Interim Financial Report Q1-Q3 2022

Management's Review

The Jyske Bank Group	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	18
Balance Sheet	19
Statement of Changes in Equity	20
Capital Statement	21
Summary of cash flow statement	22
Notes	23

Jyske Bank A/S	43

Statement by the Executive and Supervisory Boards 57

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

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

	Q1-Q3	Q1-Q3	Index	Q3	Q2	Q1	Q4	Q3	Full year
	2022	2021	22/21	2022	2022	2022	2021	2021	2021
Net interest income	4,083	3,696	110	1,412	1,359	1,312	1,277	1,242	4,973
Net fee and commission income	1,848	1,663	111	598	567	683	645	578	2,308
Value adjustments	-384	733	-	-300	-93	9	207	128	940
Other income	195	149	131	20	70	105	26	32	175
Income, operating lease (net)	283	184	154	98	105	80	72	81	256
Core income	6,025	6,425	94	1,828	2,008	2,189	2,227	2,061	8,652
Core expenses	3,550	3,516	101	1,206	1,184	1,160	1,388	1,174	4,904
Core profit before loan impairment charges	2,475	2,909	85	622	824	1,029	839	887	3,748
Loan impairment charges	-447	-73	612	-200	-192	-55	-145	-36	-218
Core profit	2,922	2,982	98	822	1,016	1,084	984	923	3,966
Investment portfolio earnings	-102	82	-	-119	13	4	-21	-22	61
Profit before one-off items	2,820	3,064	92	703	1,029	1,088	963	901	4,027
One-off items relating to Handelsbanken DK	-78	0	-	-67	-11	0	0	0	0
Pre-tax profit	2,742	3,064	89	636	1,018	1,088	963	901	4,027
Tax	548	673	81	133	178	237	178	195	851
Net profit for the period	2,194	2,391	92	503	840	851	785	706	3,176
Interest on AT1 capital, charged against
equity	108	140	77	37	35	36	36	52	176
Summary of balance sheet, end of period (DKKbn)
Loans and advances	466.5	482.3	97	466.5	481.8	479.9	485.2	482.3	485.2
- of which mortgage loans	304.5	338.5	90	304.5	319.1	329.5	340.9	338.5	340.9
- of which bank loans	115.2	97.1	119	115.2	113.3	110.5	103.3	97.1	103.3
- of which repo loans	46.8	46.7	100	46.8	49.4	39.9	41.0	46.7	41.0
Bonds and shares, etc.	88.7	88.6	100	88.7	89.4	90.0	85.7	88.6	85.7
Total assets	672.0	670.5	100	672.0	667.1	650.2	647.1	670.5	647.1

Deposits	162.1	136.2	119	162.1	156.4	141.9	134.2	136.2	134.2
- of which bank deposits	149.2	122.5	122	149.2	140.1	127.1	121.5	122.5	121.5
- of which repo and triparty deposits	12.9	13.7	94	12.9	16.3	14.8	12.7	13.7	12.7
Issued bonds at fair value	299.8	338.5	89	299.8	312.2	327.1	340.3	338.5	340.3
Issued bonds at amortised cost	87.7	76.0	115	87.7	77.7	67.8	73.1	76.0	73.1

Subordinated debt	6.4	5.5	116	6.4	5.4	5.5	5.5	5.5	5.5
Holders of additional tier 1 capital	3.3	3.4	97	3.3	3.3	3.3	3.4	3.4	3.4
Shareholders' equity	35.8	34.8	103	35.8	35.2	35.0	34.9	34.8	34.9
Financial ratios and key figures
Earnings per share for the period (DKK)*	31.9	31.5		7.3	12.4	12.1	10.9	9.3	42.4
Earnings per share for the period (diluted)	31.9	31.5		7.3	12.4	12.1	10.9	9.3	42.4
(DKK)*
Pre-tax profit as % of average equity*	10.0	11.4		6.7	11.2	12.0	10.7	9.8	11.3
Profit for the period as % of average equity*	7.9	8.8		5.2	9.2	9.3	8.6	7.6	8.8
Expenses as a percentage of income	58.9	54.7		66.0	59.0	53.0	62.3	57.0	56.7
Capital ratio (%)	23.6	22.6		23.6	22.2	21.6	22.8	22.6	22.8
Common equity tier 1 capital ratio (%)	18.6	18.0		18.6	17.9	17.2	18.2	18.0	18.2
Individual solvency requirement (%)	11.3	11.2		11.3	11.1	10.7	11.2	11.2	11.2
Capital base (DKKbn)	44.8	41.9		44.8	43.2	42.5	42.9	41.9	42.9
Weighted risk exposure (DKKbn)	190.0	185.1		190.0	194.3	197.1	188.2	185.1	188.2

Share price at end of period (DKK)	398	277		398	347	369	337	277	337
Distributed dividend per share (DKK)	0	0		0	0	0	0	0	0
Book value per share (DKK)*	557	498		557	548	532	515	498	515
Price/book value per share (DKK)*	0.7	0.6		0.7	0.6	0.7	0.7	0.6	0.7
Outstanding shares in circulation ('000)	64,251	69,954		64,251	64,258	65,836	67,840	69,954	67,840
No. of full-time employees, end of period**	3,266	3,266		3,266	3,218	3,237	3,242	3,266	3,242

Relationships between income statement items under 'The Jyske Bank Group' (key financial data) and the income statement page 18 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 third quarter of 2022 less 18 employees who are financed externally against 15-20 employees in the other quarters.

Summary

"Jyske Bank's earnings per share increased over the first nine months of 2022 and thus defied a heavy negative turn from DKK 0.8 bn to -0.5 bn in value adjustments and investment portfolio earnings. Core profit before impairment charges and value adjustments rose by 31%. The significant fluctuations in the financial markets reflect increasing uncertainty about the macroeconomic development due to accelerating inflation, to which the war in Ukraine has added fuel.

The inflationary pressure has resulted in historically rapid increases in interest rates and hence an end to the period of negative interest rates. A period of stagflation in the form of negative growth and continued inflation is probably imminent, even though the depth and the length of the economic slowdown is still unknown. We focus on helping our clients through the times of uncertainty. Also, Jyske Bank will contribute to reducing the dependence on energy supplies from Russia by lowering its own energy consumption by 15%.

The economic situation of Denmark is good, and Jyske Bank's business is still progressing supported by an increasing business volume and a good level of activity. To this must be added the impact from tight cost control and continued solid credit quality. The acquisition of Svenska Handelsbanken's activities in Denmark has been approved by the competition authorities, and we are very much looking forward to welcoming clients and employees in the coming months", states Anders Dam, CEO and Managing Director.

The Danish economy was still characterised by increasing employment in the first nine months of 2022, but the high economic growth after the end to the restrictions imposed due to the COVID-19 pandemic in 2021 did, however, weaken. Capacity pressure in global supply chains contributed to an imbalance between supply and demand, resulting in accelerating inflation. The inflation has reached a 40-year high and resulted in historically high increases in interest rates to the detriment of the households' purchasing power and a new low in consumer confidence. This has added to the likelihood of an economic slowdown and lower housing prices. However, the Danish economy is well positioned to handle a period of lower growth, and Jyske Bank is focusing on helping its clients handling their financial issues.

On 20 June 2022, Jyske Bank entered into an agreement to buy the activities of Svenska Handelsbanken in Denmark, comprising about 600 employees and 43 branches and with a headquarter in Copenhagen. The Danish activities were established in 1992 and have since then grown organically supplemented by acquisitions of Midtbank and Lokalbanken. Based on the level at the end of 2021, the transaction comprises more than 130,000 clients, bank loans and advances of DKK 66 bn and deposits of DKK 36 bn. According to the agreement, Jyske Bank will on the acquisition date make a payment in cash for assets and liabilities in addition to a payment for goodwill in the amount of DKK 3.0 bn. The acquisition will strengthen Jyske Bank's market position, and its business volume will increase by about a fifth. The greater scale will also support the possibilities of developing and offering attractive products and services to Jyske Bank's current and future clients.

The acquisition will also offer the possibility of realising economies of scale based on a common IT platform. It is expected that the transaction will be completed before the end of 2022 following approval from the Danish Competition and Consumer Authority in October.

Jyske Bank is well positioned for both organic growth and integration of Svenska Handelsbanken's activities in Denmark. Over the past decade, Jyske Bank has optimised its business through significant income and cost initiatives, new strategic cooperation agreements, as well as organisational adjustments. Several acquisitions have been integrated, including the merger with BRFkredit in 2014 being the most important one.

In the first nine months of 2022, the corporate client area realised a large increase in business volume. The personal client area implemented further branch mergers, and with effect as of 1 April 2022 it introduced a new client programme. The purpose of this programme is to secure that, in a profitable manner, Jyske Bank will still be able to offer its personal clients accessible, personal, and competent advice as well as good and fast service. These characteristics also apply to Jyske Bank's private banking activities, and for the seventh year in a row Jyske Bank was according to Voxmeter voted the best bank for private banking clients in Denmark.

In the first nine months of 2022, the expansion of easy and digital access to Jyske Bank's services continued in the form of, among other things, selfservice ordering of additional loans and a Jyske Forsikring (insurance) overview in Jyske Mobilbank. The period also saw the launch of extensive training

activities for advisers within the field of sustainability as well as incorporation of ESG preferences in the investment advice offered. Moreover, Jyske Bank joined the Green Building Council Denmark, which endeavours to promote sustainability in construction to the whole range of players. Jyske Bank had intermediate targets approved by Net Zero Asset Managers Initiative as part of the obligation to have the clients' investment portfolios net CO2 neutral by 2050. Also, Jyske Bank has installed solar panels at its headquarter which will help reduce net electricity consumption going forward.

Earnings per share of DKK 31.9 Q1-Q3 2022

Earnings per share rose to DKK 31.9 from DKK 31.5, which includes an amount of DKK 78m incurred one-off expenses relating to the acquisition of Handelsbanken Denmark. Net profit for the period at DKK 2,194m corresponded to a return on equity of 7.9% p.a. against DKK 2,391m and 8.8% p.a., respectively, for the first nine months of 2021. The still solid profit defied a turn of DKK 1.3 bn on value adjustments and investment portfolio earnings. Hence the profit reflects a good underlying development with an increasing business volume, a high level of activity, and a good credit quality.

Overall, Jyske Bank's business volume showed progress in the first nine months of 2022. Loans and advances under banking activities saw one of the highest growth rates reported so far, namely of 22% relative to the first nine months of 2021. The progress can be attributed to corporate clients. Leasing and car financing realised an increase of 8% despite challenged supply chains in the auto industry. Nominal mortgage loans rose by 1% due to higher loans to corporate clients while mortgage loans to personal clients fell, partly because clients with fixed-rate loans took advantage of the opportunity to reduce their outstanding debt. Bank deposits rose by 22% due to corporate clients.

Adjusted for a negative turn in value adjustments, core income saw a broadly based increase by 13%. Net interest income was supported by rising bank loans and advances to corporate clients as well as rising interest rates. Net fee and commission income rose, among other things, due to a high level of loan and remortgaging activity as well as a new client programme for personal clients. Other income was favourably affected, among other things, by higher dividends, and still favourable sales conditions in the used-car market resulted in higher income from operating lease (net).

Core expenses rose by 1% compared to Q1-Q3 2021. Additionally, one-off expenses of DKK 78m relating to the acquisition of Svenska Handelsbanken's activities in Denmark were recognised. The underlying cost inflation was reduced by lower expenses for Bankdata.

Loan impairment charges amounted to an income of DKK 447m against an income of DKK 73m in the first nine months of 2021. The credit quality is still solid with a low level of non-performing loans. Due to the macroeconomic uncertainty, Jyske Bank maintains a significant management's estimates for impairment charges totalling DKK 1,640m. This level is roughly unchanged compared with the preceding quarters.

At the end of the first nine months of 2022, Jyske Bank's common equity tier 1 capital ratio was calculated at a historically high level at 18.6%, corresponding to an excess capital adequacy of DKK 13.8 bn relative to regulatory requirements.

Outlook 2022

For 2022, Jyske Bank anticipates earnings per share at the upper end of the range of DKK 44-50 and a net profit at the upper end of the range of DKK 3.0 bn - 3.4 bn. The ranges exclude one-off expenses of expectedly DKK 0.1 bn, corresponding to earnings per share of slightly above DKK 1.

For 2022, the business volume is expected to be affected by increasing bank loans as well as increasing nominal mortgage loans to corporate clients.

Core income may fall in 2022 due to considerably lower value adjustments than in 2021.

Core expenses exclusive of one-off expenses are expected to be roughly unchanged in 2022 compared to 2021.

Loan impairment charges and provisions for guarantees are expected to amount to an income in 2022.

Financial Review

Core profit and net profit for the period (DKKm)

	Q1-Q3	Q1-Q3	Index	Q3	Q2	Q1	Q4	Q3	FY
	2022	2021	22/21	2022	2022	2022	2021	2021	2021
Net interest income	4,083	3,696	110	1,412	1,359	1,312	1,277	1,242	4,973
Net fee and commission income	1,848	1,663	111	598	567	683	645	578	2,308
Value adjustments	-384	733	-	-300	-93	9	207	128	940
Other income	195	149	131	20	70	105	26	32	175
Income from operating lease (net)	283	184	154	98	105	80	72	81	256
Core income	6,025	6,425	94	1,828	2,008	2,189	2,227	2,061	8,652
Core expenses	3,550	3,516	101	1,206	1,184	1,160	1,388	1,174	4,904
Core profit before loan impairment charges	2,475	2,909	85	622	824	1,029	839	887	3,748
Loan impairment charges	-447	-73	612	-200	-192	-55	-145	-36	-218
Core profit	2,922	2,982	98	822	1,016	1,084	984	923	3,966
Investment portfolio earnings	-102	82	-	-119	13	4	-21	-22	61
Profit before one-off items	2,820	3,064	92	703	1,029	1,088	963	901	4,027
One-off items relating to Handelsbanken DK	-78	0	-	-67	-11	0	0	0	0
Pre-tax profit	2,742	3,064	89	636	1,018	1,088	963	901	4,027
Tax	548	673	81	133	178	237	178	195	851
Net profit for the period	2,194	2,391	92	503	840	851	785	706	3,176
Interest on AT1 capital, charged against equity	108	140	77	37	35	36	36	52	176

Net profit for the period

Earnings per share amounted to DKK 31.9 in the first nine months of 2022 against DKK 31.5 in the same period of 2021, corresponding to a net profit of DKK 2,194m and DKK 2,391m, respectively. The still solid profit defied a turn of DKK 1.3 bn in value adjustments and investment portfolio earnings. Hence the profit reflects a good underlying development with increasing business volumes, a high level of activity, and good credit quality.

Core income

Core income fell by 6% relative to the first nine months of 2021. Adjusted for a negative development in value adjustments, core income rose by 13%.

Net interest income increased by 10% relative to the first nine months of 2021. The increase was caused by higher interest income from excess liquidity and higher bank loans and advances to corporate clients.

Net fee and commission income rose by 11% to DKK 1,848m. The increase was primarily caused by refinancing of fixed-rate mortgage loans due to higher interest rates, introduction of a new client programme, as well as a high lending activity.

Value adjustments fell to DKK -384m from DKK 733m the preceding year. The drop from a high level was primarily caused by the effect of rising interest rates on the Group's hedging of interestrate risk as well as widening spreads for Danish mortgage bonds.

Other income rose to DKK 195m from DKK 149m due to higher dividends, etc. as well as positive results on equity investments in associates.

Income from operating lease (net) rose to DKK 283m from DKK 184m due to the favourable sales conditions in the used car market.

