INTERIM REPORT FIRST HALF 2012

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3 INTERIM REPORT FIRST HALF 2012 TABLE OF CONTENTS MANAGEMENT'S REPORT 3 Financial highlights Danske Bank Group 3 Overview 4 Financial review 5 Balance sheet 8 Outlook for Business units 15 Banking Activities 16 Danske Markets and Treasury 19 Danske Capital 20 Danica Pension 21 Other Activities 23 INTERIM FINANCIAL STATEMENTS DANSKE BANK GROUP 24 Income statement 24 Statement of comprehensive income 25 Balance sheet 26 Statement of capital 27 Cash flow statement 29 Notes 30 INTERIM FINANCIAL STATEMENTS DANSKE BANK A/S 52 STATEMENT BY THE MANAGEMENT 62 AUDITORS' REVIEW REPORTS 63 SUPPLEMENTARY INFORMATION 65 Interim Report First Half 2012 is a translation of the original report in the Danish language (Delårsrapport 1. halvår 2012). In case of discrepancies, the Danish version prevails.

4 DANSKE BANK INTERIM REPORT FIRST HALF /65 Financial highlights Danske Bank Group INCOME STATEMENT First half First half Index Q2 Q1 Q4 Q3 Q2 Full year / Net interest income 12,390 11, ,218 6,172 6,182 6,016 5,785 23,537 Net fee income 4,013 4, ,026 1,987 2,218 1,938 2,049 8,298 Net trading income 5,684 5, ,462 3,222 1, ,445 7,325 Other income 1,634 1, ,648 Net income from insurance business Total income 24,604 23, ,251 12,353 11,863 8,311 11,512 43,377 Expenses 13,482 14, ,632 6,850 6,459 5,499 6,678 25,987 Profit before loan impairment charges 11,122 9, ,619 5,503 5,404 2,812 4,834 17,390 Loan impairment charges 7,031 5, ,109 3,922 4,789 2,802 2,753 13,185 Profit before tax 4,091 3, ,510 1, ,081 4,205 Tax 1,805 1, , ,482 Net profit for the period 2,286 1, , ,200 1,723 Attributable to non-controlling interests BALANCE SHEET (END OF PERIOD) Due from credit institutions and central banks 72,660 59, , ,085 74,041 81,036 59,893 74,041 Repo loans 341, , , , , , , ,027 Loans and advances 1,704,019 1,666, ,704,019 1,684,125 1,698,025 1,693,518 1,666,608 1,698,025 Trading portfolio assets 862, , , , , , , ,755 Investment securities 105, , , , , , , ,264 Assets under insurance contracts 237, , , , , , , ,668 Other assets 156, , , , , , , ,623 Total assets 3,480,722 3,127, ,480,722 3,500,474 3,424,403 3,381,024 3,127,061 3,424,403 Due to credit institutions and central banks 226, , , , , , , ,592 Repo deposits 407, , , , , , , ,515 Deposits 735, , , , , , , ,275 Bonds issued by Realkredit Danmark 596, , , , , , , ,699 Other issued bonds 316, , , , , , , ,920 Trading portfolio liabilities 628, , , , , , , ,913 Liabilities under insurance contracts 258, , , , , , , ,966 Other liabilities 120, , , , , , , ,340 Subordinated debt 62,584 72, ,584 64,033 67,328 70,059 72,288 67,328 Shareholders' equity 128, , , , , , , ,855 Total liabilities and equity 3,480,722 3,127, ,480,722 3,500,474 3,424,403 3,381,024 3,127,061 3,424,403 RATIOS AND KEY FIGURES Earnings per share (DKK) Diluted earnings per share (DKK) Return on average shareholders' equity (%) Cost/income ratio (%) Total capital ratio (%) Tier 1 capital ratio (%) Share price (end of period) (DKK) Book value per share (DKK) Full-time-equivalent staff (end of period) 20,997 21,536 20,997 21,160 21,320 21,567 21,536 21,320 Share ratios for 2011 have been divided by a factor of to reflect the share capital increase in April 2011.

5 DANSKE BANK INTERIM REPORT FIRST HALF /65 Overview The Danske Bank Group has launched initiatives to improve earnings and ensure that its business model is competitive and creates value. In 2012, the Group is focusing on pricing and cost-savings initiatives and on improving customer satisfaction. These measures are proceeding on schedule. On 1 June 2012, the Group implemented organisational changes, and its financial reporting will reflect the new organisation beginning on 1 January The new organisation is the first step in implementing the Group s new strategy, which is expected to be completed by the end of the third quarter of In Ireland, part of the loan portfolio has been transferred to a separate new business unit, Non-core Ireland, which is responsible for the controlled winding-up of these loans. The remaining activities at National Irish Bank will focus on business customers, and a down-scaled organisation will serve personal and small business customers through online and direct channel services. Financial summary The Danske Bank Group posted a profit before tax of DKK 4.1 billion for the first half of The net profit was DKK 2.3 billion, a 20% rise from the net profit in the first half of 2011 and generally in line with expectations. Excluding Non-core Ireland, profit before tax was DKK 6.4 billion. Total income rose 6% from the year-earlier level. Price increases lifted net interest income, but the effect of the increases was partly offset by falling interest rates. Net trading income remained solid. Expenses fell 4% from the level in the year-earlier period. In the first half of 2011, expenses were high because of expenses for the Danish Guarantee Fund for Depositors and Investors, and expenses in the first half of 2012 included a charge of DKK 0.5 billion related to name rights because of the rebranding of Sampo Bank. The Group s programme to reduce costs and cut the headcount by about 2,000 is expected to be completed by the end of Loan impairment charges increased significantly from the level in the first half of Compared with the high level in the fourth quarter of 2011, however, charges declined for the second consecutive quarter, partly because of lower charges at Retail Banking Denmark and Corporate & Institutional Banking. After being placed on negative outlook, Danske Bank, like many other banks, saw its rating lowered in the second quarter of The Group has established considerable liquidity buffers to counter the effects of the downgrades. Outlook for 2012 Earnings before impairment charges at the banking units and Danske Capital are likely to remain stable, while earnings at the other units will depend on financial market trends. The trend in credit quality will generally depend on economic conditions in the Group s markets. Total impairment charges are likely to remain at the same high level as in The Group still expects earnings to remain low in Because of the economic climate, the outlook is subject to considerable uncertainty.

6 DANSKE BANK INTERIM REPORT FIRST HALF /65 Financial review The Danske Bank Group posted a profit before tax of DKK 4.1 billion for the first half of The net profit was DKK 2.3 billion, a 20% rise from the net profit in the first half of 2011 and generally in line with expectations. Excluding Non-core Ireland, profit before tax was DKK 6.4 billion. offset, however, by the pressure on deposit margins caused by declining short-term interest rates. All units generated net interest income above the level in the first half of The price increases alone lifted income by about DKK 1.9 billion. The escalating financial crisis in the EU and uncertainty about the future of the euro led to a fall in shortterm interest rates in the Group s markets in the first half of the year. This was particularly evident in Denmark as the Danish central bank lowered rates independently on a number of occasions to stabilise the Danish krone. In response to the extraordinarily low yields on the fixed-income markets, in the second quarter of 2012 the Danish Ministry of Business and Growth changed the discount yield curve used by the insurance and pension industry. Although interest rates remained low in the period, the Group s earnings initiatives and tight cost control improved the financial results. Profit before loan impairment charges rose 21% from the year-earlier level. Difficult conditions persisted in several of the Group s markets, though, and impairment charges were high at the units in Ireland and Northern Ireland and in some segments in Denmark. Danske Markets benefited from market trends in the first half of Income Income totalled DKK 24.6 billion, up 6% from the level in the first half of 2011, mainly because of higher net interest income and net income from insurance business. Net interest income amounted to DKK 12.4 billion, up 9% from the year-earlier figure. Price increases led to higher lending margins, which in turn had a positive effect on net interest income. This effect was partly Net fee income amounted to DKK 4.0 billion, down 3% from the year-earlier level. Danske Capital s income declined because of a shift in the mix of assets under management. Net trading income remained solid, rising 5% from the level a year earlier. Other income fell to DKK 1.6 billion, down 17% from the level in the first half of The year-earlier figure included a refund of about DKK 150 million of excess VAT paid from 1995 to The Group s insurance business generated net income of DKK 0.9 billion, against DKK 0.3 billion a year earlier. A better investment return and the booking of the risk allowance to income for three of the four interest rate groups had a positive effect on income. In the first half of 2011, the Group was able to book the risk allowance for only two groups. At 30 June 2012, the shadow account balance was DKK 1.2 billion. PROFIT BEFORE LOAN IMPAIR- MENT CHARGES First half First half Index Q2 Q1 Q4 Q3 Q2 Full year / Total Retail Banking Denmark 3,885 3, ,912 1,973 1,982 2,188 1,880 7,893 Total Retail Banking international 2,324 1, , , ,885 Corporate & Institutional Banking ,973 Total Banking Activities 7,167 6, ,393 3,774 3,445 3,850 3,314 13,751 Danske Markets and Treasury 3,415 3, ,365 2, ,367 3,064 Danske Capital Danica Pension Other Activities , Total Group 11,122 9, ,619 5,503 5,404 2,812 4,834 17,390 Total Retail Banking international consists of retail banking and other retail units outside Denmark.

7 DANSKE BANK INTERIM REPORT FIRST HALF /65 Expenses Expenses amounted to DKK 13.5 billion, down 4% from the level in the first half of 2011, mainly because of lower expenses for the Danish Guarantee Fund for Depositors and Investors. Expenses included a charge of DKK 0.5 billion related to name rights because of the rebranding of Sampo Bank and expenses of DKK 0.4 billion related to staff reductions and branch closures. Since the beginning of 2012, the commitment to the Guarantee Fund has been based on fixed annual contributions. After the deduction of its share of the Fund s assets before the change in the scheme, Danske Bank s commitment for 2012 amounts to about DKK 0.6 billion. Individual charges amounted to a net DKK 7.3 billion, against a net DKK 5.3 billion a year earlier. Charges fell during the first half of 2012, however, because of lower charges against facilities to personal customers and to business customers in the Nordic countries. Individual charges were mostly adjustments of charges recognised in previous periods and a few new charges against facilities to shipping customers. Total charges included charges against facilities to personal customers of DKK 1.8 billion and charges against facilities to business customers of DKK 5.0 billion with small and medium-sized enterprises accounting for DKK 3.6 billion of this amount. Financial counterparties accounted for DKK 0.2 billion. During the first half of 2012, the Group closed 67 retail branches, including 31 in Denmark. Branch closures are expected to continue throughout From November 2012, National Irish Bank will serve mainly personal customers from a new Personal Banking Centre in Dublin. As part of the reorganisation, National Irish Bank will close 27 branches and reduce its staff by about 100 persons. Expenses for the financial services employer tax and VAT amounted to DKK 0.9 billion, the same as in the year-earlier period. Loan impairment charges For the first half of the year, loan impairment charges amounted to DKK 7.0 billion, or 0.73% of lending and guarantees, against 0.58% for the first half of The charges related mainly to the commercial property segments in Ireland and Northern Ireland, personal customers in Ireland and Denmark, and the shipping industry. LOAN IMPAIRMENT CHARGES First half 2012 First half 2011 % of lending % of lending Charges and guarantees Charges and guarantees Retail Banking Denmark 2, , Retail Banking Finland Retail Banking Sweden Retail Banking Norway Banking Activities Northern Ireland Banking Activities Ireland , Banking Activities Baltics Other Banking Activities Corporate & Institutional Banking Non-core Ireland 2, Total Banking Activities 6, , The fall in charges against facilities to personal customers in the second quarter of 2012 took place mainly at Retail Banking Denmark. Charges against facilities to business customers related mainly to the commercial property segment of Non-core Ireland and to shipping customers. Charges at Non-core Ireland were mostly adjustments of existing charges prompted by the continued fall in property prices. Charges against facilities to shipping customers equalled 3.4% of lending and guarantees and related mainly to a few large exposures. Loan impairment charges in Denmark related mostly to consumer industries and the commercial property segment because retail sales fell. The Danish FSA s clarification of the rules on impairment charges did not have any noticeable effect on the level of charges. Tax Tax on the profit for the period amounted to DKK 1.8 billion. The tax charge is high relative to the profit for the period, mainly because the Group did not book the tax value of losses in Ireland. Danske Markets and Treasury Danske Capital Total 7, ,

8 DANSKE BANK INTERIM REPORT FIRST HALF /65 Second quarter 2012 Profit before tax rose to DKK 2.5 billion in the second quarter of 2012 from DKK 1.6 billion in the first quarter. The increase was driven by higher net income from insurance business and a decline in loan impairment charges. Net interest income was unchanged at DKK 6.2 billion. Price increases contributed DKK 0.2 billion to this amount. Increased margins on lending were, however, offset by a decline in interest rates. Net trading income amounted to DKK 2.5 billion, against DKK 3.2 billion in the first quarter. Net income from insurance business rose to DKK 0.7 billion from DKK 0.2 billion in the first quarter. The fact that the Group booked the risk allowance for three of the four interest rate groups explains part of the increase; no risk allowance was booked in the first quarter. Expenses fell 3% from the first-quarter level and amounted to DKK 6.6 billion. Expenses in the first quarter were affected by a charge of DKK 0.5 billion related to name rights because of the rebranding of Sampo Bank, while the second quarter of 2012 was affected by expenses for staff reductions and branch closures. Loan impairment charges amounted to DKK 3.1 billion, a decline of DKK 0.8 billion from the level in the first quarter. Retail Banking Denmark and Banking Activities Northern Ireland saw much lower charges. Banking Activities Ireland recorded a decline of DKK 0.4 billion because of lower charges against facilities to personal customers and to consumer industries in the business segment. Charges at Noncore Ireland accounted for 44% of total charges in the second quarter.

