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Jyske Bank
Interim Financial Report
Q1 - Q3 2015
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 1 of 54
Interim Financial Report, first nine months of 2015
Management’s Review
The Jyske Bank Group
Summary
Comments by Management
First nine months of 2015
Loan impairment charges and provisions for guarantees and value
adjustments of acquired assets
Investment portfolio earnings
Banking activities
Mortgage activities
Leasing activities
Core profit and investment portfolio earnings
Capital structure and capital management
Liquidity management
Other information
3
4
4
5
11
13
14
16
18
19
20
21
23
Statement by the Executive and Supervisory Boards
Statement by the Executive and Supervisory Boards
25
Interim financial statements
Income statement and statement of comprehensive income
Balance sheet
Statement of changes in equity
Capital statement
Summary of cash flow statement
Notes
Jyske Bank A/S
26
27
28
29
30
31
46
Jyske Bank A/S
Vestergade 8-16
DK-8600 Silkeborg
Tel.: +45 89 89 89 89
www.jyskebank.dk
E-mail: [email protected]
Business Reg. No. 17616617
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 2 of 54
The Jyske Bank Group
CORE PROFIT AND PROFIT FOR THE PERIOD
DKKm
Net interest income
Net fee and commission income
Value adjustments
Other income
Income from operating lease (net)
Core income
Core expenses
Core earnings before impairment
Loan impairment charges
Core profit
Investment portfolio earnings
Pre-tax profit
Tax
Net profit or loss for the period
Index
15/14 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014
115
1,500
1,513
1,440
1,428
1,529
118
372
350
617
626
360
65
-251
536
-150
-250
132
6
60
68
52
78
172
117
22
27
19
20
19
75
1,703
2,494
1,978
1,902
2,212
102
1,321
1,294
1,338
1,341
1,297
51
382
1,200
640
561
915
31
30
24
327
717
398
58
352
1,176
313
-156
517
117
-26
125
189
-145
84
63
326
1,301
502
-301
601
521
76
305
109
-80
53
50
250
996
393
-221
548
The
year
2014
5,315
1,761
-42
3,074
78
10,186
5,231
4,955
1,953
3,002
101
3,103
14
3,089
Q1-Q3
2015
4,453
1,339
135
180
68
6,175
3,953
2,222
381
1,841
288
2,129
490
1,639
Q1-Q3
2014
3,887
1,135
208
2,996
58
8,284
3,890
4,394
1,236
3,158
246
3,404
94
3,310
SUMMARY OF BALANCE SHEET, END OF
PERIOD
DKKm
Loans and advances
- of which mortgage loans
- of which bank loans
- of which repo loans
Bonds and shares, etc.
Total assets
380,545
242,355
109,915
28,275
78,836
531,063
358,638
215,998
117,534
25,106
89,155
521,140
106
112
94
113
88
102
Due to credit institutions and central banks
Deposits
- of which bank deposits
- of which repo deposits
Issued bonds at fair value
Issued bonds at amortised cost
Subordinated debt
Equity
31,947
138,753
125,481
13,272
225,944
52,556
1,354
29,233
51,761
148,103
128,476
19,627
198,099
37,750
1,354
27,830
62 31,947 39,865 46,176 49,885 51,761 49,885
94 138,753 141,077 151,546 152,693 148,103 152,693
98 125,481 129,021 131,547 133,198 128,476 133,198
68 13,272 12,056 19,999 19,495 19,627 19,495
114 225,944 229,414 219,789 208,539 198,099 208,539
139 52,556 47,947 54,061 43,413 37,750 43,413
100
1,354
1,355
1,362
1,355
1,354
1,355
105 29,233 28,996 27,970 27,561 27,830 27,561
17.3
17.3
38.6
38.6
-
2.6
2.6
10.5
10.5
4.1
4.1
-2.3
-2.3
5.8
5.8
35.1
35.1
10.3
5.8
64.0
26.0
14.6
47.0
-
4.7
0.9
77.6
18.9
3.5
51.9
7.3
1.4
67.6
-6.9
-0.8
70.5
13.8
2.0
58.6
17.8
13.7
51.4
16.9
15.8
10.7
29,473
174,853
16.7
15.7
10.7
28,986
173,601
369
308
1.2
319
293
1.1
-
369
308
1.2
336
305
1.1
293
295
1.0
313
290
1.1
319
293
1.1
313
290
1.1
4,102
4,289
-
4,102
4,112
4,168
4,191
4,289
4,191
380,545
242,355
109,915
28,275
78,836
531,063
375,184
233,700
113,830
27,654
87,686
541,031
376,175
229,167
118,860
28,148
98,779
573,074
361,799
218,864
120,423
22,512
92,309
541,679
358,638
215,998
117,534
25,106
89,155
521,140
361,799
218,864
120,423
22,512
92,309
541,679
SELECTED DATA AND FINANCIAL RATIOS
Earnings per share for the period (DKK)
Profit for the period, per share (diluted) (DKK)
Pre-tax profit p.a. as a percentage of opening
equity
Profit for the period as a pct. of av. equity
Expenses as a percentage of income
Capital ratio (%)
Common Equity Tier 1 capital ratio (CET1 %)
Individual solvency requirement (%)
Capital base (DKKm)
Weighted risk exposure (DKKm)
Share price at end of period (DKK)
Book value per share (DKK)
Price/book value per share (DKK)
No. of full-time employees at end-period¹
16.9
17.1
16.3
16.4
16.7
16.4
15.8
16.1
15.3
15.3
15.7
15.3
10.7
11.0
10.7
10.9
10.7
10.9
- 29,473 30,177 29,206 28,990 28,986 28,990
- 174,853 176,979 178,841 176,433 173,601 176,433
BRFkredit has been included in the income statement as of 1 May 2014 and in the balance sheet as of the end of the second quarter 2014.
¹) In the third quarter of 2015, 29 Financial Management degree holders were hired.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 3 of 54
SUMMARY

Core income: DKK 6,175m (Q1-Q3 2014: DKK 5,924m excl. of bargain purchases of DKK 2,360m).

Pre-tax profit or loss: DKK 2,129m (Q1-Q3 2014: DKK 1,044m excl. of bargain purchases of DKK
2,360m).

The pre-tax profit corresponded to an annualised return of 10.3% on opening equity (Q1-Q3 2014: 6.0%
p.a. excl. of bargain purchases).

Value adjustments under core profit: DKK 135m (Q1-Q3 2014: DKK 208m).

Loan impairment charges under core profit: DKK 381m (Q1-Q3 2014: DKK 1,236m).

Loans and advances: DKK 381bn (End-2014: DKK 362bn).
o
Mortgage loans: DKK 242bn (End-2014: DKK 219bn).
o
Traditional bank loans and advances: DKK 96bn (End-2014: DKK 102bn).

Bank deposits: DKK 125bn (End-2014: DKK 133bn).

Capital adjustment


o
The launch of a share buy-back programme in the equivalent value of up to DKK 500m.
o
It is the intention, at the Annual General Meeting in March 2016, to propose a motion for the
distribution of ordinary dividend in the amount of about DKK 500m.
Capital ratio 16.9%, of which Common Equity Tier 1 capital ratio of 15.8% (end-2014: 16.4% and 15.3%).
o
Capital buffer: DKK 10.3bn (End-2014: DKK 9.7bn).
o
Target: capital ratio of 17.5% and Common Equity Tier 1 capital ratio of 14.0%.
Merger with BRFkredit proceeds faster than expected: Pre-tax profit, BRFkredit: DKK 617m
COMMENTS BY MANAGEMENT
In connection with the publication of the interim financial report for the first nine months of 2015, Anders Dam, CEO and
Managing Director, states:
"The third quarter of 2015 is the first quarter since the merger with BRFkredit that is fully comparable with the
corresponding period in 2014. A pre-tax profit of DKK 326m is, seen in isolation, not satisfactory. However, the interestrate development had an adverse effect on the profit in the amount of about DKK 250m.
The management expects that earnings and cost synergies will be realised in line with its most recent statement about
these. Therefore, considering the Group's strength in respect of capital, the Supervisory Board has decided to launch a
share buy-back programme in an amount of up to DKK 500m, which is expected to be completed on 1 July 2016.
Moreover, it is the intention of the Supervisory Board, at the Annual General Meeting in March 2016, to propose a motion
for the distribution of ordinary dividend in the amount of about DKK 500m," concludes Anders Dam.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 4 of 54
First nine months of 2015
Economic trends
It is expected that the cautious economic recovery will continue, particularly fuelled by low interest rates and a gradually
lower propensity to save in Denmark as well as the euro zone. But uncertainty has increased. Nationally, GDP growth was
slightly weaker in the second quarter, and also, consumer confidence fell. After the first half of the year where house prices
rose markedly all over the country, the increase has slowed down in recent months. Internationally, the growth signals
have turned for the worse, and in particular there is focus on the slowdown in China.
Capital adjustment
Jyske Bank pursues a conservative and long-term capital policy. Jyske Bank's Supervisory Board reviews at least every
quarter the expected long-term capital base for the Group. The assessment includes expectations of earnings as well as
earnings under a stress scenario, the weighted risk exposure, other capital transactions, including acquisitions and capital
payments as well as regulatory initiatives and requirements on the part of Standard & Poor's.
Considering the current strong capital position and the Supervisory Board's recent review of the capital base and
expectations of this, it has been decided that Jyske Bank will initiate a capital adjustment with a view to optimising and
balancing the capital structure and the capital levels in line with the long-term capital management objective and capital
policy.
Jyske Bank will launch a share buy-back programme in the equivalent value of up to DKK 500m. The share buy-back
programme is part of Jyske Bank’s adjustment of its capital level. The programme will be carried out during the period of
early November 2015 to June 2016. Jyske Bank will, at the same time, explore the market for opportunities to issue
subordinated capital instruments.
The programme will be carried out according to the EU Commission's regulation No. 2273/2003 of 22 December 2003. The
share buybacks will be conducted through ABG Sundal Collier.
It is the intention of the Supervisory Board, at the Annual General Meeting in March 2016, to propose a motion for the
distribution of ordinary dividend in the amount of about DKK 500m.
The Group's capital target is unchanged, namely a Common Equity Tier 1 capital ratio of 14% and a capital ratio of 17.5%
when the capital adequacy rules have been fully phased in in 2020.
After recognising the planned and expected initiatives, the Common Equity Tier 1 capital ratio amounted to 15.8% and the
capital ratio to 16.9% as at 30 September 2015.
Material circumstances
Like the second quarter, the third quarter was also characterised by turmoil in the interest-rate markets, but while the
second quarter saw rising long-term interest rates, the third quarter saw falling long-term rates. The long-term interest
rates had a negative effect on value adjustments of clients' transactions relating to interest-rate hedging.
On 26 August 2015, Danmarks Nationalbank, the central bank of Denmark, lowered its current-account ceiling to a third of
the previous level, and hence it limited the Bank's possibility of investing funds at an interest rate of 0%. The rate on the
certificates of deposit of Danmarks Nationalbank is unchanged at -0.75% and hence the business activities relating to
deposits are to an even greater extent affected by the negative interest rates.
At end-January, Jyske Bank and Jyske Invest Fund Management entered into an agreement on portfolio management advice
and distribution so that, in future, Jyske Bank will render advice to Jyske Invest on all investments and handle the sale of
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 5 of 54
Jyske Invest's funds to distributors, primarily other financial institutions. Through the conclusion of the agreement, Jyske
Bank desires to create opportunities of generating additional growth in the capital management area and hence position
Jyske Bank as an important asset manager. The merger was implemented in the second quarter of 2015. In this connection,
Jyske Bank took over 23 employees.
On 13 July 2015, Standard & Poor's confirmed Jyske Bank's rating. The increasingly robust capital and risk position of Jyske
Bank offsets the fact that Standard & Poor's no longer allows for government support in its rating.
Current status of the merger of Jyske Bank and BRFkredit
The Group maintains its focus on the integration of Jyske Bank and BRFkredit and is working determinedly to reap the
synergies. The integration with BRFkredit proceeds faster than expected. The goal for annual synergies are unchanged at a
minimum of DKK 600m, and it is expected that the synergies will have full annual effect as of mid-2018, while earlier
expectations pointed to end-2018. Integration costs are expected to be in the range of DKK 100-150m. As at 30 September
2015, about half of the integration costs has been expensed.
Earnings and cost synergies

Growth in new home loans continued in the third quarter of 2015 and had, at the end of September reached the
level of DKK 53bn and as at today DKK 55bn. The annual earnings on these will in future more than match the
commission previously received from Totalkredit.

Distribution of mortgage loans to corporate clients has begun. A selective strategy towards selected corporate
clients and types of commercial property is being pursued.

Cost of capital of BRFkredit has fallen by about DKK 100m annually compared with the level in 2013.

The development of the Group's expenses proceeds according to plans, including the plan to reduce the number of
employees to the level of about 4,000 full-time employees.

