Earnings call transcript: Jyske Bank Q3 2025 Earnings Beat Forecasts, Stock Gains

Jyske Bank reported robust financial results for the third quarter of 2025, significantly surpassing market expectations. The Danish financial institution posted an earnings per share (EPS) of DKK 30.2, well above the forecasted DKK 19.34, marking a surprise of 56.15%. Revenue reached DKK 3.44 billion, exceeding the anticipated DKK 3.27 billion. Following these positive results, Jyske Bank's stock rose by 1.4% in pre-market trading, with shares priced at DKK 760, up from DKK 749.5.

Key Takeaways

• Jyske Bank's EPS and revenue both exceeded forecasts, indicating strong financial health.
• The bank upgraded its full-year net profit outlook to between DKK 4.9 billion and DKK 5.3 billion.
• The stock price increased by 1.4% in pre-market trading, reflecting investor confidence.
• The Danish economy remains resilient, supporting Jyske Bank's performance.
• Jyske Bank maintains a strong position in corporate and SME banking.

Company Performance

Jyske Bank demonstrated solid performance in Q3 2025, with a net profit of DKK 1.455 billion and a 7% year-on-year growth in EPS. The bank's return on tangible equity stood at 12%, and its cost-income ratio was maintained below 50%. In the context of a resilient Danish economy, characterized by strong labor markets and stable inflation, Jyske Bank continues to leverage its robust market positioning.

Financial Highlights

• Revenue: DKK 3.44 billion, exceeding forecasts by 5.2%
• Earnings per share: DKK 30.2, surpassing expectations by 56.15%
• Net profit: DKK 1.455 billion
• Return on Tangible Equity: 12%
• Cost-Income Ratio: Below 50%

Earnings vs. Forecast

Jyske Bank's actual EPS of DKK 30.2 outperformed the forecasted DKK 19.34, resulting in a significant surprise of 56.15%. This strong performance marks a positive deviation from previous quarters, where earnings were more aligned with market expectations.

Market Reaction

Jyske Bank's stock experienced a 1.4% increase in pre-market trading, reaching DKK 760. This movement reflects investor optimism following the earnings announcement. The stock's performance is notable given its proximity to the 52-week high of DKK 777.5, suggesting continued investor confidence in the bank's future prospects.

Outlook & Guidance

The bank has upgraded its full-year net profit outlook to a range of DKK 4.9 billion to DKK 5.3 billion. Jyske Bank expects its net interest income to stabilize in the coming quarters and maintains its capital distribution strategy with a 30% cash payout. The bank's full-year EPS guidance is set between DKK 77 and DKK 84.

Executive Commentary

CEO Lars Mapper highlighted the bank's strong performance, stating, "We've had a strong 2025 so far, reaching our highest earnings per share for the first three quarters of a year." Mapper emphasized the bank's focus on maintaining solid relationships, adding, "We are running a relationship bank that we want to see solid also going forward."

Risks and Challenges

• Potential market saturation in the Danish banking sector.
• Macroeconomic pressures, including potential changes in ECB rate policies.
• Competition from potential mergers within the industry.
• The impact of wage agreements increasing costs by 2.5%.
• Technological advancements necessitating IT platform consolidations.

Q&A

During the earnings call, analysts inquired about the potential merger between Bank Data and BEC platforms, to which Jyske Bank expressed a neutral stance. The bank also addressed questions regarding opportunities for acquiring business clients, indicating openness to strategic acquisitions if they arise.

Full transcript - Jyske Bank A/S (JYSK) Q3 2025:

Simon Howard, Investor Relations, Jusco Bank: Hi, everyone. Thank you for joining us on Bank's conference call for the financial results for the 2025. This is Simon Howard from Investor Relations speaking. With me, I have Yuske Bank CEO, Lars Mapper and CFO, Bjorn Nielsen. Lars and Bjorn will walk you through our prepared remarks.

Afterwards, we will open up for questions. I will now hand over to Lars.

Lars Mapper, CEO, Jusco Bank: Thank you, Simon. I would also like to welcome you to our conference call for Q3 twenty twenty five. I know that our figures have been awaited with somewhat less anticipation than normally. And in that light, I'm extra pleased that you've decided to spend time with us here. We've had a strong 2025 so far, reaching our highest earnings per share for the first '3 quarters of a year.

