Jyske Bank A/s · OMXCOP:JYSK
Jyske Bank A/s — Jyske Bank A/S Ord — Q4 2024 Earnings Presentation
49 slides from Jyske Bank A/s's earnings presentation, Feb 26, 2025
Slide 1: Investor Presentation Q4 2024
Investor Presentation Q4 2024 26 February 2025
Slide 2: Summary
1 Summary 2 2 Highlights 6 3 Financials 14 4 Volumes 22 Q4 2024 Summary 5 Sustainability 28 Executive summary 6 Jyske Bank in brief 32 Financial highlights Outlook 7 Macroeconomics 43 8 Calendar and contacts 47
Slide 3: Strong end to 2024 and historical capital returns
Strong end to 2024 and Improved momentum Outlook for 2025 historical capital returns with personal customers announced Net profit of DKK 5.3bn at the top of the Increasing and more proactive customer Net profit of DKK 3.8bn-4.6bn expected guidance of DKK 5.0bn-5.3bn for 2024. interactions, improving
Slide 4: Strong end to 2024, reaching upper end of target range for the year
Summary | Financial highlights Strong end to 2024, reaching upper end of target range for the year Net fee income up 18% y/y amid significantly higher AuM and net inflow of private banking customers Q4 2024 11.5% 49% 0bp DKK 19.5 17.6% Return on tangible equity (p.a.) Cost/income Cost of risk Earnin
Slide 5: Continued underlying progress in 2025 amid lower interest rates
Summary | Outlook Continued underlying progress in 2025 amid lower interest rates Outlook for improving momentum, healthy fee development and solid credit quality Earnings per share Lower in 2025 than in 2024 Core income DKK Lower net interest income and lower value adjustments 100 90 Slightly highe
Slide 6: Highlights
1 Summary 2 2 Highlights 6 3 Financials 14 4 Volumes 22 Q4 2024 Highlights 5 Sustainability 28 Outlook for lower interest rates in 2025 6 Jyske Bank in brief 32 Boosting momentum with personal customers Net fee income up 18% y/y in Q4 2024 Slightly higher costs expected for 2025 7 Macroeconomics 43
Slide 7: Outlook for lower interest rates in 2025
Highlights | Net interest income Net interest margin is likely to gradually be approaching stabilisation Net interest income as % p.a. of lending and deposits (excl. repo) 4.5% Nationalbanken's certificate of deposit rate Jyske Bank's net interest margin 1.5% (left axis) (right axis) 1.4% 3.5% 1.3%
Slide 8: Boosting momentum with personal customers
Highlights | Personal customers Increased lending to personal customers Quarterly growth rate of nominal mortgage lending to personal customers 1.5% 1.0% Highest organic growth rate for more than five years Underpinned by significantly improved customer satisfaction and net client inflow 0.5% Boosti
Slide 9: Net fee income up 18% y/y in Q4 2024
Highlights | Net fee income Net fee income split by recurring and activity-driven income Trailing four quarters, DKKm 3,000 Recurring net fee income Activity-driven net fee income 2,500 2,000 Net fee income up 18% y/y in Q4 2024 1,500 Strongest increase of assets under management on record in 2024 1
Slide 10: Slightly higher costs expected for 2025
Highlights | Costs Core expenses showed a stable development prior to recent acquisitions DKKbn 6.5 6.3 Acquisition of Handelsbanken Denmark and PFA Bank 5.3 5.4 5.2 5.1 5.0 5.0 4.9 4.8 4.9 Slightly higher costs expected for 2025 Lower integration costs, fewer FTE’s going into the year and increased
Slide 11: Solid buffer in declining interest rate environment
Highlights | Credit quality Post-model adjustments of DKK 1.8bn (34bp) is >4x loan impairment charges of last decade Post model adjustments buffer and loan impairment charges DKK 1.8bn DKK 1.6bn Above COVID-19 level Solid buffer in declining 3x pre COVID-19 4x total of last deacde interest rate envi
Slide 12: Historical dividend and historical buyback
Highlights | Capital distribution Capital distribution by time of announcement DKKbn 4.0 Dividend Share repurchase programme 3.5 3.0 Historical dividend and 2.5 historical buyback 2.0 DKK 2.25bn buyback in addition to 1.5 ordinary dividend of DKK 24 per share 1.0 0.5 COVID-19 Acquisition of SHB DK 0
Slide 13: Financially progressing according to strategy
