Preliminary announcement of financial statements 2

In connection with the publication of Jyske Bank's Annual Report 2016, Anders Dam, Jyske Bank’s CEO and Managing Director states:

”In 2016, Jyske Bank achieved a return on equity after tax of 10.3%. The profit reflects an improvement of the pre-tax profit from mortgage activities of 45%, an improvement in banking activities of 15% and a practically unchanged pre-tax profit from leasing activities. The Group's balance sheet increased by 8%. The objective is still a return on equity after tax of 8-12%.

At the end of 2016, home loans in the amount of about DKK 80bn had been granted, and as at today's date, home loans have been granted in the amount of about DKK 83bn. The objective is still an addition of housing-related loans in the amount of DKK 100bn. The Group will constantly offer clients competitive products and terms and conditions. The development of property-related commercial loans follows the 5-year strategy of obtaining new loans of DKK 20bn, and at the end of 2016 new loans had been established in the amount of DKK 12.4bn.

The credit quality of the Group's portfolios of both personal clients and corporate clients improved in 2016. As a result, net reversals of impairment charges amounted to DKK 149m. The development in agriculture also resulted in a net reversal of impairment charges in the fourth quarter, while for other clients, net reversals of impairment charges have taken place for six quarters in a row. The Group's credit policy, the low interest rates, the high and increasing employment rate, the increase in real earnings and moderate economic growth in Denmark are all factors supporting a continued stable development of the credit quality.

Jyske Bank's gradual adjustment of the capital structure continued with the issue of both subordinated loans and hybrid loans in 2016. Due to the adjustment as well as the delay of the implementation of the new capital adequacy rules - now estimated to take effect in 2025 - the capacity for both continued growth and capital distribution increases. The Supervisory Board will make a motion at the Annual General Meeting for the distribution of ordinary dividend in the amount of about DKK 500m for the financial year 2016. Also, a new share buy-back programme in the amount of DKK 500m, running from 1 March to 29 September 2017, will be initiated. The long-term capital targets for the capital ratio and the Common Equity Tier 1 capital ratio are still 17.5% and 14%, respectively. Over the coming years, Jyske Bank will continue to accumulate capital levels above the long-term objectives in order to meet future regulatory requirements", concludes Anders Dam.