This builds on the positive momentum from recent quarters with earnings per share growing 7% year on year in Q3 despite the backdrop of significantly lower short term interest rates. Based on this positive development, we have upgraded our earnings outlook for 2025, now targeting a net profit of between DKK4.9 billion and DKK5.3 billion. We're also making progress on key initiatives with focused cost management while improving both personal business and corporate customer satisfaction significantly. Higher customer satisfaction affects customer flows, and the number of personal private banking and business clients have improved during the last year. The outlook is for balanced development for the Danish economy and a stabilization of short term interest rates.

Additionally, credit quality remains very solid with a continued low level of loan losses and a significant post model adjustments in place in order to mitigate potential repercussions of the elevated geopolitical uncertainty. Overall, our results put us in a healthy position as we look to further strengthen our momentum. With that, let me hand over to you, Bjorg, for a walkthrough of our financial results.

Bjorn Nielsen, CFO, Jusco Bank: Thank you, Lars. And as you can see, the strongest quarter we delivered in the last seven quarters was here in Q3 with an earnings per share of DKK0.23 and simultaneously with lower short term interest rates as already mentioned. If I look at JUSKER Bank at a glance here, return on tangible equity 12%, well above the 10% mark in the long term, cost income ratio well below 50% and cost of risk just around zero basis points actually for several quarters now in a row. And the CET1 ratio at 16.2%, a small dip from Q2 due to higher market risk, operation risk and credit risk, the latter due to higher mortgage lending and property lending. And so inclusive of a reservation for capital distribution of 71%, we end up at 16.2% this quarter, still well above our long term targets.

If you look at the bottom in the middle, you can see that the P and L statement demonstrates that the NII line is now only dropping 1% from Q2 to Q3, so actually a bit more stable now than we have seen in the former quarters. Then fee and commission income continuously grow and remain strong both over the quarter and over the year. We still see strong value adjustments, cost is under control and we deliver as we say, as we mentioned DKK1.455 billion net profit in the quarter. At the right hand side, you can see that business volumes is somewhat well, it differs a bit because the AUM is on the rise steadily going quarter by quarter, whereas property lending is also rising steadily on a quarterly basis around 1%. And bank lending is a bit more subdued with a drop of 1% here in the quarter.

Deposits stable going from Q2 to Q3. Looking at the expectations, we lifted our expectations on the October 9 and 2025 actually could end up being the second strongest year in history. And we now expect DKK 77 to 84 per share. And we also adjust our expectations for core expenses where we now state that there will be approximately stable in 2024 versus 2025 due to slightly lower cost hereafter Q3 relative to last year. Moving on to the OEM development.

As I said, steady going. We have seen net inflow of customers and positive financial markets again this quarter, leading to a 2% lift quarter over quarter and 7% over the year. And that is inclusive of the market setback we saw back in Q1 of this year. Looking at the underlying deposits base, we have been able over the last year also to grow the stable part of deposits with now 5% higher level here in Q3 versus last year, which is more in line with our market share. And now more than 90% of our deposit base is what is characterized as stable deposits.

If we take a glance at the economy, we are operating in a Danish economy that is very resilient, strong labor market, historically high employment, stable inflation. And actually, we have since 2019 outpaced the EU growth. And if you take the layoffs in Novo, as an example, it is less than 0.2% of Danish employment. So we are in a very steady environment and also despite the geopolitical uncertainty that we still see around us. Moving on to short term interest rates.

We now expect no further rate cuts from the ECB. And our net interest income expects to bottom out within the next couple of quarters. And the reason for that is primarily due to some bond issuances both liquidity and capital issuances here also in Q3. And of course, if we look into and when we look into 2026 much depends upon the volume development in that year. When we see on the next slide, the development in value adjustments, you can see that over several years, we have been able to actually lift the level of value adjustments in average to a level around €900,000,000 per annum.

And that actually includes the sharpest interest rate increase in decades in 2022, 2023, but also the sharpest a very sharp rebound in 'twenty four, 'twenty five. And if we look at the composition of the value adjustments, approximately 80% is customer driven and the rest is placing of excess liquidity and our sector shares that are needed to support our business. Moving on to costs. As you can see since the acquisition of Handelsbanken, Denmark and PFA Bank, we have had very steady costs. The costs are actually down 2% year over year in the last four quarters, but the underlying we see an increase of below 1% adjusted for one offs.