Core expenses

Core expenses (DKKm)

	Q1-Q3 2022	Q1-Q3 2021
Employee costs	2,198	2,185
IT costs	972	976
Rent, etc.	49	42
Amortisation, depreciation and
impairment	80	76
Other operating expenses	251	237
Total	3,550	3,516

Loan impairment charges

Loan impairment charges and provisions for guarantees amounted to an income of DKK 447m against an income of DKK 73m in the first nine months of 2021. The credit quality is still solid with a low level of non-performing loans. Due to the macroeconomic uncertainty, Jyske Bank maintains a significant management's estimate for loan impairment charges totalling DKK 1,640m.

Investment portfolio earnings

For the first nine months of 2022, investment portfolio earnings amounted to DKK -102m against DKK 82m for the same period of 2021. The negative result can primarily be attributed to the effect from the wider credit spreads on bonds. The hedging of additional tier 1 capital instruments in SEK had a negative effect of DKK 43m in the first nine months of 2022 and was offset by a positive adjustment of shareholders' equity.

Investment portfolio earnings (DKKm)

	Q1-Q3	Q1-Q3
	2022	2021
Net interest income	47	52
Value adjustments	-127	52
Income	-80	104
Expenses	22	22
Investment portfolio earnings	-102	82

Q3 2022 compared to Q2 2022

Earnings per share amounted to DKK 7.3 in the third quarter against DKK 12.4 in the second quarter, corresponding to a net profit of DKK 503m and DKK 840m, respectively.

Core income fell by 9% due to lower value adjustments and a decrease in other income.

Net interest income grew 4%. The increase could be attributed to higher interest income from excess liquidity, higher bank loans, and one additional day of interest.

Net fee and commission income increased by 5% relative to the preceding quarter. The development can primarily be attributed to seasonally higher income relating to refinancing activity.

Other income fell to DKK 20m from DKK 70m due to seasonally lower share dividends etc.

Income from operating lease (net) remained at a high level of DKK 98m due to the continuing favourable sales conditions in the used car market.

Value adjustments amounted to DKK -300m against DKK -93m in the preceding quarter. The negative impact was primarily caused by the effect from increasing interest rates on the Group's hedging of interest-rate risk as well as widening spreads for Danish mortgage bonds.

Core expenses rose to DKK 1,206m from DKK 1,184m. In addition to the increase in core expenses, one-off expenses relating to the acquisition of Svenska Handelsbanken's activities in Denmark rose DKK 56m.

Loan impairment charges and provisions for guarantees amounted to an income of DKK 200m against an income of DKK 192m in the preceding quarter. The low level of impairment charges can be attributed to the still favourable development of the underlying credit quality.

Investment portfolio earnings amounted to DKK -119m against DKK 13m in the preceding quarter. The negative effect was primarily caused by a flatter yield curve and widening credit spreads.

Business volume

Summary of balance sheet, end of period (DKKbn)

	Q1-Q3	Q1-Q3	Index	Q3	Q2	Q1	Q4	Q3	FY
	2022	2021	22/21	2022	2022	2022	2021	2021	2021
Loans and advances	466.5	482.3	97	466.5	481.8	479.9	485.2	482.3	485.2
- of which mortgage loans	304.5	338.5	90	304.5	319.1	329.5	340.9	338.5	340.9
- of which bank loans	115.2	97.1	119	115.2	113.3	110.5	103.3	97.1	103.3
- of which repo loans	46.8	46.7	100	46.8	49.4	39.9	41.0	46.7	41.0
Bonds and shares, etc.	88.7	88.6	100	88.7	89.4	90.0	85.7	88.6	85.7
Total assets	672.0	670.5	100	672.0	667.1	650.2	647.1	670.5	647.1

Deposits	162.1	136.2	119	162.1	156.4	141.9	134.2	136.2	134.2
- of which bank deposits	149.2	122.5	122	149.2	140.1	127.1	121.5	122.5	121.5
- of which repo and triparty deposits	12.9	13.7	94	12.9	16.3	14.8	12.7	13.7	12.7
Issued bonds at fair value	299.8	338.5	89	299.8	312.2	327.1	340.3	338.5	340.3
Issued bonds at amortised cost	87.7	76.0	115	87.7	77.7	67.8	73.1	76.0	73.1
Subordinated debt	6.4	5.5	116	6.4	5.4	5.5	5.5	5.5	5.5
Holders of additional tier 1 capital	3.3	3.4	97	3.3	3.3	3.3	3.4	3.4	3.4
Shareholders' equity	35.8	34.8	103	35.8	35.2	35.0	34.9	34.8	34.9

At the end of the third quarter of 2022, Jyske Bank's total loans (excl. repo loans) amounted to DKK 419.7 bn and consisted of 73% mortgage loans and 27% bank loans. The decline from DKK 444.2 bn at the end of 2021 was caused by the negative impact from lower bond prices since mortgage loans are recognised at fair value.

Nominal mortgage loans, on the other hand, rose by 1% to DKK 342.6 bn as increased lending to corporate clients more than offset the impact of slightly lower lending to personal clients.

Bank loans rose by 12% to DKK 115.2 bn compared to the level at the end of 2021. Loans under banking activities saw a continued positive development, increasing by 14% driven by higher loans to corporate clients. Loans under leasing activities rose by 4% in the first nine months of 2022 despite challenged supply chains.

Bank deposits amounted to DKK 149.2 bn, corresponding to an increase of 23% relative to the end of 2021. This development was caused by corporate clients, especially after the limit for payments from companies' tax accounts was lowered on 15 June 2022. Bank deposits were DKK 34.0 bn higher than bank loans at the end of the third quarter of 2022.

At the end of the third quarter of 2022, the business volume within asset management had fallen to DKK 176 bn from DKK 208 bn at the end of 2021. The development can in particular be attributed to a negative market return as well as the continued phasing out of international private banking activities.

Q3 2022 compared to Q2 2022

Jyske Bank's total loans (excl. repo loans) amounted to DKK 419.7 bn at the end of the third quarter against DKK 432.4 bn in the previous quarter. The decrease was caused by the negative impact on mortgage loans at fair value from lower bond prices.

Nominal mortgage loans rose by 1% due to higher loans to corporate clients.

Bank loans rose by 2% due to higher loans to large corporate clients.

Bank deposits rose by 7% due to higher deposits from corporate clients.

The business volume within asset management fell to DKK 176 bn from DKK 185 bn, primarily caused by the negative market returns.

Credit quality

Non-performing loans and guarantees (DKKbn)

	Q1-Q3	Q1-Q3	Index	Q3	Q2	Q1	Q4	Q3	FY
	2022	2021	22/21	2022	2022	2022	2021	2021	2021
Loans, advances and guarantees	477.0	495.5	96	477.0	495.8	495.0	498.9	495.5	498.9
Non-performing loans (gross)	10.0	8.5	117	10.0	10.0	9.6	8.8	8.5	8.8
Impairment charges and provisions	2.5	3.3	76	2.5	2.7	2.8	3.4	3.3	3.4
Non-performing loans (net)	7.5	5.2	143	7.5	7.3	6.8	5.4	5.2	5.4
Proportion of non-performing loans (gross)	2.1%	1.7%	122	2.1%	2.0%	1.9%	1.7%	1.7%	1.7%
Coverage ratio, non-performing loans	25.1%	38.5%	65	25.1%	27.1%	28.8%	38.6%	38.5%	38.6%
Proportion of non-performing loans (net)	1.6%	1.1%	148	1.6%	1.5%	1.4%	1.1%	1.1%	1.1%
Non-accrual loans and past due exposures	0.5	0.5	92	0.5	0.5	0.5	0.5	0.5	0.5
Loan impairment charges.	-0.4	-0.1	-	-0.2	-0.2	-0.1	-0.2	0.0	-0.2
Operating losses	0.4	0.2	184	0.1	0.1	0.2	0.1	0.0	0.3

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 59.6% to corporate clients, 37.8% to personal clients, and 2.6% to public authorities. The total exposure fell by 4% in the first nine months of 2022, primarily due to lower mortgage loans calculated at fair value.

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

		Loans, advances and guarantees	Impairment ratio
	Q3	Q4	Q3	Q4
Public authorities	2022 12.5	2021 12.8	2022 0.0	2021 0.0
Agriculture, hunting,
forestry and fishing	12.0	7.8	2.1	4.0
Manufacturing industry
and mining	13.0	9.5	1.8	4.3
Energy supply	7.9	10.7	0.3	0.4
Construction	8.4	7.8	1.1	1.2
Commerce	12.6	11.7	1.9	2.5
Transport, hotels and	5.0	6.2	1.8	1.8
restaurants
Information and	2.6	1.1	5.1	11.4
communication
Finance and insurance	53.5	43.6	1.6	1.1
Real property	151.2	163.1	0.6	0.8
Other sectors	18.2	17.9	1.3	1.1
Corporate clients	284.4	279.4	1.1	1.2
Personal clients	180.1	206.7	0.9	0.9
Total	477.0	498.9	1.0	1.0

Loan impairment charges and provisions for guarantees amounted to an income of DKK 447m in the first nine months of 2022, corresponding to 9 bp of gross loans, advances and guarantees. The effect on the income statement is distributed with an income of DKK 376m relating to banking activities, an income of DKK 105m relating to mortgage activities, and an expense of DKK 34m relating to leasing activities. The reversal of impairment charges in the first nine months of 2022 was generally caused by a good underlying development of the clients' credit quality.

At the end of the third quarter of 2022, nonperforming loans amounted to 1.6% of loans, advances and guarantees against 1.1% at the end of 2021. The increase was mainly caused by the FSA's clarification that repeated overdrafts must be considered breach of contract, with the result that the exposure is ranked in Stage 3. The proportion of loans subject to forbearance measures was roughly unchanged at 1.6% compared to 1.5% at the end of 2021. The proportion of loans, advances and guarantees in stage 1 rose to 95.1% from 94.3% at the end of 2021.

Loans, advances and guarantees by IFRS 9 stages (DKKbn/%) Loans, advances and guarantees Balance of impairment charges Impairment ratio Q3 2022 Q4 2021 Q3 2022 Q4 2021 Q3 2022 Q4 2021 Stage 1 453.6 470.4 1.1 1.0 0.3 0.2 Stage 2 16.9 23.6 1.2 0.8 5.9 3.4 Stage 3 6.5 4.9 2.4 3.4 27.3 40.6 Total 477.0 498.9 4.7 5.2 1.0 1.0

At the end of the third quarter of 2022, Jyske Bank's balance of loan impairment charges amounted to DKK 4.7 bn, corresponding to 1.0% of loans, advances and guarantees against DKK 5.2 bn and 1.0%, respectively, at the end of 2021.

At the end of the third quarter of 2022, impairment charges based on management's estimates amounted to DKK 1,640m against DKK 1,770m at the end of 2021. The decline can primarily be attributed to lower estimates relating to processrelated risks, as the estimates for amounts overdrawn by personal clients and limited insight into personal clients' finances were reduced. On the other hand, the estimate for macroeconomic risks was raised. While the risk of failure to identify risks relating to the COVID-19 pandemic is still decreasing, the energy and inflation crisis has resulted in a higher risk of a severe or a very severe economic scenario.

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.

It is anticipated that the purchase of Svenska Handelsbanken's activities in Denmark will be completed before the end of the year, and that - as a result of this - Jyske Bank's capital ratios could temporarily be below the targeted ranges.

At the end of the third quarter of 2022, Jyske Bank had a capital ratio of 23.6% and a common equity tier 1 capital ratio of 18.6% compared to 22.8% and 18.2%, respectively, at the end of 2021. In the first nine months of 2022, the capital ratios were increased due to the recognition of the profit for the period, which more than compensated for the effect of an increase of a share buy-back programme in the amount of DKK 1 bn as well as an increase in the weighted risk exposure.

Capital ratios (%)

	Q3	Q4
	2022	2021
Capital ratio	23.6	22.8
Core capital ratio incl. hybrid capital	20.3	20.0
Common equity tier 1 capital ratio	18.6	18.2

The total weighted risk exposure amounted to DKK 190.0 bn at the end of the third quarter of 2022 against DKK 188.2 bn at the end of 2021. The increase can primarily be attributed to the higher credit risk in consequence of the implementation of EBA guidelines, which was partly offset by the effect from lower mortgage loans recognised at fair value.

Weighted risk exposure (DKKm)

	Q3	Q4
	2022	2021
Credit risk, etc.	167,006	163,154
Market risk	8,404	10,723
Operational risk	14,634	14,304
Total	190,044	188,181

A reduction of the share capital by 3,560,778 shares, each of a nominal value of DKK 10, was adopted at the extraordinary general meeting on 6 January 2022 and implemented on 15 February 2022. The share capital then amounted to

69,000,000 shares, each of a nominal value of DKK 10.

At the extraordinary general meeting on 14 September 2022, a further reduction of the share capital by 4,727,905 bought-back shares, each of a nominal value of DKK 10, was adopted, and the capital reduction was implemented in October. The share capital then amounted to 64,272,095 shares, each of a nominal value of DKK 10.

Jyske Bank completed the most recent sharebuyback programme in the amount of DKK 2.0 bn on 31 May 2022.

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 third quarter of 2022, Jyske Bank's individual solvency requirement was 11.3% of the weighted risk exposure against 11.2% at the end of 2021. To this must be added a SIFI requirement of 1.5% and a capital conservation buffer of 2.5% as well as the reactivated countercyclical buffer of 1.0%. Hence, the total capital requirement is 16.3%, which is an increase compared with the end of 2021 when the capital requirement was 15.2%.

Capital requirement (%)
	Capital ratio		CET ratio
	Q3 2022	Q4 2021	Q3 2022	Q4 2021
Pillar I	8.0	8.0	4.5	4.5
Pillar II	3.3	3.2	1.8	1.8
SIFI	1.5	1.5	1.5	1.5
Capital conservation
buffer	2.5	2.5	2.5	2.5
Countercyclical buffer	1.0	0.0	1.0	0.0
Capital requirement	16.3	15.2	11.3	10.3

Both the SIFI requirements and the capital conservation buffer have been fully phased in. The countercyclical buffer will be gradually increased from 1% in the third quarter of 2022 to 2.5% in the first quarter of 2023.

Excess capital relative to CET1 capital requirement (%)

	Q3	Q4
	2022	2021
Common equity tier 1 capital ratio	18.6	18.2
Common equity tier 1 capital requirement	11.3	10.3
Excess capital	7.3	7.9

Jyske Bank / Q1-Q3 2022 / Financial Review / Page 9

Consequently, compared with the common equity tier 1 capital ratio, the excess capital adequacy came to 7.3% of the weighted risk exposure, corresponding to DKK 13.8 bn against 7.9% and DKK 14.9 bn, respectively, at the end of 2021.

Liquidity management

Jyske Bank's biggest source of funding is covered bonds and mortgage bonds, which amounted to DKK 300 bn, corresponding to 45% of the balance sheet at the end of the third quarter of 2022. The second-largest funding source is client deposits, which amounted to DKK 149 bn, of which a high proportion consists of deposits from small and medium-sized enterprises as well as personal clients.

At the end of the third quarter of 2022, the Jyske Bank Group's liquidity coverage ratio (LCR) was 185%, down from a very high seasonal level at the end of 2021. 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 third quarter of 2022 is shown below.

Liquidity coverage ratio (LCR)
	DKKbn	%
Level 1a assets	84.5	61
Level 1b assets	50.8	37
Level 2a + 2b assets	2.8	2
Total	138.1	100

At the end of the third quarter of 2022, the Jyske Bank Group's Net Stable Funding Ratio (NSFR) was 142%, against 138% at the end of 2021.

