Danske Bank A/S · OMXCOP:DANSKE
Danske Bank A/S — Shareholder Meeting (2009)
32 slides from Danske Bank A/S's shareholder meeting presentation, 2009
Slide 1: Welcome to Danske Bank's annual general meeting 2009
1 Welcome to Danske Banks annual general meeting 2009
Slide 2: 2008: Economic downturn
2 2008: Economic downturn % GDP growth 12 10 8 6 4 2 0 2004 2005 2006 2007 2008E -2 -4 Denmark No rway Sweden Rep. o f Ireland UK Finland Esto nia Latvia Lithuania
Slide 3: Bank packages
3 Bank packages Bank packages
Slide 4: Unbelievable value destruction
4 Unbelievable value destruction - Among financial institutions during the past 18 months Index 120 100 80 60 40 20 0 01-06-07 01-07-07 31-07-07 30-08-07 29-09-07 29-10-07 28-11-07 28-12-07 27-01-08 26-02-08 27-03-08 26-04-08 26-05-08 25-06-08 25-07-08 24-08-08 23-09-08 23-10-08 22-11-08 22-12-08 SE
Slide 5: Financial results 2008
5 Financial results 2008 - Stable income despite turbulence but rising impairment charges Income statement Index (DKr m) 2008 2007 08/07 Net interest income 27,005 24,391 111 Net fee income 8,110 9,166 88 Net trading income 6,076 7,378 82 Other income 3,585 3,010 119 Net income from insurance busine
Slide 6: Annual Report 2008
6 Annual Report 2008 www.danskebank.com/ir
Slide 7: Solid income base
7 Solid income base - The crisis expands and wreaks havoc across the economy DKr bn 15 Profit before impairment charges, trading and insurance income 10 5 Trading and insurance income 0 2004 2005 2006 2007 2008
Slide 8: Financial results 2008
8 Financial results 2008 - Decline in income Income statement Index (DKr m) 2008 2007 08/07 Net interest income 27,005 24,391 111 Net fee income 8,110 9,166 88 Net trading income 6,076 7,378 82 Other income 3,585 3,010 119 Net income from insurance business -1,733 1,118 - Total income 43,043 45,063
Slide 9: Finland stable IT systems
9 Finland stable IT systems - IT problems caused migration troubles
Slide 10: Sampo Bank migration figures
10 Sampo Bank migration figures Approx. 2,500 > 1 million 45 projects under 70,000 test cases Programme Office project participants development hours >1,500 3,000 conversion 500 conversion jobs controls eLearning modules 125 branches 3,300 new employees on systems 3,600 new PCs Changes to and upgrad
Slide 11: Financial results 2008
11 Financial results 2008 - Trading income down 18%, other income up Income statement Index (DKr m) 2008 2007 08/07 Net interest income 27,005 24,391 111 Net fee income 8,110 9,166 88 Net trading income 6,076 7,378 82 Other income 3,585 3,010 119 Net income from insurance business -1,733 1,118 - Tot
Slide 12: Improving lending margins in Denmark
12 Improving lending margins in Denmark - Coming from a historically low level % 10 Lending margins 8 6 4 2 1996 1998 2000 2002 2004 2006 2008 Source: Danmarks Nationalbank
Slide 13: Tight cost control
13 Tight cost control - Increased focus DKr bn 30 28 2008 Good- State will 26 guarantee 24 2008 2007 (adj.) 22
Slide 14: Directors remuneration
14 Directors remuneration Fixed annual fee: DKr 325,000 Chairman receives triple that amount, vice chairmen receive double the amount Fee for committee membership: DKr 200,00 Extraordinary addition of DKr 40,000 to the committee chairman if he or she is not the Chairman or a Vice Chairman o
Slide 15: Impairment charges, Danske Bank 1993-2008
15 Impairment charges, Danske Bank 1993-2008 - After 12 good years, the trend has turned % 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 1997 1999 2000 2002 2003 2004 1998 2001 1996 2005 2007 2008 2006 1995 1993 1994 -0.2
Slide 16: IT Factory a confidence game
16 IT Factory a confidence game
