The history of Jyske Bank: A tale of merger and expansion
This is an overview of some of the most important events in Jyske Bank's history since its foundation on 7 July 1967.
Jyske Bank was founded
On 7 July 1967, four local banks in Central Jutland merged to gain a competitive edge within the banking sector.
The banks were: Silkeborg Bank, Kjellerup Bank, Kjellerup Handels- & Landbrugsbank and Handels- & Landbrugsbanken i Silkeborg.
Naming the bank posed a challenge. The name must consist of no more than two words and be easy to pronounce – also in English. The name chosen was Jyske Bank, which was approved by Mr E. Sveinbjørnsson, Head of the Banking Supervisory Authority, who noted: ”That’s quite comprehensive, isn’t it”.
The new bank was also noticed in New York: Chase Manhatten Bank complained about the new logo, which had something in common with Chase’s logo. The complaint was rejected. Jyske Bank’s first CEO was Poul Norup, Master of Laws, Knight of the Dannebrog, who was the Managing Director of Silkeborg Bank. Mr Norup was the Bank's CEO until he retired in 1989. During Mr Norup’s term in office, Jyske Bank expanded from a position as Denmark's 18th largest bank with 8 branches and 163 employees to a nation-wide bank with 152 branches in Denmark, five outside Denmark and more than 3,000 employees – at the time the only nation-wide Danish bank to be based in the provinces.
Banken for Brædstrup og Omegn joined Jyske Bank
The Brædstrup bank also took part in the original negotiations about a merger, but the merger proposal did not win the necessary majority in general meeting. Already at around the turn of the year, the bank renewed its application of joining the merger. The Managing Director, Mr Graversen, was a kind of bait. He had left the bank at Brædstrup and joined Vejle Bank. On 1 January, he joined Jyske Bank’s Management Board. At a new general meeting, the shareholders of Banken for Brædstrup og Omegn approved the proposal to join Jyske Bank.
The beginnings of the subsidiary Jyske Finans
Jysk Diskonteringsselskab was the name of the company of which Jyske Bank bought a 10% stake for DKK 5m. The company was established in 1959 and its original purpose was car financing. Later – in 1984 – Jyske Bank bought the remaining share capital, and the company was renamed Jyske Finans. The company’s three business areas were car loans, boat loans and tailored corporate financing.
Jyske Bank set up in Copenhagen and was listed on the stock exchange
In Copenhagen Jyske Bank bought the property of H.C. Andersens Boulevard 9-11 which had till then housed Den ny Laanebank. The branch was opened in makeshift rooms in July.
The Jyske Bank share was listed on the Copenhagen Stock Exchange. The opening price was DKK 265.
Cooperation between regional banks
A cooperation was started with five other regional banks. The object was to make various organisational and marketing areas more efficient. The six members were: Frederiksborg Bank, Jyske Bank, Midtbank, Sjællandske Bank, Varde Bank and Vendelbobanken.
Samsø Bank joined and Odder Landbobank tried to and failed
Jyske Bank continued its expansion, with Samsø Bank joining in 1970. The expansion might have been much larger. A merger agreement with Odder Landbobank had been reached and approved by the Supervisory Boards and Management Boards of both banks. But at the decisive general meeting at Odder Landbobank, the votes in favour of the proposal were 29 short of the majority.
Odder Landbobank joined
On 15 March, Jyske Bank completed the merger with Odder Landbobank that had been prepared the year before. This time the proposal won the majority.
Jyske Bank breached the interest-rate agreement
For years, the Bank had in vain urged the bank organisations to terminate the agreement, which since 1935 had determined interest rates for various deposits types. Jyske Bank resigned from the Association of Danish Provincial Banks and thus from the Danish Bankers’ Association and raised its interest rates for the longest-term deposits.
The result was an interest-rate row. But it was not one of open confrontation. Discreetly, the management of the Association of Danish Provincial Banks tried to make the Danish Central Bank use force and take action against Jyske Bank. Governor Sunesen of the Danish Central Bank rejected this.
Jyske Banks IT-tasks were gathered under one roof
Until September 1971, the majority of the bank’s bookkeeping tasks had been carried out by EDB-centralen at Herning, but were now entrusted to Silkeborg Datacentral.