Highlights | Financial strategy update Financially progressing according to strategy Strong start amid improved momentum with personal customers, aiming to reach ≥10% RoTE by 2028 Offsetting impact from lower Assuming a cost of risk of 8bp interest rates through-the-cycle Cost Significantly improved
Slide 14: Financials
1 Summary 2 2 Highlights 6 3 Financials 14 4 Volumes 22 Q4 2024 Financials 5 Sustainability 28 Net interest income 6 Jyske Bank in brief 32 Net fee and commission income Value adjustments and investment portfolio earnings Other income and operating lease 7 Macroeconomics 43 Core expenses Loan impair
Slide 15: Lower deposit margin as policy rates continue to decrease
Financials | Net interest income Lower deposit margin as policy rates continue to decrease Nationalbanken lowered the certificate of deposit rate four times in 2024 Net interest income Net interest income down 4% q/q Net interest income bridge DKKm Quarter/quarter, DKKm Nationalbanken’s policy rate
Slide 16: Strong net fee income momentum, reaching highest level on record
Financials | Net fee and commission income Strong net fee income momentum, reaching highest level on record Increase of 18% y/y underpinned by higher assets under management Net fee and commission income Net fee income increased 18% y/y Net fee and commission income bridge DKKm Year/year, DKKm Secur
Slide 17: Lower value adjustments amid muted end to strong 2024
Financials | Value adjustments and investment portfolio earnings Lower value adjustmets amid muted end to strong 2024 Somewhat challenging market conditions amid spread widening Value adjustments DKK 172m of value adjustments Investment portfolio earnings DKKm DKKm Option-adjusted spreads of Danish
Slide 18: Largely stable other income in Q4
Financials | Other income and operating lease Largely stable other income in Q4 Normalising gains from sale of used leasing cars and lower negative impact from associated companies Income from operating lease (net) DKK 31m of operating lease income (net) Other income DKKm DKKm Continued normalizatio
Slide 19: Cost inflation under control
Financials | Costs Cost inflation under control Underlying costs unchanged despite salary inflation Core expenses Underlying core expenses up 0.1% y/y Core expenses bridge DKKm Year/year, DKKm Core expenses excl. one-off items One-off items Slightly higher employee costs 1,684 Sector-wide salary inc
Slide 20: Credit quality remains solid with cost of risk at low level
Financials | Loan impairment charges Credit quality remains solid with cost of risk at low level of DKK 8m in Q4 Outlook for continued low level of loan impairment charges in 2025 Cost of risk DKK -8m (0bp) cost of risk Exposure by IFRS 9 stages bp %/DKKbn Post-model adjustments remain at high level
Slide 21: Highest dividend and largest buyback on record announced
Financials | Capital and funding Highest dividend and largest buyback on record announced Strong capital position, above targeted level Common equity tier 1 ratio bridge 17.6% CET1 ratio vs. 15%-17% target Risk exposure amount Quarter/quarter DKKbn Capital distribution: Record-setting DKK 24 per sha
Slide 22: Volumes
1 Summary 2 2 Highlights 6 3 Financials 14 4 Volumes 22 Q4 2024 Volumes 5 Sustainability 28 Business volumes 6 Jyske Bank in brief 32 Lending composition Mortgage portfolio 7 Macroeconomics 43 Commercial property deep dive Main exposure: The Danish mortgage market 8 Calendar and contacts 47
Slide 23: Significantly improved momentum with personal customers
Volumes | Business volumes Significantly improved momentum with personal customers Highest mortgage growth for more than five years in addition to improved inflow of funds Business volumes Key takeaways Development of business volumes DKKbn Personal Corporate Index Mortgage loans (nominal) 140 Asset
Slide 24: Strong footprint within structurally growing lending for housing purposes
Volumes | Lending composition Strong footprint within structurally growing lending for housing purposes Low-risk mortgage exposures constitute 75% of total lending Split of lending volumes Loans, advances and guarantees by sector Excl. repo (net) Leasing Personal customers 38% 4% Finance and insuran
