Jyske Bank

Quarterly Report • May 2, 2023

Interim Financial Report Q1 2023

Interim financial report Q1 2023

Management's Review

The Jyske Bank Group (key financial data)	2
Summary	3
Financial Review	5
Capital and Liquidity Management	9
Other Information	12

Business Segments

Banking Activities	13
Mortgage Activities	15
Leasing Activities	17

Interim Financial Statements

Jyske Bank Group
Income Statement and Statement of Comprehensive Income	19
Balance Sheet	20
Statement of Changes in Equity	21
Capital Statement	22
Summary of Cash Flow Statement	23
Notes	24
Jyske Bank A/S	45

Statement by the Executive and Supervisory Boards 60

Jyske Bank A/S Vestergade 8-16 DK-8600 Silkeborg Tel.: +45 89 89 89 89 www.jyskebank.dk Email: jyskebank@jyskebank.dk Business Reg. No. (CVR): 17616617

The Jyske Bank Group Core profit and net profit for the period (DKKm)

	Q1	Q1	Index	Q1	Q4	Q3	Q2	Q1	Full year
	2023	2022	23/22	2023	2022	2022	2022	2022	2022
Net interest income	2,224	1,312	170	2,224	1,773	1,412	1,359	1,312	5,856
Net fee and commission income	658	683	96	658	681	598	567	683	2,529
Value adjustments	240	9	-	240	523	-300	-93	9	139
Other income	104	105	99	104	44	20	70	105	239
Income, operating lease (net)	84	80	105	84	60	98	105	80	343
Core income	3,310	2,189	151	3,310	3,081	1,828	2,008	2,189	9,106
Core expenses	1,480	1,160	128	1,480	1,329	1,206	1,184	1,160	4,879
Core profit before loan impairment charges	1,830	1,029	178	1,830	1,752	622	824	1,029	4,227
Loan impairment charges	96	-55	-	96	-158	-200	-192	-55	-605
Core profit	1,734	1,084	160	1,734	1,910	822	1,016	1,084	4,832
Investment portfolio earnings	31	4	775	31	-29	-119	13	4	-131
Profit before one-off costs	1,765	1,088	162	1,765	1,881	703	1,029	1,088	4,701
One-off costs relating to Handelsbanken DK	-38	0	-	-38	-66	-67	-11	0	-144
Pre-tax profit	1,727	1,088	159	1,727	1,815	636	1,018	1,088	4,557
Tax	438	237	185	438	257	133	178	237	805
Net profit for the period	1,289	851	151	1,289	1,558	503	840	851	3,752
Interest on AT1 capital, charged against
equity	39	36	108	39	39	37	35	36	147
Summary of balance sheet, end of period (DKKbn)
Loans and advances	542.0	479.9	113	542.0	541.7	466.5	481.8	479.9	541.7
- of which mortgage loans	338.2	329.5	103	338.2	333.7	304.5	319.1	329.5	333.7
- of which bank loans	155.1	110.5	140	155.1	155.5	115.2	113.3	110.5	155.5
- of which repo loans	48.7	39.9	122	48.7	52.5	46.8	49.4	39.9	52.5
Bonds and shares, etc.	99.7	90.0	111	99.7	97.4	88.7	89.4	90.0	97.4
Total assets	786.0	650.2	121	786.0	750.0	672.0	667.1	650.2	750.0
Deposits	228.3	141.9	161	228.3	208.4	162.1	156.4	141.9	208.4
- of which bank deposits	202.2	127.1	159	202.2	189.1	149.2	140.1	127.1	189.1
- of which repo and triparty deposits	26.1	14.8	176	26.1	19.3	12.9	16.3	14.8	19.3
Issued bonds at fair value	331.2	327.1	101	331.2	324.2	299.8	312.2	327.1	324.2
Issued bonds at amortised cost	96.8	67.8	143	96.8	95.4	87.7	77.7	67.8	95.4
Subordinated debt	6.1	5.5	111	6.1	6.4	6.4	5.4	5.5	6.4
Holders of additional tier 1 capital	3.3	3.3	100	3.3	3.3	3.3	3.3	3.3	3.3
Shareholders' equity	38.6	35.0	110	38.6	37.3	35.8	35.2	35.0	37.3
Financial ratios and key figures
Earnings per share for the period (DKK)* Earnings per share for the period (diluted)	19.5	12.1		19.5	23.7	7.3	12.4	12.1	55.4
(DKK)*	19.5	12.1		19.5	23.7	7.3	12.4	12.1	55.4
Pre-tax profit as % of average equity*	17.8	12.0		17.8	19.5	6.7	11.2	12.0	12.2
Profit for the period as % of average equity*	13.2	9.3		13.2	16.7	5.2	9.2	9.3	10.0
Expenses as a percentage of income	44.7	53.0		44.7	43.1	66.0	59.0	53.0	53.6
Capital ratio (%)	19.6	21.6		19.6	19.5	23.6	22.2	21.6	19.5
Common equity tier 1 capital ratio (%)	15.4	17.2		15.4	15.2	18.6	17.9	17.2	15.2
Individual solvency requirement (%)	11.0	10.7		11.0	10.8	11.3	11.1	10.7	10.8
Capital base (DKKbn)	44.1	42.5		44.1	43.0	44.8	43.2	42.5	43.0
Weighted risk exposure (DKKbn)	225.1	197.1		225.1	220.9	190.0	194.3	197.1	220.9
Share price at end of period (DKK)	480	369		480	451	398	347	369	451
Distributed dividend per share (DKK)	0	0		0	0	0	0	0	0
Book value per share (DKK)*	600	532		600	581	557	548	532	581
Price/book value per share (DKK)*	0.8	0.7		0.8	0.8	0.7	0.6	0.7	0.8
Outstanding shares in circulation ('000)	64,272	65,836		64,272	64,264	64,251	64,258	65,836	64,264
No. of full-time employees, end of period**	3,878	3,237		3,878	3,854	3,266	3,218	3,237	3,854

Relationships between income statement items under 'The Jyske Bank Group' (key financial data) and the income statement page 19 appear from note 4. *Financial ratios are calculated as if additional tier 1 capital is recognised as a liability.

** The number of employees at the end of the first quarter of 2023 less 15 employees who are financed externally against 15-20 employees in the other quarters.

Summary

"Jyske Bank's earnings per share were up by 61% relative to Q1 2022. The advance was fuelled in particular by the acquisition of Handelsbanken Denmark and a broadly based earnings increase. The integration of Handelsbanken Denmark is proceeding according to plan, and the first branch mergers have been implemented. On the basis of the development in Q1 2023, we have upgraded our expectations to record-high level of earnings per share of DKK 65- 75 in 2023," says Anders Dam, CEO and Managing Director.

On 1 December 2022, Jyske Bank took over Svenska Handelsbanken's activities in Denmark, with about 600 employees and 42 branches, headquartered in Copenhagen. The larger scale supports the possibilities of developing and offering attractive products and services to Jyske Bank's present and future clients. The acquisition also offers the possibility of realising economies of scale based on a common IT platform as of November 2023. The integration of Handelsbanken Denmark is proceeding according to plan as regards financial, business and organisational issues. The future tasks of all employees were clarified in Q1 2023, when also business analyses, forming the basis of the conversion of data processing centre, were finalised. Branch mergers in cities where both Handelsbanken and Jyske Bank are present are expected to reduce the total number of branches by approx. 1/4 before November 2023 and approx. half of the planned mergers had been implemented before the end of April.

In Q1 2023, the corporate client area realised continued advance in business volumes. The personal client area has in recent years implemented branch mergers, adjusted the organisation, revised the fee structure and introduced a new mobile banking platform. The purpose of the initiatives is to ensure that, in a profitable manner, Jyske Bank will still be able to offer its personal clients accessible, personal, and competent advisory services as well as good and fast services. In order to continue the development in the personal client area we will in the coming period of time focus on an implementation of best practice in connection with the acquisition of Handelsbanken Denmark and on a further strengthening of the local leadership.

Running a sustainable and responsible business is one of Jyske Bank's targets, and climate is the most important impact area for the Group. Jyske Bank's target is net zero CO2 emission across businessoriented activities in the form of loans and investments not later than 2045 and 2050, respectively. In addition, Jyske Bank aims at lending growth contributing to offset climate changes, and the CO2 emission from Jyske Bank's own activities must be reduced by 65% from 2022 to 2030. In Q1

2023, Jyske Realkredit was nominated for FINANS IMPACT Climate Award for being frontrunner relating to transparency in mortgage portfolios. Jyske Bank continued offering knowledge to clients via webinars about the exchange of sources of heating and project days concerning climate for agricultural clients. Finally, Jyske Bank entered into a cooperation agreement with Bodil Energi which offers a sustainable value proposition for homeowners seeking a calculation of the energy potential of their property.

Earnings per share at DKK 19.5 in Q1 2023

Earnings per share rose to DKK 19.5 from DKK 12.1, corresponding to a net profit of DKK 1,289m corresponding to a return on equity of 13.2% p.a. against DKK 851m and 9.3% p.a., respectively in Q1 2022.

In general, Jyske Bank's business volumes showed a minor advance in Q1 2023 relative to the end of 2022. Loans under banking activities were roughly unchanged since higher loans to corporate clients were offset by a lower amount of mortgage-like bank loans. Bank deposits rose by 7% due to higher time deposits from corporate clients. Leasing and car financing realised an increase of 1% despite continued challenged supply chains in the auto industry. Nominal mortgage loans were roughly unchanged since higher lending to corporate clients were offset by lower lending to private clients.

Core income rose by 51% relative to Q1 2022 due to markedly higher net interest income and value adjustments. Net interest income was supported by a higher interest-rate level as well as higher lending to corporate clients and the acquisition of Handelsbanken Denmark. Net fee and commission income declined from a record-high level due to lower lending and refinancing activity compared with Q1 2022, which was also impacted by a positive one-off effect. Value adjustments increased from a low level due to more favourable financial markets. Other income remained at a high level and was supported by higher dividends from shares, whereas favourable sales conditions in the used-car market contributed to continued high income from operating lease (net).

Core expenses rose by 28% compared to Q1 2022. The increase can primarily be attributed to the acquisition of Handelsbanken Denmark which contributed, among other things, to an increase in the number of full-time employees as well as higher expenses for data processing centres and amortisation of acquired customer relations. Underlying core expenses rose, among other things, as a result of a higher number of full-time employees and wage adjustments relating to the sector-wide collective agreement on salary increases. To this must be added one-offs of DKK 38m relating to the acquisition of Handelsbanken Denmark.

Loan impairment charges amounted to an expense of DKK 96m against an income of DKK 55m in Q1 2022. The credit quality is still solid with a low level of non-performing loans and advances as well as a low level of write-offs.

At the end of Q1 2023, Jyske Bank's common equity tier 1 capital ratio was 15.4%, which is within the targeted range of 15%-17%.

2023 outlook

Following the recent growth, the Danish economy is showing signs of an incipient slowdown in economic growth. The highest inflation in 40 years has triggered steep interest-rate increases which have reduced the purchasing power of the households as well as personal consumption and resulted in declining housing prices. The slowdown in the Danish economy has so far primarily been visible in the housing market and in personal consumption whereas the labour market is still dominated by capacity pressure. The interest-rate hikes must gradually be expected also to put a damper on production and employment.

Jyske Bank anticipates earnings per share in the range of DKK 65-75 for 2023. This corresponds to a net profit in the range of DKK 4.3bn - DKK 4.9bn.

Core income is expected to increase significantly in 2023, especially due to the acquisition of Handelsbanken Denmark and the effect from a higher level of interest rates.

Likewise, core expenses are expected to rise considerably in 2023. The increase can primarily be attributed to the acquisition of Handelsbanken Denmark. To this must be added derived integration and restructuring costs of about DKK 0.3bn.

Loan impairment charges are expected to amount to an expense in 2023.

Financial Review

Core profit and net profit for the period (DKKm)

	Q1	Q1	Index	Q1	Q4	Q3	Q2	Q1	FY
	2023	2022	23/22	2023	2022	2022	2022	2022	2022
Net interest income	2,224	1,312	170	2,224	1,773	1,412	1,359	1,312	5,856
Net fee and commission income	658	683	96	658	681	598	567	683	2,529
Value adjustments	240	9	-	240	523	-300	-93	9	139
Other income	104	105	99	104	44	20	70	105	239
Income from operating lease (net)	84	80	105	84	60	98	105	80	343
Core income	3,310	2,189	151	3,310	3,081	1,828	2,008	2,189	9,106
Core expenses	1,480	1,160	128	1,480	1,329	1,206	1,184	1,160	4,879
Core profit before loan impairment charges	1,830	1,029	178	1,830	1,752	622	824	1,029	4,227
Loan impairment charges	96	-55	-	96	-158	-200	-192	-55	-605
Core profit	1,734	1,084	160	1,734	1,910	822	1,016	1,084	4,832
Investment portfolio earnings	31	4	775	31	-29	-119	13	4	-131
Profit before one-off costs	1,765	1,088	162	1,765	1,881	703	1,029	1,088	4,701
One-off costs relating to Handelsbanken DK	-38	0	-	-38	-66	-67	-11	0	-144
Pre-tax profit	1,727	1,088	159	1,727	1,815	636	1,018	1,088	4,557
Tax	438	237	185	438	257	133	178	237	805
Net profit for the period	1,289	851	151	1,289	1,558	503	840	851	3,752
Interest on AT1 capital, charged against equity	39	36	108	39	39	37	35	36	147

Net profit for the period

Earnings per share came to DKK 19.5 in the first quarter of 2023 against DKK 12.1 for the same period in 2022, corresponding to a net profit of DKK 1,289m and DKK 851m, respectively. The increase was fuelled, in particular, by the acquisition of Handelsbanken Denmark and the impact from the higher level of interest rates.

Core income

Core income rose by 51% relative to Q1 2022, and net interest income was the largest contributor to the development.

Net interest income rose by 70% to DKK 2,224m. This is the highest level so far and is due primarily to significant interest-rate increases. Danmarks Nationalbank's rate of interest on certificates of deposit was lifted to 2.6% at the end of Q1 2023 from -0.6% one year earlier. The higher interestrate level has improved the return on Jyske Bank's bond holdings etc. In addition, the acquisition of Handelsbanken Denmark and higher bank lending to corporate clients in the course of 2022 also added considerably to the higher level of net interest income.

Net fee and commission income decreased by 4% to DKK 658m. The decline from a historically high level in Q1 2022 was due to a decline in fees driven by activity in the housing market, lending growth, asset management and trading activities. These factors more than offset the contribution from the acquisition of Handelsbanken Denmark as well as the introduction of a new customer programme in 2022.

Value adjustments increased to DKK 240m from DKK 9m in the preceding year. The positive result can be attributed to a favourable development in the financial markets, including the impact from the spread narrowing on Danish mortgage bonds.

Other income was roughly unchanged at DKK 104m against DKK 105m. Share dividends, etc., rose whereas Q1 2022 showed positive results from investments in associates relating to Sanistål's sales process.

Income from operating lease (net) rose to DKK 84m from DKK 80m. Sales conditions in the used car market remained favourable.

Core expenses

Core expenses rose by 28% relative to the first quarter of 2022. The increase can primarily be attributed to the acquisition of Handelsbanken Denmark which contributed, among other things, to an increase in the number of full-time employees as well as higher expenses for data processing centres and amortisation of customer relations. Cost synergies amounted to DKK 38m in Q1 2023.

Core expenses (DKKm)

	Q1 2023	Q1 2022
Employee costs	885	724
IT costs	441	319
Rent, etc.	20	17
Amortisation, depreciation and
impairment	43	26
Other operating expenses	91	74
Total	1,480	1,160

Underlying core expenses rose, among other things, as a result of a higher number of full-time employees and wage increases relating to the collective agreement.

To this must be added integration and restructuring costs of DKK 38m relating to the acquisition of Handelsbanken Denmark.

Loan impairment charges

Loan impairment charges amounted to an expense of DKK 96m against an income of DKK 55m in Q1 2022. The expense can be attributed to higher default risks in the Danish economy, which sparked an increase in model-based loan impairment charges. Post-model adjustments relating to loan impairment charges were at the same time maintained at a high level as a result of the high degree of macroeconomic uncertainty, and consequently, total loan impairment charges reserved for macroeconomic risks increased. The credit quality is still solid with a low level of nonperforming loans and a low level of write-offs.

Investment portfolio earnings

Investment portfolio earnings amounted to DKK 31m in Q1 2023 against DKK 4m in the same period of 2022. The positive results were due to a favourable development in the financial markets which more than offset rising funding costs due to a higher interest-rate level. The hedging of additional tier 1 capital instruments in SEK had a negative effect of DKK 3m in the first quarter of 2023 and was offset by a positive adjustment of shareholders' equity.

Investment portfolio earnings (DKKm)

	Q1 2023	Q1 2022
Net interest income	-38	19
Net fee and commission income	-1	0
Value adjustments	77	-6
Income	38	13
Expenses	7	9
Investment portfolio earnings	31	4

Tax

Tax amounted to DKK 438m in Q1 2023 against DKK 237m in Q1 2022, equivalent to an effective tax rate of 25.4% and 21.8%, respectively. The tax rate increased due to a new special tax on the financial sector, leading to an increased tax rate for financial companies from 22.0% in 2022 to 25.2% in 2023 and 26.0% from 2024.

Q1 2023 compared to Q4 2022

Earnings per share amounted to DKK 19.5 in Q1 against DKK 23.7 in Q4, corresponding to a net profit of DKK 1,289m and DKK 1,558m, respectively.

Core income rose by 7% due to higher net interest income which more than offset lower value adjustments.

Net interest income increased by 25%. The increase was due to the full-quarter effect from the acquisition of Handelsbanken Denmark and higher interest rates relating to surplus liquidity. These factors more than offset two fewer days of interest.

Net fee and commission income declined by 3% relative to the preceding quarter. The development can primarily be attributed to seasonally lower investment and custody fees as well as higher fees paid under leasing activities.

Other income rose to DKK 104m from DKK 44m due to seasonally higher share dividends.

Income from operating lease (net) amounted to DKK 84m against DKK 60m due to the continuing favourable sales conditions in the used car market. In addition, Q4 2022 was dominated by a higher post-model adjustments relating to impairment charges.

