Jyske Bank A/S

CSE:JYSK

Earnings Call Analysis

Jyske Bank Q1 2024: Strong Start, Earnings, and Optimistic Future

Jyske Bank reported a robust net profit of DKK 1.3 billion for Q1 2024, a 51% increase over two years, despite a sluggish Danish housing market and low lending levels. The bank's resilience is underscored by controlled cost inflation and a low 1 basis point loan loss, benefiting from the Handelsbanken Denmark integration. Looking forward, Jyske Bank anticipates a net profit between DKK 4.3 to 5.1 billion for 2024 and plans to resume share buybacks, aiming for a new program of up to DKK 1.5 billion. Earnings per share are expected to range from DKK 64 to 76, reflecting a stable yet promising outlook.

Strong Start to the Year

Jyske Bank began the year 2024 on a high note, reporting a net profit of approximately DKK 1.3 billion for the first quarter. This represents a 51% increase from two years ago, showcasing the bank's robust performance amidst low activity levels in the Danish housing market and all-time low sector lending and remortgaging offers for this period.

Resilient Business Model

The bank's ability to maintain strong results despite challenging market conditions is a testament to its resilient business model. Key factors contributing to this success include the integration of Handelsbanken's Danish activities and efficient cost management even during high inflation times.

Stable Earnings Outlook

The bank's earnings per share (EPS) for the first quarter stood at DKK 19, aligning well with the expected annual range of DKK 64 to DKK 76. This performance is supported by strong asset management growth due to a mix of current assets under management (AUM) and new inflows, particularly from PFA Bank.

Capital Position and Shareholder Returns

Following the successful integration and capital rebuilding post the Handelsbanken acquisition, Jyske Bank resumed its share buyback program, aiming for up to DKK 1.5 billion. The bank also targets a CET1 ratio of 15% to 17% and a total capital ratio of 20% to 22%, with a plan to distribute 30% of the previous year's earnings as cash dividends annually.

Revenue and Cost Management

Despite a slight dip in net interest income (NII) by 4% in Q1 due to changes in pricing and increased interest expenses from new issuances, the bank's fee income remained stable quarter-over-quarter. However, it witnessed a decline compared to Q1 of last year due to lower mortgage activity and one-off expenses.

Asset Quality and Impairment Charges

The bank reported a high credit quality with minimal loan losses. A DKK 100 million post margin adjustment for potential CO2 tax on Danish agriculture was recorded, leaving the bank with a buffer of DKK 2 billion. This buffer is four times the total loan impairment charges booked since 2015.

Future Guidance

Jyske Bank expects the net profit for the full year 2024 to range between DKK 4.3 billion and DKK 5.1 billion, lower compared to 2023. The core income is also anticipated to decline due to value adjustments, although core expenses will remain largely unchanged. The bank plans to manage operational risks and maintain its capital levels through strategic buybacks and capital reservations.

Earnings Call Transcript 2024-Q1

[Simon Hagbart Falk, executive]

Hi, everyone. Thank you for joining us on Jyske Bank's conference call for the financial results for the first quarter of 2024. This is Simon Hagbart from Investor Relations, speaking. With me, I have Jyske Bank's CEO, Lars Morch; and CFO, Birger Nielsen. Lars and Birger will walk you through our prepared remarks. Afterwards, we will open up for Q&A. I will now hand over to Lars.

[Lars Stensgaard Morch, executive]

Thank you, Simon, and thank you all for joining here. We've had a solid start to the year. The net profit of approximately DKK 1.3 billion in the first quarter of 2024 is on par with our highest Q1 net profit so far and is a full 51% above the levels in just 2 years ago. This is, of course, underpinned by higher level of interest rates and the integration of Handelsbanken and the Handelsbanken Danish activities.

However, the strong result still underlines the resilience of Jyske Bank's business model as activity levels has been remarkably low in the Danish housing market in Q1 with sector lending and remortgaging offers at an all-time low for this time of the year. At the same time, we managed to keep the underlying cost inflation under control despite a period of high inflation. We believe there are further synergies to be reaped in the coming years following the acquisition of Handelsbanken Denmark and PFA Bank as we continue to implement efficiency measures.

