Jyske Bank (JYSK) Nordea banking trip 2022 presentation summary

2022 outlook

• EPS of DKK 40–46 expected for 2022, versus the 2021 all-time high of DKK 42.

• Profitability initiatives, lending growth and strong credit quality underpin expectations for a record EPS level in 2022.

• Tight cost management remains a priority; completion of the capital markets programme is expected to provide a tailwind.

Lending and repricing

• Bank lending grew >2% QoQ in Q3 2021, its highest rate since 2017, with corporate lending momentum improving.

• Continued growth expected in savings products, including pensions.

• Deposit rate initiatives, fully implemented, are expected to lift ROE by >2pp p.a. versus Q2 2019.

• Material fee-structure changes and lower deposit rates are expected to support profitability.

Customer pricing and cost base

• From 1 April 2022, Jyske Hverdag customers with household business below DKK 250,000 face a DKK 480 annual platform fee; Jyske Plus and Premium have no platform fee.

• FTEs were reduced by 27% since the merger with BRFkredit, alongside repricing initiatives.