Jyske Bank. Navigating the Nordics Seminar 31 May 2017

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Transcription:

Jyske Bank Navigating the Nordics Seminar 31 May 217

Our targets Q1 217 Delivering an attractive long-term return on equity of 8-12% 12.3% Volume growth DKK 1bn in housing-related loans DKK 84.3bn DKK 2bn in property loans for corporate clients DKK 13.6bn Maintaining a strong capital position Long-term targets for capital ratio 17.5% and CET1 ratio 14% Capital levels above long term targets in order to manage future regulatory requirements S&P rating A- (stable outlook) 17.6% and 15.8%* * Capital ratio of 19.4% and CET1 ratio of 16.3% if current profit and Tier 2 capital were included 2

Jyske Bank in brief One of the four large financial institutions in Denmark and a Danish SIFI 3 segments (Banking, Mortgage and Leasing) Estimated market share of 1-11% Danish play Approx. 89, customers Nationwide branch network comprised of 95 personal client branches, 3 corporate branches and 1 Private Banking centres Total assets of DKK 57bn and total loans of DKK 425bn of which mortgage loans account for DKK 287bn (68%) Growth strategy primarily focused on property lending: home loans and mortgages Creating growth and challenging the border between banks and mortgage credit institutions Strong capital position Long-term capital policy and well-positioned to manage effects of regulatory requirements Capital distribution: 215 and 216: DKK 2.25bn (dividend DKK 5m and buy-backs DKK 1.75bn) 217: DKK 1.5bn (dividend DKK 5m, buy-back DKK 5m and extra ordinary dividend DKK 5m to be proposed at extra ordinary general meeting to be held in 217) Able and willing to participate in further consolidation of the Danish financial sector 3

A strong start to the year Delivering a net profit of DKK 976m and ROE of 12.3% p.a. in Q1 217 A decrease of 3.4 percentage points compared to 216, given that improved core income and investment portfolio earnings only provide partial compensation for higher core expenses due to one-offs and lower level of reversals of impairment charges Net profit 1,4 1,2 1, 8 6 4 2-2 -4 Q3 214 214 Q1 215 215 Q3 215 215 Q1 216 216 Q3 216 216 Q1 217 21% 18% 15% 12% 9% 6% 3% % -3% -6% Net profit ROE (after tax) ROE of 12.3% p.a. in Q1 217 compared to 5.1% p.a. in Q1 216, increase attributed to: Positive contributions from all items except core expenses and tax. Excl. expensed one-offs of DKK 11m core expenses would also have represented an improvement compared to Q1 216 14.% 12.% 1.% 8.% Q1 217 vs. Q1 216: Development in ROE after tax 6.% 4.% 2.% Q1 216 Core income Core expenses Loan impairment charges Investment portfolio earnings Tax Q1 217 4

DKKbn Jyske Bank Group Growth in mortgages and home loans continues at slightly lower pace Bank loans continue to stabilise and bank deposits decrease Positive development in AUM due to positive returns and net inflow of funds Core income increases due to strong net fee income and value adjustments driven by favourable development in financial markets Core expenses up due to one-offs underlying development stable Net reversals of impairments also to a minor extent on agriculture Financials 2,5 2, 1,5 1, 5 - Q1 216 216 Q3 216 216 Q1 217 Core expenses Core income Core profit Business volumes 35 3 25 2 15 1 5 Q1 216 216 Q3 216 216 Q1 217 Assets under Management Bank loans Bank deposits Mortgage loans Loan impairment charges (under core profit) 2 1-1 -2-3 -4 Q1 216 216 Q3 216 216 Q1 217 Loan impairment charges Impairment charges ex. agriculture 5

Continued pressure on NII Underlying trend continues in Q1: NII from growth in home loans and mortgages as well as leasing activities partially compensate for the top-line pressure experienced in banking activities Q1 217 vs. 216: Development in NII 1,5 1,45 1,4 1,35 Negative variance of DKK 87m compared to 216 One-off of DKK 52m related to change in accruals for up-front fees in leasing 1,3 1,25 activities recognised in 216 2 days less in Q1 217 (9 days) than 216 (92 days) 1,2 216 Leasing: change in accruals one-off Lower bond holdings and lower reinvestment rates Volume growth in home loans Bank loans and deposits, net Misc (primarily 2 days less in Q1 vs ) Q1 217 Reduced bond holdings, liquidity as well as trading portfolio, result in lower interest income from bonds Positive NII effect from negative deposits rates introduced in mid-december Pressure on margins 6