Our customers continue to navigate well in a somewhat subdued economic environment with high ongoing uncertainty. This has helped in keeping a low level of loan losses, the 1 basis point booked in Q1 can be attributed to a DKK 100 million post margin adjustment for potential CO2 tax on the Danish agriculture. Our post-model adjustments, those are then approximately DKK 2 billion, equivalent to more than 4x the total amount of loan impairment charges booked since 2015.

Lastly, having rebuilt our capital position following the acquisition of Handelsbanken Denmark, we are very pleased to announce that we are resuming share buybacks with a new program of up to DKK 1.5 billion.

If we move forth and take a look at some of the figures, we are keen at looking at our at our results in terms of earnings per share and earnings per share in the first quarter was DKK 19, DKK 19.5, the same quarter last year, which is also a flattish development. It's approximately 1/4 of the highest level in our projections for this year. And obviously, you cannot take Q1 and times 4 and get the result, but it's certainly within our expectations.

On the right-hand side, you see the volumes and generally a strong development in the AUM due to a combination of the development of current AUM and new inflow, partly due to PFA Bank. If you then look at the deposits, our deposits volumes are flat when it comes to retail deposits and they show strong stickiness due to season and due to some larger deposits from large deposit holders, there's a decline during the quarter. But the key deposits from retail customers are -- has again proven to be very sticky.

In the left-hand side of this one, if you look at the bridge on return on equity year-on-year, there are 2 major process that is, the net interest income is up compared to last year, and there's a plus, maybe not a major plus, but a plus also on the loan losses. On the negative side, predominantly related to tax and the AT1 issuance and also lower net fee income. We take it from 13.2% to 11.4% this year.

Turning to our expectations. We have communicated that we are targeting a net profit of between DKK 4.3 billion and DKK 5.1 billion this year for the entire year. That is lower in 2024 than in 2023. And that also goes for the core income, where we expect that will be lower mainly due to value adjustments. The core expenses will be largely unchanged, which is still our expectation.

Loan impairment charges can be a bit higher in '24. But as you've seen from the report today, asset quality is still under good control. There's a post-model adjustment related to the CO2 tax on agriculture. And with that one, we stand with a buffer of DKK 2 billion.

The earnings per share is expected to be in between DKK 64 and DKK 76. And as you've seen, the first quarter was DKK 19. So we are well within that range. Capital, 15% to 17% CET1 ratio and 20% to 22% capital ratio. And as we communicated earlier this year, we expect to be moving into a situation where we, on an annual basis, pay out 30% of the previous year's results in cash dividend. And use share buyback as the tool on top of this, but then obviously still securing a safe and good capital base. Birger?

[Birger Krogh Nielsen, executive]

Yes. Thank you very much, Lars. And I'll just give a few insights into some of the relevant and interesting topics in the first quarter.

Looking at NII and a bridge from Q4 to Q1, volumes were in Q1, as Lars said, stable in a market with stable volumes, i.e., stable market shares. And the 4% drop we see in NII is driven by a few dominant factors. One is the change in pricing. We changed transaction accounts and savings accounts pricing on the 27th of November, and we have seen an ongoing, as expected, clear and visible migration into the savings products during the last few quarters, and it's also imminent here in the first quarter of this year.

And secondly, we have listed our interest expenses due to 2 issuances: one in November, an NPS; and one on the first of February, a Tier 2 instrument of EUR 500 million each. And on top of that, looking at the right end of the slide, you can see that there is a green box showing the higher income from our bond portfolio as a mitigating factor against the development in interest rates.

Moving on to the next slide. We have given you a split in deposits, which is more or less even between corporate and private clients deposits, 50 more or less each. And if you look at the left-hand side, you can see that approximately 2/3 of the corporate deposits relates to money market reference rate deposits or time deposits, and is up significantly from 2 years ago. It's a relatively steady situation as of now when it comes to corporates.

Moving to the right-hand side, you see private client deposits. And if you take the deposits with savings and time deposits and transaction accounts, it is -- sorry, savings and time deposits, it's now consuming around 60% of the bucket coming from around 1/3 2 years ago. So you see this gradual shift into savings and time deposits which is expected and which we, to some extent, also expect will continue in the coming quarters.

The fee income is at the same level as it was around in Q3 of last year, around DKK 600 million, but slightly down from Q1 of last year, 8%, and is driven mainly by 2 factors: one is a very low activity in the sector for mortgage lending, all-time low level here in Q1; and the second is one-off fee expenses related to a covered bonds issuance in Jyske Realkredit. And please be aware that PFA Bank and the fee income is included in this fee income development in Q1, but also be aware that the administration and management of PFA Invest funds will be transferred to BankInvest share in the second quarter of this year. So going forward, the return from this activity will be income from our BankInvest shares and not fee income going forward.

