Jyske Bank's consolidated 1 st quarter report for 2002

Transcription

1 The Copenhagen Stock Exchange SUPERVISORY BOARD Vestergade Silkeborg Tel: Fax: April Jyske Bank's consolidated 1 st quarter report for - - Pre-tax result of DKK 302m (EUR 41m), corresponding to an annual return on opening shareholders' funds of 19.6% - Annual pre-tax return per share of DKK (EUR 4.30) - Core earnings amounted to DKK 198m (EUR 27m) - Investments immediately written off amounted to DKK 100m (EUR 13m) - Return on own securities portfolio amounted to DKK 104m (EUR 14m) - The anticipated level of core earnings for the full year remains unchanged - The Supervisory Board expects to convene an extraordinary general meeting in the 2 nd quarter and to propose a resolution to reduce the Bank's nominal share capital Core earnings Inclusive of mortgage credits, Group advances increased by 10% to DKK 85bn (EUR 11bn). Total deposits increased by 3% to 53bn (EUR 7bn). The resultant level of earnings did not meet expectations, as the increase was accounted for exclusively by loans to the corporate sector and mortgage lending. Gross earnings on customer-driven transactions amounted to DKK 928m (EUR 125m). Expenses including investments immediately written off amounted to DKK 663m (EUR 89m), and were in accordance with the budget. As planned, a large part of this year's investments in new PCs, the refurbishment of the Danish branch network, the extension of the Bank's head office as well as consultant fees to Oliver Wyman & Company in connection with the Bank's capital allocation project will be charged as expenses in the 1 st and 2 nd quarter. For the first three months of, investments immediately written off amounted to DKK 100m (EUR 13m). Almost all of the Bank's Danish workstations have been upgraded, and the project is expected to be completed, and the associated costs written off, in early May. Out of a total of 120 Danish branches, 79 branches and 3 divisional centres have now been refurbished in accordance with the Jyske Differences concept. The capital allocation project is progressing according to plan, as is the extension of the Bank's head office in Silkeborg. The new premises will be officially opened on 7 July. As expected, the number of full-time staff was unchanged compared with year-end. 1 st quarter report 1/6

2 For the first three months of, a net amount of DKK 66m (EUR 9m)was charged to losses and provisions for bad and doubtful debts. Total provisions stood DKK 1,886m (EUR 254m). Nonperforming credits amounted to DKK 386m (EUR 52m). Core earnings calculated as the consolidated pre-tax profit less the return on the Bank's own securities portfolio but inclusive of investments immediately written off amounted to DKK 198m (EUR 27m), or DKK 13m (EUR 2m) less than budgeted. Profit on own securities portfolio The return on the Bank's own securities portfolio for the 1 st quarter of amounted to DKK104m (EUR 14m) net of funding costs. Overall result Consolidated pre-tax profits amounted to DKK 302m (EUR 41m), corresponding to an annual return on opening shareholders' funds of 19.6%. The annualised pre-tax profit amounted to DKK per share (EUR 4.30). After tax of DKK 99m (EUR 13m), the net profit for the period was DKK 203m (EUR 27m). On 31 March, the book value of the Jyske Bank share stood at DKK 179 (EUR 24). Capital, total assets and customer relations The group solvency ratio was 11.7% (Tier 1: 8.3%). When calculated on the basis of inclusion of earnings to date, the solvency ratio was 11.9% (Tier 1: 8.5%). Given the present difference in cost between core and supplementary capital, the Supervisory Board expects to convene an extraordinary general meeting and to propose a resolution to reduce the Bank's nominal share capital. The Bank's goals and policy in this regard remain unchanged. As at 1 January, Jyske Ejendomme I A/S - subsidiary of Jyske Bank - merged with Jyske Bank A/S. Outlook for The level of expenses and investments is in keeping with budgets. Gross earnings on customerdriven transactions were slightly below budget. Following a number of reports from leading Danish corporates, which indicate a decline in levels of activity, we expect this trend to continue in the coming quarters. Consequently, steps have been taken to bring overall costs into line with the development in earnings. The budget anticipated no change in the number of staff compared with year-end. The level of new appointments was expected to be , but has now been reduced to approx Taking into account the establishment of JN Data A/S, the number of employees is expected to decline by by year-end. The investment plans for the second half of the year have likewise been adjusted to take into account the anticipated decline in the level of activity. On the basis of the above, we confirm our previously-published forecasts for core earnings of DKK 800-1,000m (EUR 108m-135m) for. 1 st quarter report 2/6