Refinancing profile

The Group is on an ongoing basis active in the French commercial paper (CP) market. At the end of the third quarter of 2022, the outstanding volume under the CP programme amounted to DKK 66 bn against DKK 51 bn at the end of 2021.

At the end of the third quarter of 2022, outstanding senior debt amounted to DKK 24.1 bn, i.e. unchanged relative to the level at the end of 2021. At the end of the third quarter of 2022, outstanding CRD-IV compliant tier 2 and additional tier 1 capital instruments amounted to DKK 6.2 bn and DKK 3.3 bn, respectively, against DKK 5.2 bn and DKK 3.3 bn, respectively, at the end of 2021.

The run-off profile for the Group's unsecured senior debt, etc. determined at the end of the third quarter of 2022 is illustrated by the above chart.

At the end of the third quarter of 2022, covered bonds involving refinancing risk amounted to DKK 214 bn, and the run-off profile of the underlying mortgage loans is shown the chart below.

Issuance activity and funding plans

At the publication of its Interim Financial Report for the first nine months of 2022, the Jyske Bank Group had issued the following bonds in the international capital markets.

Issuance activity

SEK 3 bn preferred senior debt	12.04.2025	Maturity Credit spread 3M CIBOR
(value date 12.04.2022)	(call 2024)	+31bp
DKK 400m tier 2 capital	31.08.2032	3M CIBOR
(value date 31.08.2022)	(call 2027)	+245bp
SEK 600 m tier 2 capital	31.08.2032	3M CIBOR
(value date 31.08.2022)	(call 2027)	+245bp
NOK 400m tier 2 capital	31.08.2032	3M CIBOR
(value date 31.08.2022)	(call 2027)	+245bp
EUR 500m non-preferred senior debt (value date 11.10.2022)	11.04.2026 (call 2025)	3M CIBOR +184bp

Based on the expected increase in the weighted risk exposure due to the acquisition of Svenska Handelsbanken's activities in Denmark as well as changed regulation, Jyske Bank anticipates a

requirement (inclusive of an internal buffer for statutory requirements) for MREL-eligible debt instruments in an amount of DKK 24 bn - 26 bn, of which about DKK 6 bn in the form of preferred senior debt and DKK 18 bn - 20 bn in the form of non-preferred senior debt. At the end of the third quarter of 2022, a total of MREL-eligible debt instruments totalling DKK 17.0 bn had been issued, distributed by DKK 5.8 bn and DKK 11.2 bn on preferred senior debt and non-preferred senior debt, respectively, with a time to maturity of more than 12 months.

Jyske Bank anticipates that before the end of 2022, it will issue non-preferred senior debt in the amount of EUR 500m. Further issues of senior debt will depend on the balance sheet development. Due to the capital position, it is expected that the acquisition of Handelsbanken Denmark will not necessitate any issuance of shares or additional tier 1 capital.

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 unsecured senior debt (preferred senior)	A-1	Stable
Long-term unsecured 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 work with certain ESG rating agencies, 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
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

	Q3 2022	Q4 2021
Sum of large exposures <175% of common equity tier 1 capital	86%	110%
Increase in loans and advances <20% annually Exposures to property administration and	18%	8%
property transactions <25% of total loans and advances	8%	9%
Liquidity benchmark >100%	144%	188%

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

The supervisory diamond for Jyske Realkredit A/S

	Q3 2022	Q4 2021
Concentration risk <100%	50.0%	46.8%
Increase in loans <15% annually in the
segment: Owner-occupied homes and vacation
homes	-3.1%	-1.2%
Residential rental property	7.4%	8.3%
Other sectors	4.7%	-0.5%
Borrower's interest-rate risk <25%
Residential property	16.0%	14.9%
Instalment-free schemes <10%
Owner-occupied homes and vacation
homes	4.7%	5.6%
Loans with frequent interest-rate fixing:
Refinancing (annually) <25%	13.4%	15.1%
Refinancing (quarterly) <12.5%	7.2%	1.0%

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 nine months of 2022 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

21 February	Annual Report 2022
2 May	Interim Financial Report, Q1 2023
	Interim Financial Report, First Half of
15 August	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 2021 and Risk and Capital Management 2021, 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. Jyske Realkredit's interim financial report for the first nine months of 2022, the Annual Report for 2021 and detailed financial information about Jyske Realkredit are available on that website.

Business Segments

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

Banking Activities

Summary of income statement (DKKm)

	Q1-Q3	Q1-Q3	Index	Q3	Q2	Q1	Q4	Q3	FY
	2022	2021	22/21	2022	2022	2022	2021	2021	2021
Net interest income	1,930	1,587	122	693	635	602	567	538	2,154
Net fee and commission income	2,326	2,204	106	793	722	811	834	759	3,038
Value adjustments	-323	644	-	-292	-47	16	173	119	817
Other income	181	132	137	16	65	100	17	24	149
Core income	4,114	4,567	90	1,210	1,375	1,529	1,591	1,440	6,158
Core expenses	3,123	3,097	101	1,069	1,037	1,017	1,246	1,030	4,343
Core profit before loan impairment charges	991	1,470	67	141	338	512	345	410	1,815
Loan impairment charges	-376	-177	-	-231	-125	-20	-97	-36	-274
Core profit	1,367	1,647	83	372	463	532	442	446	2,089
Investment portfolio earnings	-102	82	-	-119	13	4	-21	-22	61
Profit before one-off items	1,265	1,729	73	253	476	536	421	424	2,150
One-off items relating to Handelsbanken DK	-78	0	-	-67	-11	0	0	0	0
Pre-tax profit	1,187	1,729	69	186	465	536	421	424	2,150

Summary of balance sheet, end of period (DKKbn)

Loans and advances	139.0	122.5	114	139.0	140.0	128.0	122.1	122.5	122.1
- of which bank loans	92.2	75.8	122	92.2	90.6	88.1	81.1	75.8	81.1
- of which repo loans	46.8	46.7	100	46.8	49.4	39.9	41.0	46.7	41.0
Total assets	313.7	278.8	113	313.7	300.2	267.9	253.4	278.8	253.4

Deposits	161.9	135.9	119	161.9	156.2	141.7	134.0	135.9	134.0
- of which bank deposits	149.0	123.2	121	149.0	139.9	126.9	121.3	123.2	121.3
- of which repo and triparty deposits	12.9	12.7	102	12.9	16.3	14.8	12.7	12.7	12.7
Issued bonds	82.3	71.2	116	82.3	73.7	63.1	67.9	71.2	67.9

Profit

Pre-tax profit amounted to DKK 1,187m for the first nine months of 2022 against DKK 1,729m for the corresponding period in 2021. The development can be attributed to challenging financial markets resulting in lower value adjustments and investment portfolio earnings.

Core income

Core income fell to DKK 4,114m from DKK 4,567m, due to lower value adjustments. Other income items increased.

Net interest income increased by 22% relative to the first nine months of 2021. The increase was caused by higher interest income from excess liquidity and higher bank loans to corporate clients.

Net fee and commission income increased by 6%. Adjusted for distribution fees received from Jyske Realkredit, net fee and commission income rose by 9% relative to the first nine months of 2021. The increase was caused by a broadly based increase related to a continued high level of activity, supported especially by increased lending growth.

Value adjustments fell to DKK -323m from DKK 644m the preceding year. The drop from a high level was primarily caused by the effect from increasing interest rates on the Group's hedging of interest-rate risk as well as widening spreads for Danish mortgage bonds.

Other income rose to DKK 181m from DKK 132m due to higher dividends, etc. as well as positive results on equity investments in associates.

Core expenses

Loan impairment charges

Loan impairment charges and provisions for guarantees came to an income of DKK 376m against an income of DKK 177m in the first nine months of 2021. The credit quality is still solid with a low level of non-performing loans.

Investment portfolio earnings

For the first nine months of 2022, investment portfolio earnings amounted to DKK -102m against DKK 82m for the same period of 2021. The negative impact can primarily be attributed to the effect from the wider credit spreads on bonds. The hedging of additional tier 1 capital instruments in SEK had a negative effect of DKK 43m in the first nine months of 2022 and was offset by a positive adjustment of shareholders' equity.

Business volumes

In the first nine months of 2022, bank loans rose by 14% compared to the level at the end of 2021, fuelled by higher lending to corporate clients. At the end of the first nine months of 2022, bank deposits amounted to DKK 149.0 bn, corresponding to an increase by 23% relative to the level at the end of 2021 fuelled by corporate clients, to some extent in consequence ofthe lowering of the limit for payments from companies' tax accounts on 15 June 2022.

Q3 2022 compared to Q2 2022

In the third quarter, pre-tax profit amounted to DKK 186m against DKK 465m in the second quarter.

Core income fell to DKK 1,210m from DKK 1,375m, due to lower value adjustments.

Net interest income rose by 9% to DKK 693m. The increase could be attributed to higher interest income from excess liquidity, higher bank loans and advances, and one additional day of interest.

Net fee and commission income rose to DKK 793m from DKK 722m. Exclusive of distribution fees from Jyske Realkredit, net fee and commission income fell by 3% in the quarter. The decrease can primarily be attributed to seasonal fluctuations of fees paid and investment-related fees.

Other income fell to DKK 16m from DKK 65m due to seasonally lower share dividends etc.

Value adjustments amounted to DKK -292m against DKK -47m in the preceding quarter. The negative result was primarily caused by the effect from increasing interest rates on the Group's hedging of interest-rate risk as well as widening spreads for Danish mortgage bonds.

Core expenses rose to DKK 1,069m from DKK 1,037m, partly due to the annual, collectively prescribed salary adjustment. In addition to the increase in core expenses, one-off expenses relating to the acquisition of Svenska Handelsbanken's activities in Denmark rose DKK 56m.

Loan impairment charges and provisions for guarantees amounted to an income of DKK 231m against an income of DKK 125m in the preceding quarter. The low level of loan impairment charges can be attributed to a continued high credit quality.

Investment portfolio earnings amounted to DKK -119m against DKK 13m in the preceding quarter. The negative result was primarily caused by a flatter yield curve and widening credit spreads.

Mortgage activities

Summary of income statement (DKKm)

	Q1-Q3	Q1-Q3	Index	Q3	Q2	Q1	Q4	Q3	FY
	2022	2021	22/21	2022	2022	2022	2021	2021	2021
Administration margin income, etc.1	1,756	1,753	100	581	587	588	590	585	2,343
Other net interest income	51	11	567	32	21	-2	4	2	15
Net fee and commission income	-463	-534	87	-194	-148	-121	-172	-181	-706
Value adjustments	-86	73	-	-10	-67	-9	34	7	107
Other income	0	5	0	0	0	0	0	5	5
Core income	1,258	1,308	96	409	393	456	456	418	1,764
Core expenses	295	290	102	95	100	100	99	101	389
Core profit before loan impairment charges	963	1,018	95	314	293	356	357	317	1,375
Loan impairment charges	-105	113	-	-12	-56	-37	-49	11	64

Pre-tax profit 1,068 905 118 326 349 393 406 306 1,311 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	342.6	338.2	101	342.6	343.9	341.2	339.0	338.2	339.0
Mortgage loans, fair value	304.5	338.5	90	304.5	319.1	329.5	340.9	338.5	340.9
Total assets	332.7	367.8	90	332.7	341.8	357.4	369.0	367.8	369.0

Issued bonds	305.2	343.3	89	305.2	316.2	331.8	345.6	343.3	345.6

Profit

In the first nine months of 2022, pre-tax profit amounted to DKK 1,068m against DKK 905m in the first nine months of 2021. The higher profit can primarily be attributed to a lower level of impairment charges.

Core income

Core income amounted to DKK 1,258m in the first nine months against DKK 1,308m in the preceding year. The change was caused by lower value adjustments, which were partially offset by lower distribution fees paid.

Administration margin income, etc. amounted to DKK 1,756m in the first nine months of 2022, i.e. close to an unchanged level relative to the same period of 2021. Mortgage loans stated at nominal value rose by 1% compared to the first nine months of 2021, which was partially offset by a slightly lower margin.

Other net interest income amounted to DKK 51m in the first nine months against DKK 11m in the first nine months of 2021. The increase was caused by a higher interest yield on excess liquidity.

Net fee and commission income amounted to DKK -463m against DKK -534m in the first nine months of 2021. Distribution fees at DKK 884m were close to an unchanged level compared to DKK 883m the previous year. Exclusive of distribution fees, net fee and commission income rose by 21% due to higher remortgaging activity.

Value adjustments amounted to DKK -86m in the first nine months of 2022 against DKK 73m in the same period last year. The decline can be attributed to falling bond prices, etc. in the first nine months of 2022 as well as a capital gain relating to the sale of a shareholding in the first nine months of 2021.

Core expenses

In the first nine months of 2022, core expenses amounted to DKK 295m against DKK 290m in the same period of the preceding year. The increase was due to the fact that Jyske Realkredit insourced the development of IT systems relating to mortgage operations from Jyske Bank in the second quarter of 2021.

Loan impairment charges

Loan impairment charges and provisions for guarantees amounted to an income of DKK 105m in the first nine months of 2022 against an expense of DKK 113m in the first nine months of 2021. The income can be attributed to falling arrears and rising collateral values. Moreover, the risk of failure to identify risks relating to the COVID-19 pandemic is on the decline. On the other hand, new impairment charges were recognized relating to the energy and inflation crisis.

Business volumes

Mortgage loans stated at nominal value rose by 1% to DKK 342.6 bn compared to the level at the end of 2021. The increase related to loans to corporate clients. Mortgage loans at fair value fell to DKK 304.5 bn from DKK 340.9 bn in the same period.

The decline can be attributed to falling prices of Danish mortgage bonds.

For further details about Jyske Realkredit, please see Jyske Realkredit's Interim Financial Report for the first nine months of 2022.

Q3 2022 compared to Q2 2022

In the third quarter of 2022, pre-tax profit amounted to DKK 326m against DKK 349m in the second quarter of 2022.

Core income increased to DKK 409m in the third quarter of 2022 from DKK 393m in the second quarter. The increase was caused primarily by higher value adjustments.

Administration margin income amounted to DKK 581m against DKK 587m in the preceding quarter. The decline can be attributed to lower loans to personal clients as well as a marginally lower average administration margin.

Other net interest income amounted to DKK 32m against DKK 21m in the second quarter of 2022. The increase can be attributed to the return on excess liquidity.

Net fee and commission income amounted to DKK -194m against DKK -148m. Exclusive of distribution fees paid, net fee and commission income rose to DKK 153m from DKK 114m. The increase was caused by seasonally higher refinancing activity.

Value adjustments amounted to DKK -10m against DKK -67m in the preceding quarter. The continued low level reflects the challenging financial markets.

Core expenses amounted to DKK 95m against DKK 100m in the preceding quarter.

Loan impairment charges amounted to an income of DKK 12m against an income of DKK 56m in the second quarter of 2022. The credit quality was still solid with a good underlying development.

Leasing activities

Summary of income statement (DKKm)

	Q1-Q3 2022	Q1-Q3 2021	Index 22/21	Q3 2022	Q2 2022	Q1 2022	Q4 2021	Q3 2021	FY 2021
Net interest income	346	345	100	106	116	124	116	117	461
Net fee and commission income	-15	-7	214	-1	-7	-7	-17	0	-24
Value adjustments	25	16	156	2	21	2	0	2	16
Other income	14	12	117	4	5	5	9	3	21
Income from operating lease (net)	283	184	154	98	105	80	72	81	256
Core income	653	550	119	209	240	204	180	203	730
Core expenses	132	129	102	42	47	43	43	43	172
Core profit before loan impairment charges	521	421	124	167	193	161	137	160	558
Loan impairment charges	34	-9	-	43	-11	2	1	-11	-8
Pre-tax profit	487	430	113	124	204	159	136	171	566

Summary of balance sheet, end of period (DKKbn)

Loans and advances	22.9	21.3	108	22.9	22.7	22.5	22.1	21.3	22.1
Total assets	25.6	23.9	107	25.6	25.1	24.9	24.7	23.9	24.7
Deposits	0.2	0.2	100	0.2	0.2	0.2	0.2	0.2	0.2

Profit

In the first nine months of 2022, pre-tax profit amounted to DKK 487m against DKK 430m in the first nine months of 2021. The positive development could primarily be attributed to favourable sales conditions in the market for used cars and a growing business volume.