We still of course see inflation present in all areas of the group. Wage agreements are up 2.5%. And please bear in mind that Q3 was a slim quarter when we look at costs and we expect slightly higher Q4 numbers. And therefore, we state now that '25 is expected to be approximately at the same level as '24. Then moving to the last slide, I will comment on upon now is our credit quality.

And actually, the story is very much the same as we have seen in former quarters, a very stable portfolio. Stage three exposures are up from sorry, are down from 1.2% to 1% over the year. Stage one exposures, the very strong part of the portfolio has grown from 95% to 95.8% over the year. And management estimates or post model adjustments are at DKK 1,900,000,000.0 unchanged from Q2. And still we see a very low level of write offs.

So all in all, very strong portfolio, low impairments and very low write offs in the book. And I think that concludes our initial remarks.

Simon Howard, Investor Relations, Jusco Bank: Yeah, and we will now open up for questions. The first one in line comes from the line of Matthias Nietzsche Nordea. Please go ahead.

Matthias Nietzsche, Analyst, Nordea: Thank you very much and thank you for taking my questions as well. So on the first one, I know you can't comment much on the or you probably won't comment much on the AL Sudbank merger. However, I find it quite interesting that if memory serves me right, you actually had an acquisition of Handelsbank, which was on the BEC platform versus you being on the bank data platform. So I guess you have some run rate cost comparison like how does that look like when you acquire the Handelsbank, the BC run rate cost? How does that look compared to the bank data run rate cost when you take it from a high level perspective?

Lars Mapper, CEO, Jusco Bank: Yeah. Hi, Matthias, Lars here. And thanks a lot for your question. As you rightly say, there are things that I can comment on and things that would not be appropriate for me to comment on. The situation with Hansbanken was a situation where we got quite a bit of synergies of moving it to bank data.

And in our view, bank data is a very strong suitable platform for the business model that we have with quite a bit of business and SME clients and the markets operations. So, we actually had quite a bit of synergies moving in that direction.

Matthias Nietzsche, Analyst, Nordea: Okay. That was my first question. And then second question on capital distribution side, you seem to be a bit overcapitalized, some would argue probably, especially among the equity investors. So when thinking about capital distribution for this year, is there anything holding you back from 100% payout rate? Is there anything on timing of buyback application or something like that, that could hold you below 100%, let's say 90% or something like that.

Is there anything we should any details that we need to keep in mind when

Simon Howard, Investor Relations, Jusco Bank: we're looking at such things?

Lars Mapper, CEO, Jusco Bank: Yes, that's a very good question, a very appropriate question to ask. I'm happy that our capital buildup is strong at the moment. We stick to our plan of 30% cash payout and the rest within our possibilities and still keeping a strong capital position. We will have share buybacks. The share buybacks will normally be done based on an application to the FSA quite a bit earlier than the yearly result.

And for that reason, it's not possible for us to apply based on the full year result. So that could hold us back.

Matthias Nietzsche, Analyst, Nordea: Okay. So in terms of Q3, is that included or with now it's almost getting too detailed, but like given the strong result on trading income, I think it's probably relevant to ask if we should assume the Q3 results to be reflected in the application or we should assume that will be not reflected in the application that you may have said or may not have said?

Lars Mapper, CEO, Jusco Bank: It's difficult for us to get into a lot more details on this one here, Matthias, because we are doing our application according to the rules here and that's quite a bit earlier than the yearly result.

Matthias Nietzsche, Analyst, Nordea: Okay. Thank you. And then the last question that I have on cost. You also highlight that Q3 was a slim quarter on cost and now it's maybe a bit less on the year on year improvement versus last year in Q4. What should we think about 26%?

Is it fair to assume that you can keep this stable cost trend into 26%? Or is there anything that we should be particularly aware of? I guess you had some one off related to the new premises that we can easily take out of next year. How should we think about it?

Bjorn Nielsen, CFO, Jusco Bank: Yes. Thank you very much, Matthias. The cost base in 'twenty five is will approximately be the same level as 'twenty four, all inclusive that I. E, one off items as well. And you're quite right that there were some one off items both in 'twenty two, 'twenty three, 'twenty four and also this year that will run off and not be part of the equation in 'twenty six.

We have said that we will try to the extent possible to keep cost as flattish as possible given the market conditions according to our strategy, and that still applies. But also please be aware that we have inflation pressure present, as I said before, all areas of the group that still applies, and we expect that also to be the case in 'twenty six.