Silkeborg Datacentral was founded by Silkeborg Bank in 1966 together with the local timber merchant H. Reimer Nielsen and the company Lysbro Fabrikker. The object was, among other things, to be independent with respect to developing IT. Initially, Silkeborg Datacentral developed a payroll system for the hospital of Silkeborg. This was the beginning of a specialist business area for Silkeborg Datacentral. In 1975, Jyske Bank acquired the rest of the share capital.
The IT banking activities were later transferred to Jyske Bank's core organisation, whereas the original payroll-system tasks are still carried out by the subsidiary, which is now called Silkeborg Data.
The IT operating activities were later taken over by JN Data, which was established in 2002 in cooperation with Nykredit.
Expansion continued through extension of the branch network
The strong growth of the Bank over the first five years was much higher than expected. Growth had been based on geographical expansion through mergers with minor local banks and the opening of branches in new areas. The number of employees doubled during this period. New branches were opened at Aarhus, Copenhagen and Randers.
Jyske Bank's 10-year anniversary
The Bank’s 10-year anniversary on 7 July caused a surge in the number of shareholders, from 2,182 to 15,880 over the year.
In connection with the anniversary, the Bank offered Jyske Bank shares for a nominal amount of DKK 800,000 for sale at a favourable price. The offer price was the market price less 10 points, and the offer proved such a hit that all the shares offered were sold in the course of the morning. The inflow of customers and the number of accounts grew. In 1977, almost 30,000 new deposit accounts were opened, just over 6,000 of them of various special deposit types. But there was also a lively demand for Budgetkontoen (the budget account) which offered payments service.
The unmanned Cayman Islands Branch was established
Due to the low loan ceiling and thus the growing need of raising foreign-currency loans to customers, Jyske Bank established a branch in the Cayman Islands. The branch was closed in 1994, when the circumstances that led to its establishment had ceased to apply.
Jyske Bank acquired Finansbanken
This was a landmark year in the history of Jyske Bank. After five months of intense negotiations, the proposed merger between Finansbanken and Jyske Bank was announced on 10 October.
Jyske Bank's branch network was now nationwide, and thanks to the now 114 branches, it gained even better access to new customer groups. Also, existing customers could remain customers, even if they moved to other parts of the country. With the acquisition of the Finanz- & Investmentbank, Jyske Bank became the only Danish bank to have a wholly-owned subsidiary in the financial centre of Zurich.
The merger was considered a stroke of genius, as the two banks complemented each other perfectly.
Check account paying interest at 10 %
A striking novelty was a cheque account offering interest at 10%. The product was called ”Finanskontoen” and customers paid DKK 5 for every withdrawal from it. The account was given a very positive reception, as many customers grumbled at paying for other customers’ overconsumption of cheques.
The catfish in the tank
Poul Norup – the bank’s first CEO – broke with the dusty Danish banking community, which was until the early 1970s characterised by a lack of competition. Following a number of unsuccessful attempts to change the trade association’s interest-rate agreement, Mr Norup took the consequences and withdrew Jyske Bank from the trade association in 1971 to release the bank from the agreement that had until then put a lid on the free competition in the sector.
Such acts, the Bank’s significant growth and a number of unconventional initiatives gave Jyske Bank and Mr Norup the epithet “the catfish in the tank”. On the surface not a particularly attractive description, but experts will know that the catfish's active behaviour aerates the water and contributes to keeping the other fish in the tank alive.
Mail order bank
Jyske Bank was the first Danish bank to offer mail-order banking. Suddenly it was possible for people living in areas with no Jyske Bank branch to bank with Jyske Bank. The mail order concept enabled customers to make deposits and withdraw money through the village postman.
Vendelbobanken had run into problems, which resulted in an inquiry to Jyske Bank about a merger. The two companies already had a good relationship within the regional bank association.
The negotiations resulted in a merger between Jyske Bank and Vendelbobanken: Jyske Bank acquired 22 new branches and a solid foothold in Northern Jutland.
Jyske Bank opened a representative office in London. In 1986, the office was converted into a branch of Jyske Bank.
Office at Costa del Sol in Spain
Jyske Bank opened its subsidiary in Spain in December. Jyske Bank, Spain, opened as early as 1984 as a representative office. The purpose was – and still is – to offer advisory and banking services to affluent Danes and customers of other nationalities who live in Spain. Later on, the bank was again converted back into a representative office.
