Share buy-back programme discontinued

In consequence of the ‘Joint statement of the Danish government and Finance Denmark in the light of the coronavirus outbreak’ issued on 23 March 2020 and the increased macroeconomic uncertainty, Jyske Bank’s Supervisory Board has today decided to discontinue the current share buy-back programme. As of today, buybacks in an amount of just above DKK 400m remain outstanding under the share buy-back programme.

Management's estimate of impairment charges in the first quarter 2020

In the past five years, the Jyske Bank Group’s loan portfolio resulted in impairment charges of DKK 22m a year, inclusive of the charges in consequence of the transition to new impairment rules (IFRS 9) as at 1 January 2018. Currently, the calculations for the first quarter of 2020 show individual impairment charges at about DKK 0.

Jyske Bank’s direct exposure to especially COVID-19 affected industries, such as the airline industry, shipping, retail, the hotel, restaurant business as well as the leisure industries is estimated to be smaller than would be implied by the bank’s natural market share.

It has today been decided that in connection with the preparation of the interim financial statements for the first quarter of 2020, a management's estimate of DKK about 1bn is made for provisions in consequence of the COVID-19 outbreak. Hence, the Jyske Bank Group’s total management's estimate will amount to about DKK 1.6bn at the beginning of the second quarter of 2020.

Sale of DLR kredit shares

On 19 March 2020, as part of the ordinary reallocation of shares in DLR kredit, Jyske Bank sold shares in the equivalent value of DKK 155m. Hence Jyske Bank's equity interest has fallen to DKK 935m and 6.9%, corresponding to the bank’s share of lending. At the end of 2017, Jyske Bank owned DLR kredit shares worth DKK 1,832m, corresponding to an ownership share of 15.7%.

 Yours faithfully,

Jyske Bank

Contact person: Birger Nielsen, CFO, tel. +45 89 89 64 44

Attachment

• Corporate Announcement 20200331