9 DANSKE BANK INTERIM REPORT FIRST HALF /65 Balance sheet LENDING (END OF PERIOD) First half First half Index Q2 Q1 Q4 Q3 Q2 Full year / Retail Banking Denmark 956, , , , , , , ,672 Retail Banking Finland 153, , , , , , , ,484 Retail Banking Sweden 187, , , , , , , ,418 Retail Banking Norway 139, , , , , , , ,102 Banking Activities Northern Ireland 48,043 48, ,043 48,146 53,326 52,831 48,929 53,326 Banking Activities Ireland 25,992 67, ,992 26,411 63,728 66,657 67,861 63,728 Banking Activities Baltics 19,589 22, ,589 20,199 20,501 21,444 22,254 20,501 Other Banking Activities 16,832 16, ,832 16,888 16,833 17,095 16,318 16,833 Corporate & Institutional Banking 110, , , , , , , ,769 Non-core Ireland 35, ,812 36, Total Banking Activities 1,695,428 1,668, ,695,428 1,689,265 1,698,833 1,688,201 1,668,455 1,698,833 Danske Markets and Treasury 53,679 40, ,679 42,388 44,330 46,407 40,671 44,330 Danske Capital 5,937 6, ,937 6,279 6,075 6,266 6,293 6,075 Other Activities 1,565-4,878-1,565-3,312-3, ,878-3,603 Allowance account, lending 52,590 43, ,590 50,495 47,610 46,420 43,933 47,610 Total lending 1,704,019 1,666, ,704,019 1,684,125 1,698,025 1,693,518 1,666,608 1,698,025 DEPOSITS AND BONDS ISSUED BY REALKREDIT DANMARK (END OF PERIOD) Retail Banking Denmark 290, , , , , , , ,995 Retail Banking Finland 99, , , , , , , ,256 Retail Banking Sweden 71,167 66, ,167 72,191 73,072 65,301 66,719 73,072 Retail Banking Norway 65,137 56, ,137 60,001 60,223 56,749 56,799 60,223 Banking Activities Northern Ireland 51,067 49, ,067 50,336 55,060 53,540 49,408 55,060 Banking Activities Ireland 21,645 37, ,645 31,214 37,787 37,462 37,921 37,787 Banking Activities Baltics 17,821 20, ,821 18,342 19,530 20,137 20,822 19,530 Other Banking Activities 5,271 4, ,271 5,261 5,225 6,649 4,936 5,225 Corporate & Institutional Banking 57,018 68, ,018 72,077 69,333 67,957 68,990 69,333 Non-core Ireland 1, , Total Banking Activities 680, , , , , , , ,481 Danske Markets and Treasury 58, , ,554 85,547 97,412 96, ,854 97,412 Danske Capital 5,428 6, ,428 5,778 5,700 6,584 6,424 5,700 Other Activities -8,670-7, ,670-5,659-9,318-8,055-7,194-9,318 Total deposits 735, , , , , , , ,275 Bonds issued by Realkredit Danmark 596, , , , , , , ,699 Own holdings of Realkredit Danmark bonds 153, , , , , , , ,806 Total Realkredit Danmark bonds 750, , , , , , , ,505 Total covered bonds 190, , , , , , , ,805 Deposits and issued mortgage bonds etc. 1,676,113 1,626, ,676,113 1,695,339 1,713,585 1,668,195 1,626,771 1,713,585 Lending as % of deposits and issued mortgage bonds etc Lending At 30 June 2012, total lending to personal and business customers largely matched the level at 31 December Lending at Retail Banking Denmark was down DKK 11 billion from the level at the end of 2011 because of lower lending to personal customers and small and medium-sized enterprises. In Denmark, new lending, excluding repo loans, amounted to DKK 17.7 billion. This amount included lending to personal customers of DKK 7.5 billion. Net new mortgage lending accounted for DKK 1.4 billion of new lending to personal customers. Lending equalled 102% of the total amount of deposits, mortgage bonds and covered bonds, against 99% at the end of 2011.

10 DANSKE BANK INTERIM REPORT FIRST HALF /65 Deposits After having been placed on negative outlook, Danske Bank saw its short-term rating lowered in the second quarter of As expected, the downgrade meant that some shortterm money market deposits at Danske Markets were not renewed. The unit thus saw a total decline in net deposits of DKK 39 billion in the first half of Deposits at Retail Banking Denmark rose 5% from the level at the end of Excluding exchange rate effects, total deposits at the units outside Denmark fell 10% from the level at the end of 2011, mainly because National Irish Bank saw keener competition for business customer deposits. Deposits at the other banking units were stable. The Group aims to ensure a better balance between lending and deposits. Credit exposure At 30 June 2012, credit exposure totalled DKK 3,654 billion, against DKK 3,611 billion at the end of Exposure from Danish and international lending activities amounted to DKK 2,382 billion, against DKK 2,299 billion at the end of Some DKK 969 billion of the total exposure derived from trading and investment activities, against DKK 1,020 billion at the end of Credit exposure from lending activities Total credit exposure from lending activities included amounts due from credit institutions and central banks, guarantees and irrevocable loan commitments. The exposure is measured net of accumulated impairment charges and includes repo loans. Personal customers accounted for 37% of credit exposure from lending activities, commercial customers for 38%, and financial counterparties for 20%. The remainder consisted of exposure to central banks and central and local governments. Of the exposure to commercial customers, small and medium-sized enterprises accounted for 68%. CREDIT EXPOSURE FROM LENDING ACTIVITIES 30 June Share of 31 Dec. Share of 2012 total (%) 2011 total (%) Retail Banking Denmark 965, , Retail Banking Finland 162, ,008 7 Retail Banking Sweden 202, ,319 9 Retail Banking Norway 151, ,658 6 Banking Activities Northern Ireland 47, ,480 2 Banking Activities Ireland 24, ,695 3 Banking Activities Baltics 21, ,158 1 Other Banking Activities 63, ,586 2 Corporate & Institutional Banking 250, , Non-core Ireland 24, Total Banking Activities 1,914, ,923, Danske Markets and Treasury 456, , Danske Capital 11,695-9,965 - Total 2,382, ,298, Personal customers Credit exposure to personal customers covers loans secured on customers assets, consumer loans and fully or partially secured credits. At 30 June 2012, credit exposure to personal customers amounted to DKK 889 billion, the same as at 31 December Personal customer demand for credit has generally weakened over the past year. At 92%, the share of approved personal customer loan applications was unchanged from the level in the year-earlier period. Home financing accounted for DKK 791 billion of credit exposure to personal customers, with Realkredit Danmark loans accounting for DKK 423 billion of this amount. Most of the home loans were still variable-rate loans. Interest-only loans accounted for 55%, matching the first-half 2011 level. LOAN-TO-VALUE RATIO, HOME LOANS 30 June 31 Dec. (%) Retail Banking Denmark Realkredit Danmark Retail Banking Finland Retail Banking Sweden Retail Banking Norway Banking Activities Northern Ireland Banking Activities Ireland Banking Activities Baltics Non-core Ireland Average Although market activity showed signs of stabilisation towards the end of the period, house prices continued downwards, especially in the Irish markets. Danish house prices also fell. Rising LTV ratios increase the risk that customers who are forced to sell their homes will do so at a loss.

11 DANSKE BANK INTERIM REPORT FIRST HALF /65 Realkredit Danmark saw a fall in delinquency rates from 0.29% at 30 June 2011 to 0.24% at 30 June Credit quality at the other Nordic retail units remained good, and delinquency rates were unchanged. Low interest rates and a continuation of low unemployment had a positive effect on credit quality. Both Ireland and Northern Ireland saw a decline in unemployment during the first half of But the unemployment rates remain high, especially in Ireland, and personal customer credit quality at the two units still suffers from the fall in house prices. At Banking Activities Ireland, the home loan delinquency rate was 3.4%, against 3.0% at the end of Impairment charges at the unit amounted to DKK 0.2 billion, or 2.2% of lending and guarantees to personal customers. At the Baltic units, impairment charges recorded net reversals, reflecting the continued improvement in the Baltic economies. Business customers Credit exposure to business customers consists of fully or partially secured operating financing and loans secured on assets. Credit exposure before loan impairment charges was at the same level as at the end of Credit exposure to small and medium-sized enterprises was unchanged, while exposure to large corporate customers rose. At 30 June 2012, credit exposure to business customers totalled DKK 898 billion and largely matched the level at 31 December Business customer credit quality was unchanged. The sensitivity of small and medium-sized enterprises to changes in consumer spending grew, however. The risk of deteriorating credit quality increases in step with the decline in house prices and disposable incomes, particularly for the industries most sensitive to consumer spending. The underlying credit quality at Corporate & Institutional Banking remained good. Commercial property customers At 30 June 2012, credit exposure to commercial property customers totalled DKK 258 billion, against DKK 257 billion at 31 December 2011, with exposure in Denmark accounting for DKK 118 billion. After a long downward trend, the credit quality of the Danish property portfolio stabilised. Credit exposure at the other Nordic units amounted to DKK 102 billion, and credit quality remained stable. IMPAIRMENT CHARGES AND CREDIT EXPOSURE COMMERCIAL PROPERTY First half June 2012 Charges Balance (% of Lending and lending and guarantees (% guarantees) of portfolio) Retail Banking Denmark Retail Banking Finland Retail Banking Sweden Retail Banking Norway Banking Activities Northern Ireland Banking Activities Ireland Banking Activities Baltics Other Banking Activities Corporate & Institutional Banking Non-core Ireland 1, Total 2, At 30 June 2011, exposure to the Northern Ireland property sector amounted to DKK 7.3 billion. Property developers accounted for DKK 1.6 billion, or 3.4% of the total exposure of the Northern Ireland unit. Exposure to the Irish property sector, which amounted to DKK 9.6 billion, is part of Non-core Ireland. Property developers accounted for DKK 2.6 billion, or 10.7% of the total exposure at Non-core Ireland. Agricultural customers At 30 June 2012, agricultural customer credit exposure amounted to DKK 69.3 billion, against DKK 67.9 billion at the end of Loans provided by Realkredit Danmark accounted for DKK 45.2 billion, against DKK 45.0 billion at the end of In spite of improved terms of trade for agricultural produce, the credit quality of the agricultural portfolio remained weak because of high debt levels. Credit exposure to agricultural customers, mainly operating facilities, totalled DKK 8.8 billion at Retail Banking Denmark, excluding Realkredit Danmark. Pig farmers, who accounted for 24% of the exposure, continued to have the poorest credit quality. Shipping customers At 30 June 2012, credit exposure to the shipping industry amounted to DKK 46.1 billion, against DKK 48.4 billion at 31 December The pressure on the shipping industry continued. Excess capacity remained high, causing further declines in the value of shipping assets, with an adverse effect on the Group s collateral. Generally low freight rates also affected liquidity in the industry. Accumulated impairment charges against facilities to the shipping industry amounted to DKK 1.8 billion, or 4.7%, of lending and guarantees. Non-core Ireland The Group has identified a number of customer segments at Banking Activities Ireland that will no longer be considered part of the Group s core business. The main non-core segments are commercial property and

12 DANSKE BANK INTERIM REPORT FIRST HALF /65 personal customer investment property. At 30 June 2012, credit exposure at Non-core Ireland totalled DKK 24 billion, with commercial property exposures accounting for DKK 9.6 billion and personal customer investment property exposures accounting for DKK 8.4 billion. The remaining DKK 6.0 billion related mostly to consumer industries. Impaired exposures made up 44% of the portfolio. Impaired personal customer investment property exposures made up 4% of the portfolio. Financial counterparties Credit exposure to financial counterparties amounted to DKK 477 billion at 30 June 2012, against DKK 389 billion at the end of Most of the exposure related to bank facilities that were to a large extent secured on collateral. The credit quality of financial counterparties remained good. Exposure to small Danish credit institutions accounted for 2% of the total exposure to financial counterparties at 30 June Allowance account The allowance account holds accumulated loan impairment charges. At 30 June 2012, accumulated individual charges amounted to DKK 50.0 billion, or 2.4% of lending and guarantees. Accumulated collective charges amounted to DKK 4.0 billion, or 0.2% of lending and guarantees. The corresponding figures at 31 December 2011 were DKK 44.5 billion and DKK 4.1 billion. ALLOWANCE ACCOUNT 30 June December 2011 Balance % of lending % of lending and guarantees Balance and guarantees Retail Banking Denmark 18, , Retail Banking Finland 2, , Retail Banking Sweden 1, , Retail Banking Norway 1, , Banking Activities Northern Ireland 6, , Banking Activities Ireland 2, , Banking Activities Baltics 1, , Other Banking Activities Corporate & Institutional Banking 1, , Non-core Ireland 14, Danske Markets and Treasury 2, , Danske Capital Total 54, , The property sector and personal customers accounted for 18% and 26%, respectively, of accumulated charges at the Nordic retail units, against 17% and 25% at the end of Rating categories 11 and 10 comprise individually impaired exposures. If a customer defaults on just a single facility, the customer s downgrade applies to the entire exposure. Downgrading takes place even if the customer has provided adequate collateral. The value of collateral is calculated as the market value less a haircut of usually 20-40%, depending on the type of collateral. EXPOSURE AT 30 JUNE 2012 Rating category (DKK billions) Credit exposure before impairment charges Accumulated impairment charges Credit exposure Collateral value Total unsecured exposure Covered by impairment charges and collateral (%) Rating category 11 contains exposures to customers who, according to the Group s definition, are in default. These customers are subject to debt collection, restructuring or bankruptcy, or have one or more facilities on which a payment is more than 90 days past due. Rating category 10 contains customers with impaired exposures that are not in default. These exposures show signs of financial difficulty, including a risk of further impairment in the future. Most of the customers continue to service their loans in a timely manner. In the first half of 2012, actual losses fell to DKK 2.6 billion from DKK 5.9 billion a year earlier. Actual losses in the first half of 2011 included the settlement of DKK 3.3 billion for the Group s commitment under Danish Bank Package 1. Small business customers at Retail Banking Denmark accounted for most of the actual losses in the first half of Of actual losses in the first half of 2012, DKK 0.6 billion was attributable to facilities not already subject to impairment, the same as in the first half of Trading and investment activities Credit exposure from trading and investment activities fell from DKK 1,020 billion at 31 December 2011 to DKK 969 billion at 30 June The fall was caused mainly by declining derivatives values. The Group has made agreements with many of its counterparties to net positive and negative market values. The net exposure was DKK 105 billion, against DKK 99 billion at 31 December 2011, and most of it was secured by collateral management agreements. The value of the bond portfolio, excluding customer funds at Danica Pension, was DKK 484 billion, with DKK 68 billion recognised at fair value in accordance with the rules on available-for-sale financial assets. Of the total bond portfolio, 98.1% was recognised at fair value and 1.9% at amortised cost. The Group has not reclassified bonds since 2008.