Tailwind from financial markets results in strong net fee income Net fee income in Q1 217 only second to levels seen in and up by 38% compared to Q1 216. The increase can be attributed to: Banking activities: Primarily investment related fee income, secondarily loan application fees Mortgage activities: Fee income increased by higher activity level (loan application fees) and refinancing activity Net fee income 5 4 3 2 1 - -1 Q1 216 216 Q3 216 216 Q1 217 Securities trading etc.: Higher investment related commissions as well as performance related fees as stock markets have developed favourably compared to Q1 216 Increased refinancing activity within mortgages leads to higher brokerage income Loan application fees: Higher activity in mortgage activities and reinstatement of up-front fees on home loans Fee and commision income 4 3 2 1 Banking activities Mortgage activities Leasing activities Securities trading and safe-custody services Money transfers and card payments Loan application fees Guarantee commission Other fees and commissions Q1 216 Q1 217 7

Underlying trend in core expenses stable Underlying development in core expenses stable Q1 217 vs. 216: Development in core expenses 1,4 1,35 1,3 Core expenses in Q1 217 up by DKK 55m compared to 216: 1,25 1,2 1,15 Both quarters affected by one-offs. In Q1 217, one-offs of DKK 11m approx. DKK 5m higher than the one-offs in 216 1,1 1,5 1, 216 One-offs 216 (MobilePay, other provisions etc.) One-offs (write-offs intangible assets, anniversary activities) Misc Q1 217 Q1 217 vs. Q1 216: Development in core expenses Compared to Q1 216 core expenses are up by DKK 122m due to: 1,4 1,35 1,3 One-offs incurred in Q1 217 1,25 1,2 Annual re-occurring salary increase stipulated by collective agreement (1.8%) and increase in payroll tax rate (.6%) 1,15 1,1 1,5 1, Q1 216 One-offs (write-offs intangible assets, anniversary activities) Misc (primarily salary increase 1.75% and payroll tax up.6%) Q1 217 8

DKKbn Banking activities Stabilisation of bank loans and bank deposits Positive development in AUM due to positive returns and net inflow of funds Core income at level with 216 due to strong net fee income and value adjustments Core expenses up due to one-offs, underlying development stable Net reversals of impairments also minor reversal on agriculture Financials 1,8 1,6 1,4 1,2 1, 8 6 4 2 - Q1 216 216 Q3 216 216 Q1 217 Core expenses Core income Core profit Business volumes 16 14 12 1 8 6 4 2 - Q1 216 216 Q3 216 216 Q1 217 Impairments 3 2 1 - -1-2 -3-4 Q1 216 216 Q3 216 216 Q1 217 Home loans Bank loans Deposits Assets under management Impairments Impairments ex. agriculture 9

DKKbn Mortgage activities Growth in all lending segments - most significant in Private and Commercial segment Core income stable NII grows as volume grows, net fee income lower in Q1 217 than 216 Core expenses as expected Increased impairments on hard-to-sell mortgaged properties Financials 6 5 4 3 2 1 - Q1 216 216 Q3 216 216 Q1 217 Core expenses Core income Core profit Business volumes (BRFkredit A/S) 3 Impairments 1 29 8 28 6 27 26 25 24 Q1 216 216 Q3 216 216 Q1 217 Mortgages 4 2 - -2-4 -6 Q1 216 216 Q3 216 216 Q1 217 1

DKKbn Leasing activities Gradually increasing loan volumes Adjusted for one-off in NII 216, stable development in core income Core expenses develop as expected Impairment charges at continued low level Financials 15 13 11 9 7 5 3 1-1 Q1 216 216 Q3 216 216 Q1 217 Core expenses Core income Core profit Business volumes 16 15 14 13 12 11 1 Q1 216 216 Q3 216 216 Q1 217 Loans Impairments 1 8 6 4 2 - -2-4 -6-8 -1 Q1 216 216 Q3 216 216 Q1 217 11

