Jyske Bank (JYSK) Investor presentation summary

Earnings and outlook

• Record 2021 EPS of DKK 42; 2022 EPS expected at DKK 40-46.

• 2022 net profit forecast at DKK 2.7-3.1bn; CET1 ratio 15%-17% and capital ratio 20%-22%.

• Core income expected below 2021 due to value adjustments; core expenses expected lower excluding one-off items.

• Bank lending and nominal mortgage lending expected to increase in 2022; loan impairment charge reversals expected.

Lending and credit quality

• Bank lending growth accelerated in Q4 2021, reaching its highest level in more than a decade.

• Danish bank lending to non-financial corporations reached its highest growth level since 2008; sector data indicated a continued positive trend in Q1 2022.

• Management estimates increased DKK 1.2bn over two years, including DKK 0.5bn in Q2-Q4 amid reversals; write-offs and NPLs remained very low.

Market conditions and exposure

• Direct credit, fund and treasury exposure to Russia was very limited; Russia represented 1.0% of Danish trade and 0.2% of financial assets and workforce.

• Q1 2022 brought volatile markets, wider credit spreads and declining equity markets; long-term DKK swap rates rose more than short-term rates.

• Danish inflation reached its highest level in more than 30 years.