Danske Bank A/s · OMXCOP:DANSKE
Danske Bank A/s — Q2 2025 Earnings Presentation
65 slides from Danske Bank A/s's earnings presentation, Jul 18, 2025
Slide 1: Financial results Q2 2025
Financial results Q2 2025 Investor Presentation
Slide 2: Contents
Investor Presentation – Q22025 Contents Danske Bank – brief overview 03 – 11 Financial highlights – Q2 2025 11 – 17 Business & Product Units 18 – 23 Credit Quality & Impairments 24 – 31 Capital 32 – 35 Funding & Liquidity 36 – 40 ESG, Sustainability, Financial Crime Prevention 41 – 54 Credit & ESG R
Slide 3: Danske Bank - a brief overview
Danske Bank - a brief overview Danske Bank 3
Slide 4: We are a focused Nordic bank with strong regional roots
Investor Presentation – Q22025 We are a focused Nordic bank with strong regional roots Finland (AA+) >2.9m 2,000+ ~20,000 3rd largest personal and business large corporate and employees in Share of Group lending: 8% customers institutional customers 9 countries GDP growth 2025E: 1.1% DKK >900bn* >DK
Slide 5: Nordic Outlook June 2025: Strong economies, despite the uncertainties
Investor Presentation – Q22025 Nordic Outlook June 2025: Strong economies, despite the uncertainties Denmark Sweden 2024 Forecast 2025 Forecast 2026 2024 Forecast 2025 Forecast 2026 GDP Growth 3.7% 3.2% (3.9%) 2.5% (2.9%) GDP Growth 1.0% 1.6% (2.0%) 2.5% (2.5%) Inflation 1.4% 1.5% (1.8%) 1.6% (1.6%)
Slide 6: Macroeconomic development and outlook in the Nordics
Investor Presentation – Q22025 Macroeconomic development and outlook in the Nordics GDP development (%) Unemployment (%) House prices (index 100=2006) 8 14 280 6 260 12 4 240 10 220 2 200 0 8 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 180 -2 6 160 -4 4 140 -6 120 2 -8 100 80 2006 2008 20
Slide 7: Our commitments for 2026
Investor Presentation – Q22025 Our commitments for 2026 Growth in focus segments Strategic KPIs for ‘26 Financial targets for ‘26 13% Leading wholesale and business bank in the Nordics Personal Number of meetings per Customers advisor (Index: 2023 = 100) 163 Leading retail bank in Denmark and Finlan
Slide 8: Highlights: Solid financial performance and progress on Forward '28 strategy
Highlights : Solid financial performance and progress on Forward ’28 strategy as we further enhance our market position in strong Nordic economies Commercial highlights ➢ Strong operating environment and economic backdrop, particularly in Denmark with GDP growth of 3.2% expected for 2025 Net profit
Slide 9: Danske Bank's strong and liquid balance sheet
Investor Presentation – Q22025 Danske Bank’s strong and liquid balance sheet underpins our resilient business model Danske Bank has a sound funding structure and remains very well capitalised with a prudent CET1 capital buffer to the current regulatory requirements. Further, our liquidity is underpi
Slide 10: Our strategic approach and priorities for sustainability
Investor Presentation – Q22025 Our strategic approach and priorities for sustainability To be a leading Nordic bank in supporting the sustainability transition of Our strategic ambition customers, companies we invest in and Nordic societies Create lasting value for our customers, business and societ
Slide 11: Financial highlights – second quarter 2025
Financial highlights – second quarter 2025 Danske Bank 11
Slide 12: Solid financial performance supported by core lines
Solid financial performance supported by core lines. Profit before impairments stable Y/Y as rate cuts are mitigated by growing volumes and hedge benefit Highlights Income statement (DKK m) Y/Y: Solid total income supported H1 25 H1 24 Index Q2 25 Q1 25 Index by resilient NII and stable fee income.
