Jyske Bank A/S Ord

Hi, everyone. Thank you for joining us on Jyske Bank's conference call for the financial results for the second quarter of 2025. This is Simon Haubart from Investor Relations speaking. With me, I have Jyske Bank CEO Lars Merck and CFO Bjorn Nielsen. Lars and Bjorn will walk you through our prepared remarks. Afterwards, we'll open up for questions. I'll now hand over to Lars.

Thank you, Simon. And welcome to all of you on this call. Much appreciated that you're taking the time to dial in. We've had another solid quarter of 2025, building upon the positive momentum from recent borders and growing earnings per share compared to the year before, despite the significantly lower short-term interest rates. On the back of the positive development in the first half of the year, we are now targeting the upper end of our outlook for 2025. We continue to improve customer satisfaction in all areas. In Q2, upright banking customer satisfaction was the highest in Denmark for the 10th consecutive year. Additionally, the satisfaction of corporate and business clients with 20 plus employees is also the highest. And personal customer satisfaction is showing a very strong momentum already reaching our 2028 target level with the top three position. The latter is a major progress compared to where we were a couple of years ago. The improved customer satisfaction has underpinned mortgage financing for personal clients, which reached the highest growth rates in several years as we continue to gain market share. Additionally, assets under management have been resilient, reaching a new all-time high amid turbulent markets supported by healthy net inflows. Meanwhile, our credit quality remains solid, We booked reversals in Q2, while slightly increasing our post-model adjustments and reducing our state-free exposures. Lastly, our capital position improved further in the quarter following a very strong capital build, leaving significant excess capital versus our capital targets. With that, let me hand over to you, Beaver, for a walkthrough of our financial results.

Thank you, Lars. And I would like just to start off with a little kind of a busy slide, but nevertheless, an overall solid footprint in Q2 with good momentum in the group. Looking at the ratios, return on tenable equity 11.5 and 11.3 for the first half. Cost income slightly above 50.51 here in Q2, but 49 for the first half. And looking at cost of risk, we saw reversals in the second quarter of two basis points. Earnings per share, steady going at 20 kroner in the quarter. And the CT1 ratio stood at 16.3% here in Q2, up from 15.7 in Q1, underpinned by a lower risk. looking at the left hand side at the bottom you can see that the earnings per share 20 kroner returning q2 is very much similar to what we've seen in the last five quarters so six consecutive quarters with a steady earnings per share return looking at the pnl at a glance the nii was as expected due to lower policy rates we still see a solid fee income in the second quarter. Financial markets were positive due to spread tightening. And looking at core expenses, they were on track, exclusive of one-offs, due to the location shift here in Copenhagen. And finally, small reversals on impairments, underpinning solid quality in the credit book. And finally, net profit up 2% in the quarter to 1.3 billion. At the right-hand side, you can see that volumes, as Lars said, AUM up in the second quarter after the turbulence and volatility we saw back in March in Q1. Mortgage, the mortgage book is up, driven by both personal and corporate customers by 1% in the quarter, whereas bank lending is more steady going. Then moving on to the outlook, we have updated outlook for 25, given the performance we saw here in the first two quarters. And now we expect net profit to reach the upper or very upper end of 3.8 to 4.6 billion. And of course, that also applies to the earnings per share expectations, which now is in the upper end of the 60 to 73 kroner interval. Handing over to Lars and a few remarks on customer satisfaction. Yes.