April 2 (Bloomberg) -- Alm. Brand Bank, the lending arm of Danish insurer Alm. Brand A/S, needs to increase its earnings to cover potential losses and take more write-offs, Denmark’s financial regulator said.
The bank must write down 190 million kroner ($34 million) of mostly agricultural loans after a review of 599 loans, including the 65 largest, the Copenhagen-based Financial Supervisory Authority said today in a statement on its website.
“The bank’s business model is challenged by the fact that the bank’s budgeted core earnings are very low and therefore can absorb future losses to only a limited extent,” the agency said. The bank is in the process of unwinding 7 billion kroner in loans, or 68 percent of its total book, the FSA said.
The agency cited Alm. Brand Bank for appointing a board member who also serves on the board of one of its customer.
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