Jyske Bank A/s · OMXCOP:JYSK
Jyske Bank A/s — Jyske Bank A/S Ord — Q1 2024 Earnings Presentation
35 slides from Jyske Bank A/s's earnings presentation, May 7, 2024
Slide 1: Investor presentation Q1 2024
Investor presentation Q1 2024 7 May 2024
Slide 2: Highlights
Highlights Q1 2024 Highlights 02 Financials 16 Volumes 23 Sustainability 28 Jyske Bank in brief 31 Macroeconomics 33 Calendar and contacts 37
Slide 3: Resuming share buybacks with DKK 1.5bn programme
Highlights Resuming share buybacks with DKK 1.5bn programme Strong start to 2024 Resuming share buybacks Higher interest rates, low activity DKK 1.5bn +4% y/y Share repurchase programme Core income Initiates on 3 June 2024 Higher interest rates partly offset by low activity Manageable cost inflation
Slide 4: Financial highlights
Financial highlights Continued good operating performance amid low activity Q1 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) Q1 2024 150 19.5 140 19.0 1
Slide 5: Targeting net profit of DKK 4.3bn-5.1bn in 2024
Outlook Targeting net profit of DKK 4.3bn-5.1bn in 2024 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 Approximately unchanged in 2024 Core expenses Synergies and lower one-off costs to counteract 2022
Slide 6: Rate changes and issuances impacted Q1 net interest income
Highlights Rate changes and issuances impacted Q1 net interest income Net interest income bridge q/q (DKKm) Deposit migration to savings products, etc. 2,567 DKK 96bn EUR 500m NPS on 10 Nov., Bond portfolio EUR 500m T2 on 1 Feb. Q1 2024 Transactions accounts and 2,462 savings accounts +25bp to +75bp
Slide 7: Recent years' deposit migration leaves manageable headwind
Highlights Recent years’ deposit migration leaves manageable headwind Approx. two thirds of corporate deposits is Savings products make up more than 60% time deposits or with reference rate amid of private deposits in transactions and somewhat stable mix in recent quarters. Deposit 49% savings accou
Slide 8: Net fee income impacted by low activity and bond issuance
Highlights Net fee income impacted by low activity and bond issuance Net fee and commission income bridge y/y (DKKm) Higher volumes and PFA Bank*, partly offset by fewer fund days, price changes, migration** Regrouping of fees following IT migration of SHB DK, 658 harmonisation of card pricing Low a
Slide 9: Cost inflation remains under control
Highlights Cost inflation remains under control Core expenses (DKKm) Core expenses excl. one-off items +3% y/y excl. one-offs, mainly due to PFA Bank, sector-wide One-off items salary increase of 4.5% DKK 96bn 1,633 Bond portfolio 1,514 1,514 1,470 1,484 Q1 2024 1,329 1,160 1,184 1,206 Q1'22 Q2'22 Q
Slide 10: Continued strong credit quality amid all-time high PMA's
Highlights Continued strong credit quality amid all-time high PMA’s Loan impairment charges (bp) 80 Acquisition of Jyske Realkredit 70 Average loan impairment charges of 8bp p.a. since acquisition of 60 mortgage subsidiary (Jyske Realkredit) in 2014. 50 In the same period, a post-model adjustment (P
Slide 11: Higher op. risk and expected payout lowers CET1 ratio
Highlights Higher op. risk and expected payout lowers CET1 ratio CET1 ratio bridge q/q 16.9% 0.3pp or DKK 0.7bn reserved for future capital distribution 16.6% (56% of shareholders’ profit in Q1) Q4'23 Profit Expected Expected share Risk Other Q1'24 dividend buyback exposure Note: DKK 318m deducted f
Slide 12: Financials
Financials Q1 2024 Highlights 02 Financials 16 Volumes 23 Sustainability 28 Jyske Bank in brief 31 Macroeconomics 33 Calendar and contacts 37
Slide 13: NII impacted by rate changes and new issuances
Financials NII impacted by rate changes and new issuances Net interest income (DKKm) Net interest income (NII) decreased 4% q/q in Q1 2024, particularly due to higher deposit rates and increased wholesale 2,516 2,567 2,462 funding costs as well as fewer days of 2,415 interest. 2,224 +11% y/y 1,773 •
Slide 14: Fee income impacted by low activity levels
