Danske Bank A/S · OMXCOP:DANSKE

Danske Bank A/S — Q2 2008 Earnings Presentation

45 slides from Danske Bank A/S's earnings presentation, Aug 7, 2008

  1. Slide 1: Fact Book Q2 2008

    Fact Book Q2 2008 Supplementary Information for Investors and Analysts Unaudited Updated: August 7, 2008

  2. Slide 2: Table of contents

    Danske Bank Fact Book Q2 2008 Table of contents 1. Group facts 3. Business segments and key statistics 1.1 Financial goals 5 3.1 Banking Activities 22 1.2 Dividends and share buybacks 5 3.1.1 Banking Activities Denmark 22 1.3 Share data 6 3.1.1.1 Breakdown of loans at Realkredit Danmark 23 1.4 Ratin

  3. Slide 3: Fact Book Q2 2008

    Danske Bank Fact Book Q2 2008 Fact Book Q2 2008 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 For further information, please contact: Financial calendar Date Ev

  4. Slide 4: Group facts

    Group facts Danske

  5. Slide 5: 1.1 Financial goals; 1.2 Dividends and share buybacks

    Danske Bank Fact Book Q2 2008 1.1 Financial goals The Group bases its capital management on a set of overall capital targets. The table below shows the targets as well as the realised ratios. CAPITAL TARGETS (%) June 30, 2008 March 31, 2008 Target Core (tier 1) capital ratio 10.0 9.5 Min. 7.5 Solven

  6. Slide 6: 1.3 Share data; 1.4 Ratings

    Danske Bank Fact Book Q2 2008 1.3 Share data The Danske Bank Group is the largest financial services organisation in Denmark. The average daily trading volume of Danske Bank shares in the first half of 2008 was DKr 465m. With a total trading volume of DKr 56.8bn, the Danske Bank share was the second

  7. Slide 7: 1.5 Changes in accounting principles and presentation

    Danske Bank Fact Book Q2 2008 1.5 Changes in accounting principles and presentation Changes in accounting principles The Group has not changed its significant accounting policies from those presented in the Fact Book Q1 2008. Change in financial highlights The Other Areas business area previously co

  8. Slide 8: Financial statistics

    Financial statistics Danske

  9. Slide 9: 2.1 Income statement – Danske Bank Group

    Danske Bank Fact Book Q2 2008 2.1 Income statement – Danske Bank Group Year to date Full year (DKr m) Q208 Q108 Q407 Q307 Q207 Q107 2008 2007 Net interest income 6,665 6,236 6,320 6,267 6,074 5,730 12,901 24,391 Hereof amortisation of loans and deposits* 17 17 46 46 46 31 34 169 Financing 430 376 44

  10. Slide 10: 2.1.1 Breakdown of income

    Danske Bank Fact Book Q2 2008 2.1.1. Breakdown of income Country distribution of net interest income Money market rates NET INTEREST INCOME DISTRIBUTION, Q2 2007 % 8,00 Other 2.1% Baltics 2.3% 7,00 Ireland 4.4% 6,00 Northern Ireland 7.3% 5,00 Finland 12.9% 4,00 Denmark 56.9% 3,00 Norway 6.6% 2,00 Sw

  11. Slide 11: Net interest income, Banking Activities

    Danske Bank Fact Book Q2 2008 Interest income margins, Banking Activities Denmark, Sweden, Norway, Northern Ireland and Ireland DEPOSIT SPREAD LENDING SPREAD % % 2,50 2,50 2,00 2,00 1,50 1,50 1,00 1,00 0,50 0,50 0,00 0,00 Q107 Q207 Q307 Q407 Q108 Q208 Q107 Q207 Q307 Q407 Q108 Q208 Deposit spread (2)

  12. Slide 12: 2.1.2 Breakdown of expenses

    Danske Bank Fact Book Q2 2008 2.1.2 Breakdown of expenses Operating expenses Year to date Full year (DKr m) Q208 Q108 Q407 Q307 Q207 Q107 2008 2007 Operating expenses 6,610 6,323 6,574 5,966 6,663 5,867 12,933 25,070 Amortisation, intangibles Banking Activities Finland 118 117 138 179 135 128 235 58

  13. Slide 13: Full-time employees by business area; exchange rates

    Danske Bank Fact Book Q2 2008 Full-time employees broken down by business area Year to date Full year (End of period) Q208 Q108 Q407 Q307 Q207 Q107 2008 2007 Banking Activities Denmark 6,458 6,440 6,538 6,685 6,654 6,761 6,458 6,538 Banking Activities Finland* 2,353 2,412 2,308 2,283 2,294 2,299 2,3

