Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — Shareholder Meeting (March 2014)
24 slides from Danske Bank A/S's shareholder meeting presentation, Mar 18, 2014
Slide 1: Board of Directors' report
Board of Directors’ report Ole Andersen Chairman of the Board of Directors 18 March 2014
Slide 2: Management changes
Management changes Thomas F. Borgen Glenn Söderholm Jim Ditmore 2013 CEO 2013 Head of Corporates & 2014 Chief Operating Officer Institutions 2012– Head of Corporates & 2013 Global Head of CIB 2013 Allstate Insurance, 2013 Institutions (Corp. & Inst. Banking) Chicago 1997 Joined Danske Bank 1998 Join
Slide 3: Economic climate of low interest rates and weak growth
Economic climate of low interest rates and weak growth Annual GDP growth (%) Central bank policy rates (%) Norway Sweden 2013 Eurozone Denmark 3,0 2014 (est.) 2,4 2.00 2,0 1.75 1,5 1,5 1,3 1.50 1.25 0,7 1.00 0.75 0.50 -0,4 0.25 0.00 -1,3 -0.25 2011 2012 2013 3
Slide 4: Highlights from Annual Report 2013
Highlights from Annual Report 2013 Net profit rose 51% from DKK 4.7 billion to DKK 7.1 billion Income Expenses Total income was DKK 40 billion, a Expenses fell 1% decline of 12% Impairment charges Return on equity Impairment charges declined 45% Return on equity was 5% 4
Slide 5: Expenses declined in 2013
Expenses declined in 2013 Trend in expenses, 2012-14 (DKK billions) -1% -5% 24,6 24,3 About 23 2012 2013 2014 (est.) 5
Slide 6: Personal Banking
Personal Banking Total income Expenses Impairment charges Profit before tax (DKK millions) (DKK millions) (DKK millions) (DKK millions) 2012 16.829 12.430 2.749 1.650 -1% -3% -30% +64% 2013 16.736 12.103 1.935 2.698 6
Slide 7: Business Banking
Business Banking Total income Expenses Impairment charges Profit before tax (DKK millions) DKK millions) DKK millions) DKK millions) 2012 12.352 5.466 3.825 3.061 -2% +2% -53% +55% 2013 12.105 5.574 1.779 4.752 7
Slide 8: Corporates & Institutions
Corporates & Institutions Total income Expenses Impairment charges Profit before tax (DKK millions) DKK millions) DKK millions) DKK millions) 2012 11.396 4.307 1.160 5.929 -26% +7% -59% -43% 2013 8.435 4.588 473 3.374 8
Slide 9: Danske Capital
Danske Capital Total income Expenses Profit before tax Assets under mgt (DKK millions) DKK millions) DKK millions) (DKK bn.) 2012 1.917 982 935 687 +13% +5% +21% +6% 2013 2.164 1.033 1.131 727 9
Slide 10: Danica Pension
Danica Pension Premiums Insurance business Profit before tax (DKK millions) (DKK millions) DKK millions) 2012 24.649 1.453 2.171 +9% +4% -50% 2013 26.808 1.511 1.088 10
Slide 11: Loan impairment charges normalised
Loan impairment charges normalised Impairment charges , 2008-14 (DKK billions and basis points) 100 bp =1% 10 Loan impairment charges (left scale) 180 Loss percentage in basis points (right scale) 9 150 8 7 120 6 5 90 4 60 3 2 30 1 11 33 23 0 0 Q2 Q2 Q2 Q2 Q2 Q2 2008 2009 2010 2011 2012 2013 Note: L
Slide 12: Winding up of Non-core Ireland proceeding as planned
Winding up of Non-core Ireland proceeding as planned Credit exposure, 2013* (DKK billions) Status, property sales, 2013 (No. properties) Q1 Q3 Q2 Q4 -23% 17,6 1,423 17,0 15,9 13,6 886 707 293 106 95 95 40 Q1 Q2 Q3 Q4 For sale Sold * Excluding the allowance account. 12
Slide 13: Strong capital base and dividend proposal
Strong capital base and dividend proposal Capital base1 (%) Tier 2 Hybrid tier 1 (incl. state hybrid) Core tier 1 21,3 21,4 Proposal for dividend payment 2,4 2,4 of DKK 2 per share, or 28% of 1,5 net profit for the year 4,4 State hybrid 2,8 14,5 14,7 2012 2013 1. CRD/Basel II. 13
Slide 14: Allocation of profit
Allocation of profit Net profit for Danske Bank Group DKK 7,115 million Adjustment to Danish rules 687 million Net profit for parent company DKK 7,802 million The Board of Directors proposes that the profit be allocated as follows: Distribution of dividend of DKK 2 per share DKK 2,017 million Transf
Slide 15: Share price
Share price Trend in Danske Bank’s share price in comparison with other European banks Danske Bank MSCI Europe Bank Index 150 140 +23% 130 120 110 100 90 80 Dec Jun Dec Mar 2012 2013 2013 2014 NB: Share price history vs MSCI Euro Bank Index (end-2012=95.65) . 15
Slide 16: Stable ratings, with a positive underlying trend
Stable ratings, with a positive underlying trend 2012 2013 Positive outlook Stable outlook A- A- Stable outlook Positive outlook Baa1 Baa1 Negative outlook Stable outlook A A 16
Slide 17: Regulations in 2013
Regulations in 2013 Agreement on deposit Rangvid Committee guarantee and crisis report released management in the EU Apr Sep Oct Dec Agreement on CRR/CRD IV in EU Political agreement on SIFI rules announced 17
Slide 18: The strategy is firm
The strategy is firm Vision “Recognised as the most trusted financial partner” Customer satisfaction Financial results Mission “Setting new standards in financial services” Advisory services Digitalisation Transparency and openness 18
Slide 19: Composition of the Board of Directors
Composition of the Board of Directors 19
Slide 20: Remuneration policy
Remuneration policy . 20
Slide 21: Focus areas for the Board of Directors in 2014
Focus areas for the Board of Directors in 2014 Improvement of Improvement of ratings ROE of 9% in 2015 customer satisfaction by at least one notch as and eventually 12% soon as possible 21
Slide 22: Outlook for 2014
Outlook for 2014 Slightly improving but fragile economic growth and continuation of low interest rates Income Expenses Total income expected to be higher Expenses reduced to about DKK 23 than in 2013 billion Impairment charges Net profit Expected to be in line with 2013 Net profit of DKK 9 billion t
Slide 23: Thank you for your attention
THANK YOU FOR YOUR ATTENTION 23
Slide 24: 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