Silkeborg, 2016-10-27 08:05 CEST (GLOBE NEWSWIRE) --
| SUMMARY |
|
· Core profit: DKK 2,202m (Q1-Q3 2015: DKK 1,841m) · Net profit: DKK 1,914m (Q1-Q3 2015: DKK 1,639m) |
| · Net profit corresponded to an annualised return of 8.5% on opening equity (Q1-Q3 2015: 7.9% p.a.) |
|
· Loan impairment charges under core profit: DKK 144m (Q1-Q3 2015: DKK 381m) o Of which impairment charges on agricultural clients amounted to DKK 385m |
|
· Loans and advances: DKK 410bn (end of 2015: DKK 396bn) o Mortgage loans: DKK 275bn (end of 2015: DKK 249bn) o Traditional bank loans and advances: DKK 94bn (end of 2015: DKK 93bn) |
|
· Bank deposits: DKK 139bn (end of 2015: DKK 129bn) o As of mid-December 2016, negative deposit rates will be introduced on demand deposits for corporate clients |
|
· Capital ratio: 17.8%, of which the Common Equity Tier 1 capital ratio was 15.9% (end of 2015: 17.0% and 16.1%) o Capital buffer: DKK 11.9bn (end of 2015: DKK 10.9bn) |
| · It is the intention of the Supervisory Board, at the Annual General Meeting in March 2017, to propose a motion for the distribution of ordinary dividend for the financial year 2016 in line with the dividend for the financial year 2015 |
|
· Jyske Bank withdraws from Swipp cooperation |
| COMMENTS BY MANAGEMENT |
|
In connection with the publication of the interim financial report for the first nine months of 2016, Anders Dam, CEO and Managing Director, states: "The Jyske Bank Group generated a pre-tax profit of DKK 2,403m compared to DKK 2,129m for the same period of 2015. Quarter by quarter, mortgage activities have improved the profit and, with a pre-tax profit of DKK 329m for the third quarter, the best quarterly financial statements are being reported since the merger in the second quarter of 2014. For the first nine months of the year, the pre-tax profit amounts to DKK 934m against DKK 617m in 2015. The leasing activities are run very efficiently and, with stable earnings, they add to the Group's profit. For the first nine months of the year, the pre-tax profit amounts to DKK 251m, which is in line with that in 2015. Banking activities were affected by low demand for regular banking products and the low interest-rate level. The 5% decline in the Group's costs from 2015 to 2016 and lower impairment charges also had a stabilising effect on the overall earnings. Sales of home loans continued unabated in the third quarter and all the Group's sales channels reported growth. The total increase in new home loans from Jyske Bank amounted to DKK 73.9bn at the end of the third quarter of 2016 and DKK 76.0bn as at today's date. The target is still an increase of DKK 100bn measured as from early 2014, and this target is expected to be met by the end of 2017. Due to the extensive period of and continuing prospects of negative interest rates, for instance, on certificates of deposit with the central bank of Denmark, in combination with the increasing deposit surplus, Jyske Bank will introduce negative deposit rates on demand deposits for corporate clients as of mid-December. Jyske Bank has decided to withdraw from the Swipp cooperation at 11 months' notice, according to contractual basis. Jyske Bank will adopt a commercial and constructive approach to proposals about the future of Swipp that may be put forward by the company's board of directors during the notice period. It is the intention of the Supervisory Board, at the Annual General Meeting in March 2017, to propose a motion for the distribution of ordinary dividend for the financial year 2016 in line with the dividend for the financial year 2015". |