Value adjustments amounted to DKK 240m against DKK 523m in the preceding quarter. The positive results can be attributed to a favourable development in the financial markets, including the impact from the spread narrowing of Danish mortgage bonds.

Core expenses rose to DKK 1,480m from DKK 1,329m. The development can be attributed to the full quarterly effect from Handelsbanken Denmark which was only recognised with one month in the preceding quarter. One-offs relating to the acquisition declined from DKK 66m to DKK 38m.

Loan impairment charges amounted to an expense of DKK 96m against an income of DKK 158m in the preceding quarter. The higher level was due to default risks in the Danish economy.

Investment portfolio earnings amounted to DKK 31m against DKK -29m in the preceding quarter. The positive results were due to a favourable development in the financial markets which more than offset rising funding costs due to a higher interest-rate level.

Business volume

Summary of balance sheet, end of period (DKKbn)
	Q1	Q1	Index	Q1	Q4	Q3	Q2	Q1	FY
	2023	2022	23/22	2023	2022	2022	2022	2022	2022
Loans and advances	542.0	479.9	113	542.0	541.7	466.5	481.8	479.9	541.7
- of which mortgage loans	338.2	329.5	103	338.2	333.7	304.5	319.1	329.5	333.7
- of which bank loans	155.1	110.5	140	155.1	155.5	115.2	113.3	110.5	155.5
- of which repo loans	48.7	39.9	122	48.7	52.5	46.8	49.4	39.9	52.5
Bonds and shares, etc.	99.7	90.0	111	99.7	97.4	88.7	89.4	90.0	97.4
Total assets	786.0	650.2	121	786.0	750.0	672.0	667.1	650.2	750.0
Deposits	228.3	141.9	161	228.3	208.4	162.1	156.4	141.9	208.4
- of which bank deposits	202.2	127.1	159	202.2	189.1	149.2	140.1	127.1	189.1
- of which repo and triparty deposits	26.1	14.8	176	26.1	19.3	12.9	16.3	14.8	19.3
Issued bonds at fair value	331.2	327.1	101	331.2	324.2	299.8	312.2	327.1	324.2
Issued bonds at amortised cost	96.8	67.8	143	96.8	95.4	87.7	77.7	67.8	95.4
Subordinated debt	6.1	5.5	111	6.1	6.4	6.4	5.4	5.5	6.4
Holders of additional tier 1 capital	3.3	3.3	100	3.3	3.3	3.3	3.3	3.3	3.3
Shareholders' equity	38.6	35.0	110	38.6	37.3	35.8	35.2	35.0	37.3

Jyske Bank's total loans and advances (excl. repo loans) came to DKK 493.3bn at end-Q1 2023 and consisted of 69% mortgage loans and 31% bank loans and advances. This is an increase of 1% relative to DKK 489.2bn at the end of 2022 due to higher mortgage loans at fair value which was, apart from lending growth, supported by higher bond prices.

Nominal mortgage loans rose to DKK 367.3bn from DKK 365.6bn. Higher lending to corporate clients and subsidised housing more than offset the effect from lower lending to private clients. Mortgage loans to private clients have in the past quarters been on the decline due to lower housing prices combined with debt reductions attributed to remortgaging of fixed-rate mortgage loans following the interest-rate increases.

Bank loans and advances amounted to DKK 155.1bn against DKK 155.5bn at the end of 2022. Loans and advances under banking activities were roughly unchanged since lower mortgage-like bank loans were offset by higher bank lending to corporate clients. Mortgage-like bank loans declined primarily due to transfer of loans to Jyske Realkredit. Loans under leasing activities increased by 1% in the first quarter of 2023 due to higher loans for corporate clients despite challenging supply chains in the auto industry.

Bank deposits amounted to DKK 202.2bn, corresponding to an increase by 7% relative to the end of 2022. The development was driven by corporate clients and was dominated by a rising proportion of time deposits which rose to 27% from 19% of total deposits. Bank deposits were at a record-high of DKK 47.1bn higher than bank loans and advances at the end of the first quarter of 2023.

The business volume within asset management rose to DKK 222bn at the end of Q1 2023 from DKK 218bn at the end of 2022. The development in Q1 was positively affected by rising prices in equity and bond markets. In addition, net sales of investment products for both retail clients and professional and institutional clients were positive in the quarter.

Credit quality

Loan impairment charges and provisions for guarantees (DKKbn)

	Q1	Q1	Index	Q1	Q4	Q3	Q2	Q1	FY
	2023	2022	23/22	2023	2022	2022	2022	2022	2022
Loans, advances and guarantees	553.2	495.0	112	553.2	552.8	477.0	495.8	495.0	552.8
- stage 1	527.0	467.7	113	527.0	528.4	453.6	470.7	467.7	528.4
- stage 2	20.0	20.9	96	20.0	17.8	16.9	18.4	20.9	17.8
- stage 3	6.1	6.4	95	6.1	6.5	6.5	6.7	6.4	6.5
- purchased or originated credit-impaired	0.1	0.0	-	0.1	0.1	0.0	0.0	0.0	0.1
Balance of loan impairment charges	4.7	4.9	96	4.7	4.6	4.7	4.8	4.9	4.6
- stage 1	1.3	1.2	108	1.3	1.2	1.1	1.1	1.2	1.2
- stage 2	1.1	1.0	110	1.1	1.1	1.2	1.0	1.0	1.1
- stage 3	2.3	2.7	85	2.3	2.3	2.4	2.7	2.7	2.3
Balance of discounts for acquired assets	0.5	0.1	500	0.5	0.6	0.0	0.0	0.1	0.6
Non-accrual loans and past due exposures	0.5	0.5	105	0.5	0.6	0.5	0.5	0.5	0.6
Loan impairment charges.	0.1	-0.1	-	0.1	-0.2	-0.2	-0.2	-0.1	-0.6
Write-offs	0.1	0.2	26	0.1	0.1	0.1	0.1	0.2	0.4

Jyske Bank's credit risks primarily relate to mortgage loans secured against real property as well as bank loans, advances and guarantees. Loans, advances and guarantees are distributed with 59% to corporate clients, 39% to personal clients, and 2% to public authorities. The total exposure was roughly unchanged at the end of Q1 2023 compared with the end of 2022.

Loans, advances and guarantees – by sector (DKKbn/%)

		Loans,		Impairment
		advances and guarantees		ratio
	Q1	Q4	Q1	Q4
	2023	2022	2023	2022
Public authorities	13.5	13.8	0.0	0.0
Agriculture, hunting,
forestry and fishing	13.7	12.5	1.0	1.2
Manufacturing industry
and mining	14.4	14.8	2.3	1.5
Energy supply	10.4	9.0	0.2	0.3
Construction	10.5	10.4	1.0	0.9
Commerce	14.6	13.0	2.1	2.2
Transport, hotels and
restaurants	6.7	6.4	1.7	1.7
Information and
communication	3.2	3.1	4.4	4.3
Financing and insurance	56.9	62.7	1.5	1.4
Real property	167.8	165.3	0.5	0.5
Other sectors	26.4	24.5	1.1	1.0
Corporate Clients	324.6	321.7	1.0	0.9
Personal clients	215.1	217.3	0.7	0.7
Total	553.2	552.8	0.9	0.8

Loan impairment charges and provisions for guarantees amounted to an expense of DKK 96m in the first quarter of 2023, corresponding to 2bp of gross loans, advances and guarantees. The effect on the income statement is distributed with an expense of DKK 119m relating to banking activities, an income of DKK 46m relating to mortgage activities, and an expense of DKK 23m relating to

leasing activities. The expense in Q1 2023 was generally caused by higher model-based loan impairment charges due to rising default risks in the Danish economy. Despite the higher level of loan impairment charges, the level of post-model adjustments was unchanged and hence the total loan impairment charges relating to macroeconomic risks indirectly increased.

At the end of the first quarter of 2023, stage 3 loans amounted to 1.1% of loans, advances and guarantees against 1.2% at the end of 2022. The decline can be attributed to a higher coverage ratio and to a lower level of gross non-performing loans and advances. The proportion of loans subject to forbearance measures fell to 1.3% from 1.4%.

At the end of the first quarter of 2023, Jyske Bank's balance of loan impairment charges amounted to DKK 4.7bn, corresponding to 0.9% of loans, advances and guarantees against DKK 4.6bn and 0.8%, respectively, at the end of 2022. Inclusive of the balance of discounts for acquired assets at DKK 0.5bn, Jyske Bank's total balance of impairment charges and discounts amounted to DKK 5.2bn, or 0.9% of loans, advances and guarantees.

At the end of the first quarter of 2023, loan impairment charges based on post-model adjustments amounted to DKK 1,425m which is unchanged compared with the end of 2022. The post-model adjustments were maintained despite higher model-based loan impairment charges and still primarily reflect macro-economic risks associated with the energy and inflation crisis. A material post-model adjustments is also still included in the balance of discounts for acquired assets associated with the acquisition of Handelsbanken Denmark.

Capital and Liquidity Management

Capital management

Jyske Bank's objective is to achieve a capital ratio of 20%-22% and a common equity tier 1 capital ratio of 15%-17% in the coming years. At these levels, Jyske Bank can comfortably absorb the effects from future legislative changes while at the same time having the required strategic scope.

At the end of the first quarter of 2023, Jyske Bank had a capital ratio of 19.6% and a common equity tier 1 capital ratio of 15.4% compared to 19.5% and 15.2%, respectively, at the end of 2022. In the first quarter of 2023, the capital ratios increased due to the recognition of the profit for the period, which more than compensated for the effect from an increase in the weighted risk exposure.

Capital ratios (%)

	Q1 2023	Q4 2022
Capital ratio	19.6	19.5
Core capital ratio incl. hybrid capital	16.9	16.7
Common equity tier 1 capital ratio	15.4	15.2

The total risk weighted exposure amounted to DKK 225.1bn at the end of the first quarter of 2023 against DKK 220.9bn at the end of 2022. The increase can primarily be attributed to higher market risk which rose from a low level.

Weighted risk exposure (DKKm)

	Q1 2023	Q4 2022
Credit risk, etc.	195,866	195,379
Market risk	11,539	8,381
Operational risk	17,675	17,161
Total	225,080	220,921

The Supervisory Board is on an ongoing basis evaluating the possibility of capital distribution to shareholders.

Capital requirement

The requirements of the total capital base consist of a Pillar I requirement of 8% of the weighted risk exposure with a capital addition for above-normal risk under Pillar II and buffers.

At the end of the first quarter of 2023, Jyske Bank's individual solvency requirement was 11.0% of the weighted risk exposure against 10.8% at the end of 2022. To this must be added a SIFI requirement of 1.5% and a capital conservation buffer of 2.5% as well as the now fully phased-in countercyclical capital buffer of 2.4%. Hence, the total capital requirement is 17.4%, which is an increase

compared with the end of 2022 when the capital requirement was 16.7%.

Capital requirement (%)

	Capital ratio		CET ratio
	Q1 2023	Q4 2022	Q1 2023	Q4 2022
Pillar I	8.0	8.0	4.5	4.5
Pillar II	3.0	2.8	1.7	1.6
SIFI	1.5	1.5	1.5	1.5
Capital conservation
buffer	2.5	2.5	2.5	2.5
Countercyclical buffer	2.4	1.9	2.4	1.9
Capital requirement	17.4	16.7	12.6	12.0

Both SIFI requirements, capital conservation buffer and the countercyclical capital buffer have been fully phased in and in aggregate account for 6.4% of the weighted risk exposure.

Excess capital relative to CET1 capital requirement (%)

	Q1 2023	Q4 2022
Common equity tier 1 capital ratio	15.4	15.2
Common equity tier 1 capital requirement	12.6	12.0
Excess capital	2.8	3.2

Consequently, compared with the common equity tier 1 capital ratio, the excess capital adequacy came to 2.8% of the weighted risk exposure, corresponding to DKK 6.3bn against 3.2% and DKK 7.0bn, respectively, at the end of 2022.

Liquidity management

Jyske Bank's biggest source of funding is covered bonds and mortgage bonds, which amounted to DKK 331bn, corresponding to 42% of the balance sheet at the end of the first quarter of 2023. The second-largest funding source is client deposits, which amounted to DKK 202bn, of which a high proportion consists of deposits from small and medium-sized enterprises as well as personal clients.

At the end of the first quarter of 2023, the Jyske Bank Group's liquidity coverage ratio (LCR) was 174%, down from a very high seasonal level at the end of 2022. The Group's internal exposure limit is a LCR of at least 120%. Nevertheless, the aim is that LCR is, under normal market conditions, above 150%.

The LCR buffer after haircuts at the end of the first quarter of 2023 is shown below.

Liquidity Coverage Ratio (LCR)

Level 1a assets Level 1b assets Level 2a + 2b assets	DKKbn 112.1 50.5 3.5	% 68 30 2
Total	166.1	100

At the end of the first quarter of 2023, the Jyske Bank Group's Net Stable Funding Ratio (NSFR) was 137% against 126% at the end of 2022.

Refinancing profile

The Group is on an ongoing basis active in the French commercial paper (CP) market. At the end of the first quarter of 2023, the outstanding volume under the CP programme amounted to DKK 70bn against DKK 71bn at the end of 2022.

At the end of the first quarter of 2023, outstanding unsecured senior debt amounted to DKK 29.4bn against DKK 27.8bn at the end of 2022. At the end of the first quarter of 2023, outstanding CRD-IV compliant tier 2 and AT1 capital instruments amounted to DKK 6.2bn and DKK 3.3bn, respectively, which is unchanged relative to the end of 2022.

The run-off profile for the Group's unsecured senior debt, etc. determined at the end of the first quarter of 2023 is illustrated by the above chart.

At the end of the first quarter of 2023, covered bonds involving refinancing risk amounted to DKK 246bn, and the run-off profile of the underlying mortgage loans is shown in the following chart.

Issuance activity and funding plans

At the publication of its Interim Financial Report for the first quarter of 2023, Jyske Bank had issued the following bonds in the international capital markets in 2023.

Issuance activity
		Maturity Credit spread
SEK 2.25bn non-pref. senior	02.02.2027	3M CIBOR
(value date 02.02.2023)	(call 2026)	+148 bp.
NOK 0.2bn non-pref. senior	02.02.2027	3M CIBOR
(value date 09.02.2023)	(call 2026)	+150 bp.
EUR 500m non-pref. senior	26.10.2028	3M CIBOR
(value date 26.04.2023)	(call 2027)	+150 bp.

Based on the expected trend in the weighted risk exposure and changed regulation, Jyske Bank anticipates a requirement (inclusive of an internal buffer for statutory requirements) for MRELeligible debt instruments in an amount of DKK 25bn - 27bn, of which about DKK 6bn in the form of preferred senior debt and DKK 19bn - 21bn in the form of non-preferred senior debt. At the end of the first quarter of 2023, the outstanding volume of MREL-eligible debt instruments totalled DKK 25.9bn, distributed by DKK 5.7bn and DKK 20.2bn on preferred senior debt and non-preferred senior debt, respectively, with a time to maturity of more than 12 months.

In April 2023, Jyske Bank issued non-preferred senior debt in the amount of EUR 500m. Further issues of senior debt will depend on the balance sheet development. Any issue of additional tier 1 capital will depend on the Group's capital position as well as the development in the capital markets.

Credit rating

Jyske Bank is being rated by Standard & Poor's (S&P). Jyske Realkredit has the same credit rating as Jyske Bank.

S&P credit rating

Jyske Bank issuer rating	Rating	Outlook
Stand Alone Credit Profile (SACP)	A-	Stable
Issuer rating (Issuer Credit Rating)	A	Stable
Short-term preferred senior debt (preferred senior)	A-1	Stable
Long-term preferred senior debt (preferred senior)	A	Stable
Long-term non-preferred senior debt (non-preferred senior)	BBB+	Stable
Tier 2	BBB	Stable
Additional Tier 1 (AT1)	BB+	Stable
Jyske Realkredit bond issues
Capital Centre E covered bonds	AAA
Capital Centre B mortgage bonds	AAA

Sustainability ratings

Jyske Bank has chosen to engage with certain ESG raters, whose ratings appear from the table below.

Sustainability ratings
ESG raters	Rating
MSCI (CCC to AAA)	AAA
Sustainalytics (Negl. to Severe Risk)	Medium risk
ISS ESG (D- to A+)	C Prime
Moody's ESG Solutions (0 to 100)	47
CDP (D- to A)	C

Supervisory diamond

The supervisory diamond defines a number of special risk areas including specified limits that financial institutions should generally not exceed.

The supervisory diamond for Jyske Bank A/S

	Q1 2023	Q4 2022
Sum of large exposures <175% of common equity tier 1 capital Increase in loans and advances <20%	112%	116%
annually Exposures to property administration and	40%	51%
property transactions <25% of total loans and advances	12%	12%
Liquidity benchmark >100%	133%	135%

Jyske Bank A/S exceeded the limits for lending growth due to the acquisition of Handelsbanken Denmark. Exclusive of Handelsbanken Denmark, lending growth was 3%. Other indicators of the supervisory diamond were met.

The supervisory diamond for Jyske Realkredit A/S

	Q1 2023	Q4 2022
Concentration risk <100%	45.9%	47.8%
Increase in loans <15% annually in the
segment:
Owner-occupied homes and vacation
homes	10.8%	9.3%
Residential rental property	7.0%	6.5%
Other sectors	7.6%	6.6%
Borrower's interest-rate risk <25%
Residential property	19.5%	17.4%
Instalment-free schemes <10%
Owner-occupied homes and vacation
homes	4.1%	4.2%
Loans with frequent interest-rate fixing:
Refinancing (annually) <25%	11.9%	14.1%
Refinancing (quarterly) <12.5%	3.5%	1.6%

Jyske Realkredit A/S meets all the benchmarks of the supervisory diamond.

Other Information

Events after the end of the accounting period

No events have taken place during the period prior to the publication of the Interim Financial Report for the first quarter of 2023 that have any material effect on the financial position of Jyske Bank.

Financial calendar 2023

Jyske Bank anticipates releasing financial statements on the following dates in 2023.