At the end of the third quarter of 2015, the number of full-time employees was 4,102 and is thus still falling even
though 29 Financial Management degree holders were hired in August. The number of full-time employees was
4,444 on 30 April 2014 when Jyske Bank and BRFkredit merged.
The growth in respect of the Group's home loans contributes to reducing the average risk on the loan portfolio, and, despite
the lower interest rate margins on home loans than on traditional bank loans and advances, there is a reasonable
relationship between return and risk.
Two-channel strategy
The objective is to obtain more full-service clients for the Group. Jyske Bank still caters to clients' need for home financing,
among other things, through Jyske Bank's branch network, and also, BRFkredit still distributes home financing products
through its mobile corps of senior advisers and also through its telephone and internet services. By maintaining both
distribution channels, the Group has the opportunity to reach a wider group and hence attract more clients.
Organisation
Group functions have been established within a number of areas relating to staff functions. The purposes of these are to
eliminate overlapping functions with a view to saving resources and also to making better use of core competences.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 6 of 54
BRFkredit Bank
In May 2015, BRFkredit Bank migrated to the Bankdata IT platform. The personal clients have been transferred to
Finansnetbanken and therefore they continue within a self-service set-up. Corporate clients have been transferred to Jyske
Bank's corporate client branches.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 7 of 54
Net profit or loss for the period
Over the first nine months of 2015, the Jyske Bank Group generated a pre-tax profit of DKK 2,129m. Calculated tax
amounted to DKK 490m, and after tax the profit amounted to DKK 1,639m.
The pre-tax profit corresponded to a return on opening equity of 10.3% p.a. against a return of 26% p.a. for the
corresponding period of 2014, where bargain purchases of DKK 2,360m were recognised. Exclusive of bargain purchases,
the return on opening equity in the first nine months of 2014 came to 6.0%.
CORE PROFIT AND PROFIT FOR THE PERIOD
DKKm
Net interest income
Net fee and commission income
Value adjustments
Other income
Income from operating lease (net)
Core income
Core expenses
Core earnings before impairment
Loan impairment charges
Core profit
Investment portfolio earnings
Pre-tax profit
Tax
Net profit or loss for the period
Q1-Q3
2015
4,453
1,339
135
180
68
6,175
3,953
2,222
381
1,841
288
2,129
490
1,639
Q1-Q3
2014
3,887
1,135
208
2,996
58
8,284
3,890
4,394
1,236
3,158
246
3,404
94
3,310
Index
The year
15/14 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014
2014
115
1,500
1,513
1,440
1,428
1,529
5,315
118
372
350
617
626
360
1,761
65
-251
536
-150
-250
132
-42
6
60
68
52
78
172
3,074
117
22
27
19
20
19
78
75
1,703
2,494
1,978
1,902
2,212
10,186
102
1,321
1,294
1,338
1,341
1,297
5,231
51
382
1,200
640
561
915
4,955
31
30
24
327
717
398
1,953
58
352
1,176
313
-156
517
3,002
117
-26
125
189
-145
84
101
63
326
1,301
502
-301
601
3,103
521
76
305
109
-80
53
14
50
250
996
393
-221
548
3,089
BRFkredit has been included in the income statement as of 1 May 2014 and in the balance sheet as of the end of the second
quarter 2014.
Core income amounted to DKK 6,175m against DKK 8,284m in the first nine months of 2014, and core expenses amounted
to DKK 3,953m against DKK 3,890m in the first nine months of 2014. Core profit amounted to DKK 1,841m against DKK
3,158m in the first nine months of 2014.
Net interest income amounted to DKK 4,453m against DKK 3,887m in the first nine months of 2014. Net interest income is
supported by the continued growth in home loans and the merger with BRFkredit, yet affected negatively by the low
interest-rate level and Danmarks Nationalbank's (the central bank of Denmark), lower current-account ceiling, increasing
pressure on interest rate margins due to the competitive situation and a decline in traditional bank loans and advances by
DKK 6bn in the first nine months of 2015.
Net fee and commission income amounted to DKK 1,339m against DKK 1,135m in the first nine months of 2014. The
increase can be attributed to the first quarter of 2015 when the favourable development in the financial markets resulted in
high performance-related fees, and the low interest-rate level resulted in much refinancing activity at BRFkredit. Jyske Bank
still offers transfers of home loans without charging any fees.
Value adjustments amounted to DKK 135m against DKK 208m in the first nine months of 2014. In the third quarter of
2015, the falling market rates had a negative effect on clients' transactions relating to interest-rate hedging. The ensuing
effect was a negative value adjustment of DKK 64m. For the first nine months of 2015, the total effect is a positive value
adjustment of DKK 232m against a negative value adjustment of DKK 355m for the same period last year. Also, the third
quarter of 2015 saw negative value adjustments in respect of the liquidity buffer.
New home loans are recognised at amortised cost and risk management takes place in a portfolio calculated at fair value.
According to the joint funding agreement between Jyske Bank and BRFkredit, the loans are transferred at fair value. In the
third quarter of 2015, this resulted in a negative value adjustment of DKK 86m. It is expected that as of 1 January 2016,
home loans will be recognised at fair value at the first recognition.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 8 of 54
Due to the issue of fixed-rate home loans at a discount, it is expected that net interest income from the discount will be
recognised as income in the magnitude of DKK 150m in the coming quarters.
Other income amounted to DKK 180m against DKK 2,996m in the first nine months of 2014. The difference can primarily be
ascribed to the recognition of bargain purchases of DKK 2,360 relating to the merger with BRFkredit and the profit of DKK
296m from the sale of Silkeborg Data.
Core expenses amounted to DKK 3,953m against DKK 3,890m in the first nine months of 2014. In the third quarter of 2014,
the provision for holiday pay obligations at BRFkredit was adjusted, as a result of which core expenses were reduced by
about DKK 20m for the third quarter of 2014. The salary increase of 1.8% as of 1 July 2015 prescribed by the collective
agreement caused an increase in core expenses of about DKK 15m in the third quarter of 2015. Moreover, core expenses
were also affected because payments to the statutory Resolution Fund was recognised as an expense as of 1 July 2015. In
the third quarter of 2015, about DKK 20m were recognised as an expense. The contributions to the Guarantee Fund for
Depositors and Investors will presumably cease at the end of 2015. It is expected that the annual payment to the
Resolution Fund will amount to about DKK 75m against the payment of DKK 145m to the Guarantee Fund for Depositors
and Investors.
The Group's impairment charges under core profit amounted to DKK 381m in the first nine months of 2015 against DKK
1,236m in the corresponding period of last year.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 9 of 54
Business volume and financial position
SUMMARY OF BALANCE SHEET, END OF
PERIOD
DKKm
Loans and advances
- of which mortgage loans
- of which loans and advances, traditional
loans and advances
- of which loans and advances, new home
loans
- of which repo loans
Bonds and shares, etc.
Total assets
Due to credit institutions and central banks
Deposits
- of which bank deposits
- of which repo deposits
Issued bonds at fair value
Issued bonds at amortised cost
Subordinated debt
Equity
The
Index
year
15/14 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014
2014
106 380,545 375,184 376,175 361,799 358,638 361,799
112 242,355 233,700 229,167 218,864 215,998 218,864
Q3 2015
380,545
242,355
Q3 2014
358,638
215,998
95,706
105,577
14,209
28,275
78,836
531,063
11,957
25,106
89,155
521,140
119 14,209 16,964 18,796 18,092 11,957 18,092
113 28,275 27,654 28,148 22,512 25,106 22,512
88 78,836 87,686 98,779 92,309 89,155 92,309
102 531,063 541,031 573,074 541,679 521,140 541,679
31,947
138,753
125,481
13,272
225,944
52,556
1,354
29,233
51,761
148,103
128,476
19,627
198,099
37,750
1,354
27,830
62 31,947 39,865 46,176 49,885 51,761 49,885
94 138,753 141,077 151,546 152,693 148,103 152,693
98 125,481 129,021 131,547 133,198 128,476 133,198
68 13,272 12,056 19,999 19,495 19,627 19,495
114 225,944 229,414 219,789 208,539 198,099 208,539
139 52,556 47,947 54,061 43,413 37,750 43,413
100
1,354
1,355
1,362
1,355
1,354
1,355
105 29,233 28,996 27,970 27,561 27,830 27,561
91
95,706
96,866 100,064 102,331 105,577 102,331
Jyske Bank is still seeing satisfactory demand for its new home loan products. Since the launch of Jyske Bank's own new
home loan products in mid-December 2013, Jyske Bank had at the end of the third quarter of 2015 granted loans totalling
DKK 53bn, and as at today DKK 55bn. At the end of the third quarter of 2015, an amount of DKK 52bn, against DKK 31bn at
end-2014, was recognised in the Group's balance sheet.
The new home loan products are primarily sold to existing clients with mortgage loans with Totalkredit and to a lesser
degree to new clients. A small proportion of the clients who switch from Totalkredit, raise home loans that are higher than
their mortgage loans. The reason for this is that rising house prices have allowed home owners to raise additional loans or
to refinance existing bank loans into home loans.
The demand for new loans from existing corporate clients is still limited, and solid corporate clients are in a position to
reduce the drawdown under their commercial credit facilities. An inflow of corporate clients has been recorded, and to some
extent the ensuing volume offsets existing clients' lower drawdown under their commercial credit facilities.
Since end-2014, traditional bank loans and advances have on the whole fallen from DKK 102bn to DKK 96bn, corresponding
to a 6% decline.
At the end of the third quarter of 2015, bank deposits (exclusive of repo deposits) amounted to DKK 125bn, i.e. about DKK
8bn less than at end-2014 and about DKK 4bn less than at the end of the first half of 2015. This development is a
consequence of the low interest-rate level and the business initiatives implemented with a view to optimising the extent
and pricing of the deposit portfolio.
At the end of the third quarter 2015, the business volume within asset management amounted to DKK 117bn against DKK
94bn at end-2014. The development of the business volume was affected by negative returns in the third quarter of 2015.
At the end of the third quarter, the Jyske Bank Group's equity amounted to DKK 29.2bn against DKK 27.6bn at end-2014.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 10 of 54
Loan impairment charges and provisions for guarantees and value adjustments of
acquired assets
Under core profit, an amount of DKK 381m was recognised as an expense under loan impairment charges and provisions for
guarantees against DKK 1,236m in the same period in 2014. In the statutory reporting format, an amount of DKK 1,085m
has been recognised as an expense under loan impairment charges and provisions for guarantees. The difference from
impairment charges under core profit can be attributed to reclassification relating to write-downs on impaired loans and
advances from BRFkredit Bank, BRFkredit and SparLolland.
In the third quarter of 2015, impairment charges were, on a net basis, kept at a stable and low level. Extensive losses and
impairment charges were established in the agricultural segments. In the third quarter of 2015, individual impairment
charges relating to agricultural clients rose by DKK 75m.
At the end of the third quarter of 2015, management's estimates amounted to DKK 360m, of which DKK 224m related to
agricultural clients, against DKK 406m as at 30 June 2015.
LOANS, ADVANCES AND GUARANTEES AS
WELL AS VALUE ADJUSTMENTS OF LOANS
AND ADVANCES, ETC.
DKKm
Loans, advances and guarantees
The
Index
year
15/14 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014
2014
106 394,199 389,814 390,277 375,017 371,669 375,017
Q1 - Q3
2015
394,199
Q1 - Q3
2014
371,669
3,160
3,084
102
3,160
4,016
3,771
3,795
3,084
3,795
28,433
4,516
31,740
3,778
90
120
28,433
4,516
29,327
4,572
31,097
4,647
31,659
4,233
31,740
3,778
31,659
4,233
23,917
27,962
86
23,917
24,755
26,450
27,426
27,962
27,426
6,762
5,545
122
6,762
6,780
6,718
6,360
5,545
6,360
4,913
4,250
116
4,913
4,965
5,161
4,706
4,250
4,706
1,849
1,295
143
1,849
1,815
1,557
1,654
1,295
1,654
2,625
0
46
704
89
907
2,717
0
253
347
289
278
26
2,105
0
0
203
24
2,338
0
46
260
19
2,625
0
0
241
46
3,024
0
0
332
67
3,213
0
0
97
92
907
2,717
0
585
414
1,878
3,024
62
1,878
2,105
2,338
2,625
3,024
2,625
Total balance for loan impairment charges
and provisions for guarantees and balance of
discounts for acquired assets
8,640
8,569
101
8,640
8,885
9,056
8,985
8,569
8,985
Operational loan impairment charges and
provisions for guarantees
Operating loss
1,085
939
1,489
795
73
118
233
376
284
310
568
253
1,049
344
495
262
2,538
1,139
Non-performing loans and past due exposures
Loans and advances assessed individually:
Loans and advances with OEI before loan
impairment charges
Impairment charges
Loans and advances with OEI after loan
impairment charges
Balance of loan impairment charges and
provisions for guarantees
Individual impairment charges and provisions
for guarantees
Collective impairment charges and provisions
for guarantees
