Jyske Bank’s second quarter numbers disappointed investors. The negative mood weighed in on the entire sector in Copenhagen stock exchange yesterday. Pre-tax profit of 118 million Danish kroner was down nearly 50% compared to Q2 2010 and profit for the period of 88 million was exactly 50% lower.
Net interest income continued on a downward path for the fourth quarter in a row and was now at 1.453 billion. Net fee and commission income fell back to under 300 million. Loan impairment charges had been coming down but jumped back up considerably to 370 million. Jyske Bank recognized expenses on reimbursements to Finansiel Stabilitet over the winding up of Amagerbanken. Total Bank Package I and Guarantee Fund expenses for H1 2011 were 256 million DKK.
The bank’s solvency ratio at the end of the quarter was 16%, Tier 1 Capital 14.5% and Core Tier 1 capital exclusive of hybrid core capital: 12.8% Jyske Bank fell over 7.5% yesterday and is trading flat today slightly above 145 DKK a share. The full interim report is here.
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