Financial calendar 2023

15 August	Interim Financial Report, H1 2023
31 October	Interim Financial Report, Q1 - Q3 2023

Further information

For further information, please see jyskebank.com/investorrelations. Here you will find an interview with Anders Dam, Managing Director and CEO, detailed financial information as well as Jyske Bank's Annual Report 2022 and Risk and Capital Management 2022, which gives further information about Jyske Bank's internal risk and capital management as well as regulatory issues, including a description of the most important risks and elements of uncertainty that may affect Jyske Bank.

Also, please see www.jyskerealkredit.com. Here Jyske Realkredit's Interim Financial Report for Q1 2023 is available.

Business Segments

The business segments reflect all activities in banking, mortgage financing and leasing.

Banking Activities

Summary of income statement (DKKm)

	Q1	Q1	Index	Q1	Q4	Q3	Q2	Q1	FY
	2023	2022	23/22	2023	2022	2022	2022	2022	2022
Net interest income	1,339	602	222	1,339	959	693	635	602	2,889
Net fee and commission income	809	811	100	809	867	793	722	811	3,193
Value adjustments	154	16	963	154	434	-292	-47	16	111
Other income	99	100	99	99	30	16	65	100	211
Core income	2,401	1,529	157	2,401	2,290	1,210	1,375	1,529	6,404
Core expenses	1,327	1,017	130	1,327	1,181	1,069	1,037	1,017	4,304
Core profit before loan impairment charges	1,074	512	210	1,074	1,109	141	338	512	2,100
Loan impairment charges	119	-20	-	119	-15	-231	-125	-20	-391
Core profit	955	532	180	955	1,124	372	463	532	2,491
Investment portfolio earnings	31	4	775	31	-29	-119	13	4	-131
Profit before one-off costs	986	536	184	986	1,095	253	476	536	2,360
One-off costs relating to Handelsbanken DK	-38	0	-	-38	-66	-67	-11	0	-144
Pre-tax profit	948	536	177	948	1,029	186	465	536	2,216

Summary of balance sheet, end of period (DKKbn)

Loans and advances	180.1	128.0	141	180.1	184.6	139.0	140.0	128.0	184.6
- of which bank loans	131.4	88.1	149	131.4	132.1	92.2	90.6	88.1	132.1
- of which repo loans	48.7	39.9	122	48.7	52.5	46.8	49.4	39.9	52.5
Total assets	390.8	267.9	146	390.8	363.1	313.7	300.2	267.9	363.1
Deposits	228.2	141.7	161	228.2	208.2	161.9	156.2	141.7	208.2
- of which bank deposits	202.1	126.9	159	202.1	188.9	149.0	139.9	126.9	188.9
- of which repo and triparty deposits	26.1	14.8	176	26.1	19.3	12.9	16.3	14.8	19.3
Issued bonds	89.2	63.1	141	89.2	89.3	82.3	73.7	63.1	89.3

Profit

Pre-tax profit amounted to DKK 948m for the first quarter of 2023 against DKK 536m for the corresponding period in 2022. The increase was fuelled, in particular, by the acquisition of Handelsbanken Denmark and the impact from the higher interest-rate level.

Core income

Core income rose by 57% relative to the first quarter of 2022, and net interest income was the largest contributor to the development.

Net Interest income increased by 122% relative to the first quarter of 2022. The increase was especially due to significant interest-rate increases. Danmarks Nationalbank's rate of interest on certificates of deposit was lifted to 2.6% at the end of Q1 2023 from -0.6% one year earlier. The higher interest-rate level has improved the return on Jyske Bank's bond holdings etc. In addition, the acquisition of Handelsbanken Denmark and higher bank lending to corporate clients in the course of 2022 also added considerably to the advance in net interest income.

Net fee and commission income was roughly unchanged at DKK 809m. Adjusted for internal distribution fees received from Jyske Realkredit, net fee and commission income under banking activities rose by 4% relative to the first quarter of 2022. The increase can be attributed to the effect from the acquisition of Handelsbanken Denmark as well as the introduction of a new customer programme. These factors more than offset the effect from lower income from securities trading and custody services as well as lower loan application fees.

Value adjustments increased to DKK 154m from DKK 16m in the preceding year. The positive results can be attributed to a favourable development in the financial markets, including the impact from the spread narrowing of Danish mortgage bonds.

Other income was roughly unchanged at DKK 99m against DKK 100m. Share dividends, etc., rose whereas the first quarter of 2022 showed positive results from investments in associates.

Core expenses

Core expenses rose by 30% relative to the first quarter of 2022. The increase can primarily be

attributed to the acquisition of Handelsbanken Denmark which contributed to an increase in the number of full-time employees as well as higher expenses for data processing centres and amortisation of customer relations. To this must be added one-offs of DKK 38m relating to the acquisition of Handelsbanken Denmark.

Loan impairment charges

Loan impairment charges amounted to an expense of DKK 119m against an income of DKK 20m in the first quarter of 2022. The expense can be attributed to higher default risks in the Danish economy, which sparked an increase in modelbased loan impairment charges. Post-model adjustments relating to loan impairment charges were maintained at a high level as a result of the high degree of macroeconomic uncertainty, and consequently, total loan impairment charges to meet macroeconomic risks were increased. The credit quality is still solid with a low level of nonperforming loans and advances and a low level of write-offs.

Investment portfolio earnings

Investment portfolio earnings amounted to DKK 31m in Q1 2023 against DKK 4m in the same period of 2022. The positive results were due to a favourable development in the financial markets which more than offset rising funding costs due to a higher interest-rate level. The hedging of additional tier 1 capital instruments in SEK had a negative effect of DKK 3m in the first quarter of 2023.

Business volume

Bank loans and advances amounted to DKK 131.4bn against DKK 132.1bn at the end of 2022. Lower mortgage-like bank loans and advances were offset by higher bank loans to corporate clients. Mortgage-like bank loans declined primarily due to the transfer of loans to Jyske Realkredit.

Bank deposits amounted to DKK 202.1bn, corresponding to an increase by 7% relative to the end of 2022. The development was fuelled by corporate clients and was characterised by a rising proportion of time deposits.

Q1 2023 compared to Q4 2022

In the first quarter of the year, pre-tax profit amounted to DKK 948m against DKK 1,029m in the fourth quarter.

Core income rose by 5% due to higher net interest income.

Net interest income rose by 40% to DKK 1,339m. The increase was due to the full-quarter effect from the acquisition of Handelsbanken Denmark and higher interest rates relating to surplus liquidity. These factors more than offset two fewer days of interest.

Net fee and commission income declined to DKK 809m from DKK 867m. Exclusive of distribution fees from Jyske Realkredit, net fee and commission income fell by 5% in the quarter. The development can primarily be attributed to seasonally lower investment and custody fees.

Other income rose to DKK 99m from DKK 30m due to seasonally higher share dividends etc.

Value adjustments amounted to DKK 154m against DKK 434m in the preceding quarter. The continued positive results can be attributed to a favourable development in the financial markets, including the effect from spread narrowing of Danish mortgage bonds.

Core expenses rose to DKK 1,327m from DKK 1,181m. The development can be attributed to the full quarterly effect from Handelsbanken Denmark which was recognised with one month in the preceding quarter. One-offs relating to the acquisition of Handelsbanken Denmark declined from DKK 66m to DKK 38m.

Loan impairment charges amounted to an expense of DKK 119m against an income of DKK 15m in the preceding quarter. The higher level was due to higher default risks in the Danish economy.

Investment portfolio earnings amounted to DKK 31m against DKK -29m in the preceding quarter. The positive results were due to a favourable development in the financial markets which more than offset rising funding costs due to a higher interest-rate level.

Mortgage activities

Summary of income statement (DKKm)

	Q1	Q1	Index	Q1	Q4	Q3	Q2	Q1	FY
	2023	2022	23/22	2023	2022	2022	2022	2022	2022
Administration margin income, etc.1	627	588	107	627	599	581	587	588	2,355
Other net interest income	140	-2	-	140	109	32	21	-2	160
Net fee and commission income	-150	-121	124	-150	-190	-194	-148	-121	-653
Value adjustments	87	-9	-	87	88	-10	-67	-9	2
Other income	0	0	-	0	0	0	0	0	0
Core income	704	456	154	704	606	409	393	456	1,864
Core expenses	106	100	106	106	99	95	100	100	394
Core profit before loan impairment charges	598	356	168	598	507	314	293	356	1,470
Loan impairment charges	-46	-37	124	-46	-167	-12	-56	-37	-272

Pre-tax profit 644 393 164 644 674 326 349 393 1,742 1 Administration margin income, etc. covers administration margin income as well as interest rate margin on jointly funded loans.

Summary of balance sheet (DKKbn)
Mortgage loans, nominal value	367.3	341.2	108	367.3	365.6	342.6	343.9	341.2	365.6
Mortgage loans, fair value	338.2	329.5	103	338.2	333.7	304.5	319.1	329.5	333.7
Total assets	367.7	357.4	103	367.7	359.6	332.7	341.8	357.4	359.6
Issued bonds	338.8	331.8	102	338.8	330.3	305.2	316.2	331.8	330.3

Profit

In the first quarter of 2023, pre-tax profit amounted to DKK 644m against DKK 393m in the first quarter of 2022. The improved results can primarily be attributed to a higher return on Jyske Realkredit's bond portfolio due to the rising level of interest rates.

Core income

In the first quarter of 2023, core income rose by 54% to DKK 704m from DKK 456m in the corresponding period of the preceding year. The increase can be attributed to higher net interest income and higher value adjustments.

Administration margin income, etc. increased by 7% to DKK 627m. The development was due to loans taken over from Handelsbanken Denmark in December 2022.

Other net interest income rose to DKK 140m from DKK -2m in the first quarter of 2022. The increase is due to higher interest income associated with Jyske Realkredit's bond portfolio as a result of the higher level of interest rates.

Net fee and commission income amounted to DKK -150m against DKK -121m in the first quarter of 2022. Exclusive of internal distribution fees paid, net fee and commission income fell by 33% due to lower remortgaging activity.

Value adjustments increased to DKK 87m from DKK -9m in the first quarter of 2022. A significant proportion of the bond portfolio has been invested in short-term bonds acquired below par and held to maturity which resulted in positive value adjustments in the first quarter of 2023.

Core expenses

Core expenses amounted to DKK 106m against DKK 100m in the corresponding period of the preceding year. The increase is due to payroll costs related to employees taken over from Handelsbanken Denmark.

Loan impairment charges

Loan impairment charges amounted to an income of DKK 46m against an income of DKK 37m in the first quarter of 2022. The income in the first quarter of 2023 related primarily to a reversal of loan impairment charges in individual corporate commitments. Post-model adjustments relating primarily to macroeconomic risks amounted to DKK 585m, which is unchanged compared with the end of 2022.

Business volume

Mortgage loans stated at nominal value rose by DKK 1.7bn to DKK 367.3bn compared to the level at the end of 2022. The increase related to loans to corporate clients. Mortgage loans at fair value rose to DKK 338.2bn from DKK 333.7bn in the same period. The higher increase in mortgage loans at fair value can be attributed to rising prices of Danish mortgage bonds.

For further details about Jyske Realkredit, please see Jyske Realkredit's Interim Financial Report for the first quarter of 2023.

Q1 2023 compared to Q4 2022

In the first quarter of 2023, pre-tax profit amounted to DKK 644m against DKK 674m in the fourth quarter of 2022.

Core income increased by 16% to DKK 704m. The increase was driven by net interest and fee income.

Administration margin income etc. rose by 5% to DKK 627m, which can primarily be attributed to the take-over of loans from Handelsbanken Denmark in December 2022.

Other net interest income rose to DKK 140m from DKK 109m in the previous quarter. The development can be attributed to higher interest income relating to the bond portfolio as a result of the higher level of interest rates.

Net fee and commission income amounted to DKK -150m against DKK -190m. Exclusive of internal distribution fees paid, net fee and commission income increased to 11% due to seasonally higher refinancing activity.

Value adjustments were roughly unchanged at DKK 87m against DKK 88m in the preceding quarter. A significant proportion of the bond portfolio has been invested in short-term bonds acquired below par and held to maturity which resulted in positive value adjustments in the first quarter of 2023.

Core expenses amounted to DKK 106m against DKK 99m in the preceding quarter. The increase is due to payroll costs related to employees taken over from Handelsbanken Denmark.

Loan impairment charges amounted to an income of DKK 46m against an income of DKK 167m in the preceding quarter. The income in the first quarter of 2023 related primarily to a reversal of impairment charges in individual corporate commitments.

Leasing activities

Summary of income statement (DKKm)

	Q1	Q1	Index	Q1	Q4	Q3	Q2	Q1	FY
	2023	2022	23/22	2023	2022	2022	2022	2022	2022
Net interest income	118	124	95	118	106	106	116	124	452
Net fee and commission income	-1	-7	14	-1	4	-1	-7	-7	-11
Value adjustments	-1	2	-	-1	1	2	21	2	26
Other income	5	5	100	5	14	4	5	5	28
Income from operating lease (net)	84	80	105	84	60	98	105	80	343
Core income	205	204	100	205	185	209	240	204	838
Core expenses	47	43	109	47	49	42	47	43	181
Core profit before loan impairment charges	158	161	98	158	136	167	193	161	657
Loan impairment charges	23	2	-	23	24	43	-11	2	58
Pre-tax profit	135	159	85	135	112	124	204	159	599

Summary of balance sheet, end of period (DKKbn)

Loans and advances	23.7	22.5	105	23.7	23.4	22.9	22.7	22.5	23.4
Total assets	27.4	24.9	110	27.4	27.3	25.6	25.1	24.9	27.3
Deposits	0.2	0.2	100	0.2	0.2	0.2	0.2	0.2	0.2

Profit

In the first quarter of 2023, pre-tax profit amounted to DKK 135m against DKK 159m in the first quarter of 2022. The decline can primarily be attributed to higher loan impairment charges.

Net interest income amounted to DKK 118m against DKK 124m in the first quarter of 2022. Higher lending rates were more than offset by higher funding costs.

Net fee and commission income, etc. amounted to an expense of DKK 1m against an expense of DKK 7m in the first quarter of 2022 due to lower fees paid.

Value adjustments amounted to DKK -1m in the first quarter of 2023 against DKK 2m for the same period in 2022.

In the first quarter of 2023, income from operating lease (net) rose to DKK 84m from DKK 80m in the first quarter of 2022 due to continued favourable sales conditions in the used car market.

In the first quarter of 2023, core expenses rose to DKK 47m from DKK 43m for the same period in 2022 due to higher administrative expenses.

Loan impairment charges and provisions for guarantees amounted to an expense of DKK 23m against an expense of DKK 2m in the first quarter of 2022 due to higher default risks in the Danish economy.

Business volume

At the end of the first quarter of 2023, loans under leasing activities increased by 1% to DKK 23.7bn relative to the level at the end of 2022 despite challenged supply chains in several sub-segments.

Q1 2023 compared to Q4 2022

In the first quarter of 2023, pre-tax profit rose to DKK 135m from DKK 112m in the preceding quarter.

Net interest income rose to DKK 118m from DKK 106m due to higher lending rates which more than offset rising funding costs.

Net fee and commission income amounted to DKK -1m in the first quarter of the year against DKK 4m in the preceding quarter as a result of higher fees paid.

Value adjustments were roughly unchanged at DKK -1m against DKK 1m in the fourth quarter.

Income from operating lease (net) rose to DKK 84m from DKK 60m. The high level can be attributed to continuing good sales conditions in the used car market.

Core expenses fell to DKK 47m from DKK 49m, due to slightly lower administrative expenses.

Loan impairment charges amounted to an expense of DKK 23m against an expense of DKK 24m in the preceding quarter. The level of loan impairment charges reflects higher default risks in the Danish economy.

