Jyske Bank (JYSK) Q2 2025 earnings summary

Executive summary

• Earnings per share rose 1% year-over-year in Q2 2025, reaching DKK 39.4 for H1, the highest to date, despite lower short-term interest rates.

• Customer satisfaction reached record highs across private, corporate, and personal banking, with private banking ranked #1 in Denmark for 10 consecutive years.

• Credit quality remained robust, with reversals in impairments, reduced Stage 3 exposures, and higher post-model adjustments.

• Capital position strengthened, with CET1 ratio at 16.3%–17% and significant excess capital above targets.

• Strategic focus on operational optimization, digitalization, and sustainable customer solutions advanced, including office consolidation for cost savings.

Financial highlights

• Return on tangible equity was 11.5% in Q2 and 11.3% for H1 2025; return on equity (annualized) was 10.5% for H1.

• Cost/income ratio at 51% in Q2 and 49% for H1; cost of risk saw reversals at -2 basis points.

• Net profit for Q2 2025 was DKK 1,281m, with H1 net profit at DKK 2,537m.

• Net fee and commission income increased 14% year-over-year, driven by higher AUM and mortgage activity.

• Core expenses rose 1–3% year-over-year, including one-off costs from office consolidation.

Outlook and guidance

• 2025 net profit is expected at the upper end of DKK 3.8–4.6bn, with EPS at the upper end of DKK 60–73.

• Core income projected to decline further in 2025 due to lower net interest income, while core expenses are expected to be slightly higher.

• Loan impairment charges anticipated to remain low, supported by robust credit quality and post-model adjustments.

• Management notes increased pressure on NII due to limited room for further deposit rate reductions and higher funding costs.

• Guidance is subject to macroeconomic and financial market uncertainties.