Djurslands Bank (DJUR) Q4 2024 earnings summary

Executive summary

• 2024 delivered a record pre-tax profit of DKK 327.3m, up 4.1% year-over-year, exceeding initial expectations due to higher activity, robust customer credit quality, and low impairments.

• Net interest income rose 0.2% to DKK 396.6m, despite four rate cuts by the Nationalbank, driven by strong growth in both lending (+13.4%) and deposits (+9.1%).

• Customer base expanded, with private customers up 4% to 62,513 and business customers up 5% to 5,199; shareholders increased by 3.5% to 22,318.

• The bank’s share price rose 25.6% to DKK 560, with a total return (including dividend) of 32.3%.

• Board proposes a dividend of DKK 30 per share, equal to 32.8% of net profit.

Financial highlights

• Net interest and fee income reached DKK 632.8m, up 2.6% from 2023.

• Operating expenses increased 7.9% to DKK 349.9m, mainly due to higher personnel and IT costs and the opening of a new branch in Højbjerg.

• Impairments and provisions contributed a net income of DKK 4.9m, a DKK 23.7m improvement from last year.

• Return on average equity before tax was 19.3% (2023: 20.9%).

• The capital ratio was 22.9%, CET1 ratio 21.4%, and NEP capital ratio 25.5%, all well above regulatory requirements.

• Liquidity Coverage Ratio (LCR) at 452.3%, far exceeding the 100% requirement.

Outlook and guidance

• 2025 pre-tax profit is expected in the range of DKK 230–270m, reflecting a lower interest rate environment and increased competition.

• Impairments on loans and guarantees are forecast to be an expense of 0.2% of total loans and guarantees (approx. DKK 18m).

• Continued customer growth and business volume expansion are anticipated, with a focus on increasing the share of business customers.

• Personnel and IT costs are expected to rise 7–9% in 2025 due to staff increases and regulatory demands.