Value adjustments of acquired assets:
Balance of discounts for acquired assets,
beginning of period
Discounts relating to business combinations
Other additions
Positive value adjustments (interest income)
Negative value adjustments (loss)
Balance of discounts for acquired assets, end
of period
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 11 of 54
The total balance of loan impairment charges and provisions for guarantees and the balance of discounts for assets taken
over amounted to 2.1% of total loans, advances and guarantees.
At the end of the third quarter of 2015, the Jyske Bank Group had no exposures amounting to more than 10% of the adjusted
capital base. The Group had two exposures amounting to between 5% and 7.5% of the adjusted capital base and two
exposures between 7.5% and 10% of the adjusted capital base.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 12 of 54
Investment portfolio earnings
INVESTMENT PORTFOLIO EARNINGS
DKKm
Net interest income
Net fee and commission income
Value adjustments
Other income
Income
Expenses
Investment portfolio earnings before loan
impairment charges
Loan impairment charges
Investment portfolio earnings
Q1-Q3
2015
495
-1
-212
11
293
5
Q1-Q3
2014
502
-2
-254
9
255
9
288
0
288
246
0
246
Index
15/14 Q3 2015 Q2 2015 Q1 2015 Q4 2014
99
122
186
187
213
50
-1
1
-1
0
83
-148
-67
3
-357
122
2
7
2
1
115
-25
127
191
-143
56
1
2
2
2
117
117
-26
0
-26
125
0
125
189
0
189
-145
0
-145
Q3
2014
235
-1
-150
2
86
2
The
year
2014
715
-2
-611
10
112
11
84
0
84
101
0
101
Investment portfolio earnings amounted to DKK 288m against DKK 246m for the same period in 2014. In comparison with
the first nine months of 2014, it must be considered that earnings from investment portfolios from BRFkredit were not
recognised until 1 May 2014.
For the first nine months of 2015, net interest income was in line with the corresponding period last year. The decline in net
interest income in the third quarter of 2015 can be attributed to lower bond holdings.
Value adjustments were negatively affected by the widening of the Danish-German yield spread and in particular by the
widening of credit spreads on Danish mortgage bonds.
Market risk
At the end of the third quarter of 2015, the aggregate interest-rate, currency and equity-price risk – expressed as Value-atRisk (VaR) – amounted to DKK 58m (calculated with a time frame of one day and 99% probability) against DKK 60m at the
end of the second quarter of 2015.The net decline of DKK 2m was a result of opposing effects. Generally, volatility within
equity risk, currency risk and interest-rate risk increased in the third quarter, which increased the VaR, but at the same time
the Group reduced its holding of non-callable mortgage bonds, which reduced the VaR due to a lower OAS effect on the VaR
on these.
Value-at-Risk as a percentage of equity
%
0.3
0,3
0.2
0,2
0.1
0,1
0.0
0,0
2011
2012
Total
2013
2014
Interest-rate
Currency
2015
2016
Equities
The Group’s portfolio of held-to-maturity bonds amounted to DKK 4.6bn against DKK 6.9bn at end-2014. The portfolio is
still dominated by low-risk securities. At the end of the third quarter of 2015, the market value was DKK 168m higher than
the carrying amount against DKK 246m at end-2014.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 13 of 54
Segment information
The business segments reflect all activities with respect to banking, mortgage finance and leasing, inclusive of investing
activities relating to clients' regular transactions. The investment portfolio earnings of the legal entities relate to the
activities of the relevant entities.
Banking activities
SUMMARY OF INCOME STATEMENT
DKKm
Net interest income
Net fee and commission income
Value adjustments
Other income
Core income
Core expenses
Core profit before loan
impairment charges
Loan impairment charges
Core profit
Investment portfolio earnings
Pre-tax profit
Q1-Q3
2015
2,757
1,215
396
147
4,515
3,135
Q1-Q3
2014
2,894
1,106
272
2,981
7,253
3,377
Index
15/14
95
110
146
5
62
93
Q3
2015
952
331
-227
46
1,102
1,056
Q2
2015
946
313
731
61
2,051
1,010
Q1
2015
859
571
-108
40
1,362
1,069
Q4
2014
901
515
-266
65
1,215
1,048
Q3
2014
1,019
333
181
167
1,700
1,043
The year
2014
3,795
1,621
6
3,046
8,468
4,425
1,380
361
1,019
236
1,255
3,876
1,220
2,656
224
2,880
36
30
38
105
44
46
60
-14
5
-9
1,041
59
982
98
1,080
293
242
51
133
184
167
662
-495
-72
-567
657
414
243
66
309
4,043
1,882
2,161
152
2,313
SUMMARY OF BALANCE SHEET,
END OF PERIOD
DKKm
Loans and advances
- of which bank loans
- of which repo loans
Total assets
125,098
96,823
28,275
252,819
127,326
102,220
25,106
253,590
98
95
113
100
125,098
96,823
28,275
252,819
128,786
101,132
27,654
258,573
131,854
103,706
28,148
290,870
127,741
105,229
22,512
266,301
127,326
102,220
25,106
253,590
127,741
105,229
22,512
266,301
Deposits
- of which bank deposits
- of which repo deposits
Issued bonds
138,531
125,259
13,272
47,840
142,818
123,191
19,627
32,378
97
102
68
148
138,531
125,259
13,272
47,840
140,846
128,790
12,056
43,232
146,761
126,762
19,999
48,883
147,467
127,972
19,495
38,210
142,818
123,191
19,627
32,378
147,467
127,972
19,495
38,210
Pre-tax profit
The pre-tax profit from banking activities amounted to DKK 1,255m against DKK 2,880m for the same period in 2014 where
bargain purchases of DKK 2,360m were recognised.
The new home loans made a positive contribution to net interest income, which was, generally, affected by fierce
competition in the market place and the falling volume of traditional bank loans and advances. To this must be added, that
business activities relating to deposits were still under pressure due to the low interest-rate level and the lower currentaccount ceiling of Danmarks Nationalbank.
Trading and investing activities saw a continued increase in the number of clients and, therefore, a sound activity level. The
results of the trading and investing activities in the third quarter of 2015 were in line with those of the second quarter of
2015.
Net fee and commission income were still satisfactory but adversely affected by falling equity and bond markets, which
resulted in lower performance-related investment fees in the second and the third quarters of 2015. To this must be added
that Jyske Bank still offers transfers of home loans without charging fees.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 14 of 54
Value adjustments amounted to DKK 396m against DKK 272m in the first nine months of 2014. In the third quarter of
2015, the falling market rates had a negative effect on clients' transactions relating to interest-rate hedging. The ensuing
effect was a negative value adjustment of DKK 64m. For the first nine months of 2015, the total effect from clients'
transactions relating to interest-rate hedging was a positive value adjustment of DKK 232m against a negative value
adjustment of DKK 355m for the corresponding period last year. Also, the third quarter of 2015 saw negative value
adjustments in respect of the liquidity buffer.
New home loans are recognised at amortised cost and risk management takes place in a portfolio calculated at fair value.
According to the joint funding agreement between Jyske Bank and BRFkredit, the loans are transferred at fair value. In the
third quarter of 2015, this resulted in a negative value adjustment of DKK 86m. It is expected that as of 1 January 2016,
home loans will be recognised at fair value at the first recognition.
Due to the issue of fixed-rate home loans at a discount, it is expected that net interest income from the discount will be
recognise as income in the magnitude of DKK 150m in the coming quarters.
For the first nine months of 2015, core expenses amounted to DKK 3,135m against DKK 3,377m for the corresponding
period in 2014. The increase in core expenses from the second quarter of 2015 to the third quarter of 2015 can primarily be
attributed to expenses for the statutory Resolution Fund and the 1.8% increase in salaries prescribed by the collective
agreement as of 1 July 2015.
Business volume
Satisfactory demand for new home loan products was still recorded. Growth in new home loan products was not reflected in
Banking activities as, at the same time, in the first nine months of 2015 a large volume was transferred to BRFkredit, and
therefore this growth is recognised under Mortgage activities.
The demand for new loans from existing corporate clients is still limited, and solid corporate clients are in a position to
reduce the drawdown under their commercial credit facilities. An inflow of corporate clients has been recorded, and to some
extent the ensuring volume offsets the existing clients' lower drawdown under their commercial credit facilities.
Volatility in the financial markets continued and resulted in satisfactory client activities within risk management in respect
of assets, equity and liabilities. Trading and investing activities saw a stable development in respect of business volume
and market share.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 15 of 54
Mortgage activities
SUMMARY OF INCOME STATEMENT
Q1-Q3
Q1-Q3 Index
Q3
Q2
DKKm
2015
2014 15/14
2015
2015
Contribution income, etc.
1,255
601
209
431
418
Other net interest income
102
69
148
4
39
Net fee and commission income
173
51
339
60
52
Value adjustments
-272
-78
349
-24
-206
Other income
25
8
313
13
5
Core income
1,283
651
197
484
308
Core expenses
697
379
184
225
242
Core profit before loan impairment charges
586
272
215
259
66
Loan impairment charges
21
18
117
-27
-28
Core profit
565
254
222
286
94
Investment portfolio earnings
52
22
236
-31
27
Pre-tax profit
617
276
224
255
121
Contribution income, etc. covers contribution income as well as interest rate margin on jointly funded loans.
1
Q1
2015
406
59
61
-42
7
491
230
261
76
185
56
241
Q4
2014
390
28
116
19
7
560
248
312
58
254
-73
181
Q3
2014
372
30
35
-52
7
392
203
189
-16
205
18
223
The
year
2014
965
123
167
-59
15
1,211
627
584
76
508
-51
457
1)
SUMMARY OF BALANCE SHEET, END OF
PERIOD
DKKm
Loans and advances
- of which mortgage loans
- of which bank loans
Total assets
242,355
242,355
0
263,175
219,017
215,998
3,019
253,653
111 242,355 233,700 231,835 221,665 219,017 221,665
112 242,355 233,700 229,167 218,864 215,998 218,864
0
0
2,668
2,801
3,019
2,801
104 263,175 267,894 267,953 261,300 253,653 261,300
Bank deposits
Issued bonds
0
230,660
5,041
203,471
0
0
4,554
4,990
5,041
4,990
113 230,660 234,129 224,967 213,742 203,471 213,742
Mortgage activities were included in the income statement as of 1 May 2014 and in the balance sheet as of the end of the
second quarter 2014.
Pre-tax profit
For the third quarter, the pre-tax profit from leasing activities amounted to DKK 255m against DKK 223m for the
corresponding period in 2014.
Contribution income etc. were still positively affected by the increasing loan portfolio, including, in particular, jointly funded
home loans. Moreover, the contribution rates were raised in early 2015.
The transfer of banking activities to Jyske Bank in May affected other net interest income adversely, taking full effect in the
third quarter of 2015.
In the third quarter of 2015, net fee and commission income amounted to DKK 60m, hence being at a stable level in 2015.
The increase in the third quarter of 2015 relative to the third quarter of 2014 can primarily be attributed to higher
commission income from restructuring of loans, refinancing and conclusion of fixed-price agreements.
Value adjustments in the third quarter of 2015 improved relative to the corresponding period last year, primarily because
last year a negative return was recorded on the company's core portfolio of mortgage bonds.
In the third quarter of 2015, core expenses amounted to DKK 225m, including DKK 8m allocated for the new statutory
Resolution Fund. Generally, core expenses fell, and the falling level can materially be attributed to a decline in payroll costs.
The increase in expenses from the third quarter of 2014 to the third quarter of 2015 can be attributed to the adjustment of
the provision for holiday pay obligations in the third quarter of 2014.
Impairment charges amounted to an income of DKK 27m in the third quarter of 2015, which was mainly attributable to
reversals of previous impairment charges relating to corporate clients.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 16 of 54
Business volume
Mortgage loans grew by DKK 8.7bn in the third quarter of 2015, which was mainly attributable to jointly funded home loans
transferred from Jyske Bank. Also BRFkredit's other loan segments recorded higher lending over the period.
In the second quarter of 2015, BRFkredit's banking activities were transferred to Jyske Bank. Of these, loans and advances
amounted to DKK 2.6bn and deposits to DKK 4.5bn.
For further details about BRFkredit, please see BRFkredit's interim report for the first nine months of 2015.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 17 of 54
Leasing activities
SUMMARY OF INCOME
STATEMENT
DKKm
Net interest income
Net fee and commission income
Value adjustments
Other income
Income from operating lease (net)
Core income
Core expenses
Core profit before loan
impairment charges
Loan impairment charges
Pre-tax profit
SUMMARY OF BALANCE SHEET,
END OF PERIOD
DKKm
Loans and advances
Total assets
Deposits
Q1-Q3
2015
339
-49
11
8
68
377
121
Q1-Q3
2014
323
-22
14
7
58
380
134
Index
15/14
105
223
79
114
117
99
90
Q3 2015
113
-19
0
1
22
117
40
Q2 2015
110
-15
11
2
27
135
42
Q1 2015
116
-15
0
5
19
125
39
Q4 2014
109
-5
-3
6
20
127
45
Q3 2014
108
-8
3
-2
19
120
51
The year
2014
432
-27
11
13
78
507
179
256
-1
257
246
-2
248
104
50
104
77
-3
80
93
-7
100
86
9
77
82
-3
85
69
0
69
328
-5
333
13,092
15,069
