Danske Bank Fact Book Q Fact Book Q Supplementary Information for Investors and Analysts. Unaudited. Updated: January 31, 2008

Transcription

1 Fact Book Q Supplementary Information for Investors and Analysts Unaudited Updated: January 31,

2 Table of contents 1.1. Financial goals Share Data Ratings Changes in accounting principles and presentation 6 2. Financial statistics 2.1. Income statement - Danske Bank Group Breakdown of income Breakdown of expenses Balance sheet Breakdown of balance sheet Key ratios Business segments and key statistics 3.1. Banking Activities Banking Activities Denmark Banking Activities Finland Banking Activities Sweden Banking Activities Norway Banking Activities Northern Ireland Banking Activities Ireland Banking Activities Baltics Other Banking Activities Mortgage Finance Danske Markets Danske Capital Danica Pension Other areas Macroeconomics 4.1.Tables and charts 42 2

3 Fact Book Q This publication is meant as a supplement to the information published in the quarterly interim reports and the annual report. Additional information can be found on For further information, please contact: Financial calendar Tonny Thierry Andersen, Bankdirektør, CFO Direct: Mobile: tonan@danskebank.dk Date April 29, 2008 August 7, 2008 Event & location Quarterly report first quarter Interim report Martin Gottlob, Head of Investor Relations Direct: Mobile: mgot@danskebank.dk October 28, 2008 Quarterly report first nine months Lars Holm, Senior IR Officer Direct: Mobile: laho@danskebank.dk Heidi Sørensen, IR assistant Direct: Fax: heis@danskebank.dk Disclaimer This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offers to purchase or sell any securities, currency or financial instrument. Whilst reasonable care has been taken to ensure that the contents of this publication are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff may perform business services, hold, establish, change or cease to hold positions in any securities, currency or financial instrument mentioned in this publication. The Danske Bank Groups research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Bank is regulated by the FSA for the conduct of investment business in the UK and is a member of the London Stock Exchange. Copyright 2008 Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission. 3

4 1.1. Financial goals The Group bases its capital management on a set of overall capital targets. The table below shows the targets for the fourth quarter of 2007 as well as the realised ratios. Financial goals Target Realised Q CRD target (%) (%) % Core (tier 1) capital ratio (ex hybrid core capital) Hybrid core capital Solvency ratio Expected payout ratio Dividends and share buybacks If the Group has surplus capital above its target that is not needed for future growth, its policy is to return this surplus to the shareholders through share buybacks. The total amount of dividends and share buybacks since 2000 can be seen in the table below. Total distribution (DKr m) Dividends 5,940 5,416 6,383 5,277 4,661 3,477 3,477 3,382 Share buybacks ,000 5,000 3,000-4,999 Total 5,940 5,416 6,383 10,277 9,661 6,477 3,477 8,381 Net profit for the year 14,870 13,545 12,685 9,226 9,286 8,242 8,713 6,304 Total as % of the net profit for the year 40% 40% 50% 111% 104% 79% 40% 133% * In November 2006, shareholders equity was raised by DKr14.5bn in connection with the acquisition of Sampo Bank. The dividend of 40% has been calculated on the basis of the increased share capital at the end of Share data The Danske Bank Group is the largest financial services organisation in Denmark. The average daily trading volume of Danske Bank shares in the fourth quarter of 2007 was DKr 520m. With a total trading volume of Dkr 166.7bn, the Danske Bank share was the second most actively traded share on the Copenhagen Stock Exchange in At the end of 2007, there were 698,804,276 shares at a nominal value of DKr10 per share. Danske Bank shares are negotiable, and no special rights are attached to them. No shareholder is obligated to redeem shares in full or in part. The shares are issued to the bearer, but they can be registered by name in the Banks register of shareholders. No. of shares Year 2007 Issued shares at January 1 698,804,276 Buyback programme, preceding year - Issued shares, preceding year - Issued shares at December ,804,276 The Group's trading portfolio of own shares 8,823,904 The Group's investments in own shares on customers' behalf 6,377,122 Shares outstanding at December ,603,250 Average number of shares outstanding, Q1-Q4 683,990,019 4

5 1.3. Ratings Danske Bank rating overview The agencies each use their own rating scales, on which the highest possible ratings are AAA and Aaa (see the table below). Ratings in the A categories are considered "investment grade", indicating only a marginal risk that the issuer will go default. The Danske Bank Group is currently rated by the three large international credit rating agencies: Moody's, Standard & Poor's and Fitch Ratings. Moody s Standard & Poor s S&P s Insurer Financial Strength Fitch Short term Long term Short term Long term Long term Short term Long term P-1 Aaa A-1+ AAA AAA F1+ AAA P-2 Aa1 A-1 AA+ AA+ F1 AA+ P-3 Aa2 A-2 AA AA F2 AA Aa3 A-3 AA- AA- F3 AA- A1 A+ A+ A+ A2 A A A A3 A- A- A- Baa1 BBB+ BBB+ BBB+ Baa2 BBB BBB BBB Baa3 BBB- BBB- BBB- 5

