to end customers and through partner- achieved by 2016 will be driven by higher core earnings
ships with car importers and car dealers. from continuing activities and by a reduction of total im-
pairment writedowns.
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Alm. Brand Bank annual report 2013