Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — H1 2006 Earnings Presentation
28 slides from Danske Bank A/S's earnings presentation, Aug 10, 2006
Slide 1: Interim Report 2006 Press conference
INTERIM REPORT 2006 Press conference August 10, 2006
Slide 2: First half of 2006 in brief
FIRST HALF OF 2006 IN BRIEF First half of 2006 in brief - Satisfactory result Profit after tax DKr bn 6.5 Ç 2% Sound macroeconomic conditions Better-than-expected earnings from Banking 6.0 Activities and Danske Markets 6.0 6.1 Loss on equity holdings at Danica Pension and other units 5.5 H1 20
Slide 3: First half of 2006 in brief
FIRST HALF OF 2006 IN BRIEF First half of 2006 in brief - Fundamentally sound global economy sustains business activity Profit after tax DKr bn 6.5 Ç 2% Selected accounting highlights Income Ç 6% 6.0 Expenses Ç 12% Return on equity 16.6% 6.0 6.1 Lending growth 23% 5.5 H1 2005 H1 2006 3
Slide 4: Stock market
FIRST HALF OF 2006 IN BRIEF Stock market - Volatility on the financial markets, but strong growth in period Share trading volume on OMX Copenhagen DKr bn YTD: Ç 37% - June & July È7% : 175 125 75 25 2005 H1 2006 4
Slide 5: Danica Pension
FIRST HALF OF 2006 IN BRIEF Danica Pension - Investment return hurt by falling share prices and rising rates DKr m H1 2005 H1 2006 Index Profit from Insurance 721 248 34 Postponed risk allowance 0 -215 - Income from insurance business 721 33 5 H1 2006 H1 2006 % 4.0 2.0 Added to customers funds 0.0
Slide 6: Sweden and Norway
BUSINESS TRENDS Sweden and Norway Strong growth Fokus Bank % Growth H1 2006 /H1 2005 81 Profit before tax: DKr 457m 40 20 Sweden 0 Income Profit bef. tax Loans Profit before tax: DKr 438m Danske Bank Sweden % Growth H1 2006 /H1 2005 40 20 0 Income Profit bef. tax Loans 6
Slide 7: Northern Bank & National Irish Bank
BUSINESS TRENDS Northern Bank & National Irish Bank Good start after IT conversion 7
Slide 8: Thriving, high-growth markets
BUSINESS TRENDS Thriving, high-growth markets - Positive trends continue Number of customers on the rise Market shares growing Relaunch of banks in Ireland and N. Ireland 8
Slide 9: Thriving, high-growth markets
BUSINESS TRENDS Thriving, high-growth markets % GDP growth 2006E 8 4 Avg. Euro zone 0 Baltics IE NO ES FI SE CH UK NL DK FR IT DE Source: Danske Markets 9
Slide 10: Thriving, high-growth markets
BUSINESS TRENDS Thriving, high-growth markets - And were growing faster than the markets % GDP growth 2006E 8 4 Avg. Euro zone 0 Baltics IE NO ES FI SE CH UK NL DK FR IT DE % Lending growth H1 06/H1 05 60 30 0 Baltics IE NO ES FI SE CH UK NL DK FR IT DE 10
Slide 11: Good advisory services pay off
BUSINESS TRENDS Good advisory services pay off 11
Slide 12: Interest rate changes
BUSINESS TRENDS Interest rate changes Car loans 6.25% 9.25% 12.0% Home loans 6.25% 9.25% 11.50% Cooperative housing loans 5.50% 9.25% 11.50% Danske Prioritet/Bolig Plus 4.55% 6.05% 8.55% 12
Slide 13: Childs savings
BUSINESS TRENDS Childs savings 3.00% 2.75% 2.50% 2.25% Below DKr25,000 Above DKr25,000 13
Slide 14: Danske Bank CSR website
BUSINESS TRENDS | Adresse http: {/www.danskebank.com/csr Investor Relations Corporate Governance Home About Danske Bank Disclaimer Glossary at ra% Q A a CSR > Customers > Employees > Environment > é, CSR policy Society > S| Read the Group's CSR policy CSR Board 7 as adopted by the Board of y Directo