6 1.4. Changes in accounting principles and presentation Changes in accounting principles The Group has not changed its accounting principles from those presented in the Fact Book Q Changes in presentation In November 2006, the Danske Bank Group entered into an agreement to buy all shares of the Finnish Sampo Bank. The acquisition was approved on January 30, 2007, and effected on February 1, 2007, from which date the Sampo Bank group was consolidated in the accounts of Danske Bank. Due to the acquisition of Sampo Bank, beginning the first quarter of 2007, the Groups reporting was expanded with two segments Banking Activities Finland and Banking Activities Baltics. Comparative figures in the financial reporting on the activities of Finland, the Baltic countries, Danske Markets, Danske Capital and Other Areas have been restated on a pro forma basis to include the financial results of the Sampo Bank group as of February 1, The breakdown of expenses under 2.1 Income statement does not match the expenses allocated to the business areas, as integration expenses incurred by the business areas are stated separately. Comparative figures have been restated. 6

7 Financial statistics 7

8 2.1. Income statement Danske Bank Group Full year Full year Income statement (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Net interest income 6,252 6,231 6,053 5,724 6,204 5,775 5,593 5,038 24,260 22,610 Hereof amortisation of loans and deposits* Financing ,663 1,392 Investment ,728 1,684 Services Fees generated by activities ,501 3,214 Financing Investment ,480 1,653 Services ,554 1,995 Fees generated by portfolios 1,350 1,342 1,355 1,240 1, ,287 4,087 Net fee income, Sampo ,576 Net fee income, total 2,226 2,166 2,214 2,182 2,351 2,057 2,230 2,239 8,788 8,877 Net trading income 1,694 1,990 2,310 1,893 1,632 1,868 1,672 2,108 7,887 7,280 Other income ,010 2,952 Net income from insurance business ,118 1,355 Total other income 2,746 2,845 3,347 3,077 3,073 3,369 2,287 2,858 12,015 11,587 Total income 11,224 11,242 11,614 10,983 11,628 11,201 10,110 10,135 45,063 43,074 Staff expenses 2,966 2,918 3,062 2,771 2,638 2,509 2,326 2,240 11,717 9,713 Severance pay Holiday payment** Bonuses , IT expenses ,828 2,152 Other expenses 1,500 1,231 1,306 1,190 1, ,171 1,065 5,227 4,294 Staff and administration expenses 5,598 5,099 5,742 5,050 4,469 4,058 4,351 4,261 21,489 17,139 Staff and administration expenses, Sampo ,711 Staff and administration expenses, total 5,598 5,099 5,742 5,050 5,331 4,705 5,075 4,739 21,489 19,850 Depreciation, intangibles , Depreciation, tangibles ,894 1,974 Other operating expenses Operating expenses*** 6,574 5,966 6,663 5,867 6,107 5,402 5,693 5,438 25,070 22,640 Hereof integration expenses Profit before credit loss expenses 4,650 5,276 4,951 5,116 5,521 5,799 4,417 4,697 19,993 20,434 Credit loss expenses Profit before tax 4,223 5,021 4,768 5,294 5,460 5,867 4,766 4,825 19,306 20,918 Tax 659 1, ,472 1,271 1,562 1,363 1,353 4,436 5,549 Net profit 3,564 3,677 3,807 3,822 4,189 4,305 3,403 3,472 14,870 15,369 Attributable to minority interests Net profit after minority interest 3,567 3,643 3,782 3,821 4,179 4,297 3,383 3,431 14,813 15,290 * The fair value of loans, advances and deposits in the opening balance sheet increased by DKr439m compared with the carrying amount of these items recognised before the acquisition. The effect of the value adjustment on interest income generated by Banking Activities Finland is a decrease of DKr169m in 2007 and DKr67m in each of the following four years. ** In Denmark, the second quarter was affected by the holiday payment in the week 6. *** See specificifaction in section The pro forma figures include the Sampo Bank group as of February

9 Breakdown of income Country distribution of net interest income Q Others, 3.1% Baltics, 2.9% Ireland, 13.3% Net interest income in Banking Activities, Denmark (YOY) Change in interest income in Banking Activities Denmark (DKr m) Q406 Change Q407 Net interest income 2,693 Loan volume 199 Loan margins -122 Deposit volume 66 Deposit margins -111 Other -30 Net interest income 2,695 Northern Ireland, 7.2% Finland, 5.2% Denmark, 50.5% Norway, 9.3% Sweden, 8.5% Q Baltics, 1.7% Others, 3.0% Ireland, 13.7% Northern Ireland, 7.3% Finland, 4.2% Denmark, 55.3% Norway, 8.1% Sweden, 6.7% The pro forma figures include the Sampo Bank group as of February