Matthias Nietzsche, Analyst, Nordea: Thank you. That was my question for now.

Simon Howard, Investor Relations, Jusco Bank: Thank you, Matthias. Next question in line comes from the line of Martin Bierck from SEB. Please go ahead.

Martin Bierck, Analyst, SEB: Thank you so much. Lars, you also happen to be the you also happen to sit at the Board in Bank Data. And if Sudbank manages to bring AL Bank and investors to Bank Data, would revenues in Bank Data still need to be 2,000,000,000?

Lars Mapper, CEO, Jusco Bank: I think if we get benefit of more volume at the bank data, we would be able to run that more efficiently. There's not a lot of extra cost adding an extra bank to it.

Martin Bierck, Analyst, SEB: And revenues will also need to be 2,000,000,000 if we assume that or if we play with the scenario that Schutzbank is going to be

Lars Mapper, CEO, Jusco Bank: I think the cost of running a bank is divided on an IT platform is divided into development and running the bank basically. And the development will not change a lot. And a lot of the run the bank will be on the JN data Okay. And and for the individual bank. Okay.

Martin Bierck, Analyst, SEB: Okay. Very clear. Alright. Thanks. That's, I guess that's it for for me for now.

Simon Howard, Investor Relations, Jusco Bank: Thank you, Martin. Next question comes from the line of Namita Samtani from Barclays. Please go ahead.

Namita Samtani, Analyst, Barclays: Good afternoon, and thanks for taking my questions. My first one, the commercial real estate systemic risk buffer, like the decrease in the proposal, how much of an impact would that be for you?

Bjorn Nielsen, CFO, Jusco Bank: Yeah, well, we see you're quite right. There is a relief in the CRE buffer, they have lifted the LTV band that is excluded from extra fee and payment. It is a small relief relative to the full exposure or for the full payment that we have today and the buffer we had to reserve today. So we expect a small relief in Q4. And then also be aware that we also in the slide deck mentioned that we could see a slight inflation in the REA numbers in Q4, because when we implement new models, there is an initial conservative attitude from us and the FSA because when we implement a new model, there are still some reservations that will gradually be taken off, but only gradually due to dialogues with the FSA on formal occasions.

So there could be a slight inflation in the REA numbers despite the relief from the CRE buffer in Q4.

Namita Samtani, Analyst, Barclays: Okay. And then my second question, you said net interest income will trough in the next couple of quarters, and that's because there are some bond issuances. But what what are these exactly, and what's the quantum of the headwind, and why is it that volume growth cannot offset these?

Simon Howard, Investor Relations, Jusco Bank: Yep. So we we did some issuances in in q four oh, sorry, in in q three, which we'll see the full quarter effect from in in in q four. It it it's not going to be a material headwind, but I can't remember the exact figure. We did a t two issuance of €500,000,000. And on top of that, we we also recently did a nonpreferred senior issuance of a €100,000,000.

I can come back to you with the specific figures if you would like that, Marisa.

Namita Samtani, Analyst, Barclays: That's helpful. And my final question, the AL Citibank merger. I just wondered what your thoughts were on how this impacts the wider Danish banking market. Do you have any initial thoughts? Like, is this positive?

Is this negative? And particularly on corporate, because when I read the press release, they were very specific on being competitive in the corporate space.

Lars Mapper, CEO, Jusco Bank: Yes. Thanks a lot for that question. I think it's fairly neutral from a UscoBank perspective in the sense that it is a personal customer bank going together with an SME bank and a smaller local bank, three banks going together. It doesn't really change a lot from our perspective in the market space because basically in cities today, are up against three banks. That would be one bank going forward.

They are each of them good and strong in their own areas. But we don't see a lot of new things being added in terms of capabilities or volume when it comes to the business and corporate side here. So I think it's fairly neutral from our perspective looking at the market space. We are standing with a very strong value proposition and will, by far, still be altogether a bigger bank lending wise in the corporate and business space.

Namita Samtani, Analyst, Barclays: Thanks. Sorry, just one small question. Given that these three banks will be quite busy merging together, if there's any attrition, are you ready to take on any clients from that space?

Lars Mapper, CEO, Jusco Bank: Yes. We are running a relationship bank that we want to see solid also going forward. If there are possibilities in the market and it's on our acquisition list, the business clients who would like to talk to us, we will talk to them, obviously, no matter if they come from the one or the other bank. So, are open for business, obviously, with strong and good clients.