Slide 13: NII: Resilient NII underpinned by positive volumes and deposit hedge
NII: Resilient NII underpinned by positive volumes and deposit hedge, mitigating rate impact on deposit margins and lower yield on equity Highlights NII H125 vs H124 (DKKm) Deposit margin development** (%) PC NO 3.0 Adj. +0.5% NII stable both Y/Y and Q/Q when adjusting for day 2.68 281 2.5 2.50 2.44
Slide 14: Fee income: Stable fee income development
Fee income: Stable fee income development Y/Y, however, Q2 impacted by volatile financial markets and seasonality in lending activity Highlights Net fee income (DKK m) Everyday banking fees (e.g. transfers, accounts) +2% adj. Customer demand for everyday banking solutions, 7,074 81 -31 19 -76 7,066
Slide 15: Trading income: Customer activity in Q2 impacted by volatile market conditions
Trading income: Customer activity in Q2 impacted by volatile market conditions Highlights Net trading income (DKK m) LC&I +26% Y/Y: Higher customer activity offset by 1,736 adjustments of the fair value of the derivatives portfolio (xVA) 356 Q/Q: Lower customer activity in Q2 1,377 131 -122 -22 16 G
Slide 16: Expenses: Cost trajectory in line with full-year guidance
Expenses: Cost trajectory in line with full-year guidance Highlights Expenses (DKK m) -1% Y/Y: Costs down 1% as higher staff costs, 117 -68 performance-based compensation and -82 digitalisation investments were more than offset 136 12,818 by lower resolution fund fees and structural cost takeouts -2
Slide 17: Financial outlook for 2025 affirmed
Financial outlook for 2025 affirmed We continue to expect total income to be slightly lower in 2025 than in 2024, driven by lower, albeit resilient, NII. Core banking income to be supported by our focus on fee income and our continued efforts to Income drive commercial momentum and growth in line wi
Slide 18: Business & Product Units
Business & Product Units Danske Bank 18
Slide 19: Personal Customers
Personal Customers: Performance supported by deposit growth and customer activity partially offsetting rate impact and lower fee income Highlights* Financial performance KPIs Y/Y total income decreased, in part Total income PC NO ROAC (%) Cost/income (%) due to the divestment of PC NO in Q4 (DKK m)
Slide 20: Business Customers
Business Customers: Solid growth in lending volumes and expanding customer base underpin increased commercial momentum Highlights Financial performance KPIs Y/Y NII resilient and fee income up Total income ROAC (%) Cost/income (%) 3%. Total income affected by lower (DKK m) 2026 target (~21%) 2026 ta
Slide 21: Large Corporates & Institutions
Large Corporates & Institutions: Strong financial performance from continued lending growth and customer activity despite capital markets uncertainty Highlights Financial performance KPIs Total income up (+8% Y/Y), Total income ROAC (%) Cost/income (%) supported by volume growth and (DKK m) 2026 tar
Slide 22: Business units: Continued business momentum in Northern Ireland
Investor Presentation – Q22025 Business units: Continued business momentumin Northern Ireland, with health and accident business improving at Danica Profit before imp. (DKK m) Lending (index) Our focus in Northern Ireland is to remain a strong bank, consolidating our market- leading position 553 566
Slide 23: Realkredit Danmark portfolio overview
Investor Presentation – Q22025 Realkredit Danmark portfolio overview: Continued strong credit quality Highlights Retail loans, Realkredit Danmark, Q225 (%) ( ) = Q125 Portfolio facts, Realkredit Danmark, Q225 Fixed rate (10 yrs-30 yrs) Interest-only Approx. 283,000 loans (residential and commercial)
Slide 24: Credit quality & Impairments
Credit quality & Impairments Danske Bank 24
Slide 25: Asset quality: Strong credit quality
Asset quality: Strong credit quality underpinned by few single-name impairments; prudent macro scenarios and PMA buffer in place Highlights Impairment charges by category (DKK bn) Credit quality deterioration PMAs Macro models 0.22 0.32 Strong credit quality and modest single-name credit deteriorati
Slide 26: IFRS9 macro scenarios