Jyske Bank Group Jyske Bank Group

Income Statement and Statement of Comprehensive Income	19
Balance sheet at 31 March	20
Statement of Changes in Equity	21
Capital Statement	22
Cash Flow Statement	23
Notes	24
Jyske Bank A/S	45

Note			Jyske Bank Group
		Jyske Bank Group
	DKKm	Q1 2023	Q1 2022
	Income Statement
5	Interest income calculated according to the effective interest method	2,785	832
5	Other interest income	2,593	1,482
6	Interest expenses	3,193	989
	Net interest income	2,185	1,325
7	Fees and commission income	781	804
7	Fees and commission expenses	124	121
	Net interest and fee income	2,842	2,008
8 9	Value adjustments Other income	318 318	9 309
10	Employee and administrative expenses etc.	1,481	1,143
	Amortisation, depreciation and impairment charges	174	150
12	Loan impairment charges	96	-55
	Pre-tax profit	1,727	1,088
11	Tax	438	237
	Net profit for the period	1,289	851
	Distributed to:
	Jyske Bank A/S shareholders	1,250	815
	Holders of additional tier 1 capital (AT1)	39	36
	Total	1,289	851
	Earnings per share for the period
	Earnings per share for the period, DKK	19.45	12.14
	Earnings per share for the period, DKK, diluted	19.45	12.14
	Statement of Comprehensive Income
	Net profit for the period	1,289	851
	Other comprehensive income	0	0
	Comprehensive income for the period	1,289	851
	Distributed to:
	Jyske Bank A/S shareholders	1,250	815
	Holders of additional tier 1 capital (AT1)	39	36
	Total	1,289	851

Note				Jyske Bank Group
			Jyske Bank Group
		31 March	31 Dec.	31 March
	DKKm	2023	2022	2022
	Balance Sheet
	Assets
	Cash balance and demand deposits with central banks	95,308	58,519	36,689
	Due from credit institutions and central banks	7,643	8,347	8,780
13,14	Loans at fair value	340,427	337,632	331,536
15	Loans and advances at amortised cost	201,609	204,050	148,406
	Bonds at fair value	59,045	55,505	57,811
	Bonds at amortised cost	38,529	39,660	29,825
	Shares, etc.	2,111	2,260	2,352
	Intangible assets	3,315	3,328	0
	Property, plant and equipment	4,124	4,193	4,209
	Deferred tax assets	1,107	1,206	0
	Current tax assets	618	0	962
	Assets held temporarily with a view to sale	65	65	80
16	Other assets	32,064	35,232	29,551
	Total assets	785,965	749,997	650,201
	Liabilities
	Due to credit institutions and central banks	39,902	28,430	29,380
17	Deposits	228,348	208,405	141,905
18	Issued bonds at fair value	331,184	324,156	327,078
	Issued bonds at amortised cost	96,773	95,435	67,803
	Liabilities in disposal group with a view to sale	1	5	4
19	Other liabilities	40,722	45,585	38,895
20	Provisions	1,014	992	1,308
21	Subordinated debt	6,144	6,365	5,482
	Liabilities, total	744,088	709,373	611,855
	Equity
	Share capital	643	643	690
	Revaluation reserve	168	168	171
	Retained profit	37,768	36,512	34,136
	Jyske Bank A/S shareholders	38,579	37,323	34,997
	Holders of additional tier 1 capital (AT1)	3,298	3,301	3,349
	Total equity	41,877	40,624	38,346

Total equity and liabilities 785,965 749,997 650,201

DKKm

Statement of Changes in Equity

				Jyske Bank
		Revaluation	Retained	A/S		Total
	Share capital	reserve	profit	shareholders	AT1 capital*	equity
Equity at 1 January 2023	643	168	36,512	37,323	3,301	40,624
Net profit for the period	0	0	1,250	1,250	39	1,289
Other comprehensive income	0	0	0	0	0	0
Comprehensive income for the period	0	0	1,250	1,250	39	1,289
Interest paid on additional tier 1 capital	0	0	0	0	-39	-39
Currency translation adjustment	0	0	3	3	-3	0
Acquisition of own shares	0	0	-737	-737	0	-737
Sale of own shares	0	0	740	740	0	740
Transactions with owners	0	0	6	6	-42	-36
Equity on 31 March 2023	643	168	37,768	38,579	3,298	41,877
Equity at 1 January 2022	726	171	34,014	34,911	3,355	38,266
Net profit for the period	0	0	815	815	36	851
Other comprehensive income	0	0	0	0	0	0
Comprehensive income for the period	0	0	815	815	36	851
Interest paid on additional tier 1 capital	0	0	0	0	-36	-36
Currency translation adjustment	0	0	6	6	-6	0
Reduction of share capital	-36	0	36	0	0	0
Acquisition of own shares	0	0	-1,291	-1,291	0	-1,291
Sale of own shares	0	0	556	556	0	556
Transactions with owners	-36	0	-693	-729	-42	-771
Equity on 31 March 2022	690	171	34,136	34,997	3,349	38,346

*Additional tier 1 capital (AT1) has no maturity. Payment of interest and repayment of principal are voluntary. Therefore, AT1 capital is recognised as equity. In September 2017, Jyske Bank issued AT1 amounting to EUR 150m with the possibility of early redemption in September 2027 at the earliest. The issue has a coupon of 4.75% until September 2027. In April 2019, Jyske Bank issued AT1 amounting to SEK 1bn with the possibility of early redemption in April 2024 at the earliest. The interest rate applicable to the issue until April 2024 is STIBOR+5%. In May 2021, Jyske Bank issued AT1 amounting to EUR 200m with the possibility of early redemption from 4 December 2028 at the earliest. The interest rate applicable to the issue until June 2029 is 3,625%. It applies to all AT1 issues that if the common equity tier 1 capital ratio of Jyske Bank A/S or the Jyske Bank Group falls below 7%, the loans will be written down.

	31 March	31 Dec.	31 March
DKKm	2023	2022	2022
Capital Statement
Shareholders' equity	38,579	37,323	34,997
Share buy-back programme, non-utilised limit	0	0	-543
Intangible assets	-3,315	-3,328	0
Prudent valuation	-245	-271	-243
Insufficient coverage of non-performing loans and guarantees	-108	-75	-56
Other deductions	-182	-93	-151
Common equity tier 1 capital	34,729	33,556	34,004
Additional tier 1 capital (AT1) after reduction	3,257	3,272	3,323
Core capital	37,986	36,828	37,327
Subordinated loan capital after reduction	6,078	6,178	5,204
Capital base	44,064	43,006	42,531
Weighted risk exposure involving credit risk, etc.	195,866	195,379	172,794
Weighted risk exposure involving market risk	11,539	8,381	9,707
Weighted risk exposure involving operational risk	17,675	17,161	14,634
Total weighted risk exposure	225,080	220,921	197,135
Capital requirement, Pillar I	18,006	17,674	15,771
Capital ratio (%)	19.6	19.5	21.6
Tier 1 capital ratio (%)	16.9	16.7	18.9
Common equity tier 1 capital ratio (%)	15.4	15.2	17.2

The capital statement was calculated according to Regulation (EU) No. 575/2013 of 26 June 2013 of the European Parliament and of the Council (CRR) with subsequent amendments.

For the determination of the individual solvency requirement, please see the report Risk and Capital Management 2022 and jyskebank.com/investorrelations/capitalstructure, which shows Jyske Bank's quarterly determination of the individual solvency requirement.

Note		Jyske Bank Group
	Q1	Q1
DKKm	2023	2022
Summary of Cash Flow Statement
Net profit for the period	1,289	851
Adjustment for non-cash operating items and change in working capital	35,208	5,462
Cash flows from operating activities	36,497	6,313
Acquisition and sale of property, plant and equipment Dividend received	-85 60	-41 33
Cash flows from investment activities	-25	-8
Interest paid on additional tier 1 capital Acquisition of own shares	-39 -737	-36 -1,291
Sale of own shares	740	556
Redemption of subordinated debt	-149	0
Repayment on lease commitment	-20	-15
Cash flows from financing activities	-205	-786
Cash flow for the period	36,267	5,519
Cash and cash equivalents, beginning of period	66,866	39,977
Foreign currency translation adjustment of cash at bank and in hand	-182	-27
Cash flow for the period, total Cash and cash equivalents, end of period	36,267 102,951	5,519 45,469
Cash and cash equivalents, end of period, comprise:
Cash balance and demand deposits with central banks	95,308	36,689
Due from credit institutions and central banks	7,643	8,780
Cash and cash equivalents, end of period	102,951	45,469

Note Jyske Bank Group

Table of contents, notes section

No.	Note	Page
1	Accounting Policies	25
2	Material accounting estimates	25
3	Key figures and ratios, five quarters	26
4	Segmental financial statements	27
5	Interest income	29
6	Interest expenses	29
7	Fees and commission income	29
8	Value adjustments	30
9	Other income	30
10	Employee and administrative expenses	30
11	Effective tax rate	30
12	Loan impairment charges and provisions for guarantees	31
13	Loans at fair value	37
14	Loans and advances at fair value broken down by property category	37
15	Loans and advances at amortised cost and guarantees broken down by sector	37
16	Other assets	38
17	Deposits	38
18	Issued bonds at fair value	38
19	Other liabilities	38
20	Provisions	39
21	Subordinated debt	39
22	Contingent liabilities	39
23	Shareholders	39
24	Related parties	40
25	Bonds provided as security	40
26	Notes on fair value	40
27	Fair value of financial assets and liabilities	42
28	The fair value hierarchy	43
29	Group overview	44

1 Accounting Policies

The Interim Financial Report for the period 1 January to 31 March 2023 for the Jyske Bank Group was prepared in accordance with IAS 34 Presentation of Interim Financial Reporting as adopted by the EU. Furthermore, the Interim Financial Report was prepared in accordance with the additional Danish disclosure requirements for the interim reports of listed financial undertakings. Due to the application of IAS 34, the presentation is more limited relative to the presentation of an annual report, and also the recognition and determination principles of the International Financial Reporting Standards (IFRS) were adhered to.

With effect as of 1 January 2023, Jyske Bank has implemented the following new or amended standards and interpretation:

• Amendments to:
• IAS1 Presentation of financial statements and IFRS Practice Statements 2: Evaluation of materiality
• IAS 8 Accounting policies, amendments to accounting estimates and errors
• IAS 12, Income taxes

These changes did not have an effect on Jyske Bank's financial reporting.

Except from the above, accounting policies remain unchanged compared with the annual report for 2022, including the full description of accounting policies.

2 Material accounting estimates

Post-model adjustments

Measurement of the carrying value of certain assets and liabilities requires the post-model adjustments of the influence of future events on the value of such assets and liabilities. Estimates of material importance to the financial reporting are, among other things, based on the determination of loan impairment charges and provisions for guarantees, the fair value of unlisted financial instruments, provisions made and acquisitions, cf. the detailed statement in note 68 in the Annual Report 2022. The estimates are based on assumptions which management finds reasonable, but which are inherently uncertain. Besides, the Group is subject to risks and uncertainties which may cause results to differ from those estimates. At the preparation of the interim financial statements, the material accounting estimates are the same as the ones applied at the preparation of the Annual Report for 2022.

In addition to the calculations of impairment charges, a management's assessment is performed of the impairment models and the ability of the expert-assessed impairment calculations to take into consideration the future economic development. To the extent that it is assessed that circumstances and risks are not included in the models, an addition to the impairment calculations is made which is based a post-model adjustments. This estimate is based on specific observations and is calculated on the basis of the expected risks of the specific sub-portfolios.

At the end of the first quarter of 2023, the Jyske Bank Group's post-model adjustments totalled DKK 1,425m.

DKKm	31 March 2023	31 Dec. 2022	31 March 2022
Corporate clients
Macroeconomic risks	760	760	828
Non-linear impairment effects	121	121	137
Process-related risks	55	55	40
Corporate clients, total	936	936	1,005
Personal clients
Macroeconomic risks	320	320	312
Non-linear impairment effects	34	34	78
Process-related risks	135	135	235
Personal clients, total	489	489	625
Post-model adjustments, total	1,425	1,425	1,630

It is essential that the basis of the post-model adjustments is well-founded on realistic circumstances and expectations that are not fully recognized in the impairment charges calculated. Documentation and determination will always consist of a coherent chain of reasoning between the well-founded circumstances and the expectation of loss. The determination is supported by data and is based on the specific portfolio, yet it may also be based on an estimate of the effect. On a quarterly basis, the post-model adjustments are reassessed on the basis of updated controls and analyses of the specific areas.

Jyske Bank's Annual Report 2022, note 14, describes in detail the additions estimated by management for loan impairment charges and provisions for guarantees.

Note						Jyske Bank Group
	DKKm	Q1 2023	Q4 2022	Q3 2022	Q2 2022	Q1 2022
3	Key figures and ratios, five quarters
	Summary of Income Statement
	Net interest income	2,185	1,760	1,423	1,389	1,325
	Net fee and commission income	657	681	598	567	683
	Value adjustments	318	514	-423	-104	9
	Other income	318	257	249	298	309
	Income	3,478	3,212	1,847	2,150	2,326
	Expenses	1,655	1,555	1,411	1,324	1,293
	Profit or loss before loan impairment charges	1,823	1,657	436	826	1,033
	Loan impairment charges	96	-158	-200	-192	-55
	Pre-tax profit	1,727	1,815	636	1,018	1,088
	Tax	438	257	133	178	237
	Net profit for the period	1,289	1,558	503	840	851
	Financial ratios
	Pre-tax profit, per share (DKK)*	26.3	27.6	9.3	15.2	15.7
	Earnings per share for the period (DKK)*	19.5	23.7	7.3	12.4	12.1
	Earnings per share for the period (diluted) (DKK)*	19.5	23.7	7.3	12.4	12.1
	Core profit per share (DKK)*	26.4	29.1	12.2	15.0	15.6
	Share price at end of period (DKK)	480	451	398	347	369
	Book value per share (DKK)*	600	581	557	548	532
	Price/book value per share (DKK)*	0.8	0.8	0.7	0.6	0.7
	Outstanding shares in circulation ('000)	64,272	64,264	64,251	64,258	65,836
	Average number of shares in circulation ('000)	64,264	64,263	64,260	64,835	67,154
	Capital ratio (%)	19.6	19.5	23.6	22.2	21.6
	Tier 1 capital ratio (%)	16.9	16.7	20.3	19.6	18.9
	Common equity tier 1 capital ratio (%)	15.4	15.2	18.6	17.9	17.2
	Pre-tax profit as a pct. of average equity*	4.4	4.9	1.7	2.8	3.0
	Profit for the period as a pct. of average equity*	3.3	4.2	1.3	2.3	2.3
	Income/cost ratio (%) inclusive of impairment charges	2.0	2.3	1.5	1.9	1.9
	Interest-rate risk (%)	2.5	2.4	1.9	1.9	2.5
	Currency risk (%)	0.0	0.0	0.0	0.0	0.0
	Accumulated impairment ratio (%)	0.9	0.8	1.0	1.0	1.0
	Impairment ratio for the period (%)	0.0	0.0	0.0	0.0	0.0
	No. of full-time employees at end-period	3,893	3,873	3,284	3,237	3,252
	Average number of full-time employees in the period	3,883	3,579	3,261	3,245	3,254

The financial ratios are based on the definitions and guidelines laid down by the Danish Financial Supervisory Authority, cf. note 69 to the consolidated financial statements for 2022.

* Financial ratios are calculated as if additional tier 1 capital (AT1) is recognised as a liability, cf. note 2 in the consolidated financial statements for 2022.

Segmental financial statements	Banking activities	Mortgage activities	Leasing activities	The Jyske Bank Group*
Q1 2023
Net interest income	1,339	767	118	2,224
Net fee and commission income	809	-150	-1	658
Value adjustments	154	87	-1	240
Other income	99	0	5	104
Income from operating lease (net)	0	0	84	84
Core income	2,401	704	205	3,310
Core expenses	1,327	106	47	1,480
Core profit before loan impairment charges	1,074	598	158	1,830
Loan impairment charges	119	-46	23	96
Core profit	955	644	135	1,734
Investment portfolio earnings	31	0	0	31
Profit or loss before non-recurring items	986	644	135	1,765
Non-recurring items relating to Handelsbanken DK	-38	0	0	-38
Pre-tax profit	948	644	135	1,727
Loans and advances	180,088	338,203	23,745	542,036
- of which mortgage loans	0	338,203	0	338,203
- of which bank loans	131,437	0	23,745	155,182
- of which repo loans	48,651	0	0	48,651
Total assets	390,820	367,725	27,420	785,965
Deposits	228,189	0	159	228,348
- of which bank deposits	202,062	0	159	202,221
- of which repo and triparty deposits	26,127	0	0	26,127
Issued bonds	89,189	338,768	0	427,957
Q1 2022
Net interest income	602	586	124	1,312
Net fee and commission income	811	-121	-7	683
Value adjustments	16	-9	2	9
Other income	100	0	5	105
Income from operating lease (net)	0	0	80	80
Core income	1,529	456	204	2,189
Core expenses	1,017	100	43	1,160
Core profit before loan impairment charges	512	356	161	1,029
Loan impairment charges	-20	-37	2	-55
Core profit	532	393	159	1,084
Investment portfolio earnings	4	0	0	4
Profit or loss before non-recurring items	536	393	159	1,088
Non-recurring items relating to Handelsbanken DK	0	0	0	0
Pre-tax profit	536	393	159	1,088
Loans and advances	127,973	329,514	22,455	479,942
- of which mortgage loans	0	329,514	0	329,514
- of which bank loans	88,028	0	22,455	110,483
- of which repo loans	39,945	0	0	39,945
Total assets	267,908	357,414	24,879	650,201
Deposits	141,696	0	209	141,905
- of which bank deposits	126,908	0	209	127,117
- of which repo and triparty deposits	14,788	0	0	14,788
Issued bonds	63,123	331,758	0	394,881

* The relationship between income statement items under 'The Jyske Bank Group' (key financial data) and the income statement page 19 appears from the next page.

DKKm

4 Segmental financial statements, cont.

Core profit and investment portfolio earnings

The pre-tax profit for the first quarter of 2023 broken down by core earnings and investment portfolio earnings as well as oneoff costs is stated below:

Breakdown of the net profit or loss for the period			Q1 2023				Q1 2022
DKKm	Core profit	Inv. portfolio earnings	One-off costs	Reclas sification	Total	Core profit	Inv. portfolio earnings	Reclas sification	Total
Net interest income	2,224	-38	0	-1	2,185	1,312	19	-6	1,325
Net fee and commission income	658	-1	0	0	657	683	0	0	683
Value adjustments	240	77	0	1	318	9	-6	6	9
Other income	104	0	0	0	104	105	0	0	105
Income from operating lease (net)	84	0	0	130	214	80	0	124	204
Income	3,310	38	0	130	3,478	2,189	13	124	2,326
Expenses	1,480	7	38	130	1,655	1,160	9	124	1,293
Profit before loan impairment
charges	1,830	31	-38	0	1,823	1,029	4	0	1,033
Loan impairment charges	96	0	0	0	96	-55	0	0	-55
Pre-tax profit	1,734	31	-38	0	1,727	1,084	4	0	1,088

Alternative performance targets

The alternative performance targets applied in the management's review constitute valuable information for readers of financial statements as they provide a more uniform basis for comparison of accounting periods. No adjusting entries are made, and therefore the net profit or loss for the year will be the same in the alternative performance targets of the management's review and in the IFRS financial statements.

Core profit is defined as the pre-tax profit exclusive of investment portfolio earnings. Hence earnings from clients are expressed better than in the IFRS financial statements.

Investment portfolio earnings are defined as the return on the Group's portfolio of shares, bonds, derivatives and equity investments, yet exclusive of the liquidity buffer and certain strategic equity investments. Investment portfolio earnings are calculated after expenses for funding and attributable costs.

Non-recurring items are costs relating to the acquisition of Svenska Handelsbanken's Danish activities. These one-offs are included in the IFRS profit and loss account under expenses for staff and administrative expenses, etc.

The above table illustrates relationships between income statement items under 'The Jyske Bank Group' (key financial data), page 2, and income statement items in the IFRS financial statements, page 19.

Reclassification relates to the following:

• Income of DKK 1m (Q1 2022: income of DKK 6m) due to value adjustments relating to the balance principle at Jyske Realkredit was reclassified from value adjustments to interest income.

• Depreciation and amortisation of DKK 130m (Q1 2022: DKK 124m) were reclassified from expenses to income from operating lease (net).

Please see below for definitions of the additional financial ratios stated under the Jyske Bank Group, page 2.

"Earnings per share for the period", "Earnings per share (diluted) for the period", "Pre-tax profit as a percentage of average equity" and "Net profit for the period as a percentage of average equity" are calculated as if additional tier 1 capital is recognised as a liability. In the numerator, the profit is less interest expenses for additional tier 1 capital of DKK 39m (Q1 2022: DKK 36m) and the denominator is calculated as equity exclusive of AT1 capital of DKK 3,298m (Q1 2022: DKK 3,349m).

