Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — Q3 2023 Earnings Presentation
12 slides from Danske Bank A/S's earnings presentation, Dec 29, 2023
Slide 1: Financial results – first nine months 2023
Financial results – first nine months 2023 Presentation for Q3 conference call Carsten Egeriis Stephan Engels Chief Executive Officer Chief Financial Officer
Slide 2: Highlights – strong financial performance and sustained execution of commercial agenda
Financial results – Q3 2023 Highlights – strong financial performance and sustained execution of commercial agenda despite slowdown in economic activity ✓ Commercial performance driven by strong NII uplift. Repricing ensures competitive and attractive customer offerings. Steady volume development de
Slide 3: Business units: Steady development, enhanced profitability and solid lending uplift
Financial results – Q3 2023 Business units: Steady development, enhanced profitability and solid lending uplift Y/Y for business customers Personal Customers Business Customers LC&I ✓ Solid income as deposit margin increase continues and ✓ Strong profit uplift Y/Y despite significant FX headwinds ✓
Slide 4: Strong income uplift supported by NII; recovery in trading/insurance
Financial results – Q3 2023 Strong income uplift supported by NII; recovery in trading /insurance despite impact from one-offs; strong credit quality underpins low impairments Key points 9M23 vs 9M22 Income statement and key figures (DKK m) ➢ Strong NII uplift (+46% Y/Y) benefiting from normalisatio
Slide 5: NII: Continued deposit margin expansion with deposit volumes remaining elevated
Financial results – Q3 2023 NII: Continued deposit margin expansion with deposit volumes remaining elevated; lending volumes have stabilised Highlights Net interest income 9M23 vs 9M22 (DKKm) Deposit margin development (%) 3.0 PC -717 25,866 ➢ Net interest income continues the positive trend -854 2.
Slide 6: Fees: Improving trend Q/Q as activity remained solid
Financial results – Q3 2023 Fees: Improving trend Q/Q as activity remained solid and capital markets/investment fees recover; Y/Y affected by lower lending activity and reduced AuM Highlights Net fee income (DKK m) 9,536 Activity-driven fees (transfers, accounts etc.) 42 -477 ➢ Resilient income from
Slide 7: Trading income: Strong recovery compared to 9M'22
Financial results – Q3 2023 Trading income: Strong recovery compared to 9M’22; Q3 impacted by one-off and seasonality Highlights Net trading income (DKK m) LC&I 809 -575 ➢ Y/Y: Recovery driven by better market conditions and 2,946 solid customer activity, underpinned by the new fixed 174 -96 income
Slide 8: Expenses: Steady cost focus mitigates inflation headwinds
Financial results – Q3 2023 Expenses: Steady cost focus mitigates inflation headwinds and supports cost/income ratio of 49% Highlights Expenses (DKK m) 19,570 ➢ Lower staff costs following structural cost reductions helped mitigate inflation pressure. FTE lower after closing of the Infosys transacti
Slide 9: Impairments: Continually robust credit quality resulted in low charges
Financial results – Q3 2023 Impairments: Continually robust credit quality along with stable macroeconomic environment resulted in low charges in Q3 Highlights Impairment charges by category (DKK bn) Credit quality deterioration Macro models ➢ Credit quality remained robust with limited credit quali
Slide 10: Capital: Strong capital base with CET1 ratio of 18.8%
Financial results – Q3 2023 Capital: Strong capital base with CET1 ratio of 18.8%, leaving a buffer of 450 bps to regulatory requirement Highlights CET1 development (%) CET1 buffer CET1 cap. req. ➢ CET1 ratio improved to 18.8%, driven by retained earnings, a slightly lower REA, 18.8 18.1 0.3 and low
Slide 11: Financial outlook: Net profit for 2023 narrowed to DKK 19.5-20.5 bn
Financial results – Q3 2023 Financial outlook: Net profit for 2023 narrowed to be in the range of DKK 19.5-20.5 bn Net interest income to continue to grow on the basis of the announced central bank rate hikes and our commercial momentum. Fee income to be below the level in 2022. Trading income at a
Slide 12: Q&A Session
Q&A Session Press *11 to ask a question