Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — Q2 2005 Earnings Presentation
50 slides from Danske Bank A/S's earnings presentation, August 2005
Slide 1: Fact Book Q2 2005
Danske Bank Fact Book Q2 2005 Fact Book Q2 2005 Supplementary Information for Investors and Analysts Unaudited Updated: August 2005 1
Slide 2: Contact information and disclaimer
Danske Bank Fact Book Q2 2005 Fact Book Q2 2005 This publication is meant as a supplement to the information published in the quarterly interim reports and the annual report. Additional information can be found on www.danskebank.com and www.danskebank.dk. For further information, please contact: Ton
Slide 3: Table of contents
Danske Bank Fact Book Q2 2005 Table of contents 1. Danske Bank Group overview 3. Business segments and key statistics 1.1. History 5 3.1. Banking Activities 26 1.2. Executive management 6 3.1.1. Banking Activities, Danske Bank 27 1.3. Business profile and vision 8 3.1.2. Banking Activities, BG Bank
Slide 4: Danske Bank Group overview
Danske Bank Fact Book Q2 2005 Danske Bank Group overview 4
Slide 5: 1.1. History
Danske Bank Fact Book Q2 2005 1.1. History Danske Bank A/S was founded in 1871 and has merged with a number of financial institutions through the years. In 1990, it merged with Aktieselskabet Kjøbenhavns Handelsbank, which was founded in 1873, and with Provinsbanken A/S, which dated back to 1846. In
Slide 6: 1.2. Executive management
Danske Bank Fact Book Q2 2005 1.2. Executive management Executive Board and members of the Executive Committee Peter Straarup, CEO Jakob Brogaard Chairman of the Executive Board Deputy Chairman of the Executive Board and the Executive Committee and member of the Executive Committee Born in 1951 Born
Slide 7: Danske Bank Group Organisation
Danske Bank Fact Book Q2 2005 Danske Bank Group Board of Directors August 2005 Organisation Board of Directors Secretariat Audit Department Steen Rasmussen Jens Peter Thomassen Senior Vice President Group Chief Auditor Chairman of the Executive Board Peter Straarup *) Dep. Chairman of the Executive
Slide 8: 1.3. Business profile and vision
Danske Bank Fact Book Q2 2005 1.3. Business profile and vision The Danske Bank Group provides a wide range of banking, mortgage and insurance products as well as other financial services. It is the largest financial institution in Denmark and one of the largest in the Nordic region, measured by tota
Slide 9: 1.4. Ratings
Danske Bank Fact Book Q2 2005 1.4. Ratings The Danske Bank Group has been rated by the three large international credit rating agencies: Moody's, Standard & Poor's and Fitch Ratings. The agencies each use their own rating scales, on which the highest possible ratings are AAA and Aaa (see the table b
Slide 10: 1.5. Geographical operations
Danske Bank Fact Book Q2 2005 1.5. Geographical operations Danske Bank is predominantly represented in Northern Europe within retail banking. Danske Bank is furthermore either directly or indirectly represented in many financial centres around the world, through branches in London and Hamburg as wel
Slide 11: Brands
Danske Bank Fact Book Q2 2005 Brands A central part of Danske Banks marketing strategy concerns utilising the groups various brands. Although we operate on a shared IT platform, we believe that targeted branding is necessary in order to appeal to as many customers as possible. Overview of brands i
Slide 12: Financial statistics
Danske Bank Fact Book Q2 2005 Financial statistics 12
Slide 13: 2.1. Income statement – Danske Bank Group
Danske Bank Fact Book Q2 2005 2.1. Income statement Danske Bank Group Income statement (DKr m) Year to date Full year Q205 Q105 Q404 Q304 Q204 Q104 2005 2004 Interest income 13,869 14,109 14,564 13,498 13,408 12,651 27,978 54,121 Interest expense 9,599 10,107 10,825 9,837 9,689 9,018 19,706 39,369
