Earnings per share DKK 22.2 (H1 2020: DKK 0.0)
Core earnings: DKK 4,364m (H1 2020: DKK 3,853m)
Core bills: DKK 2,342m (H1 2020: DKK 2,510m)
Impairment expenses: DKK -37m (H1 2020: DKK 1,011m)
Pre-tax revenue of DKK 2,163m, comparable to a pre-tax return on fairness of 12.2% p.a. (H1 2020: DKK 105m and 0.1% p.a.)
Internet revenue amounted to DKK 1,685m, comparable to a return on fairness of 9.4% p.a. (H1 2020: DKK 82m and 0.0%)
Capital ratio 23.0%, of which widespread fairness tier 1 capital ratio of 18.1% (H1 2020: 22.2 and 17.3, respectively)
Jyske Financial institution anticipates earnings per share at DKK 34-38 in 2021
Jyske Financial institution will launch a brand new share purchase repurchase programme of as much as DKK 1bn, working from 1 October 2021 till 31 March 2022 on the newest
MSCI has raised the ESG ranking of Jyske Financial institution from A to the very best potential ranking AAA.
”Within the first half of 2021, Jyske Financial institution delivered increased earnings per share than in full-year 2020. Regardless of complete COVID-19 restrictions within the Danish society the organisation managed to deal with a excessive degree of exercise within the housing, automotive and capital markets. Whereas a excessive degree of exercise and beneficial monetary markets contributed to increased earnings, productiveness enhancements and tight value administration additionally resulted in a discount of prices. Furthermore, credit score high quality stays strong with a really low degree of write-offs, and the widespread fairness tier 1 ratio is at its highest-ever degree. This helps the idea of initiating a brand new share repurchase programme. Thus far, the optimistic pattern has paved the way in which for 3 upgrades of earnings expectations for 2021, which have in mixture elevated by practically one third from the place to begin. Including to the optimistic pattern, MSCI has raised Jyske Financial institution’s ESG ranking from A to the very best potential ranking AAA. Solely 3% of banks rated by MSCI have a AAA ranking,” says Anders Dam, Managing Director and CEO.
Following a interval of complete COVID-19 restrictions, the Danish society this spring realised a substantial enchancment in employment, and the exercise within the housing market continues to be at a excessive degree. Financial exercise is approaching the identical degree as earlier than the pandemic set in, supported by the continued vaccine rollout and a world industrial upswing. This paves the way in which for optimistic development prospects for the Danish economic system.
Within the first half of 2021, Jyske Financial institution launched inexperienced mortgage loans to company purchasers, Jyske Frihed, a 30-year fixed-rate interest-only mortgage, in addition to easy and digital funding via Jyske NemInvestering for personal purchasers. Add to this, improved capabilities in Jyske Mobilbank within the type of, amongst different issues, refinancing and rate of interest adjustment of housing loans in addition to a pension overview. Additionally, within the first half of the 12 months, Jyske Financial institution was named the very best financial institution for personal banking for the sixth 12 months working by Voxmeter.
Over the previous 12 months, Jyske Financial institution lowered the variety of full-time workers by 156, the variety of branches by 15 and lowered opening hours in moreover seven branches. The mergers of non-public consumer branches contribute positively to Jyske Financial institution’s enterprise, for example by supporting increased specialisation, higher cohesion and profitability within the branches. Jyske Financial institution has additionally obtained an award from Jobindex for the very best worker satisfaction within the monetary sector.
As well as, organisational adjustments kind a very good level of departure for the strategic cooperation with Købstædernes Forsikring known as Jyske Forsikring. From the third quarter of 2021, the cooperation will contribute to overlaying the purchasers’ insurance coverage wants via a whole insurance coverage answer.
As well as, Jyske Financial institution’s work on sustainability targets continues. The Group’s estimated oblique CO2 emission with respect to loans and investments was lowered by 13% in 2020, and the substitute of Jyske Financial institution’s automotive park with low-emission automobiles has been initiated. Jyske Capital joined the Internet Zero Asset Managers initiative and therefore dedicated itself to internet zero emission in 2050. Jyske Realkredit has change into a member of Vitality Environment friendly Mortgage Label which will increase transparency on the establishment’s loans to properties and their power consumption. Moreover, MSCI has raised Jyske Financial institution’s ESG ranking from A to the very best potential ranking AAA.
