Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — FY2015 Earnings Presentation
21 slides from Danske Bank A/S's earnings presentation, Feb 2, 2016
Slide 1: Financial results for 2015
Financial results for 2015 2 February 2016
Slide 2: A recovery is under way and appears likely to continue
A recovery is under way and appears likely to continue Employment 110 USA Index 2007=100 Eurozone 105 100 Denmark 95 Oil price development Industrial production, China 25 Annual growth rate (%) 120 20 100 15 80 60 10 40 5 20 0 0 2013 2014 2015 2016 Sources: National statistics via Macrobond, USA’s E
Slide 3: Moderate growth in Denmark – interest rates remained low
Moderate growth in Denmark – interest rates remained low Consumer spending growth, y/y (%) 8 6 4 2 0 -2 -4 -6 -8 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Housing prices; actual (dark), adjusted for seasonality Benchmark interest rates (light) 110 Index 2006=100
Slide 4: Strong financial results for 2015
Strong financial results for 2015 2015 2014 Index Net interest income 21,476 22,313 96 Net fee income 12,122 11,154 109 Net trading income 6,933 6,693 104 Other income 1,778 1,344 132 Net income from insurance business 1,892 2,496 76 Total income 44,201 44,000 100 Expenses 21,827 22,641 96 Goodwill
Slide 5: Trends in ROE and shareholders’ equity
Trends in ROE and shareholders’ equity Return on equity (%) 18.5 17.5 15.1 11.6* 8.6* Indsæt 5.0 passende 3.6 3.6 1.0 1.7 2.1* billede 05 06 07 08 09 10 11 12 13 14 15 Shareholder’s equity (DKK billions) CET 1 capital ratio (%) 16.1 +101% Target, at least 13% 149.5 6.7 74.5 2005 2015 2005 2015 * Bef
Slide 6: Dividend payout and share buy-back
Dividend payout and share buy-back Proposed dividend of Share buy-back programme for DKK 8 per share, DKK 9 bn in 2016 or 46% of net profit 5
Slide 7: Personal Banking
Personal Banking Profit before tax and goodwill (DKK millions) Strong pressure on net interest income because of low interest rates Strong refinancing activity and demand for 2014 4,648 investment solutions Low impairments and reduction of expenses +11% Increase in customer satisfaction in all marke
Slide 8: Business Banking
Business Banking Profit before tax and goodwill (DKK millions) Lending growth in all core markets Increase in customers in Denmark 2014 5,733 Rising market shares in Denmark, Sweden and Norway +32% Large drop in loan impairments, and expenses down 5% 2015 7,592 Lending (DKK billions) 2014 634 +5% 20
Slide 9: Corporates & Institutions
Corporates & Institutions Profit before tax (DKK millions) Rise in customer-driven income of 14% High customer activity – important IPOs, M&As, etc. 2014 4,135 Very high customer satisfaction in Nordics, with Corporate Banking, among others +30% Solid increase in trading activity 2015 5,396 Total in
Slide 10: Danske Capital
Danske Capital Profit before tax and goodwill (DKK millions) Good growth in the Nordics – 22.8% in market shares measured by net sales Rise in assets under management in 2014 1,406 alternative investments 71% of investment products delivered a return +17% above their benchmarks 2015 1,649 Named best
Slide 11: Danica Pension
Danica Pension Net income (DKK millions) The result from insurance business rose 6% The decline in net income was owing mainly to a lower investment return and lower 2014 2,496 extraordinary income recognition from the shadow account -24% Solid trend in Nordics – contributions rose 41% in Sweden and
Slide 12: We achieved our financial targets
We achieved our financial targets Financial targets Status, end-2015 Return on equity of 9.5% 11.6%* Improvement in ratings by at least one notch Stable A ratings Common equity tier 1 capital ratio of at least 13% 16.1% Total capital ratio of at least 17% 21% Dividend payout of 40-50% of net profit
Slide 13: And customer satisfaction is going in the right direction
And customer satisfaction is going in the right direction Corporates & Institutions Business Banking Personal Banking No. of Prospera rankings in top 3 No.1 No. 2 No. 3 38 18 17 (37%) (17%) (17%) Target is top three in 66.6% of surveys – in 2015, we reached 71% No. 1 in Nordics in • Corporate Bankin
Slide 14: Good progress in the Nordics
Good progress in the Nordics Sweden Increase in customers and 6% rise in lending Collaboration with SACO New customer programme Bank of the Year for personal customers New bond programme Finland Norway Good foundation for future growth Increase in lending of 26% Increased lending to SMEs Large incre
Slide 15: Solid progress in Northern Ireland
Solid progress in Northern Ireland Profit before tax (GBP millions) Increase in both lending and deposits Strong position in market for corporate clients 2014 102 Improved credit quality +37% Separate business unit 2015 140 Lending (GBP millions) 2014 4,213 +2% 2015 4,300 14
Slide 16: New Wealth Management unit with great potential
New Wealth Management unit with great potential 800,000 customers in the new business unit DKK 900 billion in assets under management Wealth Management gathers our expertise in wealth and asset management and pensions Improves customer services and accelerates the offering of innovative new solution
Slide 17: Innovation throughout our business
Innovation throughout our business Contactless Home and auto loans MasterCard and with fixed interest Visa/Dankort rates TouchID with New customer MobilePay and Mobile programme in Banking Sweden New health package Mixopsparing (mixed New savings Digital signature for from Danica Pension savings) in
Slide 18: Five trends are driving change
Five trends are driving change Macroeconomics Customer New competitors Digitalisation Regulations expectations 17
Slide 19: Four strategic themes set our future direction
Four strategic themes set our future direction 18
Slide 20: Outlook 2016
Outlook 2016 Net profit in line with 2015 level* * Before goodwill impairments. 19
Slide 21: Disclaimer
Financial results for Q1 2013 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,