Danske Bank A/s · OMXCOP:DANSKE
Danske Bank A/s — Q2 2024 Earnings Presentation
14 slides from Danske Bank A/s's earnings presentation, July 2024
Slide 1: Financial results - first half 2024
Presentation for Q2 conference call Financial results - first half 2024 Carsten Egeriis Stephan Engels Chief Executive Officer Chief Financial Officer
Slide 2: Financial results – Q2 2024 highlights
Financial results – Q2 2024 Strong financial performance and traction towards targets highlight progress on Forward ’28 strategy; distribution outlook for 2024 in line with financial ambitions Highlights ➢ Strong performance and constructive outlook underpinned by Core banking income dedicated custo
Slide 3: Personal Customers: Improved financial performance underpinned by good activity
Financial results – Q2 2024 Personal Customers: Improved financial performance underpinned by good activity and uplift in core banking income Highlights Financial performance KPIs Strategic KPIs Improved financial performance and Total income ROAC (%) Cost/income (%) Q2 24 2026 customer activity dri
Slide 4: Business Customers: Stable core income supported by commercial activity
Financial results – Q2 2024 Business Customers: Stable core income supported by commercial activity and a strong uplift in lending demand in Q2 Highlights Financial performance KPIs Strategic KPIs Total income ROAC (%) Cost/income (%) Q2 24 2026 Rebound in profit before tax, supported by steady core
Slide 5: Large Corporates & Institutions: Strong activity and commercial momentum
Financial results – Q2 2024 Large Corporates & Institutions: Strong activity and commercial momentum lift core banking income Highlights Financial performance KPIs Strategic KPIs Total income ROAC (%) Cost/income (%) Q2 24 2026 Strong financial performance as NII is supplemented by higher fee income
Slide 6: Strong income uplift driven by NII and continued momentum for fee income
Financial results – Q2 2024 Strong income uplift driven by NII and continued momentum for fee income; cost trajectory according to plan; strong credit quality and net reversals of impairments Highlights Income statement (DKK m) Total income up 9% Y/Y and 1% Q/Q supported by H1 24 H1 23 Index Q2 24 Q
Slide 7: NII: Sustained uplift in NII as positive volume contribution mitigates normalisation
Financial results – Q2 2024 NII: Sustained uplift in NII as positive volume contribution and treasury portfolio mitigate normalisation of CB policy rates Highlights Net interest income H124 vs H123 (DKKm) Deposit margin development (%) 3.0 18,287 Net interest income trajectory in line with 210 2.5 2
Slide 8: Fees: Strong fee income, up 13% Y/Y
Financial results – Q2 2024 Fees: Strong fee income, up 13% Y/Y, driven by high customer activity across products lines, especially in investments and everyday banking fees Highlights Net fee income (DKK m) Activity-driven fees (transfers, accounts, etc.) 7,074 Demand for everyday banking solutions
Slide 9: Trading income: Lower customer activity following strong H1-23
Financial results – Q2 2024 Trading income: Lower customer activity following strong H1-23 Highlights Net trading income (DKK m) LC&I 2,238 Y/Y: Lower customer activity and exceptionally strong customer activity at LC&I in H123 led to the decline -466 Q/Q: Customer activity was seasonal low in Q224
Slide 10: Expenses: Prudent cost management delivering in line with 2026 target
Financial results – Q2 2024 Expenses: Prudent cost management delivering in line with 2026 financial target Highlights Expenses (DKK m) Total operating expenses up 2% Q/Q, due to inflation 68 -105 and execution of targeted investments 12,818 254 Cost/income ratio down to 46% from 49% a year ago 12,6
Slide 11: Impairments: Strong credit quality with net reversals of impairments
Financial results – Q2 2024 Impairments: Strong credit quality with net reversals of impairments; PMA buffers remain 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 work out cases
Slide 12: Capital: Strong capital base with CET1 capital ratio of 18.5%
Financial results – Q2 2024 Capital: Strong capital base with CET1 capital ratio of 18.5% Highlights CET1 development (%) CET1 buffer CET1 cap. req. CET1 capital ratio remained strong at 18.5%, stable from the level in Q1, as REA 18.5 18.5 0.1 increases were offset by retained earnings and lower ded
Slide 13: Financial outlook revised upwards on 26th June
Financial results – Q2 2024 Financial outlook revised upwards on 26th June Net profit for 2024 will reflect progress on financial ambitions for 2026 Total income is expected to grow in 2024, driven by higher core income, our continued efforts to Income drive commercial momentum and in line with our
Slide 14: Q&A Session
Q&A Session Press *11 to ask a question