Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — Q1 2005 Earnings Presentation
52 slides from Danske Bank A/S's earnings presentation, May 2005
Slide 1: Fact Book Q1 2005
Danske Bank Fact Book Q1 2005 Fact Book Q1 2005 Supplementary Information for Investors and Analysts Unaudited Investor Relations Updated: May 2005 1
Slide 2: Fact Book Q1 2005 Contacts and Disclaimer
Danske Bank Fact Book Q1 2005 Fact Book Q1 2005 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 and www.danskebank.dk. For further information, please contact: Ton
Slide 3: Table of contents
Danske Bank Fact Book Q1 2005 Table of contents 1. Danske Bank Group overview 3. Business segments and key statistics 1.1. History 5 3.1. Banking Activities 28 1.2. Executive management 6 3.1.1. Banking Activities, Danske Bank 29 1.3. Business profile and vision 9 3.1.2. Banking Activities, BG Bank
Slide 4: Group overview
Danske Bank Fact Book Q1 2005 Danske Bank Group overview 4
Slide 5: 1.1. History
Danske Bank Fact Book Q1 2005 1.1. History Danske Bank A/S was founded in 1871 and has merged with a number of financial institutions through the years. In 1990, it merged with Aktieselskabet Kjøbenhavns Handelsbank, which was founded in 1873, and with Provinsbanken A/S, which dated back to 1846. In
Slide 6: 1.2. Executive management
Danske Bank Fact Book Q1 2005 1.2. Executive management Executive Board and members of the Executive Committee Peter Straarup, CEO Jakob Brogaard Chairman of the Executive Board Deputy Chairman of the Executive Board and member and the Executive Commitee of the Executive Commitee Born in 1951 Born i
Slide 7: Members of the Executive Committee
Danske Bank Fact Book Q1 2005 Members of the Executive Commitee Jørgen Kleinstrup Sven E. Lystbæk Member of the Executive Commitee Member of the Executive Commitee Head of International Business Development Head of Shared Service Centre Born in 1953 Born in 1951 Hired in 1972 Hired in 1983 Education
Slide 8: Danske Bank Group Organisation
Danske Bank Fact Book Q1 2005 Danske Bank Group Board of Directors May 2005 Organisation Board of Directors Secretariat Audit Department Steen Rasmussen Jens Peter Thomassen Senior Vice President Group Chief Auditor Chairman of the Executive Board Peter Straarup *) Dep. Chairman of the Executive Boa
Slide 9: 1.3. Business profile and vision
Danske Bank Fact Book Q1 2005 1.3. Business profile and vision The Danske Bank Group provides a wide range of banking, mortgage and insurance products as well as other financial services. It is the largest financial institution in Denmark and one of the largest in the Nordic region, measured by tota
Slide 10: 1.4. Ratings
Danske Bank Fact Book Q1 2005 1.4. Ratings The Danske Bank Group has been rated by the three large international credit rating agencies: Moody's, Standard & Poor's and Fitch Ratings. The agencies each use their own rating scales, on which the highest possible ratings are AAA and Aaa (see the table b
Slide 11: 1.5. Geographical operations
Danske Bank Fact Book Q1 2005 1.5. Geographical operations Danske Bank is predominantly represented in Northern Europe within retail banking. Danske Bank is furthermore either directly or indirectly represented in many financial centres around the world, through branches in London and Hamburg as wel
Slide 12: Brands
Danske Bank Fact Book Q1 2005 Brands A central part of Danske Banks marketing strategy concerns utilising the groups various brands. Although we operate on a shared IT platform, we believe that targeted branding is necessary in order to appeal to as many customers as possible. Overview of brands i
Slide 13: Financial statistics
Danske Bank Fact Book Q1 2005 Financial statistics 13
Slide 14: 2.1. Profit and loss account
Danske Bank Fact Book Q1 2005 2.1. Profit and loss account Profit & Loss (DKr m) Year to date Full year Q105 Q404 Q304 Q204 Q104 2005 2004 Interest income 14,109 14,564 13,498 13,408 12,651 14,109 54,121 Interest expense 10,107 10,825 9,837 9,689 9,018 10,107 39,369 Net interest income 4,002 3,739 3
Slide 15: 2.1.1. Breakdown of profit and loss account
Danske Bank Fact Book Q1 2005 2.1.1. Breakdown of profit and loss account Income Country distribution of net interest income The Rep. of Others England Ireland* Others England Q1 2005 3% 2% Q1 2004 3% Danske Bank, BG bank & Mortgage Finance 2% Sweden 3% Norway 9% Sweden Northern Ireland* Northern Ir
Slide 16: Net interest income and net fees and commissions
