Vestjysk Bank’s Q1-Q3 2020 Quarterly Report - Seite 3

The Bank assesses that a Brexit without a trade agreement between the UK and Denmark may also affect the fisheries sector.

In the real estate sector, we are so far seeing an effect on commercial leases, where agreements have been made to defer rent payments. Depending on the duration and depth of the crisis, this effect could widen. Private residential rentals have not been affected at this point, and this is not expected to change significantly.

Our retail customers are generally doing well and are in a strong position to withstand the consequences of the Coronavirus crisis. In the long term, we expect to see an increase in impairment allowances, but on a manageable level overall.

We assess that the Bank’s DKK 250 million impairment provisions due to economic uncertainty concerning the Coronavirus crisis, African swine fever in Germany and Brexit uncertainties and the DKK 50 million capital reservation in the individual solvency need will be sufficient to cover the Bank’s current risk exposure. Projections about the future consequences of the Coronavirus crisis, African swine fever and Brexit are subject to considerable uncertainty.

Outlook for 2020
On the basis of the preliminary impact of the Coronavirus situation, Vestjysk Bank released revised full-year 2020 profit guidance on 13 May 2020. At that date, the guidance was a profit after tax in the range of DKK 160-240 million.

In an announcement released on 14 July 2020, Vestjysk Bank raised and specified its profit guidance after tax for full year 2020 to a range of DKK 200-260 million.

On 8 October 2020, the Bank released another announcement raising its profit guidance for 2020.

Vestjysk Bank saw a continued high level of activity among both retail and business customers.

Moreover, the trend in individual impairment losses was better than expected in all customer segments. Consequently, the Bank raised its profit guidance for 2020 to DKK 260-320 million after tax, and this guidance is maintained.

Enquiries
Please address any enquiries regarding the present announcement to Jan Ulsø Madsen, CEO, at tel. [phone].

Vestjysk Bank A/S

Kim Duus                                        Jan Ulsø Madsen
Chairman                                       CEO



Vestjysk Bank A/S
Torvet 4-5
7620 Lemvig
Tel. [phone]

CVR no. 34 63 13 28

www.vestjyskbank.dk

Attachment

• Vestjysk Banks Q1- Q3 2020 Quarterly Report