Vordingborg Bank Falls as Loan Losses Rise: Copenhagen Mover
Stock Chart for Vordingborg Bank A/S (VORD)
Vordingborg Bank A/S, the lender that dismissed its chief executive officer yesterday, fell the most among stocks in Copenhagen trading after 2012 writedowns helped erase earnings accumulated over the previous six years.
Vordingborg Bank fell 21 percent, the most since May 2004, which made it today’s biggest loser in the Copenhagen all-share index. The stock retreated 59 kroner, to 223 kroner, at 12:26 p.m. in the Danish capital with trading volume at 44 times the three-month daily average.
Danish regional banks are struggling to emerge from a burst property bubble that’s forced the government resolution agency to take over a dozen lenders since 2008 after losses on commercial and agricultural loans wiped out capital. Concerns lenders may have to take more writedowns amid a halting recovery in the property market have weighed on Denmark’s smallest banks, extending last year’s 7.3 percent loss in market value.
Vordingborg Bank, based in the city of the same name, said yesterday the need for additional writedowns may result in a 2012 net loss of as much as 25 million kroner ($4.5 million). The loss equals the combined net income of the six years through 2011, according to data compiled by Bloomberg.
Vordingborg Bank said yesterday that CEO Ole Kuehnel would leave his position immediately and postponed the publication of its 2012 earnings report to Feb. 28 from today.
Three of the five biggest losers in today’s Copenhagen trading were regional banks. A Bloomberg index of Denmark’s 23 listed commercial banks with market capitalizations of 1 billion kroner or less fell 0.2 percent today, bringing losses since the start of the year to 6.9 percent.
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