Danske Bank A/S · OMXCOP:DANSKE

Danske Bank A/S — Debt Investor Presentation (September 2009)

41 slides from Danske Bank A/S's debt investor presentation, September 2009

1. Slide 1: Navigating through turbulent times

   N i i through Navigating h h turbulent b l times i September 2009

2. Slide 2: Disclaimer

   Disclaimer This presentation has been prepared solely for use at this presentation. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations. This presentation does not constitute or form part of and should no

3. Slide 3: Agenda

   Agenda Slide I. Macro Economy 4 II Danske II. D k BBankkOOverview i 10 III. Financial Performance 13 IV. Danske Bank Funding 23 I. State guarantee II. Covered Bonds V. Appendix 34 3

4. Slide 4: I. Macro Economy

   Be a |. Macro Economy —\

5. Slide 5: The macroeconomic environment

   The macroeconomic environment - Very tough first half, but is there a recovery around the corner? Macroeconomic key figures % GDP forecasts for 2009 2009 and 2010 estimates 6 - Denmark relatively resilient GDP Budget balance (% Gross publ. Debt (% Growth (%) of GDP) of GDP) 0 2009 2010 2009 2010 200

6. Slide 6: Macroeconomic trends

   Macroeconomic trends - Under a significant pressure – but from a strong starting point GDP growth Current account % y/y % y/y % of GDP % of GDP 4 4 4.5 4.5 GDP growth th 4.0 4.0 Current account 2 2 3.5 3.5 3.0 3.0 0 0 2.5 2.5 2.0 2.0 2 -2 2 -2 1.5 1.5 1.0 1.0 -4 -4 0.5 0.5 05 06 07 08 09 10 00 01 02

7. Slide 7: Low unemployment rate

   Low unemployment rate - Real wage growth and unemployment – two main factors for the economy Unemployment rate Facts on unemployment nemplo ment % % 7 7 • Unemployment is currently 3.8 % - thus 105,100 Danes are out of a job 6 6 Unemployment 5 5 4 4 • The economic slowdown 2001-2003 increased unempl

8. Slide 8: Rates are going down and so is inflation

   Rates are going down – and so is inflation - Incentive to borrow The Danish mortgage market has been Inflation is heading down relatively resilient 7,0 7,0 % % 5% 30 year mortgage rate 6,0 6,0 5,0 5,0 percent percent 1 year rate 4,0 4,0 3,0 3,0 2,0 2,0 Central Bank lending rate 1,0 1,0 05 06 07 08 0

9. Slide 9: Housing market under pressure but...

   Housing market under pressure but... - Low unemployment rate & strong LTV position key drivers in assessing risk Property prices Updated: Q2 2009 500,00 Index (1996 = 100) 450,00 Ireland United Kingdom Sweden Houses Flats Finland (ex. Helsinki) Finland (Helsinki) Norway 400,00 Denmark 1.7% 4.2% 350,

10. Slide 10: II. Danske Bank Overview

    II Danske Bank Overview II.

11. Slide 11: Danske Bank at a glance

    Danske Bank at a glance • 5 million customers • 2.2 2 2 million illi active i internet i customers • 786 branches in 9 countries* • 22,822 full-time employees Long term ratings Moody's S&P FITCH Sweden Aa3 A+ A+ Stable Negative Stable Short term ratings Moody's S&P FITCH P-1 A-1 F1+ Covered Bonds ra

12. Slide 12: Danske Banks market profile

    Danske Bank‘s market profile – Market leader and challenger positions Market Leader Finland: Branches: 122 Market share: 13% Market Challenger Market Challenger Market rank: 3 Sweden: Norway: % of Group lending: 10% Branches: 56 Branches: 51 Market share: 7% Market Challenger Market share: 6% Market

13. Slide 13: III. Financial Performance

    III Financial Performance III.

14. Slide 14: Key messages

    Key messages - Record-high income, gradually declining impairment charges DKr m Q Quarterly l totall iincome 18,000 Other income (incl. insurance) Net trading income 15,000 • 48% higher total income Y/Y led to net profit of Net fee income Net interest income DKr 0.7bn in H1 2009 12,000 • Impairment

15. Slide 15: Performance highlights

    Performance highlights - High total income, but loan impairment charges, goodwill impairment and state guarantee fees lower the profit Income statement and key figures DKr m H1 2008 H1 2009 Index Q1 2009 Q2 2009 Index N t interest Net i t t iincome 12 901 12,901 14 134 14,134 110 7 227 7,227 6 907 6