Strong investment portfolio earnings Investment portfolio earnings driven by: Positive value adjustments on portfolio of Danish mortgage bonds driven by narrowing of credit spreads (OAS) Positive effect of approx. DKK 1m from Jyske Bank s holdings in Nordjyske Bank: DKK 7m in value adjustments and DKK 3m in received dividend (Q1 216: DKK -13m and DKK 15m, respectively) Jyske Bank to reduce its holdings of Nordjyske Bank shares in the course of 217 if a price acceptable to Jyske Bank can be achieved Annual investment portfolio earnings have been ranging between DKK 1-6m the past 5 years With an average of approx. DKK 4m Investment portfolio earnings, quarterly 4 3 2 1-1 -2 Q1 216 216 Q3 216 216 Q1 217 Investment portfolio earnings, last 5 years 7 6 5 4 3 2 1 212 213 214 215 216 12

Capital 13

pct Adjusting to long-term capital targets Capital ratio 17.6% and CET1 ratio 15.8% end of Q1 217 vs. long-term targets of 17.5% and 14% Tier 2 capital issued as per value date April 5 th to be included in capital base in Capital ratio of 19.4% and CET1 ratio of 16.3% if current profit and Tier 2 capital were included Capital ratios 2 15 1 5 Gradual adjustment of the capital structure towards targets (3.5 pp. in subordinated debt) Subordinated debt 1.8% of REA end of Q1 217, 3.1% if Tier 2 capital issued early April is included Adjustment expected to be completed by end of H1 218 Q1 216 216 Q1 217 Long-term target Common Equity Tier 1 Hybrid Tier 1 Tier 2 Capital distribution: Share buy-back programmes of DKK 2.25bn in total: DKK 75m (Nov 215-Jun 216) DKK 1bn (Jul Dec 216) DKK 5m (Mar Sep 217) Dividends of DKK 1.5bn in total: DKK 5m (March 216) DKK 5m (March 217) Extra ordinary dividend of DKK 5m to be proposed at EGM ( 217) Capital distribution (time of announcement) 1,2 1, 8 6 4 2 215 Q1 216 216 Q3 216 216 Q1 217 217 Defending and securing a stable S&P rating of A- remains a key priority Buy-back Dividend 14

pct pct Strong capital position Capital ratio 17.6% and CET1 ratio 15.8% end of Q1 217 compared to 18.3% and 16.5% end of 216. Changes in capital ratios due to: Current profit no longer included in capital base Proposed extraordinary dividend deducted from capital Higher REA (primarily volume growth in property related loans) Solid capital base remains essential to allow room for: Growth (property related loans) Higher capital requirements imposed by upcoming legislation Aligning capital to S&P requirements M&A activity if opportunity should arise Individual solvency requirement decreases, combined buffer requirements increase: 9.9% (+.9% SIFI requirement and 1.3% capital conservation buffer, in total 12.1%) Capital buffer DKK 1.1bn corresponding to 5.5% Capital ratio and CET1 ratio 2 18 16 14 12 1 8 6 4 2 Solvency requirement 2 15 1 2.5 1.5 2.5 2. 2. 1.5 Pillar I I Requirement 2.5 1.5 2.5 1,2 Pillar I 4.5 Requirement 8 % 4.5 Expected fully phased in CRD IV ratios by 219 Expected CET1 components required 219.6 1.2 15.8 Capital ratio end of Q1 217 Min. CET1 Requirement Tier 1 Tier 2 Pillar II buffer Capital conservation buffer SIFI buffer Countercyclical buffer 5 Q1 216 216 Q3 216 216 Q1 217 Solvency requirement Regulatory buffers Capital buffer 15