Launch of Totalkonto
Jyske Bank launched the Totalkonto. It was a great success. From the introduction in September until the end of the year, 35,000 customers decided to open Totalkonto accounts. 14,000 of them were new customers.
Gl. Skovridergaard (conference centre) joined the group
Jyske Bank acquired the conference centre Gl. Skovridergaard, which made it possible to gather all training and educational activities of the Bank in one place. The former sanatorium was extended and refurbished into an up-to-date conference centre, which also made its facilities available to customers outside the Jyske Bank Group.
Offices in Hamburg and Gibraltar
At the turn of the year 1986/87, Jyske Bank acquired Hamburger Handelsbank. The bank was renamed Jyske Bank (Deutschland) AG and had 19 employees. Later on, the bank was converted into a branch of Jyske Bank. In early October, Jyske Bank signed the final agreement in connection with the acquisition of A. L. Galliano Bankers Ltd. in Gibraltar. The bank was renamed Jyske Bank (Gibraltar) Ltd. Jan-Henning Spjeldnæs, Head of Jyske Bank’s Legal Department, Master of Laws, , was appointed Managing Director. The bank had 40 employees.
Articles of association amended to protect against hostile takeover
The Bank's amended Articles of Association, which were to protect against hostile takeover, were approved by the Danish Commerce and Companies Agency and the Danish Financial Supervisory Authority. Initially, the Supervisory Board of the Copenhagen Stock Exchange declined to approve the amendments, but Jyske Bank appealed the decision to the Danish Financial Supervisory Authority, which decided in favour of Jyske Bank’s amended Articles of Association.
Holstebro Bank joined
In October 1988, Holstebro Bank ran into problems. After demanding that major provisions to be set aside, the Danish Financial Supervisory Authority requested that the bank entered into merger negotiations, and Jyske Bank was a natural merger partner.
The merger between Jyske Bank and Holstebro Bank was unanimously approved at the general meetings of the two banks in March and April.
Jyske Bank acquired 50% of Nordisk Factoring's share capital of DKK 12m. In 2002, Nordic Factoring became a wholly-owned subsidiary.
Jyske Bank’s CEO since its foundation in 1967 – Mr Norup – retired. The appointment of Kaj Steenkjær as new CEO heralded a shift in style – but the direction of the Bank was maintained.
Totalkredit was established
Jyske Bank was an active player in the establishment of Totalkredit (a Danish mortgage credit institution), which was a revival of “Provinsbankernes Reallånefond”. The distribution of mortgage-credit products turned out to be a very profitable business for Jyske Bank and the other banks in the co-operation.
Jyske Bank's strategy was determined
To attain its targets, Jyske Bank formulated the following strategy:
”Jyske Bank will be the parent company of domestic and international subsidiaries. The Bank’s owners must be direct shareholders in the parent company". The bank wants a wide circle of shareholders and endeavours to restrict individual shareholder's number of shares, so that no individual shareholder has a dominating effect on Jyske Bank's future.
Fraudulent conspiracy against the subsidiary bank in Gibraltar
An ordinary credit review revealed increases of several existing loans and the establishment of a number of new loans for the financing of large plots of land in Spain. Although the loans exceeded the authority of the then Managing Director of the subsidiary bank, Jan-Henning Spjeldnæs, the increases and the new loans were not presented for approval to the Board of Directors of Jyske Bank Gibraltar. The situation resulted in the dismissal of Jan-Henning Spjeldnæs. During 1991 and 1992, several investigations were made, which resulting in provisions of approx. DKK 500m being made.
It was decided to file a civil lawsuit, claiming a fraudulent conspiracy against the Bank. Since Mr Spjeldnæs was living in the UK, the lawsuit was commenced at the High Court in London.
Jyske Bank's 25-year anniversary and a year of crisis
On 7 July, Jyske Bank celebrated its 25-year anniversary after 25 years of sustained improvement of the Bank. The anniversary was celebrated with a big party for the employees. Also, the bank published a book to celebrate the anniversary, written by Ole Lange, Ph.D, with the title “Med jyske Øjne” (Through Jyske Eyes).