12,295
13,897
106
108
13,092
15,069
12,698
14,564
12,486
14,251
12,393
14,078
12,295
13,897
12,393
14,078
222
244
91
222
231
231
236
244
236
Pre-tax profit
The pre-tax profit from leasing activities amounted to DKK 257m against DKK 248m for the corresponding period in 2014.
The results were satisfactory and were achieved due to an increasing business volume and focus on cost control.
Improvements were recorded within operating lease, including private leasing.
The increasing use of contracts with dealer bonus affected net fee and commission income adversely as fee income is
recognised over the term of the contract.
Expenses amounted to DKK 121m and were 10% below the level for the corresponding period in 2014.
Business volume
In the first nine months of 2015, new sales were satisfactory, and there was a net increase in business volume. A positive
future development of the business volume is still expected.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 18 of 54
Core profit and investment portfolio earnings
The pre-tax profit for the first nine months of 2015 broken down by core earnings and investment portfolio earnings is
stated below:
BREAKDOWN OF THE PERIOD'S
PROFIT
DKKm
Net interest income
Net fee and commission income
Value adjustments
Other income
Income from operating lease (net)
Income
Expenses
Profit before loan impairment
charges
Loan impairment charges
Pre-tax profit
Q1 - Q3 2015
Core
profit
4,453
1,339
135
180
68
6,175
3,953
2,222
381
1,841
Q1 - Q3 2014
Investment
portfolio
earnings Reclassification
495
704
-1
0
-212
0
11
0
0
241
293
945
5
241
288
0
288
704
704
0
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Total
5,652
1,338
-77
191
309
7,413
4,199
Core
profit
3,887
1,135
208
2,996
58
8,284
3,890
3,214
1,085
2,129
4,394
1,236
3,158
Investment
portfolio
earnings Reclassification
501
253
-2
0
-254
0
10
0
0
216
255
469
9
216
246
0
246
253
253
0
Total
4,641
1,133
-46
3,006
274
9,008
4,115
4,893
1,489
3,404
Page 19 of 54
Capital structure and capital management
Common Equity Tier 1 capital and capital base
At the end of the third quarter of 2015, Common Equity Tier 1 capital (CET1) amounted to DKK 27,714m and 94% of the
capital base against DKK 26,956m and 93% at end-2014. The Common Equity Tier 1 capital ratio fell to 15.8% due to the
share buy-back programme and an expected ordinary dividend totalling DKK 1.0bn.
CAPITAL AND CORE CAPITAL RATIOS
Capital ratio (%)
Core capital ratio incl. hybrid capital (%)
Common Equity Tier 1 capital ratio (CET 1) (%)
Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014
16.9
17.1
16.3
16.4
16.7
16.3
16.5
15.7
15.8
16.2
15.8
16.1
15.3
15.3
15.7
End2014
16.4
15.8
15.3
The Jyske Bank Group’s total weighted risk exposure amounted to DKK 175bn at the end of the third quarter of 2015 against
DKK 176bn at end-2014. The Jyske Bank Group's total weighted risk exposure with credit risk was unchanged at DKK 138bn,
corresponding to 79% of the total weighted risk exposure. The total weighted risk exposure with credit risk was affected by
two opposing circumstances: lower volume within traditional bank loans and advances, reducing the risk exposure, and
growth in new home loans, increasing the risk exposure.
Jyske Bank has established a long-term goal of achieving a capital ratio of 17.5% and a Common Equity Tier 1 capital ratio of
14.0% when the capital adequacy rules have been fully implemented in 2020.
Capital policy
A share buy-back programme of up to DKK 500m will be launched and the programme is expected to be completed on 1 July
2016. Moreover, it is the intention of the Supervisory Board, at the Annual General Meeting in March 2016, to propose a
motion for the distribution of ordinary dividend in the amount of about DKK 500m. As a consequence of this, the capital
ratio has changed from 17.4% to 16.9% and the Common Equity Tier 1 capital ratio from 16.4% to 15.8%. See also page 5 for
further details. Jyske Bank will, at the same time, explore the market for opportunities to issue subordinated capital
instruments.
Individual solvency requirement and capital buffer
The individual solvency requirement for the Jyske Bank Group is determined as the higher one of the requirements based on
the internal method, the FSA’s 8+ method as well as statutory limits. In addition to the minimum capital requirement, the
individual solvency requirement is subject to the transitional provisions pertaining to AIRB institutions.
At the end of the third quarter of 2015, the Jyske Bank Group calculated its individual solvency requirement to be 10.7% of
the total weighted risk exposure against 10.9% at end-2014. To this must be added a SIFI requirement of 0.3% at the end of
the third quarter of 2015.
Compared with the actual capital base of DKK 29bn, the capital buffer amounted at the end of the third quarter of 2015 to
DKK 10.3bn, corresponding to 5.9 percentage points. The capital buffer plus earnings from operations denote the maximum
sustainable loss without the need for additional capital. The Jyske Bank Group’s large proportion of Common Equity Tier 1
capital cements the quality of the total capital.
According to the Basel I transitional rules, the capital requirement was 9.4% against 9.2% at end-2014.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 20 of 54
Liquidity management
The Group's liquidity buffer
At the end of the third quarter of 2015, the Jyske Bank Group's liquidity buffer amounted to DKK 70bn against DKK 55bn at
end-2014. The breakdown of the liquidity buffer by the three different internal liquidity classes is shown in the chart below.
11%
9%
Eligible at the Danish Central Bank
Eligible at the ECB
Non Central Bank eligible securities
80%
Under a stress scenario assuming that the Group is precluded from re-financing in the international financial money
markets for unsecured senior debt as well as the market for so-called senior secured bonds, the Group's liquidity buffer
would after a 12-month period amount to DKK 31.4bn and after a 24-month period to DKK 25.9bn.
LIQUIDITY RESERVE AND RUN-OFF
DKKbn
End of period
3 mths.
6 mths.
9 mths.
12 mths.
Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014
69.8
69.0
61.5
55.1
52.4
45.6
50.2
45.4
48.2
38.1
38.4
46.7
41.9
42.4
32.0
35.1
39.5
35.6
39.7
27.7
31.4
37.5
27.4
30.3
25.2
End2014
55.1
48.2
42.4
39.7
30.3
The liquidity reserve according to S.152(1)(2) of the Danish Financial Business Act was high throughout the period. At the
end of the third quarter of 2015, the liquidity ratio was 28.9%, corresponding to a liquidity surplus of 189% compared with
144% at end-2014.
Liquidity Coverage Ratio
Jyske Bank is a systemically important financial institution and must therefore fully meet the new Liquidity Coverage Ratio
(LCR) of 100% as of 1 October 2015. As at 30 September 2015, the Group's LCR ratio was 167%.
The Group's funding profile
At the end of the third quarter 2015, the portfolio of traditional bank loans and advances was still more than fully funded by
bank deposits. Mortgage loans were funded through issue of mortgage bonds.
The run-off profile of the Group's senior debt as well as senior secured issues through BRFkredit's capital centre is
illustrated by the chart below.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 21 of 54
10
DKKbn
8
6
4
2
0
Q4 2015
2016
2017
2018
Jyske Bank senior unsecured EMTN bonds & long term senior debt
2019
BRF senior secured bonds
2020
> 2020
BRF senior unsecured bonds
Capital market funding
At the end of the third quarter of 2015, liquidity procured under the CP programme amounted to DKK 29.3bn (EUR 3.9bn)
against DKK 20.6bn (EUR 2.8bn) at end-2014. Issues of long-term senior debt under Jyske Bank’s EMTN programme as well
as other long-term senior debt amounted to DKK 18.5bn against DKK 17.2bn at end-2014.
Increasing interest rate volatility and long-term interest-rate levels over the first half of 2015 as well as increasing
geopolitical unrest and uncertainty in the third quarter of 2015 caused - in combination with the coming into force of the
LCR and the implementation in Europe of the new Bank Recovery and Resolution Directive ”BRRD” - a change in the
sentiment in the capital markets. The market expects a steep increase in the supply of capital market instruments over the
coming quarters, and the supply/demand dynamics have changed in the favour of investors, as a result of which the
international capital markets were characterised by increasing volatility and widening credit spreads for senior debt and
also, and not least, for supplementary capital in the second and third quarters.
Jyske Bank took advantage of the attractive market conditions in the period up to May 2015 to be active in the private
placement market and issued 2-year bonds in the amount of SEK 1bn, 5-year bonds in the amount of SEK 1.35bn and 7-year
bonds in the smaller amount of EUR 10m. Furthermore, in March 2015, 3-year public benchmark bonds in the amount of
EUR 500m were issued. More than 90% of the bonds was sold to foreign investors, which goes to show that Jyske Bank has
built up strong access to the European investor base.
In the course of the ordinary management of the run-off profile, Jyske Bank had at end-September 2015 bought back EMTN
issues with a shorter time to maturity in the amount of DKK 1.3bn.
The greater part of Jyske Bank's new home loan products are funded under the joint funding agreement. At the end of the
third quarter of 2015, under the joint funding agreement, funding amounted to DKK 35.3bn, against DKK 14.1bn at end2014.
Refinancing in mortgage activities
The strongest effect from BRFkredit on the Group's liquidity risk profile is in the form of refinancing risk. To reduce this
refinancing risk, refinancing has been spread out over three annual settling periods, with the intention that the individual
series must be so large that they can be included in the credit institutions' liquidity buffers in connection with the LCR
requirements. Moreover, in the course of 2015, BRFkredit financed and re-financed the so-called F1 loans and joint funding
home loans through RTL F bonds (pre-financed bonds).
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 22 of 54
The table below gives a comprehensive overview of planned re-financing of mortgage bonds as well as a breakdown of debt
outstanding by type of mortgage loan.
PLANNED RE-FINANCING AND BREAKDOWN OF DEBT OUTSTANDING
DKKbn
Repayment Planned re-financing
dates
amount
Funding
Maturities per
(amount offered)
re-financing dates
Jan-16
46.6
9.9
Apr-16
9.3
1.8
Oct-16
11.9
4.4
2017
31.0
30.2
2018
28.9
28.9
2019
14.1
14.1
2020
5.5
5.5
2021
0.6
0.6
2022
0.6
0.6
2023
1.3
1.3
2024
0.8
0.8
2025
0.9
0.9
Note: The table does not include fixed-rate loans.
Loan
Maturities per
re-financing dates
+ 2 years (RTL F)
36.7
7.6
7.5
0.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
F1
36.7
6.5
7.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
F3
4.2
1.3
0.6
8.2
11.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
F5
3.2
0.0
1.9
6.7
13.7
12.0
4.7
0.0
0.0
0.0
0.0
0.0
Other
2.5
1.5
1.9
16.1
3.6
2.2
0.8
0.6
0.6
1.3
0.8
0.9
Breakdown of BRFkredit's loan portfolio by loan type
5%
39%
Refinancing within one year
Refinancing beyond one year
Other loan types (fixed rate etc.)
56%
Other information
The supervisory diamond for Jyske Bank A/S
The supervisory diamond defines a number of special risk areas including specified limits that financial institutions should
generally not exceed. The supervisory diamond limits applicable to Jyske Bank A/S are shown below.
THE SUPERVISORY DIAMOND FOR JYSKE BANK A/S
Sum of large exposures < 125% of the adjusted capital base
Increase in loans and advances < 20% annually
Exposures to property administration and property transactions < 25% of total loans
and advances
Stable funding < 1
Liquidity surplus > 50%
Q3
2015
0%
-4%
Q2
2015
0%
0%
Q1
2015
0%
4%
Q4
2014
0%
9%
Q3
2014
0%
5%
End2014
0%
9%
7%
0.67
189%
7%
0.67
174%
7%
0.71
137%
7%
0.72
129%
7%
0.72
130%
7%
0.72
129%
Jyske Bank A/S meets all the benchmarks of the supervisory diamond.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 23 of 54
The supervisory diamond BRFkredit a/s
The supervisory diamond defines a number of special risk areas including specified limits that financial institutions should
generally not exceed. The supervisory diamond takes effect in 2018 and 2020, respectively. The supervisory diamond limits
applicable to BRFkredit a/s are shown below.
THE SUPERVISORY DIAMOND FOR BRFkredit a/s
Concentration risk < 100%
Increase in loans and advances < 15% annually in the segment:
Owner-occupied homes and vacation homes
Residential rental property
Agriculture
Other sectors
Borrower's interest-rate risk < 25%
Residential property
Interest-only schemes < 10%
Owner-occupied homes and vacation homes
Loans with frequent interest-rate fixing:
Refinancing (annually) < 25%
Refinancing (quarterly) < 12.5%
Q3
2015
77.8%
Q2
2015
72.5%
Q1
2015
74.6%
Q4
2014
76.4%
Q3
2014
-
End2014
76.4%
25.4%
5.8%
4.3%
23.1%
7.0%
4.7%
17.4%
4.8%
-0.4%
9.1%
4.0%
2.7%
-
9.1%
4.0%
2.7%
30.7%
29.4%
28.2%
27.0%
-
27.0%
10.6%
10.8%
11.3%
11.5%
-
11.5%
24.0%
3.9%
26.3%
0.0%
27.5%
3.2%
27.5%
19.4%
-
27.5%
19.4%
As at 30 September 2015, BRFkredit a/s met the supervisory diamond's benchmarks for concentration risk and loans with
short-term funding. BRFkredit did not meet the indicator for lending growth in respect of owner-occupied homes and
vacation homes calculated on a 4-quarter rolling basis. BRFkredit finds that the growth that primarily stems from the client
inflow following the merger with Jyske Bank does not pose any problems as loans are primarily granted to clients known to
