Jyske Bank A/S
JYSKE BANK’S HALF-YEAR RESULTS 2012

Jyske Bank A/S 

17.07.2012 08:16
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Core earnings before loan impairment charges and provisions for guarantees,
etc. rose by 28% to DKK 1,309m. 


The Danish Financial Supervisory Authority's more stringent guidelines
regarding loan impairment charges and provisions for guarantees affected the
pre-tax profit negatively by about DKK 900m. 

Marked improvement of operating performance

The profit for the first half of the year before the effect from the FSA's new
guidelines came to DKK 691m against DKK 318m for the first half of 2011. This
is the best profit for the first half of the year since 2008. Core earnings
before loan impairment charges and provisions for guarantees, etc. rose by 28%.
Net interest and fee income under core earnings rose by 11%; other operating
income rose by 15%; and income from leasing activities inclusive of acquired
activities rose by 107%. Costs exclusive of special items showed zero growth. 

Jyske Bank's portfolio of held-to-maturity bonds amounted to DKK 17.9bn against
DKK 18.9bn at end-2011. At the end of the first half of 2012, the fair value of
the held-to-maturity portfolio was higher than the carrying amount by DKK 180m.
At the end-2011, the fair value of the held-to-maturity portfolio was lower
than the carrying amount by DKK 7m. 

The Jyske Bank Group's solvency ratio came to 15.8%, its Core Tier 1 capital
ratio came to 14.3%; and its Core Tier 1 capital ratio excluding hybrid capital
came to 13.1%. The individual solvency requirement was calculated at 9.6%. 
Compared with the actual capital base of DKK 17.3bn, the capital surplus
amounted at the end of the first half of 2012 to DKK 6.8bn, corresponding to an
 increase of DKK 1.7bn in the first half of 2012. 

Hence the Jyske Bank Group still has a strong and satisfactory capital and
liquidity base, and on the whole it is assessed that the earnings on the
business activities in the first half of 2012 were satisfactory. 

Effect from more stringent FSA guidelines for loan impairment charges and
provisions for guarantees, etc. 

In connection with the preparations of the interim financial statements 2012,
Jyske Bank contacted the FSA for an interpretation of the FSA's new and more
stringent guidelines for loan impairment charges and provisions for guarantees,
etc. that took effect as of the second quarter of 2012. 

In isolation, the interpretation and the implementation of this had a negative
effect on pre-tax profit in the amount of about DKK 900m, which is broken down
to about DKK 540m for loan impairment charges and provisions for guarantees and
about DKK 360m for value adjustments relating to customers' interest-rate
hedging, which was intensified due to the falling interest rate in the second
quarter of 2012. 

The new FSA guidelines do not alter Jyske Bank's view on the risk related to
the loan portfolio emphasised by the decline in the individual solvency
requirement. It is still expected that loan impairment charges and provisions
for guarantees for the year will be in the range of DKK 1.6bn to 2.0bn,
inclusive of the effect from the FSA's new and more stringent guidelines for
loan impairment charges, yet exclusive of value adjustments relating to
customers' interest-rate hedging. Jyske Bank's balance of loan impairment
charges and provisions for guarantees increased in the first half of the year
by DKK 723m to DKK 4,594m, corresponding to 3.2% of loans and guarantees
against 2.8% at the end of 2011. 

Other information

Jyske Bank will publish its Interim Financial Report for the first half of 2012
on 21 August 2012. Please address inquiries concerning this announcement to
Anders Dam (+45 89 89 20 01) or 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:          
 
End of Announcement                             DGAP News-Service
 
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