Danske Bank A/s · OMXCOP:DANSKE
Danske Bank A/s — Q3 2024 Earnings Presentation
14 slides from Danske Bank A/s's earnings presentation, Dec 10, 2024
Slide 1: Financial results - first nine months 2024
Presentation for Q3 conference call Financial results - first nine months 2024 Carsten Egeriis Stephan Engels Chief Executive Officer Chief Financial Officer
Slide 2: Highlights: Sustained NII momentum supported by balance sheet effects
Financial results – Q3 2024 Highlights: Sustained NII momentum supported by balance sheet effects; improved efficiency and strong credit quality drive higher profitability Net profit of DKK 6.2bn Resilient NII NII peaked in Q3 as expected, supported by balance sheet effects and Boosting Return on Eq
Slide 3: Personal Customers: Strong financial performance driven by resilient core banking income
Financial results – Q3 2024 Personal Customers: Strong financial performance driven by resilient core banking income and healthy customer activity despite subdued housing lending Highlights Financial performance KPIs Strong financial performance Total income ROAC (%) Cost/income (%) underpinned by h
Slide 4: Business Customers: Strong core banking income and commercial momentum
Financial results – Q3 2024 Business Customers: Strong core banking income and commercial momentum supported by lending growth Highlights Financial performance KPIs Strong financial performance driven Total income ROAC (%) Cost/income (%) by core banking activities (DKK m) 2026 target (~21%) 2026 ta
Slide 5: Large Corporates & Institutions: Good sentiment from corporate deal activity
Financial results – Q3 2024 Large Corporates & Institutions: Good sentiment from corporate deal activity; strong development in Asset Management from continually positive net sales Highlights Financial performance KPIs Momentum in total income continue. Total income ROAC (%) Cost/income (%) Q/Q: Hig
Slide 6: Strong profitability driven by steady NII uplift and solid fee income
Financial results – Q3 2024 Strong profitability driven by steady NII uplift and solid fee income; cost trajectory in line with plan; strong credit quality & net reversal of impairments Highlights Income statement (DKK m) Total income up 8% y/y driven by sustained uplift 9M 24 9M 23 Index Q3 24 Q2 2
Slide 7: NII: Sustained uplift in NII as support from volumes and balance sheet effects
Financial results – Q3 2024 NII: Sustained uplift in NII as support from volumes and balance sheet effects mitigate central bank rate cuts and despite timing of pricing adjustments Highlights NII 9M24 vs 9M23 (DKKm) Deposit margin development* (%) 3.0 27,452 157 2.68 Net interest income trended in l
Slide 8: Fee income: Up 10% Y/Y, driven by high customer activity across products
Financial results – Q3 2024 Fee income: Up 10% Y/Y, driven by high customer activity across products; Q/Q activity remained solid but lower due to one-offs and lower investment fees Highlights Net fee income (DKK m) Activity-driven fees (transfers, accounts, etc.) 10,403 Driven by solid demand for e
Slide 9: Trading income: Healthy customer activity supported by favourable market conditions
Financial results – Q3 2024 Trading income: Healthy customer activity supported by favourable market conditions Highlights Net trading income (DKK m) LC&I 2,127 2,110 Y/Y: Healthy customer activity, reiterating that H1- 23 was exceptionally strong at LC&I -345 344 Q/Q: Favourable market conditions o
Slide 10: Expenses: Cost trajectory in line with plan
Financial results – Q3 2024 Expenses: Cost trajectory in line with plan - inflation and investments mitigated by lower costs related to legacy cases Highlights Expenses (DKK m) 166 -131 19,046 Total operating expenses down 4% q/q due to consistent cost management and one-off benefit 18,853 358 -179
Slide 11: Impairments: Strong credit quality with net reversal of impairments
Financial results – Q3 2024 Impairments: Strong credit quality with net reversal of impairments; prudent PMA buffer remains in place Highlights Impairment charges by category (DKK bn) Credit quality deterioration PMAs Macro models Debt collection one-off Strong credit quality and single-name workout
Slide 12: Capital: Strong capital generation with CET1 capital ratio improving to 19.1%
Financial results – Q3 2024 Capital: Strong capital generation with CET1 capital ratio improving to 19.1% Highlights CET1 development (%) CET1 buffer CET1 cap. req. CET1 capital ratio remained strong and increased further to 19.1% in Q3, from 19.1 lower REA and continually strong capital generation
Slide 13: Financial outlook for 2024 revised upward
Financial results – Q3 2024 Financial outlook for 2024 revised upward due to expected lower expenses and loan impairment charges Total income is expected to grow in 2024, driven by higher core income, our continued efforts to drive Income commercial momentum and in line with our financial targets fo
Slide 14: Q&A Session
Q&A Session Press *11 to ask a question