Credit Quality 16

Net reversals Net reversals of DKK 45m under core profit Of which agriculture DKK 6m Total balance of management s estimate of DKK 465m end of Q1 217, of which DKK 185m relate to agriculture, compared to DKK 471m and DKK 235m respectively end of 216 Impairment ratios (under core profit): Impairment ratio for Q1 217-1bp Well below normalized level Accumulated impairment ratio 1.5% (incl. balance of discounts for acquired loans) unchanged compared to end of 216 Loan impairment charges (under core profit) 2 1-1 -2-3 -4 Q1 216 216 Q3 216 216 Q1 217 Loan impairment charges Impairment charges ex. agriculture Balance of loan impairment charges and losses 1, 2.3% Banking: Overall credit quality continues to improve Low number of new defaults and improvement in credit quality of previously defaulted clients Minor reversal in agriculture segment Mortgage: Overall positive development in credit quality Impairment charges on hard-to-sell mortgaged properties 8, 6, 4, 2, 2.1% 1.9% 1.7% 1.5% 1.3% Q1 216 216 Q3 216 216 Q1 217 Balance of loan impairment charges (incl. balance discounts for acquired assets) Losses Balance of loan impairment charges/total loans (rhs) 17

DKK/kg DKK/kg Limited exposure to dairy and pig farmers Exposure to dairy and pig farmers accounts for less than 1% of the Group s loans and guarantees Commodity prices 3.5 13 Commodity price development: Pork: Prices peaked at 1.8 DKK/kg in Q3 216. Current prices are close to the peak Milk: Prices hit historic lows during the summer of 216 but have recovered and now stand at 2.5 DKK/kg 3.25 3 2.75 2.5 2.25 12.5 12 11.5 11 1.5 1 Rebound in commodity prices improves situation for dairy and pig farmers but they remain structurally challenged by high leverage and, in many places, run-down production facilities 2 1.75 1.5 211 212 213 214 215 216 217 9.5 9 8.5 8 Impairment ratio for dairy farmers 46% end of Q1 217 - up from 45% end of 216 whereas impairment ratio for pig farmers stays stable at 26% Milk Pigs (r. axis) Source: Arla Foods and Danish Crown Loans, advances and guarantees Balance of loan impairment charges Impairment ratio Impairment charges Losses /% Q1 217 216 Q1 217 216 Q1 217 216 Q1 217 Q1 216 Q1 217 Q1 216 Dairy farmers 81 889 692 722 46% 45% 6 51 5 21 Pig farmers 1,223 1,237 424 431 26% 26% -1 71 2 1 Total 2,24 2,126 1,116 1,153 36% 35% 5 122 7 22 18

Reducing risk and earnings volatility 19

DKKbn A great match growth, profitability and risk profile In February 214, the merger between Jyske Bank and BRFkredit was announced under the headline A great match. Part of the rationale was: High growth potential Revenue and cost synergies Diversified balance sheet and de-risked earnings profile A lot has been achieved 3 years later: Annual revenue and cost synergies of DKK 6m were harvested by mid-216 18 months ahead of plan mainly due to: Volume growth of more than DKK 8bn 1% reduction in FTE Lower capital costs Growth targets within reach DKK 1bn in housing-related loans DKK 2bn in mortgage loans for commercial clients Development in mortgage lending 16 14 12 1 8 6 4 2 Core expenses and FTEs 1,5 1,4 1,3 1,2 1,1 1, 9 8 7 6 Q3 214 Private Commercial Subsidised 214 Q1 215 Core expenses Q1 214 Q1 217 215 Q3 215 215 Q1 216 216 Q3 216 216 Q1 217 Number of full-time employees (rhs) 4,4 4,3 4,2 4,1 4, 3,9 3,8 3,7 3,6 3,5 2

Transformed risk profile reduces risk and earnings volatility DKKbn De-risked profile: From 1% bank loans to more than 2/3 mortgage loans. Low risk mortgage loans make up 68% of the Group s loan portfolio at end of Q1 217: Fully collateralised Historically, losses and impairment charges on mortgages are significantly lower than on bank loans: 19bp vs. 89bp Larger part of portfolio comprised of private individuals Less concentration risk and higher degree of diversification Reduced earnings volatility: Growth in non-interest rate sensitive NII from mortgage activities: 68% of loan volume and 32% of NII in Q1 217 61% of loan volume and 3% of NII in Q1 215 Net interest income Total loans, advances and guarantees by loan type 5 45 4 35 3 25 2 15 1 5 Q1 214 214 Q1 217 Bank loans Repo loans Guarantees Home loans Mortgage loans Total loans, advances and guarantees by client segment 1% 8% 6% 1% 9% 8% 7% 6% 8,188 9,34 6,773 196,826 227,466 92,949 4% 2% % Q1 215 215 Q3 215 215 Q1 216 216 Q3 216 216 Q1 217 5% 4% 3% 2% 1% % 15,279 27,674 49,84 Q1 214 214 Q1 217 Banking activities Mortgage activities Leasing activities Personal clients Commercial clients and subsidised Public authorities 21

