Interim financial report, Q1 2022

Bank Jyske

  • Earnings per share: DKK 12.1 (Q1 2021: DKK 11.6)

  • Net interest income: DKK 1,312 million. (Q1 2021: DKK 1,224 million)

  • Net commissions: DKK 683 million (Q1 2021: DKK 576 million)

  • Value adjustments: DKK 9 million (Q1 2021: DKK 362 million)

  • Basic income: DKK 2,189 million (Q1 2021: DKK 2,235 million)

  • Core expenses: DKK 1,160 million (Q1 2021: DKK 1,171 million)

  • Impairment charges: -55 million DKK (Q1 2021: 10 million DKK)

  • Profit before tax amounted to DKK 1,088 million, corresponding to a pre-tax return on equity of 12.0% pa (Q1 2021: DKK 1,129 million and 12.9% pa)

  • Net profit amounted to DKK 851 million, corresponding to a return on equity of 9.3% pa ​​(Q1 2021: DKK 883 million and 10.0% pa)

  • Equity ratio 21.6%, of which common equity tier 1 equity ratio of 17.2% (T1 2021: 23.2% and 18.0%, respectively)

  • Individual solvency requirement: 10.7% (Q1 2021: 11.5%)


“Indeed, Russia’s invasion of Ukraine marked the first quarter of 2022. The war has brought enormous human costs, driven millions of Ukrainians and changed the global geopolitical order. Jyske Bank tries to make a small contribution to improve the situation of Ukrainian refugees in Denmark by creating 15-20 jobs for these refugees. Additionally, Jyske Bank Group employees have been given the option to take one or two days off per month for the rest of 2022 to offer voluntary work due to the refugee situation. Additionally, we strive to help our clients manage the implications of war and comply with extensive international sanctions against Russia. Jyske Bank’s direct exposure to Russia and Ukraine is limited. The Group is well capitalized and well prepared to face more uncertain economic conditions. Compared to the first quarter of 2021, Jyske Bank achieved higher results excluding value adjustments and, as announced, the outlook for 2022 has been revised upwards. The development is supported by the strongest growth in bank loans and advances for more than a decade as well as a generally high level of activity”says Anders Dam, Managing Director and CEO.

The recovery of the Danish economy continued in the first quarter of 2022. The development was supported by a recovery in economic activity globally with strong consumer demand as well as the reopening of society after a period characterized by COVID-19. The positive development continued despite tight supply chains, a tight labor market and accelerating inflation. The Danish economy will be affected by the effects of Russia’s invasion of Ukraine, including the sharp rise in energy prices and reduced demand in export markets. On this basis, economic growth is likely to be more modest.

In addition to Russia’s invasion of Ukraine, rising interest rates, financial market volatility and accelerating inflation in the first quarter of 2022 have intensified our focus on proactively advising our clients in a situation where consumer confidence has reached its lowest level in several decades. Through dialogue with clients, targeted information and numerous webinars, we aim to help our clients understand their financial situation.

Since 2011, Jyske Bank has focused on optimizing its business through major revenue and cost initiatives, new strategic partnerships, as well as organizational adjustments. Therefore, Jyske Bank focused on the Group’s core businesses and divested non-core businesses. Several acquisitions have been integrated, of which the merger with BRFkredit in 2014 being the most important. Throughout the period, increasing productivity has been the goal. Organizational changes have been made to focus and strengthen customer-focused functions through the creation of Retail, Corporate and Private Banking customer units and a development organization within the Jyske Bank Group. Taken together, these initiatives help to ensure that Jyske Bank is well positioned for growth in the years to come.

In the first quarter of 2022, corporate customers further increased their market share in a strong growth market for bank loans and advances. The Personal Client Area implemented new branch mergers and from April 1, 2022 introduced a new client program to ensure that Jyske Bank can profitably offer its personal clients advice accessible, personalized and competent as well as good and fast service. In addition, the expansion of easy and digital access to Jyske Bank services, among others, in the form of self-service ordering of additional loans and a Jyske Forsikring (insurance) overview in Jyske Mobilbank. Finally, extensive training activities for advisors in the field of sustainability have been launched.

Earnings per share of DKK 12.1 in Q1 2022
Net profit for the period of DKK 851 million corresponds to a return on equity of 9.3% pa ​​compared to DKK 883 million and 10.0% pa, respectively, for the first quarter of 2021. Earnings per share amounts to 12.1 DKK against 11.6 DKK. The continued strong earnings per share can be attributed to a high level of activity, an increasing volume of business, tight cost management and high credit quality, as well as a number of shares in traffic still down.

In the first quarter of 2022, Jyske Bank’s business volume continued to increase. Loans and advances for banking activities experienced one of the highest growth rates recorded to date, namely 16% compared to the first quarter of 2021. The increase is still driven by corporate customers. Car leasing and financing achieved a 10% increase. Nominal mortgages rose 2% on higher business lending, while retail mortgages declined slightly. Bank deposits remained virtually unchanged.

Basic income decreased by 2% compared to the first quarter of 2021. The decrease is solely attributable to the decline in value adjustments, which fell from a very high level. All other revenue items increased due to higher business volume, lower deposit rates, as well as higher commission income due to the generally high level of activity.

Core expenses decreased by 1% compared to the first quarter of 2021. This decrease can be attributed to a reduction of 1% in the number of full-time employees as well as lower expenses for the shared development of a capital market program at Bankdata. was completed in 2021.

Loan impairment charges and provisions for guarantees amounted to an income of DKK 55 million compared to a charge of DKK 10 million in the first quarter of 2021. Credit quality is still solid with a low level of loans and advances non-performing. Jyske Bank has, however, made a management estimate regarding impairment charges to counter any effects derived from Russia’s invasion of Ukraine. Management’s total estimate of the impairment charge was DKK 1,630 million.

At the end of the first quarter of 2022, Jyske Bank’s Common Equity Tier 1 capital ratio was calculated at 17.2%, corresponding to a capital excess of DKK 14.2 billion over regulatory requirements. The Common Equity Tier 1 ratio decreased by 1 percentage point in the first quarter of 2022 due to the increase in the ongoing share buyback program of DKK 1 billion as well as the implementation of the guidelines of the EBA, which are now fully recognised. On the other hand, the Common Equity Tier 1 capital ratio requirement was reduced by 0.3 percentage point.

Outlook 2022
Jyske Bank expects earnings per share of DKK 44-50 in 2022 according to Corporate Announcement No. 29/2022. This corresponds to a net profit of DKK 3.0 to 3.4 billion.

For 2022, the volume of business should be affected by the increase in bank loans and advances as well as the increase in nominal mortgage loans, in particular to corporate customers.

Basic income could fall in 2022 due to lower value adjustments than in 2021.

Core spending excluding one-time spending is expected to decrease in 2022 compared to 2021.

Loan impairment charges and warranty provisions are expected to be income in 2022.

Yours faithfully,
Bank Jyske

Anders Dam, Managing Director and CEO, tel. +45 89 89 20 01
Birger Krøgh Nielsen, Chief Financial Officer, tel. +45 89 89 64 44


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