In the final sentence of the book, Mr Lange wrote that the future might be tough for Jyske Bank's shareholders, customers and employees. Nobody had foreseen that it would be as tough as a loss of almost DKK 1bn. The group recognised losses and provisions of DKK 1,262m, of which DKK 344m covered additional write-downs with respect to Gibraltar.
The Bank would rather have been without one-off events like the Gibraltar case, but the result generally reflects society and its development.
Jyske Bank's mission and values
Jyske Bank formulated its mission and values in “Jyske Bank is – shareholders, customers and employees". One of the principles was and still is open and honest communication.
After seven years of economic slowdown, the Bank expected that losses and provisions, which came to DKK 844m for the year, would decline.
Despite the crisis and the adverse business trends, Jyske Bank changed its traditional decision-making process to be two-level case handling. The result was an efficient, responsible and decentralised process.
Strategic three-year plan
Jyske Bank’s management prepared a three-year strategy plan, according to which the Bank would continue to focus its resources on traditional banking operations. The Bank chose not to offer casualty-insurance products, realtor services, preparation of deeds etc. Instead, life-insurance and mortgage-loan products were offered in cooperation with other financial companies.
The business concept Jyske Differences
To emphasise that Jyske Bank makes a difference, the Bank introduced the business concept 'Jyske Differences'. The aim was to make the differences more visible to everybody, and the concept included a new interior design of all the branches. Customers were given more room and were no longer confined to the restricted area in front of the cash desk. Focus on advisory service and on customer service in general were also key words to highlight the differences.
The new business model was tested at the branches of Kolding, Esbjerg, Brønderslev, Viby, Holbæk and Falkoner Allé in Copenhagen. Desks and counters were removed and the advisers sat in teams at large round tables, where customers could view the monitors. There were posters on the walls and subdued music. Customer meetings could take place in the café corner, at the large round advisor tables or in the newly furnished conference rooms. The new shop front signalled that this was a bank with its own identity.
Anders Dam new CEO
The succession process of the Management Board continued. The CEO since 1989 – Kaj Steenkjær – retired after 43 years at the bank, 17 of them as a member of Jyske Bank’s Management Board. Anders Dam, who had come back to Jyske Bank in 1995 to join the Management Board, was appointed new CEO.
New structure of the branch network
The five regions were converted into three areas, each with its own divisional centre. Divisional centres with the necessary know-how to support the branches were established at Viborg, Vejle and Copenhagen (Vesterbrogade).
Jyske Bank opened its Netbank
Jyske Bank’s distribution network was extended with Jyske Netbank. Via the Internet, customers could conduct various banking transactions and pay with the Dankort for goods bought on the Internet.
The battle at Vejle
All the Bank's employees were invited to a conference at Vejle to hear about the Bank’s plans up to 2002. The conference was named “The battle at Vejle” and featured a case describing a takeover attempt by a Swedish bank. It gave solid backing to the Bank’s overriding wish to remain independent.
Strategy conference at Vejle once again
All employees of the Group were invited to a presentation of the Bank’s next strategy plan, JB2005 (values, company mission and vision).
Establishment of JN Data
At the beginning of the year, Jyske Bank signed a strategic cooperation agreement with Nykredit which, among other things, resulted in the establishment of JN Data – a joint IT operations company.
ATP sold its stake in Jyske Bank
A long cooperation with ATP about a stake in Jyske Bank ceased. ATP sold its shares. There was disagreement, among other things, because Jyske Bank stood firm on its Articles of Association with respect to restriction of ownership and voting-right limit.
The sale of Totalkredit
Jyske Bank sold 55% of its shares in Totalkredit to Nykredit which got options for the remaining shares. The sale generated a pre-tax profit of DKK 1,205m.
Two funds were established
The two funds – Jyske Banks Medarbejderfond (Jyske Bank's Employee Fund) and Jyske Banks Almennyttige Fond (Jyske Bank's Non-Profit Fund) were established. It took some discussion before the proposal was adopted at the general meeting.
Poul Norup passed away
Jyske Bank’s first CEO, Poul Norup, Master of Laws, Knight of the Dannebrog, died on Monday 16 August aged 78.
Mr Norup was the CEO of the Bank until he retired in 1989. During Poul Norup’s term in office, Jyske Bank expanded from a position as Denmark's 18th largest bank with 8 branches and 163 employees to a nation-wide bank – at the time the only nationwide bank to be based in the provinces – with 152 branches in Denmark, five outside Denmark and more than 3,000 employees.