Slide 14: 2.1.1. Breakdown of income statement
Danske Bank Fact Book Q2 2005 2.1.1. Breakdown of income statement Income Country distribution of net interest income England The Rep. of Others 0% Others England Q2 2005 Ireland* 6% Q2 2004 6% 3% Danske Bank, BG bank & Mortgage Finance 4% Sweden Norway 9% Sweden Northern Ireland* Northern Ireland 9
Slide 15: Net interest income; Net fees and commissions
Danske Bank Fact Book Q2 2005 Net interest income DKr m 4,000 3,000 2,000 1,000 0 Q104 Q204 Q304 Q404 Q105 Q205 Net interest income Net fees and commissions DKr m 2,000 1,500 1,000 500 0 Q104 Q204 Q304 Q404 Q105 Q205 Guarantees & other commissions Security & custody commissions Payment services Remo
Slide 16: Total other income
Danske Bank Fact Book Q2 2005 Total other income DKr m 4,000 3,000 2,000 1,000 0 Q104 Q204 Q304 Q404 Q105 Q205 Net trading income Other income Net income from insurance business 16
Slide 17: Expenses
Danske Bank Fact Book Q2 2005 Expenses Total IT expenses IT expenses (DKr m) Year to date Full year Q205 Q105 Q404 Q304 Q204 Q104 2005 2004 Total IT expenses (development and operations) 717 600 618 536 587 592 1,317 2,333 Total IT expenses/operating expenses, % 15.3 15.2 14.1 15.4 15.7 15.6 15.2 15
Slide 18: 2.2. Balance sheet
Danske Bank Fact Book Q2 2005 2.2. Balance sheet Balance sheet (DKr m) End of period End of year Q205 Q105 Q404 Q304 Q204 Q104 2005 2004 Cash in hand and demand deposits with central banks 5,347 10,257 7,741 8,491 4,895 13,780 5,347 7,741 Due from credit institutions and central banks 259,136 245,07
Slide 19: 2.2.1. Breakdown of balance sheet
Danske Bank Fact Book Q2 2005 2.2.1. Breakdown of balance sheet Lending portfolio broken down by segment Danske Banks lending portfolio is concentrated in the Nordic region. Lending portfolio breakdown, end period End of period End of year Volume (DKr bn) Segment Q205 Q105 Q404 Q304 Q204 Q104 2005
Slide 20: Deposit portfolio broken down by segment
Danske Bank Fact Book Q2 2005 Deposit portfolio broken down by segment Deposit portfolio breakdown, end period End of period End of year Volume (DKr bn) Segment Q205 Q105 Q404 Q304 Q204 Q104 2005 2004 Banking Activities, Danske Bank Retail 115 108 108 101 100 95 115 108 Corporate 97 84 81 84 85 84 9
Slide 21: Bank lending and deposits by segment Q205
Danske Bank Fact Book Q2 2005 Others Others 5% Bank lending, retail Q205 Bank lending, corporate Q205 BA, The Rep. of 10% Ireland Banking Activities, Danske Bank 6% Banking Activities, BG Bank Danske Markets BA, DB BA, Northern Banking Activities, Norway 11% 34% Ireland Banking Activities, Sweden 9%
Slide 22: Provisions and non performing loans
Danske Bank Fact Book Q2 2005 Provisions and non performing loans Provisions and non performing loans (Danske Bank Group) Year to date Full year Q205 Q105 Q404 Q304 Q204 Q104 2005 2004 Accumulated provisions (DKr bn end period)* 5.61 5.80 5.81 7.10 7.10 7.20 5.61 5.81 Non performing loans (Dkr bn en
Slide 23: Key ratios
Danske Bank Fact Book Q2 2005 Key ratios Key ratios Year to date Full year Q205 Q105 Q404 Q304 Q204 Q104 2005 2004 Net profit for the period per share, DKr 4.9 4.8 4.8 3.5 2.8 3.4 9.6 14.4 Diluted net profit for the period per share, DKr 4.9 4.8 4.8 3.5 2.8 3.4 9.6 14.4 Net profit for the period as
Slide 24: 2.3. Key indicators
Danske Bank Fact Book Q2 2005 2.3. Key indicators 20.0 17.5 18.0 17.5 16.4 15.0 14.4 16.0 13.3 15.2 15.0 14.0 13.9 12.5 11.9 11.5 12.5 11.5 9.4 9.6 10.0 8.2 10.0 7.5 7.5 5.0 5.0 2.5 2.5 0.0 0.0 1999 2000 2001 2002 2003 2004 2005 1999 2000 2001 2002 2003 2004 H1 2005 * Return on equity (after tax) p.