Financials Fee income impacted by low activity levels Net fee and commission income (DKKm) Net fee and commission income decreased 8% y/y, mainly due to lower mortgage fees and loan application fees amid very low activity levels. 766 683 681 658 • Mortgage fees decreased 26% y/y 598 602 606 from a s
Slide 15: Mixed financial market development in Q1 2024
Financials Mixed financial market development in Q1 2024 Value adjustments and investment portfolio earnings (DKKm) 661 523 452 9 240 186 239 DKK 239m Value adjustments Value adjustments of DKK 239m in Q1. Higher interest rates and The development of financial markets was tightening of Danish -93 mi
Slide 16: Manageable underlying cost inflation after acquisitions
Financials Manageable underlying cost inflation after acquisitions Core expenses (DKKm) DKK 165m 1,684 Core expenses rose 3% excl. one-off one-off 1,583 1,518 1,553DKK 165m 1,579 items due to the acquisition of PFA Bank, one-off 1,395 1,633 the collectively prescribed salary increase 1,514 1,514 1,1
Slide 17: Post-model adjustments increased to all-time high level
Financials Post-model adjustments increased to all-time high level Cost of risk and net exposure by IFRS 9 stages (bp/DKKbn) Loan impairments charges of 1bp in Q1 2 1 caused by higher post-model 1 adjustments. The share of stage 3 0 exposures and actual write-offs remained DKK 82m (1bp) at low level
Slide 18: Capital distribution, new issuances impact capital position
Capital and liquidity Capital distribution, new issuances impact capital position • 16.6% CET1 ratio down 0.3pp q/q, Common equity tier 1 ratio and risk exposure amount (%/DKKbn) within 15%-17% target range. Capital ratio of 22.0% at upper end of target range of 20%-22%. • Capital distribution: Divi
Slide 19: Volumes
Volumes Q1 2024 Highlights 02 Financials 16 Volumes 23 Sustainability 28 Jyske Bank in brief 31 Macroeconomics 33 Calendar and contacts 37
Slide 20: Continued strong growth of assets under management
Business volumes Continued strong growth of assets under management Business volumes (index / DKKbn) 170 Business volumes (index) • Mortgage loans (nominal) 160 0% q/q, as higher corporate lending 0% q/q DKK 191bn was offset by lower private lending. 150 Mortgage loans (nom.) DKK 105bn 140 +2% y/y D
Slide 21: 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% 50% bank loans 44% 46% 45% 3% DKK 502bn 40% Mortgage-
Slide 22: 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 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 +4.3% p.a. 3,000 default
Slide 24: 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 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 0.07% 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 0.8 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 27: 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 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 DKKbn 1967 Founded by merger of four banks in Silkeborg 373 89 Locations 1989 Seven acquisitions in 1970s and 1980s c. 12
Slide 29: Macroeconomics
Macroeconomics Highlights 02 Financials 16 Volumes 23 Sustainability 28 Jyske Bank in brief 31 Macroeconomics 33 Calendar and contacts 37
Slide 30: 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% 2011 2018 2019 2004 2005 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 31: 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 2011 2004 2005 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2004 2005 2006 2007 2008 2009 2
Slide 32: Forecast
Macroeconomics Forecast DKKbn Real growth (%) Danish economy 2023 2021 2022 2023 2024E 2025E Consumer spending 1,279 5.5 -1.4 1.3 1.6 1.2 Public spending 630 4.6 -2.8 0.0 1.5 1.9 Fixed gross investment 606 6.6 3.2 -5.0 -3.6 -0.2 Inventory investment* 6 1.8 0.4 -1.9 0.0 0.0 Exports 1,923 7.7 10.8 12.
Slide 33: Financial calendar 2024
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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