Danske Bank A/s · OMXCOP:DANSKE
Danske Bank A/s — Q1 2025 Earnings Presentation
63 slides from Danske Bank A/s's earnings presentation, May 2025
Slide 1: Financial results Q1 2025
Financial results Q1 2025 Investor Presentation
Slide 2: Contents
Investor Presentation – Q12025 Contents Danske Bank – brief overview 03 – 11 Financial highlights – Q1 2025 12 – 18 Business & Product Units 19 – 24 Credit Quality & Impairments 25 – 32 Capital 33 – 36 Funding & Liquidity 37 – 41 ESG, Sustainability, Financial Crime Prevention 42 – 52 Credit & ESG R
Slide 3: Danske Bank - a brief overview
Danske Bank - a brief overview Danske Bank 3
Slide 4: We are a focused Nordic bank with strong regional roots
Investor Presentation – Q12025 We are a focused Nordic bank with strong regional roots Finland (AA+) >2.9m 2,000+ ~20,000 3rd largest personal and business large corporate and employees in Share of Group lending: 8% customers institutional customers 10 countries GDP growth 2025E: 1.1% DKK >870bn* >D
Slide 5: Nordic Outlook March 2025: Strong economies, despite the uncertainties
Investor Presentation – Q12025 Nordic Outlook March 2025: Strong economies, despite the uncertainties Denmark Sweden 2024 Forecast 2025 Forecast 2026 2024 Forecast 2025 Forecast 2026 GDP Growth 3.6% 3.9% (2.5%) 2.9% (2.3%) GDP Growth 1.0% 1.7% (2.5%) 2.7% (2.2%) Inflation 1.4% 1.8% (1.8%) 1.6% (1.7%
Slide 6: Macroeconomic development and outlook in the Nordics
Investor Presentation – Q12025 Macroeconomic development and outlook in the Nordics GDP development (%) Unemployment (%) House prices (index 100=2006) 8 14 280 6 260 12 4 240 10 220 2 200 0 8 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 180 -2 6 160 -4 4 140 -6 120 2 -8 100 80 2006 2008 20
Slide 7: Our commitments for 2026
Investor Presentation – Q12025 Our commitments for 2026 Growth in focus segments Strategic KPIs for ‘26 Financial targets for ‘26 13% Leading wholesale and business bank in the Nordics Personal Number of meetings per Customers advisor (Index: 2023 = 100) 163 Leading retail bank in Denmark and Finlan
Slide 8: Highlights: Good start to the year driven by steady income
Investor Presentation – Q12025 Highlights: Good start to the year driven by steady development in income from solid customer activity, despite market uncertainty Net profit DKK 5.8bn Core income underpinned by (+2% Y/Y) strong corporate activity 13.3% ROE Resilient NII and improved fee trajectory, c
Slide 9: With a leading market position in strong Nordic economies
Investor Presentation – Q12025 With a leading market position in strong Nordic economies, Danske Bank is focused on supporting customers Strong economic backdrop – in Denmark and other Nordic economies Low risk balance sheet - limited direct exposure to tariffs Denmark 2024 Forecast 2025 Forecast 20
Slide 10: Danske Bank's strong and liquid balance sheet underpins our resilient business model
Investor Presentation – Q12025 Danske Bank’s strong and liquid balance sheet underpins our resilient business model Danske Bank has a sound funding structure and remains very well capitalised with a prudent CET1 capital buffer to the current regulatory requirements. Further, our liquidity is underpi
Slide 11: Our strategic approach and priorities for sustainability
Investor Presentation – Q12025 Our strategic approach and priorities for sustainability To be a leading Nordic bank in supporting the sustainability transition of Our strategic ambition customers, companies we invest in and Nordic societies Create lasting value for our customers, business and societ