Slide 25: Business segments and key statistics
Danske Bank Fact Book Q2 2005 Business segments and key statistics 25
Slide 26: 3.1. Financial performance, Banking Activities
Danske Bank Fact Book Q2 2005 3.1. Financial performance, Banking Activities Banking activities encompasses all banking activities in Danske Bank Group both national and international. Other Banking Activities comprise the Danish banking activities carried out by Nordania and HandelsFinans and the i
Slide 27: 3.1.1. Financial performance, Danske Bank
Danske Bank Fact Book Q2 2005 3.1.1. Financial performance, Danske Bank Banking Activities, Danske Bank, encompasses the banking activities of the Danske Bank division in Denmark. Danske Bank caters to all types of retail and corporate customers. The Bank's finance centres serve large corporate and
Slide 28: 3.1.2. Financial performance, BG Bank
Danske Bank Fact Book Q2 2005 3.1.2. Financial performance, BG Bank Banking Activities, BG Bank, encompasses the banking activities of the BG Bank division in Denmark. BG Bank caters to all types of retail customers and most types of corporate customers through its branch network. In addition, BG Ba
Slide 29: Net interest income in Danske Bank and BG Bank (YOY)
Danske Bank Fact Book Q2 2005 Net interest income in Banking Activities, Danske Bank and BG Bank (YOY) Historical net interest income in Banking Activities, Danske Bank and BG Bank (DKr m) Q204 Change Q205 Net interest income in Q204 2,101 Loan volume 291 Loan margins -210 Deposit volume 46 Deposit
Slide 30: 3.1.3. Financial performance, Norway
Danske Bank Fact Book Q2 2005 3.1.3. Financial performance, Norway Banking Activities Norway encompasses primarily the banking activities of Fokus Bank in Norway. Fokus Bank serves all types of retail and corporate customers. Banking Activities Norway has 70 branches and about 1,000 employees. Banki
Slide 31: 3.1.4. Financial performance, Sweden
Danske Bank Fact Book Q2 2005 3.1.4. Financial performance, Sweden Banking Activities Sweden encompasses the banking activities of Östgöta Enskilda Bank and Provinsbankerne in Sweden, which serve all types of retail and corporate customers. Banking Activities Sweden has 53 branches and about 1,000 e
Slide 32: 3.1.5. Financial performance, Northern Ireland
Danske Bank Fact Book Q2 2005 3.1.5. Financial performance, Northern Ireland Banking Activities Northern Ireland encompasses the banking activities of Northern Bank. Northern Bank serves retail and corporate customers. Banking Activities Northern Ireland has 95 branches, 13 business centres and empl
Slide 33: 3.1.6. Financial performance, The Republic of Ireland
Danske Bank Fact Book Q2 2005 3.1.6. Financial performance, The Republic of Ireland Banking Activities Ireland encompasses the banking activities of National Irish Bank. National Irish Bank serves primarily retail customers and large corporate customers. Banking Activities Ireland has 59 branches an
Slide 34: 3.1.7. Financial performance, Other Banking Activities
Danske Bank Fact Book Q2 2005 3.1.7. Financial performance, Other Banking Activities Other Banking Activities comprises the Danish banking activities of Nordania and HandelsFinans and banking activities carried out in England, the USA, Luxembourg, Germany, Poland and Finland. Other Banking Activitie
Slide 35: 3.2. Financial performance, Mortgage Finance
Danske Bank Fact Book Q2 2005 3.2. Financial performance, Mortgage Finance Mortgage Finance encompasses the Danske Bank Group's mortgage finance and real-estate agency business in Denmark. The division markets its financing solutions through Realkredit Danmark, Danske Bank, BG Bank and "home". Real-
Slide 36: Distribution of loan portfolio
Danske Bank Fact Book Q2 2005 Distribution of loan portfolio Distribution of loan portfolio by loan-to-value ratios as at June 30, 2005 Distribution of loan portfolio by outstanding bond debt as at June 30, 2005 100 100 Outstanding debt per property: Percentage of loan portfolio 80 80 Share of portf
Slide 37: 3.3. Financial performance, Danske Markets
Danske Bank Fact Book Q2 2005 3.3. Financial performance, Danske Markets Danske Markets is responsible for the Groups activities in the financial markets. Trading activities include trading in fixed-income, foreign exchange, equity and interest-bearing securities, providing the largest corporate an
Slide 38: 3.4. Financial performance, Danske Capital
Danske Bank Fact Book Q2 2005 3.4. Financial performance, Danske Capital Danske Capital manages the funds of retail customers and institutional investors and the funds of Danica Pension, Firstnordic, Puljeinvest (pooled investment) and Flexinvest. The division also provides advisory services to Dans
Slide 39: 3.5. Financial performance, Danica Pension
Danske Bank Fact Book Q2 2005 3.5. Financial performance, Danica Pension The Forsikringsselskabet Danica Group encompasses all Danicas activities in the life insurance and pensions market. Marketed under the name of Danica Pension, the unit targets both personal and corporate customers. Products ar
Slide 40: Shareholder information
Danske Bank Fact Book Q2 2005 Shareholder information 40
Slide 41: 4.1. Ownership structure
Danske Bank Fact Book Q2 2005 4.1. Ownership structure Shareholder composition At the end of June 2005, Danske Bank had about 290,000 shareholders. Some 17 shareholders held around 57% of the Bank's share capital. Shareholder breakdown by size Size of holding (end-period) Number of shareholders Perc
Slide 42: Geographical shareholder breakdown; 4.2. Common share data
Danske Bank Fact Book Q2 2005 Geographical shareholder breakdown The Bank estimates that one-third of its share capital is held outside of Denmark. The region with the largest shareholding outside of Denmark is the US, with about 12% of the Bank's share capital. England ranks second, with about 9%.