Magasin was sold
The bank sold its Wessel & Vett shares terminating its long commitment to the Copenhagen department store.
Jyske Bank opened offices in Cannes, Warsaw and Echt in Holland
Jyske Bank Private Banking opened representative offices in Cannes and Warsaw, and the Bank acquired a controlling interest in Berben's Effectenkantoor B.V. in Echt, the Netherlands. The Jyske Bank Group was represented in nine European countries.
Record-high pre-tax of DKK 2,202m
At DKK 2,202, this was the best-ever annual pre-tax profit of Jyske Bank.
"Letpension" is being established
Jyske Bank joined a circle of Danish financial institutions to establish a joint life insurance and pension company named Letpension.
The Gibraltar case came to an end
On 15 July, the Western Division of the Danish High Court (Vestre Landsret) decided against Jan-Henning Spjeldnæs – the former Managing Director of the subsidiary bank in Gibraltar. The Danish High Court found him guilty on 11 of the indictment’s 16 counts. Mr Spjeldnæs was sentenced to four years’ imprisonment, but this was made into a probation period of four years due to the long time that had passed. Before that there had been the following hearings: 1997: After a case at the High Court in London lasting several years, Jan-Henning Spjeldnæs was sentenced to pay a compensation of approx. DKK 550m plus interest and costs to Jyske Bank. Hence, Jyske Bank had the court’s word that Mr Spjeldnæs was responsible for Jyske Bank’s losses in Gibraltar until 1992. 2003: At the City Court of Aarhus, Jan-Henning Spjeldnæs was sentenced to four years’ imprisonment for fraudulent abuse of his position. The City Court decision was appealed by Mr Spjeldnæs as well as the prosecution.
World premiere of Jyske Differences 2nd Generation
Bank and more. A library with various magazines. Product packages, coffee bar and a catfish on the wall. In September, Jyske Bank opens with its new design. It is a new bank that is pleasant for customers to visit. Customers can be inspired and obtain new knowledge in an unpretentious atmosphere. Jyske Bank introduced 35 new product packages, which customers can scan and take a closer look at on the screen at the TryBar in the middle of the room.
Jyske Bank's 40-year anniversary and a year of record-breaking result
On 7 July, Jyske Bank celebrated its 40th anniversary. This was also the year when the bank published a record-breaking result for the fourth consecutive year. Thanks to these accounts, the Bank ranks among the best-performing companies in the sector. Since the introduction of "Jyske Differences 2nd Generation" in the autumn of 2006, the Bank's branch network has seen a net inflow of customers in excess of 15,000.
This was also the year when the number of Jyske Bank shareholders exceeded 250,000.
New structure of the branch network
As mentioned, Jyske Bank has seen a considerable inflow of customers not least in the wake of "Jyske Differences". The development is also racing ahead in other areas. The advisory services offered by Jyske Bank are becoming more and more complex and hence the competence on the part of the advisors must grow accordingly.
To maintain and expand the inflow of customers and the bank's opportunity of giving customers the desired advisory services, a new structure of the branch network was established with the following main elements:
- The branches were organised into 28 market-adapted networks
- To an increasing degree, relevant and competent employees will work in close contact with the customers
- The branches were divided into six new types
Private and corporate customer branches were set up in Copenhagen, Odense, Aarhus, Silkeborg, and Aalborg.
Jyske Bank approved as an advanced bank
The Danish Financial Supervisory Authority approved Jyske Bank as an advanced IRB bank (Advanced Internal Rating Based) according to the new capital adequacy rules. The approval took effect as of 1 January 2008.
In 2000, Jyske Bank made a strategic decision to take the Bank's internal risk management to an advanced level by integrating advanced solutions for the identification and management of the bank's risks and for the assessment of the internal capital requirement to cover risks.
Since 2003, the bank's financial management has been based on the RAROC (Risk Adjusted Return on Capital) principles. This type of management is integrated at all levels and in the handling of individual customers as well as customer portfolios at Jyske Bank.
As the first bank worldwide, Jyske Bank opens an internet-based TV station - jyskebank.tv on 1 October 2008.
Every day this station brings financial news and in-depth economic issues – sprinkled with informative and entertaining journalistic features from Denmark and abroad.
