Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — FY2005 Earnings Presentation
26 slides from Danske Bank A/S's earnings presentation, Feb 9, 2006
Slide 1: Annual Report 2005 Press conference
ANNUAL REPORT 2005 Press conference February 9, 2006
Slide 2: 2005 in brief
HIGHLIGHTS 2005 in brief - Strong customer activity drives profit growth Profit after tax DKr bn Ç38% 13 12.8 Better than expected 9 Strong customer activity in Denmark, Sweden, Norway, Northern Ireland and 9.3 the Republic of Ireland 5 2004 2005 2
Slide 3: 2005 in brief
HIGHLIGHTS 2005 in brief - Strong customer activity drives profit growth Share trading volume, OMX Copenhagen DKr bn Ç58 % 110 70 Profit after tax DKr bn Ç38% 13 12.8 30 2004 2005 9 Mortgage finance: Gross lending, Denmark 9.3 DKr bn Ç71 % 200 5 2004 2005 100 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2004 2005 3
Slide 4: 2005 in brief
HIGHLIGHTS 2005 in brief - Strong customer activity drives profit growth Profit after tax DKr bn Ç38% 13 12.8 Financial highlights Income Ç20% 9 Expenses Ç18% Return on equity 18.5% 9.3 Dividend per share DKr 10 5 2004 2005 4
Slide 5: Strategic measures
STRATEGY Strategic measures - Our retail bank-platform is the foundation for expansion One of Denmarks leading companies in foreign exchange earnings Vision and mission Profit before tax: DKr 579m Downscaling of operations in London US branch closed Sweden Profit before tax: DKr 809m 5
Slide 6: Fees: Press cuttings regarding fees from Danish newspapers
FEES Press cuttings regarding fees from Danish newspapers 6
Slide 7: Fees
FEES Fees - The majority or retail customers fees are activity based Total fee income: DKr 7.3bn Fee income, retail: DKr 2.8bn Everyday banking Corporate customers (DKr 649m) (DKr 1,782m) 9% Loans and Retail 23% remortgaging (DKr 2,842m) (DKr 987m) Activities Securities outside Denmark trading (DKr
Slide 8: Fees
FEES Fees Account Debit card Netbank 8
Slide 9: Danske Bank fee policy web page
ske Bank rosoft Internet Explorer provided by DT Filer Rediger ‘is Foretrukne = Funstioner ~ Hjaelp Oun-O- is) Bl G[Dw Fermin Gee OG BL Log on v Personal Finance Corporate & Institutional Danske] [Eis Home Settings Aboutthe Bark Search Sitemap Cantact Disclaimer Print Personal Finance> Danske Bank's
Slide 10: Corporate social responsibility
RESPONSIBILITY Corporate social responsibility - Danske Bank takes an active role in Danish society CULTURE VIDEN SPORTS KNOWLEDGE 10
Slide 11: www.danskebank.com/cg
RESPONSIBILITY www.danskebank.com/cg - Greater openness 11
Slide 12: Income statement
FINANCIAL ACCOUNTS Income statement - Highest earnings in the Groups history Income statement DKr m 2004 2005 Index Income 29,187 34,891 120 Expenses 15,393 18,198 118 Profit before credit expenses 13,794 16,693 121 Credit loss expenses 759 -1,096 - Profit before tax 13,035 17,789 136 Tax 3,718 4,9
Slide 13: Expenses (1)
FINANCIAL ACCOUNTS Expenses (1) - Up 18% DKr bn Expenses 20 Ç18 % 15 10 2004 2005 13
Slide 14: Expenses (2)
FINANCIAL ACCOUNTS Expenses (2) - Up 1% excluding Northern Bank and National Irish Bank DKr bn Expenses 20 NB & NIB Operational expenses Ç1 % Integration expenses Amortisation 15 10 2004 2005 14
Slide 15: Banking Activities Danske Bank
FINANCIAL ACCOUNTS Banking Activities Danske Bank - Strong earnings, but tougher competition Loans Ç 21% Net interest income Ç 7% Total income Ç 11% Profit before tax Ç 66% Sweden 15
Slide 16: Banking Activities BG Bank
FINANCIAL ACCOUNTS Banking Activities BG Bank - Healthy growth despite increased competition Loans Ç 15% Net interest income Ç 3% Total income Ç 6% Profit before tax Ç 22% Sweden 16
Slide 17: Banking Activities Sweden
FINANCIAL ACCOUNTS Banking Activities Sweden - Continuing expansion and growing market shares Sweden Loans Ç 24% Net interest income Ç 8% Total income Ç 9% Profit before tax Ç 22% Sweden 17
Slide 18: Banking Activities Norway
FINANCIAL ACCOUNTS Banking Activities Norway - Strong volume and profit growth Loans Ç 33% Net interest income Ç 13% Total income Ç 25% Profit before tax Ç 80% Sweden 18
Slide 19: Banking Activities Northern Ireland
FINANCIAL ACCOUNTS Banking Activities Northern Ireland - Earnings in line with expectations Loans DKr 40bn Net interest income DKr 1,317m Total income DKr 1,810m Profit before tax DKr 23m Sweden 19
Slide 20: Banking Activities Ireland
FINANCIAL ACCOUNTS Banking Activities Ireland - Earnings in line with expectations Loans DKr 34bn Net interest income DKr 621m Total income DKr 753m Profit before tax DKr -106m Sweden 20
Slide 21: Mortgage Finance
FINANCIAL ACCOUNTS Mortgage Finance - Strong year with record-high remortgaging volume Loans Ç 9% Net interest income Ç 12% Total income Ç 13% Profit before tax Ç 24% Sweden 21
Slide 22: Danske Markets
FINANCIAL ACCOUNTS Danske Markets - Heavy volume and higher-than-expected earnings Total income Ç 24% Trading activities Ç 30% Investment portfolio Ç 45% Profit before tax Ç 32% Sweden 22
Slide 23: Danica Pension
FINANCIAL ACCOUNTS Danica Pension - Earnings growth, but weak trend in health & accident segment Gross premiums Ç 15% Return on investments 12.6% Net income Ç 3% Sweden 23
Slide 24: New targets for capital management
CAPITAL MANAGEMENT New targets for capital management - Dividend to 30-50%, core capital to 6.0-6.5% Percentage of loans weighted 50% or lower % 63 (primarily mortgage loans) 61 60 % Annual growth in risk-weighted assets 17 57 57 NB & NIB 17 % 54 2000 2005 6 >10 % 5% % Percentage of income from outs
Slide 25: Outlook for 2006
OUTLOOK Outlook for 2006 - Sound macroeconomic climate and high growth, but lower profit - + 8 Higher integration expenses 9 Retail banking expansion 8 One-off revenues in 2005 9 Favourable macroeconomic 8 Low credit loss expenses, but no net conditions reversal 9 Increasing interest rates 8 Lower t
Slide 26: Questions & answers
Questions & answers Q&A will not be webcasted www.danskebank.com 26