Net interest income was close to being unchanged compared with the same period of 2021, as higher lending rates were offset by higher funding costs.

Net fee and commission income amounted to an expense of DKK 15m against an expense of DKK 7m in the first nine months of 2021. The increased expense can primarily be attributed to higher costs for distribution fees, etc.

In the first nine months of 2022, value adjustments rose to DKK 25m from DKK 16m in the same period in 2021.

In the first nine months of 2022, income from operating lease (net) rose to DKK 283m from DKK 184m in the first nine months of 2021 due to favourable sales conditions in the used car market.

In the first nine months of 2022, core expenses rose to DKK 132m from DKK 129m in the same period in 2021.

Loan impairment charges etc. amounted to an expense of DKK 34m against an income of DKK 9m in the same period of 2021. The increased level of loan impairment charges can be attributed to a higher management's estimate for impairment charges relating to the macroeconomic situation.

Business volumes

At the end of the third quarter of 2022, loans under leasing activities had increased by 5% to DKK 22.9 bn relative to the level at the end of 2021 despite challenged supply chains in several sub-segments.

Q3 2022 compared to Q2 2022

Pre-tax profit fell to DKK 124m in the third quarter of 2022 from DKK 204m in the preceding quarter, primarily caused by higher impairment charges as well as seasonally lower value adjustments.

Net interest income fell to DKK 106m from DKK 116m. The development can be attributed to rising funding costs as well as reclassification of a sub-portfolio from financial lease to operating lease.

In the third quarter, net fee and commission income amounted to DKK -1m.

Value adjustments saw a seasonal decline to DKK 2m from DKK 21m.

Income from operating lease (net) fell to DKK 98m from DKK 105m in the preceding quarter. The high level can be attributed to continuing good sales conditions in the used car market.

Core expenses fell to DKK 42m from DKK 47m, due to a broadly based decline.

Loan impairment charges and provisions for guarantees amounted to an expense of DKK 43m against an income of DKK 11m in the preceding quarter. The development can be attributed to higher management's estimate.

	DKKm	Q1-Q3 2022	Q1-Q3 2021	Jyske Bank Group Q3 2022	Q3 2021
	Income statement
5	Interest income calculated according to the effective interest method	2,640	2,528	880	869
5	Other interest income	4,722	4,121	1,706	1,358
6	Interest expenses	3,225	2,905	1,163	973
	Net interest income	4,137	3,744	1,423	1,254
7	Fees and commission income	2,220	1,988	729	686
7	Fees and commission expenses	372	325	131	108
	Net interest and fee income	5,985	5,407	2,021	1,832
8	Value adjustments	-518	790	-423	102
9	Other income	856	708	249	238
10	Employee and administrative expenses etc.	3,570	3,466	1,253	1,156
	Amortisation, depreciation and impairment charges	458	448	158	151
12	Loan impairment charges	-447	-73	-200	-36
	Pre-tax profit	2,742	3,064	636	901
11	Tax	548	673	133	195
	Net profit for the period	2,194	2,391	503	706

	Distributed to:
	Jyske Bank A/S shareholders	2,086	2,251	466	654
	Holders of additional tier 1 capital (AT1)	108	140	37	52
	Total	2,194	2,391	503	706

	Earnings per share for the period
	Earnings per share for the period, DKK Earnings per share for the period, DKK, diluted	31.87 31.87	31.55 31.55	7.25 7.25	9.29 9.29

	Statement of Comprehensive Income
	Net profit for the period	2,194	2,391	503	706
	Other comprehensive income:
	Items that cannot be recycled to the income statement:
	Actuarial losses and gains	80	0	80	0
	Tax on actuarial losses and gains	-21	0	-21	0
	Other comprehensive income after tax	59	0	59	0
	Comprehensive income for the period	2,253	2,391	562	706
	Distributed to:
	Jyske Bank A/S shareholders	2,145	2,251	525	654
	Holders of additional tier 1 capital (AT1)	108	140	37	52
	Total	2,253	2,391	562	706

Jyske Bank Group 30 Sept. 31 Dec. 30 Sept. DKKm 2022 2021 2021 Balance Sheet Assets Cash balance and demand deposits with central banks 60,914 30,685 48,110 Due from credit institutions and central banks 15,463 9,535 14,729 13,14 Loans at fair value 308,575 342,714 340,308 15 Loans and advances at amortised cost 157,922 142,500 142,028 Bonds at fair value 47,922 56,002 61,654 Bonds at amortised cost 38,447 26,953 24,430 Shares, etc. 2,315 2,708 2,533 Property, plant and equipment 4,251 4,303 4,281				Jyske Bank Group














	Deferred tax assets	282	0	0
Current tax assets 325 432 407
Assets held temporarily with a view to sale 71 80 123
16 Other assets 35,535 31,210 31,882
Total assets 672,022 647,122 670,485


Liabilities
Due to credit institutions and central banks 26,718 14,971 30,069
17 Deposits 162,073 134,212 136,168
18 Issued bonds at fair value 299,814 340,340 338,536
Issued bonds at amortised cost 87,735 73,124 75,980
Liabilities in disposal group with a view to sale 5 4 6 19 Other liabilities 49,125 39,341 44,522
20 Provisions 1,085 1,351 1,501
21 Subordinated debt 6,387 5,513 5,517
Liabilities, total 632,942 608,856 632,299
Equity
Share capital 690 726 726
Revaluation reserve 171 171 200
Retained profit 34,906 34,014 33,899
Jyske Bank A/S shareholders 35,767 34,911 34,825
Holders of additional tier 1 capital (AT1) 3,313 3,355 3,361
Total equity 39,080 38,266 38,186
Total equity and liabilities 672,022 647,122 670,485

DKKm

Statement of Changes in Equity

		Revaluation	Retained	Jyske Bank A/S	AT1	Total
	Share capital	reserve	profit	shareholders	capital*	equity
Equity on 1 January 2022	726	171	34,014	34,911	3,355	38,266
Net profit for the period	0	0	2,086	2,086	108	2,194
Other comprehensive income:
Actuarial losses and gains	0	0	80	80	0	80
Tax on other comprehensive income	0	0	-21	-21	0	-21
Other comprehensive income after tax	0	0	59	59	0	59
Comprehensive income for the period	0	0	2,145	2,145	108	2,253

Interest paid on additional tier 1 capital	0	0	0	0	-107	-107
Currency translation adjustment	0	0	43	43	-43	0
Reduction of share capital	-36	0	36	0	0	0
Acquisition of own shares	0	0	-2,903	-2,903	0	-2,903
Sale of own shares	0	0	1,571	1,571	0	1,571
Transactions with owners	-36	0	-1,253	-1,289	-150	-1,439

Equity on 30 September 2022	690	171	34,906	35,767	3,313	39,080

Equity on 01 January 2021	726	200	32,399	33,325	3,307	36,632
Net profit for the period	0	0	2,251	2,251	140	2,391
Other comprehensive income	0	0	0	0	0	0

Comprehensive income for the period	0	0	2,251	2,251	140	2,391

Redemption of hybrid core capital	0	0	0	0	-1,417	-1,417
Hybrid core capital issue	0	0	0	0	1,486	1,486
Transaction costs	0	0	-15	-15	0	-15
Interest paid on additional tier 1 capital	0	0	0	0	-140	-140
Currency translation adjustment	0	0	15	15	-15	0
Acquisition of own shares	0	0	-1,884	-1,884	0	-1,884
Sale of own shares	0	0	1,133	1,133	0	1,133
Transactions with owners	0	0	-751	-751	-86	-837

Equity on 30 September 2021	726	200	33,899	34,825	3,361	38,186

*Additional tier 1 capital (AT1) has no maturity. Payment of interest and repayment of principal are voluntary. Therefore, additional tier 1 capital is recognised as equity. In September 2016, Jyske Bank issued AT1 amounting to SEK 1.25bn and AT1 amounting to DKK 500m with the possibility of early redemption in September 2021 at the earliest. The interest rates applicable to the issues are STIBOR+5.80% and CIBOR+5.30%, respectively, up to September2021 when the issues are redeemed. 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 1 bn 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.

	30 Sept.	31 Dec.	30 Sept.
DKKm	2022	2021	2021
Capital Statement
Shareholders' equity	35,767	34,911	34,825
Share buy-back programme, non-utilised limit	0	-272	-1,000
Expected dividend, calculated as required by law	0	0	-158
Prudent valuation	-247	-285	-245
Insufficient coverage of non-performing loans and guarantees	-65	-63	-56
Other deductions	-153	-39	-70
Common equity tier 1 capital	35,302	34,252	33,296
Additional tier 1 capital (AT1) after reduction	3,285	3,329	3,334
Core capital	38,587	37,581	36,630
Subordinated loan capital after reduction	6,194	5,275	5,280
Capital base	44,781	42,856	41,910
Weighted risk exposure involving credit risk, etc.	167,006	163,154	159,829
Weighted risk exposure involving market risk	8,404	10,723	10,968
Weighted risk exposure involving operational risk	14,634	14,304	14,304
Total weighted risk exposure	190,044	188,181	185,101

Capital requirement, Pillar I	15,204	15,054	14,808
Capital ratio (%)	23.6	22.8	22.6
Tier 1 capital ratio (%)	20.3	20.0	19.8
Common equity tier 1 capital ratio (%)	18.6	18.2	18.0

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 2021 and jyskebank.com/investorrelations/capitalstructure, which shows Jyske Bank's quarterly determination of the individual solvency requirement.

Note		Jyske Bank Group


	Q1-Q3	Q1-Q3
DKKm	2022	2021
Summary of cash flow statement
Net profit for the period	2,194	2,391
Adjustment for non-cash operating items and change in working capital	34,998	16,693
Cash flows from operating activities	37,192	19,084
Acquisition and sale of property, plant and equipment	-360	-282
Dividend received	85	54
Cash flows from investment activities	-275	-228
Redemption of hybrid core capital	0	-1,417
Hybrid core capital issue	0	1,471
Interest paid on additional tier 1 capital	-107	-140
Acquisition of own shares	-2,903	-1,884
Sale of own shares	1,571	1,133
Additional subordinated debt	1,090	1,466
Redemption of subordinated debt	-11	-1,749
Repayment on lease commitment	-45	-49
Cash flows from financing activities	-405	-1,169
Cash flow for the period	36,512	17,687

Cash and cash equivalents, beginning of period	39,977	45,489
Foreign currency translation adjustment of cash at bank and in hand	-112	-337
Cash flow for the period, total	36,512	17,687
Cash and cash equivalents, end of period	76,377	62,839

Cash and cash equivalents, end of period, comprise:
Cash balance and demand deposits with central banks	60,914	48,110
Due from credit institutions and central banks	15,463	14,729
Cash and cash equivalents, end of period	76,377	62,839

1 Accounting policies

The Interim Financial Report for the period 1 January to 30 September 2022 for the Jyske Bank Group was prepared in accordance with IAS 34 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.

A number of minor changes to accounting standards took effect on 1 January 2022, including changes to IFRS 3 References to framework, changes to IAS 16 Income from non-current assets under construction, changes to IAS 37 Expenses relating to the fulfilment of an onerous contract, and Improvements of IFRSs (2018-2020). 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 2021, including the full description of accounting policies.

2 Material accounting estimates

Management's estimates Measurement of the carrying value of certain assets and liabilities requires the management's estimate 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 and provisions already made, cf. the detailed statement in note 67 in the Annual Report 2021. 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 2021, however, with reference to the below mentioning of changes to additions estimated by management for loan impairment charges and provisions for guarantees.

The total additions for loan impairment charges and provisions for guarantees estimated by management amounted to DKK 1,640m against DKK 1,770m at the end of 2021 and are distributed as stated in the below table.

DKKm	30 Sept. 2022	31 Dec. 2021
Corporate Clients
Macroeconomic risks	1,008	954
Process-related risks	55	40
Value of agricultural assets and pork prices	0	90
Corporate clients, total	1,063	1,084

Personal clients
Macroeconomic risks	442	276
Process-related risks	135	320
Value of foreign properties (Key-Plan)	0	90
Personal clients, total	577	686

Management's estimates, total	1,640	1,770

Additions estimated by management for macroeconomic risks cover expected losses relating to COVID-19 and the war in the Ukraine, including negative economic effects from shortage and rising prices of commodities as well as rising interest rates and energy prices, etc.

Additions estimated by management for process-related risks cover expected losses relating to limited financial insight, expiry of instalment-free periods and breach of contract/amounts overdrawn.

Jyske Bank's Annual Report 2021, note 14, describes in detail the additions estimated by management for loan impairment charges and provisions for guarantees.

Note						Jyske Bank Group

	DKKm	Q3 2022	Q2 2022	Q1 2022	Q4 2021	Q3 2021
3	Key figures and ratios, five quarters
	Summary of Income Statement
	Net interest income	1,423	1,389	1,325	1,298	1,254
	Net fee and commission income	598	567	683	645	578
	Value adjustments	-423	-104	9	170	102
	Other income	249	298	309	223	238
	Income	1,847	2,150	2,326	2,336	2,172
	Expenses	1,411	1,324	1,293	1,518	1,307
	Profit or loss before loan impairment charges	436	826	1,033	818	865
	Loan impairment charges	-200	-192	-55	-145	-36
	Pre-tax profit	636	1,018	1,088	963	901
	Tax	133	178	237	178	195
	Net profit for the period	503	840	851	785	706

	Financial ratios
	Pre-tax profit, per share (DKK)*	9.3	15.2	15.7	13.5	12.1
	Earnings per share for the period (DKK)*	7.3	12.4	12.1	10.9	9.3
	Earnings per share for the period (diluted) (DKK)*	7.3	12.4	12.1	10.9	9.3
	Core profit per share (DKK)*	12.2	15.0	15.6	13.8	12.4
	Share price at end of period (DKK)	398	347	369	337	277
	Book value per share (DKK)*	557	548	532	515	498
	Price/book value per share (DKK)*	0.7	0.6	0.7	0.7	0.6
	Outstanding shares in circulation ('000)	64,251	64,258	65,836	67,840	69,954
	Average number of shares in circulation ('000)	64,260	64,835	67,154	68,908	70,364
	Capital ratio (%)	23.6	22.2	21.6	22.8	22.6
	Tier 1 capital ratio (%)	20.3	19.6	18.9	20.0	19.8
	Common equity tier 1 capital ratio (%)	18.6	17.9	17.2	18.2	18.0
	Pre-tax profit as a pct. of average equity*	1.7	2.8	3.0	2.7	2.5
	Profit for the period as a pct. of average equity*	1.3	2.3	2.3	2.1	1.9
	Income/cost ratio (%) inclusive of impairment charges	1.5	1.9	1.9	1.7	1.7
	Interest-rate risk (%)	1.9	1.9	2.5	1.3	0.8
	Currency risk (%)	0.0	0.0	0.0	0.0	0.1
	Accumulated impairment ratio (%)	1.0	1.0	1.0	1.0	1.1
	Impairment ratio for the period (%)	0.0	0.0	0.0	0.0	0.0
	No. of full-time employees at end-period	3,284	3,237	3,252	3,257	3,283
	Average number of full-time employees in the period	3,261	3,245	3,254	3,270	3,282

The financial ratios are based on the definitions and guidelines laid down by the Danish Financial Supervisory Authority, cf. note 68 to the consolidated financial statements for 2021.

