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Jyske Bank posts YOY fall in Q2 profit, will implement organizational changes

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Jyske Bank posts YOY fall in Q2 profit, will implement organizational changes

Jyske Bank A/S' second-quarter group net profit attributable to shareholders fell year over year to 459 million Danish kroner from 780 million kroner.

EPS for the quarter amounted to 5.71 kroner, lower than the year-ago 9.18 kroner.

Net interest income came in at 1.38 billion kroner, down from 1.47 billion kroner a year ago. Fee and commission income rose on a yearly basis to 655 million kroner from 511 million kroner, so did fee and commission expenses, to 132 million kroner from 112 million kroner.

Other income totaled 192 million kroner, down year over year from 390 million kroner.

The bank booked a charge from value adjustments of 91 million kroner, compared with an income of 69 million kroner in the year-ago period. Amortization, depreciation and impairment charges, meanwhile, declined year over year to 125 million kroner from 140 million kroner. Loan impairment charges amounted to 9 million kroner, compared to 27 million kroner a year earlier.

The Denmark-based lender's first-half attributable profit declined to 1.04 billion kroner from the year-ago 1.36 billion kroner. EPS for the half was 12.81 kroner, down from 15.96 kroner a year ago.

"Jyske Bank's financial statements are very much affected by the sustained negative interest rate environment and interest expenses for the increasing nonpreferred senior debt," CEO Anders Dam said.

As of June 30, the bank's common equity Tier 1 ratio was 16.0%, lower than 16.6% at the end of March and 16.7% a year ago.

Jyske Bank said it will implement a change in its organizational structure, effective Sept. 1, to solve some governance-related problems and to achieve a more focused and simple organization.

Carsten Tirsbæk Madsen, currently unit director of retail clients, will be appointed new CEO of Jyske Realkredit A/S and will resign from from the supervisory boards of Jyske Realkredit and Jyske Finans A/S. He replaces Lars Waalen Sandberg, who will become director of the group's new business concepts unit and deputy chairman of Jyske Realkredit's supervisory board. Sandberg will also join Jyske Finans' supervisory board.

Meanwhile, Jyske Finans Director Jes Rosendal was named new unit director of retail clients and new supervisory board chairman of the supervisory board of Jyske Finans, among other changes in the group's organizational structure.

As of Aug. 19, US$1 was equivalent to 6.72 Danish kroner.