Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — Shareholder Meeting (March 2015)
26 slides from Danske Bank A/S's shareholder meeting presentation, Mar 18, 2015
Slide 1: Chairman's report
Chairman’s report Ole Andersen Chairman, Board of Directors 18 March 2015
Slide 2: Word of the Year 2014
Word of the Year 2014 MobilePay By Danske Bank®
Slide 3: Reporting in both Danish and English
Reporting in both Danish and English 3
Slide 4: Improvement in the economy, but also headwinds
Improvement in the economy, but also headwinds GDP growth (%) 2014 Interest rates and yields (%) 7.4 15.0 12.5 10-year government bond 10.0 3-month CIBOR 7.5 5.0 2.6 2.4 2.5 Certificate of deposit 1.8 0.0 1990 1995 2000 2005 2010 2015 0.9 0.9 -2.5 -0.2 China Source: Danske Bank and Nasdaq OMX. 4
Slide 5: Best financial results since 2007
Best financial results since 2007 Net profit before goodwill impairments rose 82%, from DKK 7.1 to 12.9 billion Income rose 10% Expenses fell 5% Impairment charges fell 32% Return on equity of 8.5% 5
Slide 6: Increase in top line despite weak macroeconomic conditions
Increase in top line despite weak macroeconomic conditions 2014 2013 43,866 Total income 39,740 23,107 Net interest income 22,077 10,491 Net fee income 9,468 6,562 Net trading income 5,799 1,344 Other income 1,308 2,362 Insurance 1,088 6
Slide 7: Impairment charges remain low
Impairment charges remain low Loan impairment charges,1 2008–14 (DKK billions) Impairment charges Impairment ratio1 (rhs) 30 1.4 1.4 25 1.2 1.0 20 0.7 0.7 0.8 15 0.6 0.6 26 0.6 10 0.3 0.4 12 14 13 13 0.2 5 0.2 5 4 0 0.0 2008 2009 2010 2011 2012 2013 2014 1. The impairment ratio is defined as the Gro
Slide 8: Personal Banking
Personal Banking Profit before tax Total income Expenses Impairment charges (DKK millions) (DKK millions) (DKK millions) (DKK millions) 2013 2,899 2013 16,524 2013 11,738 2013 1,887 +60% +1% -9% -25% 2014 4,648 2014 16,686 2014 10,626 2014 1,412 8
Slide 9: Business Banking
Business Banking Profit before tax Total income Expenses Impairment charges (DKK millions) (DKK millions) (DKK millions) (DKK millions) 2013 4,838 2013 12,071 2013 5,482 2013 1,751 +18% +1% -42% 2014 5,733 2014 12,213 2014 5,473 2014 1,007 9
Slide 10: Corporates & Institutions
Corporates & Institutions Profit before tax Customer-driven Expenses Impairment charges (DKK millions) income (DKK billions) (DKK millions) (DKK millions) 2013 3,374 2013 7 2013 4,588 2013 473 +23% +17% +1% -21% 2014 4,135 2014 8 2014 4,614 2014 372 10
Slide 11: Danske Capital
Danske Capital Profit before tax Total income Expenses Assets under mgt (DKK millions) (DKK millions) (DKK millions) (DKK millions) 2013 1,131 2013 2,164 2013 1,033 2013 727 +24% +11% -3% +9% 2014 1,406 2014 2,405 2014 999 2014 795 11
Slide 12: Danica Pension
Danica Pension Net income Premiums Insurance result (DKK millions) (DKK millions) (DKK millions) 2013 1,088 2013 26,808 2013 1,511 +117% 0% 0% 2014 2,362 2014 26,822 2014 1,508 12
Slide 13: Danske Bank is solid and well-capitalised
Danske Bank is solid and well-capitalised Common equity tier 1 capital ratio in the EBA’s severe stress test scenario Requirement: 5.5% Danske Bank: 11.7% 11.7% 13
Slide 14: Proposal for dividend and share buy-back
Proposal for dividend Dividend and share buy- back DKK 5.5 per share, or 43% of net profit before goodwill impairments Share buy-back programme for DKK 5 billion in 2015 14
Slide 15: Improved ratings in 2014
Improved ratings in 2014 2013 2014 Stable outlook Negative outlook A- A Positive outlook Stable outlook Baa1 A3 Stable outlook Stable outlook A A 15
Slide 16: Status of our strategy
Status of our strategy Digitalisation Advisory Trust & services transparency VISION Recognised as the most trusted financial partner Customer Financial satisfaction results 16
Slide 17: Return on equity of at least 12.5% by 2018
Return on equity of at least 12.5% by 2018 ROE after tax, before goodwill Key elements impairments (%) Over 12.5 Rising income 9.51 Improved ratings and lower funding 8.5 costs Gradual gains in efficiency 5.0 3.6 Business volume growth 2.1 Lower impairment charges/Non- core ‘11 ‘12 ‘13 ‘14 ‘15E ‘18E
Slide 18: Customer satisfaction ratings are moving in the right direction
Customer satisfaction ratings are moving in the right direction Personal Banking On target in 1 of 5 markets Business Banking On target in 4 of 5 markets Corporates & Institutions On target in 57 of 84 surveys 18
Slide 19: A strong Nordic bank
A strong Nordic bank _4 mio. Norway at CUSTOMERS * a 1 8.6 mio. e YEARLY EBANKING : TRANSACTIONS * : e Finland "= BRANCHES * e 1 8,47 8 — ws : Sweden ww FULL-TIME EMPLOYEES * Ultimo 2014 19
Slide 20: Regulations
Regulations 20
Slide 21: Board of Directors matters
Board of Directors matters 21
Slide 22: Management changes
Management changes Gilbert Kohnke Chief Risk Officer 2005–2014: OCBC Bank, Singapore 1996–2005: CIBC World Markets, London, Singapore & New York 1988–1996: Royal Bank of Canada 22
Slide 23: Remuneration of the Executive Board
Remuneration of the Executive Board Fixed salaries unchanged Closer alignment of interest with shareholders Long-term incentive programme based on “total shareholder return” Variable remuneration linked to shares 23
Slide 24: Outlook for 2015
Outlook for 2015 Continuation of fragile economic growth and low interest rates Income Expenses Expected to be in line with 2014 Reduced to less than DKK 22 level billion Impairment charges Net profit Expected to remain low Net profit of more than DKK 14 billion 24
Slide 25: Thank you for your attention
THANK YOU FOR YOUR ATTENTION 25
Slide 26: 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