Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — FY2023 Earnings Presentation
13 slides from Danske Bank A/S's earnings presentation, February 2024
Slide 1: Financial results 2023
Presentation for Q4 conference call Financial results 2023 Carsten Egeriis Stephan Engels Chief Executive Officer Chief Financial Officer
Slide 2: A year of significant improvement in financial performance and commercial momentum
Financial results – Q4 2023 A year of significant improvement in financial performance and commercial momentum underpinning sustainable profitability 2023 highlights 2024 outlook Net profit of Core banking income Improved efficiency DKK 21.3bn up +20% Cost/Income 49% Supported by strong NII trend Un
Slide 3: Better Bank strategy exceeding targets while enhancing resilience; foundation for Forward '28
Financial results – Q4 2023 Better Bank strategy exceeding targets while enhancing the resilience of Danske Bank and laying a strong foundation for Forward ’28 execution Our 2023 targets FY2023 Our 2026 targets to measure the success of Forward ’28 8.5-9% RoE 13% Personal Number of meetings per advi
Slide 4: Business units: Growing momentum and enhanced profitability
Financial results – Q4 2023 Business units: Growing momentum and enhanced profitability; continued lending uplift for business customers Personal Customers Business Customers LC&I Good momentum throughout the year: pre-tax profit up Strong year with significant profit uplift, driven by Strong profit
Slide 5: Strong income uplift supported by NII; recovery in trading and insurance
Financial results – Q4 2023 Strong income uplift supported by NII; recovery in trading and insurance despite impact from one-offs; strong credit quality underpins low impairments Key points 2023 vs 2022 Income statement and key figures (DKK m) 2023 2022 Index Q423 Q323 Index Strong uplift in profita
Slide 6: NII: Healthy deposit margin expansion Y/Y
Financial results – Q4 2023 NII: Healthy deposit margin expansion Y/Y while recent pass-through impacts Q/Q development; deposit and lending volumes have stabilised Highlights Net interest income 2023 vs 2022 (DKKm) Deposit margin development (%) 35,000 3.0 PC -543 -480 2.68 Net interest income cont
Slide 7: Fees: Improving trend Q/Q as activity remained solid
Financial results – Q4 2023 Fees: Improving trend Q/Q as activity remained solid with recovery in lending and investment fees; Y/Y affected by lower lending activity and reduced AuM Highlights Net fee income (DKK m) Activity-driven fees (transfers, accounts etc.) 12,590 20 Resilient income due to go
Slide 8: Trading income: Continued recovery and less volatility
Financial results – Q4 2023 Trading income: Continued recovery and less volatility; calibrated risk in fixed income market-making strategy and seasonality in Q4 limit effect from lower rates Highlights Net trading income (DKK m) LC&I 3,704 -315 630 Y/Y: New fixed income strategy implemented in 2022
Slide 9: Expenses: Dedicated cost management resulting in 4% decline in cost base
Financial results – Q4 2023 Expenses: Dedicated cost management resulting in 4% decline in cost base Y/Y; well on track to deliver on 2026 C/I target Highlights Expenses (DKK m) Total costs down 4% Y/Y. Continued progress on efficiency as 26,478 underlying costs (adj. for one-offs in 22) were kept f
Slide 10: Impairments: Continually strong credit quality resulted in reversals in Q4
Financial results – Q4 2023 Impairments: Continually strong credit quality resulted in reversals in Q4 and full- year impairments well below normalised level Highlights Impairment charges by category (DKK bn) Credit quality deterioration PMAs Macro models Debt collection one-off Credit quality remai
Slide 11: Capital: Strong capital base with CET1 capital ratio of 18.8%
Financial results – Q4 2023 Capital: Strong capital base with CET1 capital ratio of 18.8% Highlights CET1 development (%) CET1 capital ratio stood at 18.8%, as contribution from retained earnings was offset CET1 buffer CET1 cap. req. by higher REA and deduction from Danica 18.8 0.3 -0.2 18.8 -0.2 Th
Slide 12: Financial outlook: Net profit for 2024 will reflect progress on 2026 ambitions
Financial results – Q4 2023 Financial outlook: Net profit for 2024 will reflect progress on financial ambitions for 2026 Total income is expected to grow in 2024, driven by higher core income, our continued efforts to Income drive commercial momentum and in line with our financial targets for 2026.
Slide 13: Q&A Session
Q&A Session Press *11 to ask a question