16. Slide 16: Net interest income

    Net interest income - Wider lending margins, but hurt by low interest rates and cost of hybrid capital DKr m Quarterly net interest income Net interest income 10% Y/Y Y/Y 10% Q/Q 4% • Slightly decreasing lending volumes 7,500 • Improved lending margins • NII under pressure from • competition for dep

17. Slide 17: Net trading income

    Net trading income - Exceptionally high income is the positive side of the crisis Breakdown of net trading income Nett ttrading N di iincome DK DKr 12.4bn 12 4b iin H1 2009 DKr m Q4 2008 Q1 2009 Q2 2009 • Very strong Q1 2009, some effects Trading activities 2,634 7,534 4,410 sustainable Group Treasu

18. Slide 18: Expenses

    Expenses - Cost management intensified, underlying cost base flat Expenses 19% Y/Y Expense trend and number of employees • Increase due to DKr m DK H1 2008 H1 2009 IIndex d Expenses 12,933 15,385 119 • goodwill impairment Integration expenses 523 181 35 • state guarantee fee Amortisation of intangib

19. Slide 19: Loan impairment charges

    Loan impairment charges - Impairment charges still high, but gradually declining from Q4 08 level DKr m Quarterly loan impairment charges p.a. Impairment p chargesg DKr 6.6bn in Q2 2009 10,000 173 bp • Slightly declining impairment charges , although Collective level is still extraordinarily high ow

20. Slide 20: Loan impairment charges and coverage ratio

    Loan impairment charges and coverage ratio - SME is still dominating the impairments Impairments by customer segment NPLs and coverage ratios - SMEs account for most of the Group’s impairments DKr bn - Improving coverage ratios % 100% 80 Coverage ratio 100 Personal incl. collateral ** (Right axis) 8

21. Slide 21: Capital management

    Capital management - Improving capital ratios Capital ratios – CRD/Basel II Trend in RWA (DKr m) - Strong improvement due to new hybrid capital and reduced assets - Small effect due to the decline in credit quality % Q4 2008 Q1 2009 Q2 2009 11 Core (tier 1) ratio ex hybrid 8.1 7.9 8.2 28 6 Core (tie

22. Slide 22: Outlook for H2 2009

    Outlook for H2 2009 - Difficult market conditions to continue ! Tough oug macroeconomics ac oeco o cs ! Loan impairment charges to remain at a high level ! Robust banking activities ! Widening of lending margins, but pressure on deposits margin ! Uncertainty about trading income ! Intensified cost m

23. Slide 23: IV. Danske Bank Funding

    IV Danske Bank Funding IV.

24. Slide 24: Well-diversified funding structure

    Well-diversified funding structure – End-Q2 2009 Equity Central banks 4% 6% Repos Deposits 6% 30% • 52% (DKr (DK 1,248bn 1 248b / EUR 168bn) 168b ) deposits and fully match-funded Banks, net 5% Danish mortgage bonds (net) • Sh Short-term tt b bonds d DKr DK 240bn 240b / EUR S-T bonds 32bn 10% • DKr

25. Slide 25: Funding Sources

    Funding Sources Funding programmes 500 450 400 350 300 DKK bn 250 200 150 100 50 - Utilization end of Q2 2009 Limit end of Q2 2009 25

26. Slide 26: Funding programmes and utilisation

    Funding programmes and utilisation Funding sources Q4 2008 and Q2 2009 25% 31.12.2008 30.06.2009 20% 15% 10% 5% 0% Short term funding Long term funding 26

27. Slide 27: Liquidity and new funding

    Liquidity and new funding - Strong improvement as access to int’l capital markets has eased 12-month liquidity* New funding in Q2 2009 Moody’s Financial Strength by maturity DKr bn DKr bn 30 400 300 End-Q2 2009 200 20 100 End-Q4 2008 End-Q1 2009 0 10 -100 1 month months 2 weeks 3 weeks 1 week months

28. Slide 28: Danish State Guarantee Schemes

    Danish State Guarantee Schemes - Overview Bank Package I (October 2008) Bank Package II (February 2009) • Unconditionally, irrevocable guarantee by the Kingdom of Denmark • Ensures timely payment • AAA ratings, 0% risk weighting and ECB eligibility for €-issues • Covers both existing and new unsecur

29. Slide 29: Re-capitalisation instrument Overview

    Re-capitalisation instrument – Overview “Act on State-Funded Capital Injections” (Feb 3. 2009) Danske Bank’s solution (May 24. 2009) • Package size DKK 100bn • Danske Bank Group DKK 26bn Mortgage institutions 25bn Realkredit Danmark 2bn Banks 75bn Danske Bank A/S 24bn • Repayment condition • Hybrid,