13 DANSKE BANK INTERIM REPORT FIRST HALF /65 Most of the bond portfolio is liquid and can be used as collateral for loans from central banks and thus forms part of the liquidity reserve. BOND PORTFOLIO 30 June 31 Dec. (%) Government bonds and bonds guaranteed by central or local governments Bonds issued by quasi-government institutions 1 2 Danish mortgage bonds Swedish covered bonds Other covered bonds 5 5 Short-dated bonds (CP etc.), primarily with banks 3 2 Corporate bonds 4 3 Total holdings Available-for-sale bonds included in total holdings Holdings of government bonds consisted primarily of bonds issued by the Nordic countries, Germany and the UK. The net exposure to government bonds from Ireland, Portugal, Spain and Italy was DKK 5.8 billion. All holdings of government bonds issued by these countries were recognised at fair value. Danica Pension s exposure to government bonds from Ireland, Portugal, Spain and Italy totalled DKK 7.2 billion, with policyholders receiving most of the return and assuming most of the risk. The bond portfolio did not include government bonds issued by Greece. Capital and solvency The Group s capital base consists of tier 1 capital (equity capital and hybrid capital after deductions) and tier 2 capital. At 30 June 2012, the capital base amounted to DKK 158 billion, and the total capital ratio was 17.7%. The core tier 1 capital ratio stood at 12.1%. Hybrid capital raised from the Danish state accounted for 2.7 percentage points. Risk-weighted assets amounted to DKK 893 billion at 30 June 2012, against DKK 906 billion at 31 December The Group uses mainly the internal ratingsbased (IRB) approach to calculate risk-weighted assets for credit risk. At 30 June 2012, the Group s solvency need ratio was 10.4%. Under Danish law, the Group must publish its solvency need on a quarterly basis. More detailed information is available at The Basel III rules are in the process of being implemented in the EU s CRD IV. The final document is expected to be presented in the second half of The European Banking Authority will subsequently propose detailed rules for many areas, for example liquidity requirements and certain aspects of capital requirements. Once CRD IV is finalised, the Group will assess whether the new rules change the implications for Danske Bank relative to the Commission s July 2011 proposal. Danske Bank s Annual Report 2011 and Risk Management 2011 provide more details about the preliminary assessment of the implications of the new rules for the Group s capital position. Ratings Fitch Ratings maintained Danske Bank s long-term A rating (negative outlook) and short-term F1 rating in the first half of 2012, while Standard & Poor s lowered Danske Bank s long-term rating from A to A- (stable outlook] and its short-term rating one notch to A-2. A general downgrade by Moody s of many European banks in the first half of 2012 also affected a number of Danish banks, including Danske Bank. In May 2012, Moody s lowered Danske Bank s long-term rating from A2 to Baa1 and its short-term rating from P- 1 to P-2. Both ratings now have a stable outlook. Moody s ratings in particular are affected by the fact that Denmark has not yet designated systemically important financial institutions (SIFIs). Under the political agreement on Danish Bank Package 4 of September 2011, a committee was set up to analyse the criteria that a bank must meet to be considered a SIFI in Denmark. The Group expects that it will be considered a Danish SIFI. The committee is to report to the minister for business and growth by the end of 2012, and requirements for Danish SIFIs will not be clarified until then. The Group considers it critical that the supervision and regulation of Danish SIFIs conform to international standards. It is also key that rules on the resolution of SIFIs match international conventions. The Group s current ratings are not satisfactory. The initiatives launched to improve earnings and the focus on ensuring a better balance between lending and deposits are expected to improve its ratings. Macroeconomic trends, particularly in Ireland, Northern Ireland and Denmark, along with the regulatory framework in Denmark, however, may delay the process. Mortgage bonds and mortgage-covered bonds issued by Realkredit Danmark are rated AAA by Standard & Poor s (stable outlook). In the first half of 2012, Realkredit Danmark began a collaboration with Fitch Ratings, and in June, Realkredit Danmark s bonds were rated AAA by Fitch Ratings. Funding and liquidity The relatively positive market sentiment that prevailed in the first quarter disappeared in the second quarter when high volatility and uncertainty returned. This negative turn of events resulted mainly from renewed concerns over the stability of the euro zone and also from the uncertain rating outlooks for many European banks.

14 DANSKE BANK INTERIM REPORT FIRST HALF /65 As expected, the rating downgrades meant that some short-term money market deposits at Danske Markets as well as short-dated bonds were not renewed. The substantial deposits held by the banking units were not affected by the downgrades. The Group had prepared for the change in ratings and has for some time maintained a large liquidity reserve, for example by setting up an extensive covered bond programme. In the first half of 2012, the Group thus issued covered bonds for DKK 39 billion. In addition, the Group issued senior debt for DKK 17 billion and junior covered bonds for DKK 20 billion. At the end of June 2012, the Group had, as planned, redeemed state-guaranteed bond issues for DKK 30 billion. The remainder of the state-guaranteed bond issues was redeemed in July In the autumn of 2011, the Danish central bank expanded its lending facility to Danish banks by allowing them to borrow on the basis of high-quality loans. A number of other European countries have similar programmes. The Danish central bank followed the ECB by introducing an option for Danish banks to raise loans with a maturity of three years. At 30 June 2012, the Group had drawn around DKK 15 billion on the Danish central bank facility and around DKK 40 billion on the ECB facility, with bonds provided as collateral. The Group maintained a strong liquidity position throughout the period. It expects to be able to continue operations even if access to the capital markets is cut off for much longer than 12 months. This is shown in the Moody s liquidity curve, which the Group uses as one element of its liquidity management. The Group s 12-month liquidity curve is positive for more than two and a half years. The liquidity buffer still exceeds DKK 300 billion. The Group has taken measures to ensure compliance with the loss coverage ratio (LCR) requirement by the end of 2012, well ahead of the expected EU requirement in The Group expects to achieve compliance with the requirement by changing the composition of the liquidity buffer and by including holdings of Danish mortgage bonds and own covered bonds. In addition, the Group plans to issue senior debt and covered bonds, although the issues will be more moderate than in the first half of Executive management On 15 February 2012, Peter Straarup retired from his position as chief executive officer, and Eivind Kolding became the new chief executive officer. On 1 June 2012, Lars Mørch joined the Executive Board as head of the Group s Business Banking unit. Per Skovhus and Georg Schubiger, members of the Executive Board, resigned from their positions on 15 June 2012 and 1 June 2012, respectively. Robert Endersby has been appointed Chief Risk Officer & Head of Group Credit. He will take up his new position no later than 1 October 2012 and will also become a member of the Executive Board.

15 DANSKE BANK INTERIM REPORT FIRST HALF /65 Outlook for 2012 The year 2012 began with some optimism in the financial markets in the wake of the monetary easing introduced by the European Central Bank towards the end of The initial optimism quickly disappeared, however, as the unstable political situation in Greece, combined with the difficulties in Spain, put the problems in Europe back on the agenda. The ECB cut its leading rate in July 2012, and the Danish central bank followed suit, pushing the Danish certificate of deposit rate into negative territory. Interest rates are forecast to be generally unchanged or falling in the remainder of The Group will continue its efforts to increase income, and further price increases are likely to follow those already announced. The announced and implemented initiatives are expected to raise income by around DKK 4 billion a year from the level in Lower key interest rates will reduce the effect of price increases, however. Overall, net interest income is likely to increase from the 2011 level. The Irish economy will continue to face structural challenges, and because of the economic climate, the level of future impairment charges is uncertain. The outlook for rental property and property developers in Northern Ireland is also uncertain. Loan impairment charges at the units in Ireland and Northern Ireland are likely to remain high as stated in the first-quarter report. The trend in credit quality will generally depend on economic conditions in the Group s markets, and total impairment charges are likely to remain at the same high level as in The Group still expects earnings to remain low in Because of the economic climate, the outlook is subject to considerable uncertainty. Including charges related to name rights because of the rebranding of Sampo Bank and reorganisation expenses, expenses in 2012 are expected to rise 4% over the level in The Group s programme to reduce costs and cut the headcount by about 2,000 is expected to be completed by the end of The performance of market-related activities in Danske Markets and Danica Pension will depend greatly on trends in the financial markets. Part of the risk allowance is likely to be booked in 2012.

16 DANSKE BANK INTERIM REPORT FIRST HALF /65 Business units INCOME First half First half Index Q2 Q1 Q4 Q3 Q2 Full year / Retail Banking Denmark 8,364 8, ,220 4,144 4,271 4,165 4,158 16,576 Retail Banking Finland 1,847 1, ,581 Retail Banking Sweden 1,745 1, ,225 Retail Banking Norway 1,486 1, ,564 Banking Activities Northern Ireland ,587 Banking Activities Ireland ,054 Banking Activities Baltics Other Banking Activities 1,206 1, ,204 Corporate & Institutional Banking 1,482 1, ,029 Non-core Ireland Total Banking Activities 17,839 16, ,974 8,865 8,982 8,638 8,630 34,552 Danske Markets and Treasury 4,989 4, ,064 2,925 1, ,049 5,716 Danske Capital ,980 Danica Pension Other Activities Total Group 24,604 23, ,251 12,353 11,863 8,311 11,512 43,377 Banking Activities consists of the Group s retail banking units and Corporate & Institutional Banking (CIB). The retail units serve all types of personal customers (including private banking customers served at finance centres), small businesses and medium-sized companies. Mortgage finance operations in Denmark are carried out through Realkredit Danmark. Real estate agency operations are conducted by the home and Fokus Krogsveen estate agency chains. The results of the Group s property finance operations are included in the retail unit figures. The Group has identified Banking Activities Ireland s non-core activities. These activities involve commercial and investment property exposures, including personal customer investment property exposures, as well as exposures to small and medium-sized enterprises in some sectors. The specialised local CIB units in Denmark, Sweden, Norway and Finland serve the largest and most complex companies in the Nordic countries, including pension funds, insurance companies and other financial institutions, and multinational companies with significant banking business in the region. Products and services include lending, financial instruments for risk management and investment purposes, cash management services, advice on mergers and acquisitions, and assistance with equity and debt issues in the international financial markets. Danske Markets is responsible for the Group s activities in the financial markets. Trading activities include trading in fixed-income products, foreign exchange and equities. Institutional Banking at Danske Markets covers facilities with international financial institutions outside the Nordic region. Facilities with Nordic financial institutions form part of Banking Activities. Group Treasury is responsible for the Group s strategic fixed-income, foreign exchange and equity portfolios and serves as the Group s internal bank. Danske Capital develops and sells asset and wealth management products and services. They are marketed through the banking units and directly to businesses, institutional clients and external distributors. Danske Capital also supports the advisory and asset management activities of the banking units. Through Danske Bank International in Luxembourg, Danske Capital provides international private banking services to clients outside the Group s home markets. Danica Pension carries out the Group s life insurance and pension activities for both personal and business customers. Products are marketed through a range of distribution channels, mainly banking units and own insurance brokers and advisers. Danica Pension offers two market-based products: Danica Balance and Danica Link. These products allow customers to select their own investment profiles, and the return on savings depends on market trends. Danica Pension also offers Danica Traditionel. This product does not offer individual investment profiles, and Danica Pension sets the rate of interest on policyholders savings. Other Activities encompasses expenses for the Group s support functions and real property. Other Activities also covers eliminations, including the elimination of returns on own shares. Capital is allocated to the individual business units on the basis of each unit s share of the Group s average risk-weighted assets calculated prior to the transition to the Capital Requirements Directive. Insurance companies are subject to special statutory capital requirements. Capital is allocated to the insurance business in compliance with these requirements. Expenses are allocated to the business units at market price level. Other Activities supplies services to business units, and transactions are settled at unit prices or on an arm s-length basis, if possible, on the basis of consumption and activity. Assets and liabilities are broken down into business unit operations and presented in the business unit sections.

17 DANSKE BANK INTERIM REPORT FIRST HALF /65 BRANCHES 578 Banking Activities EMPLOYEES 13,201 PRE-TAX PROFIT DKK 173 MILLION BANKING ACTIVITIES First half First half Index Q2 Q1 Q4 Q3 Q2 Full year / Net interest income 12,295 11, ,159 6,136 6,150 5,964 5,724 23,307 Net fee income 3,246 3, ,634 1,612 1,666 1,542 1,648 6,533 Net trading income ,386 Other income 1,590 1, ,326 Total income 17,839 16, ,974 8,865 8,982 8,638 8,630 34,552 Expenses 10,672 10, ,581 5,091 5,537 4,788 5,316 20,801 Profit before loan impairment charges 7,167 6, ,393 3,774 3,445 3,850 3,314 13,751 Loan impairment charges 6,994 5, ,052 3,942 4,817 3,552 3,148 14,241 Profit before tax , Loans and advances (end of period) 1,695,428 1,668, ,695,428 1,689,265 1,698,833 1,688,201 1,668,455 1,698,833 Allowance account, total (end of period) 51,123 41, ,123 48,943 45,837 44,486 41,853 45,837 Deposits (end of period) 680, , , , , , , ,481 Bonds issued by Realkredit Danmark (end of period) 750, , , , , , , ,505 Allocated capital (avg.) 90,568 81, ,997 91,138 91,174 90,383 90,011 86,122 Profit before loan impairment charges as % p.a. of allocated capital Pre-tax profit as % p.a. of allocated capital (ROE) Cost/income ratio (%) Full-time-equivalent staff 13,201 13, ,201 13,351 13,470 13,538 13,524 13,470 Profit before tax of DKK 0.2 billion; excluding Non-core Ireland, profit before tax was DKK 2.5 billion Profit before loan impairment charges of DKK 7.2 billion Net interest income up 10%, mainly because of price increases Loan impairment charges up 19% from the yearearlier level Lending matched the level at the end of 2011, while deposits were down 3% Market conditions The low interest rates in the Group s markets continued to affect the business environment of the banking units in the first half of The ECB kept its rates low in the first six months of the year, while the Danish central bank lowered its certificate of deposit and lending rates independently on 25 May and again on 1 June The central banks in Sweden and Norway also lowered key interest rates in the first half of NON-CORE IRELAND First half Q2 Q Total income Expenses Profit before loan impairment charges Loan impairment charges 2,390 1,374 1,016 Profit before tax -2,285-1, Loans and advances (end of period) 35,812 35,812 36,426 Allowance account, total (end of period) 14,078 14,078 12,894 Deposits (end of period) 1,230 1, Retail Banking Denmark raised lending rates on selected products in early February and again in early April and also announced higher lending rates effective from 15 August. Previously announced measures at Realkredit Danmark were implemented on 1 January After further assessment of its prices, Realkredit Danmark introduced a new pricing structure, primarily for personal customers, on 1 July The Group continued its pricing initiatives to strengthen earnings and offset the effects of low interest rates and rising funding costs.

