Denmark's Jyske Bank lowers outlook, cancels dividend

Danish lender Jyske Bank lowered its full-year profit outlook and said it would not offer an annual dividend citing negative interest rates and increased compliance spending after posting a fall in third-quarter results on Wednesday.

COPENHAGEN, Oct 30 (Reuters) - Danish lender Jyske Bank JYSK.CO lowered its full-year profit outlook and said it would not offer an annual dividend citing negative interest rates and increased compliance spending after posting a fall in third-quarter results on Wednesday.

Jyske said it now expects profit after tax of approximately 2 billion Danish crowns ($298 million) versus a previous estimate of 2-3.3 billion.

Denmark's third-largest bank posted a pretax profit for the first nine months of 1.83 billion crowns, down 27% from a year earlier.

Net interest income fell 7% to 3.97 billion while fee and commission income rose 16% to 1.57 billion.

Jyske said it would propose no ordinary dividend but raise its existing share buyback programme by 500 million crowns and extend it until March 31, 2020.

($1 = 6.7192 Danish crowns)

(Reporting by Nikolaj Skydsgaard; editing by Jason Neely)

((Nikolaj.Skydsgaard@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More