Slide 12: Financial highlights – first quarter 2025
Financial highlights – first quarter 2025 Danske Bank 12
Slide 13: Solid financial performance supported by core banking income
Investor Presentation – Q12025 Solid financial performance supported by core banking income. Net profit up 2% Y/Y supported by stable costs and low level of impairments Highlights Income statement (DKK m) Solid total income supported by resilient NII and Q1 25 Q1 24 Index Q4 24 Index encouraging fee
Slide 14: NII: Resilient NII underpinned by volumes and deposit hedge
Investor Presentation – Q12025 NII: Resilient NII underpinned by volumes and deposit hedge, which mitigate rate impact on deposit margins and lower yield on equity Highlights NII Q125 vs Q124 (DKKm) Deposit margin development** (%) PC NO 3.0 -1% NII stable when adjusting for day effect and 2.68 107
Slide 15: Fee income: Solid fee income trajectory up 8% Y/Y
Investor Presentation – Q12025 Fee income: Solid fee income trajectory up 8% Y/Y; Q/Q trajectory impacted by seasonality from lower investment fees and capital markets activity Highlights Net fee income (DKK m) Everyday banking fees (e.g., transfers, accounts) +8% Strong customer demand for everyday
Slide 16: Trading income: Strong trading income Q/Q
Investor Presentation – Q12025 Trading income: Strong trading income Q/Q from increase in customer activity in volatile market conditions Highlights Net trading income (DKK m) LC&I +15% Y/Y: Higher customer activity offset by 882 adjustments of fair value of the derivatives portfolio (xVA) 769 40 15
Slide 17: Expenses: Cost trajectory in line with full-year 2025 guidance
Investor Presentation – Q12025 Expenses: Cost trajectory in line with full-year 2025 guidance Highlights Expenses (DKK m) -1% Costs down 1% Y/Y as inflation, higher 62 -48 performance-based compensation and 64 -71 digitization investments were more than offset by 6,337 lower resolution fund fees and
Slide 18: Financial outlook for 2025 affirmed
Investor Presentation – Q12025 Financial outlook for 2025 affirmed Total income is expected to be slightly lower in 2025 than in 2024, driven by lower NII from expected lower market rates. Core banking income will continue to benefit from strong fee income and our continued Income efforts to drive c
Slide 19: Business & Product Units
Business & Product Units Danske Bank 19
Slide 20: Personal Customers: Stable performance
Investor Presentation – Q12025 Personal Customers: Stable performance as deposit growth and rise in fee income from strong customer activity partially offsets pressure from rates Highlights* Financial performance KPIs Y/Y total income decreased 6%, in Total income PC NO ROAC (%) Cost/income (%) part
Slide 21: Business Customers: Solid growth in lending volumes
Investor Presentation – Q12025 Business Customers: Solid growth in lending volumes and expanding customer base underpin increase across core income lines Highlights Financial performance KPIs Total income up 1% Y/Y and 7% Q/Q, Total income ROAC (%) Cost/income (%) with growth across core income (DKK
Slide 22: Large Corporates & Institutions: Strong financial performance
Investor Presentation – Q12025 Large Corporates & Institutions: Strong financial performance from continued volume growth and solid customer activity Highlights Financial performance KPIs Strong performance with total Total income ROAC (%) Cost/income (%) income up +13% Y/Y, supported by (DKK m) 202
Slide 23: Business units: Continued loan growth in Northern Ireland
