January 31, 2018 / 8:14 AM / 20 days ago

Ringkjoebing Landbobank CEO sees dark clouds over farming sector in 2018

COPENHAGEN, Jan 31 (Reuters) - Ringkjoebing Landbobank Chief Executive John Fisker expects a tough year ahead for Danish pig farmers as prices have fallen after an upbeat 2017.

* “2017 was a good year for the farming sector, but darker clouds appeared in the last three months. We fear that this year can be tough, especially for pig farmers,” John Fisker said in an interview

* The bank had impairments of around 10 million crowns on the farming sector in 2017, and expects a similar level this year, he said

* Ringkjoebing Landbobank’s profit before tax increased by 11 percent to 735 million Danish crowns ($122.96 million)

* The bank expects core earnings between 600 million and 675 million crowns in 2018, compared with 675 million last year

* “The biggest risk for us is a sudden rise in interest rates,” he said, adding that low interest rates have resulted in high gearing among Danish households towards the housing market.

* “We see this as a growing concern.” ($1 = 5.9776 Danish crowns) (Reporting by Jacob Gronholt-Pedersen, editing by Terje Solsvik)

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