Jyske Bank A/S Ord

Welcome. It will be about Jyske Bank's half-year forecast, which the CEO, Lars Mørk, will talk about shortly. But let's start with a few numbers from the forecast. Jyske Bank came out of the first half of the year with a profit of 2.6 billion kroner, which is 5% higher than the corresponding half-year result in 2023. The income expectations for the entire year are a bit more precise, so they now sound like an increase in the upper half of the previously announced interval, which is 4.3 to 5.1 billion kroner. And CEO Lars Mørk, what is your overall reaction to the forecast you have put forward today?

I think it's a very solid forecast. Not least, I'm convinced that we don't really have any credit losses, which means that the customers are doing well, and that's important.

And if you look back at the first half of the year and maybe make some contributions there, what would you like to add?

Well, I think the first half of the year has been good. We have reached the goal with the integrations we have been starting with. It has been important for us to get the employees and customers of Handelsbanken well in, and after that we have had PFA Bank and had a part of the work with it. And it also looks like everything is going well. And then we have used a lot of resources to ensure that we have good offers, so that On investment, we have come up with new, easy and interesting solutions. We have also come up with very attractive products in a number of other areas, such as housing loans and so on. And then we won Private Banking for nine years in a row in the annual big survey. And that is also important, especially in a year where you have received a number of customers who initially did not choose Jyske Bank, but have been bought in together with the company they have actually chosen. And we can see right when they arrive, you get a dive. And I think there has been a really nice piece of work to try to get back there again. And it has succeeded so that we have now, nine years in a row, become the best in an important area.

And that sounds very good all together. Are there still no omens in the woods, Lars Mørke?

Yes, we land a little bit higher on our costs than expected in the market, and we have to see the reaction of the market. But there have been some things that have been important for us to get done in a good way, to get the integration done properly. We have invested in a number of areas as well. which is important, and I don't think the market has taken any of the costs that we have had in connection with PFA-inscription and expected to have. There are also some one-time costs that are running out, so we can't just let that fall into place.

But as I also mentioned in my introduction, also in the budget, where you go out and specify that the income for the whole year is expected to land in the upper part of the spent amount, i.e. close to these 5.1 billion kroner probably for the whole 2024. What is it that you base this optimism on?

Well, we can see that it's the first half of the year in the house, and we can also see that if we multiply that by two, then we land in the upper part, or actually overspent. But in the second half of the year, we can't really see that we're running into major credit-related losses. We can't see the contours of it at the moment. What we can see, however, is that with the offers we have received and the interest rates we have, we will be able to earn a little less money. And we can also see that with the agreements that have passed through, there will be a pressure on the cost base. And that means that in the second half of the year we will probably land a little lower than we did in the first half of the year. So it has become an extra part of the exciting. Really solid. We also expect the second half of the year, but with the arrows going in a slightly different direction.

We'll see how it turns out. Lars Mørk, thank you for your comments this morning. And thank you for watching. You can find much more about the forecast on the website of Jyske Bank.