Vestjysk Bank (VJBA) Q1 2025 earnings summary

Executive summary

• Net profit after tax for Q1 2025 was DKK 175 million, down from DKK 252 million in Q1 2024, impacted by lower interest rates and higher costs.

• Net interest income fell to DKK 275 million, a decrease of DKK 38 million year-over-year, while fee income rose by DKK 13 million due to increased business activity.

• Operating expenses increased by DKK 13 million, mainly from higher personnel costs related to compliance and wage adjustments.

• Loan impairments amounted to DKK 18 million, compared to net reversals of DKK 51 million in Q1 2024.

• Return on equity after tax was 10.0% p.a., above the target of 9.0%.

Financial highlights

• Total income (basisindtægter) was DKK 495 million, down from DKK 525 million in Q1 2024.

• Operating expenses and depreciation totaled DKK 257 million, up from DKK 250 million year-over-year.

• Cost/income ratio was 51.9% (47.6% in Q1 2024); excluding market value adjustments, it was 60.7%.

• Net loans increased to DKK 21.4 billion from DKK 20.8 billion at year-end 2024.

• The bank’s balance sheet stood at DKK 48.3 billion at the end of March 2025.

Outlook and guidance

• Full-year 2025 net profit after tax is expected to remain in the DKK 600–800 million range, unchanged from previous guidance.

• Economic growth is expected to be limited, but increased activity from new strategy and customer inflow is anticipated.

• Geopolitical uncertainty and volatile financial markets contribute to higher-than-normal forecast uncertainty.