Namita Samtani, Analyst, Barclays: Thank you.

Simon Howard, Investor Relations, Jusco Bank: Thank you, Namita. Next question comes from Esperanza from Danske Bank. Please go ahead.

Esperanza, Analyst, Danske Bank: Thank you and good afternoon. A little bit on the same topic of last question. If I look at your strategy from last year, basically a year from ago, you basically emphasized mid sized businesses and selective large corporate institutional clients as the main focus area in the new strategy period. And I guess that made a lot of sense when you were the sort of the only real alternative to the two largest banks in the Danish market. I guess the market has changed quite a lot.

I do appreciate your comment Lars on AL being more retail. But one of the things that at least Schutzbank is saying is that they will double their balance sheet. They be able to underwrite full lines. I have the same arguments for New Credit after they acquired Spanor. At least there's something from the competitor point of view that seems to indicate that the three bank market has become a five bank market.

So I was wondering if you see any changed behavior from spun or sorry, from Nuclear at this stage? And if you have seen or will or if can anticipate sort of a changed behavior from Schutzbank on the back of this?

Lars Mapper, CEO, Jusco Bank: I think they're all strong competitors today. And I think from the nitrate perspective, we don't see a change here. So far, it's also early days. But I think nitrate has had a big and strong balance sheet also prior to this acquisition. And I don't think it changes a lot from their perspective.

They were able to underwrite big credits before and normally. And I don't know the internal policies within iCredit, obviously. But I think they were able to underwrite credits of a size where you normally have a single name concentration cap in most banks. That's at least what we see across banks when we do underwrite credit for larger companies, that there's a limit to how big you want a single name credit, no matter how big your balance sheet is. And then in terms of Sultan, it would be early days.

They would have a little bit bigger balance sheet. They don't have mortgage products inside in house now, which is basically where the other banks have been growing in volumes. That is when they're able to do a combined advisory combined bank products and mortgage products. That's a feature in the Danish market. Even the very large companies, they prefer to have a balance here with both products in.

Esperanza, Analyst, Danske Bank: All right. Then if I look at the sector statistics, it seems like there is still quite good credit demand in corporate space. I do acknowledge that Q over Q bank lending on the corporate space is down slightly and I guess your numbers reflect some of the same. But if you could just touch a little bit upon or shed some light on where the corporate demand is derived from? Is it within the larger corporates?

Is it within SMEs? Are you beginning to see changed demand across or any sort of impacts from the German package, etcetera, anything that starts to move?

Lars Mapper, CEO, Jusco Bank: We've seen a remarkably stable business and corporate segment within our bank during the last year. If we look at the market, we would see quite a bit of the growth in terms of numbers comes from major mergers and acquisitions among the very largest businesses and some bridge financing and so on, which is normally not the territory of our bank. When it comes to the SMEs, fairly stable development here and not a lot of extra credits volume this year. We are in a very stable situation. We just calculated recently that with the churn rate that we've seen lately, it means that our customers on average, the SME customers on average will stay with us forty five years.

Obviously, we don't know that for sure. But if you look at the raw figures now and you do the math, then that would imply that the customers will stay with us.

Esperanza, Analyst, Danske Bank: Just if I may follow-up. You said that the demand is from the largest corporates. Isn't that the area that you wanted to tap into a year ago? Or is it a little bit of a more of a niche market? It's a little

Lars Mapper, CEO, Jusco Bank: bit more of a niche market. So, what we do is some different products and financing for some of the very largest companies, including the very largest in the country here also. But if you have the biggest cross border companies and they do bridge financing on major acquisitions, we are part of that to a limited extent and predominantly where we have a relationship with the customer.

Esperanza, Analyst, Danske Bank: Thank you.

Simon Howard, Investor Relations, Jusco Bank: Thank you, Esther. Next question comes from Martin Bier from SEB. Please go ahead.

Martin Bierck, Analyst, SEB: Thank you so much. Maybe I'll just follow-up on my bank data questions before. Lars, can you please help me unpack the toolbox? So what kind of levers can you pull in order to make the bank data offering attractive for the part of ELC Bank that is not already on bank data today beyond, of course, having the best product in the market?