Investor Presentation – Q12025 Business units: Continued loan growth in Northern Ireland, with financial result mitigating insurance result at Danica Residential mortgage lending volumes continue to grow, reflecting an increased market Profit before imp. (DKK m) Lending (index) share of new business
Slide 24: Realkredit Danmark portfolio overview
Investor Presentation – Q12025 Realkredit Danmark portfolio overview: Continued strong credit quality Highlights Retail loans, Realkredit Danmark, Q125 (%) ( ) = Q424 Portfolio facts, Realkredit Danmark, Q125 Fixed rate (10 yrs-30 yrs) Interest-only Approx. 287,000 loans (residential and commercial)
Slide 25: Credit quality & Impairments
Credit quality & Impairments Danske Bank 25
Slide 26: Asset quality: Strong credit quality underpin very low impairments
Investor Presentation – Q12025 Asset quality: Strong credit quality underpin very low single-name impairments; conservative macro scenarios and prudent PMA buffer remain in place Highlights Impairment charges by category (DKK bn) Credit quality deterioration PMAs Macro models Strong credit quality a
Slide 27: IFRS9 macro scenarios: Q1 25 scenarios
Investor Presentation – Q12025 IFRS9 macro scenarios: Weightings unchanged as severe downturn prudently reflects a prolonged recession, incl. ~35-40% correction in property prices Base (60%) Upside (20%) Downside (20%) Denmark 2025 2026 2027 2028 2025 2026 2027 2028 2025 2026 2027 2028 GDP 3.9 2.9 2
Slide 28: Strong regional footprint and diversified balance sheet
Investor Presentation – Q12025 Strong regional footprint and diversified balance sheet Lending by segment1 Q1 25 (%) Credit exposure by industry Q1 25 (%, rounded) Personal customers 30 4% 3% Commercial property 12 Northern Ireland LC&I Other Public institutions 10 of which residential (6%) 25% Priv
Slide 29: Overall strong credit quality in portfolios exposed to macro cyclicality
Investor Presentation – Q12025 Overall strong credit quality in portfolios exposed to macro cyclicality CRE: Well diversified & prudently managed portfolio Agriculture: Well-provisioned agriculture book Housing: Low leverage, strong household finances DKK 310 bn in credit exposure and ECL ~1% DKK 60
Slide 30: Commercial property: Prudently managed underwriting standards
Investor Presentation – Q12025 Commercial property: Prudently managed and cash-flow based underwriting standards; sound credit quality & adequate buffers in place to mitigate tail risks Highlights Lending to CRE segment by major peer banks (index)* CRE share of total portfolio by major peer banks* D
Slide 31: Fossil fuels (coal, oil and gas) exposure
Investor Presentation – Q12025 Fossil fuels (coal, oil and gas) exposure Key points Q1 2025 ▪ Exposure towards exploration and production (E&P) of oil and gas is down by 76% compared to end 2020. This is aligned with the Group’s 2030 climate target of reducing financed emissions by 50% for the Group
Slide 32: Credit quality: Remains strong
Investor Presentation – Q12025 Credit quality: Remains strong Stage 2 and 3 as % of net exposure Allowance account by business unit (DKK bn) 3.0 12 Stage 3 net exposure (% of Total, rhs) PC BC LC&I N.I. Other (Non-core) 11 2.5 Stage 2 net exposure (% of Total, lhs) 10 19.7 19.9 20.1 20.3 20.5 20.2 2
Slide 33: Capital
Capital Danske Bank 33
Slide 34: Capital: Strong capital base with CET1 ratio of 18.4%
Investor Presentation – Q12025 Capital: Strong capital base with CET1 ratio of 18.4% Capital ratios (%) Current capital buffer structure (%) Tier 2 AT1 Pillar II component (total 3.1%) CET1 Systemic risk buffer 23.1 22.9 Countercyclical capital buffer 22.4 2.5 2.8 Capital conservation buffer 14.6 3.
