Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — FY2014 Earnings Presentation
25 slides from Danske Bank A/S's earnings presentation, Feb 3, 2015
Slide 1: Financial Results for 2014
PRESS CONFERENCE FINANCIAL RESULTS FOR 2014 Thomas F. Borgen Chief Executive Officer 3 February 2015
Slide 2: Agenda
Agenda Financial highlights 2014 Outlook for 2015 Macroeconomics The way forward 2
Slide 3: Best financial results since 2007
Best financial results since 2007 Income statement and key figures (DKK millions) 2014 2013 Index Q4 2014 Q3 2014 Index Net interest income 23,107 22,077 105 5,880 5,976 98 Net fee income 10,491 9,468 111 2,966 2,640 112 Net trading income 6,562 5,799 113 977 1,525 64 Other income 1,344 1,308 103 36
Slide 4: Strengthened topline despite weak macro
Strengthened topline despite weak macro Income (DKK millions) 2014 2013 43,866 Totale income 39,740 23,107 Net interest inc. 22,077 10,491 Net fee inc. 9,468 6,562 Net trading inc. 5,799 1,344 Other income 1,308 2,362 Insurance 1,088 4
Slide 5: Expenses reduced according to plan
Expenses reduced according to plan Expenses, 2013- 15 (DKK billions) Cost/income ratio, 2013 -14 (%) -5% -8.3%-point 59.9 51.6 23.8 22.6 2013 2014 2013 2014 5
Slide 6: Impairment charges remain low
Impairment charges remain low Loan impairment charts,* 2008-14 (DKK billions) 26 1,4 Impairments Loan loss rations *(rhs) 1,4 24 22 1,2 20 18 1,0 16 0,7 0,8 14 0,7 26 0,6 12 0,6 0,6 10 8 0,4 14 13 13 0,3 6 12 0,2 4 0,2 5 2 4 0 0,0 2008 2009 2010 2011 2012 2013 2014 * The loan loss ratio is defined a
Slide 7: Good progress winding up Non-core activities in Ireland
Good progress winding up Non-core activities in Ireland Credit exposure,* 2014 (DKK billions) -42% 53.7 42.8 31.3 2012 2013 2014 * Excluding the allowance account. 7
Slide 8: Ratings upgrades in 2014
Ratings upgrades in 2014 2013 2014 Stable outlook Negative outlook A- A Positive outlook Stable outlook Baa1 A3 Stable outlook Stable outlook A A 8
Slide 9: Danske Bank is sound and well-capitalised
Danske Bank is sound and well-capitalised Common equity tier 1 capital ratio in the EBA’s most severe stress test scenario Minimum requirement: 5.5% Danske Bank: 11.7 % 11.7% 9
Slide 10: Strong capital position makes it possible to pay a dividend and adjust the capital structure
Strong capital position makes it possible to pay a dividend and adjust the capital structure Total capital ratio* (%) Dividend and share buy-back Tier 2 Common equity tier 1 Proposal to pay a dividend of Additional tier 1 DKK 5.5 per share, or 43% of 21.4 the profit for the year 2.4 19.3 1.5 2.6
Slide 11: Personal Banking – positive developments and good earnings
Personal Banking – positive developments and good earnings Strong gains in financial results Profit before tax & goodwill (DKK millions) Stable income Reduction of expenses Continued decline in impairments 2013 2,899 +60% 2014 4,648 Focus on innovation MobilePay in Denmark and Finland – 1.9
Slide 12: Business Banking – solid developments and progress
Business Banking – solid developments and progress Growth in all primary markets Profit before tax & goodwill (DKK millions) Increase in lending in Denmark, Norway, Sweden and Finland Change from customer outflow to customer 2013 4,838 inflow in Denmark +18% 2014 5,733 More satisfied customers
Slide 13: Corporates & Institutions – a year of many changes
Corporates & Institutions – a year of many changes Rise in client-driven income Profit before tax (DKK millions) Focus on stable, diversified income Gains at Transaction Banking and Capital Markets 2013 3.374 Client-focused organisation and approach based on advisory services +23% 2014 4.135 S
Slide 14: Danske Capital – solid advance in focus areas
Danske Capital – solid advance in focus areas Focus on alternative investments Profit before tax (DKK millions) Increase in alternative investments of 23% Alternative investments now make up 7% of all assets under management 2013 1,131 +24% 2014 1,406 Strengthened international position 59% of
Slide 15: Danica Pension – strong results
Danica Pension – strong results Risk allowance and shadow account Income (DKK millions) booked to income Full risk allowance booked Transfer of DKK 611 million from shadow 2013 1,088 account +117% 2014 2,362 Increased customer focus Close collaboration between Danica Pension and Danske Bank Pr
Slide 16: Outlook for 2015
Outlook for 2015 Macro Economic growth remains fragile, with low interest rates Total income Income is expected to be around the same level as in 2014 Expenses Expenses are expected to be below DKK 22 billion Impairments Impairment charges expected to remain low Net profit Net profit above 14 DKK bi
Slide 17: Europe is improving, but still has problems
Europe is improving, but still has problems GDP growth (%) GDP growth, est. (%) China China USA Norway Sweden Sweden Norway Denmark Denmark Euro zone Euro zone Finland Source: Danske Bank’s forecast. 17
Slide 18: Historically low interest rates
Historically low interest rates Yield, %. 10 year government bond 3-month Cibor 2014 Source: Danmarks Nationalbank. 18
Slide 19: The way forward
The way forward 19
Slide 20: Digitalisation creates new opportunities
Digitalisation creates new opportunities 2,000,000 1,500,000 1,000,000 500,000 0 feb-07 feb-08 feb-09 feb-10 feb-11 feb-12 feb-13 feb-14 okt-06 jun-07 okt-07 jun-08 okt-08 jun-09 okt-09 jun-10 okt-10 jun-11 okt-11 jun-12 okt-12 jun-13 okt-13 jun-14 okt-14 ebanking Mobile Banking DK MobilePay DK (1 l
Slide 21: Continued focus on innovation and good customer experience
Continued focus on innovation and good customer experience Personal Banking Business Banking Corporates & Institutions Specialised advisory New customer packages New post-trade service for services for young people for SMEs large corporates Danske Guide in online Better advisory services f
Slide 22: Minimum 12.5% in 2018
Minimum 12.5% in 2018 ROE (%, after tax, before goodwill impairments) Key building blocks Above 12.5 Improved ratings and lower funding costs 9.5* 8.5 Gradual efficiency gains Growth in business volume 5.0 Rising income 3.6 Lower impairments/non core 2.1 Capital structure ‘11 ‘12 ‘13 ‘14
Slide 23: A strong platform as a Nordic universal bank
A strong platform as a Nordic universal bank 23
Slide 24: www.danskebank.com/ir
Please use the microphones beside your seats www.danskebank.com/ir 24
Slide 25: Disclaimer
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, or an inducement to enter into