Lars Mapper, CEO, Jusco Bank: Yes. Can to some extent, but I also think that you would appreciate that this coming down to a negotiation. And I think if we play out all our cards here, that would be wrong. So allow me to comment on this a little bit, but not in great detail. So there's a pure quality that they would obviously consider of the IT solutions.

And basically, I don't think there are weak data platforms out there. So it's strong platforms that they're considering. From our perspective, we think that the one that we are on is in particular strong when it comes to business and corporate clients. And we think the setup is strong when it comes to supporting the markets business, which is part of our business and some other banks' business also. We think we are in a very good development within bank data, and that has accelerated within the last year or two, and that the cooperation on a daily basis is strong.

And then I think what we can do is, obviously, we can discuss the future plans of the platform here to make sure that what we come with is the most compelling offer. There's also something that is related to speed. So when can we do the migration? I think that will be of great importance to AL, Sudbank. And there's a number of quality things that we can do.

Martin Bierck, Analyst, SEB: Okay. As a in your position as CEO of Husqe Bank and also sitting at the Board and the Bank Data, would you like to see that Bank Data and BEC merged?

Lars Mapper, CEO, Jusco Bank: I think what we have discussed across the industry many times is what is the right number of data platforms. On the one hand, you would probably want more than one, do you want two or three? That's up for debate. What we will do is what makes sense, both short and longer term, and we would not be the last one who would wish to do mergers of platforms. But I don't envisage any of that within the next year or two.

But there's a number of things that need to be right before that is potentially done. We've been one of the banks who are not against that in the past, and that will also be the future. For now, we are very pleased with the platform that we're on. We believe that that's the strongest platform for us. And I'm confident that we'll be in a good position also a year and two down the road.

Martin Bierck, Analyst, SEB: Okay. So if we go back to my first questions about the DKK2 billion in revenues, and we assume that and sort of try to play on your stance of being a pro merger, do you think that if you move all the banks to bank data and you completely write off the BEC system just as a theoretical thing.

Matthias Nietzsche, Analyst, Nordea: Do you think that you could still run bank data

Martin Bierck, Analyst, SEB: around €500,000,000 in revenues once everything is migrated and done and dusted? Is that a fair way of seeing it?

Lars Mapper, CEO, Jusco Bank: So,

Martin Bierck, Analyst, SEB: basically, your IT cost to bank data would be half?

Lars Mapper, CEO, Jusco Bank: Yes. I don't want to comment on if it would be half or if it would be 60%, but it would be quite a bit lower. I think the thing that has been holding back banks from doing this in the past is the transition and the cost of the transition. There's no doubt that there'll be major synergies for all banks if that was done on the little bit longer term. What has also made us hesitate is that there's quite a bit of pressure on bringing new things to the market and not the least, working on the stability and the resilience of the IT platforms.

So, you have a number of tasks that each of the platforms are doing at the moment that you need to do in order to be confident that you have a resilient and strong platform. And you cannot postpone that for four or five years while you do a merger of these platforms. And that is what, to a large extent, is complicating this.

Martin Bierck, Analyst, SEB: Okay. Thanks, Lars.

Simon Howard, Investor Relations, Jusco Bank: Thank you, Martin. And next question comes from Esperan Marek from Danske Bank. Please go ahead.

Esperanza, Analyst, Danske Bank: Yes. Thank you. It was actually a little bit on the same topic as Martin, but let me ask you a little bit differently then. So Lars, if you look at the complexity of merging bank data and BEC, just trying to grasp a bit here how complex that task would be, what kind of cost it would involve? Because I guess now Schutzbank, it seems, want to to play out bank data and BEC and see who who who will offer the best the best terms.

And I guess losing this bank is going to be devastating for whatever IT platform that will lose. But I guess there's also a winner's curse here in terms of offering to attractive terms. So do you think that the exit cost that SchuttBank or AL would have to pay, would that cover the sort of extra cost if you were to do a full integration of the two IT systems? Is that do you have any sort of view on that?

Lars Mapper, CEO, Jusco Bank: I think the cost will probably be bigger for a full integration, but the benefit and the benefit will come later.

Esperanza, Analyst, Danske Bank: How much bigger you think?

Lars Mapper, CEO, Jusco Bank: It depends on the model. It's a philosophical question because those negotiations aren't ongoing. But it's a philosophical question and it's also based on the decision that will be made. There's no doubt that the cheapest way of doing it would be to decide on one of the IT platforms and migrate the banks on the other platform onto that platform. Many times, I think when you have negotiations like that, every platform would like to come with 50% or their share of subsystems.

