| · Profit after tax: DKK 3,310m, (First nine months of 2013: DKK 1,340m) |
| · Profit after tax corresponded to an annualised return of 25.2% on opening equity (First nine months of 2013: 11.4% p.a.) |
| · Loan impairment charges and provisions for guarantees: DKK 1,489m (First nine months of 2013: DKK 858m) |
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· Loans and advances: DKK 359bn (end-2013: DKK 131bn) o Mortgage loans: DKK 216bn (end-2013: DKK 0bn) o Bank loans: DKK 118bn (end-2013: DKK 111bn) |
| · Bank deposits: DKK 128bn (end-2013: DKK 116bn) |
| · Capital ratio: 16.7%, of which the Common Equity Tier 1 ratio was 15.7% (end-2013: 16.0% and 15.3%) |
| · Individual solvency requirement: 10.7% (end-2013: 9.8%) |
In connection with the publication of the interim financial report for the first nine months of 2014, Anders Dam, CEO and Managing Director states:
"The Jyske Bank Group's pre-tax profit for the first nine months of 2014 amounted to DKK 3,404m against DKK 1,710m for the same period of 2013, and the core profit for the first nine months of 2014 amounted to DKK 3,158m against DKK 1,360m for the same period of 2013.
The third quarter of 2014 was also affected by the merger with BRFkredit, and over the past five months it has been confirmed to us that the merger has a great growth potential. BRFkredit's pre-tax profit for the third quarter of 2014 amounted to DKK 222m, indicating a satisfactory development. BRFkredit accounted for 84% of the total market growth of mortgage loans in the third quarter of 2014 against 57.9% in second quarter of 2014. The increase was attributable to both residential and corporate markets. Today home loans in the amount of DKK 25bn had been granted via Jyske Bank since the launch in December 2013. At this point in time, the increase in net interest income that can be attributed to the new home loans makes up for the decline in the traditional bank loans.
In the first nine months of 2014, the effect of the European Asset Quality Review (AQR) on loan impairment charges and provisions for guarantees came to DKK 456m. In the first nine months of 2014, a net amount of DKK 158m was, for accounts selected for the AQR, recognised as an expense in the form of ordinary loan impairment charges and provisions for guarantees. In addition, based on management's estimate, impairment charges in the amount of DKK 235m relating to personal clients were recognised in the second quarter of 2014, and in the third quarter of 2014 impairment charges of DKK 63m in relation to the AQR were recognised. In the third quarter of 2014, loan impairment charges and provisions for guarantees were also affected by the Russia crisis, which affects, in particular, expectations of agricultural clients' ability to service debt.
Core profit was affected by loan impairment charges and provisions for guarantees by a total of DKK 1,236m in the first nine months of 2014 against DKK 693m in the same period in 2013 and under core profit, loan impairment charges, and provisions for guarantees amount to DKK 398m in the third quarter of 2014.
At the end of the third quarter of 2014, the capital ratio was 16.7% and the Common Equity Tier 1 ratio at 15.7% against 16.0% and 15.3%, respectively, at end-2013. The individual solvency requirement was calculated at 10.7% and the capital buffer remains at six percentage points, hence providing a satisfactory basis for continued lending growth," concludes Anders Dam.