Danske Bank Fact Book Q1 2005 Net interest income DKr m 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Q104 Q204 Q304 Q404 Q105 Net interest income Net fees and commissions DKr m 2,000 1,500 1,000 500 0 Q104 Q204 Q304 Q404 Q105 Guarantees & other commissions Security & custody commissions Payment s
Slide 17: Total other income
Danske Bank Fact Book Q1 2005 Total other income DKr m 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Q104 Q204 Q304 Q404 Q105 Net trading income Other income Net income from insurance business 17
Slide 18: Expenses
Danske Bank Fact Book Q1 2005 Expenses Total IT expenses IT expenses (DKr m) Year to date Full year Q105 Q404 Q304 Q204 Q104 2005 2004 Total IT expenses (development and operations) 600 618 536 587 592 600 2,333 Total IT expenses/operating expenses, % 15.2 14.1 15.4 15.7 15.6 15.2 15.2 Total IT expe
Slide 19: 2.2. Balance sheet
Danske Bank Fact Book Q1 2005 2.2. Balance sheet Balance sheet (DKr m) End of period End of year Q105 Q404 Q304 Q204 Q104 2005 2004 Cash and current balances with central banks 10,257 7,741 8,491 4,895 13,780 10,257 7,741 Due from other credit institutions and central banks 245,078 230,690 202,383 2
Slide 20: 2.2.1. Breakdown of balance sheet
Danske Bank Fact Book Q1 2005 2.2.1. Breakdown of balance sheet Core capital, capital base and solvency ratio (DKr m) March December December* 2005 2004 2004 Shareholders' equity 65,035 66,995 60,806 Net profit for the period -3,008 - - Expected dividends - -5,010 - Minority interests -253 -265 2 Ow
Slide 21: Lending portfolio broken down by segment
Danske Bank Fact Book Q1 2005 Lending portfolio broken down by segment Danske Banks lending portfolio is concentrated in the Nordic region. Lending portfolio breakdown, end period End of period End of year Volume (DKr bn) Segment Q105 Q404 Q304 Q204 Q104 2005 2004 Banking Activities, Danske Bank Re
Slide 22: Deposit portfolio broken down by segment
Danske Bank Fact Book Q1 2005 Deposit portfolio broken down by segment Danske Banks deposits portfolio is concentrated in the Nordic region. Deposit portfolio breakdown, end period End of period End of year Volume (DKr bn) Segment Q105 Q404 Q304 Q204 Q104 2005 2004 Banking Activities, Danske Bank R
Slide 23: Bank lending and deposits by segment Q105
Danske Bank Fact Book Q1 2005 Others Others 9% Bank lending, retail Q105 Bank lending, corporate Q105 11% BA, The Rep. of Banking Activities, Danske Bank Ireland Danske Markets Banking Activities, BG Bank BA, DB 6% 8% Banking Activities, Norway 34% Banking Activities, Sweden BA, DB BA, The Rep. of B
Slide 24: Provisions and non performing loans
Danske Bank Fact Book Q1 2005 Provisions and non performing loans Provisions and non performing loans (Danske Bank Group) Year to date Full year Q105 Q404 Q304 Q204 Q104 2005 2004 Accumulated provisions (DKr bn end period)* 5.80 5.80 7.10 7.10 7.20 5.80 5.80 Non performing loans (Dkr bn end period)
Slide 25: Key ratios
Danske Bank Fact Book Q1 2005 Key ratios Key ratios Year to date Full year Q105 Q404 Q304 Q204 Q104 2005 2004 Net profit for the period per share, DKr 4.8 4.8 3.5 2.8 3.4 4.8 14.4 Diluted profit for the period per share, DKr 4.8 4.8 3.5 2.8 3.4 4.8 14.4 Net profit for the period as % p.a. of average
Slide 26: 2.3. Key indicators
Danske Bank Fact Book Q1 2005 2.3. Key indicators 17.8 17.5 16.4 17.5 16.0 15.2 14.4 15.0 14.0 13.9 15.0 13.3 12.5 11.5 12.5 11.9 11.5 10.0 10.0 9.4 8.2 7.5 7.5 4.8 5.0 5.0 2.5 2.5 0.0 0.0 1999 2000 2001 2002 2003 2004 2005 1999 2000 2001 2002 2003 2004 2005 Return on equity (after tax) p.a., % (YTD
Slide 27: Business segments and key statistics
Danske Bank Fact Book Q1 2005 Business segments and key statistics 27
Slide 28: 3.1. Financial performance, Banking Activities
Danske Bank Fact Book Q1 2005 3.1. Financial performance, Banking Activities The organisational adjustment announced in October 2003 took effect on January 1, 2004. The adjustment included the division of Banking Activities, Denmark, into a Danske Bank division and a BG Bank division. Other Banking
Slide 29: 3.1.1. Financial performance, Danske Bank
Danske Bank Fact Book Q1 2005 3.1.1. Financial performance, Danske Bank Banking Activities, Danske Bank, encompasses the banking activities of the Danske Bank division in Denmark. Danske Bank caters to all types of retail and corporate customers. The Bank's finance centres serve large corporate and
Slide 30: 3.1.2. Financial performance, BG Bank
Danske Bank Fact Book Q1 2005 3.1.2. Financial performance, BG Bank Banking Activities, BG Bank, encompasses the banking activities of the BG Bank division in Denmark. BG Bank caters to all types of retail customers and most types of corporate customers through its branch network. In addition, BG Ba
