Danish Regional Banks Fall After Latest Bust: Copenhagen Mover
Oestjydsk Bank A/S (OJBA), which last week said 2012 writedowns will wipe out five years of profit, fell 17 percent to 154.50 kroner at 9:10 a.m., making it today’s largest decliner in the Copenhagen all-share index. Diba Bank A/S (DIBA), which has published losses in the last four quarters, was the second-biggest loser, dropping 10 percent to 30.10 kroner.
Denmark’s state resolution agency has closed down about a dozen banks since the nation’s housing bubble burst in 2008, with a further dozen absorbed by stronger rivals. Jyske Bank A/S (JYSK), Denmark’s second-largest listed lender, said on Jan. 25 it will take over Sparekassen Lolland after the regional bank’s equity was lost.
“Have we seen the last bank failure in Denmark? I hardly think so,” Simon Christensen, an analyst at Nordea Bank AB in Copenhagen, said by phone. “Thinly capitalized banks tend to delay booking writedowns until they’re forced to do so or until they can raise capital, which was also the case here.”
Jyske, based in Silkeborg, Denmark, rose as much as 4.7 percent, the most since Oct. 18.
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