Jyske Bank (JYSK) Investor presentation summary

Executive summary and business environment

• Denmark's stable economy in 2025 featured low inflation, declining interest rates, and high employment, supporting continued growth despite global trade tensions and volatility.

• The credit portfolio showed resilience with low impairments and positive collateral trends; risk-weighted assets increased due to CRR III and updated rating models.

• Capital base was strengthened through market activities and strong financial performance, resulting in a CET1 ratio of 16.1% and total capital ratio of 21.5% at year-end.

• Dividend payout of DKK 1.5 billion and share buyback of DKK 3 billion were proposed, with leverage ratio at 5.4%, all above internal and regulatory targets.

Business model and risk framework

• The group offers banking, mortgage, leasing, pension, insurance, and asset management services, focusing on the Danish market and sustainability.

• Loans are primarily collateralized by real estate and funded by covered and mortgage bonds, aiming for AAA ratings.

• Financial risks, mainly credit risk, are assumed within set limits and require adequate collateral and risk-adjusted returns.

• Non-financial risks include operational, information security, outsourcing, and regulatory risks, managed through a comprehensive risk framework.

Risk management structure and reporting

• Risk management is overseen by an independent Risk unit led by the CRO, using a three lines of defense model.

• The Group Supervisory Board sets risk principles and policies, while the Executive Board manages day-to-day risk.

• Multiple committees oversee specific risk areas, including credit, liquidity, financial crime, crisis management, and data quality.

• Regular risk reporting includes ICAAP, ILAAP, and market risk reports, with stress testing and scenario analysis integrated into capital planning.