18 DANSKE BANK INTERIM REPORT FIRST HALF /65 Corporate & Institutional Banking recorded an increase in charges that stemmed mainly from a few exposures to the shipping industry. Loan impairment charges at Banking Activities Ireland declined substantially because of lower charges against facilities to personal customers and consumer industries in the business segment. Operations With the aim of providing market-leading advisory services through efficient and profitable channels, the Group began restructuring the Danish branch network in the first half of Retail Banking Norway and Retail Banking Sweden raised selected lending rates in the autumn of 2011 as part of a general repricing initiative. In addition, Retail Banking Norway adjusted margins and loan fees in the first half of Both units are striving to achieve a better balance between loans and deposits to minimise funding costs. Retail Banking Finland continued to suffer from low European interest rates, and rising funding costs prompted the unit to adjust the prices of new home loans and other types of new property loans. The Irish and Northern Ireland economies remained under pressure, and interest rates were low. Banking Activities Ireland repriced home loans in the fourth quarter of 2011, with full effect in the first half of Banking Activities Northern Ireland adjusted the prices of loans for both personal and business customers. The Baltic economies benefited from an improved business environment in the first half of Corporate & Institutional Banking saw increasing lending volumes and slightly increasing lending margins. Deposits declined towards the end of the period, mainly because of a reduction of the Group s credit rating. Financial summary At DKK 17.8 billion, the total income of Banking Activities rose 5% from the level in the first half of 2011, mainly because of higher net interest income. Net interest income amounted to DKK 12.3 billion, up 10% from the level in the first half of The main driver of this trend was a general rise in lending margins resulting from price increases. The Group benefited from higher margins on lending to both personal and business customers. Loan impairment charges rose DKK 1.1 billion from the year-earlier level. Retail Banking Denmark saw a general deterioration in customer credit quality, while To an increasing degree, customers are handling dayto-day banking transactions themselves through online, mobile and tablet banking solutions and the contact centre, which is open 24/7 year round. The Group is reducing the number of branches and developing large advisory centres. With intensive knowledge sharing among advisers, the centres will deliver services that meet the increasing demands of customers. In Denmark, the Group is introducing a new structure with four regions: Central-North Jutland, South Denmark, Zealand and Copenhagen. During the first half of 2012, the Group closed 67 branches (31 in Denmark) and thus had 578 branches at the end of June Branch closures are expected to continue throughout All units continue to focus on improving customer satisfaction. The units regularly follow up on customer experience, and customer recommendations are monitored and translated into operations improvements. The Group also continues its efforts to develop strong self-service solutions to enable customers to carry out even more transactions at their convenience. Non-core Ireland In the first half of 2012, the Group started the process of transferring non-core customers of Banking Activities Ireland to a separate unit. This process has been carried out as planned. Non-core Ireland had a loss before tax of DKK 2.3 billion. Lending, consisting mainly of commercial and investment property loans, including loans to personal customers exposed to investment property, totalled DKK 35.8 billion. Deposits came to DKK 1.2 billion. Market shares In its core markets, the Group generally maintained its shares of lending at first-half 2011 levels. The market shares of deposits were challenged by keener competition in some markets. The units in Finland and Sweden saw a fall, mainly because of increased competition for business customer deposits.

19 DANSKE BANK INTERIM REPORT FIRST HALF /65 In Norway, the market share of deposits improved, mainly because of an increase in public-sector deposits. MARKET SHARE OF LENDING 30 June 30 June (%) Denmark (including mortgage loans) Finland Sweden Norway MARKET SHARE OF DEPOSITS 30 June 30 June (%) Denmark Finland Sweden Norway Changes in statistical reporting at Statistics Norway have made it impossible to update market shares for Norway at 30 June The latest figures therefore show the market shares at 31 March 2012.

20 DANSKE BANK INTERIM REPORT FIRST HALF /65 EMPLOYEES 841 TOTAL INCOME DKK 4,989 MILLION PRE-TAX PROFIT DKK 3,390 MILLION Danske Markets and Treasury DANSKE MARKETS AND TREASURY First half First half Index Q2 Q1 Q4 Q3 Q2 Full year / Total income 4,989 4, ,064 2,925 1, ,049 5,716 Expenses 1,574 1, ,652 Profit before loan impairment charges 3,415 3, ,365 2, ,367 3,064 Loan impairment charges ,033 Profit before tax 3,390 3, ,313 2, ,763 4,097 Due from credit institutions and repo loans (end of period) 414, , , , , , , ,068 Loans and advances (end of period) 53,679 40, ,679 42,388 44,330 46,407 40,671 44,330 Allowance account, total (end of period) 2,702 2, ,702 2,498 2,599 2,518 2,583 2,599 Net trading and investment portfolio (end of period) 407, , , , , , , ,235 Deposits (end of period) 58, , ,554 85,547 97,412 96, ,854 97,412 Allocated capital (avg.) 12,263 7, ,737 11,789 10,693 10,435 8,303 8,883 Profit before loan impairment charges as % p.a. of allocated capital Pre-tax profit as % p.a. of allocated capital (ROE) Cost/income ratio (%) PROFIT BEFORE TAX Danske Markets 3,372 2, ,011 2, ,119 3,835 Group Treasury Total Danske Markets and Treasury 3,390 3, ,313 2, ,763 4,097 Satisfactory and increasing net trading income Strong customer activity and a better environment for hedging transactions High level of customer satisfaction Danske Markets is the leading fixed-income and derivatives trader in the Nordic region In the first quarter of 2012, expectations of a controlled solution to the Greek debt problems and central banks provision of emergency liquidity improved market sentiment. But when support for the crisis measures negotiated by the EU and the IMF in particular waned and expectations of economic growth both in and outside Europe faded in the second quarter, uncertainty in the financial markets deepened. At DKK 3.4 billion, profit before tax at Danske Markets and Treasury matched the year-earlier figure. Expenses rose 11% from the year-earlier level, mainly because of higher performance-based compensation at Danske Markets. Danske Markets posted a pre-tax profit of DKK 3.4 billion, significantly above the year-earlier level. Increased customer activity and better conditions for hedging between the euro and Nordic currencies fuelled the positive trend. Trading activity in derivatives and government and mortgage bonds in particular was stronger and generated better earnings. Debt capital market activity also grew. The increase in earnings was driven by both primary and secondary activities. The Prospera research institute conducted customer satisfaction surveys on the Nordic fixedincome and derivatives markets in the period, and Danske Markets was the highest-rated broker in these markets. Group Treasury s pre-tax profit was down DKK 0.8 billion from the year-earlier level. The main reason was higher funding costs. In the second quarter, Group Treasury posted an extraordinary gain of DKK 0.4 billion through an adjustment of the Group s pension plans. The Group s net exposure to southern European government bonds is limited, and market value fluctuations have little effect on net trading income. The Group s average VaR (10-day horizon, confidence level of 95%) was DKK 251 million, against DKK 261 million in the first half of 2011.

21 DANSKE BANK INTERIM REPORT FIRST HALF /65 EMPLOYEES 569 Danske Capital PRE-TAX PROFIT DKK 319 MILLION MARKET SHARE IN THE NORDIC REGION 10.6% DANSKE CAPITAL First half First half Index Q2 Q1 Q4 Q3 Q2 Full year / Net interest income Net fee income ,795 Other income Total income ,980 Expenses ,093 Profit before loan impairment charges Loan impairment charges Profit before tax Loans and advances (end of period) 5,937 6, ,937 6,279 6,075 6,266 6,293 6,075 Allowance account, total (end of period) Deposits (end of period) 5,428 6, ,428 5,778 5,700 6,584 6,424 5,700 Allocated capital (avg.) Cost/income ratio (%) Assets under management (DKK billions) Profit before loan impairment charges down 11% Above-benchmark returns for 73% of Danske Invest funds All Danske Invest funds have now migrated to the shared IT platform In the first half of 2012, total income at Danske Capital amounted to DKK 859 million, down 7% from DKK 924 million in the first half of One reason for the fall was a shift in the mix of assets under management. In the first half of 2012, 73% of Danske Capital s mutual funds posted above-benchmark returns. Of the bond-based funds, 82% delivered above-benchmark returns. For equity-based funds, the figure was 69%. Some 47% of Danske Invest funds ranked in the top third of European funds in their categories. Total expenses declined 4%, mainly because of lower costs for performance-based compensation. At 30 June 2012, assets under management amounted to DKK 636 billion, up DKK 30 billion from the level at 31 December Net sales to institutional and retail banking customers amounted to DKK 10.6 billion in the first half of Developments in the financial markets led to total capital gains of DKK 19.4 billion. Net sales of DKK 10.6 billion break down into inflows of DKK 6.8 billion from retail banking customers and inflows of DKK 3.8 billion from institutional clients. Danske Capital s share of the Nordic mutual fund market, measured by asset value, was 10.6% at the end of June, down 1.3 percentage points from the level at the end of The main reason for the decline was the loss of one large administrative mandate.

22 DANSKE BANK INTERIM REPORT FIRST HALF /65 EMPLOYEES 813 Danica Pension INCOME DKK 883 MILLION TOTAL PREMIUMS DKK 12,604 MILLION DANICA PENSION First half First half Index Q2 Q1 Q4 Q3 Q2 Full year / Danica Traditionel ,120 Unit-linked business Health and accident business Return on investments Financing result Special allotment Change in shadow account , ,158 Net income from insurance business Premiums, insurance contracts 10,099 10, ,634 5,465 5,596 4,786 4,973 20,547 Premiums, investment contracts 2,505 4, ,082 1,423 1,681 1,016 2,076 6,730 Provisions, insurance contracts 250, , , , , , , ,304 Provisions, investment contracts 26,463 24, ,463 27,108 24,540 22,302 24,770 24,540 Customer funds, investment assets Danica Traditionel 191, , , , , , , ,699 Danica Balance 33,179 25, ,179 31,844 28,596 25,527 25,410 28,596 Danica Link 50,330 46, ,330 50,927 47,201 42,622 46,438 47,201 Allocated capital (avg.) 9,158 5, ,123 9,192 9,048 8,778 5,822 7,362 Net income as % p.a. of allocated capital Net income from insurance business of DKK 0.9 billion Total premiums down 11% to DKK 12.6 billion, mainly because of a fall in Swedish premiums Total Danish premiums down 5% Expense ratio at the Danish unit down from 4.8% to 4.5% The Group s insurance business generated income of DKK 883 million, against DKK 328 million a year earlier. The booking of the risk allowance for three of the four interest rate groups had a positive effect on income. The Danish Ministry of Business and Growth reached an agreement with the insurance and pension industry under which the discount yield curve used for long yields was changed. The agreement took effect on 12 June The change aligns Danish rules with the coming Solvency II rules and caused a reduction of Danica Pension s life insurance provisions of DKK 1.3 billion at 30 June The amount that may be drawn on the bonus potential of paid-up policies to cover capital losses was increased by DKK 1.1 billion. The agreement also places a ceiling of 2% on the rate of interest on policyholders savings until 1 January 2014 and limits the possibility of distributing dividends to shareholders. The agreement was a response to the pressure on the fixed-income markets that arose because of a lack of confidence in the euro towards the end of the first half of Long European yields fell to a record-low level. Investor interest in Danish government bonds lowered Danish government bond yields further. The low yields increased pension companies need for hedging, and since the European market for long-dated bonds was not liquid, this demand pushed long yields further down. The investment return on equity was 1.1%, and the investment return on customer funds in Danica Traditionel was 4.8%. Including changes in technical provisions, the return on customer funds was 3.6%. The return on the market-based products, Danica Balance and Danica Link, was DKK 2.6 billion, or an average rate of return of 5.1%. The result for the unit-linked (market-based) business was at the year-earlier level. In Denmark, income was down slightly from the year-earlier level because of keener competition that resulted in lower prices for Danish business customers. The result for the health and accident business was lower than in the first half of 2011 because of the higher claims ratio resulting from the lower prices for Danish business customers. Moreover, the health and accident result for the first half of 2012 did not benefit from run-off gains on claims, while the result for the first half of 2011 included gains of DKK 50 million.

23 DANSKE BANK INTERIM REPORT FIRST HALF /65 Total premiums were down 11% from the level in the first half of Total Danish premiums fell 5%, but regular premiums were up 1%. In the first half of 2011, premiums were higher because of two new large company pension schemes, while premiums in the first half of 2012 were affected by Danica Pension s decision not to participate in tenders with unrealistically low prices. At the Swedish unit, premiums fell 34%. The decline in Sweden occurred because at the end of 2011 Swedish banks introduced a product similar to Danica Pension s custody account savings product but priced much lower. At the Norwegian unit, premiums grew DKK 0.3 billion, partly because of sales through new distribution channels. At 30 June 2012, the collective bonus potential for the contribution groups stood at DKK 1.5 billion, or DKK 1.1 billion above the level at 1 January Danica Pension also reduced by DKK 1.6 billion to DKK 0.2 billion the amount drawn on the bonus potential of paid-up policies to cover losses in The amount drawn relates to one interest rate group only. Including a capital buffer of DKK 9.7 billion, Danica Pension s total financial strength stood at DKK 11.2 billion. The continued decline in yields in the spring made the Danish FSA focus on the traffic light stresstesting scenarios for pension companies and request additional reporting. Danica Pension has always been in the green light scenario. For Danica Pension to book the full risk allowance to income in 2012, each interest rate group must have an investment return of 1-5% in the remainder of 2012, assuming that the moving yield spread between Danish and German government bonds used in the calculation of the discount yield curve narrows to zero during the second half of 2012.

24 DANSKE BANK INTERIM REPORT FIRST HALF /65 EMPLOYEES 5,573 PRE-TAX PROFIT DKK -674 MILLION Other Activities OTHER ACTIVITIES First half First half Index Q2 Q1 Q4 Q3 Q2 Full year / Net interest income Net fee income Net trading income Other income Total income Expenses 708 1, ,441 Profit before loan impairment charges , Loan impairment charges Profit before tax , PROFIT BEFORE TAX Real property Own shares Other, including Group support functions , ,421 Total Other Activities , Other Activities posted a loss before tax of DKK 0.7 billion, against a loss before tax of DKK 1.1 billion in the first half of In the first half of 2012, the elimination of returns on own shares led to a capital loss of DKK 32 million, against a capital gain of DKK 158 million in the year-earlier period. Other income amounted to DKK 44 million, against DKK 225 million a year earlier. In 2011, the item benefited particularly from a refund of excess VAT paid in previous years. Expenses amounted to DKK 0.7 billion, against DKK 1.6 billion in the first half of The item fell mainly because the Group recognised an estimated commitment of DKK 1.1 billion to the Danish Guarantee Fund for Depositors and Investors in the first half of 2011 and because writedowns of the assets of a temporarily acquired company were adjusted by DKK 0.1 billion. Expenses for the first half of 2012 included a charge of DKK 0.5 billion related to the rights to use the Sampo Bank brand name.