Jyske Bank joins Bank Package I
The global financial crisis is raging and the economy is suffering a slowdown.
The government and the banks sign an agreement to establish a guarantee scheme which secures customers’ deposits. Fearing exit of customers - if Jyske Bank does not join the scheme – the bank decides like its rivals to join Bank Package I.
DKK 800m lost at Jyske Invest
On 22 October 2008, the Supervisory Board of Hedgeforeningen Jyske Invest issues a statement to the investors who have lost almost 80% of their deposits with the fund in twelve months.
Jyske Bank implements a share issue and rejects Bank Package II
On 2 December, Jyske Bank completes a share issue which results in the Bank receiving gross proceeds in the amount of DKK 1,188m.
The strengthened capital base enables the Bank to reject government capital from Bank Package II and obtain annualised interest savings of DKK 175m-200m.
Jyske Bank leases out operations of Gl. Skovridergaard
The lease is implemented to achieve better utilisation of the potential offered by hotel and restaurant operations as well as continued development of the course and conference facilities.
Jyske Bank continues to use Gl. Skovridergaard for meeting and training activities.
Visit Gl. Skovridergaard’s website www.glskov.dk.
Kaj Steenkjær passes away
Former Managing Director, Kaj Steenkjær passes away on 4 February, aged 72.
Jyske Bank becomes member of Bankdata
Jyske Bank decides to move the development of its IT systems to Bankdata. At the same time, Bankdata moves operating tasks the opposite way – to JN Data in Silkeborg, which is already the operating centre of Jyske Bank, among others.
Jyske Bank acquires parts of Fjordbank Mors
Jyske Bank signs an agreement with the government company Financial Stability on the acquisition of the most important parts of Fjordbank Mors.
Jyske Bank takes over a customer portfolio consisting of approx. 47,000 customers with total loans of approx. DKK 2.7bn and total deposits of approx. DKK 3.7bn.
Jyske Bank cuts 150 jobs
In order to adjust to the harsh market conditions, Jyske Bank announces on 22 September that the Bank will reduce the number of employees by approx. 250 before year-end 2012. Of these, 150 employees are made redundant with immediate effect. Moreover, the subsidiary Jyske Finans signs an agreement with the Spar Nord group to acquire the leasing activities from Finans Nord and Easyfleet.
Settlement agreement in the hedge case
On the initiative of the Danish Consumers' Ombudsman, Jyske Bank enters into a settlement agreement in the hedge case. According to the settlement agreement a number of investors of Jyske Invest Hedge Markedsneutral Obligationer receive compensation for 80% of their losses.
Jyske Bank replaces its IT platform
The decision from 2010 to replace the majority of Jyske Bank's own business-critical IT systems with similar systems on Bankdata's platform is executed. Beginning on a Friday evening in October and continuing over the weekend, millions of documents and billions of account entries are moved to the new IT platform. In the previous 24 months, more than 900 employees participated in thorough preparations. The project, with the code name of "NOVA", is called the largest in Danish history.
Jyske Bank takes over Sparekassen Lolland
The distressed savings bank is at the time of the take-over Denmark's 14th largest financial institution. The take-over comprises 45,000 clients of Sparekassen Lolland’s branches and 70,000 clients of FinansNetbanken.
Focus on core business
Jyske Bank strengthens focus on its core business and sells a number of activities. The Krone companies, which Jyske Bank took over when it acquired Spar Lolland, are sold and the activities of JGAM are sold to a Canadian portfolio manager, and Silkeborg Data is sold to Axcell.
New organisation of the branch network
The branch network carries through the most comprehensive organisational restructuring process ever. Three divisional centres are abolished, and increased focus is on the client segments by introducing a higher number of "pure" private client, corporate client and private banking branches.
Jyske Bank (Schweiz) in the headlines
DR1 broadcasts a documentary on tax havens. The broadcast brings a number of serious accusations against Jyske Bank (Schweiz), among other things, about participation in unlawful acts. Jyske Bank strongly contests these accusations.
Jyske Bank launches Jyske F1
In a period of time when mortgage credit is actively seeking to put a damper on the popularity of F1 loans, Jyske Bank moves against the current and launches a number of home financing products, including Jyske F1. The loans are offered at an interest rate which is marginally lower than mortgage interest rates, and the funding of the new loans has been secured through the agreement with BRFkredit on mutual funding which the Bank entered into in 2012.