10 Money market rates Spreads % 8.00 BP Opdateres 40 Itraxx Main* Iboxx Covered** Danish mortgage bond*** Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 CIBOR 3 month STIBOR 3 month NIBOR 3 month Danish discount rate LIBOR 3 month EURIBOR 3 month * Index based on a basket of 5 year credit default swaps (CDS) for investment grade companies ** European Covered Bonds versus European swap rate *** Realkredit Danmark 4% 2012 mortgage bond versus DKK swap rate Source: Danske Markets 10

11 Interest income margins, Banking Activities Denmark, Sweden, Norway, Northern Ireland and Ireland Q406 Q107 Q207 Q307 Q407 Lending spread (1) (from Tom/next interest rate) (%) Denmark Lending spread (1) (from Tom/next interest rate) (%) Sweden Lending spread (1) (from Tom/next interest rate) (%) Norway Lending spread (1) (from Tom/next interest rate) (%) Northern Ireland Lending spread (1) (from Tom/next interest rate) (%) Ireland Q406 Q107 Q207 Q307 Q407 Deposit spread (2) (from Tom/next interest rate) (%) Denmark Deposit spread (2) (from Tom/next interest rate) (%) Sweden Deposit spread (2) (from Tom/next interest rate) (%) Norway Deposit spread (2) (from Tom/next interest rate) (%) Northern Ireland Deposit spread (2) (from Tom/next interest rate) (%) Ireland 11

12 Exchange rates (Cross currency: Danish krone (DKK)), end of period Exchange rate (end of period) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 Euro (EUR) US Dollars (USD) English pound (GBP) 1, , , , , , , , Swedish kroner (SEK) Norwegian kroner (NOK) Polish zloty (PLN) Estonian kroner (EEK) Latvian lats (LVL) 1, , , , , , , , Lithuanian litas (LTL) Net interest income Dkr m 6,500 5,200 3,900 2,600 1,300 0 Q406 Q107 Q207 Q307 Q407 The pro forma figures include the Sampo Bank group as of February

13 Net fee income Dkr m 2,500 2,000 1,500 1, Q406 Q107 Q207 Q307 Q407 Fees generated by activities Fees generated by portfolios Net fee income, Sampo The pro forma figures include the Sampo Bank group as of February As of Q1 2007, no specific net fee income for Sampo Bank is shown, as this has been included in fees generated by activities and portfolios. Total other income DKr m 4,000 3,200 2,400 1, Q406 Q107 Q207 Q307 Q407 Net trading income Other income Net income from insurance business The pro forma figures include the Sampo Bank group as of February

14 Breakdown of expenses Operating expenses Full year Full year DKr m Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Operating expenses 6,574 5,966 6,663 5,867 6,107 5,402 5,693 5,438 25,070 22,640 Amortisation intangibles Banking activities Finland Banking activities Northern Ireland Banking activities Ireland Danske Markets Danske Capital Amortisation, intangibles, total , Integration expenses Banking activities Denmark Banking activities Finland Banking activities Northern Ireland Banking activities Ireland Banking activities Baltics Other areas Integration expenses, total , Total expenses, ex amortisation of intangible assets and integration expenses 6,033 5,383 6,052 5,456 5,883 5,206 5,294 5,092 22,924 21,475 The pro forma figures include the Sampo Bank group as of February

15 Total IT expenses Full year Full year IT expenses (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Total IT expenses (development and operations) 1,118 1,035 1, ,272 3,002 Hereof IT integration expenses (development and operations) Total IT expenses/operating expenses, % Total IT expenses/profit before tax, % Total IT integration expenses/operating expenses, % Total IT integration expenses/profit before tax, % Note: Total IT expenses include costs related to software, hardware, internal IT staff, external IT consultants, rent on premises, depreciation, phone and MIPS, etc. Sampo Bank was consolidated in the accounts with effect from the first quarter of Comparative figures have not been restated. Full-time employees broken down by business area End of year End of year FTE - end of period Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Banking Activities Denmark 6,019 5,968 5,934 6,025 6,168 6,285 6,273 6,258 6,019 6,168 Banking Activities Finland 2,117 2,096 2,119 2,124 2,083 2,012 1,981 1,993 2,117 2,083 Banking Activities Sweden ,135 1,122 1,114 1, ,135 Banking Activities Norway 1,062 1,069 1,069 1,071 1,323 1,293 1,152 1,148 1,062 1,323 Banking Activities Northern Ireland 1,295 1,279 1,313 1,378 1,862 1,845 1,866 1,905 1,295 1,862 Banking Activities Ireland Banking Activities Baltics 1,304 1,296 1,212 1,158 1,046 1, ,304 1,046 Banking Activities Others Banking Activities total 13,736 13,673 13,623 13,735 14,707 14,694 14,472 14,483 13,736 14,707 Mortgage Finance Danske Markets Danske Capital Danica Pension Shared Services Center* 5,016 4,939 4,855 4,879 3,827 3,824 3,771 3,795 5,016 3,827 Others 1,929 1,942 1,954 1,989 2,035 2,080 2,153 2,121 1,929 2,035 Group total 23,632 23,670 23,535 23,650 23,546 23,588 23,311 23,289 23,632 23,546 * The large increase in full time employees from Q406 to Q107 is due to the transfer of employees from Sweden, Norway, Northern Ireland and Ireland to the Shared Services Center. The pro forma figures include the Sampo Bank group as of February

