Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — Q1 2024 Earnings Presentation
14 slides from Danske Bank A/S's earnings presentation, May 2024
Slide 1: Financial results Q1 2024
Presentation for Q1 conference call Financial results Q1 2024 Carsten Egeriis Stephan Engels Chief Executive Officer Chief Financial Officer
Slide 2: A good start to the year with strong financial performance and RoE of 12.9%
Financial results – Q1 2024 A good start to the year a with strong financial performance and RoE of 12.9%; execution of Forward’28 strategy and commercial agenda well underway Highlights ➢ Solid macro environment, particularly in Denmark, Net profit of Core banking income supports Q1 performance and
Slide 3: Personal Customers: Strong financial performance despite muted housing market
Financial results – Q1 2024 Personal Customers: Strong financial performance despite muted housing market as customer activity and credit quality remain robust Highlights Financial performance KPIs Total income ROAC (%) Cost/income (%) Solid quarter with commercial momentum (DKK m) 2026 target (~29%
Slide 4: Business Customers: Resilient performance despite impact from asset finance income
Financial results – Q1 2024 Business Customers: Resilient performance despite impact from asset finance income; Customer activity underpinned by healthy credit demand Highlights Financial performance KPIs Total income ROAC (%) Cost/income (%) Increased customer activity underpinned core (DKK m) 2026
Slide 5: LC&I: Strong profitability and commercial momentum
Financial results – Q1 2024 LC&I: Strong profitability and commercial momentum as customer engagement supports credit demand along with DCM activity; AuM lifted to record high Highlights Financial performance KPIs Total income ROAC (%) Cost/income (%) Income supported by strong development in NII (D
Slide 6: Strong income uplift supported by NII and positive trend in fee income
Financial results – Q1 2024 Strong income uplift supported by NII and positive trend in fee income; solid trading and insurance income; robust credit quality results in below-cycle impairments Highlights Income statement (DKK m) Q124 Q123 Index Q423 Index Total income up 4% Y/Y and 1% Q/Q supported
Slide 7: NII: Strong uplift in NII; Q/Q impact from FX and day effects
Financial results – Q1 2024 NII: Strong uplift in NII; Q/Q impact from FX and day effects Highlights Net interest income Q124 vs Q123 (DKKm) Deposit margin development (%) 3.0 9,142 Net interest income trajectory remain resilient 37 2.5 2.50 2.68 2.50 2.44 PC despite normalisation of deposit volumes
Slide 8: Fees: Robust fee income driven by strong customer activity and higher AuM
Financial results – Q1 2024 Fees: Robust fee income driven by strong customer activity and higher AuM Highlights Net fee income (DKK m) Activity-driven fees (transfers, accounts, etc.) 3,376 High economic activity was supportive as consumer spending held up well and demand for our corporate -51 88 c
Slide 9: Trading income: Higher customer activity in fixed income & currencies
Financial results – Q1 2024 Trading income: Higher customer activity in fixed income & currencies Highlights Net trading income (DKK m) LC&I 1,331 Y/Y: Q123 saw exceptionally strong customer activity at LC&I -298 Q/Q: Improvement in customer activity after seasonal 58 -24 -71 low in Q423 -227 769 No
Slide 10: Expenses: Prudent cost management results in improved C/I ratio of 45%
Financial results – Q1 2024 Expenses: Prudent cost management results in improved C/I ratio of 45%, in line with 2026 financial target Highlights Expenses (DKK m) Total operating expenses down 4% Q/Q, as costs 45 -29 measures support further progress on cost/income ratio 6,337 118 -169 6,292 Staff c
Slide 11: Impairments: Overall strong credit quality with few single-name impairments
Financial results – Q1 2024 Impairments: Overall strong credit quality with few single-name impairments resulting in below-normalised-level cost of risk Highlights Impairment charges by category (DKK bn) Q1 impairments of 0.1bn, equivalent to a loan loss ratio of 2 basis points, as credit Credit qua
Slide 12: Capital: Strong capital base with CET1 capital ratio of 18.5%
Financial results – Q1 2024 Capital: Strong capital base with CET1 capital ratio of 18.5% Highlights CET1 development (%) CET1 buffer CET1 cap. req. CET1 capital ratio remained strong at 18.5%, 0.3 ppts down since Q4, driven 18.8 0.3 -0.7 0.4 18.5 primarily by the deduction of the full share buyback
Slide 13: Financial outlook
Financial results – Q1 2024 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. I
Slide 14: Q&A Session
Q&A Session Press *11 to ask a question