Slide 43: Per share data
Danske Bank Fact Book Q2 2005 Per share data (DKr) Year to date * 2005 2004 * 2003 2002 2001 2000 Earnings per share, DKr 9.6 14.4 13.3 11.5 11.9 8.2 Price/earnings, end of period p.a. 19.3 11.6 10.4 10.2 11.4 17.3 Dividend per share, DKr - 7.85 6.55 4.75 4.75 4.40 Dividend yield, % - 5.6 4.7 4.0 3.
Slide 44: Macroeconomics
Danske Bank Fact Book Q2 2005 Macroeconomics 44
Slide 45: 5.1. Tables and charts
Danske Bank Fact Book Q2 2005 5.1. Tables and charts Denmark (%) 2006E 2005E 2004 2003 2002 2001 2000 GDP Growth 2.5 2.4 2.1 0.6 0.5 0.7 3.5 Export 5.2 4.8 3.2 -1.1 4.8 3.1 12.7 Private Consumption 2.3 3.7 3.8 1.4 0.8 0.1 0.2 Public Consumption 0.5 0.7 2.0 0.4 2.2 2.2 2.3 Inflation 1.9 1.7 1.2 2.1 2
Slide 46: Euroland, Ireland and UK macro tables
Danske Bank Fact Book Q2 2005 Euroland (%) 2006E 2005E 2004 2003 2002 2001 2000 GDP Growth 2.2 1.4 1.8 0.5 0.8 1.6 3.5 Export 5.5 5.0 5.6 0.3 1.8 3.3 12.2 Private Consumption 1.9 1.4 1.2 1.0 0.6 1.9 2.8 Public Consumption 2.1 1.9 1.6 1.7 3.1 2.4 2.3 Inflation 1.9 2.0 2.1 2.1 2.3 2.3 2.1 Unemployment
Slide 47: House price index; Unemployment Rate (DK)
Danske Bank Fact Book Q2 2005 House price index (DK-seasonally adj) The Economist's house-price indices (1995=100) 240 South Africa 244 215 Ireland 192 190 Britain 154 165 Spain 145 140 Australia 114 115 France 87 Sweden 84 90 1995 1995 1996 1997 1998 1998 1999 2000 2001 2001 2002 2003 2004 2004 200
Slide 48: GDP Growth; Private Consumption
Danske Bank Fact Book Q2 2005 GDP Growth 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2000 2001 2002 2003 2004 2005E 2006E Denmark Norway Sweden Ireland UK Private Consumption 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2000 2001 2002 2003 2004E 2005E 2006E Denmark Norway Sweden Ireland UK 48
Slide 49: Household debt and interest payments, Denmark and Norway
Danske Bank Fact Book Q2 2005 % of disposable Household debt and interest payments, Denmark % of disposable income income 240 Debt burden Interest burden 12.0 230 10.0 220 8.0 210 200 6.0 190 4.0 180 2.0 170 160 0.0 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Sep-99 Sep-00 Sep-01 Sep-02 Sep-03 Sep-04
Slide 50: Household debt and interest payments, Sweden
Danske Bank Fact Book Q2 2005 % of disposable Household debt and interest payments, Sweden % of disposable income income 160 Debt burden Interest burden 12.00 140 10.00 120 8.00 100 80 6.00 60 4.00 40 2.00 20 0 0.00 Jun-89 Jun-92 Jun-95 Jun-98 Jun-01 Jun-04 Jun-07 Sep-88 Sep-91 Sep-94 Sep-97 Sep-00