Interim Financial Report for Q1-Q3 2018


Comments by CEO Anders Dam


Summary

  • Pre-tax profit, exclusive of derived effects from IFRS 9: DKK 2,951m, corresponding to a return of 12.0% p.a. on average equity (Q1-Q3 2017: DKK 3,025m and 12.6% p.a.)
  • Post-tax profit, exclusive of derived effects from IFRS 9: DKK 2,317m, corresponding to a return of 9.4% p.a. on average equity (Q1-Q3 2017: DKK 2,363m and 9.8% p.a.)
  • Core income: DKK 6,131m against DKK 6,167m in Q1-Q3 2017
  • Core expenses: DKK 3,664m, i.e. a decline by 9% relative to Q1-Q3 2017
  • Core profit before loan impairment charges: DKK 2,467m against DKK 2,119m for Q1-Q3 2017
  • Impairment charges: DKK 439m, of which DKK 407m related to IFRS 9
  • Capital ratio: 20.3% and the Common Equity Tier 1 capital ratio 16.6% (end of 2017: 19.8% and 16.4%, respectively)
  • It is the intention of the Supervisory Board that, at the Annual General Meeting in March 2019, a motion be made for the distribution of ordinary dividend of DKK 6.12 per share for the financial year 2018. The ordinary dividend for 2017 was DKK 5.85 per share
  • As of today, Jyske Bank’s clients are also offered Google Pay

Comments by Management

In connection with the publication of the interim financial report for the first nine months of 2018, Anders Dam, CEO and Managing Director, states:

“We still see a positive development in the business segments, and a pre-tax profit of almost DKK 3bn exclusive of derived effects from IFRS 9 is satisfactory under the given interest rate and market conditions. The post-tax profit exclusive of derived effects from IFRS 9 corresponds to a return of 9.4% on equity, and hence the return is still within the targeted range of 8-12%.

The cost trend is as expected in line with the lower number of employees of the Jyske Bank Group. Since the merger with BRFkredit 4½ years ago, the number of employees has been reduced by about 700, and at the same time it has been possible to increase mortgage loans by about DKK 120bn on a net basis.

Jyske Bank’s capital position is still strong. At the end of the third quarter of 2018, the capital ratio was 20.3% and the Common Equity Tier 1 capital ratio 16.6%.

It is the intention of the Supervisory Board that, at the Annual General Meeting in March 2019, a motion be made for the distribution of ordinary dividend of DKK 6.12 per share for the financial year 2018 compared to DKK 5.85 per share for the financial year 2017.

At Jyske Bank's Annual General Meeting in March 2019, the Supervisory Board will further propose that own shares acquired through the existing share buy-back programme of up to DKK 1bn are cancelled.

For quite some time, several Jyske Bank clients have expressed a wish that Jyske Bank establish a cooperation scheme with Google about their payment solution. In order to contribute to our objective “to be where the clients are”, we have today launched Google Pay for existing and future clients of Jyske Bank. Already today, Jyske Bank offers a series of digital payment solutions, such as MobilePay, Garmin Pay, FitBit Pay and Apple Pay. Thanks to the launch of Google Pay, we now offer a product to the clients no matter which phone or device they wish to use”, ends Anders Dam.