Bank surpluses increased in 2013 by DKK 9 bn. from DKK 7.2 bn. in 2012 to DKK 16.2 bn. in 2013. The rise in surpluses is mainly due to a decrease in impairment losses and provisions on loans and guarantees. The surpluses in 2013 were the largest since 2007 and thus also the largest since the financial crisis.
Impairments on loans decreased by 37% in 2013 to DKK 17 bn. compared with DKK 27.2 bn. in 2012. Impairment losses in 2013 were thus at the lowest level since the start of the financial crisis. Proportionally, impairment losses are now below the average for the past 25 years. Impairment losses for the sector in total accounted for 0.8% of loans and guarantees in 2013 compared with an annual average over the past 25 years of just under 1.0%.
Net interest income for banks continues to fall. This is particularly due to continued falls in lending. Adjusted for repo lending, total lending by banks fell by DKK 126 bn. in 2013 from DKK 1,478 bn. to DKK 1,352 bn. at the start of 2014. In total, core earnings increased from DKK 22.0 bn. in 2012 to DKK 23.1 bn. in 2013. This is due to increasing net fee income etc. and cost reductions. However, there was a large dispersion between banks.
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