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UPDATE 1-Jyske Bank gets back into profit after first half loss
August 21, 2012 / 8:37 AM / 5 years ago

UPDATE 1-Jyske Bank gets back into profit after first half loss

(Adds details, CEO quotes, share price)

* Bank confirms H1 pretax loss of 209 mln DKK

* Says July saw pretax profit of 251 mln DKK

* Seven-month pretax profit 42 mln DKK

* Says business improving

COPENHAGEN, Aug 21 (Reuters) - Denmark’s Jyske Bank said on Tuesday its business improved in July, posting a small profit for the first seven months of the year after a loss in the first half due to writedowns triggered by stricter regulations.

It also said it may later reverse most of the 900 million crowns ($149.17 million) provision taken in the first half of the year.

“The profit for July emphasises that the underlying development of Jyske Bank is improving,” Chief Executive Anders Dam said in a statement.

“There is a very good chance that we can reverse that money in some years time,” Dam told Reuters later.

Jyske Bank said last month that stricter rules on loan impairments hit first-half pretax results by about 900 million Danish crowns ($148.07 million), knocking it into the red in the first half of 2012.

It said on Tuesday it recorded a pretax profit of 42 million crowns for the seven months to end-July and that the month of July generated a pretax profit of 251 million.

The seven-month profit before implementation of the more stringent guidelines amounted to 942 million against 355 million in the corresponding period in 2011, its best profit since 2008, Jyske Bank, Denmark’s second largest bank by capitalisation, said.

An 11 percent increase in net interest and fee income to 3.06 billion contributed to the half-year result.

Loan impairment charges and provisions rose to 1.32 billion crowns from 614 million in the first half last year.

Dam said the bank could carry out acquisitions for up to 18 billion crowns.

“We have somewhere between 16 billion and 18 billion crowns for acquisitions, and that should be enough for most of what may come up for sale in Denmark,” he told Reuters.

Jyske Bank shares traded up 1.1 percent by 0915 GMT, outperforming a flat Copenhagen bourse benchmark index of 20 most traded and most valuable Danish stocks. (Reporting by Mette Fraende and Ole Mikkelsen.Editing by Jeremy Gaunt.)

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