Outlook for earnings per share upgraded to DKK 65-75 for 2023
Jyske Bank expects earnings per share of DKK 65-75, corresponding to a net profit of DKK 4.3bn - 4.9bn in 2023. The interval includes one-off costs related to the integration of Handelsbanken Denmark, which are expected to amount to c. DKK 0.3bn.
The upgraded outlook reflects a net profit of DKK 1,289m in the first quarter of 2023, corresponding to an increase of 51% compared with the first quarter of 2022. The increase can be attributed to the acquisition of Handelsbanken Denmark, which significantly surpasses the original expectations for 2023. The integration is progressing according to plan and the first branch mergers have been completed. Additionally, the effect from the higher level of interest rates also contributed.
In the table below, an income statement as well as selected balance sheet items and key figures are shown.
| Core profit and net profit for the period (DKKm) | Q1 | Q1 | Index |
| 2023 | 2022 | 23/22 | |
| Net interest income | 2,224 | 1,312 | 170 |
| Net fee and commission income | 658 | 683 | 96 |
| Value adjustments | 240 | 9 | - |
| Other income | 104 | 105 | 99 |
| Income, operating lease (net) | 84 | 80 | 105 |
| Core income | 3,310 | 2,189 | 151 |
| Core expenses | 1,480 | 1,160 | 128 |
| Core profit before loan impairment charges | 1,830 | 1,029 | 178 |
| Loan impairment charges | 96 | -55 | - |
| Core profit | 1,734 | 1,084 | 160 |
| Investment portfolio earnings | 31 | 4 | - |
| Profit before one-off items | 1,765 | 1,088 | 162 |
| One-off items relating to Handelsbanken DK | -38 | 0 | - |
| Pre-tax profit | 1,727 | 1,088 | 159 |
| Tax | 438 | 237 | 185 |
| Net profit for the period | 1,289 | 851 | 151 |
| Summary of balance sheet, end of period (DKKbn) and key figures | |||
| Mortgage loans, fair value | 338.2 | 329.5 | 103 |
| Mortgage loans, nominal | 367.3 | 341.2 | 108 |
| Bank loans (excl. repo) | 155.1 | 110.5 | 140 |
| Bank deposits (excl. repo and triparty deposits) | 202.2 | 127.1 | 159 |
| Earnings per share (DKK) | 19.5 | 12.1 | 161 |
| Expenses as a percentage of income | 44.7 | 53.0 | 84 |
Previously, Jyske Bank expected earnings per share of DKK 60-70, corresponding to a net profit of DKK 4.0bn - 4.6bn in 2023.
| Earnings per share | Outlook 2023 | 2022 | 2021 | 2020 | 2019 | |
| DKK | 65-75 | 55.4 | 42.4 | 19.8 | 29.0 | |
The interim financial report for the first quarter of 2023 will expectedly be published on 2 May.
Yours faithfully,
Jyske Bank
Contact person: Birger Krøgh Nielsen, CFO, tel.
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