the Group, and it is not cyclical growth. On an on-going basis, BRFkredit reviews the institution's position relative to the
indicators and expects to be compliant before they take effect in 2018 and 2020.
Additional information
For further information, please see www.jyskebank.info. Here you will find an interview with Sven A. Blomberg, Deputy Chief
Executive and Managing Director, detailed financial information as well as Jyske Bank's Annual Report 2014 and Risk and
Capital Management 2014, which give further information about Jyske Bank’s internal risk and capital management as well
as regulatory issues, including a description of the most important risks and elements of uncertainty that may affect Jyske
Bank.
Also, please see www.brf.dk. BRFkredit's interim financial report for the first nine months of 2015 and detailed financial
information about BRFkredit are available on that website.
Contact persons:
Sven A. Blomberg (+45 89 89 89 89)
Birger Krøgh Nielsen (+45 89 89 64 44)
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 24 of 54
Statement by the Executive and Supervisory Boards
We have today discussed and approved the Interim Financial Report of Jyske Bank A/S for the period 1 January to 30
September 2015.
The consolidated Interim Financial Statements were prepared in accordance with IAS 34 Interim Financial Reporting as
adopted by the EU, and the Parent’s Interim Financial Statements in accordance with the Danish Financial Business Act.
Further, the Interim Financial Report was prepared in accordance with the additional Danish disclosure requirements for
interim financial reports of listed financial companies.
The Interim Financial Report is unaudited and has not been reviewed.
In our opinion, the interim financial statements give a true and fair view of the Group’s and the Parent’s financial position
at 30 September 2015 and also of their financial performance as well as the cash flows of the Group for the period 1 January
to 30 September 2015.
In our opinion, the Management’s Review gives a fair presentation of the development in the Group's and the Parent’s
performance and financial position, the profit for the period and the Group’s and the Parent’s financial position as a whole
as well as a description of the most material risks and elements of uncertainty that may affect the Group and the Parent.
Silkeborg, 29 October 2015
EXECUTIVE BOARD
ANDERS DAM
Managing Director and CEO
NIELS ERIK JAKOBSEN
SVEN A. BLOMBERG
Deputy Chief Executive and Managing Director
LEIF F. LARSEN
PER SKOVHUS
/JENS BORUM
Director, Finance
SUPERVISORY BOARD
SVEN BUHRKALL
Chairman
RINA ASMUSSEN
PHILIP BARUCH
JESPER HOLBØLL
Employee Representative
KURT BLIGAARD PEDERSEN
Deputy Chairman
JENS A. BORUP
HAGGAI KUNISCH
Employee Representative
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
OLUF ENGELL
KELD NORUP
MARIANNE LILLEVANG
Employee Representative
Page 25 of 54
INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME
Note
DKKm
The Jyske Bank Group
Q3
Q3
2014
2015
Q1-Q3
2015
Q1-Q3
2014
10,174
4,522
5,652
7,689
3,048
4,641
3,249
1,424
1,825
3,412
1,554
1,858
INCOME STATEMENT
5
6
Interest income
Interest expenses
Net interest income
7
Fees and commission income
Fees and commission expenses
Net interest and fee income
1,640
302
6,990
1,363
230
5,774
464
93
2,196
447
88
2,217
8
9
10
Value adjustments
Other income
Employee and administrative expenses
Amortisation, depreciation and impairment charges
Loan impairment charges and provisions for guarantees
Pre-tax profit
-77
500
3,891
308
1,085
2,129
-46
3,280
3,795
320
1,489
3,404
-399
169
1,299
108
233
326
-16
266
1,276
95
495
601
Tax
Net profit or loss for the period
490
1,639
94
3,310
76
250
53
548
Attributable to:
Jyske Bank A/S shareholders
Non-controlling interests
Total
1,639
0
1,639
3,309
1
3,310
250
0
250
548
0
548
Earnings per share for the period
Earnings per share for the period, DKK
Earnings per share for the period, DKK, diluted
17.26
17.26
38.59
38.59
2.63
2.63
5.76
5.76
Net profit or loss for the period
Other comprehensive income:
Items that can be recycled to the income statement:
Foreign currency translation adjustment of international units
Hedge accounting of international units
Tax on hedge accounting
Other comprehensive income after tax
1,639
3,310
250
548
110
-110
26
26
55
-55
13
13
-60
60
-14
-14
23
-23
5
5
Comprehensive income for the period
1,665
3,323
236
553
Attributable to:
Jyske Bank A/S shareholders
Non-controlling interests
Total
1,665
0
1,665
3,322
1
3,323
236
0
236
553
0
553
12
11
STATEMENT OF COMPREHENSIVE INCOME
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 26 of 54
BALANCE SHEET
Note
30 Sept.
2015
The Jyske Bank Group
31 Dec.
30 Sept.
2014
2014
10,752
14,154
242,355
138,190
70,240
4,623
3,973
94
4,083
818
41,781
531,063
1,850
30,882
218,864
142,935
82,459
6,878
2,972
113
3,788
495
50,443
541,679
1,066
19,505
215,998
142,640
75,176
11,267
2,712
120
3,601
319
48,736
521,140
Liabilities
Due to credit institutions and central banks
Deposits
Issued bonds at fair value
Issued bonds at amortised cost
Other liabilities
Provisions
Subordinated debt
Liabilities, total
31,947
138,753
225,944
52,556
49,647
1,629
1,354
501,830
49,885
152,693
208,539
43,413
56,628
1,605
1,355
514,118
51,761
148,103
198,099
37,750
54,576
1,667
1,354
493,310
Equity
Share capital
Revaluation reserve
Retained profit
Non-controlling interests
Equity, total
Total equity and liabilities
950
380
27,903
0
29,233
531,063
950
380
26,231
0
27,561
541,679
950
361
26,486
33
27,830
521,140
13,654
17,354
31,008
13,218
14,636
27,854
13,031
2,322
15,353
DKKm
BALANCE SHEET
13.14
15
16
ASSETS
Cash balance and demand deposits with central banks
Due from credit institutions and central banks
Loans and advances at fair value
Loans and advances at amortised cost
Bonds at fair value
Bonds at amortised cost
Shares, etc.
Intangible assets
Property, plant and equipment
Tax assets
Other assets
Total assets
EQUITY AND LIABILITIES
17
18
19
20
21
OFF-BALANCE SHEET ITEMS
22
Guarantees, etc.
Other contingent liabilities, etc.
Total guarantees and other contingent liabilities
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 27 of 54
STATEMENT OF CHANGES IN EQUITY
The Jyske Bank Group
DKKm
Equity at 1 January 2015
Share
capital
950
RevaluaCurrency
tion translation
reserve
reserve
380
0
Retained
profit
26,231
Noncontrolling
Total
interests
27,561
0
Total
equity
27,561
Net profit or loss for the period
Other comprehensive income:
Foreign currency translation adjustment of
international units
Hedge accounting of international units
Tax on other comprehensive income
Other comprehensive income after tax
0
0
0
1,639
1,639
0
1,639
0
0
0
0
0
0
0
0
110
-110
0
0
0
0
26
26
110
-110
26
26
0
0
0
0
110
-110
26
26
Comprehensive income for the period
0
0
0
1,665
1,665
0
1,665
Acquisition of own shares
Sale of own shares
Transactions with shareholders
0
0
0
0
0
0
0
0
0
-1,927
1,934
7
-1,927
1,934
7
0
0
0
-1,927
1,934
7
Equity at 30 September 2015
950
380
0
27,903
29,233
0
29,233
Equity at 1 January 2014
713
361
0
16,372
17,446
33
17,479
Net profit or loss for the period
Other comprehensive income:
Foreign currency translation adjustment of
international units
Hedge accounting of international units
Tax on other comprehensive income
Other comprehensive income after tax
0
0
0
3,309
3,309
1
3,310
0
0
0
0
0
0
0
0
55
-55
0
0
0
0
13
13
55
-55
13
13
0
0
0
0
55
-55
13
13
Comprehensive income for the period
0
0
0
3,322
3,322
1
3,323
Capital increase
Expenses relating to capital increase
Acquisition of own shares
Sale of own shares
Adjustment of non-controlling interests
Transactions with shareholders
237
0
0
0
0
237
0
0
0
0
0
0
0
0
0
0
0
0
6,794
-7
-1,063
1,068
0
6,792
7,031
-7
-1,063
1,068
0
7,029
0
0
0
0
-1
-1
7,031
-7
-1,063
1,068
-1
7,028
Equity at 30 September 2014
950
361
0
26,486
27,797
33
27,830
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 28 of 54
CAPITAL STATEMENT
DKKm
30 Sept.
2015
The Jyske Bank Group
31 Dec.
30 Sept.
2014
2014
Equity
Share-buyback programme
Expected dividend
Intangible assets
Deferred tax liabilities relating to intangible assets
Cautious valuation
Deferred tax assets
Other deductions
Common Equity Tier 1 capital
29,233
-500
-500
-94
21
-314
-53
-79
27,714
27,561
0
0
-113
26
-256
-198
-64
26,956
27,830
0
0
-120
27
-262
-239
-65
27,171
Additional Tier 1 Capital after reduction
Other deductions
Core capital
907
-83
28,538
993
-57
27,892
993
-57
28,107
Subordinated loan capital after reduction
Difference between expected loss and the carrying amount of impairment charges
Collective impairment under the standardised approach
Other deductions
Capital base
405
722
0
-192
29,473
324
709
65
0
28,990
327
506
46
0
28,986
137,728
20,318
16,807
174,853
137,973
21,409
17,051
176,433
136,847
19,703
17,051
173,601
13,988
2,528
16,516
14,115
2,111
16,226
13,388
2,204
16,092
16.9
16.3
15.8
16.4
15.8
15.3
16.7
16.2
15.7
Weighted risk exposure involving credit risk etc.
Weighted risk exposure involving market risk
Weighted risk exposure involving operational risk
Total weighted risk exposure
Capital requirement, Pillar I
Capital requirement, transitional provisions
Capital requirement, total
Capital ratio (%)
Core Tier 1 Capital ratio (%)
Common Equity Tier 1 capital ratio (%)
Over the period 2008-2013, capital ratios were calculated in accordance with the CRD III (Basel II). On 30 September 2015, the total riskweighted exposure according to Basel I amounted to DKK 258,067m for the Jyske Bank Group. The capital requirement according to the
transitional provisions was for 80% of the capital requirement of 8% of the total weighted risk exposure corresponding to DKK 16,516m for the
Jyske Bank Group. At end-2014, the transitional provisions resulted in a capital requirement of DKK 16,226m for the Jyske Bank Group. The
transitional rules applying to total weighted risk exposure will still apply in the coming years.
For the determination of individual solvency requirement, please see www.jyskebank.info.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 29 of 54
SUMMARY OF CASH FLOW STATEMENT
DKKm
The Jyske Bank Group
Q1-Q3
Q1-Q3
2014
2015
1,639
3,310
-8,691
-7,052
-7,066
-3,756
Acquisition of property, plant and equipment
Acquisition of intangible assets
Cash flows from investment activities
-587
0
-587
-223
-49
-272
Capital increase
Acquisition of own shares
Sale of own shares
Addition and repayment of subordinated debt
Cash flows from financing activities
0
-1,927
1,934
0
7
7,031
-1,063
1,068
-309
6,727
Cash flow for the period
-7,632
2,699
Cash and cash equivalents, beginning of period
32,527
16,647
Cash and cash equivalents, end of period
24,895
19,346
Cash and cash equivalents, end of period, comprise:
Cash in hand, etc.
Due from credit institutions and central banks
Cash and cash equivalents, end of period
10,752
14,143
24,895
1,066
18,280
19,346
Net profit or loss for the period
Adjustment for non-cash operating items and change in working capital
Cash flows from operating activities
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 30 of 54
NOTES
Note
1
The Jyske Bank Group
Accounting Policies
The Interim Financial Report for the period 1 January to 30 September 2015 was prepared in accordance with IAS 34 Interim
Financial Reporting as adopted by the EU. Furthermore, the Interim Financial Report was prepared in accordance with the additional
Danish disclosure requirements for the interim reports of listed financial undertakings.
As from 1 January 2015, the Jyske Bank Group has implemented the standards and interpretations that take effect in the EU for 2015.
The implementation of these standards and interpretations did not have any material impact on recognition and measurement.
Changes to segment information
In 2015, the Group changed its business segments to better reflect all activities with respect to banking, mortgage finance and
leasing, inclusive of investing activities relating to clients' regular transactions. The investment portfolio earnings of the legal
entities will be related to the activities of the relevant entities. Comparative figures have been restated accordingly.
Banking activities
Banking activities cover advisory services relating to traditional financial solutions targeting personal and private banking clients as
well as corporate clients and trading and investment activities targeting large corporate clients and institutional clients, including
trading in interest-rate products, currencies, equities, commodities and derivatives. Investment portfolio earnings of Jyske Bank A/S
are allocated to Banking activities.
Mortgage activities
Mortgage activities comprise financial solutions for the financing of real property carried out by BRFkredit. Mortgage activities are
aimed mainly at Danish personal clients, corporate clients and subsidised housing and construction. Investment portfolio earnings of
BRFkredit a/s are allocated to Mortgage activities.
Leasing activities
Leasing activities cover financial solutions in the form of leasing and financing within car financing as well as leasing and financing of
equipment for the corporate sector. The activities primarily target Danish personal and corporate clients as well as dealer
cooperation schemes and partnerships.
Moreover, the accounting policies are identical to those applied to and described in detail in the Annual Report 2014.
At the time of publication of this Interim Financial Report, a number of new or amended standards and interpretations had not come
into force or been approved for use in the EU. In the following are set out the standards which are expected to have a material effect
on the financial reporting of the Jyske Bank Group.

