OREANDA-NEWS. February 20, 2014. Aivar Rehe, CEO of Danske Bank Estonia, comments on the financial results for 2013 as follows:

“In 2013, Danske Bank achieved its best financial results and level of efficiency since the financial crisis of 2008. The bank’s persistently high liquidity made it possible to support wellconsidered lending activities.

“ROE before loan impairment charges for the year was as high as 56.9% (40.1% in 2012), and the cost/income ratio was 39.3% (42.3%).

“Danske Bank is realising its strategy, whose key words are firstclass customer service, high liquidity, thoroughly considered risk management and stable financial activities.

“Danske Bank made a profit distribution in which it paid EUR 10.0 million in income tax on 2013 income to the state of Estonia. The year before, the bank paid EUR 6.7 million in income tax.

“Danske Bank’s liquidity was very strong throughout the year. The surplus of deposits to loans remained strong. On 31 December 2013, deposits exceeded loans by EUR 525 million.

“The bank increased its lending activities considerably, especially in the second half of 2013. It focused on lending to financially strong local and international companies and dominated public procurements (winning around 85% of them). The good loan growth was based on highly competitive lending terms.

“The bank’s income for 2013 was EUR 72.5 million (EUR 64.1 million), an increase of EUR 8.4 million, or 13%.

“The bank’s operating expenses for 2013 were EUR 28.5 million (EUR 27.1 million), a rise of EUR 1.4 million, or 5%.

“Profit before loan impairment charges rose to EUR 44.0 million (EUR 37.0 million), an increase of EUR 7.0 million, or 19%.

 “The amount of provisions made in 2013 was considerably smaller than in 2012.

“The bank’s net profit for the year amounted to EUR 47.3 million (EUR 61.9 million).

“Danske Bank manages its assets highly efficiently: ROE before loan impairment charges for the year was 56.9% (40.1%).

“Danske Bank had the best deposit/loan ratio of all of the large banks operating in Estonia. At the end of December, the ratio was 63.8% (69.0%).

“The bank’s activities were highly efficient. The cost/income ratio in 2013 was 39.3% (42.3%).

“The decline in the size of the total loan portfolio slowed considerably. The total amount of loans and leasing at the end of 2013 was EUR 1.14 billion (EUR 1.17 billion).

“Danske Bank holds a strong position on the deposit market, having reached the level of EUR 1.79 billion (EUR 1.69 billion).

“Danske Bank follows the conservative loan portfolio assessment policy of Danske Bank Group but did not create additional provisions in 2013, and the quality of the loan portfolio improved considerably.

“The ratio of the loan impairment reserve to the loan portfolio at the end of 2013 was 3.5% (5.9%), which is the most conservative among the large banks in Estonia.

 “Customers used the bank’s settlement services actively, and the number of payments they made rose in 2013. The number of international payments made by customers rose 22%.

“Danske Bank will continue its tradition of supporting education and culture. At the end of October, President Ilves again presented the Educational Awards of the Cultural Foundation of the President financed by Danske Bank. The award (in the amount of EUR 11,200) was divided among three leading promoters of education. Danske Bank has supported the Educational Awards for the past five years.

“At the beginning of December, Rahamaa – the most popular online financial educational game in Estonia – was updated. Some 350,000 user accounts have already been created in the Rahamaa.ee environment. The game, which explains to children the basics of how to use money, is now also available on iPad and iPhone.

“As the gold sponsor of Jazzkaar, Danske Bank has helped bring several well-known performers to Estonia. In December, successful Jazzkaar Christmas concerts were held in various locations throughout Estonia.”

The Danske Bank Group’s Annual Report 2013 is available online at www.danskebank.com/reports.