25 DANSKE BANK INTERIM REPORT FIRST HALF /65 Income statement Danske Bank Group First half First half Q2 Q2 Full year Interest income 40,362 38,997 19,982 19,815 80,819 Interest expense 22,548 22,870 11,000 11,729 47,478 Net interest income 17,814 16,127 8,982 8,086 33,341 Fee income 5,802 6,014 2,761 2,885 11,760 Fee expenses 1,987 2,102 1,010 1,052 4,034 Net trading income 6,138 2, ,021-3,326 Other income 2,581 2,767 1,488 1,306 5,469 Net premiums 10,000 10,060 4,677 5,019 20,475 Net insurance benefits 14,986 11,058 4,070 5,375 18,705 Income from associates Profit on sale of associates and group undertakings Staff costs and administrative expenses 12,236 13,091 6,167 6,301 24,280 Amortisation, depreciation and impairment charges 2,085 1, ,451 Profit before loan impairment charges 11,122 9,174 5,619 4,834 17,390 Loan impairment charges 7,031 5,594 3,109 2,753 13,185 Profit before tax 4,091 3,580 2,510 2,081 4,205 Tax 1,805 1,673 1, ,482 Net profit for the period 2,286 1,907 1,503 1,200 1,723 Portion attributable to shareholders of Danske Bank A/S (the Parent Company) 2,287 1,895 1,504 1,186 1,712 non-controlling interests Net profit for the period 2,286 1,907 1,503 1,200 1,723 Earnings per share (DKK) Diluted earnings per share (DKK) Proposed dividend per share (DKK) Earnings per share and diluted earnings per share for 2011 have been divided by a factor of to reflect the share capital increase in April 2011.

26 DANSKE BANK INTERIM REPORT FIRST HALF /65 Statement of comprehensive income Danske Bank Group First half First half Q2 Q2 Full year Net profit for the period 2,286 1,907 1,503 1,200 1,723 Other comprehensive income Translation of units outside Denmark Hedging of units outside Denmark Unrealised value adjustments of available-for-sale financial assets Realised value adjustments of available-for-sale financial assets Tax on other comprehensive income Total other comprehensive income Total comprehensive income for the period 2,410 1,503 1, ,035 Portion attributable to shareholders of Danske Bank A/S (the Parent Company) 2,411 1,491 1, ,024 non-controlling interests Total comprehensive income for the period 2,410 1,503 1, ,035

27 DANSKE BANK INTERIM REPORT FIRST HALF /65 Balance sheet Danske Bank Group 30 June 31 Dec. 30 June ASSETS Cash in hand and demand deposits with central banks 36,906 28,617 20,444 Due from credit institutions and central banks 154, , ,088 Trading portfolio assets 862, , ,915 Investment securities 105, , ,061 Loans and advances at amortised cost 1,242,280 1,126,482 1,168,498 Loans at fair value 721, , ,403 Assets under pooled schemes and unit-linked investment contracts 65,377 61,888 64,956 Assets under insurance contracts 237, , ,203 Holdings in associates 1, ,028 Intangible assets 21,603 22,233 22,456 Investment property 4,256 4,624 4,797 Tangible assets 6,756 7,267 7,313 Current tax assets ,207 Deferred tax assets 1,891 1,791 1,865 Other assets 18,078 18,634 17,827 Total assets 3,480,722 3,424,403 3,127,061 LIABILITIES Due to credit institutions and central banks 515, , ,167 Trading portfolio liabilities 628, , ,391 Deposits 854, , ,546 Bonds issued by Realkredit Danmark 596, , ,808 Deposits under pooled schemes and unit-linked investment contracts 73,368 69,211 69,852 Liabilities under insurance contracts 258, , ,074 Other issued bonds 316, , ,409 Current tax liabilities Deferred tax liabilities 6,793 6,278 6,587 Other liabilities 39,909 41,428 36,547 Subordinated debt 62,584 67,328 72,288 Total liabilities 3,352,604 3,298,548 3,001,093 SHAREHOLDERS' EQUITY Share capital 9,317 9,317 9,317 Foreign currency translation reserve Reserve for available-for-sale financial assets -2,036-2,253-1,572 Retained earnings 121, , ,404 Proposed dividends Shareholders of Danske Bank A/S (the Parent Company) 128, , ,915 Non-controlling interests Total shareholders' equity 128, , ,968 Total liabilities and equity 3,480,722 3,424,403 3,127,061

28 Statement of capital Danske Bank Group DANSKE BANK INTERIM REPORT FIRST HALF /65 Changes in shareholders' equity Shareholders of Danske Bank A/S (the Parent Company) Foreign Reserve for currency available- Non- Share translation for-sale Retained Proposed controlling capital reserve assets earnings dividends Total interests Total Shareholders' equity at 1 January , , , , ,855 Net profit for the period ,287-2, ,286 Other comprehensive income Translation of units outside Denmark Hedging of units outside Denmark Unrealised value adjustments of available-for-sale financial assets Realised value adjustments of available-for-sale financial assets Tax on other comprehensive income Total other comprehensive income Total comprehensive income for the period ,321-2, ,410 Transactions with owners Dividends paid Share capital increase Share offering costs Acquisition of own shares , , ,719 Sale of own shares ,599-7,599-7,599 Share-based payments Acquisition of non-controlling interests Tax on entries on shareholders' equity Shareholders' equity at 30 June , , , , ,118 Shareholders' equity at 1 January , ,330 99, , ,742 Net profit for the period ,895-1, ,907 Other comprehensive income Translation of units outside Denmark Hedging of units outside Denmark Unrealised value adjustments of available-for-sale financial assets Realised value adjustments of available-for-sale financial assets Tax on other comprehensive income Total other comprehensive income Total comprehensive income for the period ,831-1, ,503 Transactions with owners Dividends paid Share capital increase 2, ,703-20,032-20,032 Share offering costs Acquisition of own shares , , ,072 Sale of own shares ,989-9,989-9,989 Share-based payments Acquisition of non-controlling interests Tax on entries on shareholders' equity Shareholders' equity at 30 June , , , , ,968 For as long as the Danish state holds hybrid capital in Danske Bank and guarantees bond issues, Danske Bank A/S may distribute dividends if such dividends can be paid in full out of the net profit. 30 June 31 Dec. 30 June Share capital (DKK) 9,317,390,340 9,317,390,340 9,317,390,340 Number of shares 931,739, ,739, ,739,034 Number of shares outstanding 925,590, ,111, ,284,829 Average number of shares outstanding for the period 926,668, ,181, ,532,517 Average number of shares outstanding, including dilutive shares, for the period 926,668, ,181, ,534,149 The number of shares outstanding, the average number of shares outstanding for the period, and the average number of shares outstanding, including dilutive shares, for the period have been adjusted for the share capital increase in April 2011.

29 DANSKE BANK INTERIM REPORT FIRST HALF /65 Statement of capital Danske Bank Group 30 June 31 Dec. 30 June Capital base and total capital ratio Shareholders' equity 128, , ,968 Revaluation of domicile property at fair value 1,247 1,281 1,258 Pension obligations at fair value Tax effect Reserves in undertakings consolidated on a pro rata basis 3,002 2,991 2,991 Shareholders' equity calculated in accordance with the rules of the Danish FSA 132, , ,029 Expected dividends Intangible assets of banking operations -21,485-22,127-22,308 Deferred tax assets -1,865-1,600-1,781 Deferred tax on intangible assets ,005 Revaluation of domicile property Other statutory deductions Core tier 1 capital 107, , ,638 Hybrid capital 40,612 42,366 41,501 Difference between expected losses and impairment charges Statutory deduction for insurance subsidiaries -4,230-4,175-3,966 Other statutory deductions Tier 1 capital 144, , ,173 Subordinated debt, excluding hybrid capital 17,535 20,480 21,534 Hybrid capital Revaluation of domicile property Difference between expected losses and impairment charges Statutory deduction for insurance subsidiaries -4,230-4,175-3,966 Other statutory deductions Capital base 158, , ,418 Risk-weighted assets 892, , ,293 Core tier 1 capital ratio (%) Tier 1 capital ratio (%) Total capital ratio (%) The total capital and tier 1 capital ratios have been calculated in accordance with the Capital Requirements Directive. Risk-weighted assets calculated under the Basel I rules amounted to DKK 1,451.9 billion at 30 June 2012 (31 December 2011: DKK 1,414.6 billion). The solvency need, calculated on the basis of the transitional rules, was DKK 92.9 billion (31 December 2011: DKK 90.5 billion), equal to 80% of the capital requirement of 8% of risk-weighted assets.

30 DANSKE BANK INTERIM REPORT FIRST HALF /65 Cash flow statement Danske Bank Group First half First half Full year Cash flow from operations Profit before tax 4,091 3,580 4,205 Tax paid -1,298-1, Adjustment for non-cash operating items 7,025 7,120 17,259 Cash flow from operating capital -21, ,530-83,447 Total -11, ,152-62,654 Cash flow from investing activities Acquisition/sale of businesses Acquisition/sale of own shares Acquisition of intangible assets Acquisition/sale of tangible assets Total Cash flow from financing activities Changes in subordinated debt and hybrid capital -5,008-3,648-10,850 Dividends Share capital increase - 19,762 19,761 Change in non-controlling interests Total -5,070 16,152 8,956 Cash and cash equivalents at 1 January 206, , ,607 Change in cash and cash equivalents -17, ,358-54,310 Cash and cash equivalents, end of period 189, , ,297

31 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Note 1 Critical accounting policies and estimates The Danske Bank Group s interim report for the first half of 2012 has been prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU, and additional Danish disclosure requirements for interim reports of listed financial institutions. The Group has not changed its significant accounting policies from those followed in Annual Report 2011, which provides a full description of the Group s significant accounting policies. Management s estimates and assumptions of future events that will significantly affect the carrying amounts of assets and liabilities underlie the preparation of the consolidated financial statements. The estimates and assumptions that are deemed critical to the consolidated financial statements are the fair value measurement of financial instruments the measurement of loans and advances the measurement of goodwill the measurement of liabilities under insurance contracts and the net obligation for defined benefit pension plans the recognition of deferred tax assets The estimates and assumptions are based on premises that management finds reasonable but which are inherently uncertain and unpredictable. The premises may be incomplete, unexpected future events or situations may occur, and other parties may arrive at other estimated values. Fair value measurement of financial instruments Critical estimates are not used for measuring the fair value of financial instruments where the value is based on prices quoted in an active market or on generally accepted models employing observable market data. Measurements of financial instruments that are only to a limited extent based on observable market data, such as the measurement of unlisted shares and certain bonds for which there is no active market, are subject to estimates. At 30 June 2012, financial instruments measured on the basis of non-observable input accounted for around 0.8% of total assets. Measurement of loans and advances The Group makes impairment charges to account for any impairment of loans and advances that occurs after initial recognition. Impairment charges consist of individual and collective charges and rely on a number of estimates, including identification of loans or portfolios of loans with objective evidence of impairment, expected future cash flows and the value of collateral. The Group determines the need for impairment charges on the basis of the customer s expected ability to repay debt. This ability depends on a number of factors, including the customer s earnings capacity and trends in general economic growth and unemployment. Expectations of deteriorating repayment ability reduce credit quality and lead to downgrading of the customer. If all customers were downgraded one rating category, collective impairment charges would increase by about DKK 6.6 billion. The losses incurred under non-performing loan agreements depend, among other factors, on the value of collateral received. If the value of collateral decreased 10%, individual impairment charges would increase by about DKK 4 billion. At 30 June 2012, loans and advances accounted for around 56% of total assets. Measurement of goodwill Goodwill on acquisition is tested for impairment at least once a year. Impairment testing requires management to estimate future cash flows from acquired units. A number of factors affect the value of such cash flows, including discount rates, changes in the real economy, customer behaviour and competition. Goodwill is particularly sensitive to changes in impairment test assumptions about the normalised long-term return. If this return was lowered 20%, goodwill would decrease DKK 0.3 billion. Note 23 of Annual Report 2011 contains further information about impairment tests and sensitivities. At 30 June 2012, goodwill amounted to DKK 18.7 billion, or less than 1% of total assets. Measurement of liabilities under insurance contracts and the net obligation for defined benefit pension plans Calculations of liabilities under insurance contracts and the net obligation for defined benefit pension plans are based on a number of actuarial computations that rely on assumptions about a number of variables, including mortality and disability rates and salary increases. The calculations are particularly sensitive to changes in the discount rate. The discount rate used for calculating liabilities under insurance contracts is based on the discount yield curve. The discount yield curve is fixed on the basis of a zero-coupon yield curve estimated on the basis of euro swap market rates to which is added the yield spread between Danish and German government bonds and a mortgage yield curve spread. Since the end of 2011, the yield spread has been calculated as a 12-month moving average. In response to the extraordinarily low yields on the fixed-income markets, the Danish Ministry of Business and Growth reached an agreement with the insurance and pension industry under which the discount yield curve used for long yields was changed. The agreement took effect on 12 June The change aligns Danish rules with the coming Solvency II rules and caused a reduction of Danica Pension s life insurance provisions of DKK 1.3 billion at 30 June Page 159 of Annual Report 2011 contains a sensitivity analysis of liabilities under insurance contracts. The discount rate used for calculating the net obligation for defined benefit plans is based on the market rate of highquality corporate bonds with maturities similar to the maturity of the pension obligations. If the discount rate was lowered one percentage point, the net obligation would increase by DKK 2.5 billion, with DKK 1.3 billion falling within the corridor method s threshold value. The remaining DKK 1.2 billion would be expensed over the next ten years. At 30 June 2012, liabilities under insurance contracts and the net obligation for defined benefit pension plans accounted for around 7% of total liabilities. Recognition of deferred tax assets Deferred tax assets arising from unused tax losses are recognised to the extent that such losses can be offset against

