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Vestjysk Bank's CEO quits as loan writedowns spike
September 25, 2012 / 8:26 AM / 5 years ago

Vestjysk Bank's CEO quits as loan writedowns spike

COPENHAGEN, Sept 25 (Reuters) - Denmark’s Vestjysk Bank said on Tuesday its chief executive would resign immediately, after the bank took an additional impairment charge of 600 million crowns ($104.54 million) to cover increased loan risks.

Trading in the bank’s shares had been halted earlier in the day after speculation of more Danish bank mergers mounted, and after business daily Borsen named the bank as one of the small and medium-sized banks that could be next in line.

Because of the extra loan writedowns, Vestjysk Bank said it expected full-year 2012 impairments to be 1.05 billion crowns.

“As a result of the above, and because the bank in recent years has suffered significant impairment losses and made significant allocations for losses on loans and guarantees, the bank’s Supervisory Board has lost confidence in the bank’s Chief Executive, Frank Kristensen,” the bank said in the statement. ($1 = 5.7397 Danish crowns) (Reporting by Mette Fraende)

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