Jyske Bank A/s · OMXCOP:JYSK
Jyske Bank A/s — Jyske Bank A/S Ord — Q3 2024 Earnings Presentation
57 slides from Jyske Bank A/s's earnings presentation, Oct 29, 2024
Slide 1: Investor Presentation Q3 2024
Investor Presentation Q3 2024 29 October 2024
Slide 2: Summary and strategy update
1 Summary and strategy update 2 2 Financials 24 3 Volumes 31 Q3 2024 4 Sustainability 37 Summary and strategy update 5 Jyske Bank in brief 40 6 Macroeconomics 51 7 Calendar and contacts 55
Slide 3: Highlights from Q3 2024
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Upgraded guidance Updated strategy 2028 targets for 2024 announced Net profit upgraded to DKK Increasing underlying
Slide 4: Continued good operating performance amid decreasing rates
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Continued good operating performance amid decreasing rates Healthy fee income development underpinned by higher ass
Slide 5: Targeting net profit of DKK 5.0bn-5.3bn
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Targeting net profit of DKK 5.0bn-5.3bn Guidance upgraded earlier in October from upper half of DKK 4.3bn-5.1bn Ear
Slide 6: Jyske Bank – Focused domestic bank
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Jyske Bank – Focused domestic bank Financial institution in Denmark, focused on the attractive domestic market Focu
Slide 7: Strengthened position in Denmark
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Strengthened position in Denmark We have achieved a stronger position through profitable high-quality growth Strate
Slide 8: Improved strategic optionality
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Improved strategic optionality Recent and imminent developments further strengthen our position Opportunities in mo
Slide 9: All available options are on the table
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Antitrust settlement unlocks structural opportunities New strategic options available, which we are exploring Avail
Slide 10: Potential for more
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Potential for more Customers: Enhancing the customer experience and helping individuals, families and companies to
Slide 11: Jyske Bank Strategy
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Jyske Bank Strategy Building on our core strengths and taking them to the next level Where to invest How to win Foc
Slide 12: How we plan to achieve our goals
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking How we plan to achieve our goals Our strategy is built on four key elements Business, Corp. & Inst. Banking Persona
Slide 13: Operating the bank
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Operating the bank Step up in key areas to better enable the strategy New steering principles People and performanc
Slide 14: 2028 targets & assumptions
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Targets 2028 targets & assumptions Financial Outlook <50% ~30% Cost/income ratio Dividend payout ratio by mitigatin
Slide 15: Return on Tangible Equity of 10% in 2028
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Return on Tangible Equity of 10% in 2028 We expect to improve underlying profitability in the coming years Return o
Slide 16: Stable income development despite significantly lower interest rates
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Stable income development despite significantly lower interest rates We will focus on capital-light income growth a
Slide 17: Cost/income ratio <50% in 2028
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Cost/income ratio <50% in 2028 We expect to maintain a cost/income ratio below 50% supported by significant cost in
Slide 18: Growing capital returns to shareholders
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Growing capital returns to shareholders We expect to generate excess capital >40% of current market capitalisation
Slide 19: Business Unit & Digitalization Strategies
Business Unit & Digitalization Strategies
Slide 20: 2028 aspiration and targets: Business and Corporate Banking
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking 2028 aspiration and targets Business Banking Preferred bank for business banking #1 In business banking advisory sa
Slide 21: 2028 aspiration and targets: Personal & Private Banking
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking 2028 aspiration and targets #1 Top 3 Among Private Banking clients Among Personal customers in in satisfaction1 sat
Slide 22: Enhancing digital competitiveness based on strong point of departure
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Enhancing digital competiveness based on strong point of departure Harvesting significant customer, quality and eff