Earnings per share of DKK 22.2 in H1 2021
The web revenue for the interval at DKK 1,685m corresponded to a return on fairness of 9.4% p.a. in opposition to DKK 82m and 0.0% p.a., respectively, for the corresponding interval of 2020. Earnings per share rose to DKK 22.2 from DKK 0.0. The significantly increased outcomes had been as a consequence of a administration’s estimate of impairment expenses following the outbreak of COVID-19 within the first half of 2020 and a beneficial improvement within the monetary markets in addition to a excessive degree of exercise within the first half of 2021.
Jyske Financial institution’s nominal mortgage loans rose by 1% within the first half of the 12 months pushed by increased loans to company purchasers. Leasing loans confirmed the very best semi-annual development to date with an advance of seven%, which offset decrease financial institution loans for private purchasers and public authorities. Financial institution deposits shed 4%, due primarily to lowered deposits from company purchasers.
Core earnings rose by 13% relative to the primary half of 2020 regardless of the sale of Jyske Financial institution (Gibraltar). The buying and selling and housing areas had been characterised by a excessive degree of exercise, whereas worth changes had been supported by a beneficial improvement within the monetary markets.
Core bills shed 7% in contrast with the primary half of 2020 and three% adjusted for bills in reference to operations and sale of Jyske Financial institution (Gibraltar). The lower may be attributed to a 5% discount within the variety of full-time workers and an intensified value focus.
Mortgage impairment expenses amounted to an earnings of DKK 37m in opposition to an expense of DKK 1,011m within the first half of 2020 when a administration’s estimate was made to offset potential financial penalties of the COVID-19 pandemic. Credit score high quality stays strong with a low degree of non-performing loans and a really low degree of write-offs within the first half of 2021.
Jyske Financial institution’s widespread fairness tier 1 ratio was on the finish of the primary half of the 12 months on the highest-ever degree at 18.3, comparable to extra capital of DKK 14.6bn in comparison with regulatory necessities.
Within the first half of the 12 months, Jyske Financial institution issued supplementary tier 2 capital within the quantity of NOK 1bn and SEK 1bn and AT1 capital of EUR 200m. As well as, a share repurchase programme of as much as DKK 750m was launched. The programme will run as much as 30 September 2021 on the newest. Subsequently, Jyske Financial institution will launch a brand new share repurchase programme of as much as DKK 1bn, working from 1 October 2021 till 31 March 2022 on the newest.
Because of the event within the first half of the 12 months and expectations of the remainder of the 12 months, Jyske Financial institution upgraded its expectations of 2021 in March, April and July. Jyske Financial institution now anticipates earnings per share at DKK 34-38 in 2021 in opposition to the unique quantity of DKK 25-31. This corresponds to a pre-tax revenue of DKK 3.3bn-3.7bn in opposition to the unique quantity of DKK 2.5bn-3.0bn and a internet revenue of DKK 2.6bn-2.9bn in opposition to DKK 1.9bn-2.3bn.
In 2021, the financial institution’s enterprise volumes are anticipated to be affected by increased financial institution loans and falling deposits. To some extent, that is anticipated because of the company purchasers’ cost of deferred VAT and taxes in addition to pent-up funding demand. Mortgage loans are additionally anticipated to extend.
Core earnings is anticipated to be at a better degree in 2021 relative to 2020.
For 2021, endeavours shall be made to scale back core bills in comparison with 2020.
Mortgage impairment expenses are anticipated to be round zero in 2021.
Because of the brand new share buy-back programme, the variety of excellent shares in circulation on the finish of 2021 is anticipated to be approx. 68 million in contrast with 72.6 million on the finish of 2020.
Jyske Financial institution
Anders Dam, Managing Director and CEO, tel. +45 89 89 20 01
Birger Krøgh Nielsen, CFO, tel. +45 89 89 64 44