Investor Presentation – Q22025 IFRS9 macro scenarios: Prudently capturing a severe downside scenario Base (55%) Upside (20%) Downside (5%) Severe downside (20%) Denmark 2025 2026 2027 2028 2025 2026 2027 2028 2025 2026 2027 2028 2025 2026 2027 2028 GDP 3.2 2.5 2.3 1.9 3.3 2.8 2.6 2.0 3.0 1.1 1.5 1.9
Slide 27: Strong regional footprint and diversified balance sheet
Investor Presentation – Q22025 Strong regional footprint and diversified balance sheet Lending by segment1 Q2 25 (%) Credit exposure by industry Q2 25 (%, rounded) Personal customers 31 4% 2% Commercial property 13 Northern Ireland LC&I Other Public institutions 9 of which residential (6%) 25% Priva
Slide 28: Overall strong credit quality in portfolios exposed to macro cyclicality
Investor Presentation – Q22025 Overall strong credit quality in portfolios exposed to macro cyclicality CRE: Well diversified & prudently managed portfolio Agriculture: Well-provisioned agriculture book Housing: Low leverage, strong household finances DKK 310 bn in credit exposure and ECL ~1% DKK 60
Slide 29: Commercial property
Investor Presentation – Q22025 Commercial property: Prudently managed and cash-flow based underwriting standards; sound credit quality & adequate buffers in place to mitigate tail risks Highlights Lending to CRE segment by major peer banks (index)* CRE share of total portfolio by major peer banks* D
Slide 30: Fossil fuels exposure
Investor presentation – Q22025 Fossil fuels (coal, oil and gas) exposure Key points Q2 2025 ▪ Exposure towards exploration and production (E&P) of oil and gas has decreased to below 1 DKK bn. and is down by 89% compared to end 2020. ▪ Other oil-related net exposures, i.e. offshore and services, are
Slide 31: Credit quality: Remains strong
Investor Presentation – Q22025 Credit quality: Remains strong Stage 2 and 3 as % of net exposure Allowance account by business unit (DKK bn) 3.0 12 Stage 3 net exposure (% of Total, rhs) PC BC LC&I N.I. 11 2.5 Stage 2 net exposure (% of Total, lhs) 10 19.9 20.1 20.3 20.5 20.2 20.0 20.1 20.2 9 19.4 2
Slide 32: Capital
Capital Danske Bank 32
Slide 33: Capital: Strong capital base with CET1 ratio of 18.7%
Investor Presentation – Q22025 Capital: Strong capital base with CET1 ratio of 18.7% Capital ratios (%) Current capital buffer structure (%) Tier 2 AT1 Pillar II component (total 3,1%) CET1 Systemic risk buffer 23.1 Countercyclical capital buffer 22.4 22.4 22.4 2.5 Capital conservation buffer 14.6 3
Slide 34: Strong CET1 capital generation and build-up of reserves
Investor Presentation – Q22025 Strong CET1 capital generation and build-up of reserves Highlights Common Equity Tier 1, 2010 – 2025 (DKK bn) Strong capital generation of above 270bps annualised since 2024 (before dividend +65bn accrual) 152 149 155 150 144 145 Regulatory impact from EBA guidelines a
Slide 35: Fully compliant with MREL and subordination requirement
Investor Presentation – Q22025 Fully compliant with MREL and subordination requirement; expect to cover MREL need with both preferred and non-preferred senior MREL & subordination requirement* and eligible funds Q225 DKK bn (% of Group REA) Comments +51 PS > 1y (+6.3%) NPS > 1y The Group has to meet
Slide 36: Funding & Liquidity
Funding & Liquidity Danske Bank 36
Slide 37: Funding structure and sources
Investor Presentation – Q22025 Funding structure and sources: Danish mortgage system is fully pass-through Loan portfolio and long-term funding Q225 (DKK bn) Funding sources* (%) 2,181 Q125 62% Senior & Q225 59% 155 NPS bonds 1,726 1,073 Deposits Bank loans 664 11% 12% 10% 10% 9% 9% 8% 8% Bank mortg
Slide 38: Funding programmes and currencies
Investor Presentation – Q22025 Funding programmes and currencies Covered bonds by currency Q225 Largest funding programmes Q225 56% Utilisation SEK EMTN Programme 47% Limit – EUR 35bn Total Global Covered Bond 38% DKK 143 bn Limit – EUR 30bn 42% EUR ECP Programme 1% 23% CHF Limit – EUR 13bn Senior d
Slide 39: Funding plan
Investor Presentation – Q22025 Funding plan Changes in funding* 2025 (DKK bn and bp) Long-term funding excl. RD (DKK bn)** Cov. bonds Senior Non-Preferred Senior Completed (H1-25)** Funding plan 84bp 95 5bp 139bp 40bp 76bp 112bp 79 60-80 26 105bp 154bp 78 21 75 17 17 11 12 13 21 10 1 61 Redemptions