"Expenses as a percentage of income" is calculated as Core expenses divided by Core income.

"Book value per share" and "Price/book value per share" are calculated as if additional tier 1 capital is accounted for as a liability. Book value was calculated exclusive of additional tier 1 capital of DKK 3,298m (Q1 2022: DKK 3,349m).

DKKm	Q1	Q1
	2023	2022
5 Interest income
Due from credit institutions and central banks	487	-32
Loans and advances	3,733	1,293
Administration margin	500	505
Bonds	588	112
Derivatives, total	133	116
Of which currency contracts	194	95
Of which interest-rate contracts	-61	21
Other	9	0
Total	5,450	1,994
Interest on own mortgage bonds, set off against interest on issued bonds	72	49
Total after offsetting of negative interest	5,378	1,945
Negative interest income set off against interest income	0	99
Negative interest expenses set off against interest expenses	0	270
Total before offsetting of negative interest income	5,378	2,314
Of which Interest income calculated according to the effective interest method	2,785	832

Negative interest income amounted to DKK 0m (Q1 2022: DKK 99m) and related primarily to repo transactions. In the above table, negative interest income is set off against interest income. In the income statement, negative interest income is listed as interest expenses, and negative interest expenses are listed as interest income.

6 Interest expenses

Due to credit institutions and central banks	198	3
Deposits	610	-179
Issued bonds	2,343	813
Subordinated debt	51	28
Other	63	4
Total	3,265	669
Interest on own mortgage bonds, set off against interest on issued bonds	72	49
Total after offsetting of negative interest	3,193	620
Negative interest expenses set off against interest expenses	0	270
Negative interest income set off against interest income	0	99
Total before offsetting of negative interest income	3,193	989

Negative interest expenses amounted to DKK 0m (Q1 2022: DKK 270m) related primarily to repo transactions as well as deposits and issued bonds. In the above table, negative interest expenses are set off against interest expenses. In the income statement, negative interest expenses are listed as interest income, and negative interest income is listed as interest expenses.

7	Fees and commission income
	Securities trading and custody services	346	361
	Money transfers and card payments	87	62
	Loan application fees	113	143
	Guarantee commission	28	24
	Other fees and commissions	207	214
	Fees and commissions received, total	781	804
	Fees and commissions paid, total	124	121
	Fee and commission income, net	657	683

Fee income for the period, amounting to DKK 781m less fees and commission paid for the period amounting to DKK 124m, constitutes the net fee and commission income for the period in the amount of DKK 657m. (Q1 2022: DKK 683m). These are recognised in the segmental financial statements for the bank's three business areas, cf. note 4.

	DKKm	Q1 2023	Q1 2022
8	Value adjustments
	Loans at fair value	2,656	-13,732
	Bonds	239	-1,075
	Shares, etc.	-6	20
	Currency	61	33
	Currency, interest-rate, share, commodity and other contracts as well as other derivatives	193	279
	Issued bonds	-2,810	14,380
	Other assets and liabilities	-15	104
	Total	318	9

9 Other income

Income on real property	19	10
Profit on the sale of property, plant and equipment	0	3
Income from operating lease¹	214	204
Dividends, etc.	60	33
Profit/loss on investments in associates	0	50
Other income	25	9
Total	318	309

¹) Expenses relating to operating lease affected the item Amortisation, depreciation and impairment charges in the amount of DKK 130m in the first quarter of 2023 against DKK 124m in the first quarter of 2022.

10 Employee and administrative expenses

Employee expenses
Wages and salaries, etc.	684	555
Pensions	89	77
Social security	103	82
Total	876	714
Salaries and remuneration to management bodies
Executive Board	9	9
Supervisory Board	2	2
Shareholders' Representatives	0	0
Total	11	11
Other administrative expenses
IT	441	319
Other operating expenses	24	20
Other administrative expenses	129	79
Total	594	418
Employee and administrative expenses, total	1,481	1,143

11 Effective tax rate

Effective tax rate	25.4	21.8
Non-taxable income and non-deductible expenses, etc.	0.2	-0.2
Surtax for financial services companies in Denmark	3.2	0.0
Corporation tax rate in Denmark	22.0	22.0

Note			Jyske Bank Group
	DKKm	Q1	Q1
		2023	2022
12	Loan impairment charges and provisions for guarantees
	Loan impairment charges and provisions for guarantees recognised in the income statement
	Loan impairment charges and provisions for guarantees for the period	209	-53
	Impairment charges on balances due from credit institutions in the period	1	-3
	Provisions for loan commitments and unutilised credit lines in the period	-5	74
	Recognised as a loss, not covered by loan impairment charges and provisions	21	29
	Recoveries	-12	-70
	Recognised discount for acquired loans	-118	-32
	Loan impairment charges and provisions for guarantees recognised in the income statement	96	-55
	Balance of loan impairment charges and provisions for guarantees
	Balance of loan impairment charges and provisions, beginning of period	4,741	5,443
	Loan impairment charges and provisions for the period	203	22
	Recognised as a loss, covered by loan impairment charges and provisions	-38	-216
	Other movements	14	11
	Balance of loan impairment charges and provisions, end of period	4,920	5,260
	Loan impairment charges and provisions for guarantees at amortised cost	3,136	3,054
	Loan impairment charges at fair value	1,383	1,616
	Provisions for guarantees	226	235
	Provisions for credit commitments and unutilised credit lines	175	355
	Balance of loan impairment charges and provisions, end of period	4,920	5,260

DKKm

Balance of loan impairment charges and provisions for guarantees by stage – total	Stage 1	Stage 2	Stage 3	Non performing at first recognition	Total
Balance, beginning of 2023	1,312	1,073	2,355	1	4,741
Transfer of impairment charges at beginning of period to stage 1	119	-100	-19	0	0
Transfer of impairment charges at beginning of period to stage 2	-68	88	-20	0	0
Transfer of impairment charges at beginning of period to stage 3	-2	-38	40	0	0
Impairment charges on new loans, etc.	129	89	117	0	335
Impairment charges on discontinued loans and provisions for guarantees	-84	-91	-161	0	-336
Effect from recalculation	-78	183	116	0	221
Previously recognized as impairment charges, now final loss	0	0	-41	0	-41
Balance on 31 March 2023	1,328	1,204	2,387	1	4,920

Balance of loan impairment charges and provisions for guarantees by stage				Non performing at first
– total	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2022	1,081	923	3,439	1	5,444
Transfer of impairment charges at beginning of period to stage 1	156	-150	-6	0	0
Transfer of impairment charges at beginning of period to stage 2 Transfer of impairment charges at beginning of period to stage 3	-46 -5	83 -42	-37 47	0 0	0 0
Impairment charges on new loans, etc.	191	37	104	0	332
Impairment charges on discontinued loans and provisions for guarantees	-113	-68	-234	0	-415
Effect from recalculation	7	315	-206	0	116
Previously recognized as impairment charges, now final loss	0	0	-216	0	-216
Balance on 31 March 2022	1,271	1,098	2,891	1	5,261

				Non performing at first
Balance of impairment charges by stage - loans at amortised cost	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2023	506	780	1,658	0	2,944
Transfer of impairment charges at beginning of period to stage 1	71	-63	-8	0	0
Transfer of impairment charges at beginning of period to stage 2	-48	57	-9	0	0
Transfer of impairment charges at beginning of period to stage 3	-1	-30	31	0	0
Impairment charges on new loans, etc.	59	63	81	0	203
Impairment charges on discontinued loans and provisions for guarantees	-26	-74	-120	0	-220
Effect from recalculation	-57	135	165	1	244
Previously recognized as impairment charges, now final loss	0	0	-35	0	-35
Balance on 31 March 2023	504	868	1,763	1	3,136

				Non performing at first
Balance of impairment charges by stage - loans at amortised cost	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2022	575	407	2,138	0	3,120
Transfer of impairment charges at beginning of period to stage 1	71	-68	-3	0	0
Transfer of impairment charges at beginning of period to stage 2	-36	63	-27	0	0
Transfer of impairment charges at beginning of period to stage 3	-3	-17	20	0	0
Impairment charges on new loans, etc.	70	19	56	0	145
Impairment charges on discontinued loans and provisions for guarantees	-48	-31	-67	0	-146
Effect from recalculation	-119	341	-234	0	-12
Previously recognized as impairment charges, now final loss	0	0	-53	0	-53
Balance on 31 March 2022	510	714	1,830	0	3,054

DKKm

				Non performing at first
Balance of impairment charges by stage – loans at fair value	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2023	679	219	506	0	1,404
Transfer of impairment charges at beginning of period to stage 1	27	-23	-4	0	0
Transfer of impairment charges at beginning of period to stage 2	-10	20	-10	0	0
Transfer of impairment charges at beginning of period to stage 3	-1	-2	3	0	0
Impairment charges on new loans, etc.	36	5	3	0	44
Impairment charges on discontinued loans and provisions for guarantees	-24	-7	-12	0	-43
Effect from recalculation	0	28	-44	0	-16
Previously recognized as impairment charges, now final loss	0	0	-6	0	-6
Balance on 31 March 2023	707	240	436	0	1,383

				Non performing at first
Balance of impairment charges by stage – loans at fair value	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2022	335	373	977	0	1,685
Transfer of impairment charges at beginning of period to stage 1	59	-59	0	0	0
Transfer of impairment charges at beginning of period to stage 2	-6	15	-9	0	0
Transfer of impairment charges at beginning of period to stage 3	-2	-23	25	0	0
Impairment charges on new loans, etc.	57	3	4	0	64
Impairment charges on discontinued loans and provisions for guarantees	-16	-25	-115	0	-156
Effect from recalculation	163	-5	-81	0	77
Previously recognized as impairment charges, now final loss	0	0	-54	0	-54
Balance on 31 March 2022	590	279	747	0	1,616

				Non performing at first
Balance of provisions by stage - guarantees and loan commitments, etc.	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2023	132	76	184	1	393
Transfer of impairment charges at beginning of period to stage 1	21	-14	-7	0	0
Transfer of impairment charges at beginning of period to stage 2	-10	11	-1	0	0
Transfer of impairment charges at beginning of period to stage 3	0	-5	5	0	0
Impairment charges on new loans, etc.	33	21	34	0	88
Impairment charges on discontinued loans and provisions for guarantees	-34	-10	-29	0	-73
Effect from recalculation	-21	20	-5	-1	-7
Previously recognized as impairment charges, now final loss	0	0	0	0	0
Balance on 31 March 2023	121	99	181	0	401

				Non performing at first
Balance of provisions by stage - guarantees and loan commitments, etc.	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2022	175	143	320	1	639
Transfer of impairment charges at beginning of period to stage 1	25	-24	-1	0	0
Transfer of impairment charges at beginning of period to stage 2	-4	5	-1	0	0
Transfer of impairment charges at beginning of period to stage 3	0	-1	1	0	0
Impairment charges on new loans, etc.	60	15	47	0	122
Impairment charges on discontinued loans and provisions for guarantees	-49	-12	-51	0	-112
Effect from recalculation	-37	-22	110	0	51
Previously recognized as impairment charges, now final loss	0	0	-109	0	-109
Balance on 31 March 2022	170	104	316	1	591

DKKm

Gross loans, advances and guarantees by stage Stage 1 Stage 2 Stage 3 recognition Gross loans, advances and guarantees, 1 January 2023 529,761 18,789 8,749 84 Transfer of loans, advances and guarantees to stage 1 2,987 -2,548 -439 0 Transfer of loans, advances and guarantees to stage 2 -6,850 7,192 -342 0 Transfer of loans, advances and guarantees to stage 3 -335 -503 838 0 Other movements 2,654 -1,748 -362 10 Gross loans, advances and guarantees, 31 March 2023 528,217 21,182 8,444 94 Loan impairment charges and provisions for guarantees, total 1,251 1,159 2,332 2 Net loans, advances and guarantees, 31 March 2023 526,966 20,023 6,112 92			Non performing at first
				Total
				557,383
				0
				0
				0
				554
				557,937
				4,744
				553,193

				Non performing at first
Gross loans, advances and guarantees by stage	Stage 1	Stage 2	Stage 3	recognition	Total
Gross loans, advances and guarantees, 1 January 2022	471,338	24,447	8,315	0	504,100
Additions relating to new portfolio	65,059	0	0	84	65,143
Transfer of loans, advances and guarantees to stage 1	9,925	-9,780	-145	0	0
Transfer of loans, advances and guarantees to stage 2	-8,156	8,603	-447	0	0
Transfer of loans, advances and guarantees to stage 3	-1,706	-774	2,480	0	0
Other movements	-6,699	-3,707	-1,454	0	-11,860
Gross loans, advances and guarantees, 31 December 2022	529,761	18,789	8,749	84	557,383
Loan impairment charges and provisions for guarantees, total	1,237	1,025	2,298	0	4,560
Net loans, advances and guarantees, 31 December 2022	528,524	17,764	6,451	84	552,823

DKKm

12 Loan impairment charges and provisions for guarantees, cont.

Loans, advances and guarantees by stage and internal rating - gross before impairment charges and provisions	31 March 2023	31 Dec. 2022
	Non performing at initial

Performing	PD band (%)	Stage 1	Stage 2	Stage 3	recognition	Total	Total
1	0.00 - 0.10	79,890	227	0	0	80,117	78,124
2	0.10 - 0.15	16,266	15	0	0	16,281	18,808
3	0.15 - 0.22	37,830	42	0	0	37,872	34,819
4	0.22 - 0.33	52,445	221	0	0	52,666	56,843
5	0.33 - 0.48	92,166	435	0	0	92,601	85,661
STY Ratings 1 – 5		278,597	940	0	0	279,537	274,255
6	0.48 - 0.70	82,420	306	0	0	82,726	86,329
7	0.70 - 1.02	72,104	1,229	0	0	73,333	68,349
8	1.02 - 1.48	44,236	723	0	0	44,959	50,265
9	1.48 - 2.15	21,966	1,387	0	0	23,353	24,312
10	2.15 - 3.13	12,536	1,867	0	0	14,403	13,205
11	3.13 - 4.59	6,016	2,150	0	0	8,166	7,792
STY Ratings 6 – 11		239,278	7,662	0	0	246,940	250,252
12	4.59 - 6.79	3,152	2,710	0	0	5,862	6,410
13	6.79 - 10.21	1,952	2,737	0	0	4,689	4,625
14	10.21 - 25.0	723	6,341	0	0	7,064	6,509
STY Ratings 12-14		5,827	11,788	0	0	17,615	17,544
Other		4,138	295	0	0	4,433	4,988
Non-performing loans		377	497	8,444	94	9,412	10,344
Total		528,217	21,182	8,444	94	557,937	557,383

Loan impairment charges and provisions for guarantees by stage and internal rating 31 March 2023 31 Dec.

Performing PD band (%) Stage 1 Stage 2 Stage 3 Nonperforming at initial recognition Total Total 1 0.00 - 0.10 93 2 0 0 95 91 2 0.10 - 0.15 26 0 0 0 26 22 3 0.15 - 0.22 49 0 0 0 49 50 4 0.22 - 0.33 96 5 0 0 101 98 5 0.33 - 0.48 229 8 0 0 237 220 STY Ratings 1- 5 493 15 0 0 508 481 6 0.48 - 0.70 122 22 0 0 144 143 7 0.70 - 1.02 176 16 0 0 192 170 8 1.02 - 1.48 126 12 0 0 138 130 9 1.48 - 2.15 103 53 0 0 156 120 10 2.15 - 3.13 67 59 0 0 126 139 11 3.13 - 4.59 54 55 0 0 109 89 STY Ratings 6 – 11 648 217 0 0 865 791 12 4.59 - 6.79 33 62 0 0 95 107 13 6.79 - 10.21 22 98 0 0 120 137 14 10.21 - 25.0 14 718 0 0 732 634 STY Ratings 12-14 69 878 0 0 947 878 Other 38 31 0 0 69 41 Non-performing loans 3 18 2,332 2 2,355 2,369 Total 1,251 1,159 2,332 2 4,744 4,560

2022

DKKm

12 Loan impairment charges and provisions for guarantees, cont.

by stage	Loan commitments and unutilised credit facilities		31 March 2023				31 Dec. 2022
					Purchased/ originated
Performing	PD band (%)	Stage 1	Stage 2	Stage 3	credit-impaired	Total	Total
1	0.00 - 0.10	20,874	14	0	0	20,888	21,176
2	0.10 - 0.15	5,262	0	0	0	5,262	5,632
3	0.15 - 0.22	7,141	35	0	0	7,176	6,448
4	0.22 - 0.33	9,673	14	0	0	9,687	9,629
5	0.33 - 0.48	5,236	49	0	0	5,285	5,034
STY Ratings 1 – 5		48,186	112	0	0	48,298	47,919
6	0.48 - 0.70	11,631	439	0	0	12,070	13,901
7	0.70 - 1.02	5,774	272	0	0	6,046	5,166
8	1.02 - 1.48	7,117	354	0	0	7,471	8,662
9	1.48 - 2.15	2,331	218	0	0	2,549	1,674
10	2.15 - 3.13	2,203	173	0	0	2,376	2,199
11	3.13 - 4.59	639	128	0	0	767	765
STY Ratings 6 – 11		29,695	1,584	0	0	31,279	32,367
12	4.59 - 6.79	498	218	0	0	716	886
13	6.79 - 10.21	473	170	0	0	643	922
14	10.21 - 25.0	445	616	0	0	1,061	920
STY Ratings 12-14		1,416	1,004	0	0	2,420	2,728
Other		789	46	0	0	835	3,892
Non-performing loans		1	0	347	2	350	518
Total		80,088	2,746	347	2	83,183	87,424

Provisions for loan commitments and unutilised credit lines by stage 31 March 2023 31 Dec.

