- PROFIT BEFORE TAX AS WELL AS CONTRIBUTION TO BANK PACKAGE I AND THE GUARANTEE FUND FOR DEPOSITORS AND INVESTORS (THE GUARANTEE FUND): DKK 574M (H1 2010: DKK 625M)
- Contribution to Bank Package I and the Guarantee Fund, etc.: DKK 256m (H1 2010: DKK 227m)
- Pre-tax profit: DKK 318m (H1 2010: DKK 398m)
- Net interest and fee income under core earnings: DKK 2,766m (H1 2010: DKK 2,749m)
- In the second quarter, early repayment of subordinated loan capital resulted in a negative value adjustment of DKK 52m, and it offered future interest savings of DKK 65m
- Loan impairment charges and provisions for guarantees under core earnings: DKK 614m (H1 2010: DKK 984m)
- Core earnings: DKK 407m (H1 2010: DKK 346m)
- Investment portfolio earnings net of funding costs: DKK 167m (H1 2010: DKK 279m)
- Balance of loan impairment charges and provisions for guarantees: DKK 3,801m (end-2010: DKK 4,408m).
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Solvency ratio: 16.0%; Tier 1 capital: 14.5%; and Core Tier 1 capital exclusive of hybrid core capital: 12.8%
(end-2010: 15.8%, 14.1% and 12.5%)
Comments by Management
Anders Dam, Managing Director and CEO:
“In many ways, the first half of the year was characterised by strong activity throughout the Jyske Bank Group. We enjoyed a substantial influx of both private and corporate customers. The customer influx supports a positive trend in the business volume in a situation where economic trends are sluggish. It is also positive that the net interest and fee income for the period was maintained at an unchanged level compared with the first half of 2010. Unfortunately, value adjustments were DKK 340m lower than for the same period last year, of which DKK 52m could be attributed to early repayment of subordinated loan capital.
The Danish economy was weaker than expected in the first half of the year and, accordingly, loan impairment charges rose in the second quarter. It was, however, satisfactory that loan impairment charges and provisions for guarantees fell by almost 40% or DKK 370m in the first half of the year relative to the corresponding period in 2010.
Given the solvency ratio of 16.0% and a Core Tier 1 capital ratio (exclusive of hybrid capital) of 12.8% at the end of the first half of 2011, Jyske Bank’s capital structure is at a satisfactory level.
In line with the largest banks in Europe, Jyske Bank has taken part in the EU-wide stress test. Jyske Bank ranked 7 out of 90 participating banks, i.e. the same ranking as Jyske Bank obtained in the stress test in 2010. The result of the stress test confirms that Jyske Bank’s capital position and structure are fully satisfactory to resist any economic setback that may occur.
Finally, in the first half of 2011, the Danish FSA conducted inspections of Jyske Bank. The inspections were concluded and they confirmed that Jyske Bank’s principles and policies in central areas such as credit and solvency in all material respects are in accordance with the FSA’s interpretation of the rules in the respective areas. The report is annexed to this corporate announcement”, concludes Anders Dam.
