Interim financial report Q1-Q3 2021

• Interim Financial Report of Jyske Realkredit Q1-Q3 2021
• Investor presentation Q3 2021

Net profit for the period came to DKK 711m, corresponding to a return on equity of 4.7%. Impairment charges for the period amounted to DKK 113m 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 etc., which were introduced to support healthy companies, will not fall due until the first half of 2022. 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 rescue schemes etc. expire.

In the first nine months 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 290m for the first nine months of 2021, 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 4.0bn in the first nine months of 2021 and is now at DKK 338bn.

In 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 2021, Jyske Realkredit issued a green bond for the financing of green commercial loans.

In 2021, Jyske Realkredit launched ‘Jyske Frihed’ - a fixed-rate loan 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.