3 Finance calendar Jyske Bank's semi-annual report for will be published on 30 July. Yours faithfully Leon Rasmussen Chairman of the Supervisory Board Anders Dam Managing Director and CEO Enclosure The Jyske Bank Group, 1 st quarter This is a translation for information only. The Danish text shall be the operative instrument in all respects. 1 st quarter report 3/6

4 THE JYSKE BANK GROUP - 5 QUARTER SUMMARY SUMMARY OF PROFIT AND LOSS ACCOUNT (DKKm) 4th quarter 3rd quarter 2nd quarter Net interest income Dividend on capital holdings Net fee and commission income Net interest and fee income Revaluations Other ordinary income Operating expenses and depreciation Losses and provisions for bad debts Revaluation of capital interests Profit/loss on ordinary activities before tax Tax Net profit/loss Of which: Minority shareholders Jyske Bank SUMMARY OF BALANCE SHEET Advances 85,447 82,537 79,724 79,375 77,564 Deposits 53,481 54,393 53,371 50,965 51,698 Issued bonds 37,064 36,964 33,377 32,014 28,264 Total assets 133, , , , ,595 Shareholders funds * 6,982 6,174 6,293 6,148 6,115 Supplementary capital 2,666 2,663 2,654 2,678 2,125 KEY FIGURES ** The Jyske Bank share Face value: DKK 20 Core earnings Profit/loss on ordinary activities before tax Profit/loss for the period Price at end of period Book value * Price/book value The Jyske Bank Group Solvency ratio Core capital ratio Pre-tax profit/loss on ordinary activities as % of average shareholders' funds Result for the period as % of average shareholders' funds Income on every krone of expenditure Interest-rate risk Currency risk Provisions as % of total loans, etc Losses and provisions for the period as % of total loans, etc No. of full-time staff at the end of period 3,324 3,328 3,290 3,197 3,170 * Including result for the period exclusive of minority shareholders. As at 31 March, inclusive of capital increase relating to the co-operation agreement entered into with Nykredit A/S ** Key figures have not been converted into full year figures. The accounting principles are identical to those applied to the accounts. 1 st quarter report 4/6

5 CORE EARNINGS 4th quarter 3rd quarter 2nd quarter Net interest income Dividend on capital holdings Net fee and commission income Net interest and fee income Revaluations Other ordinary income Gross earnings Operating expenses and depreciation Core earnings before losses and provisions Losses and provisions Core earnings Profit on own securities portfolio Profit/loss on ordinary activities before tax CORE EARNINGS, RETURN ON OWN SECURITIES PORTFOLIO AND THE OFFICIAL PRESENTATION OF ACCOUNTS (DKKm) Core earnings Return on own securities portfolio Total * Core earnings Return on own securities portfolio Total * Net interest income Dividend on capital holdings Net fee and commission income Net interest and fee income Revaluations Other ordinary income Operating expenses and depreciation Losses and provisions for bad debts Revaluation of capital interests Profit/loss on ordinary activities before tax * Summary subject to the official guidelines Core earnings include the result of customer-driven activities. The return on the Bank's own securities portfolio includes return on own securities, etc. which exceeds the rate otherwise obtainable through the central bank. 1 st quarter report 5/6

6 DEVELOPMENT IN SHAREHOLDERS' FUNDS AND MINORITY SHAREHOLDERS (DKKm) Group Group Shareholders' funds, beginning of period 6,174 5,887 Result for the period Capital increase Goodwill immediately written-off -6 0 Shareholders' funds, end of period 6,982 6,115 Minority shareholders, beginning of period Share of the result for the period 0 1 Minority shareholders, end of period SOLVENCY CALCULATION (Exclusive of the result for the period) Group Group Core capital less deductions 6, Capital base less deductions 9, Weighted items not included in the trading portfolio 71, Weighted items with market risk, etc. 10, Total weighted items 81, Solvency ratio ,4 Core capital ratio 8.3 7,6 1 st quarter report 6/6