And that would be extremely expensive and that would be complicated. So it also depends on model.

Esperanza, Analyst, Danske Bank: But if you were to, let's say, migrate BC into bank data, just migrate the banks onto that? Would that be covered by that cost, you think?

Lars Mapper, CEO, Jusco Bank: Think I should respond differently. I think any cost that the banks would have doing this upfront, there will be savings coming in the fairly near future that will pay this off fairly soon. So that will not be a ten year thing.

Esperanza, Analyst, Danske Bank: And considering the scalability that you just answered on one of the previous questions, I guess at the end of the day, for bank data to lose, should bank would be an unacceptable outcome?

Lars Mapper, CEO, Jusco Bank: That's certainly not the outcome that we would anticipate. But there would be a number of different possibilities should that occur. And please remember, no matter if some of the banks are leaving BC or bank data here, there will be a payment at least two point five years and probably longer into the future, and some of the payment will be even larger than running as the systems do today. So, there'll be quite a payment and there'll be quite some time to consider your options and make a deal. I find quite a bit of comfort in the fact that I think our platform is very strong also compared to the alternatives out there.

So I'm fairly certain that bank data, the one way or the other, would be part of the future setup here.

Esperanza, Analyst, Danske Bank: All right. And then final question from my side. If I sort of look at the two major deals we've seen in the market the last year, I guess if you're a smaller bank in Denmark, you will all else equal feel a little bit less sure about your mortgage provider. And I guess this deal also the deal on Monday, I guess, shows that there is still uncertainties relating to IT that you're that's basically out of your control. Do you see any sort of changed behavior from the smaller banks in sort of in terms of sort of being a bit more unsure about the future and wanting to sort of secure their own destiny, so to speak?

Lars Mapper, CEO, Jusco Bank: Yes. Think a number of them, if not all, are considering to have a plan B. And I think most of them are discussing that heavily. And probably, we'll see some moves also in the next couple of years here.

Esperanza, Analyst, Danske Bank: And that also goes for mortgage provider? It could. It could. Okay. Interesting.

All right. Thanks a lot.

Bjorn Nielsen, CFO, Jusco Bank: Thank

Simon Howard, Investor Relations, Jusco Bank: Thank you, Aslan. And next question comes from Martin Bier from SEB. Please go ahead.

Martin Bierck, Analyst, SEB: Yeah. Thanks. And and sorry for my curiosity, Lars. Now that we have you here, I might as well just to give you a couple of more questions. You think that coming back to the bank data questions, do you think that once this AL Suitbank deal is done and dusted, you will, for the first time, have a defined big brother and a defined little brother in the Danish banking IT space.

Do you think that increases the probabilities of the two going together?

Simon Howard, Investor Relations, Jusco Bank: Of the two platforms?

Martin Bierck, Analyst, SEB: Yes. Hasn't that been I mean, hasn't that always been the problem that BEC and bank data have simply, in the past been too equal terms of size? All of a sudden, do have a defined little brother now and you will in the future also have a defined sort of big brother?

Lars Mapper, CEO, Jusco Bank: And Yes. I think there are three platforms out there. And I think if you look at the past, there have been you're normally a fairly direct person margin. You would say there's been a number of excuses for not merging the platforms. We would say that there's been a number of different reasons that that has not been done.

There are also reasons for not doing it now, not the least because from a regulatory compliance and and resilience perspective, there's a number there's a big number of investments in all of the platforms now to make sure to live up to future requirements. And you don't want to jeopardize that you're able to live up to that. So, I think that's the biggest hurdle here if discussions were to occur.

Martin Bierck, Analyst, SEB: Okay. All right. I guess we will continue our talks on these data platforms for the foreseeable future. But that's it for me for now. Thanks.

Lars Mapper, CEO, Jusco Bank: Yes. Maybe there's a solution one day.

Martin Bierck, Analyst, SEB: Let's hope.

Simon Howard, Investor Relations, Jusco Bank: Thank you, Martin. It seems as if there are no further questions in line. We would like to thank you for participating in today's conference call. A recording of the call will be made available on our IR website in the coming days. Please do not hesitate to contact us if you have any further questions.

We appreciate your interest in Newscobank, and wish you a nice day.

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