Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — Q4 2007 Earnings Presentation
49 slides from Danske Bank A/S's earnings presentation, Jan 31, 2008
Slide 1: Fact Book Q4 2007
Danske Bank Fact Book Q4 2007 Fact Book Q4 2007 Supplementary Information for Investors and Analysts Unaudited Updated: January 31, 2008 1
Slide 2: Table of contents
Danske Bank Fact Book Q4 2007 Table of contents 1.1. Financial goals 4 3. Business segments and key statistics 1.2. Share Data 4 3.1. Banking Activities 24 1.3. Ratings 5 3.1.1. Banking Activities Denmark 25 1.4. Changes in accounting principles 3.1.2. Banking Activities Finland 26 and presentation
Slide 3: Contacts, financial calendar and disclaimer
Danske Bank Fact Book Q4 2007 Fact Book Q4 2007 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 E
Slide 4: Financial goals, dividends and share data
Danske Bank Fact Book Q4 2007 1.1. Financial goals The Group bases its capital management on a set of overall capital targets. The table below shows the targets for the fourth quarter of 2007 as well as the realised ratios. Financial goals Target Realised Q4 2007 CRD target (%) (%) % Core (tier 1) c
Slide 5: Ratings
Danske Bank Fact Book Q4 2007 1.3. Ratings Danske Bank rating overview The agencies each use their own rating scales, on which the highest possible ratings are AAA and Aaa (see the table below). Ratings in the A categories are considered "investment grade", indicating only a marginal risk that the i
Slide 6: Changes in accounting principles and presentation
Danske Bank Fact Book Q4 2007 1.4. Changes in accounting principles and presentation Changes in accounting principles The Group has not changed its accounting principles from those presented in the Fact Book Q3 2007. Changes in presentation In November 2006, the Danske Bank Group entered into an agr
Slide 7: Financial statistics
Danske Bank Fact Book Q4 2007 Financial statistics 7
Slide 8: Income statement – Danske Bank Group
Danske Bank Fact Book Q4 2007 2.1. Income statement Danske Bank Group Full year Full year Income statement (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Net interest income 6,252 6,231 6,053 5,724 6,204 5,775 5,593 5,038 24,260 22,610 Hereof amortisation of loans and deposits* 46 46 46
Slide 9: Breakdown of income
Danske Bank Fact Book Q4 2007 2.1.1. Breakdown of income Country distribution of net interest income Net interest income in Banking Activities, Denmark (YOY) Q4 2007 Change in interest income in Banking Activities Denmark (DKr m) Q406 Change Q407 Net interest income 2,693 Others, 3.1% Baltics, 2.9%
Slide 10: Money market rates and spreads
Danske Bank Fact Book Q4 2007 Money market rates Spreads % BP 8.00 80 7.00 60 6.00 5.00 Opdateres Itraxx Main* 40 4.00 20 3.00 Iboxx Covered** 2.00 0 1.00 Danish mortgage bond*** 0.00 -20 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03
Slide 11: Interest income margins
Danske Bank Fact Book Q4 2007 Interest income margins, Banking Activities Denmark, Sweden, Norway, Northern Ireland and Ireland 2.50 2.50 2.30 2.30 2.10 2.10 1.90 1.90 1.70 1.70 1.50 1.50 1.30 1.30 1.10 1.10 0.90 0.90 0.70 0.70 0.50 0.50 Q406 Q107 Q207 Q307 Q407 Q406 Q107 Q207 Q307 Q407 Lending spre
Slide 12: Exchange rates and net interest income
Danske Bank Fact Book Q4 2007 Exchange rates (Cross currency: Danish krone (DKK)), end of period Exchange rate (end of period) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 Euro (EUR) 745.66 745.44 744.22 745.08 745.60 745.76 745.92 746.24 US Dollars (USD) 507.53 525.74 551.07 559.45 566.14 589.07 586.74
Slide 13: Net fee income and total other income