16 2.2. Balance sheet End of year End of year Balance sheet (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Cash in hand and demand deposits with central banks 13,861 13,524 18,934 17,594 25,158 28,850 22,731 39,095 13,861 25,158 Due from credit institutions and central banks 345, , , , , , , , , ,817 Trading portfolio assets 652, , , , , , , , , ,308 Financial investment securities 37,651 33,309 32,728 26,124 28,970 32,272 26,819 32,320 37,651 28,970 Assets held for sale , ,796 Repo lending 287, , , , , , , , , ,555 Bank loans and advances (ex repo) 1,073,190 1,041, , , , , , ,750 1,073, ,970 Mortgage loans 627, , , , , , , , , ,584 Assets under pooled schemes and unit-linked investment contracts 40,758 38,792 40,215 39,006 39,602 37,945 36,540 37,501 40,758 39,602 Assets under insurance contracts 190, , , , , , , , , ,302 Holdings in associated undertakings 1, ,114 1,068 1,045 1,021 1,095 1,128 1,068 Intangible assets 29,296 29,780 30,093 30,391 7,869 8,055 8,073 8,098 29,296 7,869 Investment property 4,904 3,863 3,957 3,831 3,914 3,818 3,679 3,580 4,904 3,914 Tangible assets 9,312 8,638 8,643 8,658 8,525 8,078 8,087 7,918 9,312 8,525 Current tax assets Deferred tax assets Others 34,695 26,753 26,392 24,591 28,915 29,791 27,404 34,185 34,695 28,915 Other assets 36,020 27,706 27,124 25,258 29,597 30,379 28,092 34,908 36,020 29,597 Total assets 3,349,530 3,194,762 3,071,854 2,951,147 2,938,035 2,850,071 2,703,595 2,573,365 3,349,530 2,938,035 Due to credit institutions and central banks 677, , , , , , , , , ,142 Trading portfolio liabilities 331, , , , , , , , , ,304 Liabilities held for sale Repo deposits 125, , , , , , , , , ,044 Due to customers (ex repo) 798, , , , , , , , , ,142 Issued mortgage bonds 518, , , , , , , , , ,217 Deposits under pooled schemes and unit-linked investment contracts 50,260 48,143 48,298 47,553 46,983 44,603 42,731 43,863 50,260 46,983 Liabilities under insurance contracts 213, , , , , , , , , ,793 Other issued bonds 402, , , , , , , , , ,761 Provisions 2,010 2,152 2,199 2,159 2,620 2,650 2,972 3,098 2,010 2,620 Current tax liabilities 1,142 2,386 1,340 1, ,017 1, , Deferred tax liabilities 3,397 3,243 3,324 3,325 2,046 1,823 1,764 1,722 3,397 2,046 Others 61,941 53,536 52,965 46,409 61,059 57,405 56,504 48,123 61,941 61,059 Other liabilities 68,490 61,317 59,828 52,925 66,264 64,895 63,041 53,901 68,490 66,264 Subordinated debt 59,025 56,583 57,391 62,120 56,325 48,017 47,832 48,175 59,025 56,325 Total liabilities 3,245,175 3,093,412 2,974,375 2,857,459 2,842,863 2,773,192 2,630,133 2,503,014 3,245,175 2,842,863 Share capital 6,988 6,988 6,988 6,988 6,988 6,383 6,383 6,383 6,988 6,988 Foreign currency translation Proprosed dividend 5, , ,940 5,416 Profit brought forward 91,325 94,223 90,415 86,645 82,713 70,440 67,029 63,933 91,325 82,713 Minority interests Shareholders' equity 104, ,350 97,479 93,688 95,172 76,879 73,462 70, ,355 95,172 Total liabilities and equity 3,349,530 3,194,762 3,071,854 2,951,147 2,938,035 2,850,071 2,703,595 2,573,365 3,349,530 2,938,035 Risk-weighted items (avg.) (Group) 1,269,491 1,194,683 1,184,313 1,182,191 1,197,993 1,153,106 1,114,492 1,069,817 1,207,873 1,134,256 Risk-weighted items (end of period) (Group) 1,312,906 1,259,820 1,193,507 1,137,443 1,252,645 1,186,466 1,152,488 1,097,825 1,312,906 1,252,645 The pro forma figures include the Sampo Bank group as of February