Slide 17: Lehman Brothers
17 vane Storbanken Lehman Brothers gar konkurs Kzempekrak: Lehman Brothers konkurs Manda ‘ 2 ‘ Mandag den 15. september 2008, 07:28 Den kriseramte amerikanske investeringsbank Lehman tania = oplyser 3 Den amerikanske investeringsbank Lehman Brothers indgiver e x o==— konkursbegzring, mens Bank of Am
Slide 18: Sharp rise in loan impairment charges
18 Sharp rise in loan impairment charges - Corporates and financials stand out DKr bn Loan impairment charges 15 Finan- 10 cials Corpo- DKr4.3bn rates 5 DKr7.0bn Perso- 0 2007 2008 nal DKr 0.8bn
Slide 19: Impairment charges: collective and individual
19 Impairment charges: collective and individual - Individual corporate charges is largest segment Financials Corporates Collective DKr1.5bn Individual Collective DKr2.3bn DKr2.0bn Individual DKr5.5bn
Slide 20: Impairment charges for corporates
20 Impairment charges for corporates - Reflect economic trends and consumer confidence % Industrial output 120 1.5 Impairment charges as % of lending vol. 115 110 1.0 105 2007 2008 Nov-08 0.5 20 Consumer confidence 10 0 0.0 -10 construction Transport & Consumer industries Property & shipping -20 Oth
Slide 21: Geographical breakdown, impairment charges
21 Geographical breakdown, impairment charges - Largest losses in Ireland, Northern Ireland and Baltic countries % 2.5 Impairment charges as % of lending 1.7bn 2.0 1.5 0.6bn 1.0 0.3bn 0.5 3.7bn 0.5bn 0.5bn 0.5bn 0.0 Irland Baltikum Norge Sverige Sweden
Slide 22: Financial results 2008
22 Financial results 2008 - Tax payments Income statement Index (DKr m) 2008 2007 08/07 Net interest income 27,005 24,391 111 Net fee income 8,110 9,166 88 Net trading income 6,076 7,378 82 Other income 3,585 3,010 119 Net income from insurance business -1,733 1,118 - Total income 43,043 45,063 96 O
Slide 23: Credit policy
Credit policy Danske
Slide 24: Balance sheet
24 Balance sheet Balance sheet (end of year) Index (DKr m) 2008 2007 08/07 Due from credit institutions and central banks 215,823 345,959 62 Loans and advances 1,785,323 1,700,999 105 Repo loans 233,971 287,223 81 Trading portfolio assets 860,788 652,137 132 Investment securities 140,793 37,651 374
Slide 25: Economic downturn and failing banks
25 Economic downturn and failing banks - Frozen capital markets
Slide 26: Solid capital base
26 Solid capital base - Capital injection brings Danske Bank above European average % Core (tier 1) ratios of European banks (2009E) 15 After capital injection 14.40 12.20 12% 12% 11.20 10 Average: 9.3% 9.20 8.70 8.70 7.60 7.80 7.80 7.30 7.40 5 0 Germany Italy Spain Ireland France Scandi Denm Danske
Slide 27: Solvency ratio
27 Solvency ratio - Solvency ratio of 13% at the end of 2008 2008 2007 Solvency ratio 13.0 9.3 Core (tier 1) capital ratio 9.2 6.4
Slide 28: Profit allocation at Danske Bank A/S
28 Profit allocation at Danske Bank A/S Result for the year DKr -448m Equity reserve method DKr 3,864m Retained earnings DKr -4,312m
Slide 29: Corporate governance
29 Corporate governance - Three opt-outs 1. Directors term of office 2. Evaluation of directors 3. Number of directorships
Slide 30: Share price
0 25 50 75 100 125 150 175 200 225 250 275 02-01-2004 21-02-2004 11-04-2004 31-05-2004 20-07-2004 08-09-2004 28-10-2004 17-12-2004 05-02-2005 27-03-2005 16-05-2005 05-07-2005 24-08-2005 Share price 13-10-2005 02-12-2005 21-01-2006 12-03-2006 - Over the past 5 years 01-05-2006 20-06-2006 09-08-2006 2
Slide 31: Outlook for 2009
31 Outlook for 2009 Difficult corporate conditions Solid income base
Slide 32: Danske Bank's annual general meeting 2009
32 Danske Banks annual general meeting 2009