Yes. Looking at the cost management of the group, it's still under control. We've said, all in, we expect relatively stable development in '24 versus '23, and that still applies. If you see the development in retrospect versus Q1 last year, we are up 3% exclusive of one-offs, and this lift in 3% relates to the inclusion of PFA Bank, salary increases of 4.5% and the removal of Great Prayer Day, which cost us closely to 0.5 percentage point.

Looking at the one-offs, Handelsbanken and PFA Bank covers DKK 22 million in Q1. And there are other elements to it as well. One is a VAT adjustment due to the different development in income between Jyske Finance, whether it's an income of VAT and Jyske Bank, whether it's an expense of VAT, and that leads to a lift in cost of a little bit more than DKK 30 million this quarter.

The credit quality is still very high. We see small portfolio movements in Q1, a few single line changes, which is natural. But average wise, since 2014 where we merged with Realkredit, now Jyske Realkredit, we have seen an average impairment charge of only 8 basis points. And in the same period, we have built up the DKK 2 billion in post-model adjustments, which is around 40% of the total balance.

In Q1, we took and booked a cushion against the proposed carbon tax on agriculture of DKK 100 million, and it actually more than explains the net expense of DKK 82 million in the quarter. So a very stable credit quality still here in Q1.

And then finally, looking at the capital. We will initiate a buyback program of DKK 1.5 billion starting here in Q2. And we will keep the capital levels still in the upper half of 15% to 17% as we announced by year-end. And as you can see here in Q1, the CET1 ratio dropped a bit from 16.9% to 16.6%. And the explanation is on top of the profit reservation of capital for both expected dividend as well as expected share buybacks, the latter part being a consequence of an EBA answering guidance which was given in January of this year.

Looking at the risk exposure, the total risk is lifted by 2.5% in the quarter, driven by 3 factors: the main one is that operational risk due to higher income in the group is listed DKK 3.5 billion, that's a yearly change; market risk and credit risk as another DKK 1 billion each, summing that to DKK 5.5 billion or DKK 2 billion -- or 2.5%. And so if you exclude the reservation of capital for buybacks, we are almost even at 16.8%.

And then going forward, we will, of course, manage the buyback program properly. We will build or stabilize the capital levels after the inclusion of the full DKK 1.5 billion in the capital reservation in Q2 when we start the program of buying back shares. And of course, we will try to manage the CRE buffer and the inclusion of Basel IV also properly, the effect will show up in Q2 of this year, respectively, Q1 of next year. The expectations are unchanged, approximately 2 percentage points, and we hope for no double counting of buffers from the regulators. There are some hope in the market that this will happen, and it will also, of course, be a positive for us looking into '25.

[Simon Hagbart Falk, executive]

Thank you, Lars. Thank you, Birger. We'll now open up for questions.

[Simon Hagbart Falk, executive]

[Operator Instructions] I believe the first question in line comes from Asbjørn Mørk from Danske Bank.

[Asbjørn Mørk, analyst]

Yes. And I have 2 questions basically. One, we could look at your top line to begin with and the bridge you gave on Slide #6. Maybe if you can elaborate a little bit on the actual development in NII in the different months in Q1 because there seems to be quite a lot of impact from your -- from the funding side. And then I guess some of the deposit headwind was basically the spillover from the changes you did in late -- or in Q4. So how did you actually see the NII developed throughout Q1? Was it relatively stable? Or did it continue to put a gradual sort of decline from January to March?

[Birger Krogh Nielsen, executive]

Yes. So of course, looking at the development throughout the quarter, where we are impacted by the number of interest days -- [indiscernible] as you know, but I mean, March and January had the same number of days of interest, and they were approximately at the same level, albeit with some movements between what comes from lending and other NII and expenses for deposits.

[Asbjørn Mørk, analyst]

Okay. So March versus January was basically flat on NII that's what you said?

[Simon Hagbart Falk, executive]

Approximately -- if anything, very, very slightly down.