Slide 35: Strong CET1 capital generation and build-up of reserves
Investor Presentation – Q12025 Strong CET1 capital generation and build-up of reserves Highlights Common Equity Tier 1, 2010 – 2025 (DKK bn) Strong annual capital generation of +250bp (before dividend accrual) +63 bn Regulatory impact from EBA guidelines and 152 149 155 144 145 148 Basel IV accounte
Slide 36: Fully compliant with MREL and subordination requirement
Investor Presentation – Q12025 Fully compliant with MREL and subordination requirement; expect to cover MREL need with both preferred and non-preferred senior MREL & subordination requirement* and eligible funds Q125 DKK bn (% of Group REA) Comments The Group has to meet a MREL +46 requirement and a
Slide 37: Funding & Liquidity
Funding & Liquidity Danske Bank 37
Slide 38: Funding structure and sources: Danish mortgage system fully pass-through
Investor Presentation – Q12025 Funding structure and sources: Danish mortgage system is fully pass-through Loan portfolio and long-term funding Q125 (DKK bn) Funding sources* (%) 2,201 Q424 64% 62% Senior & 155 Q125 NPS bonds 1,709 1,095 Deposits Bank loans 651 13% 11% 10% 9% 11% 10% 8% 8% Bank mort
Slide 39: Funding programmes and currencies
Investor Presentation – Q12025 Funding programmes and currencies Covered bonds by currency Q125 Largest funding programmes Q125 57% Utilisation SEK EMTN Programme 46% Limit – EUR 35bn Total Global Covered Bond 40% DKK 137 bn Limit – EUR 30bn 42% EUR ECP Programme 1% 32% CHF Limit – EUR 13bn Senior d
Slide 40: Funding plan
Investor Presentation – Q12025 Funding plan Changes in funding* 2025 (DKK bn and bp) Long-term funding excl. RD (DKK bn)** Cov. bonds Senior Non-Preferred Senior Completed (Q1-25)*** Funding plan 84bp 95 6bp 139bp 79 60-80 26 154bp 78 23 75 17 36bp 94bp 102bp 76bp 10 6 6 5 1 61 Redemptions 2025: Red
Slide 41: Danske Bank covered bond universe
Investor Presentation – Q12025 Danske Bank covered bond universe – A transparent pool structure, with EUR issuance by Danske Mortgage Bank & Danske Bank A/S “D-pool” and “C-pool” Danske Bank A/S C-pool1 S&P AAA Scope AAA Residential mortgages Denmark, D-pool (DKK 37bn) and I-pool (DKK 14bn) Sweden,
Slide 42: ESG, Sustainability, Financial Crime Prevention
ESG, Sustainability, Financial Crime Prevention Danske Bank 42
Slide 43: Sustainability is an integrated element of our Forward '28 strategy
Investor Presentation – Q12025 Sustainability is an integrated element of our Forward ’28 strategy Our starting point What we will do Large Corporates & Institutions Personal Customers Sustainable finance advisory services, Housing, investments, pensions, Advisory transition finance and project fina
Slide 44: Targets and ambitions covering our three sustainability agendas
Investor Presentation – Q12025 We have set targets and ambitions covering each of our three sustainability agendas Climate change Nature & biodiversity Human rights & social impact We reduce emissions across our value chain We engage with high-impact sector companies We continuously develop our huma
Slide 45: Our Climate Action Plan is aligned with the Paris Agreement
The disclaimer for the Climate Progress Report 2024 applies to all information shown on this slide Investor Presentation – Q12025 Our Climate Action Plan is aligned with the Paris Agreement More than 99% of our carbon footprint relates to financed emissions from our lending and investment activities
Slide 46: Our Climate Progress Report shows positive traction across targets
The disclaimer for the Climate Progress Report 2024 applies to all information shown on this slide Investor Presentation – Q12025 Our Climate Progress Report shows positive traction across targets, though some targets do not follow linear trajectories Below or within 5% above linear trajectory 5–10%
Slide 47: Continuing our work on nature & biodiversity
Investor Presentation – Q12025 We are continuing our work on nature & biodiversity, building on 2024 results Target execution Insights and communication Lending engagement targets reached and asset management target on track Two publications launched Business Customers Large Corporations & Instituti
Slide 48: Deep dive – Overview of ESG integration in lending operations
Investor Presentation – Q12025 Deep dive – Overview of ESG integration in Danske Bank’s lending operations 1. Position statements 2. Single-name ESG analysis 3. Portfolio-level ESG analysis Our position statements are a key tool for ESG analysis is conducted for all large corporate Carbon disclosure