17 Breakdown of balance sheet Lending portfolio broken down by segment Lending portfolio breakdown, end of period End of year End of year Volume (DKr bn) Segment Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Banking Activities Denmark Retail Hereof bank loans secured on real property Corporate Banking Activities Finland Retail Corporate Banking Activities Sweden Retail Corporate Banking Activities Norway Retail Corporate Banking Activities Northern Ireland* Retail Corporate Banking Activities Ireland* Retail Corporate Banking Activities Baltics Retail Corporate Danske Markets Retail Corporate Other business segments Retail Corporate Bank lending total (ex repos) Retail Corporate Repos, total Retail Corporate Mortgage finance lending total Retail Corporate Lending total Retail Corporate 1, , , , , , , , ,079.6 Total lending 1, , , , , , , , , ,814.1 * After the conversion at Easter 2006, a new method of grouping customers into retail customers and corporate customers was introduced in Northern Bank and National Irish Bank. The improved method affects the figures for retail and corporate customers from the first half of In addition, the method resulted in the transfer of deposits with National Irish Bank of DKr5bn to Danske Markets. The pro forma figures include the Sampo Bank group as of February

18 Deposit portfolio broken down by segment Deposit portfolio breakdown, end of period End of year End of year Volume (DKr bn) Segment Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Banking Activities Denmark Retail Corporate Banking Activities Finland Retail Corporate Banking Activities Sweden Retail Corporate Banking Activities Norway Retail Corporate Banking Activities Northern Ireland* Retail Corporate Banking Activities The Republic of Ireland* Retail Corporate Banking Activities Baltics Retail Corporate Danske Markets Retail Corporate Other business segments Retail Corporate Bank deposits total (ex repos) Retail Corporate Repos, total Retail Corporate Deposits total Retail Corporate Total deposits Pooled schemes * After the conversion at Easter 2006, a new method of grouping customers into retail customers and corporate customers was introduced in Northern Bank and National Irish Bank. The improved method affects the figures for retail and corporate customers for the first half of In addition, the method resulted in the transfer of deposits with National Irish Bank of DKr5bn to Danske Markets. The pro forma figures include the Sampo Bank group as of February

19 Bank lending, retail Q407 Bank lending, corporate Q407 Northern Ireland 4% Norway 13% Ireland 7% Baltics 3% Others 3% Denmark 36% Baltics 2% Ireland 6% Northern Ireland 6% Danske Markets 9% Others 4% Denmark 33% Sweden 14% Bank deposits, retail Q407 Finland 20% Norway 12% Bank deposits, corporate Q407 Sweden 16% Finland 12% Ireland 5% Northern Ireland 10% Norway 5% Baltics 1% Others 2% Danske Markets 35% Others 2% Denmark 27% Sweden 6% Denmark 56% Finland 11% Finland 15% Baltics 2% Ireland 2% Northern Ireland 5% Norway 8% Sweden 8% 19

20 Impairment charges and non-performing loans Impairment charges and non-performing loans Full year Full year (Danske Bank Group) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Accumulated impairment charges (DKr bn end period)* Non performing loans (Dkr bn end period) Impairment charges as % of loans and guarantees p.a Accumulated impairment charges as % of loans and guarantees Credit loss expenses coverage ratio** * Impairment charges against loans, advances and gurantees. ** Accumulated impairment charges as % of non performing loans. Sampo Bank was consolidated in the accounts with effect from the first quarter of Comparative figures have not been restated. Change in accumulated impairment charges Change in accumulated impairment charges (DKr m) Accumulated impairment charges beg ,204 Impairment charges 3,965 Reversals of impairment charges 3,166 Currency effect -10 Earlier impairment charges now written off 875 Other inflows and outflows 782 Accumulated impairment charges, end Q407 4,900 Expected loss Expected loss (basis points of avg. loans and guarantees) Banking Activities, Denmark Banking Activities, Norway Banking Activities, Sweden Banking Activities, Northern Ireland Banking Activities, Ireland Banking Activities, UK Banking Activities, US Banking Activities, Other Mortgage Finance Danske Markets Danica Pension Danske Capital Group total (ex Sampo Bank)

21 2.3. Key ratios Full year Full year Key ratios Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Net profit for the period per share, DKr Diluted net profit for the period per share, DKr Net profit for the period as % p.a. of average shareholders' equity Cost/income ratio for the period, % Solvency ratio, incl. net profit for the period, % Core (tier 1) capital ratio, excl. hybrid core capital, % Core (tier 1) capital ratio, % Risk-weighted items, end of period (DKr bn) 1,313 1,260 1,194 1,137 1,119 1,053 1, ,313 1,119 Share price end of period, DKr Book value per share end of period, DKr Full-time-equivalent staff, end of period* 23,632 23,670 23,535 23,650 23,546 23,588 23,311 23,289 23,632 23,546 Price/earnings, end of period Dividend per share, DKr Dividend yield, % Pay-out ratio, % Shares outstanding, end of period (m) Issued shares, end of period (m) Share price/book value per share end of period Market capital, end of period, DKr m 136, , , , , , , , , ,027 For 2006, the key ratios are calculated in accordance with the Group's organisation and capital structure prior to the acquisition of the Sampo Bank group. * The pro forma figures include the Sampo Bank group as of February

