Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — 9M 2022 Earnings Presentation
14 slides from Danske Bank A/S's earnings presentation, Oct 27, 2022
Slide 1: Financial results - First nine months 2022
Financial results - First nine months 2022 Presentation for Q3 conference call Carsten Egeriis Stephan Engels Chief Executive Officer Chief Financial Officer
Slide 2: Highlights – Good activity, stringent execution and positive impact from rates
Financial results – First nine months 2022 Highlights – Good activity, stringent execution and positive impact from rates and strategic pricing initiatives underpin commercial progress Good commercial progress driving uplift in core banking income, as volume growth remains robust Solid capitalis
Slide 3: Update on the Estonia matter: Additional provision of DKK 14bn in Q3
Financial results – First nine months 2022 Update on the Estonia matter: Additional provision of DKK 14bn in Q3; Net Profit revised to a net loss better than DKK 5.5 bn, incl. goodwill impairment of DKK 1.6 bn Following discussions with the US and Danish authorities, DanskeBank is now able to make a
Slide 4: Business units: Continued progress in PC DK and Business Customers
Financial results – First nine months 2022 Business units: Continued progress in PC DK and Business Customers Key financial metrics Highlights Total Income** NII Fee + Trading Lending* PC DK: Solid NII uplift of 22% Q/Q as higher rates are supported by remortgaging activity and improved market 110
Slide 5: Business units: Good progress in LC&I; Danica impacted by volatile markets
Financial results – First nine months 2022 Business units: Good progress in LC&I driven by high activity; Danica impacted by volatile financial markets Key financial metrics Highlights Asset under Management Income breakdown (DKK bn) General Banking (index) (index) -1 0 1 2 3 4 5 6 7 8 9 10 11 Sig
Slide 6: Net interest income up by 8% YoY driven by repricing, volumes and higher rates
Financial results – First nine months 2022 Net interest income up by 8% YoY driven by repricing, volumes and higher rates; trading/insurance impacted by market turmoil; credit quality remains resilient Key points, 9M 22 vs 9M 21 Income statement and key figures (DKK m) • NII uplift from repricing in
Slide 7: NII: Solid credit demand, positive effects from CB rate hikes, and repricing
Financial results – First nine months 2022 NII: Solid credit demand, positive effects from CB rate hikes, and repricing initiatives continue to support the improving NII trend Highlights Net interest income, YTD-22 vs YTD-21 (DKK m) -320 • Net interest income continued the positive trend, as reprici
Slide 8: Fee: Strong fee performance in core banking activities
Financial results – First nine months 2022 Fee: Strong fee performance in core banking activities driven by activity fees, mitigating impact from lower AuM and lower activity in capital markets Highlights Net fee income (DKK m) Activity-driven fees / money transfers, accounts etc. 9,700 Money transf
Slide 9: Trading: Improvement in Q3 driven by recovery in Rates & Credit
Financial results – First nine months 2022 Trading: Improvement in Q3 driven by recovery in performance at Rates & Credit; negative valuation effects in Northern Ireland Highlights Net trading income (DKK m) LC&I LC&I ex. xVA xVA PC & BC Other 3,111 • Historically high volatility in Nordic fixed inc
Slide 10: Expenses: Underlying progress on efficiency despite high remediation costs
Financial results – First nine months 2022 Expenses: Underlying progress on efficiency despite continually high remediation costs; significant impact from additional provision and goodwill write-down Highlights Expenses, 9M-22 vs 9M-21 (DKK m) 35,197 • Progress on structural cost take-out with under
Slide 11: Impairments: Continually strong credit quality and individual reversals
Financial results – First nine months 2022 Impairments: Continually strong credit quality and individual reversals, while prudent buffers remain in place; modest macro-charges to reflect deteriorating outlook Highlights Impairment charges by category (DKK bn) • Credit quality remains strong with lim
Slide 12: Capital: CET1 ratio at 16.9%, 440bps buffer to requirements
Financial results – First nine months 2022 Capital: CET1 ratio at 16.9%, resulting in a 440bps buffer to current regulatory requirements Highlights Total REA (DKK bn) • CET1 ratio decreased to 16.9% as the Estonia-related provision impact was mitigated by the decision to 861.7 cancel the remaining ’
Slide 13: Revised net profit outlook for 2022
Financial results – First nine months 2022 Revised net profit outlook for 2022*: Adjusted for additional provision for the Estonia matter and goodwill write down, we now expect net loss better than DKK 5.5 bn We continue to expect income from core banking activities to be higher in 2022, as higher n
Slide 14: Q&A Session
Q&A Session Press “Ask a Press *11 to ask a question question” in your webcast player