[Asbjørn Mørk, analyst]

Okay. That's helpful. And then on your -- on the buyback, just looking at the time in the year you're going to initiate a buyback in June. I guess with the limitations from the FSA, you're not going to be allowed to add to the buyback as long as the current buyback run. So, I guess, question one, this is what we should expect for the full year of 2024? Secondly, how should we look at this buyback in terms of does it relate to the '23 profits, does it relate to the 24 profits? Should we expect because it's basically 1/3 of your guided profits for '24, if we just pay [Indiscernible] cost, is that the way to look at it? Hence, we should add 30% dividend in addition to that? And that's your new payout ratio or should we rather see as '24 that you pay 30% in dividends and then you'll do a somewhat larger buyback next year?

[Lars Stensgaard Morch, executive]

Yes. Thank you, Asbjørn, for the question. The buyback will start on the third of June out for practical reasons. We have historically made some uplifts in existing programs. So we see that as a possibility, if we look at it in a historic context, and not mentioning anything related to this one, but that has been the case historically for Jyske Bank. The Board will view this on a quarter-by-quarter basis. As I said, we will stabilize and, if needed, rebuild the capital levels in the coming few quarters and of course, the Board has a close attention to the level and the possibilities for further distribution.

And talking about the -- how you relate this buyback to a certain year, well this is a '24 activity and as well as we reserve dividend capital for dividend payout will also be related to the '24 earnings.

[Asbjørn Mørk, analyst]

So basically, if you don't add to the buyback program, let's say, this is 1/3 of your '24 profits and you pay 30% dividend. So then 63% payout is what we should expect for the full year '24. Is that how we should look at it?

[Lars Stensgaard Morch, executive]

Yes. Yes, the DKK 1.5 billion is related to the '24 earnings and the dividend as well.

[Simon Hagbart Falk, executive]

Yes. So it's basically 30% dividend payout. And then on top of that, 26% payout for buybacks, and that's based on the DKK 1.5 billion that we've just announced, comparing that with the level of earnings last year.

[Lars Stensgaard Morch, executive]

But when you talk about relevance for the earnings that we can use for buybacks is related to the actual year.

[Asbjørn Mørk, analyst]

But you seem to be referring both to '24 and '23, that creates a little bit of confusion in some...

[Lars Stensgaard Morch, executive]

Yes. No, let me just clarify, Simon, and we are both right because the calculation 26% is actually DKK 1.5 billion versus the DKK 5.9 billion of shareholders' earnings in '23. But going into '24, we will -- the DKK 1.5 billion relates to this year's earnings.

[Asbjørn Mørk, analyst]

Okay. So basically, in your discussions with the FSA and looking at their 100% roof, this has been treated as a '24 distribution and will be basically compared to your '24 profits.

[Simon Hagbart Falk, executive]

Yes, that's correct. The percentage is basically just set in dialogue with [indiscernible], and that's based on some historical data. And as Birger mentioned, 2024 is what sort of foundation for the buyback. So you're right.

[Asbjørn Mørk, analyst]

Okay. Okay. One of your peers was out the other day saying that they cannot lift or initiate a new buyback as long as the current buyback is still running. You seem to have a different view. So you would still see the opportunity to add to the buyback later in the year?

[Birger Krogh Nielsen, executive]

No, we are not discussing that, but I just referred to what we've done historically. And of course, we will make sure that what we do is fully within line of what the regulators accept.

[Lars Stensgaard Morch, executive]

So Asbjørn, I think what you should view this as is that, as described earlier, we intend to, in the future pay out a cash dividend of 30% of the previous year's result. And then on top of that share buybacks to the extent possible within still a solid capital level. And this year is a little bit of a caveat because that's the first year where we can implement this. And this is obviously based on a historical situation where we come out from a little bit lower capital levels after the acquisition of Handelsbanken Danish activities. So we're modeling into the structure that we informed about earlier this year.

[Simon Hagbart Falk, executive]

Thank you, Asbjørn. Next question in line comes from Martin Birk from SEB.

[Martin Birk, analyst]

Just following along the lines of NII. What kind of -- we've talked about your hold-to-maturity portfolio before and now that we are looking into a rate cut environment. What kind of -- sort of longer duration sensitivities do you have on NII?

[Simon Hagbart Falk, executive]

Yes. So we haven't provided exact guidance on -- but we have provided quite clear NII sensitivities. So I think I would refer to those being DKK 500 million in the first year of the 1 percentage point change, and that rising to DKK 0.7 billion in year 3. And that dynamic should also expect it on the way down.