Slide 25: Robust mortgage portfolio
Volumes | Mortgage portfolio Robust mortgage portfolio Low 45% loan-to-value of mortgage exposures at Jyske Realkredit Mortgage lending with low loan-to-value Product split of mortgage lending 0%-20% 20%-40% 40%-60% 60%-80% 80%-100% Avg. Fixed ARM 2-10Y ARM 1-2Y Capped floater Non-capped floater Int
Slide 26: Prudent loan-to-value levels of commercial property exposures
Volumes | Commercial property deep dive Prudent loan-to-value Manageable share of overall exposure Non-performing loans at low level levels of commercial Residential rental; office, business property mortgages Residential rental Office, business property mortgages property mortgages 0.02% property e
Slide 27: Danish mortgage market is structural, low-risk growth
Volumes | Main exposure: The Danish mortgage market Danish mortgage market is Balance principle limits funding risks High and resilient growth of mortgage lending structural, low-risk growth Balance sheet of Jyske Bank DKKbn 3,500 Mortgage lending, Denmark +4.2% p.a. Bank lending, Denmark Equity 3,0
Slide 28: Sustainability
1 Summary 2 2 Highlights 6 3 Financials 14 4 Volumes 22 Q4 2024 Sustainability 5 Sustainability 28 Approach 6 Jyske Bank in brief 32 Targets Next steps 7 Macroeconomics 43 8 Calendar and contacts 47
Slide 29: Strategic approach and priorities for sustainability
Sustainability | Approach Strategic approach and priorities for sustainability We are committed to making a difference and enabling our customers to become more sustainable 1 2 3 Starting point Commitments Approach We have a strong sustainability We are committed to making a difference We enable our
Slide 30: Targeting net zero emissions by 2050
Sustainability | Targets Targeting net zero emissions by 2050 Reducing emission intensity, financing green investments and improving employee engagement, diversity Emission intensity reduction targets: Lending 29% Realised vs. 2021 26% Realised vs. 2021 31% Realised vs. 2021 - vs. 2020 - vs. 2020 -
Slide 31: Current priorities and next steps for sustainability efforts
Sustainability | Next steps Current priorities and next steps for sustainability efforts Select examples include focus on helping SMEs, climate action planning and furthering biodiversity Encouraging and supporting SMEs’ ESG reporting efforts through inspirational materials. Helping SMEs Increasing
Slide 32: Jyske Bank in brief
1 Summary 2 2 Highlights 6 3 Financials 14 4 Volumes 22 Q4 2024 Jyske Bank in brief 5 Sustainability 28 One of the largest financial institutions in Denmark 6 Jyske Bank in brief 32 History of Jyske Bank Jyske Bank today The last decade 7 Macroeconomics 43 Equity story 8 Calendar and contacts 47
Slide 33: One of the largest financial institutions in Denmark
Jyske Bank in brief | Summary One of the largest Founded in 1967, now a Danish SIFI Structural, low-risk growth focus Leading presence in AAA economy financial institutions in DKKbn Private Corporate 1967 Founded by merger of four banks in Silkeborg 382 86 Denmark 1989 Seven acquisitions in 1970s an
Slide 34: History of Jyske Bank
Jyske Bank in brief | History History of Jyske Bank Solid consolidator with strong track record Founded Post-2008 acquisitions Focus on core business 1967 Consolidator Divesting non-priority activities Jyske Bank founded by merger of four 2011: FinansNord, Easyfleet 2013-2015: International asset mg
Slide 35: Jyske Bank today
Jyske Bank in brief | Overview Jyske Bank today One of the leading financial institutions in Denmark Top 3 >700,000 3,900 Banking Customers Colleagues Jyske Bank Top 4 3,860 DKK 750bn c. 12% Mortgage Colleagues Total assets Market share Jyske Realkredit Top 3 >140,000 Leasing Shareholders Jyske Fina
Slide 36: During the last decade, Jyske Bank has become larger, leaner, and stronger
Jyske Bank in brief | The last decade During the last decade, Jyske Bank has become larger, leaner, and stronger DKK 8.4bn DKK 13.7bn Core income +62% 63% 47% Cost/income -16pp. 9bp 0bp Cost of risk -9bp DKK 2.5bn DKK 5.3bn 2015 2024 Net profit +115% DKK 355bn DKK 510bn Lending +44% DKK 129bn DKK 19