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

Segmental financial statements	Banking activities	Mortgage activities	Leasing activities	The Jyske Bank Group*
Q1-Q3 2022
Net interest income	1,930	1,807	346	4,083

Net fee and commission income	2,326	-463	-15	1,848
Value adjustments	-323	-86	25	-384
Other income Income from operating lease (net)	181 0	0 0	14 283	195 283

Core income	4,114	1,258	653	6,025
Core expenses	3,123	295	132	3,550
Core profit before loan impairment charges	991	963	521	2,475
Loan impairment charges	-376	-105	34	-447
Core profit	1,367	1,068	487	2,922
Investment portfolio earnings	-102	0	0	-102
Profit before one-off items	1,265	1,068	487	2,820
One-off items relating to Handelsbanken DK	-78	0	0	-78
Pre-tax profit	1,187	1,068	487	2,742
Loans and advances	139,054	304,520	22,923	466,497
- of which mortgage loans	0	304,520	0	304,520
- of which bank loans	92,230	0	22,923	115,153
- of which repo loans	46,824	0	0	46,824
Total assets	313,733	332,720	25,569	672,022
Deposits	161,851	0	222	162,073
- of which bank deposits	148,938	0	222	149,160
- of which repo and triparty deposits	12,913	0	0	12,913
Issued bonds	82,341	305,208	0	387,549
Q1-Q3 2021
Net interest income	1,587	1,764	345	3,696
Net fee and commission income	2,204	-534	-7	1,663
Value adjustments	644	73	16	733
Other income	132	5	12	149
Income from operating lease (net)	0	0	184	184
Core income	4,567	1,308	550	6,425
Core expenses	3,097	290	129	3,516
Core profit before loan impairment charges	1,470	1,018	421	2,909
Loan impairment charges	-177	113	-9	-73
Core profit	1,647	905	430	2,982
Investment portfolio earnings	82	0	0	82
Profit before one-off items	1,729	905	430	3,064
One-off items relating to Handelsbanken DK	0	0	0	0
Pre-tax profit	1,729	905	430	3,064

Loans and advances	122,495	338,492	21,349	482,336
- of which mortgage loans	0	338,492	0	338,492
- of which bank loans	75,836	0	21,349	97,185
- of which repo loans	46,659	0	0	46,659
Total assets	278,795	367,824	23,866	670,485
Deposits	135,933	0	235	136,168
- of which bank deposits	122,185	0	235	122,420
- of which repo and triparty deposits	13,748	0	0	13,748
Issued bonds	71,229	343,287	0	414,516

* The relationship between income statement items under 'The Jyske Bank Group' (key financial data) and the income statement page 18 appears from the next page.

DKKm

4 Segmental financial statements, cont.

Core profit and investment portfolio earnings

The pre-tax profit for the first nine months of 2022 broken down by core earnings and investment portfolio earnings as well as one-off costs is stated below:

Breakdown of the net profit or loss for the period	Q1-Q3 2022			Q1-Q3 2021
DKKm	Core profit	Inv. portfolio earnings	One-off items	Reclas sification	Total	Core profit	Inv. portfolio earnings	Reclas sification	Total
Net interest income	4,083	47	0	7	4,137	3,696	52	-5	3,743
Net fee and commission income	1,848	0	0	0	1,848	1,663	0	0	1,663
Value adjustments	-384	-127	0	-7	-518	733	52	5	790
Other income	195	0	0	0	195	149	0	4	153
Income from operating lease (net)	283	0	0	378	661	184	0	371	555
Income	6,025	-80	0	378	6,323	6,425	104	375	6,904
Expenses	3,550	22	78	378	4,028	3,516	22	375	3,913
Profit before loan impairment charges	2,475	-102	-78	0	2,295	2,909	82	0	2,991
Loan impairment charges	-447	0	0	0	-447	-73	0	0	-73
Pre-tax profit	2,922	-102	-78	0	2,742	2,982	82	0	3,064

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 period 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 and non-recurring items. 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.

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 18.

Reclassification relates to the following:

Expenses of DKK 7m (first nine months nine months of 2021: income of DKK 5m) from value adjustments relating to the balance principle at Jyske Realkredit were reclassified from value adjustments to interest income.
Income of DKK 0m (first nine months of 2021: income of 4m) from external sales was reclassified from income to offsetting against expenses.
Depreciation and amortisation of DKK 378m (first nine months nine months of 2021: DKK 371m) 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 (AT1) is recognised as a liability. In the numerator, the profit is less interest expenses for AT1 capital of DKK 108m (Q1-Q3 2021: DKK 140m) and the denominator is calculated as equity exclusive of AT1 capital of DKK 3,313m (Q1-Q3 2021: DKK 3,361m).

		Q1-Q3	Q1-Q3
	DKKm	2022	2021
5	Interest income
	Due from credit institutions and central banks	-46	-46
	Loans and advances	4,241	3,761
	Administration margin	1,525	1,458
	Bonds	445	334
	Derivatives, total	487	178
	Of which currency contracts	403	221
	Of which interest-rate contracts	84	-43
	Total	6,652	5,685
	Interest on own mortgage bonds, set off against interest on issued bonds	143	104
	Total after offsetting of negative interest	6,509	5,581
	Negative interest income set off against interest income	181	306
	Negative interest expenses set off against interest expenses	672	762
	Total before offsetting of negative interest income	7,362	6,649
	Of which Interest income calculated according to the effective interest method	2,640	2,528

Negative interest income amounted to DKK 181m (Q1-Q3 2021: DKK 306m) 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	42	82
Deposits	-404	-407
Issued bonds	2,754	2,208
Subordinated debt	92	86
Other	31	-28
Total	2,515	1,941
Interest on own mortgage bonds, set off against interest on issued bonds	143	104
Total after offsetting of negative interest	2,372	1,837
Negative interest expenses set off against interest expenses	672	762
Negative interest income set off against interest income	181	306
Total before offsetting of negative interest income	3,225	2,905

Negative interest expenses amounted to DKK 672m (Q1-Q3 2021: DKK 762m) 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.

Fees and commission income
Securities trading and custody services	1,034	981
Money transfers and card payments	213	192
Loan application fees	406	345
Guarantee commission	79	82
Other fees and commissions	488	388
Fees and commissions received, total	2,220	1,988
Fees and commissions paid, total	372	325
Fee and commission income, net	1,848	1,663

Fee income for the period, amounting to DKK 2,220m less fees and commission paid for the period amounting to DKK 372m, constitutes the net fee and commission income for the period in the amount of DKK 1,848m (Q1-Q3 2021: DKK 1,663m). These are recognised in the segmental financial statements for the bank's three business areas, cf. note 4.

	DKKm	Q1-Q3 2022	Q1-Q3 2021
8	Value adjustments
	Loans at fair value	-40,090	-10,399
	Bonds	-3,103	-426
	Shares, etc.	-87	182
	Currency	89	146
	Currency, interest-rate, share, commodity and other contracts as well as other derivatives	394	445
	Issued bonds	42,059	10,789
	Other assets and liabilities	220	53
	Total	-518	790

9 Other income

Income on real property	31	33
Profit on the sale of property, plant and equipment	6	39
Income from operating lease¹	661	555
Dividends, etc.	85	54
Profit/loss on investments in associates	44	-3
Other income	29	30
Total	856	708

¹) Expenses relating to operating lease affected the item Amortisation, depreciation and impairment charges in the amount of DKK 378m in the first nine months of 2022 against DKK 371m in the first nine months of 2021.

10 Employee and administrative expenses

Employee expenses
Wages and salaries, etc.	1,691	1,683
Pensions	227	219
Social security	250	260
Total	2,168	2,162
Salaries and remuneration to management bodies
Executive Board	26	26
Supervisory Board	5	5
Shareholders' Representatives	1	2
Total	32	33
Other administrative expenses
IT	972	976
Other operating expenses	189	104
Other administrative expenses	209	191
Total	1,370	1,271

11 Effective tax rate

Effective tax rate	20.0	22.0
Non-taxable income and non-deductible expenses, etc.	-2.0	0.0
Corporation tax rate in Denmark	22.0	22.0

Employee and administrative expenses, total 3,570 3,466

		Jyske Bank Group

DKKm	Q1-Q3 2022	Q1-Q3 2021
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	-251	-118
Impairment charges on balances due from credit institutions in the period	-4	-4
Provisions for loan commitments and unutilised credit lines in the period	-17	103
Recognised as a loss, not covered by loan impairment charges and provisions	66	76
Recoveries	-133	-100
Recognised discount for acquired loans	-108	-30
Loan impairment charges and provisions for guarantees recognised in the income statement	-447	-73
Balance of loan impairment charges and provisions for guarantees
Balance of loan impairment charges and provisions, beginning of period	5,443	5,761
Loan impairment charges and provisions for the period	-268	-15
Recognised as a loss, covered by loan impairment charges and provisions	-292	-119
Other movements	38	41
Balance of loan impairment charges and provisions, end of period	4,921	5,668
Loan impairment charges and provisions for guarantees at amortised cost	2,876	3,159
Loan impairment charges at fair value	1,582	1,726
Provisions for guarantees	197	376
Provisions for credit commitments and unutilised credit lines	266	407
Balance of loan impairment charges and provisions, end of period	4,921	5,668

DKKm

12 Loan impairment charges and provisions for guarantees, cont.

Balance of loan impairment charges and provisions for guarantees by stage –

total
	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2022	1,081	923	3,439	5,443
Transfer of impairment charges at beginning of period to stage 1	334	-298	-36	0
Transfer of impairment charges at beginning of period to stage 2	-60	128	-68	0
Transfer of impairment charges at beginning of period to stage 3	-10	-60	70	0
Impairment charges on new loans, etc.	309	157	164	630
Impairment charges on discontinued loans and provisions for guarantees	-259	-208	-437	-904
Effect from recalculation	-175	466	-247	44
Previously recognized as impairment charges, now final loss	0	-1	-291	-292
Balance on 30 September 2022	1,220	1,107	2,594	4,921

Balance of loan impairment charges and provisions for guarantees by stage –	Stage 1	Stage 2	Stage 3	Total
total Balance, beginning of 2021	973	1,401	3,387	5,761

Transfer of impairment charges at beginning of period to stage 1	288	-265	-23	0
Transfer of impairment charges at beginning of period to stage 2 Transfer of impairment charges at beginning of period to stage 3	-91 -2	224 -255	-133 257	0 0

Impairment charges on new loans, etc.	354	136	167	657
Impairment charges on discontinued loans and provisions for guarantees	-181	-196	-402	-779
Effect from recalculation Previously recognized as impairment charges, now final loss	-231 0	55 -2	324 -117	148 -119

Balance of impairment charges by stage - loans at amortised cost

	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2022	575	407	2,138	3,120
Transfer of impairment charges at beginning of period to stage 1	185	-157	-28	0
Transfer of impairment charges at beginning of period to stage 2	-45	81	-36	0
Transfer of impairment charges at beginning of period to stage 3	-8	-26	34	0
Impairment charges on new loans, etc.	125	65	53	243
Impairment charges on discontinued loans and provisions for guarantees	-119	-59	-191	-369
Effect from recalculation	-288	436	-140	8
Previously recognized as impairment charges, now final loss	0	0	-126	-126
Balance on 30 September 2022	425	747	1,704	2,876

Balance of impairment charges by stage - loans at amortised cost
	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2021	527	646	2,390	3,563
Transfer of impairment charges at beginning of period to stage 1	98	-85	-13	0
Transfer of impairment charges at beginning of period to stage 2	-62	152	-90	0
Transfer of impairment charges at beginning of period to stage 3	-2	-181	183	0
Impairment charges on new loans, etc.	163	54	84	301
Impairment charges on discontinued loans and provisions for guarantees	-80	-107	-284	-471
Effect from recalculation	-86	-3	-43	-132
Previously recognized as impairment charges, now final loss	0	0	-102	-102
Balance on 30 September 2021	558	476	2,125	3,159

DKKm

12 Loan impairment charges and provisions for guarantees, cont.

Balance of impairment charges by stage – loans at fair value

	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2022	335	373	977	1,685
Transfer of impairment charges at beginning of period to stage 1	80	-78	-2	0
Transfer of impairment charges at beginning of period to stage 2	-11	35	-24	0
Transfer of impairment charges at beginning of period to stage 3	-2	-30	32	0
Impairment charges on new loans, etc.	137	62	35	234
Impairment charges on discontinued loans and provisions for guarantees	-55	-123	-160	-338
Effect from recalculation	202	44	-188	58
Previously recognized as impairment charges, now final loss	0	-1	-56	-57
Balance on 30 September 2022	686	282	614	1,582

Balance of impairment charges by stage – loans at fair value

	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2021	303	618	709	1,630
Transfer of impairment charges at beginning of period to stage 1	167	-158	-9	0
Transfer of impairment charges at beginning of period to stage 2	-12	43	-31	0
Transfer of impairment charges at beginning of period to stage 3	-1	-43	44	0
Impairment charges on new loans, etc.	88	59	35	182
Impairment charges on discontinued loans and provisions for guarantees	-40	-72	-71	-183
Effect from recalculation	-127	39	200	112
Previously recognized as impairment charges, now final loss	0	-1	-14	-15
Balance on 30 September 2021	378	485	863	1,726

Balance of provisions by stage - guarantees and loan commitments, etc.

