Finansiel Stabilitet releases H1 2018 interim financial statements

Finansiel Stabilitet generated financial results of DKK 449 million in H1 2018.

The financial results were driven in particular by payment of contributions to the Resolution Fund, of which DKK 308 million is included in the financial results for the period. Overall, the Resolution Fund contributed DKK 315 million to the financial results. At 30 June 2018, the Resolution Fund’s equity stood at DKK 2.1 billion.

Finansiel Stabilitet’s activities in relation to Bank Packages I-V generated financial results of DKK 131 million in H1 2018. The financial results were to a significant extent attributable to the decision of the Court of Justice of the European Union of 6 March 2018 in the case FIH against EU. Based on the decision, it is estimated that a part of the previously paid amount from FIH of DKK 351 million is to be recognised as income. Based on an overall assessment of the matter, Finansiel Stabilitet provisionally recognised an amount of DKK 100 million in H1 2018. Total equity attributable to the Bank Package I-V activities was DKK 5 billion at 30 June 2018.

The Guarantee Fund generated a profit of DKK 3 million in H1 2018. At 30 June 2018, the Guarantee Fund’s equity amounted to approximately DKK 13.2 billion.

As a result of the current interest rate environment and the aim to ensure appropriate portfolio management, Finansiel Stabilitet began phasing in a new investment strategy in Q2 2018. At 30 June 2018, the investment in liquid short-term mortgage bonds produced a smaller return in excess of the return achievable from placing the funds with Danmarks Nationalbank at the rate on certificates of deposit. However, as investing in mortgage bonds entails a higher degree of risk, interest rate changes, if any, may have a significant impact on Finansiel Stabilitet’s financial results in the individual years, but not for a longer period of years.

The Group’s total assets at 30 June 2018 amounted to DKK 23.6 billion. Of this amount, the Bank Package I-V activities accounted for DKK 6.8 billion, the Guarantee Fund accounted for DKK 14.7 billion and the Resolution Fund accounted for DKK 2.9 billion, while an amount of DKK 0.8 billion related to an intra-group balance.

The group’s total assets were reduced by DKK 2.5 billion in H1 2018 through payment of dividend relating to the Bank Package I-V activities. At 30 June 2018, there were remaining loans and guarantees of DKK 903 million, financial assets of DKK 231 million and properties of DKK 3 million.

For further information, please contact:
Henrik Bjerre-Nielsen, CEO, on tel. +45 21 14 21 11, or alternatively via the press contact, on tel. +45 24 76 35 90, e-mail: mail@fs.dk.