Source: Jyske Bank

Profit: DKK 2,762m (1st half 2013: DKK 955m)

 

  • The profit corresponded to an annualised return of 31.6% on opening equity (1st half 2013: 12.2% p.a.)
  • Loan impairment charges and provisions for guarantees: DKK 994m (1st half 2013: DKK 627m)
  • Loans and advances: DKK 344bn (end-2013: DKK 131bn)
    • Mortgage loans: DKK 209bn (end-2013: DKK 0bn)
    • Bank loans: DKK 116bn (end-2013: DKK 111bn)
  • Bank deposits: DKK 130bn (end-2013: DKK 116bn)
  • Capital ratio 16.4%, of which Core tier 1 capital of 15.3% (end-2013: 16.0% and 15.3%)
  • Individual solvency requirement: 10.4% (end-2013: 9.8%)

 

In connection with the publication of the interim financial report for the first half of 2014, Anders Dam, CEO and Managing Director states:
 
”The predominant event in the first half of 2014 was the merger with BRFkredit, due to which the Jyske Bank Group gained a new position in the market place. The merger is based on expectations of growth in business volume and cost synergies. In the first half of 2014, both Jyske Bank and BRFkredit have independently and together won market shares in an otherwise weakening market. As announced in June, the process of cost reductions has begun, and at the end of the first half of the year, the merger is progressing according to plan.
 
On 22 May 2014, the Jyske Bank Group announced expectations of a pre-tax profit for the first half of 2014 at the level of DKK 3.0bn at unchanged market rates. Generally market rates fell in June, and the falling interest-rate level had an adverse effect on the profit, which is the most important explanation why the profit comes to DKK 2.8bn.
 
Today, home loans in the amount of about 16.7bn had been granted via Jyske Bank since the launch in December 2013. This is a business area involving a relatively low risk, yet also with a lower margin than those in connection with normal bank loans. Hence the Jyske Bank Group still sees continued pressure on net interest income and underlying earnings.
 
In first half of 2014, loan impairment charges and provisions for guarantees is affected by a management decision to adapt the methods for the calculation of impairment charges relating to private customers. Due to this decision as well as further exposures with an objective indication of impairment (OEI) and deterioration of certain existing impaired exposures, loan impairment charges and provisions for guarantees for the first half of 2014 came to DKK 994m.
 
At the end of the first half of 2014, the Jyske Bank Group has an overall balance of loan impairment charges and provisions for guarantees and value adjustments for assets taken over in the amount of DKK 8,456m, corresponding to 2.3% of total loans, advances and guarantees.
 
At the end of the first half of 2014, the capital ratio was 16.4% and the Core Tier 1 capital ratio at 15.3% against 16.0% and 15.3%, respectively, at end-2013. Jyske Bank has set a long-term goal of achieving a capital ratio of 17.5% and a Core Tier 1 capital ratio of 14.0%", concludes Anders Dam.

 
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