Danske Bank Fact Book Q Fact Book Q Supplementary Information for Investors and Analysts. Unaudited. Updated: April 29, 2008

Transcription

1 Fact Book Q Supplementary Information for Investors and Analysts Unaudited Updated: April 29,

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 Banking Activities Denmark Breakdown of loans in Realkredit Danmark Banking Activities Finland Banking Activities Sweden Banking Activities Norway Banking Activities Northern Ireland Banking Activities Ireland Banking Activities Baltics Other Banking Activities Danske Markets Danske Capital Danica Pension Other areas Macroeconomics 4.1.Tables and charts 37 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, Chief Financial Officer Direct: Mobile: tonan@danskebank.com Martin Gottlob, Head of Investor Relations Direct: Mobile: mgot@danskebank.com Date August 7, 2008 October 28, 2008 Event & location Q2 report Q3 report Lars Holm, Senior IR Officer Direct: Mobile: laho@danskebank.com 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 as well as the realised ratios. Financial goals March 31, 2008 January 1, 2008 Target % Core (tier 1) capital ratio Min. 7,5 Solvency ratio Min. 11 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 first quarter of 2008 was DKr 534m. With a total trading volume of DKr 32,6bn, the Danske Bank share was the second most actively traded share on the Copenhagen Stock Exchange in the first quarter of At the end of the first quarter in 2008, 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 2008 Issued shares at January 1 698,804,276 Buyback programme, preceding year - Issued shares, preceding year - Issued shares at March ,804,276 The Group's trading portfolio of own shares 8,089,441 The Group's investments in own shares on customers' behalf 6,206,157 Shares outstanding at March ,508,678 Average number of shares outstanding, Q ,448,755 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 significant accounting policies from those presented in the Fact Book Q Change in financial highlights The Other Areas business area previously covered capital costs, including costs for subordinated debt and long-term funding. Beginning in the first quarter of 2008, these costs are allocated to the relevant business areas of the Group. The reason being that the financial turmoil has highlighted the impact on the Groups fundingcosts. As such, this should be visible and transparent in the various business areas performance as they are operated and monitored as separate business areas. Moreover, income and costs relating to CDS transactions hedging the credit risk of a portfolio of mortgage loans are allocated to Danske Markets, Group Treasury. For the first quarter of 2008, this change raises net interest income by DKr58m and net fee income by DKr92m, but lowers net trading income by DKr150m. Comparative figures have been restated, with the following results: an increase in net interest income of DKr131m, an increase in net fee income of DKr378m and a decrease in net trading income of DKr509m for Accordingly, Other Areas now only comprises income and expenses relating to real property, Group support functions and the elimination of returns on own shares and bonds. Change in segmentation On January 1, 2008, the Group merged the presentation of its Mortgage Finance and Banking Activities Denmark business areas. In future, the presentation of the financial results of the Groups mortgage finance operations in Denmark will correspond to the presentation of results for such activities outside Denmark. Non-performing loans consists in Q of doubtful and non-performing exposures for which objective evidence of impairment has emerged (rating category 9 and 10). In prior reporting non-performing loans consisted of non-interest-bearing loans. Comparative figures for 2007 has been adjusted. 6