Slide 40: Danske Bank covered bond universe
Investor Presentation – Q22025 Danske Bank covered bond universe – A transparent pool structure, with EUR issuance by Danske Mortgage Bank & Danske Bank A/S D-pool and C-pool Danske Bank A/S C-pool1 S&P AAA Scope AAA Residential mortgages Denmark, D-pool and I-pool Sweden, Danske Hypotek AB Finland,
Slide 41: ESG, Sustainability, Financial Crime Prevention
ESG, Sustainability, Financial Crime Prevention Danske Bank 41
Slide 42: Sustainability is an integrated element of our Forward '28 strategy
Investor Presentation – Q22025 Sustainability is an integrated element of our Forward ’28 strategy Our starting point What we will do Large Corporates & Institutions Personal Customers Sustainable finance advisory services, Housing, investments, pensions, Advisory transition finance and project fina
Slide 43: We have set targets and ambitions covering each of our sustainability agendas
Investor Presentation – Q22025 We have set targets and ambitions covering each of our sustainability agendas Climate change Nature & biodiversity Human rights & social impact We reduce emissions across our value chain We engage with high-impact sector companies We continuously develop our human righ
Slide 44: Our Climate Action Plan is aligned with the Paris Agreement
The disclaimer for the Climate Progress Report 2024 applies to all information shown on this slide Investor Presentation – Q22025 Our Climate Action Plan is aligned with the Paris Agreement More than 99% of our carbon footprint relates to financed emissions from our lending and investment activities
Slide 45: Our Climate Progress Report shows positive traction
The disclaimer for the Climate Progress Report 2024 applies to all information shown on this slide Investor Presentation – Q22025 Our Climate Progress Report shows positive traction across targets, though some targets do not follow linear trajectories Below or within 5% above linear trajectory 5–10%
Slide 46: Nature & biodiversity
Investor Presentation – Q22025 We are continuing our work on nature & biodiversity, building on 2024 results TARGET EXECUTION INSIGHTS AND COMMUNICATION Lending engagement targets reached and asset management target on track Two publications launched Business Customers Large Corporations & Instituti
Slide 47: Overview of our latest sustainability-related publications
Investor Presentation – Q22025 Overview of our latest sustainability-related publications Annual Report 2024 incl. Climate Progress Report 2024 Human Rights Report 2024 Sustainability statement Danske Bank 47
Slide 48: Deep dive – ESG integration in lending operations
Investor Presentation – Q22025 Deep dive – Overview of ESG integration in Danske Bank’s lending operations 1. Position statements 2. Single-name ESG analysis 3. Portfolio-level ESG analysis Our position statements are a key tool for ESG analysis is conducted for all large corporate Carbon disclosure
Slide 49: Sustainability initiatives
Investor Presentation – Q22025 Danske Bank is committed to a range of sustainability initiatives – including these key examples Principles for Principles for Net-Zero Banking Alliance Net-Zero Asset Net Zero Asset Responsible Banking Responsible Investment Owner Alliance Managers Initiative The worl
Slide 50: Testing and continuing to strengthen the Financial Crime Program
Investor Presentation – Q22025 Testing and continuing to strengthen the Financial Crime Program In 2020, the Bank launched the Financial Crime Plan (FC Plan), a comprehensive transformation program, and successfully met its ambitious target of completion Maintaining a sustainable Financial Crime con
Slide 51: The Financial Crime Framework after completion of the FC Plan
Investor Presentation – Q22025 The Financial Crime Framework after completion of the FC Plan The FC Plan resulted in a Financial Crime framework which meets the regulatory requirements applicable to the Bank and is reasonably designed to manage the Bank’s inherent risk in line with its risk toleranc
Slide 52: Regulatory Engagements
