Djurslands Bank (DJUR) Q1 2025 earnings summary

Executive summary

• Result before tax for Q1 2025 was DKK 76.4 million, down 10.9% year-over-year but up 8.5% sequentially, reflecting lower net interest income and higher costs, partially offset by positive value adjustments and low impairments.

• Customer base and business volume continued to grow, with private customers up 4.3%, business customers up 6.8%, and total business volume up 14.8% year-over-year.

• The bank maintained a strong capital position, with a NEP capital ratio of 23.7% and a liquidity coverage ratio of 445.5%.

Financial highlights

• Net interest and fee income was DKK 150.2 million, down 2.9% year-over-year, mainly due to a significant drop in net interest income (-11.0%), partially offset by a 12.2% increase in fee income.

• Operating expenses rose 11.7% year-over-year to DKK 97.5 million, driven by staff increases and IT investments, including the new Højbjerg branch.

• Value adjustments contributed DKK 20.2 million, up from DKK 13.9 million last year, mainly from sector shares and bonds.

• Impairments were a net income of DKK 3.2 million, reflecting continued low credit losses.

• Loans increased 13.3% year-over-year to DKK 5.6 billion; deposits rose 13.5% to DKK 9.9 billion.

• Return on equity before tax was 17.4% (down from 21.5% last year).

Outlook and guidance

• Full-year 2025 pre-tax profit is expected in the range of DKK 230–270 million, unchanged despite continued uncertainty in the interest rate environment.

• The bank will maintain its strategic focus on organic growth, digitalization, and local market presence.