7 Financial statistics 7

8 2.1. Income statement Danske Bank Group Year to date Full year Income statement (DKr m) Q108 Q407 Q307 Q207 Q Net interest income 6,236 6,320 6,267 6,074 5,730 6,236 24,391 Hereof amortisation of loans and deposits* Financing ,663 Investment ,728 Services Fees generated by activities ,501 Financing Investment ,480 Services ,554 Fees generated by portfolios 1,480 1,454 1,441 1,477 1,293 1,480 5,665 Net fee income, total 2,213 2,330 2,265 2,336 2,235 2,213 9,166 Net trading income 1,358 1,522 1,855 2,167 1,834 1,358 7,378 Other income 1, ,037 3,010 Net income from insurance business ,118 Total other income 1,830 2,574 2,710 3,204 3,018 1,830 11,506 Total income 10,279 11,224 11,242 11,614 10,983 10,279 45,063 Staff expenses 3,057 2,966 2,918 3,062 2,771 3,057 11,717 Severance pay Holiday payment** Bonuses ,265 IT expenses ,828 Other expenses 1,188 1,500 1,231 1,306 1,190 1,188 5,227 Staff and administration expenses, total 5,448 5,598 5,099 5,742 5,050 5,448 21,489 Depreciation, intangibles ,640 Depreciation, tangibles ,894 Other operating expenses Operating expenses*** 6,323 6,574 5,966 6,663 5,867 6,323 25,070 Hereof integration expenses Profit before credit loss expenses 3,956 4,650 5,276 4,951 5,116 3,956 19,993 Credit loss expenses Profit before tax 3,414 4,223 5,021 4,768 5,294 3,414 19,306 Tax , , ,436 Net profit 2,567 3,564 3,677 3,807 3,822 2,567 14,870 Attributable to minority interests Net profit after minority interest 2,566 3,567 3,643 3,782 3,821 2,566 14,813 * 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, second quarter affected by 6 th week Holiday payment. *** See specificifaction hereof in section Figures include the Sampo Bank Group as of February

9 Breakdown of income Country distribution of net interest income Money market rates Net interest income distribution, Q Northern Ireland, 6.4% Finland, 12.8% Others, 1.7% Baltics, 2.6% Ireland, 4.6% % Norway, 7.5% Sweden, 7.6% Denmark, 56.7% Net interest income distribution, Q Others, 2.2% 2.00 Baltics, 1.5% Ireland, 4.3% 1.00 Northern Ireland, 7.8% 0.00 Finland, 8.9% 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 Apr-08 Norway, 6.9% Sweden, 8.0% Denmark, 60.4% CIBOR 3 month STIBOR 3 month NIBOR 3 month Danish discount rate LIBOR 3 month EURIBOR 3 month 9

10 Interest income margins, Banking Activities Denmark, Sweden, Norway, Northern Ireland and Ireland Q107 Q207 Q307 Q407 Q Q107 Q207 Q307 Q407 Q108 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 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 Net interest income in Banking Activities (YOY) Historical net interest income in Banking Activities, Denmark (DKr m) Q107 Change Q108 Net interest income 3,450 Loan volume 149 Loan margins -102 Deposit volume 59 Deposit margins -44 Other 9 Net interest income 3,521 Historical net interest income in Banking Activities, Sweden (DKr m) Q107 Change Q108 Net interest income 459 Loan volume 52 Loan margins -25 Deposit volume 26 Deposit margins -4 Other -36 Net interest income 472 Historical net interest income in Banking Activities, Norway (DKr m) Q107 Change Q108 Net interest income 396 Loan volume 77 Loan margins -15 Deposit volume 23 Deposit margins 36 Other -49 Net interest income

11 Breakdown of expenses Operating expenses Year to date Full year (DKr m) Q108 Q407 Q307 Q207 Q Operating expenses 6,323 6,574 5,966 6,663 5,867 6,323 25,070 Amortisation, intangibles Banking Activities Finland Banking Activities Northern Ireland Banking Activities Ireland Danske Markets Danske Capital Amortisation, intangibles, total ,135 Integration expenses Banking Activities Denmark Banking Activities Finland Banking Activities Northern Ireland Banking Activities Ireland Banking Activities Baltics Other areas Integration expenses, total ,011 Total expenses, excl. Amortisation of intangible assets and integration expenses 5,895 6,033 5,383 6,052 5,456 5,895 22,924 Total IT expenses Year to date Full year IT expenses (DKr m) Q108 Q407 Q307 Q207 Q Total IT expenses (development and operations) 1,154 1,118 1,035 1, ,154 4,272 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 February

