Silkeborg, 2016-08-18 08:14 CEST (GLOBE NEWSWIRE) --
Core profit: DKK 1,559m (1H 2015: DKK 1,489m)
Net profit: DKK 1,193m (1H 2015: DKK 1,389m)
Profit after tax corresponded to an annualised return of 7.9% on opening equity (1H 2015: 10.1% p.a.)
Loan impairment charges under core profit: DKK 67m (1H 2015: DKK 351m)
Of which impairment charges on agricultural clients amounted to DKK 273m
Loans and advances: DKK 407bn (end of 2015: DKK 396bn)
Mortgage loans: DKK 268bn (end of 2015: DKK 249bn)
Traditional bank loans and advances: DKK 96bn (end of 2015: DKK 93bn)
Bank deposits: DKK 129bn (end of 2015: DKK 129bn)
The merger of Jyske Bank and BRFkredit
The target of synergies in the amount of at least DKK 600m annually has been achieved
Integration costs have now been finally calculated at DKK 110m against the most recent
expectations of DKK 100-150m and originally anticipated DKK 300-400m
Capital ratio: 17.0%, of which the CET1 capital ratio was 15.8% (end of 2015: 17.0% and 16.1%)
Capital buffer: DKK 9.9bn (end of 2015: DKK 10.9bn)
The current share buy-back programme is raised by DKK 500m to DKK 1bn
In connection with the publication of the interim financial report for the first half of 2016, Anders Dam, CEO and Managing Director states:
"Sales of home loans continued at a satisfactory pace, and at the end of the first half of the year and as at today, they amounted to DKK 68.0bn and DKK 71.5bn, respectively, against DKK 57.5bn at the end of 2015. It is expected that sales of home loans will continue at a high pace, also in the second half of the year. The credit quality of the jointly funded loans is high, and since the joint funding programme began in 2012, only DKK 0.5m have been lost on the portfolio.
The synergies announced in connection with the merger with BRFkredit in the second quarter of 2014 have now, 18 months ahead of plans, been fully realised with an annual effect of more than DKK 600m. The integration costs have now been finally calculated at DKK 110m against the most recent announcement of DKK 100m-150m.
On that basis, in the first half of 2016, Jyske Bank generated a return on opening equity of 7.9% p.a. after tax.
The 2% increase in net interest income is to be seen on the background of the growth strategy and the early stabilisation of traditional bank loans and advances, which more than offset the continued pressure on the interest rate margins. The early stabilisation of traditional bank loans and advances marks a breakaway from the trend of falling traditional bank loans and advances seen over several years. However, the growth prospects of the Danish economy for the coming years must still be characterised as moderate.
The credit quality of the Group's loans and advances has improved and is only weighed down by the difficult conditions for agriculture, and in particular for dairy farmers. Impairment charges amounted to DKK 67m in the first half of the year, and exclusive of agriculture there was a reversal of DKK 206m. In respect of problems within agriculture, the management's estimate totals DKK 290m.
Jyske Bank continued its adjustment of the capital structure in line with previous announcements and issued subordinated debt in the amount of SEK 1bn in the second quarter. The Supervisory Board has decided to raise the new share buy-back programme launched on 1 July by DKK 500m to DKK 1bn. The previous programme in the amount of DKK 750m was, as planned, completed at the end of the second quarter. As at today's date, Jyske Bank has bought back 3.25% of the share capital, ends Anders Dam."