Performing PD band (%) Stage 1 Stage 2 Stage 3 Purchased/ originated credit-impaired Total Total 1 0.00 - 0.10 1 0 0 0 1 2 2 0.10 - 0.15 4 0 0 0 4 4 3 0.15 - 0.22 7 0 0 0 7 6 4 0.22 - 0.33 6 0 0 0 6 7 5 0.33 - 0.48 7 0 0 0 7 8 STY Ratings 1 – 5 25 0 0 0 25 27 6 0.48 - 0.70 13 1 0 0 14 17 7 0.70 - 1.02 8 1 0 0 9 7 8 1.02 - 1.48 9 3 0 0 12 9 9 1.48 - 2.15 6 1 0 0 7 5 10 2.15 - 3.13 5 3 0 0 8 7 11 3.13 - 4.59 3 1 0 0 4 4 STY Ratings 6 – 11 44 10 0 0 54 49 12 4.59 - 6.79 1 9 0 0 10 4 13 6.79 - 10.21 3 4 0 0 7 16 14 10.21 - 25.0 0 22 0 0 22 15 STY Ratings 12-14 4 35 0 0 39 34 Other 5 2 0 0 7 8 Non-performing loans 0 0 50 0 50 62 Total 78 47 50 0 175 181

	DKKm	31 March 2023	31 Dec. 2022	31 March 2022
13	Loans at fair value
	Mortgage loans, nominal value	367,282	365,580	341,188
	Adjustment for interest-rate risk, etc.	-28,109	-30,839	-10,508
	Adjustment for credit risk	-1,321	-1,371	-1,520
	Mortgage loans at fair value, total	337,852	333,370	329,160
	Arrears and outlays, total	63	54	46
	Other loans and advances	2,512	4,208	2,330
	Loans and advances at fair value, total	340,427	337,632	331,536
14	Loans and advances at fair value broken down by property category Owner-occupied homes Vacation homes Subsidised housing (rental housing) Cooperative housing Private rental properties (rental housing) Industrial properties Office and retail properties Agricultural properties Properties for social, cultural and educational purposes Other properties Total	163,644 9,760 46,104 11,336 63,818 3,761 34,418 158 7,390 38 340,427	164,014 9,713 44,819 11,181 63,110 3,314 33,937 158 7,344 42 337,632	154,282 8,139 50,210 13,043 61,787 2,659 33,066 139 8,150 61 331,536
15	Loans and advances at amortised cost and guarantees broken down by sector
	Public authorities	13,055	13,402	11,663
	Agriculture, hunting, forestry, fishing	13,424	12,272	10,535
	Manufacturing, mining, etc.	13,589	13,928	11,071
	Energy supply	8,563	7,529	10,538
	Building and construction	6,009	6,184	4,211
	Commerce	12,713	11,151	10,337
	Transport, hotels and restaurants	6,155	5,915	5,247
	Information and communication	2,880	2,829	2,576
	Financing and insurance	53,282	59,106	39,929
	Real property	24,973	24,854	14,664
	Other sectors	16,777	14,953	9,343
	Corporates, total	158,365	158,721	118,451
	Personal clients, total	41,347	43,068	33,323
	Total	212,767	215,191	163,437

DKKm	31 March 2023	31 Dec. 2022	31 March 2022
16 Other assets
Positive fair value of derivatives	21,566	25,827	23,100
Assets in pooled deposits	7,297	7,125	4,058
Interest and commission receivable	866	537	252
Investments in associates and joint ventures	191	187	253
Deferred income	157	175	146
Investment properties	97	97	28
Other assets	1,890	1,284	1,714
Total	32,064	35,232	29,551
Netting
Positive fair value of derivatives, gross	58,629	64,650	39,283
Netting of positive and negative fair value	37,063	38,823	16,184
Total	21,566	25,827	23,099

Netting of fair value can be attributed to clearing of derivatives through a central clearing house (CCP clearing).

17	Deposits Demand deposits Term deposits Time deposits Special deposits Pooled deposits Total	151,387 2,464 61,058 6,102 7,337 228,348	154,923 748 39,240 6,316 7,178 208,405	109,877 995 22,405 4,532 4,096 141,905
18	Issued bonds at fair value Issued bonds at fair value, nominal value Adjustment to fair value Own mortgage bonds offset, fair value Total	388,839 -30,424 -27,231 331,184	380,506 -33,052 -23,298 324,156	372,872 -10,845 -34,949 327,078
19	Other liabilities Set-off entry of negative bond holdings in connection with repos/reverse repos Negative fair value of derivatives Interest and commission payable Deferred income Lease commitment Other liabilities Total	7,494 23,156 2,972 147 293 6,660 40,722	5,799 27,908 2,043 156 313 9,366 45,585	5,096 24,544 1,636 152 370 7,097 38,895
	Netting Negative fair value of derivatives, gross Netting of positive and negative fair value Total	60,219 37,063 23,156	66,731 38,823 27,908	40,728 16,184 24,544

Netting of fair value can be attributed to clearing of derivatives through a central clearing house (CCP clearing).

	DKKm	31 March 2023	31 Dec. 2022	31 March 2022
20	Provisions
	Provisions for pensions and similar liabilities	508	503	598
	Provisions for guarantees	226	212	235
	Provisions for losses on loan commitments and unutilised credit lines	175	181	355
	Provisions for deferred tax	0	0	23
	Other provisions	105	96	97
	Total	1,014	992	1,308
21	Subordinated debt
	Supplementary capital:
	Var. % bond loan NOK 1,000m 24.03.2031	660	707	720
	Var. % bond loan SEK 1,000m 24.03.2031	654	669	766
	1.25% bond loan EUR 200m 28.01.2031	1,490	1,487	1,488
	2.25 % bond loan EUR 300m 05.04.2029	2,235	2,231	2,231
	6.73% bond loan EUR 6m 2023-2026	45	45	56
	Var. % bond loan EUR 10m 13.02.2023	0	74	74
	5.65% bond loan EUR 10m 27.03.2023	0	74	74
	5.67% bond loan EUR 10m 31.07.2023	74	74	74
	Var. % bond loan SEK 600m 31.8.2032	396	402	0
	Var. % bond loan NOK 400m 31.8.2032	261	283	0
	Var. % bond loan DKK 400m 31.8.2032	400	400	0
	Subordinated debt, nominal	6,215	6,446	5,483
	Hedging of interest-rate risk, fair value	-71	-81	-1
	Total	6,144	6,365	5,482
	Subordinated debt included in the capital base	6,078	6,178	5,204
22	Contingent liabilities
	Guarantees, etc.	11,157	11,141	15,031
	Other contingent liabilities, etc.	83,198	87,457	86,676
	Total	94,355	98,598	101,707

Guarantees are primarily payment guarantees, where the risk equals that involved in credit facilities.

Other contingent liabilities are primarily loan commitments and unutilised credit facilities.

Jyske Bank is also a party to a number of legal disputes arising from its business activities. Jyske Bank estimates the risk involved in each individual case and makes any necessary provisions which are recognised under contingent liabilities. Jyske Bank does not expect such liabilities to have material influence on Jyske Bank's financial position.

In 2021, the FSA performed a money-laundering inspection at Jyske Bank and in 2022, it published its report on the inspection relating primarily to a small number of home loans in Southern Europe.

Subsequently, the FSA informed Jyske Bank that it intended to file a police report on the Bank for the violation of provisions of the Danish anti-money laundering act on client due diligence procedures and duty of inspection. Jyske Banks estimates that there is a limited risk that the Bank has been exploited for money laundering, and Jyske Bank assesses to have a good understanding of the clients and the origin of the funds. Jyske Bank will cooperate with the police on all issues of the matter. Jyske Bank does not expect that the matter will influence the Group's financial position.

Because of its mandatory participation in the deposit guarantee scheme, the sector has paid an annual contribution of 2.5‰ of the covered net deposits until the assets of Pengeinstitutafdelingen (the financial institution fund) exceed 1% of the total net deposits covered, which level has been reached. According to Bank Package 3 and Bank Package 4, Pengeinstitutafdelingen bears the immediate losses attributable to covered net deposits and relating to the winding up of financial institutions in distress. Any losses in connection with the final winding up are covered by the Guarantee Fund's Afviklings- og Restruktureringsafdeling (settlement and restructuring fund), where Jyske Bank currently guarantees 7.64% of any losses.

The statutory participation in the resolution financing arrangements (Resolution Fund) as of June 2015 entailed that credit institutions pay an annual contribution over a 10-year period to a Danish national fund with a target size totalling 1% of the covered deposits. Credit institutions are to contribute according to their relative sizes and risk in Denmark, and the first contributions to the Resolution Fund were paid at the end of 2015. The Jyske Bank Group expects having to pay a total of about DKK 600m over the 10-year period 2015 -2025.

Due to Jyske Bank's membership of the Foreningen Bankdata, the bank is - in the event of its withdrawal - under the obligation to pay an exit charge to Bankdata in the amount of about DKK 3.2bn.

23 Shareholders

On 31 March 2023, BRFholding a/s, Copenhagen, Denmark held 28.10% of the share capital. BRFholding a/s is a 100% owned subsidiary of BRFfonden. According to Jyske Bank's Articles of Association, BRFholding a/s has 4,000 votes.

24 Related parties

Jyske Bank is the banker of a number of related parties. Transactions between related parties are characterised as ordinary financial transactions and services of an operational nature. Transactions with related parties were executed on an arm's length basis or at cost.

Over the period, there were no unusual transactions with related parties. Please see Jyske Bank's Annual Report 2022 for a detailed description of transactions with related parties.

25 Bonds provided as security

The Jyske Bank Group has deposited bonds with central banks and clearing houses, etc. in connection with clearing and settlement of securities and currency transactions as well as triparty repo transactions totalling a market value of DKK 26,477m (end of 2022: DKK 15,686m).

In addition, in connection with CSA agreements, the Jyske Bank Group has provided cash collateral of DKK 5,299m (end of 2022: DKK 6,725m) and bonds worth DKK 5,569m (end of 2022: DKK 6,566m).

The conclusion of repo transactions, i.e. sale of securities involving agreements to repurchase them at a later point in time, implies that bonds are provided as collateral for the amount that is borrowed. Repo transactions amounted to DKK 28,246m (end of 2022: DKK 18,042m).

26 Notes on fair value

Methods for measuring fair value

Fair value is the price that, at the time of measurement, would be obtained by selling an asset or paid for by transferring a liability in an ordinary transaction between independent market participants.The fair value may equal the book value where book value is recognised on the basis of underlying assets and liabilities measured at fair value.

For all assets listed on active markets, fair values are measured at official prices (category: "Quoted prices").Where no price is quoted, a different official price is used which is taken to reflect most closely the fair value (category: "Observable prices"). Financial assets and liabilities of which quoted prices or other official prices are not available or are not taken to reflect the fair value are measured at fair value according to other evaluation techniques and other observable market information. In those cases where observable prices based on market information are not available or are not taken to be useful for measuring fair value, the fair value is measured by recognised techniques, including discounted future cash flows, and own expertise (category: "non-observable prices").The basis of the measurement may be recent transactions involving comparable assets or liabilities, interest rates, exchange rates, volatility, credit spreads, etc. Generally, the Group's unlisted shares are placed in this category.

Generally, quoted prices and observable input are obtained in the form of interest rates and equity and bond prices, exchange rates, volatilities, etc. from recognised stock exchanges and providers.

Specific details on methods for measuring fair value

Loans at fair value are predominantly mortgage loans and generally measured at prices of the underlying bonds quoted on a recognised stock exchange. If such a market price is not available for the preceding 7 days, a calculated price based on the official market rate will be applied for determining the value. If derivatives are part of the funding of the mortgage loans, the value of these will be integrated in the valuation of the loans. The fair value is reduced by the calculated impairment charge which for loans at fair value is measured according to the same principles that apply to impairments of loans at amortised cost.

Bonds at fair value, shares, assets linked to pooled deposits, and derivatives are measured at fair value in the accounts to the effect that the carrying amounts equal fair values.

Generally, bonds are measured at prices quoted on a recognised stock exchange. Alternatively, prices are applied that are calculated on the basis of Jyske Bank's own measurement models based on a yield curve with a credit spread. Essentially, the calculated prices are based on observable input.

26 Notes on fair value, cont.

Generally, equities, etc. are measured at prices quoted on a recognised stock exchange. Alternatively, prices are applied that are calculated on the basis of Jyske Bank's own valuation models based on observable input, shareholders' agreements, executed transactions, etc. Unlisted equities are valued on the basis of discounted cash flow models (DCF).

Derivatives are valued on the basis of a market-consistent yield curve set-up, credit models and option models such as Black-Scholes. The models applied are monitored on an ongoing basis to ensure robustness and a high quality of the output of the models. To ensure that the methods of valuation are always consistent with current market practice, the models are validated by units independent of the unit that develop the models.

To the greatest extent possible, the methods of valuation are based on observable market quotes, such as market rates, exchange rates, volatilities, market prices, etc. Often methods of interpolation will also be incorporated to value the specific contracts.

The fair value of derivatives is also adjusted for credit risk (CVA and DVA) and funding costs (FVA). Client margins are amortised over the remaining time to maturity.

Assets related to pooled deposits are measured according to the above principles.

Information about differences between recognised value and measurement of fair value

Loans and advances exclusive of mortgage loans and certain other home loans are recognised at amortised cost. The difference to fair value is assumed to be fee and commission received, costs defrayed in connection with lending, plus interest-rate-dependent value adjustment calculated by comparing current market rates with market rates at the time when the loans and advances were established. Changes in credit quality are assumed to be included under impairment charges both for carrying amounts and fair values.

Subordinated debt and issued bonds exclusive of issues of mortgage bonds are recognised at amortised cost supplemented with the fair value of the hedged interest-rate risk. The difference to fair value is calculated on the basis of own-issue prices obtained externally.

Deposits are recognised at amortised cost. The difference to fair value is assumed to be the interest-rate dependent value adjustment calculated by comparing current market rates with market rates at the time when the deposits were made.

Balances with credit institutions are recognised at amortised cost. The difference to fair value is assumed to be the interest-rate dependent value adjustment calculated by comparing current market rates with market rates at the time when the transactions were established. Changes in the credit quality of balances with credit institutions are assumed to be included under impairment charges for loans, advances, and receivables.Changes in the fair values of balances due to credit institutions because of changes in Jyske Bank's own credit rating are not taken into account.

The calculated fair values of financial assets and liabilities recognised at amortised cost are materially non-observable prices (level 3) in the fair value hierarchy.

Information about changes in credit risk on derivatives with positive fair value.

In order to allow for the credit risk on derivatives for clients without credit impairment, the fair value is adjusted (CVA). Adjustments will also be made for clients with credit impairment, but on an individual basis.

For any given counterparty's total portfolio of derivatives, CVA is a function of the expected positive exposure (EPE), loss given default (LGD) as well as the probability of default (PD).

When determining the EPE, a model is used to establish the expected positive exposure to the counterparty's portfolio over the maturity of the derivatives. The PDs that Jyske Bank has applied in the model so far were estimated on the basis of IRB (internal rating based) PDs. This method of estimating PDs was in 2021 replaced with a new method, which to a higher extent mirrors the likelihood of default, which can be seen in the market, as the likelihoods of default are inferred via market-observable CDS spreads. LGD is set at compliant with quotations of CDS spreads in connection with the calculation of likelihoods of default whereas the exposure profiles have been adjusted for the effect from any security and CSA agreements.

In addition to CVA, also an adjustment is made of the fair value of derivatives that have an expected future negative fair value. This takes place to allow for changes in the counterparties' credit risk against the Jyske Bank Group (debt valuation adjustment - DVA).The DVA takes place according to the same principles that apply to the CVA, yet PD for Jyske Bank is determined on the basis of Jyske Bank's external rating by Standard & Poor's. At the end of Q1 2023, CVA and DVA amounted, on an accumulated basis, to net DKK 4m, which accumulated amount was recognised as an expense under value adjustments, against an accumulated amount of DKK 9m at the end of 2022.

27 Fair value of financial assets and liabilities

The table shows the fair value of financial assets and liabilities and the carrying amounts. The re-statement at fair value of financial assets and liabilities shows a total non-recognised unrealised loss of DKK 878m at the end of Q1 2023 against a total unrecognised loss of DKK 753m at the end of 2022.

DKKm	31 March 2023		31 Dec. 2022
	Recognised		Recognised
	value	Fair value	value	Fair value
FINANCIAL ASSETS
Cash balance and demand deposits with central banks	95,308	95,308	58,519	58,519
Due from credit institutions and central banks	7,643	7,664	8,347	8,343
Loans at fair value	340,427	340,427	337,632	337,632
Loans and advances at amortised cost	201,609	200,743	204,050	203,008
Bonds at fair value	59,045	59,045	55,505	55,505
Bonds at amortised cost	38,529	36,929	39,660	37,874
Shares, etc.	2,111	2,111	2,260	2,260
Assets in pooled deposits	7,297	7,297	7,125	7,125
Derivatives	21,566	21,560	25,827	25,827
Total	773,535	771,084	738,925	736,093
FINANCIAL LIABILITIES
Due to credit institutions and central banks	39,902	39,758	28,430	28,282
Deposits	221,011	220,984	201,227	201,198
Pooled deposits	7,337	7,337	7,178	7,178
Issued bonds at fair value	331,184	331,184	324,156	324,156
Issued bonds at amortised cost	96,773	95,718	95,435	94,007
Subordinated debt	6,144	5,802	6,365	5,891
Set-off entry of negative bond holdings	7,494	7,494	5,799	5,799
Derivatives	23,156	23,151	27,908	27,908
Total	733,001	731,428	696,498	694,419

DKKm

28 The fair value hierarchy

			Non
31 March 2023	Quoted	Observable	observable	Fair value,	Recognised
Financial assets	prices	input	input	total	value
Loans at fair value	0	340,427	0	340,427	340,427
Bonds at fair value	53,189	5,856	0	59,045	59,045
Shares, etc.	699	473	939	2,111	2,111
Assets in pooled deposits	151	7,146	0	7,297	7,297
Derivatives	547	21,019	0	21,566	21,566
Total	54,586	374,921	939	430,446	430,446
Financial liabilities
Pooled deposits	0	7,337	0	7,337	7,337
Issued bonds at fair value	287,470	43,714	0	331,184	331,184
Set-off entry of negative bond holdings	7,310	184	0	7,494	7,494
Derivatives	897	22,259	0	23,156	23,156
Total	295,677	73,494	0	369,171	369,171
31 December 2022
Financial assets
Loans at fair value	0	337,632	0	337,632	337,632
Bonds at fair value	43,641	11,864	0	55,505	55,505
Shares, etc.	626	466	1,168	2,260	2,260
Assets in pooled deposits	124	7,001	0	7,125	7,125
Derivatives	685	25,142	0	25,827	25,827
Total	45,076	382,105	1,168	428,349	428,349
Financial liabilities
Pooled deposits	0	7,178	0	7,178	7,178
Issued bonds at fair value	246,294	77,862	0	324,156	324,156
Set-off entry of negative bond holdings	4,973	826	0	5,799	5,799
Derivatives	622	27,286	0	27,908	27,908
Total	251,889	113,152	0	365,041	365,041

The above table shows the fair value hierarchy for financial assets and liabilities recognised at fair value.

