Interim financial report 1st half 2021


Net profit for the period came to DKK 473m, corresponding to a return on equity of 4.7% p.a. Impairment charges amounted to DKK 102m and are considerably lower than the ones made during the same period of 2020 when the first lockdown hit Denmark. Even though no deterioration of the clients’ ability to pay has been observed, the real state of the economies will not be uncovered until businesses will again be operating under normal conditions. Deferred VAT and tax payments and various compensation schemes, which were introduced to support healthy companies, will not fall due until the second half of 2021. It is the management’s assessment that the impairment charges made relating to Covid-19 are sufficient to cover the losses which will occur when compensation schemes etc. expire.

In the first half of 2021, administration margin income etc. shows an unchanged level compared with the same period last year. Administration margin income was positively affected by the increase in loans, yet negatively affected by slightly falling average administration margin rates, which, among other things, are attributable to clients’ remortgaging from floating rate products to fixed-rate products, on which the administration margin is lower.

Core expenses, which amount to DKK 189m for the first half of the year, increased compared with last year due to rising expenses in connection with the repatriation of activities which had previously been outsourced.

The nominal loan portfolio grew by DKK 1.9bn in the first half of 2021 and is now at DKK 336bn.

In the first half of 2021, Jyske Realkredit continued to strengthen its work on the green transition. Apart from publication of the underlying energy ratings and carbon footprint on the bonds issued, Jyske Realkredit has as the first issuer in Europe published ‘Energy Efficient Mortgage Label Harmonised Disclosure template’ designed to increase the transparency of energy-efficient loans for borrowers and investors. Also, in the first half of 2021, Jyske Realkredit issued a green bond for the financing of green commercial loans.

In the first half of 2021, Jyske Realkredit launched ‘Jyske Frihed fast rente’ that makes it possible to attain an up to 30- year interest-only option as required by the client.

The digitization journey continues at Jyske Realkredit with continued improvements of the residential part of the property in Jyske Bank’s Digital Relationship Bank, in the ‘Bedste Lån’ and ‘Bedste Hjem’ apps.