Jyske Bank A/s · OMXCOP:JYSK
Jyske Bank A/s — Jyske Bank A/S Ord — Q2 2024 Earnings Presentation
36 slides from Jyske Bank A/s's earnings presentation, Aug 20, 2024
Slide 1: Investor presentation Q2 2024
Investor presentation Q2 2024 20 August 2024
Slide 2: Highlights
Highlights Q2 2024 Highlights 02 Financials 16 Volumes 23 Sustainability 28 Jyske Bank in brief 31 Macroeconomics 33 Calendar and contacts 37
Slide 3: Aiming for the upper half of net profit expectations for 2024
Highlights Aiming for the upper half of net profit expectations for 2024 Narrowing guidance for 2024 Good operating performance New organisation +12% y/y Customers, efficiency and control Net profit Furthering core strategic areas Positive financial markets and New organisation implemented inflow of
Slide 4: Continued good operating performance amid decreasing rates
Financial highlights Continued good operating performance amid decreasing rates Q2 2024 in brief 180 Business volumes (index) Earnings per share (DKK) 170 Assets under management Mortgage loans (nominal) 27.3 Leasing 160 24.5 Bank loans (excl. repo) 23.6 Deposits (excl. repo) Q2 2024 150 19.5 19.8 1
Slide 5: Targeting net profit in the upper half of DKK 4.3bn-5.1bn
Outlook Targeting net profit in the upper half of DKK 4.3bn-5.1bn Earnings per share (DKK) Lower in 2024 than in 2023 0 10 20 30 40 50 60 70 80 90 100 Core income Mainly due to lower value adjustments 2024E 2023 Slightly higher in 2024 Synergies and lower one-off costs to partly Core expenses counte
Slide 6: Lower policy rates impact net interest income
Highlights Lower policy rates impact net interest income Net interest income (DKKm) 2,567 2,516 2,462 2,415 2,415 2,224 1,773 1,412 1,359 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Lending Deposits liquidity, etc. Excess Note: Bridge from Q1 2024 to Q2 2024 reflects lending, deposit and e
Slide 7: Deposit margin down amid improved excess liquidity margin
Highlights Deposit margin down amid improved excess liquidity margin Implied margins (bp, p.a.) 400 Bank lending margin (vs. 3-month CIBOR) Mortgage administration margin Deposit margin (vs. 3-month CIBOR) Excess liquidity margin (vs. 3-month CIBOR) 300 200 100 0 -100 2019 2020 2021 2022 2023 2024 N
Slide 8: Higher quality fee income amid slightly improving activity levels
Highlights Higher quality fee income amid slightly improving activity levels Net fee and commission income (DKKm, trailing 4-quarter) 3,000 2,500 2,000 1,500 1,000 500 0 2019 2020 2021 2022 2023 2024 Recurring net fee income Activity-driven net fee income Note. Recurring net fee income includes asse
Slide 9: Most satisfied private banking customers for 9 years in a row
Highlights Most satisfied private banking customers for 9 years in a row Assets under management (DKKbn) 300 +10% p.a. 280 260 240 220 200 180 160 140 120 100 2016 2017 2018 2019 2020 2021 2022 2023 2024 Note: Most satisfied private banking customers in Denmark according to the annual Voxmeter surve
Slide 10: Underlying costs up, driven by sector-wide salary inflation
Highlights Underlying costs up, driven by sector-wide salary inflation Core expenses (DKKm) +22% following acquisitions of SHB DK and PFA Bank 5% staff cost inflation due to 1,621 4.5% sector-wide prescribed salary increase 1,553 and removal of the Great Prayer Holiday One-offs One-offs Manageable u
Slide 11: Customers continue to navigate well amid low loan losses
Highlights Customers continue to navigate well amid low loan losses Loan impairment charges (DKKm) Post-model adjustments (DKKm) 2,000 M&A 2,000 1,800 1,500 1,600 COVID-19 1,400 1,000 1,200 IFRS 9 500 1,000 800 0 600 400 -500 200 -1,000 0 2014 2016 2018 2020 2022 H1'24 2014 2016 2018 2020 2022 H1'24
Slide 12: CET1 ratio remains comfortably within targeted range
Highlights CET1 ratio remains comfortably within targeted range CET1 ratio bridge q/q 16.6% 16.6% DKK 1.5bn share repurchase programme, reservation for 30% dividend Q1'24 Profit Capital Risk Deductions, etc. Q2'24 distribution exposure Note: DKK 318m was deducted for expected share repurchase progra
Slide 13: Financials
Financials Q2 2024 Highlights 02 Financials 16 Volumes 23 Sustainability 28 Jyske Bank in brief 31 Macroeconomics 33 Calendar and contacts 37
Slide 14: Decreasing deposit margin amid lower policy rates
Financials Decreasing deposit margin amid lower policy rates Net interest income (DKKm) and implied margins (bp, p.a.) Net interest income (NII) decreased 2% q/q in Q2 2024 due to a reduced deposit margin, partly caused by the lowering of 2,462 Nationalbanken’s certificate of deposit 2,415 rate by 2
Slide 15: Fees supported by strong asset management income
Financials Fees supported by strong asset management income Net fee and commission income (DKKm) Net fee and commission income increased 9% y/y, mainly due to higher asset management income and higher income from securities trading, underpinned by the acquisition of PFA 766 Bank. 681 658 598 602 606
Slide 16: Continued positive development in financial markets
Financials Continued positive development in financial markets Value adjustments and investment portfolio earnings (DKKm) 661 523 452 240 186 239 199 DKK 199m Value adjustments Tightening of Danish -93 Value adjustments of DKK 199m in Q2 mortgage bond spreads amid spread tightening of Danish mortgag
Slide 17: First q/q FTE decrease in two years following acquisitions
Financials First q/q FTE decrease in two years following acquisitions Core expenses (DKKm) Core expenses rose 5% excl. one-off DKK 165m 1,684 1,583DKKone-off 165m 1,579 1,621 items due to the acquisition of PFA Bank, 1,518 1,553 one-off 1,633 the collectively prescribed salary increase, 1,395 1,273
Slide 18: Credit quality remains strong
Financials Credit quality remains strong Cost of risk and net exposure by IFRS 9 stages (bp/DKKbn) Loan impairments charges of 0bp in Q2 as 2 1 lower post-model adjustments partly 1 counteracted single name-driven loan 0 0 losses. The share of stage 3 exposures DKK 13m (0bp) remained at a low level.
