Jyske Bank raises outlook despite falling interest rate income

Jyske Bank on Tuesday raised its full-year profit forecast, citing good business activity that helped offset a drop in income from lower interest rates.

The Danish lender said it now expects its 2025 net profit to be at the upper end of its DKK 3.8 billion to DKK 4.6 billion range.

For the first half of the year, earnings per share rose 1% to DKK 39.4 compared to the same period in 2024.

The upgraded guidance came despite a 5% fall in core income to DKK 6.5 billion, which the bank attributed to lower net interest income after Denmark's central bank policy rate decreased.

The company said the decline was partly offset by a 14% rise in net fee and commission income, driven by rising assets under management and investment activity.

"Overall, we are seeing good activity and have refined our outlook," Chief Executive Lars Mørch said in a statement.

The bank's bottom line was also supported by a reversal of loan impairment charges, which amounted to an income of DKK 47 million against an expense of DKK 95 million in the first half of 2024.