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1. Company Snapshot

1.a. Company Description

Jyske Bank A/S provides various financial solutions in Denmark and Germany.It operates through Banking Activities, Mortgage Activities, and Leasing Activities segments.The Banking Activities segment provides advisory services relating to traditional financial solutions for personal and private banking, and corporate clients; and trading and investment services, including trading in interest rate products, currencies, equities, commodities, and derivatives for corporate and institutional clients.


The Mortgage Activities segment offers financial solutions for the financing of real property to Danish personal clients, corporate clients, and subsidized rental housing.The Leasing Activities segment provides financial solutions in the form of leasing and financing within car financing, as well as leasing and financing of equipment for the corporate sector.It serves Danish personal and corporate clients, as well as dealer cooperation schemes and partnerships.


Jyske Bank A/S was founded in 1917 and is headquartered in Silkeborg, Denmark.

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1.b. Last Insights on JYSK

Jyske Bank's recent performance has been driven by strong Q3 results, upgraded 2025 profit outlook, and a share repurchase program. The bank's net profit guidance for 2025 was raised to approximately DKK 5.4 billion, corresponding to earnings per share of around DKK 85. This upgrade reflects a broadly based positive development, supported by a high level of activity and favorable financial markets. Additionally, the DKK 2.25 billion share buyback program, which began in February 2025, is expected to enhance shareholder value.

1.c. Company Highlights

2. Jyske Bank's Strong 2025 Results and Outlook

Jyske Bank reported a strong financial performance for 2025, with EPS growing by 18% year-on-year in Q4 to DKK 85, driven by a stable macro environment. The bank's return on tangible equity was 11.9%, and the cost/income ratio was 48% in 2025. The actual EPS for 2025 was DKK 85, significantly higher than the estimated range. The bank's core income line remained steady from 2024 to 2025. The bank's CEO, Lars Morch, noted that the stable macro environment, with average long-term growth around 2%, inflation under control, and high employment, supported the bank's performance.

Publication Date: Feb -23

📋 Highlights
  • EPS Growth:: 18% year-on-year EPS increase in Q4 2025, reaching DKK 85 for the year.
  • Capital Distribution:: Record DKK 4.5 billion payout in 2025 (20% YoY increase), with 84% of after-tax profit allocated to shareholders in 2026 via DKK 1.5 billion dividend and DKK 3 billion buybacks.
  • Capital Targets:: CET1 ratio of ~15% and total capital ratio ~20% set, including a 0.9% systemic risk buffer.
  • Return Metrics:: 11.9% return on tangible equity and 48% cost/income ratio in 2025, reflecting operational efficiency.

Capital Distribution and Targets

Jyske Bank announced its largest capital distribution of DKK 4.5 billion, a 20% increase year-on-year, and upgraded its outlook and preannounced results for 2025. The bank now targets a CET1 ratio of approximately 15% and a total capital ratio around 20%. For 2026, the bank expects to distribute 84% of its result after tax to shareholders, split between DKK 1.5 billion in dividend and DKK 3 billion in buybacks.

Outlook and Guidance

Jyske Bank expects EPS in the range of DKK 71 to DKK 85 in 2026, reflecting more normal levels of loan impairment charges and value adjustments. The bank's core income line is expected to be lower in 2026, primarily driven by value adjustments. Core expenses are expected to be slightly lower in 2026. The bank uses a DKK 800 million interval as a base case for its net interest income guidance, assuming a volatile value adjustment and investment portfolio earnings, as well as loan impairment charges.

Valuation and Dividend Yield

With a P/TBV ratio of 1.19 and a Dividend Yield of 2.49%, Jyske Bank's valuation appears reasonable. The bank's ROE is 10.82%, indicating a decent return on equity. The bank's guidance for 2026 suggests a more challenging environment, but the bank is well-positioned to navigate these challenges. Analysts estimate next year's revenue growth at 2.3%, which is relatively modest.

Market Consolidation and Strategy

Jyske Bank has seen some customers move from competitors due to turmoil in the market but does not plan to engage in aggressive behavior, such as acquiring teams of employees from other banks. The bank's strategy is to focus on providing competitive products and pricing, with a service model driving volume growth. The bank aims to grow in affluent areas on the private side, and its price reaction fits within this strategy.

3. NewsRoom

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Assessing Jyske Bank (CPSE:JYSK) Valuation After A Strong 1 Year Return

Mar -02

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Jyske Bank AS (FRA:JYS1) Q4 2025 Earnings Call Highlights: Strong EPS Growth and Record Capital ...