22 Cost/income ratio, % Earnings per share, DKr Return on equity (after tax) p.a., % Total assets, Dkr bn ,750 3,000 2,250 1,826 2,052 2,432 2,938 3, , * As of 2004 the figures are presented in accordance with IFRS. *The pro forma figures include the Sampo Bank group as of February

23 Business segments and key statistics 23

24 3.1. Financial performance, Banking Activities Banking Activities encompasses all banking activities in Danske Bank Group.. Full year Full year Banking Activities (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Net interest income 5,731 5,637 5,411 4,943 5,418 5,127 4,874 4,324 21,722 19,743 Hereof amortisation of loans and deposits* ,210 - Net fee income 1,961 1,934 1,984 1,928 1,980 1,812 1,980 2,003 7,807 7,775 Net trading income ,279 1,201 Other income ,361 2,083 Total income 8,720 8,437 8,276 7,736 8,314 7,751 7,655 7,082 33,169 30,802 Amortisation of intangible assets , Integration expenses , Staff cost ex bonuses 1,741 1,663 1,768 1,671 1,567 1,461 1,614 1,537 6,843 6,179 Bonuses Other costs 2,795 2,469 2,842 2,515 2,188 1,991 1,993 1,987 10,621 8,159 Operating expenses BA Finland and BA Baltic ,808 Operating expenses 5,165 4,786 5,355 4,580 4,913 4,387 4,801 4,416 19,886 18,517 Profit before credit loss expenses 3,555 3,651 2,921 3,156 3,401 3,364 2,854 2,666 13,283 12,285 Credit loss expenses Profit before tax 3,116 3,413 2,746 3,324 3,284 3,245 3,127 2,775 12,599 12,431 Loans and advances, end of period 1,009, , , , , , , ,903 1,009, ,334 Deposits, end of period 607, , , , , , , , , ,788 Risk-weighted items (avg.) 885, , , , , , , , , ,845 Allocated capital (avg.) 48,704 46,923 45,111 44,051 49,489 48,170 46,094 43,851 46,212 46,920 Profit before credit loss expenses as % p.a. of allocated capital Pre-tax profit as % p.a. of allocated capital (ROE) Cost/income ratio Cost/income ratio, excluding total integration expenses, % No. of full-time employees (end of period) 13,736 13,673 13,623 13,735 14,707 14,694 14,472 14,483 13,736 14,707 * The fair value of loans, advances and deposits in the opening balance sheet increased by DKr439m compared with the carrying amount of these items recognised before the acquisition. The effect of the value adjustment on interest income generated by Banking Activities Finland is a decrease of DKr169m in 2007 and DKr67m in each of the following four years. The pro forma ratios and key figures include the Sampo Bank group as of February

25 Financial performance, Denmark Banking Activities Denmark encompasses the banking activities of Danske Bank in Denmark. Danske Bank caters to all types of retail and corporate customers. Danske Banks finance centres serve large corporate and private banking customers. Banking Activities Denmark has nine regions with 399 branches, six agricultural centres, nine finance centres and 6,019 employees. Full year Full year Banking Activities Denmark (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Net interest income 2,695 2,698 2,612 2,552 2,693 2,555 2,437 2,283 10,557 9,968 Net fee income 1,103 1,118 1,145 1,208 1,149 1,074 1,230 1,360 4,574 4,813 Net trading income Other income Total income 3,994 4,013 3,947 3,944 4,003 3,791 3,841 3,835 15,898 15,470 Integration expenses Staff cost ex bonuses ,278 3,337 Bonuses Other costs 1,218 1,066 1,217 1,096 1,200 1,069 1,062 1,104 4,597 4,435 Operating expenses 2,105 1,945 2,155 1,977 2,054 1,878 1,962 1,975 8,182 7,869 Profit before credit loss expenses 1,889 2,068 1,792 1,967 1,949 1,913 1,879 1,860 7,716 7,601 Credit loss expenses Profit before tax 1,860 2,123 1,637 2,272 1,865 1,854 2,006 2,039 7,892 7,764 Loans and advances, end of period 357, , , , , , , , , ,943 Deposits, end of period 299, , , , , , , , , ,117 Risk-weighted items (avg.) 330, , , , , , , , , ,097 Allocated capital (avg.) 18,176 17,882 17,400 17,102 19,211 18,991 18,274 17,363 17,644 18,466 Profit before credit loss expenses as % p.a. of allocated capital Pre-tax profit as % p.a. of allocated capital (ROE) Cost/income ratio Cost/income ratio, excluding integration expenses, % Lending spread (1) (from Tom/next interest rate) (%)* Deposit spread (2) (from Tom/next interest rate) (%) Margin (1+2) (%) Market share, lending (%) (end of period) (retail)** Market share, lending (%) (end of period) (corporate)** Market share, lending (%) (end of period) (total)** Market share, deposits (%) (end of period) (retail)** Market share, deposits (%) (end of period) (corporate)** Market share, deposits (%) (end of period) (total)** No. of full-time employees (end of period) 6,019 5,968 5,934 6,025 6,168 6,285 6,273 6,258 6,019 6,168 No. of branches (end of period) No. of customers (m) (end of period)*** Customer packages (000s) (end of period)***/**** No. of ebanking customers (000s) (end of period)***** 1,051 1, , * Part of the fall in the lending margin from the fourth quarter of 2006 to the first quarter of 2007 is attributable to organisational changes. ** Based on sector numbers published by the Central Bank of Denmark (Danmarks Nationalbank). *** Beginning in the first half of 2006, a new customer count measure has been used. The change of the measure resulted in a change in the figures for the first half of Comparative figures have not been restated. **** Customer packages are bundled products. Products in a customer package include: Visa card, American Express, MasterCard, competitive interest on loans and deposits and Internet banking. ***** Consists only of active ebanking customers. 25

