| · Pre-tax profit: DKK 3,103m (2013: DKK 2,301m) |
| · The pre-tax profit corresponded to an annualised return of 17.8% on opening equity (2013: 14.7%) |
| · BRFkredit's pre-tax profit for the period 1 May to 31 December 2014 amounted to DKK 457m |
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· Value adjustments DKK -653m (2013: DKK 541m) o Of which relating to customers interest-rate hedging DKK -541m (2013: DKK 249m) |
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· Loan impairment charges and provisions for guarantees: DKK 2,538m (2013: DKK 1,147m) o Of which management's estimate, primarily relating to agriculture: DKK 350m (2013: DKK 0m) o At end-2014, the overall impairment ratio for milk producers and pig farming amounted to 36% o Recognised losses DKK 1,139m (2013: DKK 1,331m) |
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· Loans and advances: DKK 362bn (2013: DKK 131bn) o Mortgage loans: DKK 219bn (2013: DKK 0bn) o Bank loans and advances: DKK 120bn (2013: DKK 111bn) · Of which new home loan products: DKK 18bn (2013: DKK 0.4bn) |
| · Bank deposits: DKK 133bn (2013: DKK 116bn) |
| · Capital ratio 16.4%, of which Common Equity Tier 1 capital ratio of 15.3% (2013: 16.0% and 15.3%) |
| · Individual solvency requirement: 10.9% (2013: 9.8%) |
In connection with the publication of Jyske Bank's Annual Report 2014, Anders Dam, Jyske Bank’s CEO and Managing Director states:
"A profit of DKK 3.1bn is - seen in isolation - satisfactory, and compared with the results of previous years, this is a historically high profit for the Group. The year 2014 was historic for the Group, where the merger with BRFkredit was beyond all comparison the all-important event and the greatest, strategic initiative in the Group for many years. The first eight months after the merger confirmed to us that the Group offers considerable growth potential, and that the expected possibilities of synergies still exist. Also, the merger with BRFkredit resulted in Jyske Bank's exit from the Totalkredit cooperation, and the terms and conditions relating to this were finally agreed in February 2015 after the end of the financial year, and therefore the Group can now fully optimise the processes relating to its mortgage activities.
Our new home loan products, and the reception that the products enjoyed among clients, were very satisfactory, and lending growth in the amount of DKK 32bn relating to these products created a solid basis for the development in the lending volume in a market that is otherwise under pressure, and with the sector as a whole being characterised by setbacks. Per today there has been granted new home loan products for DKK 37bn.
The profit was favourably affected by the merger with BRFkredit, including bargain purchases DKK 2,360m and the pre-tax profit of DKK 457m over eight months. The low and falling level of interest rates, the limited activity level in some parts of the Group, the outcome of the European Asset Quality Review (AQR) and management's estimates primarily in respect of agricultural clients, on the other hand, had a negative effect on the profit. Loan impairment charges and provisions for guarantees totalling DKK 2,538m were recognised as an expense compared to DKK 1,147m in 2013, and losses in the amount of DKK 1,139m were recognised against DKK 1,331m in 2013. Finally, DKK 541m for clients' transactions relating to interest-rate hedging were recognised as an expense against an income of DKK 249m in 2013.
At the end of 2014, the capital ratio was 16.4% and the Common Equity Tier 1 capital ratio was 15.3% against 16.0% and 15.3%, respectively, at end-2013. The individual solvency requirement was calculated at 10.9% and the capital buffer was at 5.5%. The Group's capital structure offers a satisfactory basis for continued growth, especially in respect of mortgage activities and home loans in 2015," concludes Anders Dam.