  14. Slide 14: 2.2 Balance sheet – Danske Bank Group

    Danske Bank Fact Book Q2 2008 2. 2 Balance sheet – Danske Bank Group Year to date Full year (DKr m) Q208 Q108 Q407 Q307 Q207 Q107 2008 2007 Cash in hand and demand deposits with central banks 15,473 35,807 13,861 13,524 18,934 17,594 15,473 13,861 Due from credit institutions and central banks 378,8

  15. Slide 15: 2.2.1 Breakdown of balance sheet

    Danske Bank Fact Book Q2 2008 2.2.1 Breakdown of balance sheet Lending portfolio broken down by segment Year to date Full year Volume (DKr bn) Segment Q208 Q108 Q407 Q307 Q207 Q107 2008 2007 Banking Activities Denmark Retail 522.9 534.0 535.7 521.9 511.3 511.8 522.9 535.7 Hereof bank mortgage secure

  16. Slide 16: Deposit portfolio broken down by segment

    Danske Bank Fact Book Q2 2008 Deposit portfolio broken down by segment Year to date Full year Volume (DKr bn) Segment Q208 Q108 Q407 Q307 Q207 Q107 2008 2007 Banking Activities Denmark Retail 166.0 163.7 160.8 158.1 159.1 151.7 166.0 160.8 Corporate 141.0 153.0 138.4 141.9 143.9 136.1 141.0 138.4 Ba

  17. Slide 17: Lending and deposit portfolios by geographical area

    Danske Bank Fact Book Q2 2008 Lending and deposit portfolios in Banking Activities broken down by geographical area BANK LENDING, RETAIL BANK LENDING, CORPORATE DKr bn DKr bn 600 QoQ: -2.1% 600 YoY: 2.3% QoQ: 4.1% 500 500 YoY: 13.0% QoQ: 6.4% 400 YoY: 23.1% 400 QoQ: 2.5% 300 YoY: 11.2% 300 200 200 1

  18. Slide 18: Impairment charges and non-performing loans

    Danske Bank Fact Book Q2 2008 Impairment charges and non-performing loans Year to date Full year (Danske Bank Group) Q208 Q108 Q407 Q307 Q207 Q107 2008 2007 Accumulated impairment charges (DKr bn, end period)* 5.64 5.15 4.90 4.64 4.55 4.53 5.64 4.90 Non-performing loans (DKr bn, end period)** 10.55

  19. Slide 19: 2.3 Key ratios

    Danske Bank Fact Book Q2 2008 Expected loss (Basis points of avg. loans and guarantees) 2007 2006 2005 2004 2003 2002 Banking Activities Denmark 28 32 42 47 64 65 Banking Activities Norway 9 9 14 13 22 44 Banking Activities Sweden 9 13 12 9 27 19 Banking Activities Northern Ireland 27 31 16 - - - Ba

  20. Slide 20: Cost/income ratio, EPS, return on equity, total assets

    Danske Bank Fact Book Q2 2008 COST/INCOME RATIO EARNINGS PER SHARE % DKr 70,0 6 60,0 5 50,0 4 40,0 3 30,0 2 20,0 10,0 1 0,0 0 Q107 Q207 Q307 Q407 Q108 Q208 Q107 Q207 Q307 Q407 Q108 Q208 RETURN ON EQUITY (AFTER TAX) P.A. TOTAL ASSETS % DKr bn 16 3500 14 3000 12 2500 10 2000 8 1500 6 1000 4 2 500 0 0

  21. Slide 21: Business segments and key statistics

    Business segments and key statistics

  22. Slide 22: 3.1.1 Financial performance, Banking Activities Denmark

    Danske Bank Fact Book Q2 2008 3.1.1 Financial performance, Banking Activities Denmark Banking Activities Denmark encompasses the banking activities of Danske Bank in Denmark and Realkredit Danmark. Danske Bank caters to all types of retail and corporate customers. Danske Bank’s finance centres serve

  23. Slide 23: 3.1.1.1 Breakdown of loans at Realkredit Danmark

    Danske Bank Fact Book Q2 2008 3.1.1.1 Breakdown of loans at Realkredit Danmark at June 30, 2008 DISTRIBUTION OF LOAN PORTFOLIO BY OUTSTANDING BOND DEBT DISTRIBUTION OF LOAN PORTFOLIO BY LOAN-TO-VALUE RATIOS 100 100 80 Outstanding debt 80 per property: Share of portfolio in % Share of portfolio in %

