Vestjysk Bank’s Annual Report 2020 - Seite 3

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, the Bank expect to see an increase in losses, but on a manageable level overall.

Until now, the crisis has not affected dairy farmers. Pork settlement prices declined over the course of the year, however, and at the end of 2020 stabilised at a acceptable level. Because of the relatively high pork prices in the first half, pig farmers, some of which are credit-impaired, were able to repay debt to the Bank. This resulted in reversals of impairment allowances within this sector during 2020. The current outbreak of African swine fever in Germany has made it difficult for the Bank’s piglet producing customers to sell their output in Germany. This caused prices of piglets to fall sharply, and a downward trend was also seen in prices of pigs for slaughter.

Brexit ended with a trade agreement between the United Kingdom and the EU, under which Danish fishing boats are allowed to fish in UK waters under temporary licenses that are expected to expire in 2026. The agreement stipulates a shift in quotas, with up to 25% of total EU fishing quotas being transferred to the UK. The agreement is considered acceptable to the Bank’s customers in the fishing industry compared with the dreaded no-deal Brexit scenario.  

Vestjysk Bank is closely monitoring coronavirus pandemic and African swine fever developments.

The Bank’s DKK 310 million impairment provision for economic uncertainty is assessed to be sufficient. Projections about the future consequences of the coronavirus crisis and African swine fever are naturally subject to considerable uncertainty.

Outlook for 2021
Vestjysk Bank guides a profit after tax for 2021 of around DKK 500-550 million adjusted for non-recurring costs and earnings.

Conference call

A conference call for analysts will be held on 23 February at 9:30 a.m. (Danish time) during which CEO Jan Ulsø Madsen will comment on the annual report 2020. Please use this link to register for and participate in the conference call:

https://event.loopup.com/SelfRegistration/registration.aspx?booking=ng ...

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 Bank Annual Report 2020