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Review and results

Group results 2024

Finansiel Stabilitet posted a surplus of DKK 1,867 million in 2024 (2023: DKK 2,061 million). The surplus was largely attributable to payment of contributions to the Resolution Fund in the amount of DKK 1,101 million (2023: DKK 1,206 million), a positive return on the securities portfolio and interest income on deposits with Danmarks Nationalbank.
(DKKm)
Group
Financial highlights
2024
2023
2022
2021
2020
Net interest and fee income
517
447
119
89
116
Contributions Deposit Guarantee Fund & Resolution Fund
1,096
1,206
1,146
1,061
941
Market value adjustments
273
391
-859
-182
-51
Other operating income and expenses, etc.
49
15
70
104
50
Staff costs and administrative expenses, etc.
95
74
135
99
113
Impairment losses on loans and advances, etc.
-27
-76
-62
-78
-146
Comprehensive income for the year
1,867
2,061
403
1,051
1,089
Balance sheet as at 31 December
Assets
Due from central banks and credit institutions
13,579
11,521
9,916
8,162
4,306
Loans and advances
52
53
33
91
247
Bonds and shares
10,540
10,716
10,258
11,627
14,410
Commitments made by banks, mortgage credit institutions and investment companies
3,218
3,218
3,218
3,217
3,218
Other asset items
426
419
467
390
343
Total assets
27,815
25,927
23,892
23,487
22,524
Equity and liabilities
Other payables
653
347
369
322
363
Provisions
39
324
328
343
390
Equity
Activities handled on behalf of the government
5,632
5,467
5,270
5,288
5,265
Deposit Guarantee Fund
12,644
12,323
11,919
12,435
12,429
Resolution Fund
8,847
7,466
6,006
5,099
4,077
Total equity
27,123
25,256
23,195
22,822
21,771
Total equity and liabilities
27,815
25,927
23,892
23,487
22,524
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 1,381 million in 2024. The surplus was predominantly attributable to payment of DKK 1,101 million in contributions. Interest income on the securities portfolio and on deposits with Danmarks Nationalbank amounted to DKK 209 million, and market value gains on the securities portfolio amounted to DKK 75 million. The overall return on the marketable portion of the portfolio under management was 3.5%. The Resolution Fund’s surplus was approximately DKK 100 million above the amount guided in the annual report for 2023, mainly driven by a higher return on the securities portfolio.
The Deposit Guarantee Fund generated a surplus of DKK 321 million. The surplus was attributable to interest income on the securities portfolio and deposits with Danmarks Nationalbank in the amount of DKK 116 million and market value gains on the securities portfolio of DKK 193 million. The overall return on the marketable portion of the portfolio under management was 3.7%. The surplus was approximately DKK 100 million above the amount guided in the annual report for 2023 owing to the decrease in bond yields in 2024.
Activities handled on behalf of the government generated a surplus of DKK 165 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 50 million above the amount guided in the annual report for 2023, mainly driven by continued reversal of impairment losses on written-off claims etc.
The Group’s total assets at 31 December 2024 amounted to DKK 27.8 billion (2023: DKK 25.9 billion). The Resolution Fund and the Deposit Guarantee Fund accounted for DKK 8.9 billion and DKK 12.6 billion of this amount respectively, while Activities handled on behalf of the government accounted for DKK 6.8 billion. DKK 0.5 billion related to an intra-group balance.
Total equity stood at DKK 27.1 billion, of which DKK 8.9 billion was attributable to the Resolution Fund, DKK 12.6 billion to the Deposit Guarantee Fund and DKK 5.6 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 2024, the remaining net loans and guarantees amounted to DKK 0.1 billion (2023: DKK 0.1 billion), while the portfolio of financial assets amounted to DKK 10.5 billion (2023: DKK 10.7 billion).
The rest of the assets mainly consisted of DKK 13.6 billion held on deposit with Danmarks Nationalbank (2023: DKK 11.5 billion) and commitments made by banks, etc. in relation to the Deposit Guarantee Fund amounting to DKK 3.2 billion, unchanged from 2023.
Deposits with Danmarks Nationalbank grew by DKK 2.1 billion in 2024, primarily related to the DKK 1.8 billion surplus for the year and a reduction of the portfolio of financial assets.
Two of the Group’s subsidiaries were solvently liquidated during the year: FS Finans III A/S (resolution of the former Amagerbanken) and FS Finans IV A/S (resolution of the former Fjordbank Mors A/S). All companies established in connection with Bank Packages III and IV have thus been liquidated.
The majority of the remaining loans and guarantees related to Activities handled on behalf of the government (DKK 115 million), 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).
Other remaining exposures mainly consisted of receivables from estates in bankruptcy and other claims. How fast these 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 8.8 billion at 31 December 2024. In 2024, this resulted in the recognition of income of approximately DKK 23 million.