Slide 31: Net interest income in Danske Bank and BG Bank
Danske Bank Fact Book Q1 2005 Net interest income in Banking Activities, Danske Bank and BG Bank (YOY) Historical net interest income in Banking Activities, Danske Bank and BG Bank (DKr m) Q104 Change Q105 Net interest income in Q104 2,034 Loan volume 202 Loan margins -104 Deposit volume 23 Deposit
Slide 32: 3.1.3. Financial performance, Norway
Danske Bank Fact Book Q1 2005 3.1.3. Financial performance, Norway Banking Activities Norway encompasses primarily the banking activities of Fokus Bank in Norway. Banking Activities Norway has 69 branches and about 1,000 employees. Banking Activities, Norway (DKr m) Year to date Full year Q105 Q404
Slide 33: 3.1.4. Financial performance, Sweden
Danske Bank Fact Book Q1 2005 3.1.4. Financial performance, Sweden Banking Activities Sweden encompasses the banking activities of Östgöta Enskilda Bank and Provinsbankerne in Sweden. Banking Activities Sweden has 47 branches and about 1,000 employees. Banking Activities, Sweden (DKr m) Year to date
Slide 34: 3.1.5. Financial performance, Northern Ireland
Danske Bank Fact Book Q1 2005 3.1.5. Financial performance, Northern Ireland Banking Activities Northern Ireland encompasses the banking activities of Northern Bank. Northern Bank serves retail and corporate customers. Banking Activities Northern Ireland has 95 branches, 13 corporate centres and aro
Slide 35: 3.1.6. Financial performance, The Republic of Ireland
Danske Bank Fact Book Q1 2005 3.1.6. Financial performance, The Republic of Ireland Banking Activities Ireland encompasses the banking activities of National Irish Bank. National Irish Bank serves primarily retail customers and large corporate customers. Banking Activities Ireland has 59 branches, 1
Slide 36: 3.1.7. Financial performance, Other Banking Activities
Danske Bank Fact Book Q1 2005 3.1.7. Financial performance, Other Banking Activities (incl. UK and USA) Other Banking Activities comprises the Danish banking activities of Nordania and HandelsFinans and banking activities carried out in England, the US, Luxembourg, Germany, Poland and Finland. Other
Slide 37: 3.2. Financial performance, Mortgage Finance
Danske Bank Fact Book Q1 2005 3.2. Financial performance, Mortgage Finance Mortgage Finance encompasses the Danske Bank Group's mortgage finance and real-estate agency business in Denmark. The division markets its financing solutions through Realkredit Danmark, Danske Bank, BG Bank and "home". Real-
Slide 38: Distribution of loan portfolio
Danske Bank Fact Book Q1 2005 Distribution of loan portfolio Distribution of loan portfolio by loan-to-value ratios as at March 31, 2005 Distribution of loan portfolio by outstanding bond debt as at March 31, 2005 100 Loan to value: 100 Outstanding debt per property: Percentage of loan portfolio Sha
Slide 39: 3.3. Financial performance, Danske Markets
Danske Bank Fact Book Q1 2005 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, foreign exchange, equity and interest-bearing securities, providing the largest corporate an
Slide 40: 3.4. Financial performance, Danske Capital
Danske Bank Fact Book Q1 2005 3.4. Financial performance, Danske Capital Danske Capital manages the funds of retail customers and institutional clients and the funds of Danica Pension, Firstnordic, Puljeinvest (pooled investment) and Flexinvest. The division also provides advisory services to Danske
Slide 41: 3.5. Financial performance, Danica Pension
Danske Bank Fact Book Q1 2005 3.5. Financial performance, Danica Pension The Forsikringsselskabet Danica Group encompasses all Danicas activities in the life insurance and pensions market. Marketed under the name of Danica Pension, the unit targets both personal and corporate customers. Products ar
Slide 42: Shareholder information
Danske Bank Fact Book Q1 2005 Shareholder information 42
Slide 43: 4.1. Ownership structure
Danske Bank Fact Book Q1 2005 4.1. Ownership structure Shareholder composition At the end of March 2005, Danske Bank had about 260,000 shareholders. Some 17 shareholders held around 58% of the Bank's share capital. Shareholder breakdown by size Size of holding (end-period) Number of shareholders Per
Slide 44: Geographical shareholder breakdown and common share data
Danske Bank Fact Book Q1 2005 Geographical shareholder breakdown The Bank estimates that one-third of its share capital is held outside of Denmark. The region with the largest shareholding outside of Denmark is the US, with about 15% of the Bank's share capital. The UK ranks second, with about 10%.
