Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — FY2006 Earnings Presentation
24 slides from Danske Bank A/S's earnings presentation, Jan 31, 2007
Slide 1: Press conference Annual Report 2006
Copenhagen, 31 January 2007 Press conference Annual Report 2006
Slide 2: 2006 in brief
2006 IN BRIEF 2006 in brief Highest earnings in the Groups history Net profit after tax DKr bn 14.0 Ç7% Healthy economy Growth in banking activities 12.0 13.5 higher than expected 12.7 Big demand for loans & investment products 10.0 2005 2006 2
Slide 3: Strong growth on all our markets
2006 IN BRIEF Strong growth on all our markets Good foundation for business growth in 2007 GDP growth 2007E % 8 4 Eurozone, avg. 0 Baltics IE NO FI ES SE UK DK NL CH FR DE IT Source: Danske Research. 3
Slide 4: Northern Bank and National Irish Bank
2006 IN BRIEF Northern Bank and National Irish Bank - Positive development in 2006 Lending Ç 12% Deposits Ç 51% Packages 31.500 eBanking Ç 132% Lending Ç 51% Deposits È 1% Packages 9.600 eBanking Ç115% 4
Slide 5: Sampo Bank
2006 IN BRIEF Sampo Bank Integration process has begun Integration expenses DKr m 1,600 300 To be booked in 2009 800 775 To be booked in 2008 475 To be booked in 2007 0 The four steps of the IT conversion Phase I Phase II Phase III Phase IV Easter Analysis Construction Test and test conversion Tra
Slide 6: Financial results for 2006
2006 IN BRIEF Financial results for 2006 Net profit improved by 7% DKr m 2005 2006 Index Income 34,708 37,486 108 Expenses 18,198 19,485 107 Profit bef. credit loss exp. 16,510 18,001 109 Credit loss expenses -1,096 -496 - Profit before tax 17,606 18,497 105 Tax 4,921 4,952 101 Net profit for the
Slide 7: Merger of Danske Bank and BG Bank (1)
BUSINESS DEVELOPMENTS Merger of Danske Bank and BG Bank (1) 7
Slide 8: Merger of Danske Bank and BG Bank (2)
BUSINESS DEVELOPMENTS Merger of Danske Bank and BG Bank (2) Customers Prices Produkter IT 8
Slide 9: Mergers of branches in close proximity
BUSINESS DEVELOPMENTS Mergers of branches in close proximity 9
Slide 10: The new Danske Bank DK
BUSINESS DEVELOPMENTS The new Danske Bank DK - Organised in 9 regions North Jutland * 431 branches 2.4m customers 1,000 ATMs East Jutland 24/7 service, Central Jutland 365 days a year North Zealand Copenhagen Greater Copenhagen South Jutland Funen South Zealand* 10
Slide 11: Online savings advice and fee overview
BUSINESS DEVELOPMENTS Online savings advice and fee overview - Increased transparency In Danske Netbank and on www.danskebank.dk. The English fee site will be updated in mid-February . 11
Slide 12: Corporate Social Responsibility
BUSINESS DEVELOPMENTS Corporate Social Responsibility Publication of the Groups first CSR report 12
Slide 13: Lending growth
FINANCIAL ACCOUNTS Lending growth - Double-digit growth rates in all banking divisions Lending growth 2006/2005 % 60 Retail Corporate Total 40 20 0 DB BG RD NO SESweden NB NIB 13
Slide 14: Banking Activities Danske Bank
FINANCIAL ACCOUNTS Banking Activities Danske Bank - High activity, but tough competition puts pressure on lending margins Lending ↑ 21% Net interest income ↑ 13% Income ↑ 10% Pre-tax profit Unchanged Sweden 14
Slide 15: Banking Activities BG Bank
FINANCIAL ACCOUNTS Banking Activities BG Bank - Solid growth, but price pressure on lending is evident Lending ↑ 18% Net interest income ↑ 11% Income ↑ 8% Pre-tax profit ↑ 12% Sweden 15
Slide 16: Banking Activities Sweden
FINANCIAL ACCOUNTS Banking Activities Sweden - Strong growth continues; named Corporate Bank of the Year Sweden Lending ↑ 21% Net interest income ↑ 23% Income ↑ 25% Pre-tax profit ↑ 25% Sweden 16
Slide 17: Banking Activities Norway
FINANCIAL ACCOUNTS Banking Activities Norway - Rising business volume and outstanding earnings growth Lending ↑ 21% Net interest income ↑ 22% Income ↑ 31% Pre-tax profit ↑ 53% Sweden 17
Slide 18: Banking Activities Northern Ireland
FINANCIAL ACCOUNTS Banking Activities Northern Ireland - Solid growth in lending and earnings better than expected Lending ↑ 12% Net interest income DKr 1.7bn Income DKr 2.3bn Pre-tax profit DKr -104m Sweden 18
Slide 19: Banking Activities Ireland
FINANCIAL ACCOUNTS Banking Activities Ireland - Strong growth and earnings gains in H2 2006 Gross Lending ↑ 51% Net interest income DKr 0.9bn Income DKr 1.1bn Pre-tax profit DKr 26m Sweden 19
Slide 20: Realkredit Danmark
FINANCIAL ACCOUNTS Realkredit Danmark - Robust earnings despite sharp drop in refinancing activity Nominal lending ↑ 8% Gross lending ↓ 35% Net interest income ↑ 6% Income ↓ 3% Pre-tax profit ↓ 2% Sweden 20
Slide 21: Danske Markets
FINANCIAL ACCOUNTS Danske Markets - High earnings maintained Income ↑ 1% Trading activities ↑ 14% Investment portfolio ↓ 27% Pre-tax profit ↓ 2% Sweden 21
Slide 22: Danica Pension
FINANCIAL ACCOUNTS Danica Pension - Growth in premiums and improved expense ratio Gross premiums ↑ 8% Return on investments 2 .9% Net income ↓ 18% Expense ratio 6.7% Sweden 22
Slide 23: Outlook for 2007
OUTLOOK FOR 2007 Outlook for 2007 - Integration of Sampo Bank; business volume to remain high Assumptions Expectations ! Healthy economic growth in 92007 will be another satisfactory year primary markets continues 9 Rising net interest income and fee ! Lending volume remains high income ! Two intere
Slide 24: Q&A session
Q&A SESSION Q&A session Please note that the Q&A session will not be webcasted www.danskebank.com 24