Slide 1: Investor presentation Q3 2023
Investor presentation Q3 2023 31 October 2023
Slide 2: Summary
Summary Q3 2023 Summary 02 Financials 13 Volumes 20 Sustainability 24 Jyske Bank in brief 27 Macroeconomics 29 Calendar and contacts 33
Slide 3: Aiming for the upper end of the target range for 2023
Summary Aiming for the upper end of the target range for 2023 Upgraded outlook for 2023 Resuming capital distribution New leadership Upper end of DKK 70-80 DKK 500m Lars Stensgaard Mørch Earnings per share in 2023 Dividend New CEO Up to +44% vs. all-time high 2022 level Mix of dividends, share buyba
Slide 4: PFA Bank acquisition closed on 1 October 2023
Acquisition of PFA Bank PFA Bank acquisition closed on 1 October 2023 PFA Bank at a glance No-lending bank c. 10,000 personal/private DKK 16.1bn AuM, established in 2013 banking customers, 40 FTEs DKK 0.7bn deposits Strategic rationale Financials Attractive customer base Negligible capital consumpti
Slide 5: Integration process approaching the final steps
Acquisition of Handelsbanken Denmark Integration process approaching the final steps Transition to be finalised in 2023 Overview of financial impact Branch number to be reduced by c. 25% c. DKK 1.3bn p.a. 92 Normalised pre-tax profit by 2025E Locations June -24% vs. Q4’22 Public announcement Run-rat
Slide 6: Strongest underlying results on record in Q3 2023
Financial highlights Strongest underlying results on record in Q3 2023 Q3 2023 in brief 170 Business volumes (index) Earnings per share (DKK) 160 Assets under management 24.5 150 Mortgage loans (nominal) 23.6 Leasing 140 19.5 18.0 Bank loans (excl. repo, 130 mortgage-like) Deposits (excl. repo) 12.4
Slide 7: Aiming for upper end of target range in record-setting 2023
Highlights Aiming for upper end of target range in record-setting 2023 Earnings per share (DKK) 2023 target 70-80 Realised Q1-3 62 55 42 35 33 35 28 29 26 20 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 7
Slide 8: Strong capital rebuild following acquisition of SHB DK
Highlights Strong capital rebuild following acquisition of SHB DK CET1 ratio bridge (target range: 15%-17%) 16.7% +1.5pp CET1 ratio Q1-3 2023 15.2% Q4'22 Profit Proposed Risk Other Q3'23 dividend exposure Note: Other includes AT1 FX hedging and deductions, etc. 8
Slide 9: Resuming capital distribution with dividend of DKK 500m
Highlights Resuming capital distribution with dividend of DKK 500m Total payout ratio 110% Share repuchases 100% Dividends 90% 80% 70% 60% Acquisition of 50% Handelsbanken Denmark 40% COVID-19 restricted 30% distribution of 2019 profit Rebuilding 20% capital position 10% 0% 2015 2016 2017 2018 2019
Slide 10: Deposit rates already reflect significant pass-through
Highlights Deposit rates already reflect significant pass-through Deposit rates vs. Danish central bank’s certificates of deposit rate (bp p.a.) 400 Positive deposit margin reestablished 350 +25bp to +50bp 300 Lending/deposit rates From 27 November 2023 250 200 150 0.25% p.a. 100 Transaction account
Slide 11: Interest income from bonds only partly reflects rate hikes
Highlights Interest income from bonds only partly reflects rate hikes Interest income from bond portfolio vs. certificates of deposit rate (bp p.a.) 400 350 300 DKK 96bn 250 Bond portfolio 200 Q3 2023 150 100 50 0 -50 -100 2019 2020 2021 2022 2023 Interest income from bonds Certificates of deposit r
Slide 12: Earnings to reach upper end of target range for 2023
Outlook Earnings to reach upper end of target range for 2023 Earnings per share (DKK) Significantly higher in 2023 than in 2022 Core income Mainly due to Handelsbanken Denmark 0 10 20 30 40 50 60 70 80 90 acquisition and a higher level of interest rates 2023E 2022 Significantly higher in 2023 than i
Slide 13: Financials
Financials Q3 2023 Summary 02 Financials 13 Volumes 20 Sustainability 24 Jyske Bank in brief 27 Macroeconomics 29 Calendar and contacts 33
Slide 14: Net interest income up 78% y/y
Financials Net interest income up 78% y/y Net interest income (DKKm) 2,516 2,415 Q3 2023 net interest income (NII) 2,224 benefitted from a higher level of lending rates and interest income from excess liqiduity. +78% y/y 1,773 Net interest income 1,359 1,412 1,277 1,312 • NII from lending supported
Slide 15: SHB DK acquisition partly offset low activity levels
Financials SHB DK acquisition partly offset low activity levels Net fee and commission income (DKKm) Net fee and commission income 683 681 increased slightly as the acquisition of 645 658 602 Handelsbanken Denmark counteracted 598 578 567 553 the effect from lower activity levels. • Securities tradi
Slide 16: Value adjustments of DKK 1.4bn in the last four quarters
Financials Value adjustments of DKK 1.4bn in the last four quarters Value adjustments and investment portfolio earnings (DKKm) 523 452 9 207 240 186 128 DKK +452m Value adjustments Mainly driven by Danish -93 mortgage bonds • Value adjustments of DKK 452m in Q3, significantly above the historical av
Slide 17: Manageable underlying cost inflation following acquisition
Financials Manageable underlying cost inflation following acquisition Core expenses (DKKm) DKK 165m 1,583 1,518 1,553 Core expenses rose c. 3% y/y adjusted for DKKone-off 165m 1,388 1,395 one-off one-off items and the inclusion of SHB 1,273 1,174 1,195 DK. The underlying increase was mainly 1,160 ca
