Danske Bank A/S · OMXCOP:DANSKE

Danske Bank A/S — Barclays Global Financial Services Conference 2015

20 slides from Danske Bank A/S's conference presentation, Sep 16, 2015

  1. Slide 1: Danske closing in on peers

    Danske closing in on peers Henrik Ramlau-Hansen Chief Financial Officer 16 September 2015

  2. Slide 2: Growth in Denmark is picking up supported by very low interest rates

    Barclays Global Financial Service Conference Growth in Denmark is picking up supported by very low interest rates Real GDP, (constant prices, index 2005 = 100) Interest rates, (leading, %) Denmark Norway Denmark Sweden Norway Euro Area Sweden Finland 130 6,0 5,5 125 5,0 4,5 120 4,0 115 3,5 3,0 110 2

  3. Slide 3: Executive summary for H1 2015

    Barclays Global Financial Service Conference Executive summary for H1 2015 Net profit & ROE Net profit of DKK 9.4 bn and ROE of 12.5% Income Total income of DKK 23.2 bn – up 6% vs H1 2014 Expenses Expenses of DKK 10.8 bn – down 2% vs H1 2014 – and cost/income ratio of 46.4% Impairments Impairments o

  4. Slide 4: The essence of Danske Bank

    Barclays Global Financial Service Conference The essence of Danske Bank Vision To be recognised as the most trusted financial partner Strategic core We are a modern bank for people and businesses across the Nordics with deep financial competence and leading, innovative solutions Customer promise We

  5. Slide 5: Well on track to meet our RoE target and customer satisfaction slowly improving

    Barclays Global Financial Service Conference Well on track to meet our RoE target and customer satisfaction slowly improving RoE after tax; 2009 to 2018 (%) Customer satisfaction 12.5 >12.5 9.5 8.5* 5.0 3.6 2012 2013 2014 H1 2015 Target Target 2015 2018 End Q2 2015 * Before goodwill impairments of D

  6. Slide 6: Good progress in all business units

    Barclays Global Financial Service Conference Good progress in all business units Business Units results before tax (DKK m) H1 2015 +40% H1 2014 3.950 +58% +12% 3.199 2.813 2.619 2.346 2.022 +20% +25% 1.110 927 671 535 Personal Banking Business Banking Corporates & Danske Capital Danica Pension Insti

  7. Slide 7: Cost management important going forward

    Barclays Global Financial Service Conference Cost management important going forward Total Group expenses ex goodwill charge (DKK m) Cost/income ratio (%) -8% -13.5%-point <22 24.6 23.8 22.6 59.9 54.0 51.6 46.4 10.8 2012 2013 2014 2015E 2012 2013 2014 H1 2015 7

  8. Slide 8: Strong downward trend in impairments – net reversals in Q2 2015

    Barclays Global Financial Service Conference Strong downward trend in impairments – net reversals in Q2 2015 for the first time since the financial crisis Group impairments, 2007 to Q2 15 (DKK bn/bps) Impairments Loan loss ratio* (rhs) 10 173 180 9 160 8 140 7 120 6 99 100 5 80 4 54 60 3 56 40 2 26

  9. Slide 9: Capital: Solid capital base, CET1 ratio of 14.3%

    Barclays Global Financial Service Conference Capital: Solid capital base, CET1 ratio of 14.3% - well above minimum target of 13% Capital ratios, under Basel III/CRR (%) Tier 2 Hybrid T1 / AT1 Common Equity Tier 1 21.4 2.4 19.3 18.7 • Dividend for 2013: DKK 2 per share 2.6 2.2 4.3 1.6 2.2 • Dividend

  10. Slide 10: Capitalisation has decreased in historical perspective but increased significantly over recent years

    Barclays Global Financial Service Conference Capitalisation has decreased in historical perspective but increased significantly over the recent years Impairments as bps of total lending and equity to assets, 1871 – H1 2015 (bps/%) Impairments as bps of lending Equity to assets (rhs, %) 2,400 60 2,30

  11. Slide 11: Several rating upgrades since 2013

    Barclays Global Financial Service Conference Several rating upgrades since 2013 Ratings, Danske Bank vs. peers (Aa2/AA-/AA-) (Aa3/AA-/AA-) (Aa3/A+/A+) (Aa3/A+/A+) (Aa3/A+/-) A2, stable (Moody’s) A, stable (S&P) A, stable (Fitch) 11

  12. Slide 12: Danske Bank is closing in on peers with respect to both ROE and cost/income

    Barclays Global Financial Service Conference Danske Bank is closing in on peers with respect to both ROE and cost/income Return on equity, H1 2011 – H1 2015 (%) Cost/income ratio, H1 2011 – H1 2015 (%) Danske Bank Excl. Non-core Danske Bank Peer average Peer average 14.0 60.5 13.5 13.1 13.7 59.0 12.

  13. Slide 13: Successful MobilePay platform in Denmark

    Barclays Global Financial Service Conference Successful MobilePay platform in Denmark Proof cases Small +10.000 MobilePay merchants Business shops (Feb. 14) Large merchants (Mar. 15) Used by +2.5 m Danes Webshops (Feb. 15) +1000 webshops Used 72 m times annually (Dankort from Mar. 15) ) with MobileP

  14. Slide 14: Development in Danske Bank market cap since end-2005

    Barclays Global Financial Service Conference Development in Danske Bank market cap since end-2005 Market cap, December 2005 to June 2015 (DKK bn) +446% 200 -74% 150 100 50 0 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 05 06 06* 07 07 08 08 09 09 10 10 11* 11 12 12* 13 13 14 14 15 Sou

  15. Slide 15: Danske as a Nordic Universal Bank - results from the business review

    Barclays Global Financial Service Conference Danske as a Nordic Universal Bank - results from the business review Nordic • Reaffirming our position as a Nordic universal bank with strong Universal Bank focus on customer access to cross-border solutions and products • We want to own the challenger po

  16. Slide 16: Bridge to above 12.5% ROE in 2018

    Barclays Global Financial Service Conference Bridge to above 12.5% ROE in 2018 with unchanged macro, CET1 ratio of around 14% and capital management actions ROE development (%, after tax) ROE 2015E 9.5% Costs 0.5-1% Funding & rating 0.5-1% Volume effect 0.5-1% Income initiatives 0.5% Loan losses 0.5

  17. Slide 17: Summary

    Barclays Global Financial Service Conference Summary Business review Business review is still under way Market cap Danske Bank market cap fully recovered from the financial crisis Growth Growth potential in Norway and Sweden Customer Still challenges on customer satisfaction in Personal Banking Denm

  18. Slide 18: Q&A session

    Barclays Global Financial Service Conference Q&A session www.danskebank.com/ir 18

  19. Slide 19: Appendix

    Barclays Global Financial Service Conference Appendix 19

  20. Slide 20: Winding-up of Non-core Ireland proceeds as planned

    Barclays Global Financial Service Conference Winding-up of Non-core Ireland proceeds as planned – exposure to commercial real estate almost sold-off Non-core Ireland loan portfolio*, (DKK bn) Commercial real estate Other corporate loans -85% 9.3 7.8 7.4 7.3 6.9 6.9 3.8 3.7 3.4 3.0 2.2 1.4 Q1 14 Q2 1

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