Jyske Bank — Earnings Release 2012

Jul 17, 2012

NASDAQ OMX Copenhagen A/S

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JYSKE BANK Vestergade 8-16 DK-8600 Silkeborg Tel: +45 89 89 89 89 Fax +45 89 89 19 99 Jyske Bank A/S www. jyskebank.dk E-mail: jyskebank@jyskebank.dk Business Reg. No.: DK17616617

17 July 2012

JYSKE BANK'S HALF-YEAR RESULTS 2012

• Core earnings before loan impairment charges and provisions for guarantees, etc. rose by 28% to DKK 1,309m.
• The Danish Financial Supervisory Authority's more stringent guidelines regarding loan impairment charges and provisions for guarantees affected the pre-tax profit negatively by about DKK 900m.

Pre-tax profit for the period	1st half	1st half	1st half	1st half	1st half
DKKm	2012	2011	2010	2009	2008
Net interest and fee income	3,275	2,932	2,943	2,756	2,552
Value adjustments	190	13	353	422	244
Other operating income	320	222	187	165	150
Operating expenses, depreciation and amortisation	2,311	2,222	2,089	1,921	1,778
Loan impairment charges and provisions for guarantees	780	620	1,000	1,144	118
Profit on investments in associates and group enterprises	-3	-7	4	0	4
Profit before effect from more stringent guidelines for loan
impairment charges and provisions for guarantees	691	318	398	278	1,054
Effect from more stringent guidelines for loan impairment charges and
provisions for guarantees	-900	0	0	0	0
Pre-tax profit for the period	-209	318	398	278	1,054

Marked improvement of operating performance

The profit for the first half of the year before the effect from the FSA's new guidelines came to DKK 691m against DKK 318m for the first half of 2011. This is the best profit for the first half of the year since 2008. Core earnings before loan impairment charges and provisions for guarantees, etc. rose by 28%. Net interest and fee income under core earnings rose by 11%; other operating income rose by 15%; and income from leasing activities inclusive of acquired activities rose by 107%. Costs exclusive of special items showed zero growth.

Jyske Bank's portfolio of held-to-maturity bonds amounted to DKK 17.9bn against DKK 18.9bn at end-2011. At the end of the first half of 2012, the fair value of the held-to-maturity portfolio was higher than the carrying amount by DKK 180m. At the end-2011, the fair value of the held-to-maturity portfolio was lower than the carrying amount by DKK 7m.

The Jyske Bank Group's solvency ratio came to 15.8%, its Core Tier 1 capital ratio came to 14.3%; and its Core Tier 1 capital ratio excluding hybrid capital came to 13.1%. The individual solvency requirement was calculated at 9.6%. Compared with the actual capital base of DKK 17.3bn, the capital surplus amounted at the end of the first half of 2012 to DKK 6.8bn, corresponding to an increase of DKK 1.7bn in the first half of 2012.

Hence the Jyske Bank Group still has a strong and satisfactory capital and liquidity base, and on the whole it is assessed that the earnings on the business activities in the first half of 2012 were satisfactory.

Effect from more stringent FSA guidelines for loan impairment charges and provisions for guarantees, etc.

In connection with the preparations of the interim financial statements 2012, Jyske Bank contacted the FSA for an interpretation of the FSA's new and more stringent guidelines for loan impairment charges and provisions for guarantees, etc. that took effect as of the second quarter of 2012.

In isolation, the interpretation and the implementation of this had a negative effect on pre-tax profit in the amount of about DKK 900m, which is broken down to about DKK 540m for loan impairment charges and provisions for guarantees and about DKK 360m for value adjustments relating to customers' interest-rate hedging, which was intensified due to the falling interest rate in the second quarter of 2012.

The new FSA guidelines do not alter Jyske Bank's view on the risk related to the loan portfolio emphasised by the decline in the individual solvency requirement. It is still expected that loan impairment charges and provisions for guarantees for the year will be in the range of DKK 1.6bn to 2.0bn, inclusive of the effect from the FSA's new and more stringent guidelines for loan impairment charges, yet exclusive of value adjustments relating to customers' interest-rate hedging. Jyske Bank's balance of loan impairment charges and provisions for guarantees increased in the first half of the year by DKK 723m to DKK 4,594m, corresponding to 3.2% of loans and guarantees against 2.8% at the end of 2011.

Other information

Jyske Bank will publish its Interim Financial Report for the first half of 2012 on 21 August 2012. Please address inquiries concerning this announcement to Anders Dam (+45 89 89 20 01) or Birger Krøgh Nielsen (+45 89 89 64 44).

Yours sincerely,

Sven Buhrkall Anders Dam Chairman of the Supervisory Board Managing Director and CEO

Financial highlights

Profit for the period	1st half	1st half	Index	Q2	Q1	Q4	Q3	Q2
DKKm	2012	2011	12/11	2012	2012	2011	2011	2011	2011
Net interest income	2,283	2,133	107	1,135	1,148	1,186	1,091	1,066	4,410
Dividends, etc.	20	16	125	17	3	0	1	14	17
Net fee and commission income	756	617	123	351	405	387	306	292	1,310
Net interest and fee income	3,059	2,766	111	1,503	1,556	1,573	1,398	1,372	5,737
Value adjustments	188	8	2,350	37	151	22	-74	-24	-44
Other operating income	175	152	115	88	87	240	78	77	469
Income from operating lease	145	70	207	76	69	58	36	36	165
Gross earnings	3,567	2,996	119	1,704	1,863	1,893	1,438	1,461	6,327
Operating expenses, depreciation and
amortisation	2,138	1,909	112	1,076	1,062	1,355	1,013	948	4,277
Depreciation from operating lease	117	59	198	62	55	48	31	31	138
Profit on investments in associates and
group enterprises	-3	-7	43	-3	0	-2	2	-2	-7
Core earnings before loan impairment
charges and provisions for guarantees,
etc.	1,309	1,021	128	563	746	488	396	480	1,905
Loan impairment charges – ordinary	781	614	127	383	398	488	376	370	1,478
Core earnings before the effect from the
more stringent guidelines, etc.	528	407	130	180	348	0	20	110	427
Earnings from investment portfolios	215	167	129	23	192	126	53	95	346
The Guarantee Fund, etc.	-52	-256	20	-14	-38	49	35	-87	-172
Effect from more stringent guidelines	-900	0	-	-900	0	0	0	0	0
Pre-tax profit	-209	318	-	-711	502	175	108	118	601
Tax	-53	84	-	-177	124	-2	26	30	108
Profit for the period	-156	234	-	-534	378	177	82	88	493

Balance sheet, end of period
DKKm
Bank loans and advances	106,783	106,089	101	106,783	107,202	108,546	105,612	106,089	108,546
Bank deposits	99,949	93,035	107	99,949	98,703	101,164	96,470	93,035	101,164
Equity	14,870	13,539	110	14,870	15,367	13,846	13,668	13,539	13,846
Total assets	256,617	235,483	109	256,617	256,667	270,220	246,960	235,483	270,220