Jyske Bank has posted profits of 418 million kroner before tax for the first quarter of 2014.

That result is 143 million kroner less than the first quarter results from 2013 and well below the 759 million kroner that analysts had expected.

“The result for the 2014 first quarter is below the most recent quarterly results,” Anders Dam, the head of Jyske Bank, said in a press release.

“Net interest income is under pressure because of the low interest rates, and the income effect of the bank's new housing loan won’t be felt until the second quarter of 2014.”

READ MORE: Jyske Bank merges with BRF Kredit, announces profits

Merger not ready
Dam argued that the falling market rates have had a negative influence on the results, while the bank’s amortisation of loans is 47 million kroner above the same period last year.

Furthermore, the merger between Jyske Bank and BRF Kredit that was announced in late February has yet to influence Jyske Bank’s financial results, largely because the merger is in its early stages.

"In the first quarter, we have seen a lot of attention surrounding our wish to merge with BRFkredit,” Dam said.

“By the end of the first quarter, the deal was not finalised – we are awaiting the approval of the authorities, which is expected in the second quarter, and then the merger can be completed.”