- PRE-TAX PROFIT: DKK 502m (Q1 2011: DKK 200m).
- THE PRE-TAX PROFIT CORRESPONDED TO A RETURN OF 14.5% PA ON OPENING EQUITY (Q1 2011: 6.0% PA).
- Net interest and fee income under core earnings: DKK 1,556m (Q1 2011: DKK 1,394m).
- Core earnings before loan impairment charges and provisions for guarantees: DKK 746m (Q1 2011: DKK 541m).
- Loan impairment charges and provisions for guarantees, etc. under core earnings: DKK 398m (Q1 2011: DKK 244m).
- Core earnings: DKK 348m (Q1 2011: DKK 297m).
- Earnings from investment portfolios net of funding costs: DKK 192m (Q1 2011: DKK 72m).
- Fair value of the “held-to-maturity portfolio” was DKK 133m higher than the carrying amount (end-2011: DKK 7m lower than the carrying amount).
- Profit before contribution to the Guarantee Fund, etc.: DKK 540m (Q1 2011: DKK 369m).
- Contribution to the Guarantee Fund, etc.: DKK 38m (Q1 2011: DKK 169m).
- Balance of loan impairment charges and provisions for guarantees: DKK 3,973m (end-2011: DKK 3,871m).
- Liquidity reserves: DKK 42bn (end-2011: DKK 38bn).
- Solvency ratio: 16.5%; Core Tier 1 capital: 15.0%; and Core Tier 1 capital exclusive of hybrid core capital: 13.7%
(end-2011: 14.7%, 13.3% and 12.1%, respectively).
- Individual solvency requirement: 10.3% (end-2011: 10.0%).
- Loan impairment charges and provisions for guarantees for 2012 are expected to be DKK 1.6bn to DKK 2.0bn following the introduction of the FSA’s new stricter rules on impairment charges and provisions for guarantees.
Comments by Management
Anders Dam, Managing Director and CEO:
“Having generated a pre-tax profit of DKK 502m and core earnings of DKK 348m and with the still increasing activity level, we are satisfied with the development in the first quarter of 2012. We are beginning to see the results of the initiatives implemented in the autumn, we experience resonable value adjustments, and other operating income, which is increasingly affected by the acquired leasing activities, is also showing decent progress. The integration and the development of the acquired activities are according to expectations. In the first quarter of 2012, we converted as planned the IT systems of Easyfleet, and also the preparations for the conversion to Bankdata are progressing according to plan, and we are looking forward to the completion of the conversion in October 2012.
In the first quarter, the value adjustments were affected by the forced conversion of Jyske Bank's Greek government bonds under the private sector initiative (PSI). At the end of the first quarter of 2012, Jyske Bank’s exposure to Greece was calculated at DKK 39m.
Loan impairment charges and provisions for guarantees as well as recognised losses are at an expected level. The level is lower than that of the fourth quarter of 2011, but still above the historical average. As of the second quarter of 2012, we will implement the FSA’s new stricter rules for loan impairment charges. For 2012, loan impairment charges and provisions for guarantees are expected to be DKK 1.6bn to DKK 2.0bn.
In the first quarter of 2012, Jyske Bank recognised as an expense DKK 38m in respect of the Guarantee Fund, etc. The expenses are attributable to the accumulation of capital in the new Deposit Guarantee Scheme adopted in March 2012 and to expected expenses in respect of the calculation of dividends relating to Fjordbank Mors af 2011. Jyske Bank has now recognised as an expense a total of DKK 1,558m for losses in the sector since the bankruptcy of Roskilde Bank.
Thanks to the strengthening of the capital base through the capital increase of DKK 1.1bn and the continued strengthening of earnings and equity in the first quarter of 2012, Jyske Bank’s capital base is solid. Therefore we have the necessary and desired liberty of action to expand the business volumes over the coming years", concludes Anders Dam.