It is the practice of the Group that if prices of Danish bonds and shares are not updated for two days, transfers will take place between the categories quoted prices and observable input. This did not result in material transfers in 2023 and 2022.

NON-OBSERVABLE INPUT	Q1 2023	2022
Fair value, beginning of period	1,168	1,281
Transfers for the period	0	0
Capital gain and loss for the period reflected in the income statement under value adjustments	-40	66
Sales or redemptions	200	258
Purchases	11	79
Fair value, end of period	939	1,168

Non-observable input

Non-observable input at the end of the first quarter of 2023 referred to unlisted shares recognised at DKK 939m against unlisted shares recognised at DKK 1,168m at the end of the first quarter of 2022. These are primarily sector shares. The measurements, which are associated with some uncertainty, are made on the basis of the shares' book value, market trades, shareholders' agreements as well as own assumptions and extrapolations, etc. In the cases where Jyske Bank calculates the fair value on the basis of the company's expected future earnings, a required rate of return of 15% p.a. before tax is applied. If it is assumed that the actual market price will deviate by +/-10% relative to the calculated fair value, the effect on the income statement would amount to DKK 94m on 31 March 2023 (0.24% of shareholders' equity at the end of the first quarter of 2023). For Q1 2022, the effect on the income statement is estimated at DKK 117m (0.44% of shareholders' funds at the end of Q1 2022). Capital gain and loss for the year on unlisted shares recognised in the income statement is attributable to assets held at the end of the first quarter of 2023. Jyske Bank finds it of little probability that the application of alternative prices in the measurement of fair value would result in a material deviation from the recognised fair value.

28 Fair value hierarchy, cont.

Non-financial assets recognised at fair value Investment properties were recognised at a fair value of DKK 97m (end of 2021: DKK 28m). Fair value belongs to the category of nonobservable prices calculated on the basis of a required rate of return of 3%-10% (end of 2021: 7%).

Assets held temporarily comprise repossessed properties, equity investments and cars, etc. and similar assets held for sale. Assets held temporarily are recognised at the lower of cost and fair value less costs of sale. Assets held temporarily were recognised at DKK 65m (end of 2022: DKK 65m). Fair value belongs to the category of non-observable prices.

Owner-occupied properties, exclusive of leased properties, are recognised at the restated value corresponding to the fair value on the date of the revaluation less subsequent amortization, depreciation and impairment. The valuation of selected land and buildings is carried out with the assistance of external experts. Based on the returns method, the measurement takes place in accordance with generally accepted standards and with a weighted average required rate of return of 6.43% at the end of 2022. Owner-occupied properties, exclusive of leased properties, were recognised at DKK 1,588m (2022: DKK 1,591m). See note 30 for further details. The revalued amount belongs to the category of 'non-observable prices'. Leased properties were recognised at DKK 273m (end of 2022: DK292m).

29 Group overview

31 March 2023	Currency	Share capital 1,000 units	Ownership share (%)	Voting share (%)	Assets DKKm, end of 2022	Liabilities DKKm, end of 2022	Equity DKKm, end of 2022	Earnings (DKKm) 2022	Profit or loss, DKKm 2022
Jyske Bank A/S1	DKK	642,721			421,675	381,051	40,624	7,606	3,752
Subsidiaries
Jyske Realkredit, Kgs. Lyngby 2	DKK	500,000	100	100	359,621	337,462	22,159	6,742	1,361
Jyske Bank Nominees Ltd., London 4	GBP	0	100	100	0	0	0	0	0
Inmobiliaria Saroesma S.L., Spain 5	EUR	885	100	100	26	26	0	1	0
Jyske Finans A/S, Silkeborg 3	DKK	100,000	100	100	27,165	25,418	1,747	1,664	655
Ejendomsselskabet af 01.11.2017 A/S, Silkeborg 5	DKK	500	100	100	47	44	3	4	2
Gl. Skovridergaard A/S, Silkeborg 5	DKK	500	100	100	31	28	3	17	0
Ejendomsselskabet af 01.10.2015 ApS, Silkeborg 5	DKK	500	100	100	96	94	1	1	1
Jyske Invest Fund Management A/S, Silkeborg 4	DKK	76,000	100	100	515	78	437	181	36
Jyske Vindmølle A/S, Hobro 5	DKK	400	100	100	46	25	21	4	0
Ejendomsselskabet af 1. maj 2009 A/S 5	DKK	54,000	100	100	93	2	91	1	0
Lokal Bolig A/S 6 Handelsinvest	DKK	715	54	54	18	1	17	1	0
Investeringsforvaltning A/S 4	DKK	5,000	100	100	18	1	16	1	0

Activity:

1 Banking

2 Mortgage-credit activities

3Leasing, financing and factoring

4Investment and financing

5 Properties, wind turbine and course activities

6 Estate agency chain

All banks and mortgage credit institutions supervised by national financial supervisory authorities are subject to statutory capital requirements. Such capital requirements may limit intra-group facilities and dividend payments.

Jyske Bank A/S

Income Statement and Statement of Comprehensive Income	46
Balance sheet at 31 March	47
Statement of Changes in Equity	48
Capital Statement	49
Notes	50

Note			Jyske Bank
	DKKm	Q1 2023	Q1 2022
	Income statement
3	Interest income	2,870	843
4	Interest expenses	1,566	222
	Net interest income	1,304	621
	Dividends, etc.	60	33
5	Fees and commission income	825	818
	Fees and commission expenses	51	43
	Net interest and fee income	2,138	1,429
6	Value adjustments	231	11
	Other operating income	125	113
	Employee and administrative expenses	1,371	1,062
	Amortisation, depreciation and impairment charges	42	25
	Other operating expenses	30	10
7	Loan impairment charges	120	-20
	Profit on investments in associates and group enterprises	595	488
	Pre-tax profit	1,526	964
	Tax	237	113
	Net profit for the period	1,289	851
	Distributed to:
	Total appropriation to shareholders' equity	1,250	815
	Holders of additional tier 1 capital (AT1)	39	36
	Total	1,289	851
	Statement of Comprehensive Income
	Net profit for the period	1,289	851
	Other comprehensive income	0	0
	Comprehensive income for the period	1,289	851

Note				Jyske Bank
	DKKm	31 March	31 Dec.	31 March
		2023	2022	2022
	BALANCE SHEET
	ASSETS
	Cash balance and demand deposits with central banks	91,620	47,184	36,683
	Due from credit institutions and central banks	7,290	8,599	9,684
	Loans at fair value	2,224	3,919	2,022
8	Loans and advances at amortised cost	202,126	204,645	148,935
	Bonds at fair value	50,218	47,811	46,171
	Bonds at amortised cost	39,279	40,411	30,575
	Shares, etc. Investments in associates	1,948 174	2,080 174	2,196 248
	Equity investments in group enterprises	25,040	24,492	22,751
	Assets in pooled deposits	7,297	7,125	4,058
	Intangible assets	3,314	3,326	0
	Owner-occupied properties	1,567	1,569	1,572
	Owner-occupied properties, leasing	273	292	355
	Other property, plant and equipment	95	92	82
	Current tax assets	1,874	1,030	1,497
	Deferred tax assets	20	20	21
	Assets held temporarily	10	10	5
	Other assets	24,488	28,774	24,149
	Deferred income Total assets	111 458,968	122 421,675	89 331,093
	EQUITY AND LIABILITIES
	Debt and payables
	Due to credit institutions and central banks	47,781	28,665	40,329
9	Deposits	220,999	201,339	137,626
	Pooled deposits	7,337	7,178	4,096
	Issued bonds at amortised cost Other liabilities	96,773 37,053	95,435 41,081	67,803 36,131
	Deferred income	22	22	23
	Total debt	409,965	373,720	286,008
	Provisions
	Provisions for pensions and similar liabilities	481	477	565
	Provisions for guarantees	237	227	255
	Provisions for credit commitments and unutilised credit lines	163	171	342
	Other provisions	101	91	95
	Total provisions	982	966	1,257
	Subordinated debt	6,144	6,365	5,482
	Equity
	Share capital	643	643	690
	Revaluation reserve	168	168	171
	Reserve according to the equity method	10,353	9,805	8,194
	Retained profit	27,415	26,707	25,942
	Jyske Bank A/S shareholders	38,579	37,323	34,997
	Holders of additional tier 1 capital (AT1)	3,298	3,301	3,349
	Total equity	41,877	40,624	38,346
	Total equity and liabilities	458,968	421,675	331,093
	OFF-BALANCE SHEET ITEMS
	Guarantees, etc.	15,512	16,368	21,738
	Other contingent liabilities	68,571	72,688	67,117
	Total guarantees and other contingent liabilities	84,083	89,056	88,855

DKKm

Statement of Changes in Equity

			Reserve
			according
			to the		Shareholders
	Share capital	Revaluation reserve	equity method	Retained profit	of Jyske Bank A/S	AT1 capital*	Total equity
Equity on 1 January 2023	643	168	9,805	26,707	37,323	3,301	40,624
Net profit for the period	0	0	548	702	1,250	39	1,289
Other comprehensive income	0	0	0	0	0	0	0
Comprehensive income for the period	0	0	548	702	1,250	39	1,289
Interest paid on additional tier 1 capital	0	0	0	0	0	-39	-39
Currency translation adjustment	0	0	0	3	3	-3	0
Acquisition of own shares	0	0	0	-737	-737	0	-737
Sale of own shares	0	0	0	740	740	0	740
Transactions with owners	0	0	0	6	6	-42	-36
Equity on 31 March 2023	643	168	10,353	27,415	38,579	3,298	41,877
Equity at 1 January 2022	726	171	8,170	25,844	34,911	3,355	38,266
Net profit for the period	0	0	24	791	815	36	851
Other comprehensive income	0	0	0	0	0	0	0
Comprehensive income for the period	0	0	24	791	815	36	851
Interest paid on additional tier 1 capital	0	0	0	0	0	-36	-36
Currency translation adjustment	0	0	0	6	6	-6	0
Reduction of share capital	-36	0	0	36	0	0	0
Acquisition of own shares	0	0	0	-1,291	-1,291	0	-1,291
Sale of own shares	0	0	0	556	556	0	556
Transactions with owners	-36	0	0	-693	-729	-42	-771
Equity on 31 March 2022	690	171	8,194	25,942	34,997	3,349	38,346

*Additional tier 1 capital (AT1) has no maturity. Payment of interest and repayment of principal are voluntary. Therefore, AT1 capital is recognised as equity. In September 2017, Jyske Bank issued AT1 amounting to EUR 150m with the possibility of early redemption in September 2027 at the earliest. The issue has a coupon of 4.75% until September 2027. In April 2019, Jyske Bank issued AT1 amounting to SEK 1bn with the possibility of early redemption in April 2024 at the earliest. The interest rate applicable to the issue until April 2024 is STIBOR+5%. In May 2021, Jyske Bank issued AT1 amounting to EUR 200m with the possibility of early redemption from 4 December 2028 at the earliest. The interest rate applicable to the issue until June 2029 is 3,625%. It applies to all AT1 issues that if the common equity tier 1 capital ratio of Jyske Bank A/S or the Jyske Bank Group falls below 7%, the loans will be written down.

Note			Jyske Bank
DKKm	31 March 2023	31 Dec. 2022	31 March 2022
Capital Statement
Shareholders' equity	38,579	37,323	34,997
Share buy-back programme, non-utilised limit	0	0	-543
Intangible assets	-3,314	-3,326	0
Deferred tax assets	0	0	-21
Prudent valuation	-221	-242	-224
Insufficient coverage of non-performing loans and guarantees	-78	-48	-39
Other deductions	-182	-93	-151
Common equity tier 1 capital	34,784	33,614	34,019
Additional tier 1 capital (AT1) after reduction	3,257	3,272	3,323
Core capital	38,041	36,886	37,342
Subordinated loan capital after reduction	6,078	6,178	5,204
Capital base	44,119	43,064	42,546
Weighted risk exposure involving credit risk, etc.	142,871	150,264	122,750
Weighted risk exposure involving market risk	12,062	8,903	10,061
Weighted risk exposure involving operational risk	13,486	12,865	10,705
Total weighted risk exposure	168,419	172,032	143,516
Capital requirement, Pillar I	13,473	13,763	11,481
Capital ratio (%)	26.2	25.0	29.6
Tier 1 capital ratio (%)	22.6	21.4	26.0
Common equity tier 1 capital ratio (%)	20.7	19.5	23.7

The capital statement was calculated according to Regulation (EU) No. 575/2013 of 26 June 2013 of the European Parliament and of the Council (CRR) with subsequent amendments.

For the determination of the individual solvency requirement, please see the report Risk and Capital Management 2022 and jyskebank.com/investorrelations/capitalstructure, which shows Jyske Bank's quarterly determination of the individual solvency requirement.

Table of contents, notes section

No.	Note	Page
1	Accounting Policies	51
2	Financial ratios	51
3	Interest income	52
4	Interest expenses	52
5	Fees and commission income	52
6	Value adjustments	52
7	Loan impairment charges and provisions for guarantees	53
8	Loans, advances and guarantees as well as loan impairment charges and	59
	provisions for guarantees by sector
9	Deposits	59

Note Jyske Bank

1 Accounting Policies

The interim financial statements of the parent company Jyske Bank A/S for the period 1 January to 31 March 2023 were prepared in accordance with the Danish Financial Business Act, including the Danish Executive Order on Financial Reports for Credit Institutions, Stockbrokers, etc.

The rules applying to recognition and measurement at Jyske Bank A/S are consistent with IFRS.

With respect to classification and extent, the preparation for Jyske Bank A/S differs from the preparation for the Group. Please thee the full description of accounting policies in note 68 of the annual report 2022. The accounting policies are identical to those applied to and described in the annual report 2022.

Figures in the interim financial statements are in Danish kroner, rounded to the nearest million in Danish kroner.

Financial situation and risk information

Jyske Bank A/S is affected by the financial situation and the risk factors that are described in the management's review for the Group and reference is made to this.

		Q1 2023	Q1 2022
2	Financial ratios
	Pre-tax profit p.a. as a percentage of average equity*	15.7	10.6
	Profit for the period as a pct. of average equity*	3.3	2.3
	Income/cost ratio (%)	2.0	1.9
	Capital ratio (%)	26.2	29.6
	Common equity tier 1 capital ratio (CET 1) (%)	20.7	23.7
	Individual solvency requirement (%)	12.0	11.7
	Capital base (DKKm)	44,119	42,546
	Total risk exposure (DKKm)	168,419	143,516
	Interest-rate risk (%)	2.4	2.3
	Currency risk (%)	0.0	0.0
	Accumulated impairment ratio (%)	1.3	1.7
	Impairment ratio for the period (%)	0.1	0.0
	No. of full-time employees at end-period	3,662	3,014
	Average number of full-time employees in the period	3,652	3,017

The financial ratios are based on the definitions and guidelines laid down by the Danish Financial Supervisory Authority, cf. note 69 to the consolidated financial statements for 2022.

* Ratios are calculated as if additional tier 1 capital (AT1) is recognised as a liability.

	Jyske Bank
Q1 2023	Q1 2022
	-33
	361
	73
	88
	95
	-7
	489
	93
	261
2,870	843
	-2
272	-41
	468 1,745 453 204 194 10 2,870 0 0 12

Negative interest income amounted to DKK 0m (Q1 2022:DKK 93m) and related primarily to repo transactions. In the above table, negative interest income is set off against interest income. In the income statement, negative interest income is listed as interest expenses, and negative interest expenses are listed as interest income.

4 Interest expenses

Due to credit institutions and central banks	219	-13
Deposits	609	-179
Issued bonds	680	29
Subordinated debt	51	28
Other	7	3
Total	1,566	-132
Negative interest expenses set off against interest expenses	0	261
Negative interest income set off against interest income	0	93
Total before offsetting of negative interest income	1,566	222
Of which interest expenses on reverse repos carried under:

Due to credit institutions and central banks 71 -25 Deposits 31 -5

Negative interest expenses amounted to DKK 0m (Q1 2022: DKK 261m) related primarily to repo transactions as well as deposits and issued bonds. In the above table, negative interest expenses are set off against interest expenses. In the income statement, negative interest expenses are listed as interest income, and negative interest income is listed as interest expenses.