Investor Presentation – Q22025 Regulatory Engagements • We engage in ongoing dialogue with our regulators through regular meetings with the Financial Supervisory Authorities (“FSAs”) and the AML Supervisory Ongoing College to ensure aligned expectations and transparency between our regulators and th
Slide 53: Committee Governance for Financial Crime Compliance Risks
Investor Presentation – Q22025 Committee Governance for Financial Crime Compliance Risks Joint Financial Crime Risk & Compliance Committee Conduct and Compliance Committee • Functions as a discussion and decision forum on Financial Crime risk and related • Board level committee that oversees the Ban
Slide 54: The Resolutions with the Danish and U.S. Authorities
Investor Presentation – Q22025 The Resolutions with the Danish and U.S. Authorities In December 2022, Danske Bank reached the final resolutions with the U.S. Department of Justice (DOJ), the U.S. Securities and Exchange Commission (SEC) and the Danish Special Crime Unit (SCU) following the investiga
Slide 55: Credit & ESG Ratings
Credit & ESG Ratings Danske Bank 55
Slide 56: Danske Bank's credit ratings – Scope revises outlook to Positive
Investor Presentation – Q22025 Danske Bank’s credit ratings – Scope revises outlook on Danske Bank to Positive from Stable Long-term instrument ratings Rating summary Fitch Moody’s Nordic Credit Rating S&P Scope • On 27 May 2025, Scope affirmed its AAA Aaa AAA AAA AAA ratings of Danske Bank and revi
Slide 57: Danske Bank's credit ratings – No changes by Fitch or Moody's
Investor Presentation – Q22025 Danske Bank’s credit ratings – No changes by Fitch or Moody’s in Q2 2025 Rating methodology Danske Bank’s rating Operating Business Risk Asset Earnings & Capitalisation & Funding & Viability Government Issuer + + + + + + = + = environment Profile Profile Quality Profit
Slide 58: Danske Bank's credit ratings – Scope revised outlook
Investor Presentation – Q22025 Danske Bank’s credit ratings – In Q2 2025, Scope revised its outlook on Danske Bank to Positive from Stable, there were no changes by S&P Global Rating methodology Danske Bank’s rating Extraordinary Anchor Potential CRA** + 1 + 2 + 3 + 4 = = SACP* + external + ALAC***
Slide 59: Danske Bank's ESG ratings – No changes in Q2 2025
Investor Presentation – Q22025 Danske Bank’s ESG ratings – No changes in Q2 2025 We have chosen to focus on four ESG rating providers based on their importance to our investors ESG rating agency Q2-2025 Q1-2025 End-2024 End-2023 End-2022 End-2021 Range CDP1 B 2% of the 22,400 climate scored B B B B
Slide 60: Tax & Material one-offs
Tax & Material one-offs Danske Bank 60
Slide 61: Tax
Investor Presentation – Q22025 Tax Actual and adjusted tax rates (DKK m) Tax drivers, Q2 2025 The actual tax rate of 25.1% (excluding prior- Line Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q1 2024 year's adjustments) is lower than the Danish rate of 26% - due to the differences in statuary tax 1 Profit before
Slide 62: Material extraordinary items, 2023 – 2025
Investor Presentation – Q22025 Material extraordinary items, 2023 – 2025 Quarter One-off items Effect (DKK m) P&L line affected Transaction costs and prudent valuation related to Personal Customers Norway -693 Other income Gain from sale of shares taken over in connection with a loan 327 Trading Q22
Slide 63: Contacts
Investor Presentation – Q22025 Contacts Investor Relations Group Treasury and Funding Claus Ingar Jensen Mobile +45 25 42 43 70 Bent Callisen Mobile: +45 30 10 23 05 Head of IR clauj@danskebank.dk Head of Group Funding call@danskebank.dk Nicolai Brun Tvernø Mobile +45 31 33 35 47 Thomas Halkjær Jørg
Slide 64: Disclaimer for Danske Bank's Climate Progress Report 2024
Investor Presentation – Q22025 Disclaimer for Danske Bank’s Climate Progress Report 2024 Danske Bank’s Climate Progress Report 2024 has been prepared by Danske Bank A/S (“Danske Bank”). Danske Bank is under supervision by the Danish Financial Supervisory Authority (Finanstilsynet). The publication i
Slide 65: Disclaimer
Investor Presentation – Q22025 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,