2
IFRS 9 on financial assets covers classification and measurement of financial assets and liabilities, impairment of financial
assets as well as hedge accounting. The IASB completed the IFRS 9 in July 2014, but the standard has not been approved by the
EU. Compared to the current standard, IFRS 9 will, among other things, entail earlier recognition of loan impairment charges at
amortised cost, as already at the time of the first recognition, impairment charges corresponding to the expected credit loss
over 12 months must be recognised. If, subsequently, the probability of loss on the loan increases materially, the expected
credit loss over the term must under certain circumstances be recognised. The IFRS 9 stipulations about loan impairment
charges do not cover loans and advances, including mortgage loans, that are measured at fair value, and they are not expected
to imply any material changes to the process and method of valuation of loans and advances at fair value. It has not been
possible to make a comprehensive assessment of the standard's effect on the Jyske Bank Group. It is expected that the standard
will take effect from 1 January 2018, but it is possible to implement it before that date.
Material accounting estimates
Measurement of the carrying value of certain assets and liabilities requires the management's estimate of the influence of future
events on the value of such assets and liabilities. Estimates of material importance to the financial reporting are, among other things,
based on the impairment of loans and advances, the fair value of unlisted financial instruments and provisions already made, cf. the
detailed statement in the Annual Report 2014. The estimates are based on assumptions which management finds reasonable, but
which are inherently uncertain. Besides, the Group is subject to risks and uncertainties which may cause results to differ from those
estimates.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 31 of 54
NOTES
The Jyske Bank Group
Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014
3
Key figures and ratios, five quarters
Summary of Income Statement
Net interest income
Net fee and commission income
Value adjustments
Other income
Income
Expenses
Profit or loss before loan impairment charges
Loan impairment charges and provisions for guarantees
Pre-tax profit
Tax
Net profit or loss for the period
Financial ratios and key figures
Pre-tax profit, per share (DKK)
Earnings per share for the period (DKK)
Earnings per share for the period (diluted) (DKK)
Core profit per share (DKK)
Share price at end of period (DKK)
Book value per share (DKK)
Price/book value per share (DKK)
Outstanding shares in circulation (‘000)
Average number of shares in circulation ('000)
Capital ratio (%)
Core Tier 1 Capital ratio (%)
Common Equity Tier 1 capital ratio (%)
Pre-tax profit as a pct. of average equity
Profit for the period as a pct. of av. equity
Income/cost ratio (%)
Interest-rate risk (%)
Currency risk (%)
Accumulated impairment ratio (%)
Impairment ratio for the period (%)
No. of full-time employees at end-period
Average number of full-time employees in the period
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
1,825
371
-399
169
1,966
1,407
559
233
326
76
250
1,959
351
469
180
2,959
1,374
1,585
284
1,301
305
996
1,868
616
-147
151
2,488
1,418
1,070
568
502
109
393
1,974
626
-607
173
2,166
1,418
748
1,049
-301
-80
-221
1,858
359
-16
266
2,467
1,371
1,096
495
601
53
548
3.4
2.6
2.6
3.7
369
308
1.2
95,000
95,004
16.9
16.3
15.8
1.1
0.9
1.2
1.1
0.1
1.7
0.1
4,102
4,143
13.7
10.5
10.5
12.4
336
305
1.1
94,996
94,955
17.1
16.5
16.1
4.6
3.5
1.8
1.2
0.0
1.7
0.1
4,112
4,140
5.3
4.1
4.1
3.3
293
295
1.0
94,918
94,961
16.3
15.7
15.3
1.8
1.4
1.3
0.1
0.0
1.7
0.1
4,168
4,180
-3.2
-2.3
-2.3
-1.6
313
290
1.1
94,988
94,987
16.4
15.8
15.3
-1.1
-0.8
0.9
-0.5
0.0
1.7
0.3
4,191
4,240
6.3
5.8
5.8
5.4
319
293
1.1
94,993
94,981
16.7
16.2
15.7
2.2
2.0
1.3
-0.5
0.0
1.5
0.1
4,289
4,321
Page 32 of 54
NOTES
The Jyske Bank Group
Note
DKKm
4
Segment information
Banking
activities
Mortgage
activities
Leasing
activities
The Jyske Bank Group
2,757
1,215
396
147
0
4,515
3,135
1,357
173
-272
25
0
1,283
697
339
-49
11
8
68
377
121
4,453
1,339
135
180
68
6,175
3,953
1,380
586
256
2,222
361
1,019
236
1,255
21
565
52
617
-1
257
0
257
381
1,841
288
2,129
Loans and advances
- of which mortgage loans
- of which bank loans
- of which repo loans
Total assets
125,098
0
96,823
28,275
252,819
242,355
242,355
0
0
263,175
13,092
0
13,092
0
15,069
380,545
242,355
109,915
28,275
531,063
Deposits
- of which bank deposits
- of which repo deposits
Issued bonds
138,531
125,259
13,272
47,840
0
0
0
230,660
222
222
0
0
138,753
125,481
13,272
278,500
2,894
1,106
272
2,981
0
7,253
3,377
670
51
-78
8
0
651
379
323
-22
14
7
58
380
134
3,887
1,135
208
2,996
58
8,284
3,890
3,876
272
246
-2
4,394
1,220
2,656
224
2,880
18
254
22
276
248
0
248
1,236
3,158
246
3,404
Loans and advances
- of which mortgage loans
- of which bank loans
- of which repo loans
Total assets
127,326
0
102,220
25,106
253,590
219,017
215,998
3,019
0
253,653
12,295
0
12,295
0
13,897
358,638
215,998
117,534
25,106
521,140
Deposits
- of which bank deposits
- of which repo deposits
Issued bonds
142,818
123,191
19,627
32,378
5,041
5,041
0
203,471
244
244
0
0
148,103
128,476
19,627
235,849
Q1 - Q3 2015
Net interest income
Net fee and commission income
Value adjustments
Other income
Income from operating lease
Core income
Core expenses
Core profit before loan impairment
charges and provisions for guarantees
Loan impairment charges and provisions
for guarantees
Core profit
Investment portfolio earnings
Pre-tax profit
Q1 - Q3 2014
Net interest income
Net fee and commission income
Value adjustments
Other income
Income from operating lease
Core income
Core expenses
Core profit before loan impairment
charges and provisions for guarantees
Loan impairment charges and provisions
for guarantees
Core profit
Investment portfolio earnings
Pre-tax profit
Mortgage activities were included in the income statement as of 1 May 2014 and in the balance sheet as of the end of the second
quarter 2014.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 33 of 54
NOTES
Note
DKKm
4
Q1-Q3
2015
The Jyske Bank Group
Q1-Q3
2014
Full-time
employees,
end of
period
3,979
22
92
9
0
0
4,102
Full-time
employees,
end of
period
4,131
45
92
9
12
0
4,289
Segment information, cont.
Revenue by country
Denmark
Switzerland
Gibraltar
Germany
The Netherlands
Spain
Total
Revenue
12,109
46
62
36
0
0
12,253
Revenue
12,050
65
55
45
11
0
12,226
Revenue is defined as interest income, fee and commission income and also other operating income.
Jyske Bank has activities in the countries stated below in the form of subsidiaries or branches. The names of the subsidiaries appear
from the group chart.
Activities in individual countries:
Denmark: The Jyske Bank Group has activities within banking and mortgage banking, trading and wealth management advice as well
as leasing.
Switzerland: The Jyske Bank Group has activities within banking as well as trading and wealth management advice.
Gibraltar: The Jyske Bank Group has activities within banking as well as trading and wealth management advice.
Germany: The Jyske Bank Group has activities within banking.
The Netherlands: In 2014, the Jyske Bank Group (60% of the shares) sold its stake in the investment company Berben’s
Effectenkantoor B.V. in the Netherlands; this company has activities within investment management.
Spain: The Jyske Bank Group has activities within properties.
DKKm
5
6
The Jyske Bank Group
Q1-Q3
Q1-Q3
2014
2015
Interest income
Due from credit institutions and central banks
Loans and advances
Contribution
Bonds
Derivatives, total
Of which:
Currency contracts
Interest-rate contracts
Other
Interest income before offsetting of interest against own mortgage bonds
Interest on own bonds, set off against interest on issued bonds
Total
-25
7,894
1,170
1,364
209
23
5,836
601
1,276
173
277
-68
8
10,620
446
10,174
179
-6
5
7,914
225
7,689
Interest expenses
Due to credit institutions and central banks
Deposits
Issued bonds
Subordinated debt
Other
Interest income before offsetting of interest against own mortgage bonds
Interest on own bonds, set off against interest on issued bonds
Total
-56
274
4,624
20
106
4,968
446
4,522
109
524
2,583
31
26
3,273
225
3,048
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 34 of 54
NOTES
Note
DKKm
7
8
9
Fees and commission income
Securities trading and custody services
Money transfers and card payments
Loan management fees
Guarantee commission
Other fees and commissions
Total
Value adjustments
Loans and advances at fair value
Bonds
Other investment securities
Currency
Currency, interest-rate, share, commodity and other contracts as well as other derivatives
Issued bonds
Other assets and liabilities
Total
Other income
Income on real property
Profit from the sale of subsidiary
Gain from a bargain purchase relating to business combinations
Income from operating lease¹
Dividends, etc.
Profit on investments in associates and group enterprises
Other income
Total
The Jyske Bank Group
Q1-Q3
Q1-Q3
2014
2015
982
135
223
155
145
1,640
758
136
135
141
193
1,363
-3,772
-358
246
270
259
3,803
-525
-77
1,207
115
484
200
-671
-1,449
68
-46
54
0
0
309
56
5
76
500
53
296
2,360
274
71
35
191
3,280
¹) Expenses relating to operating lease affected the item Amortisation, depreciation and impairment charges in the amount of DKK
241m in the first nine months of 2015 against DKK 216m in the corresponding period of 2014.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 35 of 54
NOTES
Note
DKKm
10
The Jyske Bank Group
Q1-Q3
Q1-Q3
2014
2015
Employee and administrative expenses
Employee expenses
Wages and salaries, etc.
Pensions
Social security
Total
1,825
241
225
2,291
1,727
232
204
2,163
22
3
2
27
23
3
1
27
Other administrative expenses
IT
Other operating expenses
Other administrative expenses
Total
863
136
574
1,573
806
246
553
1,605
Total
3,891
3,795
23.5
-0.5
23.0
24.5
-21.7
2.8
Salaries and remuneration to management bodies
Executive Board¹
Supervisory Board
Shareholders' Representatives
Total
¹I The Executive Board had an average of 5.0 members in the first nine months of 2015 (first
nine months of 2014: an average of 5.4 members).
11
Effective tax rate
Corporation tax rate in Denmark
Non-taxable income and non-deductible expenses, etc.
Total
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 36 of 54
NOTES
Note
12
DKKm
Loan impairment charges and provisions for guarantees, incl. balance of discounts
Balance of loan impairment charges and provisions for guarantees incl. balance of
discounts, beginning of period
Loan impairment charges/provisions for the period
Recognised as a loss, covered by impairment charges/provisions
Discount for acquired assets in connection with business combinations
Other additions of discount for acquired assets
Recognised losses covered by discounts for acquired assets
Recognised discount for acquired assets
Other movements
Balance of loan impairment charges and provisions for guarantees incl. balance of
discounts, end of period
The Jyske Bank Group
Q1-Q3
Q1-Q3
2014
2015
8,985
835
-538
0
46
-89
-704
105
5,600
1,216
-462
2,717
0
-347
-253
98
8,640
8,569
Loan impairment charges
Provisions for guarantees
Balance of loan impairment charges and provisions, end of period
Balance of discounts for acquired assets
Balance of loan impairment charges and provisions for guarantees incl. balance of
discounts, end of period
6,279
483
6,762
1,878
5,016
529
5,545
3,024
8,640
8,569
Loan impairment charges/provisions for the period
Recognised as a loss, not covered by loan impairment charges/provisions
Recoveries
Loan impairment charges and provisions for guarantees recognised in the income
statement
Recognised discount for acquired assets
Net effect on income statement
835
401
-151
1,216
333
-60
1,085
-704
381
1,489
253
1,236
Individual loan impairment charges, beginning of period
Loan impairment charges for the period
Recognised as a loss, covered by impairment charges/provisions
Other movements
Individual loan impairment charges, end of period
4,232
733
-528
79
4,516
3,386
786
-455
75
3,792
474
-67
-10
397
364
101
-7
458
1,570
167
26
1,763
863
338
23
1,224
Collective provisions for loss on guarantees, beginning of period
Provisions for the period
Collective provisions for loss on guarantees, end of period
84
2
86
80
-9
71
Impairment charges on balances due from credit institutions
Individual impairment charges on balances due from credit institutions, beginning of
period
Loan impairment charges for the period
Individual impairment charges on balances due from credit institutions, end of
period
15
0
15
0
15
15
Individual provisions for loss on guarantees, beginning of period
Provisions for the period
Recognised as a loss, covered by provisions
Individual provisions for loss on guarantees, end of period
Collective loan impairment charges, beginning of period
Loan impairment charges for the period
Other movements
Collective loan impairment charges, end of period
The regulatory balance of loan impairment charges and provisions for guarantees does not include the discount balance for acquired
loans and advances.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 37 of 54
NOTES
Note
13
The Jyske Bank Group
31 Dec.
30 Sept.
2014
2014
DKKm
30 Sept.
2015
Loans and advances at fair value
Mortgage loans, nominal value
Adjustment for interest-rate risk, etc.
Adjustment for credit risk¹
Mortgage loans at fair value, total
238,387
4,797
-1,431
241,753
211,355
8,474
-1,544
218,285
208,014
8,928
-1,576
215,366
Arrears and outlays, total
46
60
107
Other loans and advances
556
519
525
242,355
218,864
215,998
116,318
6,205
44,299
14,632
27,387
1,447
29,257
38
2,714
58
242,355
96,995
5,507
44,503
14,533
24,876
1,451
28,432
29
2,513
25
218,864
94,503
5,367
42,502
14,660
25,971
2,302
27,924
33
2,717
19
215,998
6,964
10,040
8,447
8,415
6,958
4,415
3,094
8,876
3,850
597
36,114
9,463
6,753
88,535
8,874
6,774
4,539
2,676
8,455
4,304
560
30,745
9,451
7,273
83,651
9,099
6,859
4,190
2,916
8,793
4,407
595
31,080
10,186
8,041
86,166
56,345
151,844
62,462
156,153
61,058
155,671
Loans and advances at fair value, total
¹Adjustment for credit risk is calculate so it allows for objective evidence whether loans and
advances are impaired compared to the time of the establishment of the loans and
advances.
14
15
Loans and advances at fair value broken down by property category
Owner-occupied homes
Vacation homes
Subsidised housing (rental housing)
Cooperative Housing
Private rental properties (rental housing)
Industrial properties
Office and business properties
Agricultural properties
Properties for social, cultural and educational purposes
Other properties
Total
Loans and advances at amortised cost and guarantees broken down by sector
Public authorities
Agriculture, hunting, forestry, fishing
Manufacturing, mining, etc.
Energy supply
Building and construction
Commerce
Transport, hotels and restaurants
Information and communication
Finance and insurance
Real property
Other sectors
Corporates, total
Personal clients, total
Total
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 38 of 54
NOTES
Note
DKKm
16
30 Sept.
2015
The Jyske Bank Group
31 Dec.
30 Sept.
2014
2014
Other assets
Positive fair value of derivatives
Assets in pooled deposits
Interest and commission receivable
Investments in associates
Assets in temporary possession
Prepayments
Investment properties
Other assets
Total
33,521
4,457
853
335
559
344
27
1,685
41,781
40,542
4,656
1,888
753
376
281
27
1,920
50,443
38,381
4,651
2,393
737
374
282
37
1,881
48,736
Netting
Positive fair value of derivatives, etc., gross
Netting of positive and negative fair value
Total
38,568
5,047
33,521
45,616
5,074
40,542
42,312
3,931
38,381
Deposits
Demand deposits
Term deposits
Time deposits
Special deposits
Pooled deposits
Total
90,825
6,371
29,539
7,522
4,496
138,753
84,287
8,265
47,090
8,161
4,890
152,693
81,277
9,211
44,526
8,325
4,764
148,103
Issued bonds at fair value
Issued bonds at fair value, nominal value
Adjustment to fair value
Own mortgage bonds offset, fair value
Total
265,229
4,643
-43,928
225,944
280,051
10,311
-81,823
208,539
235,680
9,563
-47,144
198,099
Other liabilities
Set-off entry of negative bond holdings in connection with repos/reverse repos
Negative fair value of derivatives, etc.
Interest and commission payable
Deferred income
Other liabilities
Total
4,614
33,801
3,171
331
7,730
49,647
3,956
41,577
4,177
311
6,607
56,628
3,376
38,831
4,801
330
7,238
54,576
Netting
Negative fair value of derivatives, etc., gross
Netting of positive and negative fair value
Total
35,848
5,047
30,801
46,651
5,074
41,577
42,762
3,931
38,831
521
413
483
212
1,629
505
280
558
262
1,605
447
348
529
343
1,667
Netting of fair value can be attributed to clearing of derivatives through a central clearing
house (CCP clearing).
17
18
19
Netting of fair value can be attributed to clearing of derivatives through a central clearing
house (CCP clearing).
20
Provisions
Provisions for pensions and similar liabilities
Provisions for deferred tax
Provisions for guarantees
Other provisions
Total
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 39 of 54
NOTES
Note
DKKm
21
The Jyske Bank Group
31 Dec.
30 Sept.
2014
2014
Subordinated debt
Supplementary capital:
6.73% bond loan EUR 15m 2017-2026
Var. % bond loan EUR 10m 13.02.2023
5.65% bond loan EUR 10 m 27.03.2023
5.67% bond loan EUR 10 m 31.07.2023
Deposit account, Husejernes kreditkasse
112
75
74
74
0
112
75
74
74
0
112
75
74
74
2
335
335
337
541
452
541
452
541
452
993
993
993
Subordinated debt, nominal
Hedging of interest-rate risk, fair value
1,328
26
1,328
27
1,330
24
Total
1,354
1,355
1,354
Subordinated debt included in the capital base
1,312
1,317
1,320
8,739
2,172
953
1,790
6,994
3,806
828
1,590
7,021
3,733
568
1,709
Total
13,654
13,218
13,031
Other contingent liabilities
Irrevocable credit commitments
Other
17,216
138
14,474
162
2,162
160
Total
17,354
14,636
2,322
Hybrid core capital:
Var. % bond loan EUR 72.8m Perpetual
Var. % bond loan EUR 60.7m Perpetual
22
30 Sept.
2015
Contingent liabilities
Guarantees
Financial guarantees
Guarantee for losses on mortgage credits
Registration and refinancing guarantees
Other contingent liabilities
Financial guarantees are primarily payment guarantees, and the risk equals that involved in credit facilities.
Guarantees for losses on mortgage loans are typically provided as security for the most risky part of mortgage loans granted to
personal clients and to a limited extent for loans secured on commercial real property. Guarantees for residential real property are
within 80% and for commercial real property within 60%-80%, of the property value as assessed by a professional expert.
Registration and refinancing guarantees are provided in connection with the registration of new and refinanced mortgages. Such
guarantees involve insignificant risk.
Other contingent liabilities include other forms of guarantees at varying degrees of risk, including performance guarantees. The
risk involved is deemed to be less than the risk involved in, e.g., credit facilities subject to flexible drawdown.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 40 of 54
NOTES
Note
The Jyske Bank Group
DKKm
22
Contingent liabilities, cont.
Jyske Bank is also a party to a number of legal disputes arising from its business activities. Jyske Bank estimates the risk involved in
each individual case and makes any necessary provisions which are recognised under contingent liabilities. Jyske Bank does not
expect such liabilities to have material influence on Jyske Bank’s financial position.
Due to the participation in the compulsory Deposit Guarantee Fund, the sector pays an annual contribution of 2.5 per mille of the
covered net deposits. The payment into Pengeinstitutafdelingen (the financial institution fund) will continue until the assets of
Pengeinstitutafdelingen exceed 1% of the total covered net deposits, which is expected to be the case at end-2015. According to Bank
Package 3 and Bank Package 4, Pengeinstitutafdelingen bears the immediate losses attributable to covered net deposits and relating
to the winding up of financial institutions in distress. Any losses in connection with the final winding up are covered by the Guarantee
Fund's Afviklings- og Restruktureringsafdeling (settlement and restructuring fund), where Jyske Bank currently guarantees 6.81% of
any losses.
Participation in the statutory resolution financing arrangements (Resolution Fund) as of June 2015 entailed that credit institutions
pay an annual contribution over a 10-year period to a Danish national fund with a target size totalling 1% of the covered deposits.
Credit institutions are to contribute according to their relative sizes and risk in Denmark, and the first contributions to the Resolution
Fund are payable at end-2015.
Jyske Bank is a management company under Danish joint taxation. Therefore, according to the provisions of the Danish Company
Taxation, Jyske Bank is liable as of the accounting year 2013 for corporation tax, etc. for the jointly taxed companies and as of 1 July
2012 for any liabilities to withhold tax on interest and dividends for the jointly taxed companies.
23
Shareholders
On 30 April 2014, BRFholding a/s, Kgs. Lyngby, Danmark informed Jyske Bank that it owns 25.00% of the share capital.
On 19 October 2012, MFS Investment Management, USA reported that it owns 5.14% of the share capital.
24
Related parties
Jyske Bank is the banker of a number of related parties. Transactions between related parties are characterised as ordinary financial
transactions and services of an operational nature. Transactions with related parties were executed on an arm’s length basis or at
cost.
Over the period, there were no unusual transactions with related parties. Please see Jyske Bank's Annual Report 2014 for a detailed
description of transactions with related parties.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 41 of 54
NOTES
Note
25
The Jyske Bank Group
Notes on fair value
Methods for measuring fair value
Fair value is the price that, at the time of measurement, would be obtained by selling an asset or paid for by transferring a liability in
an ordinary transaction between independent market participants. The fair value may equal the book value where book value is
recognised on the basis of underlying assets and liabilities measured at fair value.
For all assets listed on active markets, fair values are measured at official prices (the category "Quoted prices". Where no price is
quoted, a different official price is used which is taken to reflect most closely the fair value (category: "Observable prices". Financial
assets and liabilities, whose quoted prices or other official prices are not available or are not taken to reflect the fair value, are
measured at fair value according to other evaluation techniques and other observable market information. In those cases where
observable prices based on market information are not available or are not taken to be useful for measuring fair value, the fair value
is measured by recognised techniques, including discounted future cash flows, and own expertise (category "non-observable
prices").. The basis of the measurement may be recent transactions involving comparable assets or liabilities, interest rates,
exchange rates, volatility, credit spreads, etc. Generally, the Group's unlisted shares are placed in this category.
Generally, quoted prices and observable input are obtained in the form of interest rates and equity and bond prices, exchange rates,
forward premiums, volatilities, etc. from recognised stock exchanges and providers.
Specific details on methods for measuring fair value
Bonds at fair value, shares, assets linked to pooled deposits, and derivatives are measured at fair value in the accounts to the effect
that the carrying amounts equal fair values.
Generally bonds are measured at prices quoted on a recognised stock exchange. Alternatively, prices are applied that are calculated
on the basis of Jyske Bank's own measurement models based on a yield curve with a credit spread. Essentially, the calculated prices
are based on observable input.
Generally equities, etc. are measured at prices quoted on a recognised stock exchange. Alternatively, prices are applied that are
calculated on the basis of Jyske Bank's own measurement models based on observable input, shareholders' agreements, executed
transactions, etc. Unlisted equities are measured on the basis of discounted cash flow models (DCF).
Derivatives are measured on the basis of the following measurement techniques.

