OREANDA-NEWS. February 17, 2012. Profit before tax: EUR 60.6 million (2010: EUR 30.4 million)

Profit before loan impairment charges: EUR 37.2 million (EUR 40.6 million)

Loan impairment charges: EUR -23.4 million (EUR 10.2 million)

Cost/income ratio: 40.7% (38.3%)

Deposits: up EUR 17 million

Lending: down EUR 253 million

Loan/deposit ratio: 79% (95%)

Customer base: 134,000

In addition to banking, Danske Bank operates in Estonia in the areas of asset management (Danske Capital) and financial markets (Danske Markets Estonia).

Aivar Rehe, the CEO of Sampo Pank, comments on the financial results for 2011 as follows:

“Economic growth slowed in the fourth quarter of 2011. The economic situation of countries that are important export partners for Estonia has weakened because of the debt crisis in the eurozone. The success andfuture of Estonian economy depend heavily on changes in the surrounding environment and on a quick resolution to the debt crisis. Such factors affect the conduct of companies and individuals, who are focused on sav-ing and taking carefully weighed risks. The Estonian economy has in-creased its financial reserves and improved its liquidity considerably over the year in order to cope better with the overall economic instability that awaits in 2012.

Sampo Pank balanced its loan and deposit portfolios in 2011. Deposits exceeded loans by about EUR 100 million at the start of the year and more than EUR 350 million by the end of 2011.

The loan/deposit ratio was 78.9% (94.6% in 2010).

The bank’s operating efficiency is high and stable. The cost/income ratio for the year was 40.7% (38.3%).

Sampo Pank’s profit before tax in Q4 was EUR 17.5 million. The profit for 2011 was EUR 60.6 million (EUR 30.4 million).

Sampo Pank generally maintained its revenue and cost base in the rapidly changing banking and economic environment. Operating revenue for the year totalled EUR 62.7 million (EUR 65.8 million), and operating expenses amounted to EUR 25.5 million (EUR 25.2 million).

We continued to pursue the conservative loan portfolio assessment policy of the Danske Bank Group but did not recognise additional loan impairment charges in Q4. The ratio of impairment charges to the loan portfolio at the end of 2011 was 8.2% (10.1%).

The bank issued more new loans. The loan portfolio declined in Q4, but the pace of the decline slowed considerably. Total loans and leasing at year-end was EUR 1.36 billion (EUR 1.61 billion).

Sampo Pank holds a strong, stable and reliable position on the deposit market. Total deposits exceeded the loan portfolio by EUR 362 million at end of 2011. Total deposits remained at the level of EUR 1.72 billion (EUR 1.70 billion).

The bank has demonstrated great results in providing settlement ser-vices to customers: in 2011, the number of international payments rose 6%, and the number of card transactions rose 7%.

Sampo Pank achieved the best result among the companies evaluated in the Estonian Service Index (ESI) survey. In the survey, which is conducted annually by the TNS Emor market research company, mystery shoppers test companies’ service against a standard.

The success of the Isekas loyalty programme, which values active busi-ness relationships that focus on customers, continued in 2011. Almost 50% of Sampo Pank’s personal customers found that joining the pro-gramme, which enables them to choose the pricing model that is the best for them and their family, is the second step towards greater satisfaction, after informed financial decisions.

In November 2011 Sampo Pank started offering the same type of ser-vices to its business customers by introducing Ariklass (Business Class), a loyalty programme that best represents the interests of both companies and private individuals. The popularity of the new approach is evidenced by the fact that 10% of small and medium-sized companies served by the bank joined the programme in the first two months.”

The Danske Bank Group’s Annual Report 2011 is available at www.danskebank.com/reports.