[Martin Birk, analyst]

Okay. All right. Okay. Very clear. And then coming back to what one of your peers said the other day. That particular peer also talked a lot about pent-up demand in terms of loan growth. Is that anything you see materializing within the foreseeable future in your books?

[Birger Krogh Nielsen, executive]

I think very short term, we are looking into a stable environment with relatively stable volumes as we saw in Q1, both for Jyske Bank and for the market as a whole. Of course, there is a hope that we can see a slight uplift and some experts have been out in the market stating that the economic environment sentiment in general may be better than what is expected so far. But we are a little bit cautious here because we want to see that our -- the credit quality in the book will perform well, and that's the best benchmark we can have looking into the performance of the general economy.

[Martin Birk, analyst]

So you -- basically, you don't sit with the pipeline that suggests that you should see any changes in later part of 2024?

[Lars Stensgaard Morch, executive]

So it's always difficult in a bank like ours with not that many very large new exposures, but a solid development on existing clients and a number of smaller clients that does not individually move the volumes to an extent that you will be able to see them. We think there's a little bit -- having said that, I think we see a little bit of further activity now in our business banking segments. But let's see because other clients are paying back their loans. So it's always difficult to see with any great detail what is happening here. But if anything, there's a little bit of a positive sentiment.

On the other hand, I think it's worth also listening to some of the people from the transportation business, and the CEO of Maersk was out just the other day saying he did not understand, at least that was how I understood him, that there's a lot of positivity in the market at the moment because in terms of transportation, and shipping there's not that many goods being shipped around. And we also see that from some of the other transportation companies. So the gut feeling is, if anything, maybe the economy is moving a little bit up in terms of speed, but I think it's too early -- too close a call to be very precise on this.

[Martin Birk, analyst]

Okay. Very clear. And then moving on to the share buyback. Now we talked about whether it's technically possible to top up your existing share buyback program. But sort of from all practical purposes, given that you're looking to acquire roughly shares worth of 8 million per day. And I think that you have a constraint around 10 million, maybe 11 million per day given that you want. You probably only want to be 15% of the daily traded volume. Is that a fair calculation?

[Birger Krogh Nielsen, executive]

I think it's a fair calculation that we will have a decent buffer against the maximum of course. And when we do a third-party agreement, they also find it suitable that we manage the program the way that you just referred to.

[Martin Birk, analyst]

What do you see as a maximum?

[Birger Krogh Nielsen, executive]

Well, of course, you have the maximum threshold of 25%, but 10% to 15% is the normal guidance, I think when you talk about vendors, we talk with vendors, sorry.

[Martin Birk, analyst]

Okay. Very clear. And then final question from my side. I guess this one goes to you, Lars. You've been fairly vocal in the Danish media today in regards to the total credit agreement. Could you please enlighten me what kind of tools do you have left in your toolbox to change this into your favor?

[Lars Stensgaard Morch, executive]

I believe that no decision has been made on that agreement from the competition authorities so far. They've been looking at this for a couple of years plus and new creditors put forward their suggested solution. One has to remember that there's not -- this discussion is not due to Jyske Bank. This is the competition authorities having concerns about competition. We've had one theme that we brought up and asked about. And that theme is potentially part of what they're aiming at solving here.

We don't know how this is going to pile out. There are different opportunities. The model that is on the table now does not change a lot. And does not change at any meaningful level at all. Then there's a possibility of the competition authorities going a little bit further than what is on the table at the moment, or there's a possibility of the competition authorities taking what is on the table now off the table. And our visibility and to see what they'll do is not better than [Indiscernible] because we're not a part of this.

But our expectation is, and given also the view that I noticed around from people who do know the industry, I think people would be surprised if it ends where it stands at the moment. How big the changes will be to what is on the table, I don't know. But we will monitor this closely. We believe that we have opportunities, no matter how this piles out. And that's basically what we are focused at that is to have the best possible outcome for Jyske given the decision that the competition authorities will reach. And I believe there are potential attractive solutions no matter which of these 3 models that we will end up with. And I guess that's our job to make sure that it ends the best possible way.

[Martin Birk, analyst]

But assuming that the competition authority is going to stick with the hearing letter that they sent out in April. I mean, this is the second hearing letter they sent out. I guess sort of their suggestions must resonate in their ears, otherwise, they wouldn't send it out. Are there any sort of higher instances of court that you can take this to? Or will that just be the verdict and that's sort of it and then you have basically no other tools in your toolbox?