32 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Note 1 tax on future profit. Recognition of deferred tax assets requires management to assess the probability and amount of (cont d) future taxable profit at units with unused tax losses. At 30 June 2012, deferred tax assets stood at DKK 1.4 billion, or 0.04% of total assets. The tax base of unrecognised tax loss carry-forwards, relating primarily to the Group s banking operations in Ireland, amounted to DKK 2.1 billion. Annual Report 2011 and Risk Management 2011 provide a detailed description of the Group s significant risks and the external factors that may affect the Group. Risk Management 2011 is not covered by the statutory audit. Standards and interpretations not yet in force The International Accounting Standards Board (IASB) has issued a number of amendments to the International Financial Reporting Standards (IFRSs) that have not yet come into force. Similarly, the International Financial Reporting Interpretations Committee (IFRIC) has issued a new interpretation that has not yet come into force. The sections below explain the changes that are likely to affect the Group s financial reporting. In October 2010, the IASB reissued IFRS 9, Financial Instruments. The aim of the reissuance project is, once the amendments to IFRS 9 are completed, to let the standard replace IAS 39 in its entirety. IFRS 9 now provides principles for classification and derecognition of financial instruments. Principles for impairment and hedge accounting are expected to follow in 2012 or The IASB is also considering certain amendments to the classification principles. The transitional rules of the amended IFRS 9 prescribe implementation of the standard by The EU has decided to postpone adoption of the amended IFRS 9 until all details of the standard are known. Under the current IFRS 9, financial assets are classified on the basis of the business model adopted for managing the assets and on the basis of their contractual cash flow characteristics, including any embedded derivatives (unlike IAS 39, IFRS 9 no longer requires bifurcation). Assets held with the objective of collecting contractual cash flows that are solely payments of principal and interest are measured at amortised cost. Other assets are measured at fair value through profit or loss. Equities may be measured at fair value through Other comprehensive income, however, and a business may opt for fair value adjustment of its loans, advances, etc. provided it satisfies certain requirements. The principles applicable to financial liabilities are largely unchanged from IAS 39. In general, financial liabilities are still measured at amortised cost with bifurcation of embedded derivatives not closely related to a host contract. Financial liabilities measured at fair value comprise derivatives, the trading portfolio and liabilities designated at fair value through profit or loss. Value adjustments relating to the inherent credit risk of financial liabilities designated at fair value are, however, recognised in Other comprehensive income unless this leads to an accounting mismatch. IFRS 9 incorporates the existing derecognition principles of IAS 39. The Group does not expect the amended IFRS 9 to materially affect the measurement of its financial instruments, although the standard does not allow the classification of bonds as available-for-sale assets. Such instruments are measured at amortised cost or fair value through profit or loss. Meaningful classification of financial instruments is not possible without information about the future parts of IFRS 9 to clarify the overall accounting effects of the standard. The IASB ended its project on consolidation in May 2011 by issuing a number of new International Financial Reporting Standards (IFRS 10, IFRS 11 and IFRS 12) and revised standards (IAS 27 and IAS 28). With these standards, the IASB has established a uniform definition of control to be used for determining whether an entity should be consolidated and enhanced disclosure requirements for consolidated and nonconsolidated entities, joint arrangements and associates. The standards, which have not yet been adopted by the EU, must be implemented in 2013, at the latest. The Group does not expect the new requirements to significantly change its consolidation of businesses. In May 2011, the IASB issued IFRS 13, Fair Value Measurement. The standard introduces a new definition of fair value and provides guidance on how to measure fair value as well as disclosure requirements for fair value. IFRS 13 applies when another standard requires fair value to be used or disclosed. The standard, which has not yet been adopted by the EU, must be implemented in 2013, at the latest. The Group does not expect IFRS 13 to significantly affect its financial results. In June 2011, the IASB reissued IAS 19, Employee Benefits. The amended standard eliminates the option of deferring the recognition of actuarial gains and losses on defined benefit pension plans, known as the corridor method. The present value of pension obligations and the fair value of plan assets must be recognised in the balance sheet instead. The amended standard must be implemented in 2013, at the latest. At 30 June 2012, the new requirements would have decreased shareholders equity by DKK 267 million (the amount deferred under the corridor method net of tax). The effect on net profit will be immaterial as actuarial gains and losses are recognised in Other comprehensive income. The other comprehensive income and shareholders equity items will become more volatile, though. The statement of capital will not be affected as it is already prepared without the use of the corridor method. In December 2011, the IASB clarified the IAS 32 requirements for offsetting financial instruments. The clarification is expected to increase the offsetting of positive and negative market values of derivatives. The IASB also enhanced its IFRS 7 disclosure requirements to include both gross and net amounts when offsetting financial instruments and rights to additional set-off in the event of counterparty default. The changes, which have not yet been adopted by the EU, must be implemented in 2014 and 2013, respectively.

33 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Note 2 Business segments first half 2012 Banking Danske Markets Danske Danica Other Elimina- Reclassi- Activities and Treasury Capital Pension Activities tions Total fication Highlights Net interest income 12,295 2, , ,814-5,424 12,390 Net fee income 3, , ,013 Net trading income 708 2, , , ,684 Other income 1, , ,634 Net premiums , ,000-10,000 - Net insurance benefits , ,986-14,986 - Income from equity investments Net income from insurance business Total income 17,839 4, , , ,604 Expenses 10,672 1, , , ,482 Profit before loan impairment charges 7,167 3, ,122-11,122 Loan impairment charges 6, ,031-7,031 Profit before tax 173 3, ,091-4,091 Loans and advances, excluding reverse transactions 1,652,403 50,981 5,778-13,024-18,167 1,704,019-1,704,019 Other assets 553,653 6,283,715 20, ,758 84,193-5,472,282 1,776,703-1,776,703 Total assets 2,206,056 6,334,696 26, ,758 97,217-5,490,449 3,480,722-3,480,722 Deposits, excluding repo deposits 680,606 58,554 5,428-3,337-12, , ,918 Other liabilities 1,434,882 6,263,879 20, ,600 78,085-5,478,442 2,616,686-2,616,686 Allocated capital 90,568 12, ,158 15, , ,118 Total liabilities and equity 2,206,056 6,334,696 26, ,758 97,217-5,490,449 3,480,722-3,480,722 Internal income -4,741 2, , Amortisation and depreciation charges 1, ,570 Impairment charges for intangible and tangible assets Reversals of impairment charges Pre-tax profit as % p.a. of allocated capital (avg.) Cost/income ratio (%) Full-time-equivalent staff (avg.) 13, ,563-21,146 In its financial highlights, the Group recognises earnings contributed by Danske Markets as net trading income and earnings contributed by Danica Pension as net income from insurance business. Other income includes earnings contributed by fully consolidated subsidiaries taken over by the Group under non-performing loan agreements and held for sale. The Reclassification column shows the adjustments made to the detailed figures in the calculation of the highlights. The number of full-time equivalent staff does not include about 1,000 employees of fully consolidated subsidiaries taken over by the Group under non-performing loan agreements and held for sale. Internal income and expenses are allocated to the individual segments on an arm s-length basis. Funding costs for lending and deposit activities are allocated on the basis of a maturity analysis of loans and deposits, interbank rates and funding spreads and depend on financial market trends.

34 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Note 2 Business segments first half 2011 (cont'd) Banking Danske Markets Danske Danica Other Elimina- Reclassi- Activities and Treasury Capital Pension Activities tions Total fication Highlights Net interest income 11,193 1, , ,127-4,788 11,339 Net fee income 3, , ,142 Net trading income 667 2, , ,103 3,317 5,420 Other income 1, , ,974 Net premiums , ,060-10,060 - Net insurance benefits , ,058-11,058 - Income from equity investments Net income from insurance business Total income 16,932 4, , ,203 Expenses 10,476 1, , , ,029 Profit before loan impairment charges 6,456 3, , ,174-9,174 Loan impairment charges 5, ,594-5,594 Profit before tax 584 3, , ,580-3,580 Loans and advances, excluding reverse transactions 1,631,615 38,161 6,152-9,975-19,295 1,666,608-1,666,608 Other assets 448,254 4,949,306 15, , ,338-4,487,336 1,460,453-1,460,453 Total assets 2,079,869 4,987,467 21, , ,313-4,506,631 3,127,061-3,127,061 Deposits, excluding repo deposits 690, ,854 6,424-4,645-11, , ,037 Other liabilities 1,307,448 4,878,412 14, , ,474-4,494,792 2,209,056-2,209,056 Allocated capital 81,468 7, ,811 31, , ,968 Total liabilities and equity 2,079,869 4,987,467 21, , ,313-4,506,631 3,127,061-3,127,061 Internal income -7,034 5, Amortisation and depreciation charges 1, ,645 Impairment charges for intangible and tangible assets Reversals of impairment charges Pre-tax profit as % p.a. of allocated capital (avg.) Cost/income ratio (%) Full-time-equivalent staff (avg.) 13, ,784-21,473

35 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Note 3 Banking Activities first half 2012 Northern Non-core Denmark Finland Sweden Norway Ireland Ireland Baltics Other CIB Ireland Total Net interest income 6,270 1,122 1, , ,295 Net fee income 1, ,246 Net trading income Other income ,590 Total income 8,364 1,847 1,745 1, ,206 1, ,839 Expenses 4,565 1, ,672 Profit before loan impairment charges 3, ,167 Loan impairment charges 2, ,390 6,994 Profit before tax 1, , Loans and advances 956, , , ,873 48,043 25,992 19,589 16, ,939 35,812 1,695,428 Credit exposure 965, , , ,068 47,608 24,384 21,906 63, ,955 24,066 1,914,069 Allowance account 18,959 2,082 1,447 1,618 6,158 2,449 1, ,970 14,078 51,123 Profit before loan impairment charges as % p.a. of allocated capital Pre-tax profit as % p.a. of allocated capital (ROE) Cost/income ratio (%) Deposit margin Lending margin Impairment charges as % p.a. of lending and guarantees Banking Activities first half 2011 Net interest income 5,918 1,002 1, ,193 Net fee income 1, ,325 Net trading income Other income ,747 Total income 8,140 1,766 1,574 1, ,108 1,445-16,932 Expenses 4,512 1, ,476 Profit before loan impairment charges 3, ,456 Loan impairment charges 1, , ,872 Profit before tax 2, , Loans and advances 950, , , ,249 48,929 67,861 22,254 16, ,483-1,668,455 Credit exposure 970, , , ,694 48,497 57,603 23,803 42, ,682-1,888,502 Allowance account 16,660 1,890 1,161 1,610 3,856 12,555 2, ,085-41,853 Profit before loan impairment charges as % p.a. of allocated capital Pre-tax profit as % p.a. of allocated capital (ROE) Cost/income ratio (%) Deposit margin Lending margin Impairment charges as % p.a. of lending and guarantees The tables break down the banking activities. As the Non-core Ireland segmentation was made in 2012, comparative figures are not shown.

36 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Note 3 Profit before loan impairment charges (cont'd) First half First half Index Q2 Q1 Q4 Q3 Q2 Full year / Retail Banking Denmark 3,799 3, ,870 1,929 1,953 2,154 1,850 7,735 Retail Banking Finland Retail Banking Sweden ,509 Retail Banking Norway Banking Activities Northern Ireland Banking Activities Ireland Banking Activities Baltics Other Banking Activities Corporate & Institutional Banking ,973 Non-core Ireland Total Banking Activities 7,167 6, ,393 3,774 3,445 3,850 3,314 13,751 Danske Markets and Treasury 3,415 3, ,365 2, ,367 3,064 Danske Capital Danica Pension Other Activities , Total Group 11,122 9, ,619 5,503 5,404 2,812 4,834 17,390 Profit before tax Retail Banking Denmark 1,509 2, ,037 1,108 3,419 Retail Banking Finland Retail Banking Sweden ,307 Retail Banking Norway Banking Activities Northern Ireland ,858 Banking Activities Ireland , ,524-1,490-1,780-5,998 Banking Activities Baltics Other Banking Activities Corporate & Institutional Banking ,229 Non-core Ireland -2, , Total Banking Activities , Danske Markets and Treasury 3,390 3, ,313 2, ,763 4,097 Danske Capital Danica Pension Other Activities , Total Group 4,091 3, ,510 1, ,081 4,205

37 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Note 4 Amortisation, depreciation and impairment charges Expenses for the first half of 2012 include a charge of DKK 0.5 billion relating to name rights because of the rebranding of Sampo Bank as part of the Group s decision to market all its banking operations under the Danske Bank brand name. 5 Contingent liabilities The Group uses a variety of loan-related financial instruments to meet customers financial requirements. Instruments include loan offers and other credit facilities, guarantees and instruments not recognised in the balance sheet. 30 June 31 Dec. 30 June Guarantees Financial guarantees 12,754 12,123 12,228 Mortgage finance guarantees 725 1,537 2,172 Other guarantees 69,131 69,471 72,751 Total 82,610 83,131 87,151 Other contingent liabilities Irrevocable loan commitments shorter than 1 year 55,145 63,013 37,856 Irrevocable loan commitments longer than 1 year 98, , ,094 Other unutilised loan commitments Total 154, , ,685 In addition to credit exposure from lending activities, loan offers made and revocable credit facilities granted by the Group amounted to DKK 345 billion (31 December 2011: DKK 355 billion). These items are included in the calculation of risk-weighted assets in accordance with the Capital Requirements Directive. Owing to its business volume, the Danske Bank Group is continually a party to various lawsuits and disputes. In view of its size, the Group does not expect the outcomes of pending lawsuits and disputes to have any material effect on its financial position. A limited number of employees are employed under terms which grant them, if they are dismissed before reaching their normal retirement age, an extraordinary severance and/or pension payment in excess of their entitlement under ordinary terms of employment. As the sponsoring employer, the Group is liable for the pension obligations of a number of company pension funds. Through participation in the mandatory Danish deposit guarantee scheme, Danish banks make an annual payment of 0.25% of the net deposits covered by the Danish Guarantee Fund for Depositors and Investors. Payments are made to the Fund s bank department until the assets of the scheme exceed 1% of the covered net deposits. When a bank is wound up under the provisions of Danish bank packages 3 and 4, customers covered net deposits are covered by the bank department. If further losses are incurred upon the resolution of a bank after the transfer of its activities to the Financial Stability Company, these are covered by the Fund s winding-up and restructuring department. Danske Bank s share of any loss incurred by this department is just over one third. The Group is the lessee in a number of non-cancellable operating leases, involving mainly leasing of real property, equipment, furniture and fixtures. The Group recognises lease payments as an expense over the lease term but does not recognise the operating lease assets in its balance sheet. Such assets are recognised by the lessors. 6 Repo and reserve transactions In repo transactions, which involve selling securities to be repurchased at a later date, the securities remain in the balance sheet, and the amounts received are recognised as deposits. At 30 June 2012, the fair value of such securities totalled DKK billion (31 December 2011: DKK billion). Counterparties are entitled to sell the securities or deposit them as collateral for loans. In addition, the Group had deposited own bonds worth DKK 55.8 billion as collateral. The amount was eliminated in the financial statements and not recognised in the balance sheet. In reverse transactions, which involve buying securities to be resold at a later date, the Group is entitled to sell the securities or deposit them as collateral for loans. The securities are not recognised in the balance sheet, and amounts paid are carried as loans. At 30 June 2012, the fair value of reverse transaction securities was DKK billion (31 December 2011: DKK billion), of which securities sold or deposited as collateral totalled DKK billion (31 December 2011: DKK billion).