Slide 19: Solvency reservations leave unchanged capital position
Capital and liquidity Solvency reservations leave unchanged capital position Common equity tier 1 ratio and risk exposure amount (%/DKKbn) • 16.6% CET1 ratio unchanged q/q, within 15%-17% target range. Capital ratio of 21.9% at upper end of target range of 20%-22%. 16.6% • Capital distribution: DKK
Slide 20: Volumes
Volumes Q2 2024 Highlights 02 Financials 16 Volumes 23 Sustainability 28 Jyske Bank in brief 31 Macroeconomics 33 Calendar and contacts 37
Slide 21: Continued strong growth of assets under management
Business volumes Continued strong growth of assets under management Business volumes (index / DKKbn) 160 Business volumes (index) +1% q/q 150 DKK 275bn • Mortgage loans (nominal) DKK 197bn 140 +1% q/q, as higher corporate lending Mortgage loans (nom.) DKK 104bn more than offset lower private lending
Slide 22: Strong footprint within lending for housing purposes
Lending volumes Strong footprint within lending for housing purposes Split of lending volumes (excl. repo, net) Mortgage lending with low loan-to-value Leasing 100% 5% 90% Corporate bank loans 80% Private 18% mortgages 70% 35% 60% Private 50% 52% bank loans 49% 43% 44% 45% 3% DKK 501bn 40% Mortgage-
Slide 23: Prudent LTV levels of commercial property exposures
Lending volumes Prudent LTV levels of commercial property exposures Commercial property exposure in brief Manageable share of overall exposure Non-performing loans at low level Rental, office, business property mortgages • Rental property and office, business Rental property Office, business propert
Slide 24: 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 +4.3% p.a. 3,000 default
Slide 25: Sustainability
Sustainability Sustainable business and responsible banking operations Highlights 02 Financials 16 Volumes 23 Sustainability 28 Jyske Bank in brief 31 Macroeconomics 33 Calendar and contacts 37
Slide 26: 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 0.07% Scope 2 “We run a sustainable and responsible business” Electricity, district heating First statement in Jyske Bank’s Identity Supporting a w
Slide 27: Targeting net zero emissions by 2050
Sustainability 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 Targets for emission intensity reduction Target
Slide 28: Jyske Bank in brief
Jyske Bank In brief Highlights 02 Financials 16 Volumes 23 Sustainability 28 Jyske Bank in brief 31 Macroeconomics 33 Calendar and contacts 37
Slide 29: 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 DKKbn 1967 Founded by merger of four banks in Silkeborg 376 88 Locations 1989 Seven acquisitions in 1970s and 1980s c. 12
Slide 30: Macroeconomics
Macroeconomics Highlights 02 Financials 16 Volumes 23 Sustainability 28 Jyske Bank in brief 31 Macroeconomics 33 Calendar and contacts 37
Slide 31: Macroeconomics
Macroeconomics Real gross domestic product (2010=100) Inflation rate (HICP, y/y) 135 12% 130 10% 125 8% 120 115 6% 110 4% 105 2% 100 0% 95 90 -2% 2010 2015 2022 2004 2005 2006 2007 2008 2009 2011 2012 2013 2014 2016 2017 2018 2019 2020 2021 2022 2023 2024 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 32: Macroeconomics
Macroeconomics Real estate prices, Denmark (y/y) House prices to disposable income (2015=100) 35% 140 30% 25% 130 20% 15% 120 10% 5% 110 0% -5% 100 -10% -15% 90 -20% 80 2023 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2024 2018 2019 2004 2005 2006 2
Slide 33: Forecast
Macroeconomics Forecast DKKbn Real growth (%) Danish economy 2023 2021 2022 2023 2024E 2025E Consumer spending 1,275 5.5 -1.4 1.0 0.6 1.3 Public spending 631 4.6 -2.8 0.1 4.5 2.8 Fixed gross investment 606 6.6 3.2 -5.0 -0.5 -0.3 Inventory investment* 7 1.8 0.4 -1.8 0.0 0.0 Exports 1,922 7.7 10.8 13.
Slide 34: 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 35: 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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