Slide 23: Strategy: Potential for more
Highlights from Jyske Bank Financial Business, Corporate & Personal & Private Digitalization, AI, Summary Q3 2024 Strategy Outlook Institutional Banking Banking and Data-Driven Banking Strategy Jyske Bank’s potential for more will be realised through a focused strategy Potential for more Be a better
Slide 24: Financials
1 Summary and strategy update 2 2 Financials 24 3 Volumes 31 Q3 2024 4 Sustainability 36 Financials 5 Jyske Bank in brief 39 Lower deposit margin amid decreasing policy rates Net fee income supported by strong asset management income Continued positive development in financial markets 6 Macroeconomi
Slide 25: Lower deposit margin amid decreasing policy rates
Financials | Net interest income Lower deposit margin amid decreasing policy rates Nationalbanken lowered the certificate of deposit rate by another 25bp on 13 September Net interest income Net interest income down 3% q/q Net interest income bridge DKKm Quarter/quarter, DKKm 3% decline due to lower
Slide 26: Net fee income supported by strong asset management income
Financials | Net fee and commission income Net fee income supported by strong asset management income Underpinned by higher assets under management and PFA Bank acquisition Net fee and commission income Net fee income increased 4% y/y Net fee and commission income bridge DKKm Year/year, DKKm Higher
Slide 27: Continued positive development in financial markets
Financials | Value adjustments and investment portfolio earnings Continued positive development in financial markets Significantly lower interest rates had positive impact on value adjustments in Q3 Value adjustments DKK 453m of value adjustments Investment portfolio earnings DKKm DKKm Value adjustm
Slide 28: Cost inflation under control
Financials | Costs Cost inflation under control Underlying costs increased 4% y/y due to sector-wide salary adjustments Core expenses Underlying core expenses up 4% y/y Core expenses bridge DKKm Year/year, DKKm Core expenses excl. one-off items Expenses up 3.6% excl. one-off items, mainly 1,684 due
Slide 29: Credit quality remains solid
Financials | Loan impairment charges Credit quality remains solid Low level expected for 2024 following reversals in Q3 Cost of risk DKK -82m (-2bp) cost of risk IFRS 9 stages bp Share of exposure and DKKbn Reversals in Q3, as post-model adjustments were reduced from a high level. Q3'24 1.1% Stage 3
Slide 30: Strong capital position, above target levels
Financials | Capital and funding Strong capital position, above target levels Healthy capital build in Q3 supported by DKK 1.4bn net profit Common equity tier 1 ratio bridge 17.2% CET1 ratio up 0.6pp q/q Risk exposure amount Quarter/quarter DKKbn CET1 ratio above target range of 15%-17%. Capital rat
Slide 31: Volumes
1 Summary and strategy update 2 2 Financials 24 3 Volumes 31 Q3 2024 4 Sustainability 37 Volumes 5 Jyske Bank in brief 40 Continued strong growth of assets under management Strong footprint within lending for housing purposes Robust mortgage portfolio 6 Macroeconomics 51 Prudent loan-to-value levels
Slide 32: Continued strong growth of assets under management
Volumes | Business volumes Continued strong growth of assets under management Positive financial markets and inflow of funds Business volumes Key takeaways Development of business volumes DKKbn Personal Corporate Index Mortgage loans (nominal) 170 Assets under management Q3'24 +0% q/q, as corporate
Slide 33: Strong footprint within lending for housing purposes
Volumes | Lending composition Strong footprint within 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 clients 39% 4% Finance and insurance 10% Corporate Rentin
Slide 34: 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 35: Prudent loan-to-value levels of commercial property exposures
Volumes | Commercial property 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 exposures 1
Slide 36: 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 37: Sustainability
1 Summary and strategy update 2 2 Financials 24 3 Volumes 31 Q3 2024 4 Sustainability 37 Sustainability 5 Jyske Bank in brief 40 “We run a sustainable and responsible business” Targeting net zero emissions by 2050 6 Macroeconomics 51 7 Calendar and contacts 55
Slide 38: We run a sustainable and responsible business
Sustainability | Approach “We run a sustainable and ESG ambitions Focus on financed emissions responsible business” Share of CO2 emissions 0.03% Scope 1 Net zero emissions and green financing Company cars, local heating - First statement of Jyske Bank’s Environmental Identity 0.07% Engaged and compe
Slide 39: Targeting net zero emissions by 2050