  24. Slide 24: 3.1.2 Financial performance, Banking Activities Finland

    Danske Bank Fact Book Q2 2008 3.1.2 Financial performance, Banking Activities Finland Banking Activities Finland encompasses the banking activities of Sampo Bank in Finland and Danske Bank’s Helsinki Branch. Sampo Bank, which is the third-largest bank in Finland, caters to retail customers, small an

  25. Slide 25: 3.1.3 Financial performance, Banking Activities Sweden

    Danske Bank Fact Book Q2 2008 3.1.3 Financial performance, Banking Activities 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. Real-estate agency business is carried ou

  26. Slide 26: 3.1.4 Financial performance, Banking Activities Norway

    Danske Bank Fact Book Q2 2008 3.1.4 Financial performance, Banking Activities Norway Banking Activities Norway encompasses the banking activities of Fokus Bank in Norway. Fokus Bank serves all types of retail and corporate customers. Banking Activities Norway has five regions with 55 branches, five

  27. Slide 27: 3.1.5 Financial performance, Banking Activities Northern Ireland

    Danske Bank Fact Book Q2 2008 3.1.5 Financial performance, Banking Activities Northern Ireland Banking Activities Northern Ireland encompasses the banking activities of Northern Bank, which serves both retail and corporate customers. Banking Activities Northern Ireland has four regions with 92 branc

  28. Slide 28: 3.1.6 Financial performance, Banking Activities Ireland

    Danske Bank Fact Book Q2 2008 3.1.6 Financial performance, Banking Activities Ireland Banking Activities Ireland encompasses the banking activities of National Irish Bank, which caters primarily to retail and corporate customers. Banking Activities Ireland has four regions with 66 branches and 649 e

  29. Slide 29: 3.1.7 Financial performance, Banking Activities Baltics

    Danske Bank Fact Book Q2 2008 3.1.7 Financial performance, Banking Activities Baltics Banking Activities Baltics encompasses the Group's banking activities in Estonia, Latvia and Lithuania and serves all types of retail and corporate customers. Banking Activities Baltics has 46 branches and 1,298 em

  30. Slide 30: 3.1.7 Banking Activities Baltics, continued

    Danske Bank Fact Book Q2 2008 3.1.7 Financial performance, Banking Activities Baltics, continued Year to date Full year (DKr m) Q208 Q108 Q407 Q307 Q207 Q107 2008 2007 ESTONIA Market share (lending) (%) (end of period)* 11.3 11.2 11.1 10.7 10.3 9.8 11.3 11.1 Market share (deposits) (%) (end of perio

  31. Slide 31: 3.1.8 Financial performance, Other Banking Activities

    Danske Bank Fact Book Q2 2008 3.1.8 Financial performance, Other Banking Activities Other Banking Activities comprises the activities of Nordania Leasing and the Group’s banking activities in Germany and Poland. Other Banking Activities has 318 employees. Year to date Full year (DKr m) Q208 Q108 Q40

  32. Slide 32: 3.2 Financial performance, Danske Markets

    Danske Bank Fact Book Q2 2008 3.2 Financial performance, Danske Markets Danske Markets is responsible for the Group’s activities in the financial markets. Trading activities include trading in fixed-income products, foreign exchange, equities and interest-bearing securities; providing the largest co

  33. Slide 33: 3.3 Financial performance, Danske Capital

    Danske Bank Fact Book Q2 2008 3.3 Financial performance, Danske Capital Danske Capital develops and sells asset management products and services that are offered through the Group’s banking activities and directly to businesses, institutional clients and external distributors. Danske Capital support

  34. Slide 34: 3.3 Financial performance, Danske Capital, continued

    Danske Bank Fact Book Q2 2008 3.3 Financial performance, Danske Capital, continued Year to date Full year (DKr m) Q208 Q108 Q407 Q307 Q207 Q107 2008 2007 ASSET MANAGEMENT Net inflow of AuM (DKr bn) -2 0 5 -1 2 -1 -2 5 Total AuM (DKr bn) (end of period) 572 581 623 639 640 639 572 623 Nordic retail m

  35. Slide 35: 3.4 Financial performance, Danica Pension

    Danske Bank Fact Book Q2 2008 3.4 Financial performance, Danica Pension Danica Pension encompasses the Danske Bank Group’s activities in the life insurance and pensions market. Danica Pension targets both personal and corporate customers. Products are marketed through a range of distribution channel