BRFkredit becomes part of the Jyske Bank Group
In connection with the release of their financial statements for 2013 BRFkredit and Jyske Bank in February 2014 announce that the two enterprises will join forces. The merger between Denmark's fourth-largest mortgage credit institution and the third-largest bank will make the Jyske Bank Group an even more significant player in the Danish financial sector. The Group will obtain cost and earnings synergies and the merger will make it easier to become a supplier of the comprehensive financial products demanded by the clients – including the jointly-funded home loan products which have already since their launch in 2013 been a great success.
Through the merger, BRFkredit becomes a subsidiary of the Jyske Bank Group, and BRFkredit's former owner, BRFkredit Holding A/S, obtains a 25% stake of the shares of the Jyske Bank Group. BRFkredit's former CEO, Sven A. Blomberg, becomes managing director and deputy chief executive of Jyske Bank.
Simplified set-up abroad
Jyske Bank gathered all international private banking activities in two units, Jyske Bank (Gibraltar) and Private Banking (Copenhagen), and thereby wound up all activities in Switzerland and France.
Full speed ahead in capital management
In 2015 Jyske Invest was merged with Jyske Bank. The Bank thereby strengthened the capital management with respect to investment and distribution power and created the opportunity of generating additional growth in the capital management area - and positioning Jyske Bank as an important asset manager.
The bestseller Jyske Renteloft Cibor3 – or in everyday language: the Super Loan - hit the market in June and became an immediate bestseller appealing to the Danes who loved the F1 loan (adjustable rate loan) - but wanted to cap the interest rate.
The so-called Panama Papers once again drew attention to the problem of "tax haven". Jyske Bank declined - once again - having contributed to tax evasion.
New group strategy
With the headline "We are where the client is" Jyske Bank’s new business strategy put clients first in the Group’s development, operation and conduct.
Take a closer look at large and small events in 2016 - from A-Z
Jyske Bank’s 50-year anniversary
On 7.7.1967 Jyske Bank came into existence. The anniversary was celebrated with a big party at Jyske Bank Boxen for all employees of the Bank and their partners.
Take a look at our scrapbook of the past 50 years
Apple Pay and Visa Mobil
Thanks to Apple Pay and later on Visa Mobil, Jyske Bank offered its clients to choose between more mobile payment solutions in addition to the well-known cards and cash.
2018 was about streamlining the organisation to simplify both the internal processes and thereby also the client experience. This meant saying goodbye to the BRFkredit brand and hello to Jyske Realkredit and a common product range and home loan process.
The cashless bank
It created hype - on Twitter, at Folkemødet – The People's Political Festival and in various interviews, well even in a feature article in the Danish newspaper Jyllands-Posten: Anders Dam advocated a cashless bank, among other things to prevent money laundering. In 2018, Jyske Bank therefore stopped dispensing 1,000 kroner bills in its ATMs and launched even more digital payment solutions to its clients. This included the possibility for non-clients via the opening of a single account also to get access to both Visa Mobil and Apple Pay.
The fight against money laundering
In 2019, Jyske Bank decided to remove the DKK 1,000 note from its ATMs and to remove the option for non-clients to use the Bank's ATMs in branch lobbies outside the Bank's opening hours. At the same time, the Bank overall reduced the number of ATMs. All measures to avoid that the Bank's ATMs and lobbies attracted people who, by using cash, attempted to avoid tax and VAT or set-off in social benefits. In addition, 2019 was also the year in which Jyske Bank introduced the requirement of an auditor for new business clients unknown to the Bank. Jyske Bank not only wants to follow money laundering legislation, but also to be at the forefront and do what the Bank believes is necessary.
Negative interest rates
2019 was the year in which Jyske Bank took the lead in introducing negative deposit rates for personal clients with deposits above DKK 500,000 after market rates had assumed that Danmarks Nationalbank's deposit rate would probably remain negative for eight years, and it was thus no longer possible to achieve a positive interest rate by placing surplus liquidity in government bonds. Subsequently, several other financial institutions followed suit, and the limit for the unsecured deposit was gradually lowered.