Slide 18: Credit quality remains solid
Financials Credit quality remains solid Cost of risk and net exposure by IFRS 9 stages (bp/DKKbn) 2 Low level of loan impairments charges in 0 Q3 as the share of stage 3 exposures DKK -13m (0bp) remained at a low level. Cost of risk 0 -1 Strong credit quality and -1 • Level of post-model adjustments
Slide 19: CET1 ratio up 0.6pp q/q despite DKK 500m dividend
Capital and liquidity CET1 ratio up 0.6pp q/q despite DKK 500m dividend Common equity tier 1 ratio and risk exposure amount (%/DKKbn) • 16.7% CET1 ratio up 0.6pp q/q and within 15%-17% target range. 16.7% • Dividend of DKK 500m (DKK 7.78 per 16.1% share) to be decided upon at 16.7% extraordinary gen
Slide 20: Volumes
Volumes Q3 2023 Summary 02 Financials 13 Volumes 20 Sustainability 24 Jyske Bank in brief 27 Macroeconomics 29 Calendar and contacts 33
Slide 21: Mostly stable business volumes in Q3 2023
Business volumes Mostly stable business volumes in Q3 2023 Business volumes (index / DKKbn) 170 Business volumes (index) DKK 195bn 160 0% q/q • Mortgage loans (nominal) 150 Mortgage loans (nom.) DKK 108bn Unchanged q/q, as higher corporate 140 +8% y/y lending more than offset lower private 130 lendi
Slide 22: Lending characterised by high mortgage share with low LTV
Lending volumes Lending characterised by high mortgage share with low LTV Split of lending volumes (excl. repo) Mortgage lending with low loan-to-value Leasing 100% 5% Corporate 90% bank loans 80% 19% Private mortgages 70% 35% 60% 57% 50% 52% Private 47% 44% bank loans 40% 41% Mortgage-like 3% 30% 7
Slide 23: High mortgage lending share underpins stability and growth
Main exposure: The Danish mortgage market High mortgage lending share underpins stability and growth The Danish mortgage model Balance principle limits funding risks High and resilient growth of mortgages Balance sheet of Jyske Bank 3,500 Based on a balance principle with no +4.4% p.a. 3,000 default
Slide 24: Sustainability
Sustainability Sustainable business and responsible banking operations Summary 02 Financials 13 Volumes 20 Sustainability 24 Jyske Bank in brief 27 Macroeconomics 29 Calendar and contacts 33
Slide 25: Approach and ambitions
Sustainability Approach and ambitions Ingrained in identity Focus on financed emissions Share of CO2 emissions 0.03% Scope 1 Company cars, local heating 0.08% Scope 2 “We run a sustainable and responsible business” Electricity, district heating First statement in Jyske Bank’s Identity Supporting a w
Slide 26: Targeting net zero emissions by 2050
Sustainability Targeting net zero emissions by 2050 Lending Investments Own operations 1.3 million tonnes CO2 0.6 million tonnes CO2 0.02 million tonnes CO2 Emissions in 2022 Emissions in 2022 Emissions in 2022 -22% vs. 2019 -42% vs. 2019 -19% vs. 2020 Targets for emission intensity reduction Target
Slide 27: Jyske Bank in brief
Jyske Bank In brief Summary 02 Financials 13 Volumes 20 Sustainability 24 Jyske Bank in brief 27 Macroeconomics 29 Calendar and contacts 33
Slide 28: One of the largest financial institutions in Denmark
Jyske Bank in brief One of the largest financial institutions in Denmark Founded in 1967, now a Danish SIFI Focused on structural, low-risk growth Leading presence in AAA economy 347 DKKbn 1967 Founded by merger of four banks in Silkeborg 92 Locations 1989 Seven acquisitions in 1970s and 1980s c. 12
Slide 29: Macroeconomics
Macroeconomics Summary 02 Financials 13 Volumes 20 Sustainability 24 Jyske Bank in brief 27 Macroeconomics 29 Calendar and contacts 33
Slide 30: Macroeconomics
Macroeconomics Real gross domestic product (2010=100) Inflation rate (HICP, y/y) 130 12% 125 10% 120 8% 115 6% 110 4% 105 2% 100 95 0% 90 -2% 2016 2020 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017 2018 2019 2021 2022 2023 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 201
Slide 31: Macroeconomics
Macroeconomics Real estate prices, Denmark (y/y) House prices to disposable income (2015=100) 30% 140 25% 20% 130 15% 120 10% 5% 110 0% -5% 100 -10% -15% 90 -20% 80 2016 2020 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017 2018 2019 2021 2022 2023 2011 2015 2004 2005 2006 2007 2008
Slide 32: Forecast
Macroeconomics Forecast DKKbn Real growth (%) Danish economy 2022 2021 2022 2023E 2024E 2025E Consumer spending 1,225 5.5 -1.4 0.4 0.5 1.3 Public spending 617 4.6 -2.8 1.2 1.9 1.0 Fixed gross investment 616 6.6 3.2 -6.2 -4.0 1.5 Inventory investment* 36 1.8 0.4 -1.4 -0.2 0.0 Exports 1,983 7.7 10.8 6
Slide 33: Financial calendar 2024 and contacts
Financial calendar 2024 27 Feb. Announcement of the 2023 results 27 Feb. Annual report 2023 27 Feb. Risk management report 2023 21 Mar. Annual general meeting 07 May. Interim report for the first quarter of 2024 20 Aug. Interim report for the first half of 2024 29 Oct. Interim report for the first n
Slide 34: Disclaimer
Disclaimer This presentation and the information contained therein is furnished and has been prepared solely for information purposes byJyske Bank A/S. It is furnished for your private information with the express understanding, which recipient acknowledges, that it is not an offer, recommendation o
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