Jyske Bank revises 2020 net profit outlook upwards

Jyske Bank expects a pre-tax profit of c. DKK 2,100m for 2020, corresponding to c. DKK 1,600m after tax, compared to the previous guidance of DKK 1.0 bn - 1.5 bn. The upward revision was in particular caused by sound client activity, a favourable development in the financial markets, low core expenses and continued solid credit quality.

The Corporate business area reports a satisfactory intake of clients with good credit quality; the Personal business area has implemented an extensive organisational change and has reported satisfactory results in the third and fourth quarters; and mortgage lending develops as expected focusing on enforcement of the credit policy. Jyske Finans reports a high level of activity and has generated a profit close to that for 2019. Jyske Markets reports a high level of client activity. The wealth management unit reports a satisfactory activity level.

Net interest income is expected to be about DKK 1.2 bn in the fourth quarter of 2020 and slightly below DKK 5 bn in 2020. Net fee and commission income is expected to be at a reasonable level for 2020. Core expenses are declining as expected. At the end of 2020, the number of full-time employees was 3,318 compared to 3,559 at the end of 2019. For the fourth quarter of 2020, impairment charges are expected to be about DKK 0, representing a level of nearly DKK 1 bn for 2020.

The Annual Report for 2020 is expected to be published on 23 February 2021.

Changes to the Supervisory Board

Philip Baruch, Supreme Court attorney (aged 67), who is the Deputy Chairman of the Bank’s Supervisory Board, wishes to resign from the Supervisory Board when his term of office expires at the Annual General Meeting on 23 March 2021. Philip Baruch was first elected to the Supervisory Board in 2006 and therefore he will resign from the Supervisory Board after 15 years. Philip Baruch is a member of the Remuneration Committee and the Nomination Committee of the Supervisory Board, and previously he was a member of the Audit Committee. Moreover, Philip Baruch chaired the Bank’s Shareholders' Representatives over the period 2012-2020, and also he was the deputy chairman over the period 2006-2012. 

Jens A. Borup, Fishing Vessel Master (aged 65) has informed the Bank that he wishes to resign from the Supervisory Board at the next Annual General Meeting. Jens A. Borup was first elected to the Supervisory Board in 2005, and therefore he will resign from the Supervisory Board after 16 years. Jens A Borup is a member of the Nomination Committee as well as the Audit Committee of the Supervisory Board. Previously, Jens A. Borup was a member of the Group Risk Committee and the Remuneration Committee of the Supervisory Board, and over the period 2011-2014 he was the Deputy Chairman of the Supervisory Board.

Yours faithfully,

Jyske Bank

Contact:

Kurt Bligaard Pedersen, Chairman of the Supervisory Board, tel.

Anders Dam, Managing Director and CEO, tel.

Birger Krøgh Nielsen, CFO, tel.

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