Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — FY2009 Earnings Presentation
24 slides from Danske Bank A/S's earnings presentation, Feb 4, 2010
Slide 1: Annual Report 2009 Press conference
ANNUAL REPORT 2009 Press conference Peter Straarup, Chairman of the Executive Board Tonny Thierry Andersen, CFO & member of the Executive Board February 4, 2010
Slide 2: Financial results for 2009: Net profit despite the worst economic downturn in recent times
Financial results for 2009: Net profit despite the worst economic downturn in recent times DKKm 2008 2009 Index Net interest income 27,005 27,524 102 Net fee income 8,110 7,678 95 Net trading income 6,076 18,244 300 Other income 3,585 3,083 86 Income from insurance -1,733 2,810 - Total income 43,043
Slide 3: In 2009, GDP hit a historical low, and it will only improve slowly in 2010
In 2009, GDP hit a historical low, and it will only improve slowly in 2010 % GDP growth in selected What we pay for the bank packages 4 countries 2 Norway BILL 0 Sweden Guarantee fee - 2 yrs 5.0 EU Interest on hybrid -2 Denmark loan (net) – 5 yrs 6.0 Financial -4 stability 1.9-6.7 -6 Finland Total D
Slide 4: Improvements in H2 2009: GDP rose and house prices stabilised
Improvements in H2 2009: GDP rose and house prices stabilised, especially in Greater Copenhagen Danish GDP Danish house prices DKK bn 2005-09 DKK/sq. m 2005-09 370 26000 365 24000 360 Greater 22000 Copenhagen 355 20000 350 345 18000 340 16000 335 Nationwide 14000 330 325 12000 320 10000 Q1 Q3 Q1 Q3
Slide 5: Stronger focus on customer satisfaction
Stronger focus on customer satisfaction 5
Slide 6: Very low share of complaints in 2009
Very low share of complaints in 2009 350 313 300 100% 250 200 150 100 48 50 15% 1 0 Total complains Complains about Danske Complains about Danske Bank Bank upheld 6
Slide 7: One of Denmark's least expensive banks
One of Denmark’s least expensive banks Source: www.pengepriser.dk 7
Slide 8: International expansion: Good, profitable units in Nordic region, challenges in Ireland and the Baltics
STRATEGY International expansion: Good, profitable units in Nordic region, challenges in Ireland and the Baltics Acquisition Country 2006 Finland & Baltics Northern Ireland 2004 Ireland 1999 Norway 1997 Sweden 8
Slide 9: The Group's capital base is much larger than the ICAAP result
The Group’s capital base is much larger than the ICAAP result, giving a capital buffer of DKK 64bn DKK bn 160 Buffer: 120 DKK 64 bn 80 40 0 ICAAP result Capital base Core capital State hybrid capital Other hybrid capital Tier 2 capital 9
Slide 10: Financial results for 2009: Net profit despite the worst economic downturn in recent times
Financial results for 2009: Net profit despite the worst economic downturn in recent times DKKm 2008 2009 Index Net interest income 27,005 27,524 102 Net fee income 8,110 7,678 95 Net trading income 6,076 18,244 300 Other income 3,585 3,083 86 Income from insurance -1,733 2,810 - Total income 43,043
Slide 11: Income from Banking Activities has been robust throughout the crisis
Income from Banking Activities has been robust throughout the crisis DKKm 2008 2009 Index DKK bn Total income from Net interest income 27,005 27,524 102 40 Banking Activities Net fee income 8,110 7,678 95 Net trading income 6,076 18,244 300 Other income 3,585 3,083 86 35 Private Income from insuranc
Slide 12: Lending declined moderately, especially abroad
Lending declined moderately, especially abroad, as is normal during a recession because investment falls DKKm 2008 2009 Index DKK bn Lending volume Net interest income 27,005 27,524 102 Net fee income 8,110 7,678 95 -4% Net trading income 6,076 18,244 300 1.000 Other income 3,585 3,083 86 Private -1