Growth in home loans continues to improve quality of portfolio Majority of clients known by Jyske Bank. Volume primarily stems from repatriation of loans previously referred to Totalkredit 85% in credit rating class 1-5 compared to overall average of approx. 65% for bank loans for the retail segment (Risk and Capital Management 216) Minimal losses since December 213 Jyske Bank s risk appetite in growth areas is lower than average (Danish FSA report, October 216) Development in portfolio composition by product type supports compliance with benchmarks in FSA diamond Jyske Bank home loan portfolio by product type 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Q1 216 216 Q3 216 216 Q1 217 Total F1 F3 F5 RL5 RL8 L3 Interest-only 22

Mortgages: The portfolio 87% of lending to properties with housing purposes No loans with swaps to co-operative housing No lending to agriculture and other primary production Distribution of lending portfolio Increasing share of retail lending Primarily driven by joint funding of Jyske Bank home loans The increase is expected to continue Increase in share of fixed rate mortgages and decreasing share of F1 and F2 Development in lending portfolio Development in loan types 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 34% 31% 31% 3% 19% 18% 17% 17% 46% 51% 52% 53% 214 215 216 Q1 217 9% 88% 86% 84% 82% 8% 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 11% 11% 12% 12% 23% 21% 18% 18% 37% 34% 35% 35% 28% 34% 35% 35% 214 215 216 Q1 217 Commercial Subsidised Private Housing purposes (rhs) Cibor/Cita F1 - F2 F3 - F1 Fixed 23

Mortgages: Improved credit quality Lending in 9-days arrears (per cent of lending) 1.8% 1.6% 1.4% 1.2% 1.%.8%.6%.4%.2%.% 212 212 213 213 214 214 Yearly realised losses (running year).5%.4%.3%.2%.1%.% -.1% 212 212 213 213 214 214 215 215 215 215 Private Commercial Subsidised 216 216 216 Private Commercial Subsidised 216 Repossessed properties (/number) 5 45 4 35 3 25 2 15 1 5 Loan-to-Value brackets (per cent of lending) 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% Q1 214 Q1 215 Q1 216 Q1 217 Commercial properties Private properties # Commercial properties (rhs) # Private properties (rhs) 2% 2% 1% 1% 5% 4% 3% 2% 12% 12% 11% 1% 2% 2% 21% 21% 25% 25% 26% 27% 36% 37% 37% 38% 8% 75% 7% 65% % 6% Q1 214 Q1 215 Q1 216 Q1 217 %-2% 2%-4% 4%-6% 6%-8% 8%-1% >1% Avg. LTV (rhs.) 5 45 4 35 3 25 2 15 1 5 24

Bank loans: the portfolio Portfolio composition end of Q1 217 Corporates 56% Private individuals 39% Public authorities 5% Accumulated impairment ratio total portfolio 3.6% Public authorities % Corporates 5.% Private individuals 2.1% Corporates Net reversals on most sectors, in Q1 217 also minor reversal on agriculture Finance and insurance accounts for the largest reversal, DKK 47m Impairment ratio for Q1 217-9bp Q1 217 Loans, advances and guarantees Balance of loan impairment charges Losses Impairment charges Public authorities 5.2%.%.%.% Agriculture, hunting, forestry and fishing 4.3% 26.9% 39.1% 6.7% Manufacturing, mining, etc. 5.1% 3.9% 5.% 15.3% Energy supply 3.2%.6%.% -.4% Building and construction 2.% 1.9% 8.5% 9.9% Commerce 7.% 2.9% 6.7% -.6% Transport, hotels and restaurants 1.6% 1.9% 5.5% -14.% Information and communication.6%.8%.% 34.5% Finance and insurance (ex repo loans) 18.4% 15.6%.9% 52.5% Real property 1.2% 19.6% 12.9% -8.% Other sectors 3.6% 3.5%.2% 8.7% Corporate clients 56.1% 77.6% 78.8% 14.8% Private individuals 38.6% 22.4% 21.2% -4.8% Total 1.% 1.% 1.% 1.% Note: Bank loans, advances and guarantees excl. repo loans Private individuals Impairment ratio for Q1 217 1bp Low number of new defaults 25

