On track towards recovery

Transcription

1 On track towards recovery Thomas F. Borgen Chief Executive Officer 18 September 2014

2 Executive summary for H Net profit Net profit of DKK 6.9 bn (+88% vs. H1 2013), ROE of 9.2% Income Total income DKK 21.7 bn driven by improvements in most income lines Expenses Continued cost focus lowering expenses by 6% vs. H1 2013, to DKK 11 bn Loan losses Reduction in impairments to DKK 1.3 bn down 44% against H Non-core Guidance for Non-core Ireland impairments of up to DKK 1.5 bn in 2014 Outlook Improved net profit outlook for 2014 to DKK bn 2

3 Net profit: DKK 6.9 bn, up 88% from first half of 2013 incl. Nets Income statement & key figures (DKK m) H1 H Index Net interest income 11,251 10, Net fee income 4,885 4, Net trading income 4,061 3, Other income Net income from insurance business Total income 21,712 19, Expenses 11,021 11, Profit before loan impairment charges 10,691 8, Loan impairment charges 1,267 2, Profit before tax, core 9,424 5, Profit before tax, Non-core ,015 - Profit before tax 8,630 4, Tax 1,771 1, Profit 6,859 3, Return on avg. shareholders' equity (%) Cost/income ratio Key points ROE up from 5.2% to 9.2% Total income up 9% Expenses down 6% Impairments improved 44% 3

4 Improvement mainly due to lower costs and impairments Personal Banking Profit before tax, (DKK m) RoE before tax, (%) Business Banking Profit before tax, (DKK m) RoE before tax, (%) Corporates & Institutions Profit before tax, (DKK m) RoE before tax, (%) H ,248 H ,324 H , % +21% +3% H ,346 H ,813 H ,022 H H H % +27% -13% H H H

5 Satisfactory results for asset management and insurance businesses Danske Capital Profit before tax, (DKK m) RoE before tax, (%) Danica Pension Profit before tax, (DKK m) RoE before tax, (%) H H % H H H H H % H

6 Expenses: Positive effect from strong focus on cost savings Total group expenses, (DKK m) Variable costs (consultancy, bonus, one offs, etc.) Cost base 23,958 23, ,835 20, Actual 2012 Actual 2013 H

7 Impairments: Loan losses reduced significantly Impairments, 2008 to Q214 (DKK bn/bp) Impairments Loan loss ratio* (rhs) Q208 Q209 Q210 Q211 Q212 Q213 Q214 0 * Loan loss ratio defined as annualised impairment charges as a percentage of loans and guarantees. 7

8 Winding-up of Non-core Ireland proceeds as planned exposure to commercial real estate almost halved Non-core Ireland loan portfolio*, (DKK bn) Commercial real estate Other corporate loans -43% Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 * Gross credit exposure 8

9 Capital: Ratios remain strong after repayment of state hybrid, and new regulation Capital ratios, under Basel III/CRR (%) Tier 2 Hybrid tier 1 / Additional tier 1 Common equity tier H1 2013* H Danske Bank s long-term issuer rating and outlook Moody s Positive S&P Negative Fitch Stable Aaa AAA AAA Aa1 AA+ AA+ Aa2 AA AA Aa3 AA- AA- A1 A+ A+ A2 A A A3 A- A- Baa1 BBB+ BBB+ Baa2 BBB BBB Baa3 BBB- BBB- Ca D D * Capital ratios under CRD/Basel II 9

10 Business review: Danske Bank is a Nordic universal bank Nordic Universal Bank Strong strategic and economic rationale, with solid footprint across Nordic region today Attractive markets Stable Triple-A economies offering value and attractive market opportunities Economies of scale Benefits from shared costs associated with critical mass in technology, knowledge sharing, product development and general overhead costs Diversification Diversification of our business and geographical footprint Synergistic opportunities Cross-boarder, intra country and cost synergies; synergies between Pb, BB, DC and C&I enhancing customer offerings 10

11 Customer attention EXECUTION & CASE Simplicity Efficiency MISSION Setting new standards in financial services VISION Recognised as the most trusted financial partner Advisory services Digitalization Openness & Transparenc y Customer satisfaction Financial results 11

12 Our new digital products and services have been well received by our customers Danske Guide Mobile Pay Business & Online Post-trade integrated solution International Banking unit for BB and C&I Advisory services easy banking Ung Direkte Danske One Trader Danske Business One, Plus and Pro 12

13 The rise of the mobile banking universe PC banking Smartphones and tablets Q Q Q Q % Number of payments and transactions +99% 13

14 MobilePay : The evidence of a solid success we are committed to develop even further 1,600,000 active users of MobilePay 3,000 new registered users per day Registered on every 3 Smartphones in Denmark 15 months 68% of active users are not customers with Danske Bank ~75,000 transactions per day with total volume of More than 2,500 active business customers 6 months 20,000,000 in total transaction flow 14

15 Outlook for 2014 Net profit of DKK bn. 15

16 Questions 16

17 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, or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The securities referred to herein have not been, and will not be, registered under the Securities Act of 1933, as amended ( Securities Act ), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. This presentation contains forward-looking statements that reflect management s current views with respect to certain future events and potential financial performance. Although Danske Bank believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors many of which are beyond Danske Bank s control. This presentation does not imply that Danske Bank has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided. 17