	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2022	175	143	320	638
Transfer of impairment charges at beginning of period to stage 1	68	-63	-5	0
Transfer of impairment charges at beginning of period to stage 2	-4	12	-8	0
Transfer of impairment charges at beginning of period to stage 3	-1	-3	4	0
Impairment charges on new loans, etc.	47	29	75	151
Impairment charges on discontinued loans and provisions for guarantees	-84	-26	-83	-193
Effect from recalculation	-90	-15	81	-24
Previously recognized as impairment charges, now final loss	0	0	-109	-109
Balance on 30 September 2022	111	77	275	463

Balance of provisions by stage - guarantees and loan commitments, etc.
	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2021	143	139	286	568
Transfer of impairment charges at beginning of period to stage 1	23	-22	-1	0
Transfer of impairment charges at beginning of period to stage 2	-17	30	-13	0
Transfer of impairment charges at beginning of period to stage 3	0	-31	31	0
Impairment charges on new loans, etc.	103	23	48	174
Impairment charges on discontinued loans and provisions for guarantees	-61	-17	-45	-123
Effect from recalculation	-19	19	165	165
Previously recognized as impairment charges, now final loss	0	0	-1	-1
Balance on 30 September 2021	172	141	470	783

DKKm

12 Loan impairment charges and provisions for guarantees, cont.

Gross loans, advances and guarantees by stage

Stage 1 Stage 2 Stage 3 Total Gross loans, advances and guarantees, 1 January 2022 471,338 24,447 8,315 504,100

Transfer of loans, advances and guarantees to stage 1 10,089 -9,980 -109 0 Transfer of loans, advances and guarantees to stage 2 -7,540 7,855 -315 0 Transfer of loans, advances and guarantees to stage 3 -1,660 -728 2,388 ⁰

Other movements -17,536 -3,605 -1,319 -22,460 Gross loans, advances and guarantees, 30 September 2022 454,691 17,989 8,960 481,640 Loan impairment charges and provisions for guarantees, total 1,145 1,065 2,445 4,655 Net loans, advances and guarantees, 30 September 2022 453,546 16,924 6,515 476,985

	Gross loans, advances and guarantees by stage

Gross loans, advances and guarantees by stage
	Stage 1	Stage 2	Stage 3	Total
Gross loans, advances and guarantees, 1 January 2021	480,368	19,726	8,215	508,309
Transfer of loans, advances and guarantees to stage 1	5,581	-5,463	-118	0
Transfer of loans, advances and guarantees to stage 2	-12,766	13,336	-570	0
Transfer of loans, advances and guarantees to stage 3	-701	-1,866	2,567	0
Other movements	-1,144	-1,286	-1,779	-4,209
Gross loans, advances and guarantees, 31 December 2021	471,338	24,447	8,315	504,100
Loan impairment charges and provisions for guarantees, total	961	826	3,376	5,163
Net loans, advances and guarantees, 31 December 2021	470,377	23,621	4,939	498,937

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

		30 September 2022			31 Dec. 2021
Performing	PD band (%)	Stage 1	Stage 2	Stage 3	Total	Total
1	0.00 - 0.10	66,230	164	0	66,394	54,379
2	0.10 - 0.15	17,942	33	0	17,975	16,860
3	0.15 - 0.22	34,075	93	0	34,168	34,183
4	0.22 - 0.33	30,479	60	0	30,539	30,402
5	0.33 - 0.48	78,492	245	0	78,737	109,129
STY Ratings 1 – 5		227,218	595	0	227,813	244,953
6	0.48 - 0.70	78,428	468	0	78,896	81,135
7	0.70 - 1.02	61,174	818	0	61,992	61,177
8	1.02 - 1.48	39,693	487	0	40,180	41,175
9	1.48 - 2.15	20,403	583	0	20,986	28,599
10	2.15 - 3.13	12,499	1,858	0	14,357	12,839
11	3.13 - 4.59	5,630	1,408	0	7,038	7,461
STY Ratings 6 – 11		217,827	5,622	0	223,449	232,386
12	4.59 - 6.79	3,852	2,476	0	6,328	5,758
13	6.79 - 10.21	1,946	2,553	0	4,499	4,621
14	10.21 - 25.0	626	5,601	0	6,227	5,938
STY Ratings 12-14		6,424	10,630	0	17,054	16,317
Other		2,865	500	0	3,365	1,745
Non-performing loans		357	642	8,960	9,959	8,699
Total		454,691	17,989	8,960	481,640	504,100

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

		30 September 2022			31 Dec. 2021
Performing	PD band (%)	Stage 1	Stage 2	Stage 3	Total	Total
1	0.00 - 0.10	81	0	0	81	33
2	0.10 - 0.15	25	1	0	26	23
3	0.15 - 0.22	57	1	0	58	64
4	0.22 - 0.33	58	1	0	59	75
5	0.33 - 0.48	215	5	0	220	156
STY Ratings 1- 5		436	8	0	444	351
6	0.48 - 0.70	130	8	0	138	129
7	0.70 - 1.02	154	11	0	165	135
8	1.02 - 1.48	106	9	0	115	145
9	1.48 - 2.15	94	9	0	103	162
10	2.15 - 3.13	66	74	0	140	107
11	3.13 - 4.59	41	41	0	82	102
STY Ratings 6 – 11		591	152	0	743	780
12	4.59 - 6.79	43	53	0	96	111
13	6.79 - 10.21	28	126	0	154	139
14	10.21 - 25.0	13	638	0	651	370
STY Ratings 12-14		84	817	0	901	620
Other		24	45	0	69	16
Non-performing loans		10	43	2,445	2,498	3,396
Total		1,145	1,065	2,445	4,655	5,163

DKKm

12 Loan impairment charges and provisions for guarantees, cont.

Loan commitments and unutilised credit facilities by stage and internal rating

		30 September 2022			31 Dec. 2021
Performing	PD band (%)	Stage 1	Stage 2	Stage 3	Total	Total
1	0.00 - 0.10	12,693	0	0	12,693	11,019
2	0.10 - 0.15	5,931	3	0	5,934	7,317
3	0.15 - 0.22	8,672	50	0	8,722	11,043
4	0.22 - 0.33	6,884	24	0	6,908	10,395
5	0.33 - 0.48	5,110	51	0	5,161	6,978
STY Ratings 1 – 5		39,290	128	0	39,418	46,752
6	0.48 - 0.70	11,935	36	0	11,971	11,807
7	0.70 - 1.02	5,314	143	0	5,457	5,677
8	1.02 - 1.48	6,972	30	0	7,002	8,024
9	1.48 - 2.15	1,602	51	0	1,653	2,707
10	2.15 - 3.13	2,616	130	0	2,746	2,008
11	3.13 - 4.59	476	34	0	510	478
STY Ratings 6 – 11		28,915	424	0	29,339	30,701
12	4.59 - 6.79	582	100	0	682	720
13	6.79 - 10.21	137	252	0	389	106
14	10.21 - 25.0	462	418	0	880	965
STY Ratings 12-14		1,181	770	0	1,951	1,791
Other		827	308	0	1,135	1,007
Non-performing loans		7	4	604	615	402
Total		70,220	1,634	604	72,458	80,653

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

		30 September 2022			31 Dec. 2021
Performing	PD band (%)	Stage 1	Stage 2	Stage 3	Total	Total
1	0.00 - 0.10	3	0	0	3	1
2	0.10 - 0.15	5	1	0	6	3
3	0.15 - 0.22	7	0	0	7	13
4	0.22 - 0.33	6	0	0	6	17
5	0.33 - 0.48	7	1	0	8	15
STY Ratings 1 – 5		28	2	0	30	49
6	0.48 - 0.70	14	0	0	14	20
7	0.70 - 1.02	10	1	0	11	19
8	1.02 - 1.48	8	0	0	8	17
9	1.48 - 2.15	3	0	0	3	20
10	2.15 - 3.13	4	3	0	7	9
11	3.13 - 4.59	1	0	0	1	10
STY Ratings 6 – 11		40	4	0	44	95
12	4.59 - 6.79	1	1	0	2	4
13	6.79 - 10.21	1	6	0	7	3
14	10.21 - 25.0	0	11	0	11	56
STY Ratings 12-14		2	18	0	20	63
Other		5	16	0	21	7
Non-performing loans		0	0	151	151	66
Total		75	40	151	266	280

DKKm	30 Sept. 2022	31 Dec. 2021	30 Sept. 2021

Loans at fair value
Mortgage loans, nominal value	342,608	338,938	338,218
Adjustment for interest-rate risk, etc.	-36,970	3,223	1,560
Adjustment for credit risk Mortgage loans at fair value, total	-1,445 304,193	-1,613 340,548	-1,671 338,107
Arrears and outlays, total	42	72	60

Other loans and advances	4,340	2,094	2,141
Loans and advances at fair value, total	308,575	342,714	340,308

Loans and advances at fair value broken down by property category Owner-occupied homes	141,278	161,070	160,550
Vacation homes	7,528	8,386	8,303
Subsidised housing (rental housing)	44,767	52,141	51,966
Cooperative housing	10,782	14,163	13,778
Private rental properties (rental housing)	60,801	61,890	60,432
Industrial properties	2,826	2,729	2,699
Office and retail properties	33,347	33,949	35,020
Agricultural properties	157	148	142
Properties for social, cultural and educational purposes	7,043	8,181	7,330
Other properties	46	57	88
Total	308,575	342,714	340,308
Loans and advances at amortised cost and guarantees broken down by sector Public authorities	12,087	12,383	9,432
Agriculture, hunting, forestry, fishing	11,831	7,670	7,592
Manufacturing, mining, etc.	12,370	8,860	9,566
Energy supply	6,711	9,411	5,364
Building and construction	4,680	3,858	3,554
Commerce	11,041	10,112	9,853
Transport, hotels and restaurants	4,611	5,733	5,724
Information and communication	2,499	1,019	1,122
Finance and insurance	50,096	40,456	46,282
Real property	13,948	14,358	14,072
Other sectors	10,349	9,036	8,352
Corporates, total	128,136	110,513	111,481
Personal clients, total	28,187	33,327	34,245
Total	168,410	156,223	155,158

DKKm	30 Sept. 2022	31 Dec. 2021	30 Sept. 2021
16 Other assets
Positive fair value of derivatives	30,270	25,046	25,942
Assets in pooled deposits	3,523	4,303	3,979
Interest and commission receivable	414	235	276
Investments in associates and joint ventures	258	227	222
Prepayments	162	147	360
Investment properties	28	28	28
Other assets	880	1,224	1,075
Total	35,535	31,210	31,882
Netting
Positive fair value of derivatives, gross	67,139	36,893	37,471
Netting of positive and negative fair value	36,869	11,847	11,529
Total	30,270	25,046	25,942

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	121,522 819 31,498 4,703 3,531 162,073	108,885 1,136 15,210 4,644 4,337 134,212	108,341 1,229 17,717 4,677 4,204 136,168
18	Issued bonds at fair value Issued bonds at fair value, nominal value Adjustment to fair value Own mortgage bonds offset, fair value Total	376,780 -39,436 -37,530 299,814	352,080 3,773 -15,513 340,340	368,537 2,393 -32,394 338,536
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	6,495 33,440 1,665 142 338 7,045 49,125	5,507 25,815 1,328 151 385 6,155 39,341	8,897 26,571 1,448 151 325 7,130 44,522
	Netting Negative fair value of derivatives, gross Netting of positive and negative fair value Total	70,309 36,869 33,440	37,662 11,847 25,815	38,100 11,529 26,571

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

	Other provisions Total	97 1,085	97 1,351	77 1,501
	Provisions for deferred tax	0	22	12
	Provisions for losses on loan commitments and unutilised credit lines	266	280	407
	Provisions for guarantees	197	358	376
	Provisions for pensions and similar liabilities	525	594	629
20	Provisions
	DKKm	30 Sept. 2022	31 Dec. 2021	30 Sept. 2021

21 Subordinated debt

	Supplementary capital:
	Var. % bond loan NOK 1,000m 24.03.2031	682	746	731
	Var. % bond loan SEK 1,000m 24.03.2031	703	726	732
	1.25% bond loan EUR 200m 28.01.2031	1,487	1,487	1,487
	2.25 % bond loan EUR 300m 05.04.2029	2,231	2,231	2,231
	6.73% bond loan EUR 6m 2023-2026	45	56	56
	Var. % bond loan EUR 10m 13.02.2023	74	74	74
	5.65% bond loan EUR 10m 27.03.2023	74	74	74
	5.67% bond loan EUR 10m 31.07.2023	74	74	74
	Var. % bond loan SEK 600m 31.8.2032	409	0	0
	Var. % bond loan NOK 400m 31.8.2032	281	0	0
	Var. % bond loan DKK 400m 31.8.2032	400	0	0
	Subordinated debt, nominal	6,460	5,468	5,459
	Hedging of interest-rate risk, fair value	-73	45	58
	Total	6,387	5,513	5,517
	Subordinated debt included in the capital base	6,194	5,275	5,280
22	Contingent liabilities
	Guarantees, etc.	10,488	13,723	13,130
	Other contingent liabilities, etc.	72,492	80,728	71,173
	Total	82,980	94,451	84,303

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.

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 3.2 bn.

Jyske Bank is a management company under Danish joint taxation. Therefore, according to the provisions of the Danish Company Taxation, Jyske Bank is liable as of the accounting year 2013 for corporation tax, etc. for the jointly taxed companies and as of 1 July 2012 for any liabilities to withhold tax on interest and dividends for the jointly taxed companies.

23 Shareholders

On 30 September 2022, BRFholding a/s, Kgs. Lyngby, Denmark held 26.17% 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.

On 30 September 2022, Jyske Bank held 6.88% of the share capital.

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 2021 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 10,718m (end of 2021: DKK 10,862m).

In addition, in connection with CSA agreements, the Jyske Bank Group has provided cash collateral of DKK 14,627m (end of 2021: DKK 7,326m) and bonds worth DKK 2,361m (end of 2021: DKK 440m).

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 16,443m (end of 2021: DKK 11,103m).

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 (the 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.

Jyske Bank / Q1-Q3 2022 / Notes / Page 38

26 Notes on fair value, cont.

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 and advances 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.

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 was 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.

26 Notes on fair value, cont.

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 the third quarter of 2022, CVA and DVA amounted, on an accumulated basis, to net DKK 1m, which accumulated amount was recognised as an expense under value adjustments, against an accumulated amount of DKK 139m at the end of 2021.

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 862m at the end of the third quarter of 2022 against a total non-recognised unrealised gain of DKK 14m at the end of 2021.

DKKm	30 Sept. 2022		31 Dec. 2021
	Recognised		Recognised
	value	Fair value	value	Fair value
FINANCIAL ASSETS
Cash balance and demand deposits with central banks	60,914	60,914	30,685	30,685
Due from credit institutions and central banks	15,463	15,459	9,535	9,532
Loans at fair value	308,575	308,575	342,714	342,714
Loans and advances at amortised cost	157,922	157,144	142,500	142,456
Bonds at fair value	47,922	47,922	56,002	56,002
Bonds at amortised cost	38,447	36,354	26,953	27,088
Shares, etc.	2,315	2,315	2,708	2,708
Assets in pooled deposits	3,523	3,523	4,303	4,303
Derivatives	30,270	30,270	25,046	25,046
Total	665,351	662,476	640,446	640,534

FINANCIAL LIABILITIES
Due to credit institutions and central banks	26,718	26,568	14,971	14,967
Deposits	158,542	158,512	129,875	129,875
Pooled deposits	3,531	3,531	4,337	4,337
Issued bonds at fair value	299,814	299,814	340,340	340,340
Issued bonds at amortised cost	87,736	86,366	73,124	73,114
Subordinated debt	6,387	5,924	5,513	5,601
Set-off entry of negative bond holdings	6,495	6,495	5,507	5,507
Derivatives	33,440	33,440	25,815	25,815
Total	622,663	620,650	599,482	599,556

DKKm

28 The fair value hierarchy

30 September 2022

			Non
	Quoted	Observable	observable	Fair value,	Recognised
Financial assets	prices	prices	prices	total	value
Loans at fair value	0	308,575	0	308,575	308,575
Bonds at fair value	42,794	5,128	0	47,922	47,922
Shares, etc.	651	558	1,106	2,315	2,315
Assets in pooled deposits	199	3,324	0	3,523	3,523
Derivatives	1,760	28,510	0	30,270	30,267
Total	45,404	346,095	1,106	392,605	392,602
Financial liabilities
Pooled deposits	0	3,531	0	3,531	3,531
Issued bonds at fair value	245,047	54,767	0	299,814	299,813
Set-off entry of negative bond holdings	6,167	328	0	6,495	6,495
Derivatives	1,411	32,029	0	33,440	33,438
Total	252,625	90,655	0	343,280	343,277

31 December 2021
Financial assets
Loans at fair value	0	342,714	0	342,714	342,714
Bonds at fair value	46,848	9,154	0	56,002	56,002
Shares, etc.	828	599	1,281	2,708	2,708
Assets in pooled deposits	314	3,989	0	4,303	4,303
Derivatives	677	24,369	0	25,046	25,046
Total	48,667	380,825	1,281	430,773	430,773
Financial liabilities
Pooled deposits	0	4,337	0	4,337	4,337
Issued bonds at fair value	256,799	83,541	0	340,340	340,340
Set-off entry of negative bond holdings	5,065	442	0	5,507	5,507
Derivatives	470	25,345	0	25,815	25,815
Total	262,334	113,665	0	375,999	375,999

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 prices. This did not result in material transfers in 2022 and 2021.

