Jyske Bank Annual Report 2020


Interview with CEO Anders Dam


Summary

  • Core income: DKK 7,982m (2018: DKK 8,060m)
  • Core expenses: DKK 4,848m (2019: DKK 5,029m)
  • Loan impairment charges: DKK 968m incl. DKK 1 bn increase of management’s estimate (2019: DKK -101m)
  • Core profit: DKK 2,166m (2019: DKK 3,132m)
  • Pre-tax profit: DKK 2,110m, corresponding to a return on equity of 5.9% (2019: DKK 3,079m and 9.1%)
  • Net profit: DKK 1,609m, corresponding to a return on equity of 4.4% (2019: DKK 2,440m and 7.1%)
  • Earnings per share: DKK 19.8 (2019: DKK 29.0)
  • Capital ratio of 22.9% and Common Equity Tier 1 ratio of 17.9% (2019: 21.5% and 17.4%)
  • For 2021, Jyske Bank estimates a pre-tax profit in the range of DKK 2.5 bn - 3.0 bn, corresponding to a net profit of DKK 1.9 bn - 2.3 bn. Inclusive of the current share repurchase programme, earnings per share are ex-pected to be DKK 25-31 against DKK 19.8 for 2020.

“A challenging first quarter of 2020 was followed by three quarters resulting in a pre-tax profit of DKK 3.1 bn and a net profit of DKK 2.4 bn, corresponding to earnings per share of DKK 31.2. The client activity is at a solid level, and the underlying business has developed in a stable fashion supported by significant cost reductions and a continuing good credit quality. Also, the organi-sation has been most adaptive and flexible during a turbulent year characterised by restrictions. Jyske Bank has a satisfactory balance of impairment charges as well as a most solid capital and liquidity position, which has, so far, enabled the bank to launch a share repurchase programme in the amount of DKK 750m,” states Anders Dam, CEO and Managing Director.