Slide 45: Per share data
Danske Bank Fact Book Q1 2005 Per share data (DKr) * Q105 2004* 2003 2002 2001 2000 Earnings per share, DKr 4.8 14.4 13.3 11.5 11.9 8.2 Price/earnings, end of period p.a. 8.6 11.6 10.4 10.2 11.4 17.3 Dividend per share, DKr - 7.85 6.55 4.75 4.75 4.40 Dividend yield, % - 5.6 4.7 4.0 3.5 3.1 Share pri
Slide 46: Macroeconomics
Danske Bank Fact Book Q1 2005 Macroeconomics 46
Slide 47: 5.1. Tables and charts
Danske Bank Fact Book Q1 2005 5.1. Tables and charts Denmark (%) 2006E 2005E 2004E 2003 2002 2001 2000 GDP Growth 2.2 2.2 2.4 0.7 0.3 1.6 2.8 Export 4.5 3.4 4.0 -1.6 4.8 4.4 13.5 Private Consumption 2.5 3.7 4.3 0.9 0.6 -0.2 -0.7 Public Consumption 0.5 0.6 0.7 1.0 2.1 2.7 0.9 Inflation 1.8 1.5 1.2 2.
Slide 48: Euroland, Ireland and UK macroeconomic tables
Danske Bank Fact Book Q1 2005 Euroland (%) 2006E 2005E 2004E 2003 2002 2001 2000 GDP Growth 2.0 1.7 1.8 0.5 0.8 1.6 3.5 Export 5.5 5.0 5.6 0.3 1.8 3.3 12.2 Private Consumption 1.9 1.4 1.2 1.0 0.6 1.9 2.8 Public Consumption 2.1 1.9 1.6 1.7 3.1 2.4 2.3 Inflation 2.0 1.9 2.1 2.1 2.3 2.3 2.1 Unemploymen
Slide 49: House price index and Unemployment Rate (DK)
Danske Bank Fact Book Q1 2005 House price index (DK-seasonally adj) (1995=100) 215 190 165 140 115 90 1995 1995 1996 1997 1998 1998 1999 2000 2001 2001 2002 2003 2004 2004 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Unemployment Rate (DK) 10 9 8 7 6 5 4 1996 1996 1997 1998 1999 1999 2000 2001 2002 200
Slide 50: GDP Growth and Private Consumption
Danske Bank Fact Book Q1 2005 GDP Growth 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2000 2001 2002 2003 2004E 2005E 2006E Denmark Norway Sweden Ireland UK Private Consumption 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% 2000 2001 2002 2003 2004E 2005E 2006E Denmark Norw
Slide 51: Household debt and interest payments, Denmark and Norway
Danske Bank Fact Book Q1 2005 % of disposable Household debt and interest payments, Denmark % of disposable income income 220 Debt burden Interest burden 12.00 210 10.00 200 8.00 190 6.00 180 4.00 170 2.00 160 0.00 Dec-98 Sep-99 Jun-00 Mar-01 Dec-01 Sep-02 Jun-03 Mar-04 Dec-04 Debt burden Interest b
Slide 52: Household debt and interest payments, Sweden
Danske Bank Fact Book Q1 2005 % of disposable Household debt and interest payments, Sweden % of disposable income income 160 Debt burden Interest burden 12.00 140 10.00 120 8.00 100 80 6.00 60 4.00 40 2.00 20 0 0.00 Jun-89 Jun-92 Jun-95 Jun-98 Jun-01 Jun-04 Mar-87 Mar-90 Mar-93 Mar-96 Mar-99 Mar-02