Slide 13: Trading income tripled in 2009
Trading income tripled in 2009: It was not an accident but a result of the crisis DKKm 2008 2009 Index Net interest income 27,005 27,524 102 Net fee income 8,110 7,678 95 Net trading income 6,076 18,244 300 Other income 3,585 3,083 86 Private Income from insurance -1,733 2,810 - Total income 43,043
Slide 14: Danica: Income from insurance business improved greatly because of high investment returns
Danica: Income from insurance business improved greatly because of high investment returns DKKm 2008 2009 Index Increase in income of Net interest income 27,005 27,524 102 DKK 4.5bn Net fee income 8,110 7,678 95 Net trading income 6,076 18,244 300 Other income 3,585 3,083 86 Premiums from Income fro
Slide 15: Expenses held in check; moderate performance-based compensation
Expenses held in check; moderate performance-based compensation in accordance with int’l recommendations DKKm 2008 2009 Index Cost/income ratio Net interest income 27,005 27,524 102 80 Net fee income 8,110 7,678 95 66.7 Net trading income 6,076 18,244 300 Other income 3,585 3,083 86 60 Income from i
Slide 16: Loan impairment charges: Dominated by business customers
Loan impairment charges: Dominated by business customers; personal customers manage relatively well DKKm 2008 2009 Index DKK bn Loan impairment Net interest income 27,005 27,524 102 30 charges by customer type Net fee income 8,110 7,678 95 Net trading income 6,076 18,244 300 25 Bank Pkg. 1 Other inc
Slide 17: Impairment charges highest in Denmark, Ireland and Baltics
Impairment charges highest in Denmark, Ireland and Baltics; declined steadily quarter to quarter bp Impairment charges/lending 2009 DKK bn Loan impairment charges 2009 1,100 10 900 8 700 500 6 300 4 100 2 -100 Norway Baltics Markets Dk. Capital Northern Ireland Other Ireland Finland Denmark Sweden 0
Slide 18: Results from primary markets show net profit in three countries
Results from primary markets show net profit in three countries DKK m Profit before tax ex expenses for Bank Package I & goodwill 4000 2000 0 -2000 -4000 -6000 Denmark Norway Sweden Finland Northern Baltics Ireland Ireland 18
Slide 19: Core capital and solvency ratios much higher in 2009
Core capital and solvency ratios much higher in 2009 % Capital ratios 20 2008 2009 15 +4.8% +4.9% 10 5 0 Core capital ratio Solvency ratio 19
Slide 20: Leverage figures improved in 2009 on a reduction of the balance sheet
Leverage figures improved in 2009 on a reduction of the balance sheet and drop in risk-weighted assets DKK bn Total assets DKK bn Total RWA 4000 1000 -13% -13% 800 3000 600 -26% 2000 400 1000 -6% 200 0 0 2008 2009 2008 2009 Lending Securities Other assets 20
Slide 21: Liquidity: Substantial improvement in 2009
Liquidity: Substantial improvement in 2009, especially from new loans with maturities of up to 10 years DKK bn 450 300 End-Q4 2009 150 End-Q4 2008 End-Q3 2009 0 -150 1 week 1 month 2 weeks 3 weeks 12 months 2 months 3 months 4 months 5 months 6 months 9 months 21
Slide 22: Outlook: Moderate economic trend, but 2010 will also be a challenging year
Outlook: Moderate economic trend, but 2010 will also be a challenging year Moderately positive economic growth But the Irish and Baltic economies will contract further Further increase in unemployment Robust income from Banking Activities Lower income from Danske Markets and Danica Expenses lower th
Slide 23: www.danskebank.com/ir
Bank www.danskebank.com/ir 23
Slide 24: Disclaimer
Disclaimer This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Danske Bank A/S in any jurisdiction or an inducement to enter into investment activity. No part of this presentat