30. Slide 30: Danske Bank covered bond universe

    Danske Bank covered bond universe - Legislation and history behind two business lines Covered Bond issuer since 2007 Specialized regulated mortgage bank Based on a new legislation Provides traditional mortgage loans Loans from f the Group’s banking Dates back to 1851 activities in Northern Europe Pa

31. Slide 31: Covered bonds in Danske Bank

    Covered bonds in Danske Bank • Danske Bank Covered Bond Programme was established in December 2007 • The legal framework is the Danish Financial Business Act adapted to CRD in 2007 • Only residential mortgages and public sector loan (and substitution assets) • Issues are done directly on the balance

32. Slide 32: www.danskebank.com/ir

    Danske Bank www.danskebank.com/ir Se

33. Slide 33: Contacts

    Contacts Cato Baldvinsson Tel.: + 45 45 12 84 10 Senior Vice President E-mail: [email protected] Peter Holm Tel.: + 45 45 12 84 85 Senior Vice President E-mail: [email protected] Knud Erik Kristensen Tel.: +45 45 12 84 86 Chief Funding Manager E-mail: E mail: knkr@danskebank [email protected] dk

34. Slide 34: V. Appendix

    Danske Vv. \ppendix

35. Slide 35: Rating

    Rating - Maintained since Q1 2009 Moody's Standard & Poor's Fitch Stable outlook Negative outlook Stable outlook Short Long Short Long Short Long P-1 Aaa A-1+ AAA F1+ AAA P2 P-2 Aa1 A1 A-1 AA+ F1 F-1 AA+ P-3 Aa2 A-2 AA F2 AA- Aa3 A-3 AA- F3 AA A1 B A+ B A+ A2 C A C A A3 D A- D A- Baa1 BBB+ BBB+ Baa2

36. Slide 36: Loan imp. charges geographical breakdown - 1

    Loan imp. charges – geographical breakdown - 1 - Improving trend in all Nordic countries except Finland DKr m A Accumulated l t d iimpairments i t 97 b bp** DKr m 10,000 3,000 Collective 1,288 Accumulated impairments154 bp* Denmark 2,500 Finland 59% of Group’s lending Individual 10% of Group’s lendi

37. Slide 37: Loan imp. charges - geographical breakdown - 2

    Loan imp. charges - geographical breakdown - 2 - Ireland and the Baltics account for a large portion of total impairments DKr m DKr m 2,000 5,000 Accumulated impairments 585 bp* Northern Ireland Accumulated impairments 278 bp* Ireland Collective 653 1,600 4,000 3% of Group’s lending Collective 148 5

38. Slide 38: Danske Bank covered bonds

    Danske Bank covered bonds - Characteristics for the “Cover Pool D” Pool notional DKK 33,0 bn (EUR 4,4bn equivalent) Number of Loans 55,052 Residential/ 100 % owner occupied residential properties Commercial WA Indexed LTV 59 % WA Seasoning 32 Months WA Average Remaining 27 Years Term Rate type Float

39. Slide 39: Danske Bank covered bonds

    Danske Bank covered bonds - Characteristics for the “Cover Pool D” – 01.08.2009 Cover Pool Characteristics - Loans by Size Cover Pool - Loans by LTV Cover Pool D Cover Pool D 18% 30% Exposure Exposure 16% 25% 14% 12% 20% 10% 15% 8% 6% 10% 4% 5% 2% 0% 0% 0 - 0,1 0,1 - 0,2 0,2 - 0,3 0,3 - 0,4 0,4 - 0,

40. Slide 40: Danske Bank covered bonds

    Danske Bank covered bonds - Characteristics for the “Cover Pool I” Pool notional DKK 50,6 bn (EUR 6,8bn equivalent) Number of Loans 65,797 Residential/ 79 % owner occupied residential properties, 21 % housing cooperatives, no Commercial commercial lending WA Indexed LTV 58 % WA Seasoning 30 Months W

41. Slide 41: Danske Bank covered bonds

    Danske Bank covered bonds - Characteristics for the “Cover Pool I” – 01.08.2009 Cover Pool Characteristics - Loans by Size Cover Pool - Loans by LTV Cover Pool I Cover Pool I 30% 20% Exposure Exposure 18% 25% 16% 14% 20 20% 12% 15% 10% 8% 10% 6% 4% 5% 2% 0% 0% 0 - 0,1 0,1 - 0,2 0,2 - 0,3 0,3 - 0,4 0

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