Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — FY2012 Earnings Presentation
20 slides from Danske Bank A/S's earnings presentation, Feb 7, 2013
Slide 1: Financial results for 2012
PRESS CONFERENCE Financial results for 2012 Eivind Kolding CEO & Chairman of the Executive Board Henrik Ramlau-Hansen CFO & Member of the Executive Board Tonny Thierry Andersen Member of the Executive Board & Head of Personal Banking 7 February 2013 You can follow the entire press conference in a li
Slide 2: Key messages in Annual Report 2012
Annual Report 2012 Key messages in Annual Report 2012 Net profit improved by DKK 3 bn to DKK 4.7 bn Lowest impairments since the beginning of the financial crisis ROE of 3.7% is still well below target Strong improvement in solvency and liquidity in 2012 Implementation of New Standards proceedi
Slide 3: Significant improvement in financial results despite difficult market conditions
Annual Report 2012 Significant improvement in financial results despite difficult market conditions Income statement (DKK m) Key points 2012 2011 Index • Total income up 10% Net interest income 24,788 23,537 105 • Expenses affected by Net fee income 8,782 8,298 106 restructuring costs Net trading in
Slide 4: Increase in income driven by higher net interest income, trading income and insurance business
Annual Report 2012 Increase in income driven by higher net interest income, trading income and insurance business Income breakdown (DKK m) 2011 2012 23,537 Net interest income 24,788 8,298 Net fee income 8,782 7,325 Net trading income 8,901 3,648 Other income 2,951 569 Net income from insurance 2,26
Slide 5: Positive market developments and high returns led to rise in income at Danske Markets and Danske Capital
Annual Report 2012 Positive market developments and high returns led to rise in income at Danske Markets and Danske Capital Profit before tax – Danske Markets & Treasury (DKK m) Profit before tax – Danske Capital (DKK m) +10% +20% 4,487 1,094 4,097 910 2011 2012 2011 2012 5
Slide 6: Expenses: Affected by restructuring, but cost-saving programme progressing as planned
Annual Report 2012 Expenses: Affected by restructuring, but cost-saving programme progressing as planned Total expenses (DKK bn) One-offs and other adjustments Adjusted expenses 26.0 26.6 2.4 3.4 23.6 23.2 2011 2012 6
Slide 7: Impairment charges remained high, but showed a falling trend in all areas in 2012
Annual Report 2012 Impairment charges remained high, but showed a falling trend in all areas in 2012 Loan impairment charges (DKK bn) Loan impairment charges (DKK bn) Ireland (incl. Non-core) Ireland (incl. Non-core) Denmark Other -45% Other -5% 4,8 13,2 12,5 3,9 1,6 6,3 5,6 3,1 1,5 2,9 2,6 1,5 1,4
Slide 8: Lowest impairments since the beginning of the financial crisis
Annual Report 2012 Lowest impairments since the beginning of the financial crisis Impairments, 2008-12 (DKK bn/bp) Impairments Impairment ratio 10 173 bp 9 8 7 6 99 bp 5 4 57 bp 52 bp 3 2 1 10 bp 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 08 08 08 08 09 09 09 09 10 10 10 10 11 11
Slide 9: All Banking Activities units showed a profit except Non-core Ireland
Annual Report 2012 All Banking Activities units showed a profit except Non-core Ireland Profit before tax broken down by business unit, 2012 (DKK m) Banking Activities ex Non-core Danske Markets Danica Danske Capital Non-core Ireland 6,756 4,487 2,263 1,094 -4,759 9
Slide 10: Strong core tier 1 capital ratio, above target of 13%
Annual Report 2012 Strong core tier 1 capital ratio, above target of 13% Capital base, under CRD/Basel II (%) Total capital Capital buffer Tier 1 (including state hybrid) Solvency need Core tier 1 174 21.3 162 17.9 18.9 84 72 16.0 14.5 11.8 91 90 Q4 2011 Q4 2012 Q4 2011 Q4 2012 10
Slide 11: Strong liquidity and rising deposits in second half of 2012
Annual Report 2012 Strong liquidity and rising deposits in second half of 2012 Deposits (DKK bn) Twelve-month liquidity (DKK bn) Danske Markets Q4 2011 Q3 2012 Q4 2012 CIB 400 Banking Activities etc 795 789 774 736 743 69 97 86 59 52 69 83 300 72 57 68 +111 DKK bn 200 629 616 620 623 637 100 3 mos 6
Slide 12: Outlook for 2013 based on adjusted financial highlights
Annual Report 2012 Outlook for 2013 based on adjusted financial highlights Macro Economic growth to remain low in most markets Unchanged net interest income. Increasing net fee income Income Trading income and insurance income below 2012 levels Expenses Flat because cost-saving initiatives will offs
Slide 13: New customer programme launched in Denmark
Annual Report 2012 New customer programme launched in Denmark Three main objectives: SIMPLE AND TRANSPARENT MORE BENEFITS FAIR 13
Slide 14: Good results in the first weeks of the customer programme
Annual Report 2012 Good results in the first weeks of the customer programme • Almost 250,000 customers have registered for the programme • Net outflow of personal 5.610 customers since 1 January: below 4.298 3,800 • Daily inflow of new business volume rose 25% since the launch • The number of insur
Slide 15: We are following our plan of increased customer focus and efficiency
Annual Report 2012 We are following our plan of increased customer focus and efficiency From country organisations to business Decentralised business Name changed to Danske units decision making Bank in seven countries June July October November January New credit New Standards strategy New customer
Slide 16: New expense overview ready for customers
Annual Report 2012 New expense overview ready for customers • Accessible on all platforms • Enables customers to make a budget and plan their finances • Constant updating and automatic categorisation 16
Slide 17: Examples of the many new standards
Annual Report 2012 Examples of the many new standards Senior citizens & IT Business mobile New financing 5.610 4.298 • 3,000 participants in more • Access to innovative online • New financial options for than 60 “Step-by-step” solutions for mobile and businesses meetings tablet banking • New instruc
Slide 18: Summary
Annual Report 2012 Summary Net profit rose DKK 3 billion to DKK 4.7 billion ROE of 3.7% is still far below the target Capital strength and liquidity improved significantly in 2012 Implementation of New Standards is proceeding according to plan The improvement will continue in 2013, with net pro
Slide 19: www.danskebank.com/ir
Annual Report 2012 www.danskebank.com/ir 19
Slide 20: Disclaimer
Annual Report 2012 Disclaimer Important Notice 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, including the United States, or an induc