5 Fees and commission income Securities trading and custody services 269 260 Money transfers and card payments 87 62 Loan application fees 32 38

Total	825	818
Other fees and commissions	409	434
Guarantee commission	28	24

6 Value adjustments

Loans at fair value	48	-22
Bonds	111	-610
Shares, etc.	-5	19
Currency	65	31
Currency, interest-rate, share, commodity and other contracts as well as other derivatives	44	446
Assets in pooled deposits	145	155
Pooled deposits	-145	-155
Other assets	0	26
Issued bonds	-18	44
Other liabilities	-14	77
Total	231	11

Note			Jyske Bank
	DKKm	Q1 2023	Q1 2022
7	Loan impairment charges and provisions for guarantees
	Loan impairment charges and provisions for guarantees recognised in the income statement
	Loan impairment charges and provisions for guarantees for the period	200	-43
	Impairment charges on balances due from credit institutions in the period	1	-3
	Provisions for loan commitments and unutilised credit lines in the period	-8	71
	Recognised as a loss, not covered by loan impairment charges and provisions	20	17
	Recoveries	-11	-62
	Recognised discount for acquired loans	-82	0
	Loan impairment charges and provisions for guarantees recognised in the income statement	120	-20
	Balance of loan impairment charges and provisions for guarantees
	Balance of loan impairment charges and provisions, beginning of period	2,984	3,471
	Loan impairment charges and provisions for the period	192	28
	Recognised as a loss, covered by loan impairment charges and provisions	-32	-161
	Other movements	15	10
	Balance of loan impairment charges and provisions, end of period	3,159	3,348
	Loan impairment charges and provisions for guarantees at amortised cost	2,757	2,749
	Loan impairment charges at fair value	2	2
	Provisions for guarantees	237	255
	Provisions for credit commitments and unutilised credit lines	163	342
	Balance of loan impairment charges and provisions, end of period	3,159	3,348

DKKm

Balance of loan impairment charges and provisions for guarantees by				Non performing at first
stage – total	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2023	518	760	1,705	1	2,984
Transfer of impairment charges at beginning of period to stage 1	78	-63	-15	0	0
Transfer of impairment charges at beginning of period to stage 2	-54	60	-6	0	0
Transfer of impairment charges at beginning of period to stage 3	0	-32	32	0	0
Impairment charges on new loans, etc.	68	74	99	0	241
Impairment charges on discontinued loans and provisions for guarantees	-53	-77	-131	0	-261
Effect from recalculation	-54	146	134	1	227
Previously recognized as impairment charges, now final loss	0	0	-32	0	-32
Balance on 31 March 2023	503	868	1,786	2	3,159

Balance of loan impairment charges and provisions for guarantees by				Non performing at first
stage – total	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2022	663	462	2,346	1	3,472
Transfer of impairment charges at beginning of period to stage 1	82	-79	-3	0	0
Transfer of impairment charges at beginning of period to stage 2	-38	61	-23	0	0
Transfer of impairment charges at beginning of period to stage 3	-3	-14	17	0	0
Impairment charges on new loans, etc.	105	21	93	0	219
Impairment charges on discontinued loans and provisions for guarantees	-89	-36	-110	0	-235
Effect from recalculation	-135	319	-130	0	54
Previously recognized as impairment charges, now final loss	0	0	-161	0	-161
Balance on 31 March 2022	585	734	2,029	1	3,349

				Non performing at first
Balance of impairment charges by stage - loans at amortised cost	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2023	381	687	1,513	0	2,581
Transfer of impairment charges at beginning of period to stage 1	57	-51	-6	0	0
Transfer of impairment charges at beginning of period to stage 2	-44	49	-5	0	0
Transfer of impairment charges at beginning of period to stage 3	0	-27	27	0	0
Impairment charges on new loans, etc.	37	54	69	0	160
Impairment charges on discontinued loans and provisions for guarantees	-19	-67	-102	0	-188
Effect from recalculation	-32	126	139	3	236
Previously recognized as impairment charges, now final loss	0	0	-32	0	-32
Balance on 31 March 2023	380	771	1,603	3	2,757

				Non performing at first
Balance of impairment charges by stage - loans at amortised cost	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2022	484	316	2,014	0	2,814
Transfer of impairment charges at beginning of period to stage 1	57	-55	-2	0	0
Transfer of impairment charges at beginning of period to stage 2	-34	56	-22	0	0
Transfer of impairment charges at beginning of period to stage 3	-3	-13	16	0	0
Impairment charges on new loans, etc.	51	6	47	0	104
Impairment charges on discontinued loans and provisions for guarantees	-41	-23	-50	0	-114
Effect from recalculation	-99	339	-243	0	-3
Previously recognized as impairment charges, now final loss	0	0	-52	0	-52
Balance on 31 March 2022	415	626	1,708	0	2,749

DKKm

				Non performing at first
Balance of impairment charges by stage – loans at fair value	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2023	2	1	2	0	5
Transfer of impairment charges at beginning of period to stage 1	2	0	-2	0	0
Transfer of impairment charges at beginning of period to stage 2	0	0	0	0	0
Transfer of impairment charges at beginning of period to stage 3	0	0	0	0	0
Impairment charges on new loans, etc.	1	0	0	0	1
Impairment charges on discontinued loans and provisions for guarantees	-1	-1	0	0	-2
Effect from recalculation	-2	0	0	0	-2
Previously recognized as impairment charges, now final loss	0	0	0	0	0
Balance on 31 March 2023	2	0	0	0	2

				Non performing at first
Balance of impairment charges by stage – loans at fair value	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2022	1	1	0	0	2
Transfer of impairment charges at beginning of period to stage 1	0	0	0	0	0
Transfer of impairment charges at beginning of period to stage 2	0	0	0	0	0
Transfer of impairment charges at beginning of period to stage 3	0	0	0	0	0
Impairment charges on new loans, etc.	1	0	0	0	1
Impairment charges on discontinued loans and provisions for guarantees	-1	0	0	0	-1
Effect from recalculation	0	0	0	0	0
Previously recognized as impairment charges, now final loss	0	0	0	0	0
Balance on 31 March 2022	1	1	0	0	2

				Non performing at first
Balance of provisions by stage - guarantees and loan commitments, etc.	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2023	135	71	191	1	398
Transfer of impairment charges at beginning of period to stage 1	19	-12	-7	0	0
Transfer of impairment charges at beginning of period to stage 2	-10	11	-1	0	0
Transfer of impairment charges at beginning of period to stage 3	0	-5	5	0	0
Impairment charges on new loans, etc.	30	20	30	0	80
Impairment charges on discontinued loans and provisions for guarantees	-32	-9	-29	0	-70
Effect from recalculation	-20	19	-6	-1	-8
Previously recognized as impairment charges, now final loss	0	0	0	0	0
Balance on 31 March 2023	122	95	183	0	400

				Non performing at first
Balance of provisions by stage - guarantees and loan commitments, etc.	Stage 1	Stage 2	Stage 3	recognition	Total
Balance, beginning of 2022	176	145	334	1	656
Transfer of impairment charges at beginning of period to stage 1	26	-24	-2	0	0
Transfer of impairment charges at beginning of period to stage 2	-4	5	-1	0	0
Transfer of impairment charges at beginning of period to stage 3	0	-1	1	0	0
Impairment charges on new loans, etc.	54	15	47	0	116
Impairment charges on discontinued loans and provisions for guarantees	-47	-13	-61	0	-121
Effect from recalculation	-36	-20	112	0	56
Previously recognized as impairment charges, now final loss	0	0	-109	0	-109
Balance on 31 March 2022	169	107	321	1	598

DKKm

				Non performing at first
Gross loans, advances and guarantees by stage	Stage 1	Stage 2	Stage 3	recognition	Total
Gross loans, advances and guarantees, 1 January 2023	215,835	7,499	4,328	83	227,745
Transfer of loans, advances and guarantees to stage 1	3,687	-3,609	-78	0	0
Transfer of loans, advances and guarantees to stage 2	-4,075	4,252	-177	0	0
Transfer of loans, advances and guarantees to stage 3	-466	-278	744	0	0
Other movements	-5,505	1,294	-687	9	-4,889
Gross loans, advances and guarantees, 31 March 2023	209,476	9,158	4,130	92	222,856
Loan impairment charges and provisions for guarantees, total	429	827	1,736	2	2,994
Net loans, advances and guarantees, 31 March 2023	209,047	8,331	2,394	90	219,862

				Non performing at first
Gross loans, advances and guarantees by stage	Stage 1	Stage 2	Stage 3	recognition	Total
Gross loans, advances and guarantees, 1 January 2022	156,186	7,695	4,561	0	168,442
Additions relating to new portfolio	41,796	0	0	83	41,879
Transfer of loans, advances and guarantees to stage 1	3,687	-3,609	-78	0	0
Transfer of loans, advances and guarantees to stage 2	-4,076	4,252	-176	0	0
Transfer of loans, advances and guarantees to stage 3	-466	-278	744	0	0
Other movements	18,708	-561	-723	0	17,424
Gross loans, advances and guarantees, 31 December 2022	215,835	7,499	4,328	83	227,745
Loan impairment charges and provisions for guarantees, total	444	716	1,653	0	2,813
Net loans, advances and guarantees, 31 December 2022	215,391	6,783	2,675	83	224,932

Jyske Bank / Q1 2023 / Notes / Page 56
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Note Jyske Bank

DKKm

7 Loan impairment charges and provisions for guarantees, cont.

Loans, advances and guarantees by stage and internal rating - gross before impairment charges and provisions

				31 Dec. 2022
	PD band				Purchased/ originated
Performing	(%)	Stage 1	Stage 2	Stage 3	credit-impaired	Total	Total
1	0.00 - 0.10	50,095	171	0	0	50,266	54,062
2	0.10 - 0.15	13,942	11	0	0	13,953	16,815
3	0.15 - 0.22	24,651	37	0	0	24,688	21,488
4	0.22 - 0.33	25,074	110	0	0	25,184	27,561
5	0.33 - 0.48	16,963	324	0	0	17,287	14,914
STY Ratings 1 – 5		130,725	653	0	0	131,378	134,840
6	0.48 - 0.70	24,811	225	0	0	25,036	26,401
7	0.70 - 1.02	16,471	1,058	0	0	17,529	16,068
8	1.02 - 1.48	16,985	447	0	0	17,432	19,743
9	1.48 - 2.15	6,423	795	0	0	7,218	7,604
10	2.15 - 3.13	7,259	1,065	0	0	8,324	6,905
11	3.13 - 4.59	2,083	469	0	0	2,552	2,030
STY Ratings 6 – 11		74,032	4,059	0	0	78,091	78,751
12	4.59 - 6.79	892	651	0	0	1,543	2,040
13	6.79 - 10.21	818	537	0	0	1,355	1,651
14	10.21 - 25.0	302	3,162	0	0	3,464	2,979
STY Ratings 12-14		2,012	4,350	0	0	6,362	6,670
Other		2,699	86	0	0	2,785	2,777
Non-performing loans		9	12	4,127	92	4,240	4,707
Total		209,477	9,160	4,127	92	222,856	227,745

Loan impairment charges and provisions for guarantees by stage and internal rating

31 March 2023 31 Dec.

					Purchased/
Performing	PD band (%)	Stage 1	Stage 2	Stage 3	originated credit-impaired	Total	Total
1	0.00 - 0.10	7	1	0	0	8	9
2	0.10 - 0.15	20	0	0	0	20	17
3	0.15 - 0.22	23	0	0	0	23	25
4	0.22 - 0.33	43	2	0	0	45	49
5	0.33 - 0.48	44	7	0	0	51	41
STY Ratings 1- 5		137	10	0	0	147	141
6	0.48 - 0.70	52	22	0	0	74	62
7	0.70 - 1.02	54	16	0	0	70	56
8	1.02 - 1.48	58	7	0	0	65	61
9	1.48 - 2.15	31	36	0	0	67	41
10	2.15 - 3.13	42	50	0	0	92	94
11	3.13 - 4.59	26	23	0	0	49	31
STY Ratings 6 – 11		263	154	0	0	417	345
12	4.59 - 6.79	10	28	0	0	38	55
13	6.79 - 10.21	6	24	0	0	30	48
14	10.21 - 25.0	4	593	0	0	597	512
STY Ratings 12-14		20	645	0	0	665	615
Other		9	16	0	0	25	17
Non-performing loans		0	2	1,736	2	1,740	1,695
Total		429	827	1,736	2	2,994	2,813

DKKm

7 Loan impairment charges and provisions for guarantees, cont.

Loan commitments and unutilised credit facilities by stage and internal rating

		31 March 2023
Performing	PD band (%)	Stage 1	Stage 2	Stage 3	Purchased/ originated credit impaired	Total	Total
1	0.00 - 0.10	20,967	14	0	0	20,981	21,272
2	0.10 - 0.15	4,313	0	0	0	4,313	4,650
3	0.15 - 0.22	7,109	35	0	0	7,144	6,429
4	0.22 - 0.33	8,233	14	0	0	8,247	8,161
5	0.33 - 0.48	5,190	49	0	0	5,239	5,018
STY Ratings 1 – 5		45,812	112	0	0	45,924	45,530
6	0.48 - 0.70	5,488	439	0	0	5,927	7,602
7	0.70 - 1.02	5,691	272	0	0	5,963	5,103
8	1.02 - 1.48	3,722	354	0	0	4,076	5,218
9	1.48 - 2.15	2,272	218	0	0	2,490	1,617
10	2.15 - 3.13	1,167	172	0	0	1,339	1,180
11	3.13 - 4.59	642	126	0	0	768	758
STY Ratings 6 – 11		18,982	1,581	0	0	20,563	21,478
12	4.59 - 6.79	182	218	0	0	400	565
13	6.79 - 10.21	533	168	0	0	701	935
14	10.21 - 25.0	12	614	0	0	626	478
STY Ratings 12-14		727	1,000	0	0	1,727	1,978
Other		7	9	0	0	16	3,177
Non-performing loans		0	0	323	2	325	510
Total		65,528	2,702	323	2	68,555	72,673

Provisions for loan commitments and unutilised credit facilities by stage and internal rating

			31 March 2023
					Purchased/ originated credit
Performing	PD band (%)	Stage 1	Stage 2	Stage 3	impaired	Total	Total
1	0.00 - 0.10	1	0	0	0	1	2
2 3	0.10 - 0.15 0.15 - 0.22	4 7	0 0	0 0	0 0	4 7	4 6
4	0.22 - 0.33	6	0	0	0	6	7
5	0.33 - 0.48	7	0	0	0	7	8
STY Ratings 1 – 5		25	0	0	0	25	27
6	0.48 - 0.70	13	1	0	0	14	17
7	0.70 - 1.02	8	1	0	0	9	7
8	1.02 - 1.48	9	3	0	0	12	8
9	1.48 - 2.15	5	1	0	0	6	5
10	2.15 - 3.13	5	3	0	0	8	7
11	3.13 - 4.59	3	1	0	0	4	4
STY Ratings 6 – 11		43	10	0	0	53	48
12	4.59 - 6.79	1	9	0	0	10	4
13	6.79 - 10.21	3	4	0	0	7	14
14	10.21 - 25.0	0	22	0	0	22	15
STY Ratings 12-14		4	35	0	0	39	33
Other		0	0	0	0	0	1
Non-performing loans		0	0	46	0	46	62
Total		72	45	46	0	163	171

DKKm

8 Loans, advances and guarantees as well as loan impairment charges and provisions for guarantees by sector

Sector			Loans, advances and guarantees		Loan impairment Balance of loan charges and impairment charges provisions for and provisions for guarantees for guarantees the period				Loss for the period
	%
	31	%
	March 2023	End of 2022	31 March 2023	End of 2022	31 March 2023	End of 2022	Q1 2023	Q1 2022	Q1 2023	Q1 2022
Public authorities	6	6	13,052	13,399	0	0	0	0	0	0
Agriculture, hunting,
forestry, fishing	6	6	12,632	11,463	130	138	-10	-39	0	26
Fishing	2	2	5,312	4,147	16	18	-2	7	0	0
Dairy farmers	0	0	462	443	53	58	-6	-21	0	25
Plant production	2	2	3,725	3,590	26	29	-3	-7	0	0
Pig farming	1	1	1,649	1,741	27	27	-1	-15	0	1
Other agriculture	1	1	1,484	1,542	8	6	2	-3	0	0
Manufacturing, mining, etc.	5	5	11,941	12,259	290	176	112	-105	1	0
Energy supply	3	3	8,109	7,275	20	20	0	-11	0	0
Building and construction	2	2	4,441	4,465	65	56	6	-1	0	1
Commerce	5	4	10,290	9,156	281	265	11	-49	0	0
Transport, hotels and
restaurants	2	1	3,494	3,245	71	72	-2	-17	0	0
Information and
communication	1	1	2,854	2,815	147	140	5	-2	0	0
Financing and insurance	37	39	81,184	87,515	835	851	-23	268	0	0
Real property	12	12	24,823	24,615	129	109	-16	-51	0	111
Lease of real property	7	7	14,475	14,793	80	62	-16	-49	0	111
Buying and selling of real	2	2	3,887	3,639	15	12	2	0	0	0
property
Other real property	3	3	6,461	6,183	34	35	-2	-2	0	0
Other sectors	5	4	11,613	10,107	231	181	47	12	6	2
Corporate Clients	78	77	171,381	172,915	2,199	2,008	130	5	7	140
Personal clients	16	17	35,429	38,618	797	804	-2	-95	45	38
Unutilised credit lines and
loan commitments Total	0 100	0 100	0 219,862	0 224,932	163 3,159	172 2,984	-8 120	70 -20	0 52	0 178

		31 March 2023	31 Dec. 2022	31 March 2022
9	Deposits
	Demand deposits	151,375	155,035	109,694
	Term deposits	2,464	748	995
	Time deposits	61,058	39,240	22,406
	Special deposits	6,102	6,316	4,531
	Total	220,999	201,339	137,626

Statement by the Executive and Supervisory Boards

We have today discussed and approved the Interim Financial Report of Jyske Bank A/S for the period 1 January to 31 March 2023.

The consolidated Interim Financial Statements were prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU, and the Parent's Interim Financial Statements in accordance with the Danish Financial Business Act. Further, the Interim Financial Report was prepared in accordance with the additional Danish disclosure requirements for interim financial reports of listed financial companies.

The Interim Financial Report is unaudited and has not been reviewed, but the external auditor verified the profit, and this verification included audit procedures in line with the requirements relating to a review, and hence it was ascertained that the conditions for on-going recognition of the profit for the period in the capital base were met.

In our opinion, the Interim Financial Statements give a true and fair view of the Group's and the Parent's assets, liabilities and financial position on 31 March 2023 and also of their financial performance as well as the cash flows of the Group for the period 1 January to 31 March 2023.

In our opinion, the Management's Review gives a fair presentation of the development in the Group's and the Parent's performance and financial position, the profit for the period and the Group's and the Parent's financial position as a whole as well as a description of the most material risks and elements of uncertainty that may affect the Group and the Parent.

Silkeborg, 2 May 2023

EXECUTIVE BOARD

ANDERS DAM CEO and Managing Director

NIELS ERIK JAKOBSEN PETER SCHLEIDT PER SKOVHUS

/JENS BORUM Director, Finance

SUPERVISORY BOARD

KURT BLIGAARD PEDERSEN Chairman

RINA ASMUSSEN

BENTE OVERGAARD

PER SCHNACK

KELD NORUP Deputy Chairman

ANKER LADEN-ANDERSEN

JOHNNY CHRISTENSEN Employee Representative

MARIANNE LILLEVANG Employee Representative MICHAEL C. MARIEGAARD Employee Representative

Jyske Bank / Q1 2023 / Statement by the Executive and Supervisory Boards / Page 60