Jyske Bank A/S Ord

Hi, everyone. Thank you for joining us on Jyske Bank's conference call for the financial results for the first quarter of 2026. This is Simon Hauwaert from Investor Relations speaking. With me, I have Jyske Bank CEO Blaise Mert 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 I would also like to welcome you to our conference call for the first quarter of 2026. We made a solid start to 2026, delivering earnings per share 17. Danish results were impacted by challenging financial markets, but our underlying performance continued to show good progress, supported by high activity, disciplined cost management, and strong credit quality, while we maintained a clear focus on customers, customer relationships, and strategy execution. Credit quality remained very solid in the quarter. Loan impairment charges were at a low level, while we prudently built significant post-model adjustment buffers in response to elevated geopolitical uncertainty. The Danish economy remains fundamentally sound, and our customers' financial situation is generally robust, although geopolitical uncertainty is elevated. Our capital position also remains robust. At the end of the quarter, our CET1 ratio stood at 15.9%, adjusted for expected payouts. This is well above our target level of 15%. Finally, we continue to make progress on our strategic priorities, including AI. Over the recent years, we've established a solid foundation and in 2026, our focus is on scaling solutions that have already demonstrated value across advisory services, customer interaction, and internal processes. Overall, we've ended the 2026 in a healthy position well equipped to navigate the current environment while continuing to build long-term value. With that, I'll let you walk through our financial results.

Thank you, Lars. And the footprint in Q1 is solid, a very solid underlying performance. As we heard, business volumes are up, activity levels are good, we see strong credit quality, and we have had a discipline called management. So we are fully on track with the development in the group, If you look at the left-hand side, you can see our earnings per share is at 17 kroner, and exclusive of value adjustments and the investment portfolio, there was a growth of earnings per share of 4% over the year, so steady going. Looking in the middle, net profit of 1,049 million DKK in the quarter, and looking at the NII, It is flattish quarter over quarter from the lending and deposit activities, and as fully expected, we see a drop due to the tax-related one-offs in Q4. Net fee and commission income on a steadily upward trend, driven by asset management activities and especially pension and insurance activities. And the core expenses are flattish year over year, so we've been able to offset the inflation trend via our cost initiatives. And if you look at employee costs, they are only up 1%, despite salary increases of around 2.5%, driven by lower FTEs, around 1% over the year. On the right-hand side, Atalanta management dropped 1% or 3 billion in the quarter, but that still includes net inflow of new customers, even in the latest quarter, in Q1 of 2016. Deposits has shown an upward trend and has been lifted by 5% over the last two quarters. We've seen inflow of money market deposits, but also from personal customers. And finally, the lending is trending upward steadily quarter by quarter. The mortgage book is up 1%. Bank loans are down 1%, primarily driven by lower exposures from volatile public entities. but also due to transfer of bank loans to the mortgage balance. Looking at our outlook for 26, it's unchanged. We still believe to deliver within the range of 71 to 85 kroner, as we announced after the release of the annual reports for 25. Thank you.