Jyske Bank A/s · OMXCOP:JYSK
Jyske Bank A/s — Jyske Bank A/S Ord — Q1 2025 Earnings Presentation
48 slides from Jyske Bank A/s's earnings presentation, May 7, 2025
Slide 1: Investor Presentation Q1 2025
Investor Presentation Q1 2025 7 May 2025
Slide 2: Summary
1 Summary 2 2 Highlights 6 3 Financials 13 4 Volumes 21 Q1 2025 Summary 5 Sustainability 27 Executive summary 6 Jyske Bank in brief 31 Financial highlights Outlook 7 Macroeconomics 42 8 Calendar and contacts 46
Slide 3: Executive summary
Increasing EPS amid Significantly improved Solid capital position lower interest rates customer satisfaction with increased visibility Earnings per share up 2% y/y despite a More and increasingly proactive Basel IV implemented with CET1 ratio -1.5pp y/y lower Danish policy rate. interactions with cu
Slide 4: Increasing EPS 2% y/y despite significantly lower interest rates
Summary | Financial highlights Increasing EPS 2% y/y despite significantly lower interest rates Net fee income up 20% y/y due to higher assets under mgmt. and increased activity levels Q1 2025 11.3% 47% 1bp DKK 19.4 15.7% Return on tangible equity (p.a.) Cost/income Cost of risk Earnings per share C
Slide 5: Outlook for continued underlying progress in 2025 amid lower interest rates
Summary | Outlook Outlook for continued underlying progress in 2025 amid lower interest rates Net profit of DKK 3.8bn-4.6bn expected for 2025 Earnings per share Lower in 2025 than in 2024 Core income DKK Lower net interest income and lower value adjustments 100 90 Slightly higher in 2025 compared wi
Slide 6: Highlights
1 Summary 2 2 Highlights 6 3 Financials 13 4 Volumes 21 Q1 2025 Highlights 5 Sustainability 27 Strongly improving customer satisfaction 6 Jyske Bank in brief 31 Net fee income up 20% y/y from low level Costs developing according to plan Record-high buffer for macroeconomic risks 7 Macroeconomics 42
Slide 7: Strongly improving customer satisfaction
Highlights | Customer satisfaction Customer satisfaction up significantly and outpacing peers following targeted initiatives Rolling 12-month CEM score (rebased, 2022=100) 120 +24% y/y 115 +30% y/y 110 105 +7% y/y Strongly improving 100 customer satisfaction 95 Above average of other large 90 banks
Slide 8: Net fee income up 20% y/y from low level
Highlights | Net fee and commission income Increased assets under management and higher activity levels boosted net fee income DKKm Mortgage issuance fees down from elevated level Sector lending offers up 726 31% y/y from all-time low Net fee income up 20% y/y from low level 606 - Assets under mgmt.
Slide 9: Costs developing according to plan
Highlights | Costs Total expenses decreased 3% y/y in Q1, the seasonally lowest level for costs of the year DKKm 1,579 1,533 Costs developing according to plan Reiterating target of a slight increase in 2025 vs. the 2024 cost level Q1'24 One-off items Resolution Fund Fewer Inflation, Q1'25 contribut
Slide 10: Increased buffer for macroeconomic risks
Highlights | Credit quality Post-model adjustments is >4x accumulated loan impairment charges of last decade DKKm DKK 1.9bn 2,000 (35bp) 1,800 COVID-19 1,600 1,400 Increased buffer for 1,200 macroeconomic risks 1,000 800 Post-model adjustments increased DKK 0.1bn in Q1 to reflect trade war 600 400 2
Slide 11: Denmark is well-positioned to handle implications of trade war
Highlights | Trade war Implemented US tariff of 10% has direct impact on 3% of Danish exports Share of Danish exports and imports in 2024 Goods, crossing Danish borders, USA 3% Exports: Mainly pharmaceuticals, machinery 9% Goods, not crossing Danish borders, USA Services, USA 6% Denmark is well- pos
Slide 12: No further significant impact from upcoming regulation expected
Highlights | Capital position CET1 ratio remains comfortably within targeted range following Basel IV implementation DKK 2.25bn buyback announced in Feb. 2025 Incl. Basel IV impact of <1pp (guidance: up to 1.5pp) 16.1% No further significant Reservation for stipulated* 71% 2025 payout ratio Reservat
Slide 13: Financials
1 Summary 2 2 Highlights 6 3 Financials 14 4 Volumes 21 Q1 2025 Financials 5 Sustainability 27 Net interest income 6 Jyske Bank in brief 31 Net fee and commission income Value adjustments and investment portfolio earnings Other income and operating lease 7 Macroeconomics 42 Core expenses Loan impair
Slide 14: Net interest income only decreased to a minor extent in Q1 2025
Financials | Net interest income Net interest income only decreased to a minor extent in Q1 2025 Lower policy rates and higher funding costs more than offset positive effect from CRE repricing Net interest income Net interest income down 1% q/q Net interest income bridge DKKm Quarter/quarter, DKKm L
Slide 15: Highest Q1 fee income on record
Financials | Net fee and commission income Highest Q1 fee income on record Increase of 20% y/y underpinned by higher assets under management and higher activity levels Net fee and commission income Net fee income increased 20% y/y Net fee and commission income bridge DKKm Year/year, DKKm Securities
Slide 16: Healthy customer activity in the first quarter of 2025