Danske Bank Fact Book Q4 2007 Net fee income Dkr m 2,500 2,000 1,500 1,000 500 0 Q406 Q107 Q207 Q307 Q407 Fees generated by activities Fees generated by portfolios Net fee income, Sampo The pro forma figures include the Sampo Bank group as of February 2006. As of Q1 2007, no specific net fee income
Slide 14: Breakdown of expenses
Danske Bank Fact Book Q4 2007 2.1.2. Breakdown of expenses Operating expenses Full year Full year DKr m Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Operating expenses 6,574 5,966 6,663 5,867 6,107 5,402 5,693 5,438 25,070 22,640 Amortisation intangibles Banking activities Finland 138 179 135 1
Slide 15: Total IT expenses and full-time employees
Danske Bank Fact Book Q4 2007 Total IT expenses Full year Full year IT expenses (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Total IT expenses (development and operations) 1,118 1,035 1,156 963 782 668 703 849 4,272 3,002 Hereof IT integration expenses (development and operations) 169 1
Slide 16: Balance sheet
Danske Bank Fact Book Q4 2007 2.2. Balance sheet End of year End of year Balance sheet (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Cash in hand and demand deposits with central banks 13,861 13,524 18,934 17,594 25,158 28,850 22,731 39,095 13,861 25,158 Due from credit institutions and
Slide 17: Lending portfolio by segment
Danske Bank Fact Book Q4 2007 2.2.1. Breakdown of balance sheet Lending portfolio broken down by segment Lending portfolio breakdown, end of period End of year End of year Volume (DKr bn) Segment Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Banking Activities Denmark Retail 149.5 143.2 139.1 13
Slide 18: Deposit portfolio by segment
Danske Bank Fact Book Q4 2007 Deposit portfolio broken down by segment Deposit portfolio breakdown, end of period End of year End of year Volume (DKr bn) Segment Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Banking Activities Denmark Retail 160.8 158.1 159.1 151.7 146.7 144.1 145.9 138.4 160.8
Slide 19: Bank lending and deposits, retail and corporate
Danske Bank Fact Book Q4 2007 Bank lending, retail Q407 Bank lending, corporate Q407 Baltics Others Others Danske 3% 3% 4% Ireland Markets 7% 9% Baltics Denmark 2% Northern 33% Ireland 4% Denmark Ireland 6% 36% Norway Northern 13% Ireland 6% Norway Finland Sweden 12% 14% 12% Finland Sweden 20% 16% B
Slide 20: Impairment charges and non-performing loans
Danske Bank Fact Book Q4 2007 Impairment charges and non-performing loans Impairment charges and non-performing loans Full year Full year (Danske Bank Group) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Accumulated impairment charges (DKr bn end period)* 4.90 4.64 4.55 4.53 4.20 4.31 4.49 4.78
Slide 21: Key ratios
Danske Bank Fact Book Q4 2007 2.3. Key ratios Full year Full year Key ratios Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Net profit for the period per share, DKr 5.2 5.3 5.5 5.6 6.0 5.9 4.7 5.0 21.7 21.5 Diluted net profit for the period per share, DKr 5.2 5.3 5.5 5.6 5.9 5.9 4.7 5.0 21.6 21.4
Slide 22: Key ratio charts 2003-2007
Danske Bank Fact Book Q4 2007 Cost/income ratio, % Earnings per share, DKr 65.0 30.0 52.7 52.4 55.6 50.4 52.0 52.0 24.0 21.5 21.7 20.2 39.0 18.0 14.4 13.3 26.0 12.0 13.0 6.0 0.0 0.0 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Total assets, Dkr bn Return on equity (after tax) p.a., % 20.0 18.4
Slide 23: Business segments and key statistics
Danske Bank Fact Book Q4 2007 Business segments and key statistics 23
Slide 24: Financial performance, Banking Activities
Danske Bank Fact Book Q4 2007 3.1. Financial performance, Banking Activities Banking Activities encompasses all banking activities in Danske Bank Group.. Full year Full year Banking Activities (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Net interest income 5,731 5,637 5,411 4,943 5,418