DKKbn Improved credit quality Only minor changes between customer segments in bank loan portfolio the past 3 years Improved credit quality within segments: Retail: 66% in STY 1-5 rating classes end of 216 vs. 63% end of 213 Commercial: 63% in STY 1-5 rating classes end of 216 vs. 6% end of 213 Improvements reflect the moderate upturn in the Danish economy: moderate economic growth, low interest rates, real wage increase, rising house prices, etc. Bank loans excl. repo loans 18 16 14 12 1 8 6 4 2 Q1 214 214 Q1 217 Public authorities Personal clients Commercial clients Retail portfolio distributed by internal rating classes 35% 3% 25% 2% 15% 1% Commercial portfolio distributed by internal rating classes 35% 3% 25% 2% 15% 1% 5% 5% % 1 2 3 4 5 6 7 8 9 1 11 12 13 14 % 1 2 3 4 5 6 7 8 9 1 11 12 13 14 31.12.216 31.12.213 31.12.216 31.12.213 26

General legal disclaimer This presentation and the information contained therein is furnished and has been prepared solely for information purposes by Jyske Bank A/S. It is furnished for your private information with the express understanding, which recipient acknowledges, that it is not an offer, recommendation or solicitation to buy, hold or sell, or a means by which any security may be offered or sold The information contained and presented in this presentation, other than the information emanating from and relating to Jyske Bank A/S itself, has been obtained by Jyske Bank A/S from sources believed to be reliable. Jyske Bank A/S can not verify such information, however, and because of the possibility of human or mechanical error by our sources, Jyske Bank A/S or others, no representation is made that such information contained herein is accurate in all material respects or complete. Jyske Bank A/S does not accept any liability for the accuracy, up-to-dateness, adequacy, or completeness of any such information and is not responsible for any errors or omissions or the result obtained from the use of such information. The statements contained herein are statements of our nonbinding opinion, not statement of fact or recommendations to buy, hold or sell any securities. Changes to assumptions may have a material impact on any performance detailed. Historic information on performance is not indicative of future performance. Jyske Bank A/S may have issued, and may in the future issue, other presentations or information that are inconsistent with, and reach different conclusions from, the information presented herein. Those presentations or the information reflect the different assumptions, views and analytical methods of the analysts who prepared them and Jyske Bank A/S is under no obligation to ensure that such other presentations or information are brought to the attention of any recipient of the information contained herein Nothing in this presentation constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation to you. This presentation is intended only for and directed to persons sufficiently expert to understand the risks involved, namely market professionals. This publication does not replace personal consultancy. Prior to taking any investment decision you should contact your independent investment adviser, your legal or tax adviser, or any other specialist for further and more up-to date information on specific investment opportunities and for individual investment advice and in order to confirm that the transaction complies with your objectives and constraints, regarding the appropriateness of investing in any securities or investment strategies discussed herein Jyske Bank A/S or its affiliates (and their directors, officers or employees) may have effected or may effect transactions for its own account (buy or sell or have a long or short position) in any investment outlined herein or any investment related to such an investment. Jyske Bank A/S or its affiliates may also have investment banking or other commercial relationship with the issuer of any security mentioned herein. Please note that Jyske Bank A/S or an associated enterprise of Jyske Bank A/S may have been a member of a syndicate of banks, which has underwritten the most recent offering of securities of any company mentioned herein in the last five years. Jyske Bank A/S or an associated enterprise may also have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the entities mentioned herein or may be providing, or have provided within the previous 12 months, significant advice or investment services in relation to the investment concerned or a related investment Any particular security or investment referred to in this presentation may involve a high degree of risk, which may include principal, interest rate, index, currency, credit, political, liquidity, time value, commodity and market risk and is not suitable for all investors. Any securities may experience sudden and large falls in their value causing losses equal to the original investment when that investment is realized. Any transaction entered into is in reliance only upon your judgment as to both financial, suitability and risk criteria. Jyske Bank A/S does not hold itself out to be an advisor in these circumstances, nor does any of its staff have the authority to do so. 27