Nasdaq Copenhagen A/S


9 May 2022

Highlights for Q1 2022

For Q1 2022, Vestjysk Bank reported an acceptable profit before tax of DKK 99m. Net interest and fee income is reported at DKK 369, which is satisfactorily and DKK 39m better than the same period last year, where the net interest and fee income was DKK 330m.

The financial performance was affected by the increasing interest rate level in the market. The increasing interest rates had a negative impact on the market value of the Bank’s own portfolio of bonds, and price adjustments affected profit adversely by DKK 58m.

The Bank's write-downs for the period were not significantly affected by the aftermath of the Corona pandemic, Brexit or the risk of further spread of African swine fever. The same applies in relation to the current situation of the war in Ukraine.

The Bank continues to assess that there are significant risks in relation to the economic development, and in Q1 2022 the Bank increased its management add-ons in relation to impairment by DKK 15m, now amounting to DKK 340m. The management add-ons cover the economic uncertainties associated with rising commodity and energy prices, settlement prices and rising feed and energy prices for the Bank's pig producers, the risk of further spread of African swine fever, and the consequences of phasing out the aid schemes relating to the Corona pandemic and the current situation of war in Ukraine.

The Bank’s highlights for Q1 2022 (the figures in brackets are comparative figures for Q1 2021 adjusted for non-recurring items resulting from the merger with Den Jyske Sparekasse):

• Profit before tax amounts to DKK 99m (DKK 105m in Q1 2021)
• Return on equity amounts to 7.4% p.a. before tax (9.3 % p.a. in Q1 2021)
• Core income amounts to DKK 326m (DKK 364m in Q1 2021)
• Price adjustments amount to a negative DKK 58m (a positive DKK 32m in Q1 2021)
• Cost ratio amounts to DKK 75.3m (DKK 65.4m in Q1 2021)
• Core earnings before impairment allowances amount to DKK 80m (DKK 126m in Q1 2021)
• Net reversals of impairment of loans and receivables, etc. amount to DKK 19m (in Q1 2021 impairment amounted to DKK 22m)
• The Bank’s capital ratio amounts to 20.9 (21.1 in Q1 2021). The excess is 8.2 percentage points, equivalent to DKK 1,927m.
  
  

Outlook for 2022

In connection with the annual report for 2021, the Bank announced expectations for a profit before tax in the range of DKK 600-650m.

The situation with war in Ukraine and the generally rising level of interest rates and inflation leads to increased uncertainty about profit for the year before tax, but the Bank maintains the announced expectations.

Enquiries

Please address any enquiries regarding the present announcement to Jan Ulsø Madsen, CEO, at tel. (+45) 96 63 21 04.

Vestjysk Bank A/S

Kim Duus                                        Jan Ulsø Madsen
Chairman                                        CEO



Vestjysk Bank A/S
Industrivej Syd 13C
7400 Herning
Tel. (+45) 96 63 20 00

CVR no. 34 63 13 28

www.vestjyskbank.dk