Bloomberg News

Jyske Keeps Eye on Acquisitions as Capital Top Requirements

May 01, 2013

Jyske Bank A/S (JYSK), which took over Sparekassen Lolland A/S in January, will continue to make acquisitions after exceeding tougher new capital requirements proposed for lenders identified as too big to fail.

Jyske, whose assets equal 14 percent of Denmark’s economy, will continue to look for “selective acquisitions” while keeping its core Tier 1 capital ratio above the level recommended by the government-appointed committee on systemically important financial institutions, Chief Executive Officer Anders Dam said today.

That strategy “has not changed,” Dam said in a statement published by the Silkeborg, Denmark-based bank.

Jyske reported today a 15 percent jump in first-quarter net income, to 435 million kroner ($77 million), after writedowns fell by almost 40 percent. The lender said it had core Tier 1 capital of 13.7 percent of risk-weighted assets. The Sifi committee, whose proposals parliament is now considering, recommended Denmark’s biggest banks hold common equity Tier 1 capital of as much as 13.5 percent.

To contact the reporter on this story: Frances Schwartzkopff in Copenhagen at fschwartzko1@bloomberg.net

To contact the editor responsible for this story: Christian Wienberg at cwienberg@bloomberg.net


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