Financials | Value adjustments and investment portfolio earnings Healthy customer activity in the first quarter of 2025 Investment portfolio earnings underpinned by lower internal funding costs Value adjustments DKK 182m of value adjustments Investment portfolio earnings DKKm DKKm No significant eff
Slide 17: Higher other income in Q1 2025
Financials | Other income and income from operating lease Higher other income in Q1 2025 Positive impact from acquisition of Opendo leasing portfolio and seasonal dividends Income from operating lease (net) DKK 32m of operating lease income (net) Other income DKKm DKKm Operating lease income improve
Slide 18: Continued low level of underlying cost inflation
Financials | Costs Continued low level of underlying cost inflation In-line with outlook for slightly higher costs in 2025 Core expenses Underlying costs up 1% y/y in Q1 2025 Core expenses bridge DKKm Year/year, DKKm Core expenses excl. one-off items One-off items Sector-wide salary increase of 3.7%
Slide 19: Credit quality remains solid with increased post-model adjustments buffer
Financials | Loan impairment charges Credit quality remains solid with increased post-model adjustments buffer Outlook for continued low level of loan impairment charges in 2025 Cost of risk DKK 66m (1bp) cost of risk in Q1 2025 Exposure by IFRS 9 stages bp %/DKKbn Post-model adjustments increased D
Slide 20: No further significant impact from upcoming regulation expected
Financials | Capital and funding No further significant impact from upcoming regulation expected Strong capital position, targeting lower end of targeted 15%-17% range Common equity tier 1 ratio bridge 15.7% CET1 ratio vs. targeted 15%-17% Risk exposure amount Quarter/quarter DKKbn Capital distribut
Slide 21: Volumes
1 Summary 2 2 Highlights 6 3 Financials 13 4 Volumes 21 Q1 2025 Volumes 5 Sustainability 27 Business volumes 6 Jyske Bank in brief 31 Lending composition Mortgage portfolio 7 Macroeconomics 42 Commercial property deep dive Main exposure: The Danish mortgage market 8 Calendar and contacts 46
Slide 22: Business volumes
Volumes | Business volumes Continued improvement of momentum with personal customers Highest mortgage growth for more than five years Business volumes Key takeaways Development of business volumes DKKbn Personal Corporate Index Mortgage loans (nominal) 140 Assets under management Q1'25 +1% q/q, as l
Slide 23: 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 37% 4% Finance and insuran
Slide 24: 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 3-10Y ARM 1-2Y Capped floater Non-capped floater Int
Slide 25: 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 26: Danish mortgage market is structural, low-risk growth
Volumes | Main exposure: The Danish mortgage market Danish mortgage market is Balance principle reduces 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,
Slide 27: Sustainability
1 Summary 2 2 Highlights 6 3 Financials 13 4 Volumes 21 Q1 2025 Sustainability 5 Sustainability 27 Approach 6 Jyske Bank in brief 31 Targets Next steps 7 Macroeconomics 42 8 Calendar and contacts 46
Slide 28: 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 29: 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 30: 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 31: Jyske Bank in brief
1 Summary 2 2 Highlights 6 3 Financials 13 4 Volumes 21 Q1 2025 Jyske Bank in brief 5 Sustainability 27 One of the largest financial institutions in Denmark 6 Jyske Bank in brief 31 History of Jyske Bank Jyske Bank today The last decade 7 Macroeconomics 42 Equity story 8 Calendar and contacts 46
Slide 32: 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 386 84 Denmark 1989 Seven acquisitions in 1970s an
Slide 33: 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 34: Jyske Bank today
Jyske Bank in brief | Overview Jyske Bank today One of the leading financial institutions in Denmark Top 3 >600,000 3,900 Banking Customers Colleagues Jyske Bank Top 4 3,866 DKK 782bn c. 12% Mortgage Colleagues Total assets Market share Jyske Realkredit Top 3 >140,000 Leasing Shareholders Jyske Fina
Slide 35: 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 13.5bn Core income +60% 63% 48% Cost/income -15pp. 9bp 0bp Cost of risk -9bp DKK 2.5bn DKK 5.3bn 2015 Q1’25 Net profit +113% DKK 355bn DKK 511bn Lending +44% Last four quart
Slide 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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 42: Macroeconomics
1 Summary 2 2 Highlights 6 3 Financials 13 4 Volumes 21 Q1 2025 Macroeconomics 5 Sustainability 27 Select key figures 6 Jyske Bank in brief 31 Jyske Bank forecast 7 Macroeconomics 42 8 Calendar and contacts 46
Slide 43: 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 44: 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 Sector bank lending up 5% y/y and 10% 110 sector deposits up 10%
Slide 45: 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 46: 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 13 25 Mar. Annual general meeting 07 May. Interim report for the first quarter of 2025 19 Aug. Interim report
Slide 47: 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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