2008 was a year of exceptional changes and a new beginning for Danske Bankas. Last year, after successful activities spanning over seven years, Sampo Bankas entered a new quality stage and having changed its name became a subsidiary of Danske Bank Group.
Becoming a subsidiary of Danske Bank Group enabled Danske Bankas to provide each of its clients with higher quality services based on responsibility, knowledge, and the experience of a company with a long history of banking services. Being one of the largest financial group in Northern Europe and one of the 50 largest global financial groups, Danske Bank guarantees the security of clients' funds, whereas the size of the financial group and its reliability ensures stability and efficiency of activities and at the same time provides a wide range of financial services and opportunities.
Both the income of Danske Bank A/S Lithuanian Branch and the share of the bank in the market remained steady in 2008 (compared to 2007). Danske remains one of the key banks in the financial market of Lithuania.
2008 was also a year of rapid growth in deposits: compared to 2007, the total amount of deposits (all deposits are insured in accordance with the law of the Kingdom of Denmark) increased in Danske Bank by 18 % and significantly exceeded the market average. Last year the loan portfolio (net) of Danske Bank increased by 8 % (compared to 2007).
Danske Bank Group has always been known for its responsibility, transparency and conservative risk assessment. Last year, the group made impairment charges on loans in all of its subsidiaries. Considering the economic situation and its prognosis, impairment charges made for the Lithuanian Branch during 2008 amounted to LTL 54 million. Due to this, the result for Danske Bank in 2008 was minus LTL 17 million.
The majority of economists and experts agree that the year 2009 will mark the beginning of a new stage in banking activities. It is so far difficult to assert what the main characteristics of banking activities will be; however, without a doubt, the banks will focus on a traditional, conservative type of banking and will avoid unreasonable risks.
The experience of many years, a strong financial basis, responsibility, and consideration for each individual, allow both Danske Bank Group and Danske Bank Lithuanian Branch to view the future optimistically.
Gintautas Galvanauskas, Managing Director of Danske Bank A/S Lithuanian Branch
Danske Bank A/S Lithuanian Branch 2008 Annual report (IFRS)
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