  36. Slide 36: 3.5 Financial performance, Other areas

    Danske Bank Fact Book Q2 2008 3.5 Financial performance, Other areas Other areas encompasses expenses for support functions and the Group’s real property activities. Moreover, the area covers the elimination of returns on own shares. Year to date Full year (DKr m) Q208 Q108 Q407 Q307 Q207 Q107 2008

  37. Slide 37: Macroeconomics

    Macroeconomics Danske

  38. Slide 38: 4.1 Tables and charts

    Danske Bank Fact Book Q2 2008 4.1 Tables and charts DENMARK (%) 2009E 2008E 2007 2006 2005 2004 2003 2002 2001 GDP growth 0.8 1.0 1.7 3.9 3.1 2.1 0.4 0.5 0.7 Export 3.1 3.4 1.9 9.0 7.3 2.2 -1.0 4.1 3.1 Private consumption 0.8 1.7 2.3 3.8 4.2 4.7 1.0 1.5 0.1 Public consumption 1.7 1.6 1.6 2.0 1.1 1.6

  39. Slide 39: Euroland and Ireland macroeconomic tables

    Danske Bank Fact Book Q2 2008 EUROLAND (%) 2009E 2008E 2007 2006 2005 2004 2003 2002 2001 GDP growth 1.2 1.4 2.6 2.8 1.4 1.8 0.5 0.8 1.6 Export 3.0 2.9 6.0 8.5 3.7 5.6 0.3 1.8 3.3 Private consumption 0.9 0.7 1.6 2.0 1.3 1.2 1.0 0.6 1.9 Public consumption 1.5 1.2 2.3 2.0 1.1 1.6 1.7 3.1 2.4 Inflation

  40. Slide 40: Finland and Estonia macroeconomic tables

    Danske Bank Fact Book Q2 2008 FINLAND (%) 2009E 2008E 2007 2006 2005 2004 2003 2002 2001 GDP growth 2.1 2.6 4.4 5.0 2.9 3.7 1.8 1.6 2.6 Export 2.5 2.0 5.5 10.4 7.2 8.9 -1.7 2.8 2.6 Private consumption 2.3 2.7 3.7 4.3 4.0 2.9 4.7 2.2 2.7 Public consumption 1.0 0.5 0.8 1.0 1.5 1.8 1.6 2.6 1.3 Inflatio

  41. Slide 41: Lithuania macroeconomic table

    Danske Bank Fact Book Q2 2008 LITHUANIA (%) 2009E 2008E 2007 2006 2005 2004 2003 2002 2001 GDP growth 2.5 4.4 8.8 7.6 7.6 7.1 10.5 6.8 6.4 Export 4.5 6.1 7.0 15.4 20.1 8.9 7.3 13.1 18.4 Private consumption 1.4 5.1 11.5 13.6 7.7 8.8 10.4 5.5 6.3 Public consumption 6.5 5.2 5.0 7.3 0.2 4.4 4.8 3.6 -0.4

  42. Slide 42: House price index and unemployment rate

    Danske Bank Fact Book Q2 2008 HOUSE PRICE INDEX (DK – SEASONALLY ADJ) HOUSE PRICE INDICES, % CHANGE (1995=100) 330 Ireland 238 280 UK 215 230 180 Spain 204 130 Sweden 159 80 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 France 150 Denmark 148 HOMES FOR SALE (DK) 70.000 New Ze

  43. Slide 43: GDP growth and private consumption

    Danske Bank Fact Book Q2 2008 GDP GROWTH 14% 12% 10% 8% 6% 4% 2% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008E 2009E -2% Denmark Norway Sweden Ireland UK Euroland Finland Estonia Latvia Lithuania PRIVATE CONSUMPTION 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% 2000 2001 2002 2003 2004 2005 2006 200

  44. Slide 44: Household debt and interest payments

    Danske Bank Fact Book Q2 2008 HOUSEHOLDT DEBT AND INTEREST PAYMENTS, DENMARK HOUSEHOLDT DEBT AND INTEREST PAYMENTS, FINLAND % of disposable income % of disposable income % of disposable income % of disposable income Debt burden Interest burden Debt burden Interest burden 12 280 120 10 260 10 110 8 2

  45. Slide 45: Household net worth incl. property value

    Danske Bank Fact Book Q2 2008 HOUSEHOLD NET WORTH INCL. PROPERTY VALUE DKr bn 5,000 4,000 3,000 2,000 1,000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Denmark Source: Danske Research (www.danskebank.com/danskeresearch). Updated July 2008. 45

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