Summary
- PROFIT BEFORE TAX: DKK 426m (the first nine months of 2010: DKK 601m)
- Net interest and fee income under core earnings: DKK 4,164m (the first nine months of 2010: DKK 4,160m)
- Loan impairment charges and provisions for guarantees, etc. under core earnings: DKK 990m
(the first nine months of 2010: DKK 1,302m)
- Core earnings of DKK 427m (the first nine months of 2010: DKK 763m) were adversely affected in the amount of DKK 204m by special items
- Earnings from investment portfolios net of funding costs: DKK 220m (the first nine months of 2010: DKK 364m)
- Solvency ratio: 15.6%, Tier 1 capital: 14.1% and Core Tier 1 capital exclusive of hybrid core capital: 12.5%
(end-2010: 15.8%, 14.1% and 12.5%)
Comments by Management
Anders Dam, Managing Director and CEO:
“The third quarter of 2011 was for Jyske Bank the time of recognition and action.
We had to recognise that the beginning economic recovery that we saw in the course of 2010 and in early 2011 was over the summer replaced by a general economic slowdown due to the unsustainable economic situation in a number of countries. This affected the economic development adversely and will probably continue to do so for an extended period of time. It also had to be recognised that the international and national economic development affected Jyske Bank's earnings considerably, and the stagnating top line in combination with still increasing costs and expenses had led to the result that profit year to date is not at a satisfactory level.
Due to the unsustainable development, the third quarter of 2011 was one of action with focus on future improvement of the bottom line. The initiatives that were implemented in the form of staff reduction, price adjustments and selective acquisitions will affect the earnings and cost development as of 2012 and with full effect in 2013. Inclusive of the effects from the conversion to Bankdata, initiatives have been implemented that, all other things being equal, will increase Jyske Bank's pre-tax profit by DKK 500m-600m as of 2013. In the coming years, we will strive to implement further initiatives to improve the bottom line.
Finally, the third quarter of 2011 offered positive circumstances in the entire IT area. The Danish FSA concluded its inspection of the IT area and we were confirmed in our belief that Jyske Bank's principles and policies essentially meet the requirements in the area. Moreover, a conversion of the IT systems at our international unit in Switzerland has been completed, and a similar conversion took place at Jyske Bank Gibraltar in October 2011. Hence we have begun the conversion of our IT systems and expect that it will be completed with the conversion of the Danish systems to Bankdata in October 2012,” concludes Anders Dam.
