Jyske Bank A/S
2011 PRE-TAX PROFIT OF DKK 601M

Jyske Bank A/S 

26.01.2012 13:52
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For 2011, Jyske Bank achieved a pre-tax profit of DKK 601m against DKK 1,003m
in 2010 although special circumstances had an adverse effect on the pre-tax
profit by just below DKK 500m, hereof DKK 237m in the fourth quarter of 2011. 



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Key figures and financial ratios of the Jyske Bank Group                        
DKKm                                                     2011               2010
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------------------------------------------                                      
Net interest and fee income                             5,737              5,657
Value adjustments                                         -44                387
Other operating income                                    634                380
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Gross earnings                                          6,327              6,424
Operating expenses, depreciation and                    4,415              3,802
 amortisation                                                                   
Profit from equity investments                             -7                 22
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Core earnings before loan impairment                    1,905              2,644
 charges                                                                        
and provisions for guarantees                                                   
Loan impairment charges and provisions                  1,478              1,581
 for guarantees                                                                 
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------------------------------------------                                      
Core earnings                                             427              1,063
Investment portfolio earnings                             346                446
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Profit before Bank Package I and                          773              1,509
the Guarantee Fund                                                              
Bank Package 1 and the Guarantee Fund                    -172               -506
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Pre-tax profit                                            601              1,003
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Bank loans                                            108,546            105,742
Bank deposits                                         101,156             93,437
Equity                                                 13,847             13,352
Total assets                                          270,220            244,114
                                                                                
Solvency ratio (%)                                       14.7               15.8
Tier 1 capital ratio including hybrid                    13.3               14.1
 core capital (%)                                                               
Core Tier 1 capital ratio excluding                      12.1               12.5
 hybrid core capital (%)                                                        
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The data are unaudited and have not been reviewed.

Net interest income under core earnings rose by 2% in 2011 and by 9% in the
fourth quarter compared with the third quarter of 2011. 

In a year with a generally falling demand for financing, the Jyske Bank Group's
bank loans increased by 3% and bank deposits rose by 8%. 

The Jyske Bank Group's capital structure is robust with a solvency ratio of
14.7% and a Core Tier 1 capital ratio excluding hybrid core capital of 12.1%.
Hence, the Jyske Bank Group maintains a level above 12% for Core Tier 1 capital
excluding hybrid core capital and still fulfils its aim of meeting the Swedish
capital requirements of systemic banks. 

Special circumstances

2011 was affected by unusually many special circumstances:

  -- Prepayment of a subordinated loan capital of nominally EUR 25m resulted in
     an expense of DKK 52m.
  -- Adjustment of the number of employees and branches resulted in an expense
     of DKK 80m.
  -- Acquisition of activities of Finans Nord, Easyfleet and parts of Fjordbank
     Mors affected the profit favourably by DKK 159m.
  -- Buy-back and cancellation of hybrid core capital of nominally EUR 50m led
     to an income of DKK 155m.
  -- Costs relating to the migration to Bankdata resulted in an expense of DKK
     95m.
  -- Adjustment of VAT and payroll tax led to an expense of DKK 56m.
  -- Value adjustment of the portfolio of Greek government bonds at fair value
     resulted in total expenses of DKK 299m, of which DKK 233m related to the
     held-to-maturity portfolio.
  -- Provisions for Jyske Invest Hedge Markedsneutral - Obligationer (JIHMO)
     resulted in an expense of DKK 229m.

Anders Dam, Managing Director and CEO:

'2011 was a challenging and turbulent year for Jyske Bank.

Most recently, increased uncertainty about the debt situation in the euro zone
and a potential Greek national bankruptcy prompted us, as a practical measure,
to recognise the entire portfolio of Greek government bonds at market price.
All in all, we made a negative value adjustment in the amount of DKK 299m
relating to Greek government bonds in 2011. As at end-2011, the carrying amount
was DKK 181m. 

In addition, in the light of the development in the so-called Hedge case, we
have decided to make provisions of DKK 229m to cover a potential liability
which Jyske Bank may have to pay as a result of lawsuits. 

The Western Division of the Danish High Court has made a decision allowing the
association of investors in Jyske Invest Hedge Markedsneutral to commence a
class action suit against Hedgeforeningen Jyske Invest and Jyske Bank A/S. We
disagree that the conditions for the commencement of a class action suit have
been fulfilled and have therefore decided to attempt to bring the decision
before the Supreme Court and are considering further legal measures. The
Western Division of the Danish High Court states in its decision that the
framework of the class action suit has still not been determined. 

If we find that any tortious errors have been committed in isolated cases,
Jyske Bank will still acknowledge this and pay compensation. 

We find that compared with DKK 1,003m in 2010, a pre-tax profit of DKK 601m is
tolerable considering the economic situation and the adverse effect from
special circumstances of just below DKK 500m on the profit. 

Finally, we find the financial position robust in the light of the overall
offensive initiatives made by Jyske Bank in 2011 to strengthen its earnings
power, adjust costs and optimise the capital structure', concludes Anders Dam. 



Other information

On 21 February 2012, Jyske Bank will, as planned, release its Annual Report
2011. 

Contact persons concerning this announcement: Anders Dam

(+45 89 89 89 89) and Birger Krøgh Nielsen (+45 89 89 64 44).
News Source: NASDAQ OMX



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Language:     English
Company:      Jyske Bank A/S
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0010307958
WKN:          
 
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