Q2 2026 Jyske Bank A/S Earnings Call Transcript
Key Points
- Earnings per share increased 12% year on year in Q2, reaching DKK22, the highest ever for an ordinary quarter.
- Strong mortgage growth driven by successful new product launches, leading to market share gains in personal banking.
- Customer satisfaction improvements, including being rated best in private banking for the 11th consecutive year.
- Net interest income (NII) turned a corner with a 2% quarter-over-quarter increase, supported by higher market rates and deposit margins.
- Assets under management grew 9% in Q2, with a 12% average annual growth rate since end-2018, driven by inflows from retail, institutional, and private banking clients.
- The bank chose not to revise its full-year guidance despite strong first-half performance, citing uncertainty in trading income and potential for lower mortgage bond margins.
- Jyske Bank AS (FRA:JYS1) has been losing market share in corporate banking due to intense price competition, which the bank deliberately avoided by not matching low-margin offers.
- Costs may rise in the coming quarters as Q2 was a particularly tight cost quarter, and the bank plans to invest in AI and digital initiatives, which could pressure margins.
- The NII sensitivity to interest rate hikes is expected to fade over time as deposit betas increase, reducing the benefit from future rate increases.
- The bank maintains a management judgment overlay of 34 basis points for loan impairments, indicating potential future credit risks that have not yet materialized.
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Hi, everyone, and thank you for joining us on Jyske Bank's conference call for the financial results for the second quarter of 2026. I am Simon Hagbart from Investor Relations. With me, I have Jyske Bank's CEO, Lars Morch; and CFO, Birger Nielsen. Lars and Birger will walk you through our prepared remarks. Afterwards, we will open up for questions.
I will now hand over to Lars.
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Thanks a lot, Simon, and thanks a lot for calling in.
Earnings per share increased 12% year on year in Q2. That is a result of business momentum and positive markets, cost control and share buybacks. We've also seen an accelerating mortgage growth, not the least due to new successful product launches, and we see that we are taking market share in this area at the moment. We continue to see the benefits of increasingly customer satisfaction over the last
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