Jyske Bank posted a below-expectation profit in the third quarter of 2011, partly due to the prevailing economic uncertainty, the second largest independent Danish bank announced Monday.
Its post-tax profit for the third quarter stood at 82 million Danish kroners (15.3 million U.S. dollars), down sharply from 154 million kroners (28.7 million dollars) for the same period last year, the bank said in a statement.
The figure was at least 100 million Danish kroners (18.6 million dollars) below analysts'expectations, according to Danish financial website Borsen.dk.
Meanwhile, core earnings for the first three quarters of 2011 stood at 427 million Danish kroners (79.5 million dollars), down from 763 million kroners (142.0 million dollars) for the same period last year, the bank said.
The bank's loan write-downs totaled 375 million Danish kroners (69.8 million dollars) in Q3, growing for the third quarter in a row.
CEO of the bank Anders Dam acknowledged the results were disappointing, saying international economic uncertainty was partly to blame.
"National and international economic developments have put their mark on the bank's earnings, where a stagnant top line combined with continued rise in costs have meant that the results are not at a satisfactory level," he said in the statement.
But the bank's recent moves, including lay-offs, price increases and selective purchases, would help improve its performance in 2012 and 2013, Dam added.