Slide 25: Financial performance, Denmark
Danske Bank Fact Book Q4 2007 3.1.1. Financial performance, Denmark Banking Activities Denmark encompasses the banking activities of Danske Bank in Denmark. Danske Bank caters to all types of retail and corporate customers. Danske Banks finance centres serve large corporate and private banking cust
Slide 26: Financial performance, Finland
Danske Bank Fact Book Q4 2007 3.1.2. Financial performance, Finland Banking Activities Finland encompasses the banking activities of Sampo Bank in Finland and Danske Banks Helsinki Branch. Sampo Bank, which is the third-largest bank in Finland, caters to retail customers, small and medium-sized bus
Slide 27: Financial performance, Sweden
Danske Bank Fact Book Q4 2007 3.1.3. Financial performance, 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 out primarily throug
Slide 28: Financial performance, Norway
Danske Bank Fact Book Q4 2007 3.1.4. Financial performance, 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, Banking Activities Norw
Slide 29: Financial performance, Northern Ireland
Danske Bank Fact Book Q4 2007 3.1.5. Financial performance, 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 94 branches and 1,295 empl
Slide 30: Financial performance, Ireland
Danske Bank Fact Book Q4 2007 3.1.6. Financial performance, 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 64 branches and 608 employees. Full yea
Slide 31: Financial performance, Baltics
Danske Bank Fact Book Q4 2007 3.1.7. Financial performance, 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 44 branches and 1,304 employees. Full year
Slide 32: Financial performance, Baltics, continued
Danske Bank Fact Book Q4 2007 3.1.7. Financial performance, Baltics, continued Full year Full year Banking Activities Baltics (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 ESTONIA Market share (lending) (%) (end of period)* 12.0 11.7 11.0 11.1 10.6 10.4 9.5 8.9 12.0 10.6 Market share (de
Slide 33: Financial performance, Other Banking Activities
Danske Bank Fact Book Q4 2007 3.1.8. Financial performance, Other Banking Activities Other Banking Activities comprises the activities of Nordania Leasing and the Groups banking activities in Germany and Poland. Other Banking Activities has 419 employees. Full year Full year Other Banking Activitie
Slide 34: Financial performance, Mortgage Finance
Danske Bank Fact Book Q4 2007 3.2. Financial performance, Mortgage Finance Mortgage Finance encompasses the Danske Bank Groups mortgage finance and real-estate agency business in Denmark. The division markets its financing solutions through Realkredit Danmark, Danske Bank and the real-estate agency
Slide 35: Mortgage loan portfolio distribution
Danske Bank Fact Book Q4 2007 Distribution of Mortgage loan portfolio at December 31, 2007 Distribution of loan portfolio by loan-to-value ratios Distribution of loan portfolio by outstanding bond debt 100 100 80 80 Loan to value: Outstanding debt Share of portfolio in % per property: Share of portf
Slide 36: Financial performance, Danske Markets
Danske Bank Fact Book Q4 2007 3.3. Financial performance, Danske Markets Danske Markets is responsible for the Groups activities in the financial markets. Trading activities include trading in fixed-income products, foreign exchange, equities and interest-bearing securities; providing the largest c
Slide 37: Financial performance, Danske Capital
Danske Bank Fact Book Q4 2007 3.4. Financial performance, Danske Capital Danske Capital develops and sells asset management products and services that are offered through the Groups banking activities and directly to businesses, institutional clients and external distributors. Danske Capital suppor
Slide 38: Financial performance, Danske Capital, continued