[Lars Stensgaard Morch, executive]

Yes. First of all, I'm uncertain if the assumption is right that they agreed to this one. There was an article during the weekend where they said, this is basically what Nykredit has written. And this is now sent out in a hearing, and one could not take for granted that they agreed on this. I've not seen the article myself, but I was told that, that was the case.

And technically, it can be that they agreed to this. It can also be that, that is as far as they can come with a negotiation. And then they want to put as fast they can come out in the market for comments. And I believe that they are now reading through the comments from the individual banks. I think we look at our possibilities when we know how they're going to land this one.

[Martin Birk, analyst]

Okay. Okay. But I still don't think you sort of completely answered my question. If it turns out to be -- if it goes against you, what are the sort of -- do you have any legal tools? Are there any tools at the EU?

[Lars Stensgaard Morch, executive]

Yes, we might have that, but we expect this to come to an outcome that is better or we hope that they will come to an outcome that is better than what has been described in the media so far. Then we have alternative tools, and we are aware of what we can do if it is a not very acceptable solution that will be put on the table.

[Simon Hagbart Falk, executive]

Thank you, Martin. At the moment, there are no further questions in line. Will -- if there are any further questions, please feel free to raise your hand.

[Martin Birk, analyst]

Yes, I have. So I can go again then?

[Simon Hagbart Falk, executive]

Yes. Of course, Martin.

[Martin Birk, analyst]

Just a quick question on asset quality. I see your comments on asset quality. And I also see this extra PMA that you're taking in the quarter, but underlying there's nothing really that is pointing to any sort of any deterioration at all. And I guess my question goes on sort of these PMAs. If everything continues as it is right now, how do you view them? Has this been effectively turned into CET1 capital? Or should we actually expect these PMA to be deployed in some form of way within a foreseeable future?

[Birger Krogh Nielsen, executive]

Yes. Martin, I think that the PMA buildup is a consequence of a cushion against uncertainty, dialogue with the FSA in the industry, et cetera, et cetera. The outbreak of the coronavirus back in 2020. That being said, I can't foresee that we'll come back to levels where we were pre-COVID, i.e., in our case, DKK 500 million, DKK 600 million from the DKK 2 billion.

But I can say that we will use this tool more actively than what we have done over the last 2 to 3 years because in the last 3 years, we built it up. But any deterioration in any subsegment in the portfolio will be assessed against this PMA before we use them and book them as a -- and rebuild them as an extra expense. So expect us to be active in the next quarters using this tool as long as it's not a systematic deterioration of trend which is more all income passing than just a single name deterioration here and there.

[Martin Birk, analyst]

Okay. But I completely agree with your view that it's not going to go back to DKK 500 million, DKK 600 million. But do you think going back to DKK 1 billion or DKK 1.5 billion is realistic?

[Birger Krogh Nielsen, executive]

Well, that is a difficult question because it all boils down to the uncertainty that we see in the market in the next 1, 2, 3 years. And as of now, you can see the split in the quarterly report. And that split will gradually shift from time to time from quarter-to-quarter. Inflation has fueled up and booked some millions. And now we may shift away from inflationary risk to other sorts of risk.

So quarter-by-quarter, this is a dynamic instrument and expect us to use it. As I said, more actively also when it comes to deteriorating single names as opposed to what we saw in the last 3 years where we build it up on uncertainty that hasn't yet spilled out in any expenses, real expenses and losses.

[Martin Birk, analyst]

When do we think we reach a point where auditors, say, start to complain about this?

[Birger Krogh Nielsen, executive]

Well, I think the FSA has, over the last years, shifted a bit in their attitude towards this, and they fully find it suitable that we have a large proportion of the balance in PMAs as opposed to what we saw if you go back 5, 6, 7, 8 years. So there's been a shift in the attitude with the authorities. And I think the auditors need to rely on that and adhere to that view.

[Simon Hagbart Falk, executive]

Thanks again, Martin. There are no further questions in line. I assume there are no one else wanting to ask a question. So I would like to thank you for participating in today's conference call. A recording of the call will be made available on our IR website in the coming days. Please do not hesitate to contact us if you have any further questions. We appreciate your interest in Jyske Bank, and wish you a nice day.