Forward exchange transactions are measured on the basis of forward premiums as well as exchange rates obtained.

Interest-rate and currency swaps are measured on the basis of exchange rates, interest points, interpolation between these,
exchange rates as well as correction of credit risk (CVA and DVA). Client margins are amortised over the remaining time to
maturity. Present value calculations with discounting is applied.

Futures are measured on the basis of prices obtained in the market for stock-exchange traded futures.

Options are measured on the basis of volatilities, correlation matrices, prices of underlying assets and exercise prices. For this
purpose, option models, such as Black-Scholes, are applied.
Assets related to pooled deposits are measured according to the above principles.
Information about differences between recognised value and measurement of fair value
Loans and advances exclusive of mortgage loans are recognised at amortised cost. The difference to fair value is assumed to be fee
and commission received, costs defrayed in connection with lending, plus interest-rate-dependent value adjustment calculated by
comparing current market rates with market rates at the time when the loans and advances were established. Changes in credit
quality are assumed to be included under impairment charges both for carrying amounts and fair values.
Subordinated debt and issued bonds exclusive of issues of mortgage bonds are recognised at amortised cost supplemented with the
fair value of the hedged interest-rate risk. The difference to fair value was calculated on the basis of own-issue prices obtained
externally.
Deposits are recognised at amortised cost. The difference to fair value is assumed to be the interest-rate dependent value
adjustment calculated by comparing current market rates with market rates at the time when the deposits were made.
Balances with credit institutions are recognised at amortised cost. The difference to fair value is assumed to be the interest-rate
dependent value adjustment calculated by comparing current market rates with market rates at the time when the transactions
were established. Changes in the credit quality of balances with credit institutions are assumed to be included under impairment
charges for loans, advances, and receivables. Changes in the fair values of balances due to credit institutions because of changes in
Jyske Bank’s own credit rating are not taken into account.
The calculated fair values of financial assets and liabilities recognised at amortised cost are materially non-observable prices (level 3)
in the fair value hierarchy.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 42 of 54
NOTES
Note
The Jyske Bank Group
DKKm
25
Notes on fair value, cont.
Information about changes in credit risk on derivatives with positive fair value.
In order to allow for the credit risk on derivatives for clients without objective evidence of impairment (OEI), the fair value is adjusted
(CVA). Adjustments will also be made for clients with OEI, but on an individual basis.
For any given counterparty's total portfolio of derivatives, CVA is a function of the probability of the counterparty's probability of
default (PD), the expected positive exposure (EPE) as well as the loss given default (LGD). Credit default swaps (CDS) spreads should
be used as the primary source for the probability of default in the CVA calculation. However, the Jyske Bank Group enters primarily to
derivatives transactions with unlisted Danish counterparties, for which there only to a most limited extent exist CDS or CDS proxy
spreads. As CDS spreads are not available for the majority of the portfolio of derivatives counterparties, risk-neutral PDs are used
instead. The risk-neutral PDs are calculated on the basis of IRB PDs that are adjusted for the observable price of risk in the market
(Sharpe Ratio measured on the basis of the OMX C20 index). By using risk-neutral PDs, it is achieved that the CVA gets closer to the
value it would have had if it had been calculated on the basis of market observable PDs. The calculation of CVA also allows for the
expected development of the rating over time. This takes place on the basis of historical rating migrations. When determining the
EPE, a model is used to establish the expected positive exposure to the counterparty's portfolio over the maturity of the derivatives.
For LGD, internal estimates are used for the individual counterparty, adjusted for any collateral received as well as CSA agreements
concluded.
In addition to CVA, also an adjustment is made of the fair value of derivatives that have an expected future negative fair value. This
takes place to allow for changes in the counterparties' credit risk against the Jyske Bank Group (debt valuation adjustment - DVA).
The DVA takes place according to the same principles that apply to the CVA, yet PD for Jyske Bank is determined on the basis of Jyske
Bank's external rating by Standard & Poor's. At the end of the third quarter of 2015, CVA and DVA amounted net to DKK 48m, which
amount was recognised as an expense under value adjustment.
26
Fair value of financial assets and liabilities
The recognised value and fair value of assets classified as held-for-trading amounted to DKK 150.1bn at the end of the third quarter
of 2015 against DKK 160.4bn at end-2014. The recognised value and fair value of liabilities classified as trading portfolio amounted
to DKK 63.9bn at the end of the third quarter of 2015 against DKK 79.4bn at end-2014. The recognised value and fair value of assets
classified as held-to-maturity amounted to DKK 4.6bn and DKK 4.8bn, respectively, at the end of the third quarter of 2015 against
DKK 6.9bn and 7.1bn, respectively, at end-2014. The Group does not hold any assets classified as available-for-sale. The table shows
the fair value of financial assets and liabilities and the carrying amounts.
The re-statement at fair value of financial assets and liabilities shows a total non-recognised unrealised loss of DKK 213m
at the end of the third quarter of 2015 against a loss of DKK 404m at end-2014.
31 Dec.
30 Sept.
2014
2015
Carrying
Fair
Carrying
Fair
amount
value
FINANCIAL ASSETS
amount
value
Cash balance and demand deposits with central banks
1,850
1,850
10,752
10,752
Due from credit institutions and central banks
30,882
30,883
14,154
14,154
Loans and advances at fair value
218,864
218,864
242,355
242,355
Loans and advances at amortised cost
142,935
143,005
138,190
138,313
Bonds at fair value
82,459
82,459
70,240
70,240
Bonds at amortised cost
6,878
7,124
4,623
4,791
Shares, etc.
2,972
2,972
3,973
3,973
Assets in pooled deposits
4,656
4,656
4,457
4,457
Derivative financial instruments
40,542
40,542
33,521
33,521
532,038
532,355
Total
522,265
522,556
FINANCIAL LIABILITIES
Due to credit institutions and central banks
Deposits
Pooled deposits
Issued bonds at fair value
Issued bonds at amortised cost
Subordinated debt
Derivative financial instruments
Total
31,947
134,257
4,496
225,944
52,556
1,354
33,801
484,355
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
31,984
134,325
4,496
225,944
53,248
1,061
33,801
484,859
49,885
147,803
4,890
208,539
43,413
1,355
41,577
497,462
49,921
147,951
4,890
208,539
44,266
1,039
41,577
498,183
Page 43 of 54
NOTES
Note
The Jyske Bank Group
DKKm
27
The fair value hierarchy
30 September 2015
Financial assets
Loans and advances at fair value
Bonds at fair value
Shares, etc.
Assets in pooled deposits
Derivative financial instruments
Total
Quoted
prices
0
58,247
2,181
3,059
797
64,284
Observable
prices
242,355
11,993
1
1,398
32,724
288,471
Nonobservable
prices
0
0
1,791
0
0
1,791
Fair value
total
242,355
70,240
3,973
4,457
33,521
354,546
Carrying
amount
242,355
70,240
3,973
4,457
33,521
354,546
Financial liabilities
Pooled deposits
Issued bonds at fair value
Derivative financial instruments
Total
0
207,436
742
208,178
4,496
18,508
33,059
56,063
0
0
0
0
4,496
225,944
33,801
264,241
4,496
225,944
33,801
264,241
Financial assets
Loans and advances at fair value
Bonds at fair value
Shares, etc.
Assets in pooled deposits
Derivative financial instruments
Total
0
71,106
1,315
3,187
209
75,817
218,864
11,353
26
1,469
40,333
272,045
0
0
1,631
0
0
1,631
218,864
82,459
2,972
4,656
40,542
349,493
218,864
82,459
2,972
4,656
40,542
349,493
Financial liabilities
Pooled deposits
Issued bonds at fair value
Derivative financial instruments
Total
0
190,221
346
190,567
4,890
18,318
41,231
64,439
0
0
0
0
4,890
208,539
41,577
255,006
4,890
208,539
41,577
255,006
31 December 2014
The above table shows the fair value hierarchy for financial assets and liabilities recognised at fair value.
It is the practice of the Group that if prices are not updated for two days, transfers will take place between the categories quoted
prices and observable prices. No considerable transfers took place between the three categories in the first nine months of 2015, nor
in 2014.
NON-OBSERVABLE PRICES
Fair value, beginning of period
Capital gain and loss for the period reflected in the income statement under value adjustments
Capital gain and loss of the period reflected in other comprehensive income
Sales or redemptions
Purchases and additions during the period
Fair value, end of period
Q1-Q3
2015
1,631
66
0
16
110
1,791
2014
1,170
430
0
581
612
1,631
Non-observable prices
Non-observable prices at the end of the third quarter of 2015 referred to unlisted shares recognised at DKK 1,791m against unlisted
shares recognised at DKK 1,631m at end-2014. These are primarily sector shares. Measurements associated with some uncertainty
are made on the basis of the shares' book value, market trades as well as own assumptions and
extrapolations, etc. In the cases where Jyske Bank calculates the fair value on the basis of the company's expected future earnings, a
required rate of return of 15% p.a. before tax is applied. A change in the required rate of return of 1% will result in a change of the fair
value of about DKK 30m. Capital gain and loss for the period on illiquid bonds and unlisted shares referred to assets held at the end of
the third quarter of 2015. Jyske Bank finds it of little probability that the application of alternative prices in the measurement of fair
value would result in a material deviation from the recognised fair value.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 44 of 54
NOTES
Note
The Jyske Bank Group
DKKm
28
The Jyske Bank Group - overview
30 September 2015
Jyske Bank A/S
Consolidated subsidiaries
BRFkredit a/s, Kgs. Lyngby
Investeringsselskabet af 18. maj
2015 A/S¹
Ejendomsselskabet Nørreport 26,
8000 Århus C. A/S, Aarhus
Ejendomsselskabet
Nørregaardsvej, 37-41, 2800 Kgs.
Lyngby A/S, Kgs. Lyngby
Jyske Bank (Gibraltar) Ltd.
Jyske Bank (Gibraltar) Nominees
Ltd.
Jyske Bank (Gibraltar)
Management Ltd.
Jyske Bank (Gibraltar) Secretaries
Ltd.
Trendsetter, S.L., Spain
Jyske Bank Nominees Ltd., London
Jyske Bank (Schweiz) AG
Inmobiliaria Saroesma S.L., Spain
Jyske Finans A/S
Gl. Skovridergaard A/S
Sundbyvesterhus A/S
Share
Activ- Curcapital
ity* rency 1,000 units
a
DKK
950,400
b
DKK
1,306,480
d
DKK
e
Ownership
share
(%)
Voting
share
%
Assets
DKKm
End2014
Liabilities
DKKm
end2014
Equity Earnings
DKKm,
DKKm
end2014
2014
Profit,
DKKm
2014
316,258 288,697
27,561
8,491
3,088
100
100 256,145 245,061
11,084
2,690
-287
425,000
100
100
6,256
5,369
887
183
-171
DKK
4,600
100
100
89
6
83
5
3
e
a
DKK
GBP
2,600
26,500
100
100
100
100
6
4,412
0
3,733
6
679
0
113
0
2
d
GBP
0
100
100
0
0
0
0
0
d
GBP
0
100
100
0
0
0
0
0
d
e
d
a
e
c
e
e
GBP
EUR
GBP
CHF
EUR
DKK
DKK
DKK
0
706
0
60,000
773
100,000
16,000
518
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
0
10
0
1,807
81
14,078
26
88
0
0
0
1,162
69
12,806
11
13
0
10
0
645
12
1,272
15
75
0
0
0
92
0
795
21
5
0
0
0
-1
-4
268
-1
2
All banks and mortgage credit institutions supervised by national financial supervisory authorities are subject to statutory capital
requirements. Such capital requirements may limit intra-group facilities and dividend payments.
¹) in connection with the transfer of banking activities to Jyske Bank A/S, BRFkredit Bank a/s changed its name to Investeringsselskabet af 18.
maj 2015 A/S. The future activities of the company will be investment and financing.
* Activity:
a: Bank
b: Mortgage credit
c: Leasing, financing and factoring
d: Investment and financing
e: Properties and course activities
The registered offices of the companies are in Silkeborg, unless otherwise stated.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 45 of 54
JYSKE BANK A/S
Note
Q1-Q3
2015
Jyske Bank
Q1-Q3
2014
Interest income
Interest expenses
Net interest income
3,684
510
3,174
4,146
936
3,210
Dividends, etc.
Fees and commission income
Fees and commission expenses
Net interest and fee income
52
1,316
101
4,441
69
1,123
87
4,315
Value adjustments
Other operating income
Employee and administrative expenses
Amortisation, depreciation and impairment charges
Other operating expenses
Loan impairment charges and provisions for guarantees
Profit on investments in associates and group enterprises
Pre-tax profit
150
157
2,841
44
124
597
781
1,923
207
2,872
2,881
89
240
1,409
479
3,254
Tax
Net profit or loss for the period
284
1,639
-55
3,309
Net profit or loss for the period
Other comprehensive income:
Items that can be recycled to the income statement:
Foreign currency translation adjustment of international units
Hedge accounting of international units
Tax on hedge accounting
Other comprehensive income after tax
1,639
3,309
110
-110
26
26
55
-55
13
13
Comprehensive income for the period
1,665
3,322
DKKm
INCOME STATEMENT
