Jyske Bank reports stable Q1 earnings amid economic uncertainty

Published 07/05/2025, 06:46
Jyske Bank reports stable Q1 earnings amid economic uncertainty

COPENHAGEN - Jyske Bank, Denmark’s third-largest bank, reported a slight increase in earnings per share in the first quarter of 2025 despite facing lower short-term interest rates. The bank’s earnings per share rose to 19.4 Danish kroner, up from 19.0 kroner in the same period last year.

The bank’s core income decreased by 6% to 3.229 billion kroner compared to 3.430 billion kroner in the first quarter of 2024, attributed to a decline in net interest income after the Danish central bank’s deposit rate averaged 2.36% in the first quarter, down from 3.60% a year earlier. However, net fee and commission income showed a positive trend, increasing by 20% due to a rise in assets under management and customers opting for the bank’s investment products.

Operating costs saw a 2% drop, influenced by a reduction in staff numbers and lower contributions to the resolution fund under Financial Stability, partially offset by contractual wage increases of 3.7% and inflation. The bank also noted a decrease in one-off costs related to the acquisitions of Handelsbanken Denmark and PFA Bank after completed integration processes.

Impairment charges remained low at 66 million kroner compared to 82 million kroner in the previous year. The bank has increased its management judgment regarding impairments by 87 million kroner to 1.9 billion kroner to address heightened macroeconomic uncertainty.

Jyske Bank’s capital position remains robust following the implementation of Basel IV standards. The bank reported a core capital ratio of 15.7% at the end of the first quarter of 2025, with a total capital ratio of 20.9%, in line with targeted ranges.

In light of these results, Jyske Bank has made strategic advancements, including enhancing the customer experience by making all relevant information about meetings with the bank available in online and mobile banking, introducing AI assistants, and making artificial intelligence accessible to all employees. Business customers also benefited from new features in online banking, such as modules for financial and risk management.

The bank has seen a significant increase in customer satisfaction over the past year, with private customer satisfaction showing one of the largest increases among Danish banks and exceeding that of comparable institutions. Jyske Bank now has the country’s most satisfied private banking customers, with satisfaction also rising among business clients.

Looking ahead, Ingjerd Blekeli Spiten will join the bank’s executive board as bank director, responsible for Private and Wealth Management, starting June 1, 2025, succeeding Niels Erik Jakobsen, who is retiring after nearly 38 years at Jyske Bank.

This news article is based on a press release statement from Jyske Bank.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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