Slide 37: Jyske Bank – Potential for more
Jyske Bank in brief | Equity story Jyske Bank – Potential for more Aiming to deliver attractive returns through the cycle Please see the five subsequent slides for further information. Operating in Denmark, a structurally attractive banking environment 1 AAA economy with stable growth, high digitali
Slide 38: Operating in a structurally attractive banking environment
Jyske Bank in brief | Equity story deep dive (1/5) 1 Operating in a structurally Financialized economy underpins market size Denmark is highly digitized… attractive banking 4th IMD World Digital Competitiveness Ranking of 2023 environment Loans per capita 3,3x … and a digital payments leader Jyske B
Slide 39: A solid financial profile with sound fundamentals
Jyske Bank in brief | Equity story deep dive (2/5) 2 A solid financial profile with sound fundamentals Exposed towards structurally growing, low risk Danish mortgage market 75% Strong operating performance Significant long-term value creation Attractive Danish mortgage exposure Last four quarters Bo
Slide 40: Resilient operations with low risk through-the-cycle
Jyske Bank in brief | Equity story deep dive (3/5) 3 Resilient operations with low risk through-the-cycle Highly collateralized exposures, low normalised cost of risk with significant buffers in place Low cost of risk and high post-model adj. Highly collateralised exposures Solid capital and liquidi
Slide 41: 2028 strategy
Jyske Bank in brief | Equity story deep dive (4/5) 4 2028 targets 10% <50% ≥15% Capital distribution Return on Cost/income ratio CET1 ratio 30% dividend supplemented tangible equity by share buybacks Personal & Private Banking #1 Top 3 +35% Potential for more Private banking customer satisfaction vs
Slide 42: Growing capital returns to shareholders
Jyske Bank in brief | Equity story deep dive (5/5) 5 Growing capital returns to shareholders Capital generation underpinning yield potential from 30% dividend in addition to share buybacks Capital distribution Capital distribution policy Share of shareholders’ profit paid out in subsequent year 120%
Slide 43: Macroeconomics
1 Summary 2 2 Highlights 6 3 Financials 14 4 Volumes 22 Q4 2024 Macroeconomics 5 Sustainability 28 Select key figures 6 Jyske Bank in brief 32 Jyske Bank forecast 7 Macroeconomics 43 8 Calendar and contacts 47
Slide 44: Balanced Danish economic development
Macroeconomics | Select key figures (1/2) Balanced Danish economic Real gross domestic product Inflation rate development 2010=100 140 135 Denmark Euro area HICP, year/year 12% Denmark Euro area 10% 130 125 8% 120 6% Interest rates are decreasing with 115 110 4% inflation under control 105 2% 100 0%
Slide 45: Healthy sector volume development
Macroeconomics | Select key figures (2/2) Healthy sector volume Danish real estate prices House prices to disposable income development Year/year 40% One-family houses Owner-occupied flats 2015=100 140 Denmark Euro area 30% 130 20% 120 Bank lending and deposits increase 10% 110 5% y/y 0% 100 -10% 90
Slide 46: Jyske Bank's macroeconomic forecasts for Denmark
Macroeconomics | Jyske Bank forecast Jyske Bank’s macroeconomic DKKbn Real growth (%) forecasts for Denmark Danish economy 2024 2022 2023 2024 2025E 2026E Consumer spending 1,332 -2.1 1.4 0.9 1.5 1.8 Public spending 669 -2.5 0.2 1.8 3.4 1.8 Fixed gross investment 640 -6.6 -6.6 -0.1 3.0 3.9 Inventory
Slide 47: Calendar and contacts
Calendar and contacts 1 Summary 2 Financial calendar 2025 2 Highlights 6 26 Feb. Announcement of the 2024 results 26 Feb. Annual report 2024 26 Feb. Risk management report 2024 3 Financials 14 25 Mar. Annual general meeting 07 May. Interim report for the first quarter of 2025 19 Aug. Interim report
Slide 48: Disclaimer
Disclaimer This presentation and the information contained the information presented herein. Those presentations investment. Jyske Bank A/S or its affiliates may also therein is furnished and has been prepared solely for or the information reflect the different assumptions, have investment banking o
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