Jyske Bank A/S (JYSK) jumped the most in almost nine months in Copenhagen trading after Denmark’s second- largest listed bank posted profit that beat analysts’ estimates.
Jyske Bank rose as much as 8.1 kroner, or 4.7 percent, to 180 kroner, its steepest intraday increase since Jan. 23, and traded 3.1 percent higher at 177.2 kroner as of 9:42 a.m. local time.
The lender’s second-quarter net income jumped more than fivefold to 468 million kroner ($82.1 million) from 81 million kroner a year earlier, after loan impairments dropped 37 percent to 235 million kroner. The bank’s profit beat the 259 million- krone average estimate of five analysts surveyed by Bloomberg.
Danish lenders were hurt by soaring loan losses when the country’s property market collapsed more than four years ago. About a dozen lenders have failed since 2008, and more face insolvency as Denmark teeters on the brink of its second recession in less than a year, the financial regulator has warned.
Still, Jyske Bank Chief Executive Officer Anders Dam is ready to spend 18 billion kroner to buy Danish rivals. In an interview on Oct. 9, he predicted the Nordic nation’s financial industry will lose half of its banks by 2020.
Jyske Bank today said that it still forecasts full-year loan impairment charges and guarantee provisions to be between 1.6 billion kroner and 2 billion kroner. Third-quarter charges and provisions of 235 million kroner compared with 925 million kroner in the three months through June, when Jyske implemented more stringent guidelines for loan-impairment charges and provisions for guarantees from the Danish financial regulator.
To contact the reporter on this story: Niklas Magnusson in Hamburg at email@example.com
To contact the editor responsible for this story: Tasneem Brogger at firstname.lastname@example.org