Jyske Bank (JYSK) Q2 2024 earnings summary

Executive summary

• Net profit for Q2 2024 reached DKK 1,337m, up 12% year-over-year, marking the strongest Q2 performance to date, supported by strong operating performance, positive financial markets, and continued client fund inflows.

• New organizational structure implemented in May 2024, anchoring all business areas in the Executive Board and focusing on efficiency, digitization, and risk management.

• Integration of PFA Bank completed, with ongoing realization of cost synergies from the Handelsbanken acquisition.

• High customer satisfaction, especially in private banking for the ninth consecutive year.

• Commitment to net zero CO2 emissions by 2050 and significant emission reductions since 2019.

Financial highlights

• Net profit reached DKK 1,337m in Q2 2024, up 12% year-over-year; earnings per share increased to DKK 19.8 in Q2, up 10% year-over-year.

• Core income grew 4% year-over-year to DKK 3,398m; core expenses also rose 4% year-over-year, including one-off acquisition costs.

• Net interest income down 2% from Q1 but up 5% versus H1 2023; fee income up 9% year-over-year, driven by higher asset management income and the PFA Bank acquisition.

• Loan impairment charges remained low at DKK 13m in Q2, with strong credit quality and significant post-model adjustments.

• Value adjustments contributed DKK 199m, mainly from tightening Danish mortgage bond spreads.

Outlook and guidance

• Now targeting the upper half of DKK 4.3–5.1bn net profit guidance for 2024; EPS expected in the upper half of DKK 64–76.

• Core income expected to be lower in 2024 than 2023, mainly due to lower value adjustments; core expenses slightly higher, partly offset by synergies and lower one-off costs.

• Loan impairment charges anticipated to be slightly higher in 2024.

• Capital targets and intervals unchanged; CET1 ratio target range maintained at 15%–17%, with a 30% dividend payout ratio and ongoing share repurchases.

• Guidance subject to macroeconomic and financial market uncertainties.