Visa/Dankort is challenged
At the beginning of the year, Jyske Bank suddenly found itself in a shit storm. The Bank challenged the cooperation with Nets in relation to the Visa/Dankort, as it was not believed that the card developed quickly enough in relation to the costs involved in the card. It created great debate and harsh rhetoric. In May, the Bank launched Visa/Flex as its own alternative to the Visa/Dankort.
New management structure for Personal Clients
At the end of the year, Jyske Bank announced a changed organization of the management structure for Personal Clients as several geographically separated branches came under joint management.
2020 was only a few months old when Covid-19 hit Denmark and set the agenda for the rest of the year. Jyske Bank and its clients also felt the pandemic. Therefore, the Bank set aside DKK 1 billion to counter potential losses.
Covid-19 also left its mark internally on Jyske Bank. The employees had to work from home, all events had to be cancelled and the doors to the branches were locked. And online meetings became a priority.
Goodbye to Gibraltar
Jyske Bank said goodbye to its subsidiary bank in Gibraltar, which continues under the management of a different owner. Jyske Bank now only has one foreign branch in Hamburg.
Branches come together
In 2020, several branches were merged to create the necessary weight in the professional environments and ensure high-quality advisory services. Brønshøj was merged with Herlev. Birkerød was merged with Allerød. Nyborg was merged with Dalum, and Faaborg was merged with Svendborg.
Own wind turbine
After receiving the FSA's approval, Jyske Bank acquired its own wind turbine at Hirtshals Harbour in July 2020, with the aim of becoming CO2-neutral through its own renewable energy production.
Covid-19 is still lurking in the wings
The first four or five months of the year looked like a repetition of the coronavirus situation from 2020. The Bank's employees had to work from home, the doors to the branches were locked, and all meetings were held online as far as possible. In addition, the requirement of a vaccine passport was also introduced internally at Jyske Bank.
2021 was also the year in which Jyske Bank began a new and exciting strategic collaboration with Købstædernes Forsikring. Jyske Bank's personal and corporate clients can therefore in future be offered insurance through Jyske Forsikring.
New products and Jyske Værditilbud
It was also the year when Jyske NemInvestering, Visa Credit, Visa Credit Platinum and interest rate adjustment of home loans in the mobile bank were launched.
The launch of Jyske Værditilbud for all the Bank's personal clients also took place at the end of 2021. The Bank will in future offer products and services within the categories Jyske Hverdag, Jyske Plus and Jyske Premium.
Relaunch of values
Internally, the Bank wanted a simplification of its values. This resulted in the five values: Common sense, Honest, Drive, Equal respect and Unpretentious.
War and unrest
A few months into 2022, war broke out as Russia attacked Ukraine. Jyske Bank chose very clearly to mark its support for Ukraine and for the Ukrainians who came to Denmark as refugees. The Bank's employees were given the option of paid time off for voluntary work, and the Bank created positions outside of the normal staffing for Ukrainian refugees.
In light of the emerging energy crisis, Jyske Bank launched a series of energy initiatives to contribute to increased independence from Russian gas and oil. In line with other large companies, Jyske Bank set itself the target of reducing energy consumption by 15%.
Internally, the overriding event of the year was that Jyske Bank succeeded in buying Handelsbanken's Danish activities. Jyske Bank was considered an outsider in the battle for Handelsbanken, but the seller gave top priority to, among other things, a good match in relation to business and values as well as security for the completion of the deal. Jyske Bank could therefore participate even if the competitors offered a higher price. Handelsbanken's Danish activities added 130,000 clients to Jyske Bank’s client base, loans worth DKK 65 billion and deposits worth DKK 35 billion. The merger took place on 1 December.
In 2022, Jyske Bank set up a diversity committee because the Bank wants to attract and retain the most suitable employees across e.g. gender, age, ethnicity, family structure, education, training and background – to the benefit of both the individual, the business and creativity.
Goodbye to negative interest rates
The central banks' monetary policy tightening led to rising interest rates in 2022, and consequently in the autumn we said goodbye to the negative deposit rates that were introduced in 2019.
The catfish in 2022
In the year of the 40th anniversary of Jyllands-Posten's characterisation of Jyske Bank as "the catfish in the tank", the catfish was revived. Among other things, Jyske Bank established an annual Catfish Prize. The first of its kind went to the DRC Dansk Flygtningehjælp.