Slide 15: Income statement
ACCOUNTING HIGHLIGHTS Income statement - Satisfactory result high business volume continues Income statement DKr m H1 2005 H1 2006 Index Income 16,769 17,790 106 Expenses 8,658 9,739 112 Profit bef. credit loss exp. 8,111 8,051 99 Credit loss expenses -225 -443 - Profit before tax 8,336 8,494 102
Slide 16: Expenses
ACCOUNTING HIGHLIGHTS Expenses - Up 12% DKr bn 10 Ç 12% 5 0 H1 2005 H1 2006 16
Slide 17: Expenses
ACCOUNTING HIGHLIGHTS Expenses - Up 1% ex Northern Bank and National Irish Bank DKr bn NB & NIB 10 Ç 1% Operating expenses Integration costs Amortisation of intangible assets 5 0 H1 2005 H1 2006 17
Slide 18: Banking Activities Danske Bank
ACCOUNTING HIGHLIGHTS Banking Activities Danske Bank - Healthy earnings in an intensely competitive environment Lending Ç 18% Net interest income Ç 11% Income Ç 14% Profit before tax Ç 33% Sweden 18
Slide 19: Banking Activities BG Bank
ACCOUNTING HIGHLIGHTS Banking Activities BG Bank - Higher growth and satisfactory result Lending Ç 19% Net interest income Ç 7% Income Ç 10% Profit before tax Ç 1% Sweden 19
Slide 20: Banking Activities Sweden
ACCOUNTING HIGHLIGHTS Banking Activities Sweden - Continuing expansion and growing market shares Sweden Lending Ç 28% Net interest income Ç 16% Income Ç 21% Profit before tax Ç 2% Sweden 20
Slide 21: Banking Activities Norway
ACCOUNTING HIGHLIGHTS Banking Activities Norway - High growth and sharp rise in earnings Lending Ç 24% Net interest income Ç 24% Income Ç 37% Profit before tax Ç 74% Sweden 21
Slide 22: Banking Activities Northern Ireland
ACCOUNTING HIGHLIGHTS Banking Activities Northern Ireland - Higher activity than expected Lending Ç 20% Net interest income DKr 816 m Income DKr 1,098 m Profit before tax DKr -204 m Sweden 22
Slide 23: Banking Activities Ireland
ACCOUNTING HIGHLIGHTS Banking Activities Ireland - High growth and earnings in line with expectations Lending Ç 54% Net interest income DKr 420 m Income DKr 519 m Profit before tax DKr -129 m Sweden 23
Slide 24: Realkredit Danmark
ACCOUNTING HIGHLIGHTS Realkredit Danmark - Normal refinancing volume stronger market position Lending, nominel growth Ç 10% Net interest income Ç 5% Income È 7% Profit before tax È 8% Sweden 24
Slide 25: Danske Markets
ACCOUNTING HIGHLIGHTS Danske Markets - High volume and better earnings than expected Income Ç 7% Trading activities Ç 31% Investment portfolio È 26% Profit before tax Ç 4% Sweden 25
Slide 26: Danica Pension
ACCOUNTING HIGHLIGHTS Danica Pension - Good business developments risk allowance postponed Gross premiums Ç 11% Return on investments -3.7% Income from insurance bus. È 95% Sweden 26
Slide 27: Expectations for 2006 as a whole
OUTLOOK Expectations for 2006 as a whole - Earnings estimates maintained Assumptions Expectations 9 Economic growth continues in 9 Total income just over 2005 level primary markets 9 Rise in net interest and fee 9 Lending volume remains high income 9 Interest rates rise in H2 9 Trading income lower
Slide 28: Q&A session
Q&A Q&ASESSION SESSION Q&A session The Q&A session will not be webcast www.danskebank.com 28