Slide 49: Testing and strengthening the Financial Crime Programme
Investor Presentation – Q12025 Testing and continuing to strengthen the Financial Crime Programme In 2020, the Bank launched the Financial Crime Plan (FC Plan), a comprehensive transformation program, and successfully met its ambitious Maintaining a sustainable Financial Crime control framework targ
Slide 50: The Financial Crime Framework beyond completion of the FC Plan
Investor Presentation – Q12025 The Financial Crime Framework beyond completion of the FC Plan With the completion of the FC Plan, the Bank has in place a Financial Crime framework which meets the regulatory requirements applicable to the Bank and is reasonably designed to manage the Bank’s inherent
Slide 51: Regulatory Engagements
Investor Presentation – Q12025 Regulatory Engagements • We engage in ongoing dialogue with our regulators through regular meetings with the Financial Supervisory Authorities (“FSAs”) and the AML Ongoing Supervisory College to ensure aligned expectations and transparency between our regulators and th
Slide 52: The Resolutions with the Danish and U.S. Authorities
Investor Presentation – Q12025 The Resolutions with the Danish and U.S. Authorities In December 2022, Danske Bank reached the final resolutions with the U.S. Department of Justice (DOJ), the U.S. Securities and Exchange Commission (SEC) and the Danish Special Crime Unit (SCU) following the investiga
Slide 53: Credit & ESG Ratings
Credit & ESG Ratings Danske Bank 53
Slide 54: Danske Bank's credit ratings – No changes in Q1 2025
Investor Presentation – Q12025 Danske Bank’s credit ratings – No changes in Q1 2025 Long-term instrument ratings Rating summary Fitch Moody’s Nordic Credit Rating S&P Scope There were no rating changes in Q1 2025 AAA Aaa AAA AAA AAA All credit ratings agencies have stable AA+ Aa1 AA+ AA+ AA+ outlook
Slide 55: Credit ratings – No changes by Fitch or Moody's
Investor Presentation – Q12025 Danske Bank’s credit ratings – No changes by Fitch or Moody’s in Q1 2025 Rating methodology Danske Bank’s rating Operating Business Risk Asset Earnings & Capitalisation & Funding & Viability Government Issuer + + + + + + = + = environment Profile Profile Quality Profit
Slide 56: Credit ratings – No changes by S&P Global or Scope
Investor Presentation – Q12025 Danske Bank’s credit ratings – No changes by S&P Global or Scope in Q1 2025 Rating methodology Danske Bank’s rating Extraordinary Anchor Potential CRA** + 1 + 2 + 3 + 4 = = SACP* + external + ALAC*** = Issuer rating SACP* adjustment support A+ bbb+ +1 +1 0 0 0 a 0 +1 (
Slide 57: Danske Bank's ESG ratings – No changes in Q1 2025
Investor Presentation – Q12025 Danske Bank’s ESG ratings – No changes in Q1 2025 We have chosen to focus on four ESG rating providers based on their importance to our investors ESG rating agency Q1-2025 End-2024 End-2023 End-2022 End-2021 Range CDP1 B 2% of the 22,400 climate scored B B B B A to D (
Slide 58: Tax & Material one-offs
Tax & Material one-offs Danske Bank 58
Slide 59: Tax
Investor Presentation – Q12025 Tax Actual and adjusted tax rates (DKK m) Tax drivers, Q1 2025 The actual tax rate of 25.4% (excluding prior- Line Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 year's adjustments) is lower than the Danish rate of 26% - due to the differences in statutory tax 1 Profit before
Slide 60: Material extraordinary items, 2023 – 2025
Investor Presentation – Q12025 Material extraordinary items, 2023 – 2025 Quarter One-off items Effect (DKK m) P&L line affected Transaction costs and prudent valuation related to Personal Customers Norway -693 Other income Gain from sale of shares taken over in connection with a loan 327 Trading Q22
Slide 61: Contacts
Investor Presentation – Q12025 Contacts Investor Relations Group Treasury and Funding Claus Ingar Jensen Mobile +45 25 42 43 70 Bent Callisen Mobile: +45 30 10 23 05 Head of IR clauj@danskebank.dk Head of Group Funding call@danskebank.dk Nicolai Brun Tvernø Mobile +45 31 33 35 47 Thomas Halkjær Jørg
Slide 62: Disclaimer for Danske Bank's Climate Progress Report 2024
Investor Presentation – Q12025 Disclaimer for Danske Bank’s Climate Progress Report 2024 Danske Bank’s Climate Progress Report 2024 has been prepared by Danske Bank A/S (“Danske Bank”). Danske Bank is under supervision by the Danish Financial Supervisory Authority (Finanstilsynet). The publication i
Slide 63: Disclaimer
Investor Presentation – Q12025 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,