12 Full-time employees broken down by business area End of period End of year FTE - end of period Q108 Q407 Q307 Q207 Q Banking Activities Denmark 6,440 6,538 6,685 6,654 6,761 6,440 6,538 Banking Activities Finland* 2,412 2,308 2,283 2,294 2,299 2,412 2,308 Banking Activities Sweden Banking Activities Norway 1,065 1,062 1,069 1,069 1,071 1,065 1,062 Banking Activities Northern Ireland 1,302 1,295 1,279 1,313 1,378 1,302 1,295 Banking Activities Ireland Banking Activities Baltics 1,286 1,304 1,296 1,212 1,158 1,286 1,304 Banking Activities Others Banking Activities total 14,489 14,446 14,577 14,518 14,646 14,489 14,446 Danske Markets Danske Capital Danica Pension Shared services center 5,821 5,728 5,660 5,587 5,672 5,821 5,728 Others 1,037 1,026 1,034 1,047 1,021 1,037 1,026 Group total 23,719 23,632 23,670 23,535 23,650 23,719 23,632 * The change is due to additional staff regarding the migration. Exchange rates (cross currency: Danish krone), end of period Exchange rate (end of period) Q108 Q407 Q307 Q207 Q107 Euro (EUR) US dollar (USD) British pound sterling (GBP) , , , , Swedish krona (SEK) Norwegian krona (NOK) Polish zloty (PLN) Estonian kroon (EEK) Latvian lat (LVL) 1, , , , , Lithuanian litas (LTL)

13 2.2. Balance sheet End of period End of year Balance sheet (DKr m) Q108 Q407 Q307 Q207 Q Cash in hand and demand deposits with central banks 35,807 13,861 13,524 18,934 17,594 35,807 13,861 Due from credit institutions and central banks 350, , , , , , ,959 Trading portfolio assets 710, , , , , , ,137 Investment securities 42,685 37,651 33,309 32,728 26,124 42,685 37,651 Assets held for sale Repo lending 274, , , , , , ,223 Loans and advances (ex repo) 1,720,372 1,700,999 1,655,295 1,591,466 1,540,509 1,720,372 1,700,999 Assets under pooled schemes and unit-linked investment contracts 39,836 40,758 38,792 40,215 39,006 39,836 40,758 Assets under insurance contracts 186, , , , , , ,223 Holdings in associated undertakings 1,118 1, ,114 1,118 1,128 Intangible assets 29,064 29,296 29,780 30,093 30,391 29,064 29,296 Investment property 5,360 4,904 3,863 3,957 3,831 5,360 4,904 Tangible assets 9,001 9,312 8,638 8,643 8,658 9,001 9,312 Current tax assets 1, , Deferred tax assets Others 35,186 34,695 26,753 26,392 24,591 35,186 34,695 Other assets 36,929 36,020 27,706 27,124 25,258 36,929 36,020 Total assets 3,443,405 3,349,530 3,194,762 3,071,854 2,951,147 3,443,405 3,349,530 Due to credit institutions and central banks 597, , , , , , ,355 Trading portfolio liabilities 431, , , , , , ,547 Liabilities held for sale Repo deposits 133, , , , , , ,721 Due to customers (ex repo) 871, , , , , , ,274 Issued Realkredit Danmark bonds 502, , , , , , ,693 Deposits under pooled schemes and unit-linked investment contracts 47,273 50,260 48,143 48,298 47,553 47,273 50,260 Liabilities under insurance contracts 211, , , , , , ,419 Other issued bonds 436, , , , , , ,391 Provisions 1,747 2,010 2,152 2,199 2,159 1,747 2,010 Current tax liabilities 1,037 1,142 2,386 1,340 1,032 1,037 1,142 Deferred tax liabilities 3,395 3,397 3,243 3,324 3,325 3,395 3,397 Others 46,551 61,941 53,536 52,965 46,409 46,551 61,941 Other liabilities 52,730 68,490 61,317 59,828 52,925 52,730 68,490 Subordinated debt 57,830 59,025 56,583 57,391 62,120 57,830 59,025 Total liabilities 3,342,281 3,245,175 3,093,412 2,974,375 2,857,459 3,245,175 3,245,175 Share capital 6,988 6,988 6,988 6,988 6,988 6,988 6,988 Foreign currency translation Proprosed dividend - 5, ,940 Profit brought forward 94,108 91,325 94,223 90,415 86,645 94,108 91,325 Minority interests Shareholders' equity 101, , ,350 97,479 93, , ,355 Total liabilities and equity 3,443,405 3,349,530 3,194,762 3,071,854 2,951,147 3,443,405 3,349,530 Risk-weighted items (avg.) (Group)* 904,712 1,269,491 1,194,682 1,184,313 1,182, ,712 1,207,873 Risk-weighted items (end of period) (Group)* 904,017 1,312,906 1,259,820 1,193,507 1,137, ,017 1,312,906 * Figures for 2008 are calculated on the basis of the CRD rules; figures for 2007 are calculated on the basis of previous rules. Figures include the Sampo Bank Group as of February