NON-OBSERVABLE PRICES	Q1-Q3 2022	2021
Fair value, beginning of period	1,281	1,456
Transfers for the period	0	0
Capital gain and loss for the period reflected in the income statement under value adjustments	43	109
Sales or redemptions	255	319
Purchases	37	35
Fair value, end of period	1,106	1,281

Non-observable prices at the end of the third quarter of 2022 referred to unlisted shares recognised at DKK 1,106m against unlisted shares recognised at DKK 1,281m at the end of 2021. 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 111m on 30 September 2022 (0.31% of shareholders' equity at the end of the third quarter of 2022). For 2021, the effect on the income statement was estimated at DKK 128m (0.44% of shareholders' funds at the end of 2021). Capital gain and loss for the period on unlisted shares recognised in the income statement is attributable to assets held at the end of the third quarter of 2022. 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 28m (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 7% (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 71m (end of 2021: DKK 80m). 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 6.41% at the end of 2021. Owner-occupied properties, exclusive of leased properties, were recognised at DKK 1,577m (2021: DKK 1,601m). The revalued amount belongs to the category of 'non-observable prices'. Leased properties were recognised at DKK 323m (end of 2021: DKK 370m).

29 Group overview

30 September 2022	Currency	Share capital 1,000 units	Ownership share (%)	Voting share (%)	Assets DKKm, end of 2021	Liabilities DKKm, end of 2021	Equity DKKm, end of 2021	Earnings (DKKm) 2021	Profit or loss, DKKm 2021
Jyske Bank A/S1	DKK	690,000			314,879	276,613	38,266	6,308	3,176
Subsidiaries Jyske Realkredit, Kgs. Lyngby 2	DKK	4,306,480	100		100 369,035	348,237	20,798	5,685	1,028
Jyske Bank Nominees Ltd., London 4	GBP	0	100	100	0	0	0	0	0
Inmobiliaria Saroesma S.L., Spain 5 Jyske Finans A/S, Silkeborg 3	EUR DKK	885 100,000	100 100	100 100	3 24,519	3 22,977	0 1,542	0 1,459	0 462
Ejendomsselskabet af 01.11.2017 A/S, Silkeborg 5	DKK	500	100	100	48	45	3	4	2
Gl. Skovridergaard A/S, Silkeborg 5	DKK	500	100	100	31	28	3	18	0
Ejendomsselskabet af 01.10.2015 ApS, Silkeborg 5	DKK	500	100	100	106	104	2	1	1
Jyske Invest Fund Management A/S, Silkeborg 4	DKK	76,000	100	100	491	90	401	179	48
Jyske Banks Vindmølle A/S, Hobro 5	DKK	400	100	100	47	26	21	4	1

Activity:

1 Banking

2 Mortgage-credit activities

3 Leasing, financing and factoring

4 Investment and financing

5 Properties, wind turbine and course activities

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.

DKKm Q1-Q3 2022 Q1-Q3 2021

Income statement

3	Interest income	2,802	2,456
4	Interest expenses	827	819
	Net interest income	1,975	1,637
	Dividends, etc.	85	49
5	Fees and commission income	2,361	2,230
	Fees and commission expenses	134	111
	Net interest and fee income	4,287	3,805
6	Value adjustments	-448	685
	Other operating income	324	350
	Employee and administrative expenses	3,245	3,224
	Amortisation, depreciation and impairment charges	78	74
	Other operating expenses	108	32
	Loan impairment charges	-376	-179
	Profit on investments in associates and group enterprises	1,384	1,079
	Pre-tax profit	2,492	2,768
	Tax	298	377
	Net profit for the period	2,194	2,391
	Distributed to:
	Total appropriation to shareholders' equity	2,086	2,251
	Holders of additional tier 1 capital (AT1)	108	140
	Total	2,194	2,391
	Statement of Comprehensive Income
	Net profit for the period	2,194	2,391
	Other comprehensive income:
	Items that cannot be recycled to the income statement:
	Actuarial losses and gains	80	0
	Tax on actuarial losses and gains	-21	0
	Other comprehensive income after tax	59	0

	Comprehensive income for the period	2,253	2,391

Note				Jyske Bank


	DKKm	30 Sept.	31 Dec.	30 Sept.
		2022	2021	2021
	BALANCE SHEET

	ASSETS
	Cash balance and demand deposits with central banks Due from credit institutions and central banks	60,850 15,850	30,318 9,268	47,169 10,393
	Loans at fair value	4,056	1,771	1,816
8	Loans and advances at amortised cost	158,237	142,804	142,323
	Bonds at fair value	38,525	44,235	49,739
	Bonds at amortised cost	39,197	27,703	25,180
	Shares, etc.	2,140	2,554	2,376
	Investments in associates	248	217	217
	Equity investments in group enterprises	23,653	22,766	22,312
	Assets in pooled deposits	3,523	4,303	3,979
	Owner-occupied properties	1,556	1,578	1,613
	Owner-occupied properties, leasing	323	370	315
	Other property, plant and equipment	84	78	64
	Current tax assets Deferred tax assets	1,312 0	844 21	1,173 43
	Assets held temporarily	6	4	43
	Other assets	31,996	25,960	26,838
	Prepayments	102	85	286
	Total assets	381,658	314,879	335,879

	EQUITY AND LIABILITIES
	Debt and payables Due to credit institutions and central banks	39,430	25,057	35,972
9	Deposits	158,504	129,720	131,790
	Pooled deposits	3,531	4,337	4,204
	Issued bonds at amortised cost	87,736	73,124	75,980
	Other liabilities	45,924	37,532	42,745
	Deferred income	22	19	21
	Total debt	335,147	269,789	290,712
	Provisions
	Provisions for pensions and similar liabilities	494	561	594
	Provisions for guarantees	214	384	396
	Provisions for credit commitments and unutilised credit lines	241	271	398
	Other provisions	95	95	77
	Provisions, total	1,044	1,311	1,465
	Subordinated debt	6,387	5,513	5,517

	Equity
	Share capital Revaluation reserve	690 171	726 171	726 200
	Reserve according to the equity method	9,091	8,170	7,715
	Retained profit	25,815	25,844	26,184
	Jyske Bank A/S shareholders	35,767	34,911	34,825
	Holders of additional tier 1 capital (AT1)	3,313	3,355	3,361
	Total equity	39,080	38,266	38,186
	Total equity and liabilities	381,658	314,879	335,880

	OFF-BALANCE SHEET ITEMS
	Guarantees, etc.	16,116	20,667	21,018
	Other contingent liabilities Total guarantees and other contingent liabilities	57,455 73,571	64,725	59,100 80,118
			85,392

DKKm

Statement of Changes in Equity

			Reserve
			according
	Share	Revaluation	to the equity	Retained	Shareholders of Jyske	AT1	Total
	capital	reserve	method	profit	Bank A/S	capital*	equity
Equity on 01 January 2022	726	171	8,170	25,844	34,911	3,355	38,266
Net profit for the period	0	0	921	1,165	2,086	108	2,194
Other comprehensive income:
Actuarial losses and gains	0	0	0	80	80	0	80
Tax on other comprehensive income	0	0	0	-21	-21	0	-21
Other comprehensive income after tax	0	0	0	59	59	0	59
Comprehensive income for the period	0	0	921	1,224	2,145	108	2,253
Interest paid on additional tier 1 capital	0	0	0	0	0	-107	-107
Currency translation adjustment	0	0	0	43	43	-43	0
Reduction of share capital	-36	0	0	36	0	0	0
Acquisition of own shares	0	0	0	-2,903	-2,903	0	-2,903
Sale of own shares	0	0	0	1,571	1,571	0	1,571
Transactions with owners	-36	0	0	-1,253	-1,289	-150	-1,439

Equity on 30 September 2022	690	171	9,091	25,815	35,767	3,313	39,080

Equity on 01 January 2021	726	200	6,905	25,494	33,325	3,307	36,632
Net profit for the period	0	0	810	1,441	2,251	140	2,391
Other comprehensive income	0	0	0	0	0	0	0
Comprehensive income for the period	0	0	810	1,441	2,251	140	2,391
Redemption of hybrid core capital	0	0	0	0	0	-1,417	-1,417
Hybrid core capital issue	0	0	0	0	0	1,486	1,486
Transaction costs	0	0	0	-15	-15	0	-15
Interest paid on additional tier 1 capital	0	0	0	0	0	-140	-140
Currency translation adjustment	0	0	0	15	15	-15	0

Acquisition of own shares	0	0	0	-1,884	-1,884	0	-1,884
Sale of own shares	0	0	0	1,133	1,133	0	1,133
Transactions with owners	0	0	0	-751	-751	-86	-837

Equity on 30 September 2021	726	200	7,715	26,184	34,825	3,361	38,186

Note			Jyske Bank

DKKm	30 Sept. 2022	31 Dec. 2021	30 Sept. 2021

Capital Statement
Shareholders' equity	35,767	34,911	34,825
Share buy-back programme, non-utilised limit	0	-272	-1,000
Expected dividend, calculated as required by law	0	0	-158
Deferred tax assets	0	-21	-43
Prudent valuation	-222	-272	-233
Insufficient coverage of non-performing loans and guarantees	-53	-52	-42
Other deductions	-153	-40	-70
Common equity tier 1 capital	35,339	34,254	33,279
Additional tier 1 capital (AT1) after reduction	3,285	3,329	3,334
Core capital	38,624	37,583	36,613
Subordinated loan capital after reduction	6,194	5,275	5,280
Capital base	44,818	42,858	41,893
Weighted risk exposure involving credit risk, etc.	121,196	114,795	109,789
Weighted risk exposure involving market risk	8,921	11,086	11,329
Weighted risk exposure involving operational risk	10,705	10,249	10,249
Total weighted risk exposure	140,822	136,130	131,367
Capital requirement, Pillar I	11,266	10,890	10,509
Capital ratio (%)	31.8	31.5	31.9
Tier 1 capital ratio (%)	27.4	27.6	27.9
Common equity tier 1 capital ratio (%)	25.1	25.2	25.3

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.

1 Accounting policies

The interim financial statements of the parent company Jyske Bank A/S for the period 1 January to 30 September 2022 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 67 of the annual report 2021. The accounting policies are identical to those applied to and described in the annual report 2021.

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-Q3 2022	Q1-Q3 2021
2 Financial ratios
Pre-tax profit p.a. as a percentage of average equity* 9.0	10.3
Profit for the period as a pct. of average equity* 5.9	6.6
Income/cost ratio (%) 1.8	1.9
Capital ratio (%) 31.8	31.9
Common equity tier 1 capital ratio (%) 25.1	25.3
Individual solvency requirement (%) 12.5	12.6
Capital base (DKKm) 44,818	41,892
Total risk exposure (DKKm) 140,822	131,367
Interest-rate risk (%) 1.9	0.9
Currency risk (%) 0.0	0.1
Accumulated impairment ratio (%) 1.5	1.9
Impairment ratio for the period (%) -0.2	-0.1
No. of full-time employees at end-period 3,051	3,050
Average number of full-time employees in the period 3,023	3,070

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.

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

DKKm Q1-Q3 Q1-Q3 2022 2021 3 Interest income Due from credit institutions and central banks -46 -41 Loans and advances 1,341 1,109 Bonds 307 266 Derivatives, total 375 117 Of which currency contracts 403 221 Of which interest-rate contracts -28 -104 Total after offsetting of negative interest 1,977 1,451 Negative interest income set off against interest income 177 284 Negative interest expenses set off against interest expenses 648 721 Total before offsetting of negative interest income 2,802 2,456 Of which interest income on reverse repos carried under: Due from credit institutions and central banks -6 -12 Loans and advances -86 -124 4 Interest expenses Due to credit institutions and central banks 16 49 Deposits -406 -408 Issued bonds 292 82 Subordinated debt 92 86 Other interest expenses 8 5 Total after offsetting of negative interest 2 -186 Negative interest expenses set off against interest expenses 648 721 Negative interest income set off against interest income 177 284 Total before offsetting of negative interest income 827 819 Of which interest expenses on reverse repos carried under: Due to credit institutions and central banks -47 -63 Deposits -12 -14 5 Fees and commission income Securities trading and custody services 733 742 Money transfers and card payments 213 192 Loan application fees 120 80 Guarantee commission 79 82 Other fees and commissions 1,216 1,134 Total 2,361 2,230 6 Value adjustments Loans at fair value -90 1 Bonds -1,791 -370 Shares, etc. -108 136 Currency 80 144 Currency, interest-rate, share, commodity and other contracts as well as other derivatives 1,096 646 Assets in pooled deposits -621 323 Pooled deposits 621 -323 Other assets 27 27 Issued bonds 144 75	Note		Jyske Bank

Total -448 685

	DKKm	Q1-Q3 2022	Q1-Q3 2021
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	-237	-217
	Impairment charges on balances due from credit institutions in the period	-4	-4
	Provisions for loan commitments and unutilised credit lines in the period	-30	100
	Recognised as a loss, not covered by loan impairment charges and provisions	34	32
	Recoveries	-117	-84
	Recognised discount for acquired loans	-22	-6
	Loan impairment charges and provisions for guarantees recognised in the income statement	-376	-179
	Balance of loan impairment charges and provisions for guarantees
	Balance of loan impairment charges and provisions, beginning of period	3,471	3,813
	Loan impairment charges and provisions for the period	-267	-117
	Recognised as a loss, covered by loan impairment charges and provisions	-230	-94
	Other movements	36	40
	Balance of loan impairment charges and provisions, end of period	3,010	3,642
	Loan impairment charges and provisions for guarantees at amortised cost	2,549	2,845
	Loan impairment charges at fair value	5	3
	Provisions for guarantees	214	396
	Provisions for credit commitments and unutilised credit lines	242	398
	Balance of loan impairment charges and provisions, end of period	3,010	3,642

DKKm

7 Loan impairment charges and provisions for guarantees, cont.

Balance of loan impairment charges and provisions for guarantees by stage – total
	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2022	663	462	2,346	3,471
Transfer of impairment charges at beginning of period to stage 1	220	-190	-30	0
Transfer of impairment charges at beginning of period to stage 2	-45	81	-36	0
Transfer of impairment charges at beginning of period to stage 3	-8	-25	33	0
Impairment charges on new loans, etc.	126	43	106	275
Impairment charges on discontinued loans and provisions for guarantees	-188	-73	-254	-515
Effect from recalculation	-336	415	-70	9
Previously recognized as impairment charges, now final loss	0	0	-230	-230
Balance on 30 September 2022	432	713	1,865	3,010
Balance of loan impairment charges and provisions for guarantees by stage – total
	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2021	581	698	2,534	3,813

Transfer of impairment charges at beginning of period to stage 1	93	-83	-10	0
Transfer of impairment charges at beginning of period to stage 2	-64	150	-86	0
Transfer of impairment charges at beginning of period to stage 3	-1	-205	206	0
Impairment charges on new loans, etc.	230	48	109	387
Impairment charges on discontinued loans and provisions for guarantees	-134	-109	-299	-542
Effect from recalculation	-53	22	109	78
Previously recognized as impairment charges, now final loss	0	0	-94	-94
Balance on 30 September 2021	652	521	2,469	3,642

Balance of impairment charges by stage - loans at amortised cost
	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2022	484	316	2,014	2,814
Transfer of impairment charges at beginning of period to stage 1	151	-126	-25	0
Transfer of impairment charges at beginning of period to stage 2	-41	69	-28	0
Transfer of impairment charges at beginning of period to stage 3	-7	-21	28	0
Impairment charges on new loans, etc.	78	28	33	139
Impairment charges on discontinued loans and provisions for guarantees	-104	-42	-161	-307
Effect from recalculation	-245	428	-160	23
Previously recognized as impairment charges, now final loss	0	0	-120	-120
Balance on 30 September 2022	316	652	1,581	2,549
Balance of impairment charges by stage - loans at amortised cost
	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2021	427	559	2,243	3,229
Transfer of impairment charges at beginning of period to stage 1	70	-61	-9	0
Transfer of impairment charges at beginning of period to stage 2	-47	120	-73	0
Transfer of impairment charges at beginning of period to stage 3	-1	-174	175	0

