Silkeborg, 2016-04-28 08:20 CEST (GLOBE NEWSWIRE) --
| · Core income: DKK 2,063m (Q1 2015: DKK 1,978m) |
|
· Core profit: DKK 623m (Q1 2015: DKK 313m) · Pre-tax profit: DKK 478m (Q1 2015: DKK 502m) |
| · The pre-tax profit corresponded to an annualised return of 6.4% on opening equity (Q1 2015: 7.3% p.a.) |
| · Value adjustments under core profit: DKK 223m (Q1 2015: DKK -150m) |
|
· Loan impairment charges under core profit: DKK 172m (Q1 2015: DKK 327m) o Of which impairment charges on agricultural clients amounted to DKK 228m |
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· Loans and advances: DKK 411bn (end of 2015: DKK 396bn) o Mortgage loans: DKK 258bn (end of 2015: DKK 249bn) o Traditional bank loans and advances: DKK 94bn (end of 2015: DKK 93bn) |
| · Bank deposits: DKK 125bn (end of 2015: DKK 129bn) |
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· Capital ratio: 16.7%, of which the Common Equity Tier 1 capital ratio was 15.9% (end of 2015: 17.0% and 16.1%) o Capital buffer: DKK 9.4bn (end of 2015: DKK 10.9bn) |
In connection with the publication of the interim financial report for the first quarter of 2016, Anders Dam, CEO and
Managing Director states:
'Over the first quarter of 2016, Jyske Bank generated a core profit of DKK 623m. The profit is satisfactory considering the
market conditions. Sales of home loans continued in the first quarter, and at the end of the quarter and as at today, sales
amounted to DKK 61.7bn and 63.3bn, respectively. Developments in the capital markets affected the profit, and DKK -
227m can be attributed to the development of clients' transactions involving interest-rate hedging, and DKK -130m
related to unrealised investment losses on the Bank's shares in Nordjyske Bank. At the same time, improving credit
quality of clients resulted in positive value adjustments of DKK 363m relating to clients' transactions involving interestrate
hedging.
The development of the Group's top line reflected renewed pressure on the interest rate margins and lower net interest
income from the liquidity portfolio. The Group's core expenses fell. The Group's impairment charges were affected by the
difficult situation of agriculture. Exclusive of agricultural clients, net reversals of impairment charges under the core
profit amounted to DKK 56m in the first quarter. The capital base is solid, and at the end of the first quarter of 2016, own
shares, in the amount of DKK 364m, corresponding to almost 50% of the share buy-back programme in the amount of
DKK 750m, had been bought back. The programme will continue up to and including 30 June 2016.
It is expected that the situation with low interest rates and slow demand for credit will continue to characterise the
market. Jyske Bank does, however, see unchanged, good growth potential in the property area in respect of both personal
and corporate clients,' concludes Anders Dam.