14 Breakdown of balance sheet Lending portfolio broken down by segment Lending portfolio breakdown, end of period End of period End of year Volume (DKr bn) Segment Q108 Q407 Q307 Q207 Q Banking Activities, Denmark Retail Hereof bank mortgage secured in real property Hereof mortgage loans in Realkredit Danmark Corporate Hereof loans in Realkredit Danmark Banking Activities, Finland Retail Corporate Banking Activities, Sweden Retail Corporate Banking Activities, Norway Retail Corporate Banking Activities, Northern Ireland Retail Corporate Hereof public sector loans 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 Lending total Retail Corporate 1, , , , , , ,185.3 Total lending 1, , , , , , ,988.2 Figures include the Sampo Bank Group as of February

15 Deposit portfolio broken down by segment Deposit portfolio breakdown, end of period End of period End of year Volume (DKr bn) Segment Q108 Q407 Q307 Q207 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 Hereof public sector deposits Banking Activities, 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 1, , Issued Realkredit Danmark bonds* Pooled schemes *Net of elimination of the Group's own Realkredit Danmark bonds. Figures include the Sampo Bank Group as of February

16 Lending and deposit portfolio in Banking Activities broken down by geography Bank lending, retail Bank lending, corporate DKr bn QoQ: 0.6 % YoY: 5.3 % QoQ: 3.3 % YoY: 15.4 % DKr bn QoQ: 1.5 % YoY: 9.1 % QoQ: 3.3 % YoY: 23.9 % Q107 Q207 Q307 Q407 Q108 Denmark Activities outside Denmark 0 Q107 Q207 Q307 Q407 Q108 Denmark Activities outside Denmark DKr bn Bank deposits, retail QoQ: 1.8 % YoY: 7.9 % QoQ: 1.0 % YoY: 10.6 % Q107 Q207 Q307 Q407 Q108 Denmark Activities outside Denmark DKr bn Bank deposits, corporate QoQ: -5.6 % YoY: 9.9 % QoQ: 10.6 % YoY: 12.4 % Q107 Q207 Q307 Q407 Q108 Denmark Activities outside Denmark Activities outside Denmark include Finland, Sweden, Norway, Northern Ireland, Ireland and the Baltics. Lending for Denmark include mortgage loans in Realkredit Danmark. 16

17 Impairment charges and non-performing loans Impairment charges and non-performing bearing loans Year to date Full year (Danske Bank Group) Q108 Q407 Q307 Q207 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 Non-performing loans as % of loans and guarantees * Impairment charges against loans, advances and gurantees. **Non performing loans consists in Q of doubtful and non-performing exposures for which objective evidence of impairment has emerged (rating category 9 and 10). In prior factbooks non performing loans consisted of non-interest-bearing loans. Comparative figures for 2007 has been adjusted. Sampo Bank was consolidated in the accounts with effect from February Change in accumulated impairment charges Change in accumulated impairment charges (DKr m) Accumulated impairment charges beg ,900 New and increased impairment charges 1,373 Reversals of impairment charges 838 Foreign currency translation -6 Write-offs debited to allowance account 275 Other additions and disposals -1 Accumulated impairment charges, end Q108 5,153 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