Impairment charges on new loans, etc. ¹²⁵ ²⁵ ⁶² 212 Impairment charges on discontinued loans and provisions for guarantees -67 -92 -254 -413 Effect from recalculation -34 ³ -60 -91 Previously recognized as impairment charges, now final loss ⁰ ⁰ -92 -92 Balance on 30 September 2021 ⁴⁷³ ³⁸⁰ 1,992 2,845

DKKm

7 Loan impairment charges and provisions for guarantees, cont.

Balance of impairment charges by stage – loans at fair value

	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2022	1	1	0	2
Transfer of impairment charges at beginning of period to stage 1	0	0	0	0
Transfer of impairment charges at beginning of period to stage 2	0	0	0	0
Transfer of impairment charges at beginning of period to stage 3	0	0	0	0
Impairment charges on new loans, etc.	2	0	2	4
Impairment charges on discontinued loans and provisions for guarantees	-1	0	0	-1
Effect from recalculation	0	0	0	0
Previously recognized as impairment charges, now final loss	0	0	0	0
Balance on 30 September 2022	2	1	2	5

Balance of impairment charges by stage – loans at fair value
	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2021	0	1	0	1
Transfer of impairment charges at beginning of period to stage 1	0	0	0	0
Transfer of impairment charges at beginning of period to stage 2	0	0	0	0
Transfer of impairment charges at beginning of period to stage 3	0	0	0	0
Impairment charges on new loans, etc.	1	0	0	1
Impairment charges on discontinued loans and provisions for guarantees	0	0	0	0
Effect from recalculation	1	0	0	1
Previously recognized as impairment charges, now final loss	0	0	0	0
Balance on 30 September 2021	2	1	0	3

Balance of provisions by stage - guarantees and loan commitments

	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2022	176	145	334	655
Transfer of impairment charges at beginning of period to stage 1	69	-64	-5	0
Transfer of impairment charges at beginning of period to stage 2	-4	12	-8	0
Transfer of impairment charges at beginning of period to stage 3	-1	-3	4	0
Impairment charges on new loans, etc.	46	15	71	132
Impairment charges on discontinued loans and provisions for guarantees	-82	-30	-96	-208
Effect from recalculation	-91	-13	90	-14
Previously recognized as impairment charges, now final loss	0	0	-109	-109
Balance on 30 September 2022	113	62	281	456

Balance of provisions by stage - guarantees and loan commitments
	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of 2021	153	138	292	583
Transfer of impairment charges at beginning of period to stage 1	24	-23	-1	0
Transfer of impairment charges at beginning of period to stage 2	-17	30	-13	0
Transfer of impairment charges at beginning of period to stage 3	0	-31	31	0
Impairment charges on new loans, etc.	104	23	47	174
Impairment charges on discontinued loans and provisions for guarantees	-66	-17	-45	-128
Effect from recalculation	-20	18	168	166
Previously recognized as impairment charges, now final loss	0	0	-1	-1
Balance on 30 September 2021	178	138	478	794

DKKm

7 Loan impairment charges and provisions for guarantees, cont.

Gross loans, advances and guarantees by stage

	Stage 1	Stage 2	Stage 3	Total
Gross loans, advances and guarantees, 1 January 2022	156,186	7,695	4,561	168,442
Transfer of loans, advances and guarantees to stage 1	3,713	-3,642	-71	0
Transfer of loans, advances and guarantees to stage 2	-3,719	3,800	-81	0
Transfer of loans, advances and guarantees to stage 3	-390	-244	634	0
Other movements	13,674	-389	-550	12,735
Gross loans, advances and guarantees, 30 September 2022	169,464	7,220	4,493	181,177
Loan impairment charges and provisions for guarantees, total	360	691	1,717	2,768
Net loans, advances and guarantees, 30 September 2022	169,104	6,529	2,776	178,409
Gross loans, advances and guarantees by stage
	Stage 1	Stage 2	Stage 3	Total
Gross loans, advances and guarantees, 1 January 2021	159,624	5,992	4,610	170,226
Transfer of loans, advances and guarantees to stage 1	1,044	-989	-55	0
Transfer of loans, advances and guarantees to stage 2	-4,241	4,428	-187	0
Transfer of loans, advances and guarantees to stage 3	-218	-1,119	1,337	0
Other movements	-23	-617	-1,144	-1,784
Gross loans, advances and guarantees, 31 December 2021	156,186	7,695	4,561	168,442

Loan impairment charges and provisions for guarantees, total ⁵⁴⁶ ³⁶⁷ 2,287 3,200 Net loans, advances and guarantees, 31 December 2021 155,640 7,328 2,274 165,242

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

		30 September 2022				31 Dec. 2021
Performing	PD band (%)	Stage 1	Stage 2	Stage 3	Total	Total
1	0.00 - 0.10	46,943	107	0	47,050	48,683
2	0.10 - 0.15	14,292	13	0	14,305	14,862
3	0.15 - 0.22	20,121	77	0	20,198	14,429
4	0.22 - 0.33	16,047	53	0	16,100	13,195
5	0.33 - 0.48	9,398	180	0	9,578	21,461
STY Ratings 1 – 5		106,801	430	0	107,231	112,630
6	0.48 - 0.70	21,216	403	0	21,619	17,271
7	0.70 - 1.02	9,706	733	0	10,439	7,412
8	1.02 - 1.48	13,965	278	0	14,243	8,103
9	1.48 - 2.15	5,260	373	0	5,633	8,885
10	2.15 - 3.13	6,569	1,115	0	7,684	4,534
11	3.13 - 4.59	1,641	213	0	1,854	1,403
STY Ratings 6 – 11		58,357	3,115	0	61,472	47,608
12	4.59 - 6.79	1,649	566	0	2,215	1,110
13	6.79 - 10.21	424	567	0	991	319
14	10.21 - 25.0	95	2,430	0	2,525	1,330
STY Ratings 12-14		2,168	3,563	0	5,731	2,759
Other		2,125	30	0	2,155	776
Non-performing loans		13	82	4,493	4,588	4,669
Total		169,464	7,220	4,493	181,177	168,442

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

		30 September 2022				31 Dec. 2021
Performing	PD band (%)	Stage 1	Stage 2	Stage 3	Total	Total
1	0.00 - 0.10	6	0	0	6	4
2	0.10 - 0.15	18	1	0	19	22
3	0.15 - 0.22	29	1	0	30	58
4	0.22 - 0.33	33	1	0	34	62
5	0.33 - 0.48	32	4	0	36	81
STY Ratings 1- 5		118	7	0	125	227
6	0.48 - 0.70	41	6	0	47	77
7	0.70 - 1.02	40	9	0	49	70
8	1.02 - 1.48	51	6	0	57	85
9	1.48 - 2.15	25	7	0	32	101
10	2.15 - 3.13	33	62	0	95	67
11	3.13 - 4.59	15	6	0	21	49
STY Ratings 6 – 11		205	96	0	301	449
12	4.59 - 6.79	23	19	0	42	57
13	6.79 - 10.21	8	31	0	39	28
14	10.21 - 25.0	3	497	0	500	134
STY Ratings 12-14		34	547	0	581	219
Other		3	26	0	29	13
Non-performing loans		0	15	1,717	1,732	2,292
Total		360	691	1,717	2,768	3,200

DKKm

7 Loan impairment charges and provisions for guarantees, cont.

Loan commitments and unutilised credit facilities by stage and internal rating

		30 September 2022				31 Dec. 2021
Performing	PD band (%)	Stage 1	Stage 2	Stage 3	Total	Total
1	0.00 - 0.10	12,827	0	0	12,827	11,051
2	0.10 - 0.15	4,957	3	0	4,960	6,334
3	0.15 - 0.22	8,640	49	0	8,689	10,988
4	0.22 - 0.33	5,448	24	0	5,472	8,769
5	0.33 - 0.48	5,091	51	0	5,142	6,909
STY Ratings 1 – 5		36,963	127	0	37,090	44,051
6	0.48 - 0.70	5,696	36	0	5,732	5,141
7	0.70 - 1.02	5,282	143	0	5,425	5,619
8	1.02 - 1.48	3,512	30	0	3,542	4,382
9	1.48 - 2.15	1,521	51	0	1,572	2,715
10	2.15 - 3.13	1,663	126	0	1,789	920
11	3.13 - 4.59	464	34	0	498	469
STY Ratings 6 – 11		18,138	420	0	18,558	19,246
12	4.59 - 6.79	267	99	0	366	369
13	6.79 - 10.21	124	252	0	376	104
14	10.21 - 25.0	22	417	0	439	495
STY Ratings 12-14		413	768	0	1,181	968
Other		5	0	0	5	11
Non-performing loans		2	4	599	605	395
Total		55,521	1,319	599	57,439	64,671

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

		30 September 2022				31 Dec. 2021
Performing	PD band (%)	Stage 1	Stage 2	Stage 3	Total	Total
1	0.00 - 0.10	3	0	0	3	1
2	0.10 - 0.15	5	1	0	6	3
3	0.15 - 0.22	7	0	0	7	13
4	0.22 - 0.33	6	0	0	6	17
5	0.33 - 0.48	7	1	0	8	16
STY Ratings 1 – 5		28	2	0	30	50
6	0.48 - 0.70	14	0	0	14	19
7	0.70 - 1.02	10	1	0	11	19
8	1.02 - 1.48	8	0	0	8	17
9	1.48 - 2.15	3	0	0	3	20
10	2.15 - 3.13	4	3	0	7	9
11	3.13 - 4.59	1	0	0	1	9
STY Ratings 6 – 11		40	4	0	44	93
12	4.59 - 6.79	1	1	0	2	4
13	6.79 - 10.21	1	6	0	7	3
14	10.21 - 25.0	0	11	0	11	58
STY Ratings 12-14		2	18	0	20	65
Other		0	0	0	0	0
Non-performing loans		0	0	148	148	63
Total		70	24	148	242	271

DKKm

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

					Balance of loan		Loan impairment
				impairment charges and
charges and						provisions for
				provisions for		guarantees for the		Loss for the
Sector	Loans, advances and guarantees			guarantees		period		period
	%
	30	%
	Sept.	End of	30 Sept.	End of	30 Sept.	End of	Q1-Q3	Q1-Q3	Q1-Q3	Q1-Q3
	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021

Public authorities	7	7	12,082	12,379	0	0	0	0	0	0
Agriculture, hunting,
forestry, fishing	6	4	11,038	6,885	169	314	-126	-114	26	7
Fishing	2	1	4,035	1,673	10	3	7	2	0	0
Dairy farmers	0	0	439	431	75	166	-71	-38	25	0
Plant production	2	1	3,417	2,412	32	56	-26	-21	0	0
Pig farming	1	1	1,893	1,491	38	66	-27	-15	1	0
Other agriculture	1	1	1,254	878	14	23	-9	-42	0	7
Manufacturing, mining, etc.	6	4	10,752	7,344	209	395	-191	31	0	1
Energy supply	4	6	6,264	8,913	21	43	-22	-10	0	0
Building and construction	2	1	3,133	2,364	59	58	4	-38	7	3
Commerce	5	5	9,003	8,044	208	257	-55	-16	1	3
Transport, hotels and	1	2	2,198	3,551	50	84	-35	-46	0	1
restaurants
Information and	1	1	2,472	986	138	140	-5	-72	0	0
communication
Finance and insurance	44	43	78,144	69,277	863	473	357	-69	18	16
Real property	8	8	13,887	14,157	80	267	-98	-76	112	40
Lease of real property	4	4	6,654	7,242	53	230	-86	-41	112	4
Buying and selling of real	1	1	2,261	2,122	13	11	0	-10	0	36
property
Other real property	3	3	4,972	4,793	14	26	-12	-25	0	0
Other sectors	3	3	5,827	5,330	171	131	38	-10	6	11
Corporate clients	80	77	142,718	126,851	1,968	2,162	-133	-420	170	82
Personal clients	13	16	23,609	26,012	800	1,038	-213	141	94	44
Unutilised credit lines and	0	0	0	0	242	271	-30	100	0	0
loan commitments
Total	100	100	178,409	165,242	3,010	3,471	-376	-179	264	126

	DKKm	30 Sept. 2022	31 Dec. 2021	30 Sept. 2021
9	Deposits
	Demand deposits	121,484	108,730	108,167
	Term deposits	819	1,136	1,229
	Time deposits	31,498	15,211	17,717
	Special deposits	4,703	4,643	4,677
	Total	158,504	129,720	131,790

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 30 September 2022.

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 30 September 2022 and also of their financial performance as well as the cash flows of the Group for the period 1 January to 30 September 2022.

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, 1 November 2022

EXECUTIVE BOARD

ANDERS DAM Managing Director and CEO

NIELS ERIK JAKOBSEN PETER SCHLEIDT PER SKOVHUS

/JENS BORUM Director, Finance

SUPERVISORY BOARD

KURT BLIGAARD PEDERSEN Chairman

RINA ASMUSSEN

BENTE OVERGAARD

JOHNNY CHRISTENSEN Employee Representative

MARIANNE LILLEVANG Employee Representative

MICHAEL C. MARIEGAARD Employee Representative

KELD NORUP Deputy Chairman

ANKER LADEN-ANDERSEN

PER SCHNACK

AI Terminal

Jyske Bank

3370_ir_2022-11-01_4b3189ef-9623-4de8-bd2a-b66699f7ebe9.pdf

Interim Financial Report Q1-Q3 2022

Interim Financial Report Q1-Q3 2022

Management's Review

Business Segments

Interim Financial Statements

Statement by the Executive and Supervisory Boards 57

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

Summary

Earnings per share of DKK 31.9 Q1-Q3 2022

Outlook 2022

Financial Review

Core profit and net profit for the period (DKKm)

Net profit for the period

Core income

Core expenses

Core expenses (DKKm)

Loan impairment charges

Investment portfolio earnings

Investment portfolio earnings (DKKm)

Q3 2022 compared to Q2 2022

Business volume

Q3 2022 compared to Q2 2022

Credit quality

Non-performing loans and guarantees (DKKbn)

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

Capital and Liquidity Management

Capital management

Capital ratios (%)

Weighted risk exposure (DKKm)

Capital requirement

Liquidity management

Refinancing profile

Issuance activity and funding plans

Issuance activity

Credit rating

Sustainability ratings

Sustainability ratings

Supervisory diamond

The supervisory diamond for Jyske Bank A/S

The supervisory diamond for Jyske Realkredit A/S

Other Information

Events after the end of the accounting period

Financial calendar 2023

Financial calendar 2023

Further information

Business Segments

Banking Activities

Summary of income statement (DKKm)

Summary of balance sheet, end of period (DKKbn)

Profit

Core income

Core expenses

Loan impairment charges

Investment portfolio earnings

Business volumes

Q3 2022 compared to Q2 2022

Mortgage activities

Summary of income statement (DKKm)

Summary of balance sheet (DKKbn)

Profit

Core income

Core expenses

Loan impairment charges

Business volumes

Q3 2022 compared to Q2 2022

Leasing activities

Summary of income statement (DKKm)

Summary of balance sheet, end of period (DKKbn)

Profit

Business volumes

Q3 2022 compared to Q2 2022

DKKm

Statement of Changes in Equity

1 Accounting policies

2 Material accounting estimates

DKKm

4 Segmental financial statements, cont.