Preliminary announcement of financial statements 2020
- Core income: DKK 7,982m (2018: DKK 8,060m)
- Core expenses: DKK 4,848m (2019: DKK 5,029m)
- Loan impairment charges: DKK 968m incl. DKK 1 bn increase of management’s estimate (2019: DKK -101m)
- Core profit: DKK 2,166m (2019: DKK 3,132m)
- Pre-tax profit: DKK 2,110m, corresponding to a return on equity of 5.9% (2019: DKK 3,079m and 9.1%)
- Net profit: DKK 1,609m, corresponding to a return on equity of 4.4% (2019: DKK 2,440m and 7.1%)
- Earnings per share: DKK 19.8 (2019: DKK 29.0)
- Capital ratio of 22.9% and Common Equity Tier 1 ratio of 17.9% (2019: 21.5% and 17.4%)
- For 2021, Jyske Bank estimates a pre-tax profit in the range of DKK 2.5 bn - 3.0 bn, corresponding to a net profit of DKK 1.9 bn - 2.3 bn. Inclusive of the current share repurchase programme, earnings per share are expected to be DKK 25-31 against DKK 19.8 for 2020.
“A challenging first quarter of 2020 was followed by three quarters resulting in a pre-tax profit of DKK 3.1 bn and a net profit of DKK 2.4 bn, corresponding to earnings per share of DKK 31.2. The client activity is at a solid level, and the underlying business has developed in a stable fashion supported by significant cost reductions and a continuing good credit quality. Also, the organisation has been most adaptive and flexible during a turbulent year characterised by restrictions. Jyske Bank has a satisfactory balance of impairment charges as well as a most solid capital and liquidity position, which has, so far, enabled the bank to launch a share repurchase programme in the amount of DKK 750m,” states Anders Dam, CEO and Managing Director.
In 2020, the economic development was affected by the COVID-19 pandemic. After the extensive lockdown of the Danish economy in the spring, most economic activities were resumed, but towards the end
of the year, the number of COVID-19 cases increased again and the visibility as to the effect on the economy in 2021 is somewhat limited.
So far, the Danish economy has performed relatively well through the pandemic; the number of bankruptcies is low, consumer spending and unemployment are developing in a stable manner, and activity levels in the housing market are high. At the same time, our clients’ capital and liquidity situation is generally good and supported by various support packages.
The further development of the Danish economy will be affected by the development in COVID-19 cases and the rolling out of vaccines in and outside Denmark as well as the phasing out of support packages. To this must be added any derived economic effects from Great Britain’s exit from the EU.