38 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Note 7 Assets deposited as collateral At 30 June 2012, the Group had deposited securities worth DKK 39,527 million as collateral with Danish and international clearing centres and other institutions (31 December 2011: DKK 50,674 million). At 30 June 2012, the Group had provided cash and securities worth DKK 79,677 million as collateral for derivatives transactions (31 December 2011: DKK 71,249 million). The Group had registered assets under insurance contracts worth DKK 286,986 million as collateral for policyholders savings at 30 June 2012 (31 December 2011: DKK 278,858 million). The Group had registered loans at fair value worth DKK 721,637 million and other assets worth DKK 39,867 million as collateral for bonds issued by Realkredit Danmark, including mortgage-covered bonds, at 30 June 2012 (31 December 2011: DKK 720,741 million and DKK 34,514 million, respectively), as well as junior covered bonds issued by Realkredit Danmark. At 30 June 2012, the Group had registered loans and advances worth DKK 233,653 million and other assets worth DKK 7,338 million as collateral for covered bonds issued under Danish and Finnish law (31 December 2011: DKK 198,760 million and DKK 8,108 million, respectively).

39 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Note 8 Fair value information for financial instruments Financial instruments are carried in the balance sheet at fair value or amortised cost. 30 June December 2011 Amortised Amortised Fair value cost Fair value cost Financial assets Cash in hand and demand deposits with central banks - 36,906-28,617 Due from credit institutions and central banks - 154, ,870 Trading portfolio assets 862, ,755 - Investment securities 96,359 9,121 97,866 11,398 Loans and advances at amortised cost - 1,242,280-1,126,482 Loans at fair value 721, ,741 - Assets under pooled schemes and unit-linked investment contracts 65,377-61,888 - Assets under insurance contracts 206, ,888 - Total 1,952,407 1,442,669 1,991,138 1,347,367 Financial liabilities Due to credit institutions and central banks - 515, ,388 Trading portfolio liabilities 628, ,913 - Deposits - 854, ,994 Bonds issued by Realkredit Danmark 596, ,699 - Deposits under pooled schemes and unit-linked investment contracts 73,368-69,211 - Other issued bonds - 316, ,920 Subordinated debt - 62,584-67,328 Other liabilities (irrevocable loan commitments and guarantees) Total 1,298,213 1,749,813 1,324,823 1,677,095 Following a period of decreasing uncertainty in the first months of 2012, the debt crisis triggered renewed market volatility in the remainder of the first half of the year. A high degree of uncertainty reigned in the markets, particularly in southern Europe, while the markets in northern Europe saw historically low interest rates as a result of an inflow of capital. Financial instruments at amortised cost Fair value calculations for financial instruments recognised at amortised cost are affected significantly by estimates as almost all calculations are made on the basis of non-observable input. The Group uses fair value hedge accounting for most of its interest rate risk. Fair value adjustments to the credit risk on loans and advances measured at amortised cost are recognised in loan impairment charges. General trends in the financial markets have occasioned a narrowing of bond credit spreads, causing the fair value of bonds issued by the Group and measured at amortised cost to increase from 96.1% of the amortised cost at 31 December 2011 to 96.9% at 30 June The loss that would arise from redemption at the higher fair value is not recognised in the income statement. Financial instruments at fair value Note 43 of Annual Report 2011 provides more information about fair value calculation methods for financial instruments. Financial instruments valued on the basis of quoted prices in an active market are recognised in the Quoted prices category. Financial instruments valued substantially on the basis of other observable input are recognised in the Observable input category. This category covers instruments such as derivatives valued on the basis of observable yield curves and exchange rates and illiquid mortgage bonds valued by reference to the value of similar, liquid bonds. Other financial instruments are recognised in the Non-observable input category. This category covers instruments such as unlisted shares and derivatives, and valuation relies on extrapolation of yield curves, correlations or other model input of material importance to valuation. Developments in the financial markets did not result in any significant reclassification of bonds between the Quoted prices and Observable input categories in the first half of 2012.

40 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Note 8 Quoted Observable Non-observable (cont'd) 30 June 2012 prices input input Total Financial assets Derivatives 4, ,512 18, ,720 Trading portfolio bonds 372,982 8, ,894 Trading portfolio shares ,324 Investment securities, bonds 80,150 13,262-93,412 Investment securities, shares 184-2,763 2,947 Loans at fair value - 721, ,637 Assets under pooled schemes and unit-linked investment contracts 65, ,377 Assets under insurance contracts, bonds 142,721 4, ,881 Assets under insurance contracts, shares 45, ,657 51,571 Assets under insurance contracts, derivatives 3,134 4,510-7,644 Total 715,422 1,209,491 27,494 1,952,407 Financial liabilities Derivatives 4, ,101 18, ,135 Obligations to repurchase securities 167, ,873 Bonds issued by Realkredit Danmark 596, ,837 Deposits under pooled schemes and unit-linked investment contracts - 73,368-73,368 Total 768, ,469 18,969 1,298, December 2011 Financial assets Derivatives 3, ,305 17, ,970 Trading portfolio bonds 348,141 9, ,094 Trading portfolio shares Investment securities, bonds 86,374 8,772-95,146 Investment securities, shares 133-2,587 2,720 Loans at fair value - 720, ,741 Assets under pooled schemes and unit-linked investment contracts 61, ,888 Assets under insurance contracts, bonds 144,855 2, ,497 Assets under insurance contracts, shares 43, ,728 48,778 Assets under insurance contracts, derivatives 1,085 3,528-4,613 Total 690,296 1,275,316 25,526 1,991,138 Financial liabilities Derivatives 4, ,721 18, ,061 Obligations to repurchase securities 163, ,852 Bonds issued by Realkredit Danmark 557, ,699 Deposits under pooled schemes and unit-linked investment contracts - 69,211-69,211 Total 725, ,675 18,989 1,324,823

41 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Note 8 At 30 June 2012, financial instruments valued on the basis of non-observable input comprised unlisted shares of DKK 9,022 million (cont d) (31 December 2011: DKK 7,658 million), illiquid bonds of DKK 96 million (31 December 2011: DKK 151 million) and derivatives with a net market value of DKK -593 million (31 December 2011: DKK -1,255 million). An increase or decrease of 10% in the fair value of unlisted shares would amount to DKK 903 million (2011: DKK 766 million), with DKK 566 million (2011: DKK 473 million) relating to shares allocated to policyholders, who assume most of the risk on the shares. The estimated fair value of illiquid bonds significantly depends on the estimated credit spread. A widening of 50bp would decrease fair value by DKK 1 million, while a narrowing of 50bp would increase fair value by DKK 1 million. A substantial number of derivatives valued on the basis of non-observable input are hedged by similar derivatives or are used for hedging the credit risk on bonds also valued on the basis of non-observable input. In the first half of 2012, the Group recognised unrealised value adjustments in respect of unlisted shares and credit bonds valued on the basis of non-observable input of DKK 549 million (31 December 2011: DKK 778 million). Shares, bonds and derivatives valued on the basis of non-observable input First half 2012 Full year 2011 Shares and Shares and bonds Derivatives bonds Derivatives Fair value at 1 January 7,792-1,255 7, Value adjustment through profit or loss Value adjustment through other comprehensive income Acquisitions 1, , Sale and redemption ,327-1, Transferred from quoted prices and observable input Transferred to quoted prices and observable input ,001 - Fair value at 31 December 9, ,792-1,255 9 Other issued bonds 30 June 31 Dec Commercial paper 37,276 69,500 Other 279, ,420 Total 316, ,920 Other issued bonds are recognised at amortised cost. Foreign 1 Jan. currency 30 June Nominal value 2012 Issued Redeemed translation 2012 Commercial paper 98, , ,276 1,214 39,826 Other 311,769 90,474 90,281 1, ,945 Other issued bonds 410, , ,557 3, ,771 Foreign 1 Jan. currency 31 Dec. Nominal value 2011 Issued Redeemed translation 2011 Commercial paper 261,614 1,338,751 1,494,507-6,967 98,891 Other 309,857 60,422 60,746 2, ,769 Other issued bonds 571,471 1,399,173 1,555,253-4, ,660

42 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Risk management Annual Report 2011 provides a detailed description of the Danske Bank Group s risk management practices. The Management s report describes changes to the risk management practices. Breakdown of credit exposure Credit exposure, Contracts, Credit exposure, Counterparty risk other trading and full risk assumed 30 June 2012 Total lending activities (derivatives) investing activities Insurance risk by customers Balance sheet items Demand deposits with central banks 27,153 27, Due from credit institutions and central banks 72,660 72, Repo loans with credit institutions and central banks 81,702 81, Trading portfolio assets 862, , , Investment securities 105, , Loans and advances at amortised cost 982, , Repo loans 259, , Loans at fair value 721, , Assets under pooled schemes and unit-linked investment contracts 65, ,377 Assets under insurance contracts 237, ,717 - Off-balance-sheet items Guarantees 82,610 82, Irrevocable loan commitments shorter than 1 year 55,145 55, Irrevocable loan commitments longer than 1 year 98,816 98, Other unutilised commitments Total 3,654,101 2,382, , , ,717 65,377 Non-core Ireland portion 24,066 24, December 2011 Balance sheet items Demand deposits with central banks 18,015 18, Due from credit institutions and central banks 74,041 74, Repo loans with credit institutions and central banks 106, , Trading portfolio assets 909, , , Investment securities 109, , Loans and advances at amortised cost 977, , Repo loans 149, , Loans at fair value 720, , Assets under pooled schemes and unit-linked investment contracts 61, ,888 Assets under insurance contracts 230, ,668 - Off-balance-sheet items Guarantees 83,131 83, Irrevocable loan commitments shorter than 1 year 63,013 63, Irrevocable loan commitments longer than 1 year 106, , Other unutilised commitments Total 3,611,228 2,298, , , ,668 61,888 In addition to credit exposure from lending activities, loan offers made and revocable credit facilities granted by the Group amounted to DKK 345 billion (31 December 2011: DKK 355 billion). These items are included in the calculation of risk-weighted assets in accordance with the Capital Requirements Directive.

43 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Credit exposure from lending activities The table Credit exposure broken down by industry (GICS) shows the credit exposure of the Group s core banking business by industry and customer segment. The breakdown follows the Global Industry Classification Standard (GICS), supplemented by the Personal customers, Subsidised housing companies, and Central and local governments categories. Credit exposure broken down by industry (GICS) Impaired Personal Commercial Financial Public Past due but Not in 30 June 2012 customers customers customers customers Total not impaired default In default Central and local governments , , Subsidised housing companies - 123, , ,905 Banks , , Diversified financials , , ,311 3,953 Other financials ,477-75, Energy and utilities - 46, , Consumer discretionary - 83, , ,816 1,402 Consumer staples - 120, , ,283 1,865 Commercial property - 258, ,201 1,245 10,691 12,466 Construction, engineering and building products - 36, , ,936 1,677 Transportation and shipping - 67, , ,381 1,536 Other industrials - 71, , , IT - 14, , Materials - 43, , Health care - 25, , Telecommunication services - 6, , Personal customers 888, ,893 6,280 7,764 8,681 Total 888, , , ,673 2,382,003 11,888 37,423 36,079 Non-core Ireland portion 8,369 15, , ,221 7, December 2011 Central and local governments , , Subsidised housing companies - 123, , ,580 Banks , , Diversified financials , , ,540 3,901 Other financials ,915-56, Energy and utilities - 40, , Consumer discretionary - 83, , ,438 1,321 Consumer staples - 117, , ,381 1,770 Commercial property - 257, ,267 1,775 10,823 10,382 Construction, engineering and building products - 36, , ,895 1,893 Transportation and shipping - 71, , ,019 Other industrials - 77, , ,505 1,654 IT - 15, , Materials - 42, , Health care - 27, , Telecommunication services - 4, , Personal customers 888, ,968 9,839 7,072 8,324 Total 888, , , ,495 2,298,711 15,422 35,634 33,166 The Non-core Ireland exposure derived mainly from the Commercial property and Personal customers industries. Exposure to these industries totalled DKK 18.0 billion at 30 June 2012.

44 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Credit exposure broken down by geographical area The table shows the credit exposure of the Group s core banking business by country and customer segment. Impaired Personal Commercial Financial Public Past due but Not in 30 June 2012 customers customers customers customers Total not impaired default In default Denmark 553, , ,606 68,619 1,248,842 5,697 24,747 14,858 Finland 103,436 89,505 3,465 4, ,382 2,139 1,630 2,260 Sweden 88, ,328 25,636 10, , ,811 1,288 Ireland 23,202 22,536 6,900 3,139 55, ,754 8,340 UK 20,668 32, ,160 9, , ,132 2,680 Germany ,592 2,747 16,697 32, Estonia 5,294 4, , Latvia 1,035 1, , Lithuania 4,723 3, , Spain , France 571 1,583 2,989-5, Italy Portugal Greece Belgium 292 1,716 4,143-6, Cyprus 27 2, , Netherlands 182 1,182 2,154-3, Luxembourg , , Poland 72 2,541 1, , Other EU member states Norway 81, ,606 6,929 2, ,542 1,491 1,741 1,277 Eastern Europe 82 1,675 1, , Switzerland 793 2,559 1,353-4, Turkey ,840-1, Other European countries North America 1,089 18,636 37,874-57, ,533 Central and South America , , Africa 153 1,370 2, , Asia 1,568 2,984 6, , Oceania , Total 888, , , ,673 2,382,003 11,888 37,423 36,079 Geographical segmentation is based on the customer s country of residence rather than the location in which the individual transaction is recorded. The table lists the countries to which the Group has a total exposure above DKK 1 billion as well as Ireland, Portugal, Italy, Greece and Spain. Total Non-core Ireland exposure amounted to DKK 24.1 billion at 30 June 2012 and derived mainly from exposure to customers resident in Ireland.

