Vestjysk Bank (VJBA) Q2 2025 earnings summary

Executive summary

• Net profit after tax for H1 2025 was DKK 359 million, down from DKK 445 million in H1 2024, with a return on equity of 10.0% p.a.

• Loan portfolio grew by 4.7% (DKK 970 million), with over 3,000 new customers added.

• All financial targets met except for the cost/income ratio, which was 53.3% versus a target of 50%.

• Net interest income declined to DKK 561 million due to lower interest rates.

• Maintained strong credit quality with low loan impairments.

Financial highlights

• Net interest income for H1 2025 was DKK 561 million, down from DKK 623 million in H1 2024.

• Net fee and commission income increased to DKK 335 million from DKK 313 million year-over-year.

• Market value adjustments and dividends contributed DKK 133 million.

• Total operating income was DKK 989 million, with total costs at DKK 527 million.

• Cost/income ratio was 53.3%, above the target of 50%.

Outlook and guidance

• Full-year 2025 net profit after tax is expected in the range of DKK 600–800 million.

• Financial targets for 2025 include a minimum 9.0% return on equity after tax, cost/income ratio below 50, and core capital ratio of at least 16.0%.

• Guidance maintained despite increased uncertainty from geopolitical tensions and volatile financial markets.

• Dividend payout ratio targeted between 25% and 50% of annual net profit.