Sustainability | Targets Targeting net zero emissions by 2050 Lending Investments Own operations 1.3 million tonnes CO2 0.8 million tonnes CO2 0.02 million tonnes CO2 Emissions in 2023 Emissions in 2023 Emissions in 2023 -22% vs. 2019 -27% vs. 2019 -22% vs. 2020 2030 targets for emission intensity r
Slide 40: Jyske Bank in brief
1 Summary and strategy update 2 2 Financials 24 3 Volumes 31 Q3 2024 4 Sustainability 36 Jyske Bank in brief 5 Jyske Bank in brief 39 One of the largest financial institutions in Denmark History of Jyske Bank Jyske Bank today 6 Macroeconomics 50 During the last decade, Jyske Bank has become larger,
Slide 41: 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 377 88 Denmark 1989 Seven acquisitions in 1970s an
Slide 42: 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 43: 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 Clients Colleagues Jyske Bank Top 4 3,953 DKK 765bn c. 12% Mortgage Colleagues Total assets Market share Jyske Realkredit Top 3 >140,000 Leasing Shareholders Jyske Finans
Slide 44: Larger, leaner, and stronger over the last decade
Jyske Bank in brief | The last decade During the last decade, Jyske Bank has become larger, leaner, and stronger DKK 8.4bn DKK 14.4bn Core income +71% 63% 45% Cost/income -18pp. 9bp 1bp Cost of risk -8bp DKK 2.5bn DKK 5.8bn 2015 2024 Net profit +136% DKK 355bn DKK 505bn Lending +42% Last four quarte
Slide 45: Jyske Bank – Potential for more
Jyske Bank in brief | Equity story Jyske Bank – Potential for more Aims to deliver attractive returns through the cycle Operating in Denmark, a structurally attractive banking environment AAA economy with stable growth, high digitalization and low compliance risks A solid financial profile with soun
Slide 46: Operating in a structurally attractive banking environment
Jyske Bank in brief | Equity story deep dive (1/5) 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 Ban
Slide 47: A solid financial profile with sound fundamentals
Jyske Bank in brief | Equity story deep dive (2/5) A solid financial profile with sound fundamentals Focused on structurally growing, low risk Danish mortgage market 75% Strong operating performance Significant long-term value creation Attractive Danish mortgage exposure Last four quarters Book valu
Slide 48: Resilient operations with low risk through-the-cycle
Jyske Bank in brief | Equity story deep dive (3/5) 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 liquidity
Slide 49: 2028 strategy
10% ≥15% Potential for more Return on tangible equity CET1 ratio Higher underlying profitability amid lower rates Lower end of 15%-17% assumed post 2024 2028 strategy Increasing underlying profitability to mitigate lower short-term interest rates Accelerating growth in select, profitable market segm
Slide 50: Growing capital returns to shareholders
Jyske Bank in brief | Equity story deep dive (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% 1
Slide 51: Macroeconomics
1 Summary and strategy update 2 2 Financials 24 3 Volumes 31 Q3 2024 4 Sustainability 37 Macroeconomics 5 Jyske Bank in brief 40 Balanced Danish economic development Relatively low lending growth in last year amid improving sentiment Jyske Bank’s macroeconomic forecasts for Denmark 6 Macroeconomics
Slide 52: Balanced Danish economic development
Macroeconomics (1/3) Balanced Danish economic Real gross domestic product Inflation rate development 2010=100 135 Denmark Euro area HICP, year/year 12% Denmark Euro area 130 10% 125 8% 120 115 6% Interest rates are decreasing with 110 4% inflation under control 105 100 2% 95 0% 90 -2% 2004 2006 2008
Slide 53: Relatively low lending growth in last year amid improving sentiment
Macroeconomics (2/3) Relatively low lending Danish real estate prices House prices to disposable income growth in last year amid Year/year 40% One-family houses Owner-occupied flats 2015=100 140 Denmark Euro area improving sentiment 30% 130 20% 120 Real estate prices show moderate 10% 110 increase i
Slide 54: Jyske Bank's macroeconomic forecasts for Denmark
Macroeconomics (3/3) Jyske Bank’s macroeconomic DKKbn Real growth (%) Danish economy forecasts for Denmark Consumer spending 2023 1,300 2022 -2.1 2023 1.4 2024E 0.7 2025E 1.1 2026E 1.6 Public spending 636 -2.5 0.2 1.9 3.4 0.5 Fixed gross investment 633 2.8 -6.6 -3.2 0.9 2.9 Inventory investment* 7 0
Slide 55: Calendar and contacts
Calendar and contacts 1 Summary and strategy update 2 Financial calendar 2025 26 Feb. Announcement of the 2024 results 2 Financials 24 26 Feb. Annual report 2024 26 Feb. Risk management report 2024 25 Mar. Annual general meeting 07 May. Interim report for the first quarter of 2025 3 Volumes 31 19 Au
Slide 56: 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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