26 Financial performance, Finland Banking Activities Finland encompasses the banking activities of Sampo Bank in Finland and Danske Banks Helsinki Branch. Sampo Bank, which is the third-largest bank in Finland, caters to retail customers, small and medium-sized businesses and institutional clients Sampo Bank has 121 branches in Finland and 2,117 employees. Full year Full year Banking Activities Finland (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Net interest income ,013 2,948 Hereof amortisation of loans and deposits* Net fee income ,210 1,144 Net trading income Other income Total income 1,254 1,214 1, ,272 1,183 1, ,469 4,370 Amortisation of intangible assets Integration expenses Staff cost ex bonuses Bonuses Other costs ,522 - Operating expenses ,383 2,479 Profit before credit loss expenses ,086 1,891 Credit loss expenses Profit before tax ,968 Profit before tax in local currency Loans and advances, end of period 164, , , , , , , , , ,803 Deposits, incl. pooled deposits, end of period 96,515 93,705 88,956 84,624 89,293 86,752 87,488 80,968 96,515 89,293 Risk-weighted items (avg.) 138, , , , , , , , , ,405 Allocated capital (avg.) 7,639 7,257 7,297 7,300 8,407 8,373 8,298 8,043 7,374 8,281 Profit before credit loss expenses as % p.a. of allocated capital Pre-tax profit as % p.a. of allocated capital (ROE) Cost/income ratio Cost/income ratio, excluding total integration expenses, % Market share, lending (%) (end of period)** Market share, deposits (%) (end of period)** No. of branches (end of period) No. of customers (000s) (end of period) 1,180 1,171 1,171 1,169 1,170 1,167 1,164 1,161 1,180 1,170 No. of ebanking customers (000s) (end of period)*** No. of full-time employees (end of period) 2,117 2,096 2,119 2,124 2,083 2,012 1,981 1,993 2,117 2,083 * The fair value of loans, advances and deposits in the opening balance sheet increased by DKr439m compared with the carrying amount of these items recognised before the acquisition. The effect of the value adjustment on interest income generated by Banking Activities Finland is a decrease of DKr169m in 2007 and DKr67m in each of the following four years. ** Market shares Q are calculated as of end of August *** Consists only of active ebanking customers. The pro forma ratios and key figures include the Sampo Bank group as of February

27 Financial performance, Sweden Banking Activities Sweden encompasses the banking activities of Östgöta Enskilda Bank and Provinsbankerne in Sweden, which serve all types of retail and corporate customers. Real-estate agency business is carried out primarily through the 75 offices of Skandia Mäklarna. Banking Activities Sweden has four regions with 59 branches, four finance centres and 912 employees. Full year Full year Banking Activities Sweden (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Net interest income ,113 1,812 Net fee income Net trading income Other income Total income ,924 2,544 Staff cost ex bonuses Bonuses Other costs Operating expenses ,495 1,460 Profit before credit loss expenses ,429 1,084 Credit loss expenses Profit before tax ,360 1,013 Profit before tax in local currency ,688 1,253 Loans and advances, end of period 161, , , , , , , , , ,454 Deposits, end of period 57,368 53,018 51,178 47,345 50,062 45,917 44,537 39,472 57,368 50,062 Risk-weighted items (avg.) 134, , , , , , ,850 96, , ,104 Allocated capital (avg.) 7,396 6,940 6,499 6,511 7,465 7,153 6,685 6,268 6,839 6,897 Profit before credit loss expenses as % p.a. of allocated capital Pre-tax profit as % p.a. of allocated capital (ROE) Cost/income ratio Lending spread (1) (from Tom/next interest rate) (%) Deposit spread (2) (from Tom/next interest rate) (%) Margin (1+2) (%) Market share (lending) (%) (end of period)* Market share (retail deposits) (%) (end of period) No. of branches (end of period) No. of customers (000s) (end of period)** No. of ebanking customers (000s) (end of period)*** No. of full-time employees (end of period) ,135 1,122 1,114 1, ,135 * Total market incl. property finance. ** Beginning in the first half of 2006, a new customer count measure has been used. The change of the measure resulted in a change in the figures from the first half of Comparative figures have not been restated. *** Consists only of active ebanking customers. 27

