Jyske Bank A/S Ord

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

Thank you, Simon. And I'd also like to thank everybody for joining this conference call today. We closed 2025 on a strong note, delivering results above our previously guided ranges and growing EPS a full 18% year-on-year in Q4. This performance supported an upgrade of our outlook as well as our pre-announced results for 2025 in January. This morning we published the full set of results for 2025, including full details on strong capital position and updated capital targets. We now target a CET1 ratio of approximately 15% and a total capital ratio around 20%. This is at the lower end of our previous capital targets despite a systemic buffer of 0.9 percentage points. On the back of this, we have announced our largest capital distribution so far of 4.5 billion Danish in total, an increase of 20% year-on-year. We also provided our outlook for 26. We expect earnings per share in the range of 71 to 85, reflecting more normal levels of loan impairment charges and value adjustments following a favorable 25. We expect to continue to see positive core operating trends in 26. We are gaining personal customers in target segments, increasing our mortgage market share and have seen a healthy development with particularly larger corporates with high levels of customer satisfaction in all segments. The Danish economy is likely to show a balanced trajectory with a stable rate outlook as we maintain a solid credit quality with significant buffers in place. Overall, we enter 26 in a healthy position and we are well-placed to further build on our momentum. With that, let me hand over to Biwa for a walkthrough of our financial results.

Thank you, Lars. And as you may well know, the PL numbers and some of the balance sheet numbers were released back in mid-January. And as Lars alluded to, the metric environment is actually relatively stable. Average long-term growth around 2% is expected. Inflation is under control. We have a high and steady employment, and house prices are still on the rise, expectedly 3% during 26. And on top of that, the geopolitical uncertainty, of course, has and still can have some impact on the demand for credit facilities. Looking at the chart, a few comments. For 25 in total, the return on tangible equity was 11.9% and a cost-income ratio at 48, better than our projections for 28, and there are several reasons to that. One is that the decrease in interest rates was a quarter of a percentage point lower than expected. And value adjustments were very strong in 2025 for now the third consecutive year with a significant spread tightening with highly rated liquid Danish bonds. And thirdly, cost of risk was zero for the second year in a row. And finally, we upgraded our expectations after Q3 and again when we released the numbers in January. As you also can see, the EPS was in total 85 kroner in 25 with a strong end to the year both in Q3 and Q4 with 23 kroner in those quarters. And looking at the right-hand side of the graph or the slide, you can see that AUM is still on the rise. Q over Q, a 2% rise driven both by positive markets and net inflow of customers. And on the lending side, Q over Q, you can see that mortgages was up 1%, driven by private individuals, and bank lending was up a couple of percent, both primarily driven by corporates, despite the transfer of mortgage-like loans to the balance sheet of Jyske Realkredit. And when it comes to leasing, it was a bit more muted during the course of Q4. Deposits finally on an upward trend again, both driven by private individuals as well as time deposit from corporates. So a decent development in balances at the end of the year. The outlook for this year, 71 to 85 kroner, 4.3 to 5.1 billion after tax. The core income line was very steady from 24 to 25, and we expect a lower level in 26, primarily driven by value adjustments. Core expenses is also expected to be slightly lower in 26. We will see a lower level of one-offs, and we will also do some course initiatives that will outpace both inflation and wage inflation during the course of the year. Loan impairment charges, we expect an expense in 26, although a low one. We see significant post-model adjustments of 1.7 billion here by year-end. We have in the last 10 years seen zero basis points average-wise in impairments. We have low write-offs also in Q4, and the Stage 3 part of the total portfolio is down from 1.1 one end of 24 to now 0.9 end of 25. Net profit, I have referred to that. And finally, capital targets around 15 and 20%. I'll return to that in just a minute. And finally, also to mention that we don't see any further significant impact from upcoming regulation, primarily the output flow from CRR3, given the current risk weights. Lars? Yeah, thanks a lot, the viewer.