• Net Profit: DKK5 billion to DKK5.3 billion after tax for 2024.
• Net Fee Income Growth: 18% year over year in Q4 2024.
• Return on Tangible Equity: Approximately 12% for the year.
• Cost to Income Ratio: 47% for the year, 49% for Q4.
• Earnings Per Share: DKK80 for the year, DKK20 for Q4.
• CET1 Ratio: 17.6%, above the target of 15% to 17%.
• Assets Under Management (AUM) Growth: 17% year on year in 2024.
• Mortgage Growth: Highest level in more than five years in Q4 2024.
• Dividend and Buyback Program: Total of DKK3.8 billion, including DKK24 per share dividend and DKK2.25 billion buyback.
• Cost of Risk: Around zero basis points for both the quarter and the full year.
• Stage 3 Exposure: Stable at 1.1% from Q4 2023 to Q4 2024.

• Warning! GuruFocus has detected 7 Warning Signs with CHPT.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Jyske Bank AS (STU:JYS1) achieved the top end of its net profit guidance for 2024, driven by an 18% year-on-year increase in net fee income.
• The bank announced a historical capital return to shareholders, including a dividend of DKK24 per share and a buyback of DKK2.25 billion, totaling DKK3.8 billion.
• Customer satisfaction has significantly increased, contributing to the highest mortgage growth in over five years.
• The bank's return on tangible equity was around 12% for the year, with a cost-to-income ratio below 50%.
• Assets under management (AUM) grew by 17% year-on-year, indicating strong momentum in the bank's fee income and AUM business.

Negative Points

• Net interest income showed a slight downward trend due to lower interest rates, impacting deposit margins.
• The bank anticipates a slightly higher cost base in 2025 due to strategic investments and inflationary pressures.
• There is uncertainty regarding macroeconomic conditions and financial markets, which could affect the bank's performance in 2025.
• The bank's deposit levels were slightly lower in Q4 due to fluctuations in large exposures.
• Despite strong performance, the bank faces challenges in maintaining profitability levels compared to its peers.

Q & A Highlights

Q: What are Jyske Bank's expectations for lending growth in 2025 following the strong performance in Q4 2024? A: Birger Nielsen, CFO, stated that while Q4 2024 saw decent growth, the expectations for 2025 will mirror macroeconomic developments. Lower interest rates could positively impact activity and lending growth. The bank aims to follow or slightly outpace the market in both private and corporate sectors. CEO Lars Morch added that with the bank's recent focus on business momentum and organizational stability, they are optimistic about volume development in 2025, though market conditions will set some limitations.

Q: What is Jyske Bank's approach to capital distribution, and how does it compare to peers? A: CEO Lars Morch explained that Jyske Bank aims to be predictable, maintaining a 30% cash payout of the previous year's results, with the remainder in share buybacks. The bank has rebuilt its capital position and is in a strong position to return capital to shareholders. While not committing to specific future payout percentages, the bank is focused on maintaining a strong capital position.

Q: How has Jyske Bank's new strategy been received internally and by customers? A: CEO Lars Morch reported that the strategy has been received very positively internally, with high ratings from management. The strategy focuses on increasing activity levels and efficiency, which has been pre-launched internally. Customer feedback has been neutral to positive, with larger business and corporate clients appreciating the bank's efforts to support key client segments.

Q: What are Jyske Bank's cost targets for the coming years, and how sustainable is the current asset management performance? A: CFO Birger Nielsen stated that the bank aims for a cost-income ratio below 50% and to keep cost development as flat as possible, despite inflationary pressures. The strong asset management performance in 2024, driven by private banking client inflows and market conditions, is expected to continue as a major driver, though 2024's growth should not be extrapolated.

Q: What are Jyske Bank's expectations for net interest margin stabilization amid upcoming rate cuts? A: CFO Birger Nielsen expects rate cuts to stop around mid-2025, leading to more stable margin development. The bank has already experienced more than half of the expected margin compression since the peak, and stabilization is anticipated once rate cuts cease.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.