Before extraordinary items, Jyske Bank (OMX: JYSK) has had its best first six months since the financial crisis. This comes forth from a statement explaining interim results in advance due to material charges. Second quarter gross earnings of 1.7 billion DKK and net interest income of 1.14 billion were down slightly from last quarter but up year-on-year. Second quarter gross core earnings of 180 million were more offset five-fold by a 900 million impairment charges related to new guidelines from Danish Financial Supervisory Authority. This consists of 540 million in loan impairments and 360 million for value adjustments regarding customers’ interest-rate hedging. The bank said this was intensified due to the falling interest rate in Q2.
Solvency ratios are as follows: Core Tier 1 capital ratio 14.3%, Core Tier 1 capital ratio excluding hybrid capital 13.1%. Capital surplus when comparing to individual solvency requirement of 9.6% at the end of Q2 stood at 6.8 billion DKK, up by 1.7 billion during H1 2012. This period included a 1.3 billion private placement. The bank says it is satisfied with the operational performance and maintains loan impairment charges and provisions for guarantees for the year even after the DFSA-related charge at 1.6 to 2 billion DKK range but exclusive of interest-rate hedging value adjustments. Full-report is expected on August 21st.
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