Feb -13

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Notice of Annual General Meeting of Jyske Bank A/S

Feb -09

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Assessing Jyske Bank’s (CPSE:JYSK) Valuation After A Powerful Share Price Rally

Feb -09

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Share repurchase programme: Transactions of week 6 2026

Feb -09

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Jyske Bank initiates share repurchase programme

Feb -05

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Annual Report 2025

Feb -05

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Conclusion of share repurchase programme

Feb -02

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.98%)

6. Segments

Banking

Expected Growth: 5.4%

Jyske Bank A/S's 5.4% growth is driven by strong loan growth, improved net interest income, and cost discipline. The bank's focus on digitalization and customer experience has led to increased market share and revenue growth. Additionally, the bank's solid capital position and robust risk management have enabled it to maintain a strong balance sheet, supporting its growth momentum.

Mortgage

Expected Growth: 7.43%

The 7.43% growth of Mortgage from Jyske Bank A/S is driven by Denmark's low interest rate environment, increasing housing demand, and government-backed mortgage subsidies. Additionally, Jyske Bank's strong brand reputation, diversified mortgage portfolio, and efficient lending processes contribute to its market share expansion.

Leasing

Expected Growth: 8.5%

Jyske Bank A/S's 8.5% leasing growth is driven by increasing demand for asset-based financing, expansion into new markets, and strategic partnerships. Additionally, the bank's digitalization efforts and competitive pricing strategy have improved customer acquisition and retention. Furthermore, the growth is supported by Denmark's stable economy and favorable business environment.

Reclassification

Expected Growth: 4.77%

Jyske Bank A/S's 4.77% growth driven by strong loan growth, improved net interest income, and cost savings from digitalization initiatives. Additionally, the bank's focus on mortgage lending and strong asset quality contributed to the growth. Furthermore, the bank's strategic expansion into the Danish mortgage market and increased market share also supported the growth.

Investment Portfolio Earnings

Expected Growth: 5.4%

Jyske Bank A/S's 5.4% investment portfolio earnings growth is driven by a combination of factors, including a strong Danish economy, increasing lending activities, and a growing customer base. Additionally, the bank's diversified investment portfolio, comprising of bonds, equities, and real estate, has contributed to the growth. Furthermore, effective cost management and a low risk profile have also supported the bank's earnings growth.

7. Detailed Products

Personal Banking

Jyske Bank A/S offers a range of personal banking services, including current and savings accounts, credit cards, personal loans, and mortgages.

Business Banking

Jyske Bank A/S provides business banking services, including business accounts, loans, and credit facilities, to support the growth and development of businesses.

Wealth Management

Jyske Bank A/S offers wealth management services, including investment advice, portfolio management, and asset management, to help clients achieve their investment goals.

Corporate Banking

Jyske Bank A/S provides corporate banking services, including cash management, trade finance, and risk management, to support the financial needs of large corporations.

Markets and Treasury

Jyske Bank A/S offers markets and treasury services, including foreign exchange, interest rates, and commodities, to help clients manage their financial risks and opportunities.

Digital Banking

Jyske Bank A/S provides digital banking services, including online banking, mobile banking, and digital payment solutions, to enable clients to manage their finances anytime, anywhere.

8. Jyske Bank A/S's Porter Forces

Forces Ranking

Threat Of Substitutes

Jyske Bank A/S operates in a highly competitive market, and customers have various alternatives to traditional banking services. However, the bank's strong brand and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Jyske Bank A/S's customers have significant bargaining power due to the availability of alternative banking services. The bank's customers are highly informed and demanding, which increases their bargaining power.

Bargaining Power Of Suppliers

Jyske Bank A/S has a strong negotiating position with its suppliers, which reduces their bargaining power. The bank's large scale of operations and long-term contracts with suppliers also limit their bargaining power.

Threat Of New Entrants

The threat of new entrants in the Danish banking industry is low due to the high barriers to entry, including regulatory requirements and the need for significant capital investments.

Intensity Of Rivalry

The Danish banking industry is highly competitive, with several large banks competing for market share. Jyske Bank A/S faces intense competition from its rivals, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 93.18%
Debt Cost 4.59%
Equity Weight 6.82%
Equity Cost 7.42%
WACC 4.78%
Leverage 1366.49%

11. Quality Control: Jyske Bank A/S passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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AIB

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A-Score: 6.2/10

Value: 6.2

Growth: 5.6

Quality: 4.8

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Volatility: 8.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

903.5$

Current Price

903.5$

Potential

-0.00%

Expected Cash-Flows