Region

Jurisdiction

Regulator

2026-06-11

Report on Inspection in Kompasbank A/S

The Danish Financial Supervisory Authority conducted a risk-based inspection of Kompasbank A/S, identifying significant concerns regarding the bank's viability, low capital coverage, and persistent operating losses. The regulator issued a risk disclosure stating that the bank's solvency buffer is insufficient and its stress test methodology is overly optimistic, necessitating a revision of its capital targets to reflect actual risks. Kompasbank is required to strengthen its capitalization to ensure a sound basis for future business development amid high non-performing loan ratios.

Denmark

Finanstilsynet Denmark

Inspection Report 11-06-2026

The Danish Financial Supervisory Authority conducted an inspection in Kompasbank A/S during weeks 5 and 9 of 2026, reviewing the bank's most significant risk areas based on a risk-based assessment.

Summary and Risk Assessment

Kompasbank primarily provides loans to Danish SME customers, but also offers loans to Spanish customers to a limited extent through a partner.

The sum of large exposures is high, as is the share of non-performing exposures in the Danish portfolio.

During the inspection, the Danish Financial Supervisory Authority reviewed a sample representing 28 percent of the bank's total loans as of September 30, 2025. The review did not lead to changes in credit classifications or to new write-downs.

Kompasbank continues to operate at a loss, and the cumulative operating loss since inception amounted to DKK 352 million at the end of the first quarter of 2026.

The bank's earnings in the stress test are associated with considerable uncertainty, as significant new revenue sources are recognized. The bank's approach to the stress test therefore appears imprudent and does not meet the purpose of providing a plausible picture of the bank's business under stressed macroeconomic conditions. There is therefore a risk that the bank's capital target is set too low. The bank should reassess its capital target and stress test so that they better reflect current risks, including the uncertainty regarding revenues from new business areas.

The bank's capital surplus is low and lies below the bank's own capital target. The bank has in periods reduced lending to maintain a positive capital surplus.

The bank has received a risk disclosure stating that the bank's viability is assessed as challenged, given the continued negative earnings, the low solvency surplus, and the high share of non-performing loans, measured by the NPL ratio (Non-Performing Loans ratio). The bank should strengthen its capitalization so that this enables the development of the business scope on a sound basis.

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