Finansiel Stabilitet posted a surplus of DKK 2,061 million in 2023 (2022: DKK 403 million), which was largely attributable to payment of contributions to the Resolution Fund and the Deposit Guarantee Fund in the amount of DKK 1,206 million (2022: DKK 1,146 million), a positive return on the securities portfolio and interest income on deposits with Danmarks Nationalbank.
In general, Finansiel Stabilitet’s financial results can be broken down into the three funds managed by Finansiel Stabilitet, i.e. the Resolution Fund, the Deposit Guarantee Fund and Activities handled on behalf of the government, including the Bank Package activities.
The Resolution Fund generated a surplus of DKK 1,460 million in 2023. The surplus was predominantly attributable to payment of DKK 1,206 million in contributions. Interest income on the securities portfolio and on deposits with Danmarks Nationalbank amounted to DKK 156 million, and market value gains on the securities portfolio amounted to DKK 107 million. The overall return on the marketable portion of the portfolio under management was approximately 3.6%. The Resolution Fund’s surplus was approximately DKK 150 million better than expected, mainly as a result of the return on the securities portfolio.
The Deposit Guarantee Fund generated a surplus of DKK 404 million. The result was attributable to interest income on the securities portfolio and deposits with Danmarks Nationalbank in the amount of DKK 108 million and market value gains on the securities portfolio of DKK 284 million. The overall return on the marketable portion of the portfolio under management was 4.7%. The surplus was approximately DKK 300 million better than expected owing to the increase in bond prices in 2023.
Activities handled on behalf of the government generated a surplus of DKK 197 million for the period. The surplus was attributable to interest income on deposits with Danmarks Nationalbank and reversed impairment losses. The surplus from this activity was approximately DKK 100 million better than expected, mainly as a result of reversed impairment losses and increased interest income on deposits with Danmarks Nationalbank.
The Group’s total assets at 31 December 2023 amounted to DKK 25.9 billion (2022: DKK 23.9 billion). The Resolution Fund and the Deposit Guarantee Fund accounted for DKK 7.5 billion and DKK 12.3 billion of this amount respectively, while Activities handled on behalf of the government accounted for DKK 6.6 billion. DKK 0.5 billion related to an intra-group balance.
Total equity stood at DKK 25.3 billion, of which DKK 7.5 billion was attributable to the Resolution Fund, DKK 12.3 billion to the Deposit Guarantee Fund and DKK 5.5 billion to Activities handled on behalf of the government. For a specification of the three funds’ income statement items, see the following sections and notes 2 and 3 to the financial statements.
At 31 December 2023, the remaining net loans and guarantees amounted to DKK 0.1 billion (2022: DKK 0.1 billion), while the portfolio of financial assets amounted to DKK 10.7 billion (2022: DKK 10.3 billion).
The rest of the assets mainly consisted of DKK 11.5 billion held on deposit with Danmarks Nationalbank (2022: DKK 9.9 billion) and commitments made by banks, etc. in relation to the Deposit Guarantee Fund amounting to DKK 3.2 billion, unchanged from 2022.
Deposits with Danmarks Nationalbank grew by DKK 1.6 billion in 2023, primarily related to a DKK 1.2 billion contribution to the Resolution Fund for the year and interest income for the year on deposits.
Two of the Group’s subsidiaries were solvently liquidated during the year, FS Finans I A/S (resolution of the former Sparekassen Østjylland) and FS Finans II A/S (resolution of the former Max Bank A/S). In connection with the liquidation of the companies, loans and guarantees totalling DKK 56 million were transferred to Finansiel Stabilitet IPC.
The majority of the remaining loans and guarantees related to Activities handled on behalf of the government, while a minor portion of loans related to FS Finans V A/S (formerly Andelskassen J.A.K. Slagelse) and FS Finans VI A/S (formerly Københavns Andelskasse), which are wound up under the Resolution Fund. DKK 17 million of total loans and guarantees related to FS Finans V A/S and FS Finans VI A/S and DKK 134 million related to Activities handled on behalf of the government.
Other remaining exposures mainly consisted of receivables from estates in bankruptcy and guarantees. How fast the remaining loans will be wound up depends largely on external factors such as the progress of trustees’ estate administration and the debt recovery process. Guarantees will be gradually phased out as they mature. Finansiel Stabilitet furthermore has the ongoing task of recovering previously written-off claims, which amounted to approximately DKK 8.9 billion at 31 December 2023. In 2023, this resulted in the recognition of income of approximately DKK 51 million.