18 2.3. Key ratios Year to date Full year Key ratios Q108 Q407 Q307 Q207 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, % Core (tier 1) capital ratio, excl. hybrid core capital, % Core (tier 1) capital ratio, % Loans and advances as a percentage of deposits incl. issued mortgage bonds, % Share price end of period, DKr Book value per share end of period, DKr Full-time-equivalent staff, end of period* 23,719 23,632 23,670 23,535 23,650 23,719 23,632 Price/earnings, end of period Dividend per share, DKr Dividend yield, % Pay-out ratio, % Outstanding shares, 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 119, , , , , , ,629 * Figures for 2008 are calculated on the basis of CRD rules; figures for 2007 are calculated on the basis of previous rules. Figures include the Sampo Bank Group as of February

19 Cost/income ratio, % Earnings per share, DKr Q Q108 Return on equity (after tax) p.a., % Total assets, DKr bn Q Q108 * As of 2004 the figures are presented in accordance with IFRS. *The pro forma figures include the Sampo Bank group as of February

20 Business segments and key statistics 20

21 Financial performance, Banking Activities Denmark Banking Activities Denmark encompasses the banking activities of Danske Bank in Denmark and Realkredit Danmark. 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 6,440 employees. Year to date Full year Banking Activities Denmark (DKr m) Q108 Q407 Q307 Q207 Q Net interest income 3,521 3,577 3,567 3,449 3,450 3,521 14,043 Hereof allocated financing costs Net fee income 971 1,022 1,026 1,058 1, ,234 Net trading income Other income Total income 4,773 4,940 4,884 4,788 4,847 4,773 19,459 Integration expenses Staff cost , ,869 Other costs 1,366 1,401 1,230 1,398 1,272 1,366 5,301 Operating expenses 2,365 2,413 2,229 2,459 2,273 2,365 9,374 Profit before credit loss expenses 2,408 2,527 2,655 2,329 2,574 2,408 10,085 Credit loss expenses Profit before tax 2,073 2,519 2,693 2,166 2,893 2,073 10,271 Loans and advances, end of period 1,000, , , , ,783 1,000, ,306 Deposits, end of period 316, , , , , , ,190 Issued Realkredit Danmark bonds, end of period* 611, , , , , , ,844 Risk-weighted items (avg.) 682, , , , , , ,023 Allocated capital (avg.) 37,552 35,514 34,653 34,130 33,625 37,552 34,486 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, % The presentations of Mortgage Finance and Banking Activities Denmark were merged on January 1, Comparative figures for 2007 have been restated. Danske Bank DK 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) 6,440 6,538 6,685 6,654 6,761 6,440 6,538 No. of branches (end of period) No. of customers (m) (end of period) Customer packages (000s) (end of period)*** 1, , No. of ebanking customers (000s) (end of period)**** 1,069 1,051 1, ,069 1,051 *Before elimination of the Group's own Realkredit Danmark bonds outside Banking Activities Denmark. ** Based on sector numbers published by the Central Bank of Denmark (Danmarks Nationalbank). Excluding Realkredit Danmark Bonds *** 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. 21

22 Breakdown of loans in Realkredit Danmark at March 31, 2008 Distribution of loan portfolio by outstanding bond debt Distribution of loan portfolio by loan-to-value ratios Share of portfolio in % More than 25 DKr m DKr m 2-10 DKr m 1-2 DKr m Less than 1 DKr m Share of portfolio in % > 80% 60-80% 40-60% 20-40% 0-20% 0 Private (61%) Share of total loan portfolio Realkredit Danmark loans Urban trade (13%) Agriculture (7%) Residential rental property (19%) Year to date Full year Mortgage finance book: Loans by property category (DKr bn) Q108 Q407 Q307 Q207 Q Private market Urban trade Agriculture Residential rental property Total loans, nominal value Fair value Lending spread, % Gross-lending (total market) (DKr bn)* Loan to value (end of period), % Market share (gross-lending) (%)* Market share, loan portfolio (%)* Euro loans as % of total gross lending FlexLån (floaters) as % of total stock of loans FlexLån (floaters) as % of gross lending FlexGaranti (floaters) as % of total stock of loans FlexGaranti (floaters) as % of gross lending RD Cibor6 as % of total stock of loans RD Cibor6 as % of gross lending Rating (Covered bond/longterm - S&P/Moody's) AAA/Aaa AAA/Aaa AAA/Aaa AAA/Aaa AAA/Aaa AAA/Aaa AAA/Aaa * Source: Realkreditrådet (Danish mortgage finance council) Private 61 % Share of total loan portfolio Urban Agriculture trade (13 %) (7 %) Residential rental property (19%)