Danske Bank Fact Book Q4 2007 3.4. Financial performance, Danske Capital, continued Full year Full year Danske Capital (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 ASSET MANAGEMENT Net inflow of AuM (DKr bn)* 5 -1 2 -1 -2 6 1 2 5 7 Total AuM (DKr bn) (end of period) 623 639 640 639 634
Slide 39: Financial performance, Danica Pension
Danske Bank Fact Book Q4 2007 3.5. Financial performance, Danica Pension Danica Pension encompasses the Danske Bank Groups activities in the life insurance and pensions market. Danica Pension targets both personal and corporate customers. Products are marketed through a range of distribution channe
Slide 40: Financial performance, Other areas
Danske Bank Fact Book Q4 2007 3.6. Financial performance, Other areas Other areas encompasses unallocated cost of capital, expenses for support functions and the Groups real property activities. Moreover, the area covers the elimination of returns on own shares. Full year Full year Other areas (DKr
Slide 41: Macroeconomics
Danske Bank Fact Book Q4 2007 Macroeconomics 41
Slide 42: Tables and charts: Denmark and Norway
Danske Bank Fact Book Q4 2007 4.1. Tables and charts Denmark (%) 2008E 2007E 2006 2005 2004 2003 2002 2001 GDP Growth 1.7 1.9 3.5 3.1 2.1 0.4 0.5 0.7 Export 4.3 3.1 10.1 7.3 2.2 -1.0 4.1 3.1 Private Consumption 1.7 2.1 3.1 4.2 4.7 1.0 1.5 0.1 Public Consumption 2.0 1.7 1.5 1.1 1.6 0.7 2.1 2.2 Inflat
Slide 43: Euroland and Ireland
Danske Bank Fact Book Q4 2007 Euroland (%) 2008E 2007E 2006 2005 2004 2003 2002 2001 GDP Growth 2.2 2.6 2.8 1.4 1.8 0.5 0.8 1.6 Export 5.5 6.5 8.5 3.7 5.6 0.3 1.8 3.3 Private Consumption 2.0 1.8 1.8 1.3 1.2 1.0 0.6 1.9 Public Consumption 2.0 2.0 2.0 1.1 1.6 1.7 3.1 2.4 Inflation 2.1 2.1 2.1 2.3 2.1
Slide 44: Finland and Estonia
Danske Bank Fact Book Q4 2007 Finland (%) 2008E 2007E 2006 2005 2004 2003 2002 2001 GDP Growth 3.0 4.4 5.0 2.9 3.7 1.8 1.6 2.6 Export 6.0 6.5 10.4 7.2 8.9 -1.7 2.8 2.6 Private Consumption 2.5 3.7 4.3 4.0 2.9 4.7 2.2 2.7 Public Consumption 1.4 1.4 1.0 1.5 1.8 1.6 2.6 1.3 Inflation 2.9 2.5 1.6 0.6 0.2
Slide 45: Lithuania
Danske Bank Fact Book Q4 2007 Lithuania (%) 2008E 2007E 2006 2005 2004 2003 2002 2001 GDP Growth 5.5 8.5 7.6 7.6 7.1 10.5 6.8 6.4 Export 5.1 5.3 15.4 20.1 8.9 7.3 13.1 18.4 Private Consumption 8.0 12.5 13.6 7.7 8.8 10.4 5.5 6.3 Public Consumption 3.0 5.0 7.3 0.2 4.4 4.8 3.6 -0.4 Inflation 8.0 5.0 3.
Slide 46: House-price indices and unemployment
Danske Bank Fact Book Q4 2007 House price index (DK-seasonally adj) House-price indices, % change (1995=100) 330 300 Irland 263 270 240 210 UK 250 180 150 Spanien 198 120 90 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2007 Q4 Danmark 153 Frankrig 159 Sverige 140 NZ 101 USA 75 Un
Slide 47: GDP Growth and Private Consumption
Danske Bank Fact Book Q4 2007 GDP Growth 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2000 2001 2002 2003 2004 2005 2006 2007E 2008E Denmark Norway Sweden Ireland UK Euroland Finland Estonia Latvia Lithuania Private Consumption 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0%
Slide 48: Household debt and interest payments
Danske Bank Fact Book Q4 2007 Household debt and interest payments, Denmark Household debt , Finland % of disposable % of disposable Debt burden Interest burden % of disposable income income income 280 12.0 99 260 88 10.0 77 240 8.0 66 220 55 200 6.0 44 180 33 4.0 160 22 2.0 140 11 120 0.0 0 Dec-98
Slide 49: Household net worth incl. property value
Danske Bank Fact Book Q4 2007 Household net worth incl. property value, Dkr bn 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Denmark % of disposable income 11 Interest and mortgage payments 10 9 8 7 6 5 4 Q103 Q203 Q303 Q403 Q104 Q204 Q