3
4
5
6
7.8
STATEMENT OF COMPREHENSIVE INCOME
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 46 of 54
JYSKE BANK A/S
Note
30 Sep
2015
31 Dec.
2014
Jyske Bank
30 Sep
2014
ASSETS
Cash balance and demand deposits with central banks
Due from credit institutions and central banks
Loans and advances at amortised cost
Bonds at fair value
Bonds at amortised cost
Shares, etc.
Investments in associates
Equity investments in group enterprises
Assets in pooled deposits
Intangible assets
Owner-occupied properties
Other property, plant and equipment
Current tax assets
Deferred tax assets
Assets in temporary possession
Other assets
Prepayments
7,635
14,365
139,098
73,661
6,038
3,683
325
14,378
4,457
50
2,040
74
876
3
44
35,173
109
646
31,665
140,780
67,348
8,300
2,679
744
13,608
4,656
58
2,006
79
257
205
57
43,095
75
568
17,354
140,224
57,721
12,691
2,415
728
13,445
4,651
61
1,957
69
94
71
55
40,874
81
Total assets
302,009
316,258
293,059
EQUITY AND LIABILITIES
Debt and payables
Due to credit institutions and central banks
Deposits
Pooled deposits
Issued bonds at amortised cost
Other liabilities
Deferred income
44,937
129,446
4,496
46,340
45,079
17
54,834
137,938
4,890
36,682
51,785
18
43,575
133,590
4,764
30,978
49,784
18
Total debt
270,315
286,147
262,709
491
481
135
473
552
170
427
522
252
Provisions, total
1,107
1,195
1,201
Subordinated debt
1,354
1,355
1,352
950
325
1,559
26,399
950
325
1,559
24,727
950
322
807
25,718
DKKm
BALANCE SHEET
7.8
9
Provisions
Provisions for pensions and similar liabilities
Provisions for guarantees
Other provisions
Equity
Share capital
Revaluation reserve
Reserve according to the equity method
Retained profit
29,233
27,561
27,797
302,009
316,258
293,059
Guarantees, etc.
Other contingent liabilities
16,782
2,366
15,605
2,216
12,876
2,209
Total guarantees and other contingent liabilities
19,148
17,821
15,085
Equity, total
Equity and liabilities, total
OFF-BALANCE SHEET ITEMS
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 47 of 54
JYSKE BANK A/S
Jyske Bank
DKKm
STATEMENT OF CHANGES IN EQUITY
Equity at 1 January 2015
Share Revaluation
capital
reserve
950
325
Currency
translation
reserve
0
Reserve
according
to the
equity
method
1,559
Retained
profit Total equity
24,727
27,561
Net profit or loss for the period
Other comprehensive income
Comprehensive income for the period
0
0
0
0
0
0
0
0
0
0
0
0
1,639
26
1,665
1,639
26
1,665
Acquisition of own shares
Sale of own shares
Transactions with shareholders
0
0
0
0
0
0
0
0
0
0
0
0
-1,927
1,934
7
-1,927
1,934
7
Equity at 30 September 2015
950
325
0
1,559
26,399
29,233
Equity at 1 January 2014
713
322
0
807
15,604
17,446
Net profit or loss for the period
Other comprehensive income
Comprehensive income for the period
0
0
0
0
0
0
0
0
0
0
0
0
3,309
13
3,322
3,309
13
3,322
Capital increase
Expenses relating to capital increase
Acquisition of own shares
Sale of own shares
Transactions with shareholders
237
0
0
0
237
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6,794
-7
-1,063
1,068
6,792
7,031
-7
-1,063
1,068
7,029
Equity at 30 September 2014
950
322
0
807
25,718
27,797
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 48 of 54
JYSKE BANK A/S
30 Sept.
2015
31 Dec.
2014
Jyske Bank
30 Sept.
2014
Equity
Share-buyback programme
Expected dividend
Intangible assets
Deferred tax liabilities relating to intangible assets
Cautious valuation
Deferred tax assets
Other deductions
Common Equity Tier 1 capital
29,233
-500
-500
-50
11
-242
-3
-79
27,870
27,561
0
0
-58
13
-190
-205
-64
27,057
27,797
0
0
-61
14
-201
-71
-65
27,413
Additional Tier 1 Capital after reduction
Other deductions
Core capital
907
-83
28,694
993
-56
27,994
993
-57
28,349
Subordinated loan capital after reduction
Difference between expected loss and the carrying amount of impairment charges
Other deductions
Capital base
405
430
-192
29,337
324
433
0
28,751
325
518
0
29,192
101,657
21,025
11,829
134,511
100,619
20,805
12,011
133,435
98,072
15,059
12,011
125,142
10,761
0
10,761
10,675
0
10,675
10,011
0
10,011
21.8
21.3
20.7
21.5
21.0
20.3
23.3
22.7
21.9
DKKm
CAPITAL STATEMENT
Weighted risk exposure involving credit risk etc.
Weighted risk exposure involving market risk
Weighted risk exposure involving operational risk
Total weighted risk exposure
Capital requirement, Pillar I
Capital requirement, transitional provisions
Capital requirement, total
Capital ratio (%)
Core Tier 1 Capital ratio (%)
Common Equity Tier 1 capital ratio (%)
Over the period 2008-2013, capital ratios were calculated in accordance with the CRD III (Basel II). On 30 September 2015, the total weighted
risk exposure according to Basel I amounted to DKK 162,203m for Jyske Bank. The capital requirement according to the transitional provisions
was for 80% of the capital requirement of 8% of the total weighted risk exposure corresponding to DKK 10,381m for Jyske Bank. At end-2014, the
transitional provisions resulted in a capital requirement of DKK 10,412m for Jyske Bank. The transitional rules applying to total weighted risk
exposure will still apply in the coming years.
For the determination of individual solvency requirement, please see www.jyskebank.info.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 49 of 54
JYSKE BANK A/S
Note
DKKm
Q1-Q3
2015
Jyske Bank
Q1-Q3
2014
9.3
5.8
1.5
21.8
20.7
13.6
29,337
134,511
1.2
0.1
3.8
0.4
3,082
3,065
24.9
14.6
1.7
23.3
22.7
14.9
29,192
125,142
0.5
0.0
3.4
0.9
3,131
3,178
-18
2,696
881
117
277
-160
8
3,684
16
3,098
899
131
137
-6
2
4,146
-25
-68
-1
15
NOTES
1
Accounting Policies
The Interim Financial Report of the parent company Jyske Bank A/S for the period 1 January to 30
September 2015was prepared in accordance with the Danish Financial Business Act, including the
Executive Order on Financial Reports for Credit Institutions and Stockbrokers, etc.
The rules applying to recognition and measurement at Jyske Bank A/S are consistent with IFRS with the
exception of the measurement of the book value of associates and group enterprises, where IFRS stipulates
measurement at cost or fair value.
With respect to classification and extent, the preparation for Jyske Bank A/S differs from the preparation for
the Group. Please thee the full description of accounting policies in note 73 of the annual report 2014.
Figures in the financial statements are in Danish kroner, rounded to the nearest million in Danish kroner.
Changes to accounting policies
The accounting policies are identical to those applied to and described in the financial statements 2014.
Financial situation and risk information
Jyske Bank A/S is affected by the financial situation and the risk factors that are described in the
management's review for the Group and reference is made to this.
2
3
Financial ratios and key figures
Pre-tax profit p.a. as a percentage of opening equity
Profit for the period as a pct. of av. equity
Income/cost ratio (%)
Capital ratio (%)
Common Equity Tier 1 capital ratio (CET1 %)
Individual solvency requirement (%)
Capital base (DKKm)
Total risk exposure (DKKm)
Interest-rate risk (%)
Currency risk (%)
Accumulated impairment ratio (%)
Impairment ratio for the period (%)
No. of full-time employees at end-period
Average number of full-time employees in the period
Interest income
Due from credit institutions and central banks
Loans and advances
Bonds
Derivatives, total
Of which currency contracts
Of which interest-rate contracts
Other
Total
Of which interest income on reverse repos carried under:
Due from credit institutions and central banks
Loans and advances
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 50 of 54
JYSKE BANK A/S
Note
Q1-Q3
2015
Jyske Bank
Q1-Q3
2014
Interest expenses
Due to credit institutions and central banks
Deposits
Issued bonds
Subordinated debt
Total
5
249
236
20
510
123
506
276
31
936
Of which interest expenses on reverse repos carried under:
Due to credit institutions and central banks
Deposits
-88
-58
6
7
785
120
57
152
202
1,316
649
119
44
138
173
1,123
-199
248
248
352
-7
7
-527
25
3
150
174
482
185
-493
314
-314
3
-207
63
207
DKKm
NOTES
4
5
6
Fees and commission income
Securities trading and custody services
Money transfers and card payments
Loan management fees
Guarantee commission
Other fees and commissions
Total
Value adjustments
Bonds
Shares, etc.
Currency
Currency, interest-rate, share, commodity and other contracts as well as other derivatives
Assets in pooled deposits
Pooled deposits
Other assets
Issued bonds
Other liabilities
Total
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 51 of 54
JYSKE BANK A/S
Note
DKKm
Q1-Q3
2015
Jyske Bank
Q1-Q3
2014
6,317
537
-476
850
-44
-237
106
5,398
1,218
-430
0
-250
-184
99
7,053
5,851
5,595
481
6,076
977
4,856
522
5,378
473
7,053
5,851
537
163
-103
597
-237
360
1,218
237
-46
1,409
184
1,225
3,892
668
-465
80
4,175
3,204
782
-423
75
3,638
468
-64
-11
393
354
105
-7
452
1,465
-71
26
1,420
854
340
24
1,218
84
4
88
79
-9
70
15
0
15
15
0
15
Notes
7
Loan impairment charges and provisions for guarantees, incl. balance of discounts
Balance of loan impairment charges and provisions for guarantees incl. balance of discounts,
beginning of period
Loan impairment charges/provisions for the period
Recognised as a loss, covered by impairment charges/provisions
Discount for acquired assets in connection with business combinations
Recognised losses covered by discounts for acquired assets
Recognised discount for acquired assets
Other movements
Balance of loan impairment charges and provisions for guarantees incl. balance of discounts, end
of period
Loan impairment charges
Provisions for guarantees
Balance of loan impairment charges and provisions, end of period
Balance of discounts for acquired assets
Balance of loan impairment charges and provisions for guarantees incl. balance of discounts, end
of period
Loan impairment charges/provisions for the period
Recognised as a loss, not covered by loan impairment charges/provisions
Recoveries
Loan impairment charges and provisions for guarantees recognised in the income statement
Recognised discount for acquired assets
Net effect on income statement
Individual loan impairment charges, beginning of period
Loan impairment charges for the period
Recognised as a loss, covered by impairment charges/provisions
Other movements
Individual loan impairment charges, end of period
Individual provisions for loss on guarantees, beginning of period
Provisions for the period
Recognised as a loss, covered by provisions
Individual provisions for loss on guarantees, end of period
Collective loan impairment charges, beginning of period
Loan impairment charges for the period
Other movements
Collective loan impairment charges, end of period
Collective provisions for loss on guarantees, beginning of period
Provisions for the period
Collective provisions for loss on guarantees, end of period
Impairment charges on balances due from credit institutions
Individual impairment charges on balances due from credit institutions, beginning of period
Loan impairment charges for the period
Individual impairment charges on balances due from credit institutions, end of period
The regulatory balance of loan impairment charges and provisions for guarantees does not include the discount balance for acquired
loans and advances.
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 52 of 54
JYSKE BANK A/S
Note
Jyske Bank
DKKm
Notes
8
Loans, advances and guarantees as well as loan impairment charges and provisions
for guarantees by sector
Sector
Public authorities
Agriculture, hunting,
forestry, fishing
Fishing
Milk producers
Plant farming
Pig farming
Other agriculture
Manufacturing, mining,
etc.
Energy supply
Building and construction
Commerce
Transport, hotels and
restaurants
Information and
communication
Finance and insurance
Real property
Lease of real property
Buying and selling of real
property
Other real property
Other sectors
Corporate clients,
individually assessed,
total
Corporate clients,
collective impairment
charges
Personal clients,
individually assessed
Personal clients, collective
impairment charges
Total
Loans, advances and guarantees
Balance of loan
impairment
charges and
provisions for
guarantees
Loan
impairment
charges and
provisions for
guarantees for
the period
Loss
for the period
30 Sept.
2015
End2014
30 Sept.
2015
End2014
30 Sept.
2015
End2014
Q1-Q3
2015
Q1-Q3
2014
Q1-Q3
2015
Q1-Q3
2014
4%
6%
6,950
10,027
0
0
0
0
0
0
5%
1%
1%
1%
1%
1%
5%
1%
1%
1%
1%
1%
7,183
1,631
1,130
1,701
1,596
1,125
7,328
1,423
1,354
1,652
1,682
1,217
1,051
0
531
43
397
80
810
1
422
17
320
50
338
0
176
22
113
27
273
0
106
4
133
30
214
1
128
3
76
6
134
0
47
6
78
3
4%
3%
1%
5%
4%
3%
1%
4%
5,647
4,258
2,074
7,463
5,565
4,379
1,871
6,923
186
24
69
186
177
24
75
250
41
0
-4
7
65
-5
14
92
47
0
0
73
29
0
18
59
1%
2%
2,254
2,797
80
66
18
-7
11
8
0%
33%
6%
5%
0%
27%
6%
5%
505
50,993
9,942
7,353
434
41,932
9,435
8,112
37
842
1,174
953
19
755
1,256
1,006
14
96
-10
-5
11
152
149
170
1
43
68
47
8
119
122
79
1%
0%
3%
1%
0%
4%
965
1,624
4,223
742
581
6,814
79
142
159
101
149
183
-2
-3
29
-47
26
117
18
3
64
33
10
24
61%
56%
94,542
87,478
3,808
3,615
529
861
521
521
1,100
1,219
-88
268
0
0
58,880
760
737
105
227
118
146
100% 155,880 156,385
408
6,076
338
5,909
51
597
53
1,409
0
639
0
667
35%
100%
38%
54,388
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 53 of 54
JYSKE BANK A/S
DKKm
30 Sept.
2015
31 Dec.
2014
Jyske Bank
30 Sept.
2014
86,375
6,371
29,178
7,522
129,446
76,010
8,256
45,586
8,086
137,938
73,405
9,203
42,731
8,251
133,590
Notes
9
Deposits
Demand deposits
Term deposits
Time deposits
Special deposits
Total
Jyske Bank corporate announcement No. 11/2015, of 29 October 2015
Page 54 of 54