23 Financial performance, Banking Activities 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 2,412 employees. Year to date Full year Banking Activities Finland (DKr m) Q108 Q407 Q307 Q207 Q Net interest income ,822 Hereof amortisation of loans and deposits* Hereof allocated financing costs Net fee income ,210 Net trading income Other income Total income 1,236 1,187 1,158 1, ,236 4,278 Amortisation of intangible assets Integration expenses Staff cost Other costs ,522 Operating expenses 1, ,049 3,383 Profit before credit loss expenses Credit loss expenses Profit before tax Profit before tax in local currency Loans and advances, end of period 167, , , , , , ,179 Deposits, incl. pooled deposits, end of period 93,306 96,515 93,705 88,956 84,624 93,306 96,515 Risk-weighted items (avg.) 141, , , , , , ,068 Allocated capital (avg.) 7,765 7,639 7,257 7,297 7,300 7,765 7,374 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) 1,172 1,175 1,171 1,171 1,169 1,172 1,175 No. of ebanking customers (000s) (end of period)*** No. of full-time employees (end of period) 2,412 2,308 2,283 2,294 2,299 2,412 2,308 * The fair value of loans, advances and deposits in the opening balance sheet has been 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. For Banking Activities Finland, we have changed the way we calculate the number of ebanking customers. Comparative figures have been restated. Comparative figures include the Sampo Bank Group as of February

24 Financial performance, Banking Activities 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 936 employees. Year to date Full year Banking Activities Sweden (DKr m) Q108 Q407 Q307 Q207 Q Net interest income ,846 Hereof allocated financing costs Net fee income Net trading income Other income Total income ,657 Staff cost Other costs Operating expenses ,495 Profit before credit loss expenses ,162 Credit loss expenses Profit before tax ,093 Profit before tax in local currency ,357 Loans and advances, end of period 167, , , , , , ,562 Deposits, end of period 57,130 57,368 53,018 51,178 47,345 57,130 57,368 Risk-weighted items (avg.) 141, , , , , , ,354 Allocated capital (avg.) 7,766 7,396 6,940 6,499 6,511 7,766 6,839 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) * Total market incl. property finance. ** Consists only of active ebanking customers. 24

25 Financial performance, Banking Activities 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, Retail-estate agency business is carried out through the 41 offices of Fokus Krogsveen Nylander. Banking Activities Norway has five regions with 55 branches, five finance centres and 1,065 employees. Year to date Full year Banking Activities Norway (DKr m) Q108 Q407 Q307 Q207 Q Net interest income ,698 Hereof allocated financing costs Net fee income Net trading income Other income Total income ,614 Staff cost Other costs Operating expenses ,618 Profit before credit loss expenses Credit loss expenses Profit before tax Profit before tax in local currency ,011 Loans and advances, end of period 144, , , , , , ,346 Deposits, end of period 56,417 57,624 57,737 57,482 48,506 56,417 57,624 Risk-weighted items (avg.) 121, ,151 99,831 93,077 88, ,592 98,109 Allocated capital (avg.) 6,688 6,113 5,491 5,119 4,846 6,688 5,396 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) 1,065 1,062 1,069 1,069 1,071 1,065 1,062 *Consists only of active ebanking customers. 25