28 Financial performance, Norway Banking Activities Norway encompasses the banking activities of Fokus Bank in Norway. Fokus Bank serves all types of retail and corporate customers. Banking Activities Norway has five regions with 55 branches, Banking Activities Norway encompasses the banking activities of Fokus Bank in Norway, which serves all types of retail and corporate customers. Retail-estate agency business is carried out through the 40 offices of Fokus Krogsveen Nylander. Banking Activities Norway has five regions with 55 branches, five finance centres and 1,062 employees. Full year Full year Banking Activities Norway (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Net interest income ,887 1,567 Net fee income Net trading income Other income Total income ,803 2,406 Staff cost ex bonuses Bonuses Other costs Operating expenses ,618 1,552 Profit before credit loss expenses , Credit loss expenses Profit before tax , Profit before tax in local currency , Loans and advances, end of period 136, , , , , ,610 96,718 90, , ,319 Deposits, end of period 57,624 57,737 57,482 48,506 46,667 40,385 44,447 40,344 57,624 46,667 Risk-weighted items (avg.) 111,151 99,831 93,077 88,106 83,573 80,246 73,450 69,579 98,109 76,760 Allocated capital (avg.) 6,113 5,491 5,119 4,846 5,432 5,216 4,774 4,523 5,396 4,989 Profit before credit loss expenses as % p.a. of allocated capital Pre-tax profit as % p.a. of allocated capital (ROE) Cost/income ratio Lending spread (1) (from Tom/next interest rate) (%) Deposit spread (2) (from Tom/next interest rate) (%) Margin (1+2) (%) Market share (lending) (%) (end of period) Market share (deposits) (%) (end of period) No. of branches (end of period) No. of customers (000s) (end of period)* No. of ebanking customers (000s) (end of period)** No. of full-time employees (end of period) 1,062 1,069 1,069 1,071 1,323 1,293 1,152 1,148 1,062 1,323 * Beginning in the first half of 2006, a new customer count measure has been used. The change of the measure resulted in a change in the figures for the first half of Comparative figures have not been restated. ** Consists only of active ebanking customers. 28

29 Financial performance, Northern Ireland Banking Activities Northern Ireland encompasses the banking activities of Northern Bank, which serves both retail and corporate customers. Banking Activities Northern Ireland has four regions with 94 branches and 1,295 employees. Full year Full year Banking Activities Northern Ireland (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q Net interest income ,831 1,702 Net fee income Net trading income Other income Total income ,446 2,293 Amortisation of intangible assets Integration expenses Staff cost ex bonuses Bonuses Other costs Operating expenses ,108 2,353 Profit before credit loss expenses Credit loss expenses Profit before tax Profit before tax in local currency Loans and advances, end of period 58,803 60,845 60,677 56,070 58,442 57,372 52,851 41,654 58,803 58,442 Deposits, end of period 56,303 59,845 60,601 56,856 60,969 59,379 54,351 41,708 56,303 60,969 Risk-weighted items (avg.) 45,921 47,787 44,225 42,371 38,569 37,138 38,949 39,263 45,093 38,474 Allocated capital (avg.) 2,526 2,628 2,432 2,330 2,507 2,414 2,532 2,552 2,480 2,501 Profit before credit loss expenses as % p.a. of allocated capital Pre-tax profit as % p.a. of allocated capital (ROE) Cost/income ratio Cost/income ratio, excluding total integration expenses, % Lending spread (1) (from Tom/next interest rate) (%) Deposit spread (2) (from Tom/next interest rate) (%) Margin (1+2) (%) Market share (retail) (%) (end of period)* Market share (corporate) (%) (end of period)* No. of branches (end of period) No. of customers (000s) (end of period) No. of ebanking customers (000s) (end of period)** No. of full-time employees (end of period) 1,295 1,279 1,313 1,378 1,862 1,845 1,866 1,905 1,295 1,862 * The market shares of Northern Bank are not calculated in the same way as the market shares of the other retail banks because there is no central bank for Northern Ireland alone. ** Consists only of active ebanking customers. 29