Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — FY2013 Earnings Presentation
23 slides from Danske Bank A/S's earnings presentation, Feb 6, 2014
Slide 1: Financial results for 2013
PRESS CONFERENCE Financial results for 2013 Thomas F. Borgen Chief Executive Officer 6 February 2014
Slide 2: Agenda
Agenda Financial results for 2013 Strategy and market developments Outlook for 2014 2
Slide 3: Improvement, but still unsatisfactory
Improvement, but still unsatisfactory Income statement & key figures (DKK millions) 2013 2012 Index Net interest income 22,245 22,778 98 Net fee income 9,525 8,866 107 Net trading income 5,818 10,562 55 Other income 1,328 1,285 103 Net income from insurance business 1,088 2,171 50 Total income 40,00
Slide 4: Expenses declined slightly in 2013 – substantial reductions going forward
Expenses declined slightly in 2013 – substantial reductions going forward Trend in expenses from 2012 to 2014 (DKK billions) -1% -5% 24.6 24.3 About DKK 23 billion 2012 2013 Expected in 2014 4
Slide 5: Impairment charges return to normal
Impairment charges return to normal Loan impairment charges, 2008-13 (DKK billions) Impairments Loan loss ratio* (rhs) 10 180 9 150 8 7 120 6 5 90 4 60 3 2 30 1 11 33 23 0 0 Q2 Q2 Q2 Q2 Q2 Q2 08 09 10 11 12 13 * The loan loss ratio is defined as the Group’s quarterly impairments (annualised) as a pe
Slide 6: Winding up of Non-core Ireland proceeding as planned
Winding up of Non-core Ireland proceeding as planned Credit exposure,* 2013 (DKK billions) Status of property sales, 2013 (No. properties) Q113 Q213 Q313 Q413 -23% 17.6 1,423 16.9 15.9 13.6 886 707 293 106 95 95 40 Q1 Q2 Q3 Q4 For sale Sold • * Excluding the allowance account. 6
Slide 7: Solid capital base; outlook for dividend for first time in six years
Solid capital base; outlook for dividend for first time in six years Capital base* (%) Tier 2 Board of Directors is proposing a dividend Hybrid tier 1 (incl. state hybrid) of DKK 2 per share, or 28% of the net Core tier 1 profit for the year 21.3 21.4 2.4 2.4 1.5 4.4 2.8 State hybrid 14.5 14.7 2012
Slide 8: Stable ratings with a positive underlying trend
Stable ratings with a positive underlying trend 5Y CDS spread, July 2012 - Dec 2013 (bp) 2012 2013 Danske Bank Swedbank Nordea Positive outlook Stable outlook 350 A- A- 300 250 127 Stable outlook Positive outlook 200 Baa1 Baa1 150 100 1 50 Negative outlook Stable outlook 0 A A Sep- Dec- Mar- Jun- Se
Slide 9: Our vision and mission stand firm, and we are accelerating the execution of our strategy
Our vision and mission stand firm, and we are accelerating the execution of our strategy Vision Mission “Recognised as the most trusted financial partner” “Setting new standards in financial services” Customer Financial Advisory Digitalisation Openness & satisfaction results services Transparency Pr
Slide 10: Personal Banking: Significant improvement
Personal Banking: Significant improvement Profit before tax (DKK millions) 2012 1,650 Proactive advice +64% 2013 2,698 Tailor-made solutions Easy banking Losses and impairments (DKK millions) 2012 2,749 -30% 2013 1,935 10
Slide 11: Personal Banking
Personal Banking Initiatives Customer programme in DK: Increase in market shares for 1.2 million customers bank lending and Realkredit Danmark MobilePay :1 million downloads, 33,000 transfers per day Higher customer satisfaction in Norway and Sweden Online meetings: 13% of meetings held in
Slide 12: Sharp decline in customer outflow and increased customer satisfaction
Sharp decline in customer outflow and increased customer satisfaction Customer outflow (lhs) Customer satisfaction (1-10, rhs) 14,000 7.5 12,000 10,000 7.0 8,000 6,000 6.5 4,000 2,000 0 6.0 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec * Source: GMI and external Benchmark (6-month rolling data).
Slide 13: Business Banking: Sharp drop in impairments
Business Banking: Sharp drop in impairments Profit before tax (DKK millions) 2012 3,061 Specialised advice and targeted +55% solutions 2013 4,752 Faster, uniform credit processing Losses and impairments (DKK millions) Easy banking 2012 3,825 -53% 2013 1,779 13
Slide 14: Business Banking
Business Banking Initiatives Specialist centres in all the • High customer satisfaction in capitals Sweden, Norway and Northern Ireland International banking organisation • Still a way to go in Denmark and Finland Corporate bonds • ROE rose from 7.2% to 10.6% Mobile and tablet apps – MobileP
Slide 15: Corporates & Institutions: “Best in Nordic region”
Corporates & Institutions: “Best in Nordic region” Profit before tax (DKK millions) Best bank in Nordic region for large 2012 5,929 corporates and institutional clients* -43% 2013 3,374 Investment in corporate finance, transaction banking and bonds, • New trading platform: One Trader Client-driv
Slide 16: Danske Capital: Strong market position
Danske Capital: Strong market position Profit before tax (DKK millions) Rising sales and higher market shares in all markets 2012 935 +21% Excess returns for investors 2013 1,131 Stronger position in alternative investments Assets under management (DKK billions) Danske Invest named the best
Slide 17: Danica: Weak result, but increase in customer satisfaction
Danica: Weak result, but increase in customer satisfaction Profit before tax (DKK millions) • Higher customer satisfaction • Inflow of new customers in Norway 2012 2,171 -50% and Sweden 2013 1,088 • No. 2 in Nordic region as measured by contributions Premiums (DKK millions) • Enhanced collaboration
Slide 18: Macro and outlook
Danske |BZEii< Macro and outlook
Slide 19: Weak economic growth
Weak economic growth Consumer confidence GDP Source: MacroBond. Eurostat data for Denmark, Sweden, and Finland. For Norway, the indicator compiled by Finance Norway. Norwegian data is quartlerly; others are three- month moving averages. 19
Slide 20: Outlook for 2014
Outlook for 2014 Slightly increasing but fragile economic growth, with interest rates Macro remaining low Income Total income is expected to be above the level in 2013 Expenses Expenses to be reduced to around DKK 23 billion Impairments Impairments likely to be stable at all business units Net profi
Slide 21: Financial targets: On track to meet our targets for 2015
Financial targets: On track to meet our targets for 2015 Ambition Status on 31 December 2013 Return on equity 9% 5.0% S&P/Moody’s/Fitch Improve ratings by at least Ratings A-/Baa1/A one notch Stable/Positive/Stable Core tier 1 ratio Minimum 13% 14.7% Total capital ratio Minimum 17% 21.4% Nominal cos
Slide 22: www.danskebank.com/ir
Please use the microphones beside your seats www.danskebank.com/ir 22
Slide 23: Disclaimer
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 inducement to enter into