26 Financial performance, Banking Activities 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 1,302 employees. Year to date Full year Banking Activities Northern Ireland (DKr m) Q108 Q407 Q307 Q207 Q Net interest income ,802 Hereof allocated financing costs Net fee income Net trading income Other income Total income ,417 Amortisation of intangible assets Integration expenses Staff cost Other costs ,411 Operating expenses ,108 Profit before credit loss expenses Credit loss expenses Profit before tax Profit before tax in local currency Loans and advances, end of period 58,137 58,803 60,845 60,677 56,070 58,137 58,803 Deposits, end of period 52,088 56,303 59,845 60,601 56,856 52,088 56,303 Risk-weighted items (avg.) 47,529 45,921 47,787 44,225 42,371 47,529 45,093 Allocated capital (avg.) 2,614 2,526 2,628 2,432 2,330 2,614 2,480 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) 1,302 1,295 1,279 1,313 1,378 1,302 1,295 * The lending margin shows a decline from the level in 2007 because the figures for the latest quarter include loans from London Branch and the figures for 2007 do not. These loans generally have large volumes and low margins, and they reduce Northern Bank's overall lending margin. Excluding London Branch, Northern Bank's lending margin was unchanged from the level in ** 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. 26

27 Financial performance, Banking Activities Ireland Banking Activities Ireland encompasses the banking activities of National Irish Bank, which caters primarily to retail and corporate customers. Banking Activities Ireland has four regions with 64 branches and 635 employees. Year to date Full year Banking Activities Ireland (DKr m) Q108 Q407 Q307 Q207 Q Net interest income ,085 Hereof allocated financing costs Net fee income Net trading income Other income Total income ,346 Amortisation of intangible assets Integration expenses Staff cost Other costs Operating expenses ,130 Profit before credit loss expenses Credit loss expenses Profit before tax Profit before tax in local currency Loans and advances, end of period 71,836 69,433 66,732 63,465 56,482 71,836 69,433 Deposits, end of period 23,874 23,982 23,307 22,488 20,880 23,874 23,982 Risk-weighted items (avg.) 55,190 58,419 58,444 52,750 47,254 55,190 54,259 Allocated capital (avg.) 3,035 3,213 3,214 2,901 2,599 3,035 2,984 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 (lending) (%) (end of period), incl. property finance* 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) * Retail Clearing Banks market (AIB, Bank of Ireland, Ulster Bank and National Irish Bank). ** Consists only of active ebanking customers. 27

28 Financial performance, Banking Activities Baltics Banking Activities Baltics encompasses the Group's banking activities in Estonia, Latvia and Lithuania and serves all types of retail and corporate customers. Banking Activities Baltics has 44 branches and 1,286 employees. Year to date Full year Banking Activities, Baltics (DKr m) Q108 Q407 Q307 Q207 Q Net interest income Hereof allocated financing costs Net fee income Net trading income Other income Total income Integration expenses Staff cost Other costs Operating expenses Profit before credit loss expenses Credit loss expenses Profit before tax Loans and advances, end of period 27,833 26,875 24,848 22,605 20,458 27,833 26,875 Deposits, end of period 11,503 11,557 10,512 9,153 8,994 11,503 11,557 Risk-weighted items (avg.) 25,625 24,181 22,831 21,808 20,076 25,625 22,237 Allocated capital (avg.) 1,409 1,330 1,256 1,199 1,104 1,409 1,223 Profit before credit loss expenses as % p.a. of allocated capital Pre-tax profit as % p.a. of allocated capital (ROE) Cost/income ratio, % Expenses, excl. integration expenses as % of income Comparative figures include the Sampo Bank Group as of February Year to date Full year Profit before tax (Dkr m) Q108 Q407 Q307 Q207 Q Estonia Latvia Lithuania Total Banking Activities Baltics Comparative figures include the Sampo Bank Group as of February

29 Financial performance, Banking Activities Baltics, continued Year to date Full year Banking Activities, Baltics (DKr m) Q108 Q407 Q307 Q207 Q ESTONIA 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) LATVIA 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) LITHUANIA 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) * Market shares Q are calculated as of end of August Market shares Q are calculated as of end of February 2008 for Estonia. ** Consists only of active ebanking customers. 29