45 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Impaired Personal Commercial Financial Public Past due but Not in 31 December 2011 customers customers customers customers Total not impaired default In default Denmark 561, , ,286 62,721 1,241,656 7,864 23,197 13,038 Finland 100,937 88,684 4,369 6, ,790 2,063 1,095 2,585 Sweden 85, ,662 27,727 16, , ,173 1,062 Ireland 24,543 25,169 9,966 7,430 67, ,262 7,519 UK 19,968 33,535 66,088 16, , ,695 Germany ,389 2, , Estonia 5,553 4, , Latvia 1, , Lithuania 4,723 3, , Spain , France 581 1,742 3,147-5, Italy Portugal Greece Belgium 273 1,175 3,131-4, Cyprus 15 2, , Netherlands 166 1,248 2,107-3, Luxembourg , , Poland 76 2,593 1, , Other EU member states Norway 77, ,493 8,062 8, ,880 3,077 2,364 1,213 Eastern Europe 78 1,571 1, , Switzerland 718 2,483 1,354-4, Turkey ,833-1, Other European countries North America 1,106 18,082 26,905-46, ,507 Central and South America , , Africa 146 1,275 1, , Asia 1,458 3,149 7, , Oceania , Total 888, , , ,495 2,298,711 15,422 35,634 33,166

46 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Credit exposure broken down by rating category 30 June 2012 Upper Lower Personal Commercial Financial Public Non-core Rating category PD PD customers customers customers customers Total Ireland portion ,899 2,636 10,130 65,576 84, ,765 11,135 42,190 23, , , , ,957 6, ,846 1, , ,332 68,112 4, ,098 1, , ,949 51,384 4, ,104 2, , , ,392 6, ,875 1, , ,113 10,496 3, ,035 1, ,135 69,661 6,841 1, ,981 3, ,532 28,071 2, ,943 2, ,764 27,710 1, ,423 3, ,681 23,277 4,121-36,079 7,414 Total 888, , , ,673 2,382,003 24, December 2011 Rating category ,253 3,704 10,132 70,133 90, ,962 10,811 53,557 23, , , , ,683 5, , , ,554 65,229 4, , , ,371 46,465 4, , , ,654 53,146 9, , , ,648 11,436 4, , ,841 74,841 6,453 1, , ,327 29,230 2, , ,072 26,973 1,589-35, ,324 20,755 4,087-33,166 - Total 888, , , ,495 2,298,711 -

47 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Impairment charges Rating categories 10 and 11 include customers with exposures for which objective evidence of impairment exists and individual impairment charges are made. Exposure to customers in the other rating categories is subject to collective impairment testing. The allowance account includes all impairment charges against loans and advances at amortised cost, loans at fair value, amounts due from credit institutions and central banks, and irrevocable loan commitments and guarantees. Allowance account broken down by segment and type of impairment Impairment charges Allowance Personal Commercial Financial Public account, customers customers customers customers total Individual Collective 1 January ,206 28,706 7, ,769 39,201 4,568 New impairment charges 4,522 15, ,900 19,701 1,199 Reversals of impairment charges from previous periods 2,250 3, ,347 4,703 1,644 Write-offs debited to allowance account 703 5,746 3,702-10,151 10,151 - Foreign currency translation Other items December ,842 35,656 4, ,604 44,472 4,132 New impairment charges 3,016 8, ,427 10,256 1,171 Reversals of impairment charges from previous periods 1,391 2, ,545 3,201 1,344 Write-offs debited to allowance account 433 1, ,008 2,008 - Foreign currency translation Other items June ,086 39,598 4, ,006 50,022 3,984 Non-core Ireland portion 1,187 12, ,078 13, Collective impairment charges include charges that reflect the migration of customers from one rating category to another. If all customers were downgraded one rating category with no corresponding interest rate change, collective impairment charges would increase by about DKK 6.6 billion (31 December 2011: DKK 7.1 billion). If the value of collateral provided by customers in rating categories 10 and 11 decreased 10%, individual impairment charges would increase by about DKK 4 billion (31 December 2011: about DKK 3 billion). In the second quarter of 2012, the Danish FSA clarified the rules on impairment charges against weak exposures measured at amortised cost. The rules detail the criteria for identifying objective evidence of impairment and the method of calculating impairment charges in the event of objective evidence of impairment. The clarified rules did not have any noticeable effect on charges. Allowance account broken down by balance sheet item 30 June 31 Dec Due from credit institutions and central banks Loans and advances at amortised cost 49,685 44,943 Loans at fair value 2,905 2,667 Other liabilities 1, Total 54,006 48,604 Loan impairment charges First half First half New and increased impairment charges 11,427 10,670 Reversals of impairment charges 4,545 4,214 Write-offs charged directly to income statement Received on claims previously written off 352 1,428 Interest income, effective interest method Total 7,031 5,594

48 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Allowance account, impairment charges and collateral broken down by industry Credit exposure Collateral Allowance account Impairment charges 30 June 31 Dec. 30 June 31 Dec. 30 June 31 Dec. First half First half Central and local governments 117, ,495 41,248 39, Subsidised housing companies 123, , ,742 94, Banks 154, ,778 77,867 85, Diversified financials 247, , , ,352 4,078 3, Other financials 75,477 56,915 58,337 50, Energy and utilities 46,304 40,698 10,946 7, Consumer discretionary 83,761 83,208 35,288 35,562 4,816 4, Consumer staples 120, ,666 55,957 62,249 3,885 3, Commercial property 258, , , ,445 17,681 15,614 2,013 3,084 Construction, engineering and building products 36,452 36,572 10,481 14,339 4,911 4, Transportation and shipping 67,935 71,824 33,716 35,902 2,319 1, Other industrials 71,271 77,995 18,771 20,368 3,132 2, IT 14,449 15,615 1,811 2, Materials 43,464 42,483 10,102 9,952 1,056 1, Health care 25,234 27,562 6,504 6, Telecommunication services 6,227 4, Personal customers 888, , , ,661 10,086 8,842 1, Total 2,382,003 2,298,711 1,543,915 1,454,701 54,006 48,604 7,031 5,594 Non-core Ireland accounted for DKK 15.2 billion (mainly real property) of total collateral at 30 June 2012.

49 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Allowance account, impairment charges and collateral broken down by geographical area Credit exposure Collateral Allowance account Impairment charges 30 June 31 Dec. 30 June 31 Dec. 30 June 31 Dec. First half First half Denmark 1,248,842 1,241, , ,243 20,101 19,102 1,759 1,472 Finland 201, , , ,115 2,548 2, Sweden 278, , , ,764 1,492 1, Ireland 55,777 67,108 32,622 38,323 16,507 13,814 3,533 3,120 UK 169, , , ,056 6,517 5, Germany 32,616 15,504 3,052 1, Estonia 9,962 10,579 6,380 6, Latvia 2,216 2, Lithuania 9,071 9,272 5,148 5, , Spain 1,314 1, France 5,143 5,470 5,916 5, Italy Portugal Greece Belgium 6,151 4,579 2,794 1, Cyprus 2,650 2,602 2,043 1, Netherlands 3,518 3,521 1,334 1, Luxembourg 62,630 28,696 48,983 24, Poland 4,110 3, Other EU member states Norway 198, , , ,263 1,664 1, Eastern Europe 3,924 3, Switzerland 4,705 4, Turkey 1,937 1, Other European countries North America 57,599 46,093 31,563 19,280 2,443 2, Central and South America 2,492 2,373 1,814 1, Africa 4,234 3,518 1,381 1, Asia 11,842 12,011 3,011 3, Oceania 1,339 1, Total 2,382,003 2,298,711 1,543,915 1,454,701 54,006 48,604 7,031 5,594 Non-core Ireland accounted for DKK 15.2 billion of total collateral in Ireland at 30 June 2012 and collateral derived mainly from exposure to customers resident in Ireland.

50 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Credit exposure from trading and investing activities At 30 June 2012, the Group s credit exposure from trading and investing activities amounted to DKK 969 billion, relating primarily to bonds (DKK 484 billion) and derivates with positive fair value (DKK 480 billion). Bond portfolio Central and Quasi- Danish Swedish Other local govern- government mortgage covered covered Short-dated Corporate 30 June 2012 ment bonds bonds bonds bonds bonds bonds (CP etc.) bonds Total Held-for-trading 126,800 5, ,301 62,997 13,185 14,954 15, ,895 Designated , ,991 Available-for-sale ,704-8, ,421 Held-to-maturity 7, ,662 9,120 Total 134,928 6, ,733 62,997 22,719 14,954 17, , December 2011 Held-for-trading 118,744 8, ,070 66,543 12,363 10,304 9, ,094 Designated ,633-1, ,686 Available-for-sale ,448-9, ,460 Held-to-maturity 9, ,487 11,398 Total 129,996 8, ,151 66,543 23,035 10,304 11, ,638 The bond portfolio includes bonds worth DKK billion (31 December 2011: DKK billion) recognised as assets under insurance contracts. For bonds classified as held-to-maturity, fair value equalled amortised cost at 30 June At the end of 2011, fair value also equalled amortised cost.

51 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Bond portfolio broken down by geographical area Central and Quasi- Danish Swedish Other local govern- government mortgage covered covered Short-dated Corporate 30 June 2012 ment bonds bonds bonds bonds bonds bonds (CP etc.) bonds Total Denmark 23, , ,077 5, ,934 Sweden 32, ,997-3,773 2, ,979 UK 13, , ,248 Norway 7, ,763 4,254 3,736 20,319 USA 308 2, ,501 Spain , ,116 France 6, , ,529 Luxembourg - 4, ,813 6,109 Canada 1, ,654 Finland 5, , ,575 Ireland 2, ,871 Italy 2, ,362 Portugal Austria Netherlands 3, ,159 1,289 6,997 Germany 30, ,446 Other 3, ,599 Total 134,928 6, ,733 62,997 22,719 14,954 17, , December 2011 Denmark 25, , ,061 2, ,188 Sweden 18, ,543-2,936 3,641 91,807 UK 16, , ,317 Norway 6, ,947 2,706 2,468 15,458 USA 1,329 4, ,864 Spain , ,401 France 10, ,800 1, ,328 Luxembourg - 4, ,593 Canada 2, ,171 Finland 5, ,224 Ireland 1, ,611 Italy Portugal Austria 2, ,495 Netherlands 4, ,622 Germany 31, ,702 Other 1, ,761 Total 129,996 8, ,151 66,543 23,035 10,304 11, ,638 Credit exposure to government bonds issued by Ireland, Portugal, Italy and Spain amounted to DKK 5.8 billion at 30 June 2012 (31 December 2011: DKK 2.5 billion). All government bonds issued by these countries were recognised at fair value. When unsettled transactions in bonds issued by these countries and hedging transactions are taken into account, the total risk exposure was DKK 1.8 billion (31 December 2011: DKK 1.3 billion). At 30 June 2012, the bond portfolio did not include government bonds issued by Greece. Exposures below DKK 1 billion are aggregated in the Other category. Risk Management 2011 provides additional details about the Group s risk exposure. The publication is not covered by the statutory audit.

52 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank Group Derivatives with positive fair value 30 June Dec Derivatives with positive fair value 627, ,970 Netting (under accounting rules) 147,695 - Carrying amount 479, ,970 Netting (under capital adequacy rules) 374, ,714 Net current exposure 104,928 99,256 Derivatives with positive fair value after netting for accounting purposes: Interest rate contracts 374, ,498 Currency contracts 102, ,349 Other contracts 2,922 3,123 Total 479, ,970 The increase in netting for accounting purposes was attributable mainly to an increase in the use of clearing centres.

53 DANSKE BANK INTERIM REPORT FIRST HALF /65 Interim financial statements Danske Bank A/S The financial statements of the Parent Company, Danske Bank A/S, are prepared in accordance with the Danish Financial Business Act and the Danish FSA s Executive Order on Financial Reports for Credit Institutions and Investment Companies, etc. The rules are identical to the Group s IFRS compliant valuation and measurement principles with the following exceptions: Domicile property is measured (revalued) at its estimated fair value The corridor method is not applied to pension obligations The available-for-sale financial assets category is not used The estimated fair value of domicile property is determined in accordance with schedule 9 to the Danish FSA s Executive Order on Financial Reports for Credit Institutions and Investment Companies, etc. Available-for-sale financial assets are measured at fair value through profit or loss. Holdings in subsidiary undertakings are measured on the basis of the equity method, and tax payable by these undertakings is expensed under Income from associates and group undertakings. The format of the Parent Company s financial statements is not identical to the format of the consolidated financial statements prepared in accordance with IFRSs. The table below shows the differences in net profit and shareholders equity between the IFRS consolidated financial statements and the Parent Company s financial statements presented in accordance with Danish FSA rules. Net profit Shareholders' equity First half First half 30 June 31 Dec Consolidated financial statements (IFRSs) 2,286 1, , ,855 Domicile property ,247 1,281 Available-for-sale financial assets Pension obligations Tax effect Reserves in undertakings consolidated on a pro rata basis - - 3,002 2,991 Consolidated financial statements (Danish FSA rules) 1,792 1, , ,417 Non-controlling interests Reserves in undertakings consolidated on a pro rata basis - - 3,002 2,991 Goodwill on acquisition of non-controlling interests Parent Company financial statements (Danish FSA rules) 1,793 1, , ,390

54 DANSKE BANK INTERIM REPORT FIRST HALF /65 Income statement Danske Bank A/S Note First half 2012 First half 2011 Interest income 21,798 21,620 Interest expense 12,585 12,921 Net interest income 9,213 8,699 Dividends from shares etc Fee and commission income 4,723 4,943 Fees and commissions paid 1,318 1,468 Net interest and fee income 12,904 12,313 1 Value adjustments 2,818 3,007 Other operating income 908 1,271 Staff costs and administrative expenses 9,219 8,120 Amortisation, depreciation and impairment charges 1,065 1,175 Other operating expenses 27 1,141 Loan impairment charges etc. 5,110 3,973 Income from associates and group undertakings 1, Profit before tax 2,891 2,855 Tax 1,098 1,260 Net profit for the period 1,793 1,595

55 DANSKE BANK INTERIM REPORT FIRST HALF /65 Statement of comprehensive income Danske Bank A/S Note First half 2012 First half 2011 Net profit for the period 1,793 1,595 Other comprehensive income Translation of units outside Denmark Hedging of units outside Denmark Fair value adjustment of domicile property Tax on other comprehensive income Total other comprehensive income Total comprehensive income for the period 1,740 1,354

56 DANSKE BANK INTERIM REPORT FIRST HALF /65 Balance sheet Danske Bank A/S Note 30 June Dec June 2011 ASSETS Cash in hand and demand deposits with central banks 27,635 17,536 11,201 Due from credit institutions and central banks 195, , ,978 Loans, advances and other amounts due at amortised cost 1,034, , ,140 Bonds at fair value 500, , ,264 Bonds at amortised cost 4,662 5,172 5,381 Shares etc. 3,558 3,076 3,787 Holdings in associates Holdings in group undertakings 98,110 97,408 94,973 Assets under pooled schemes 45,499 43,503 44,122 Intangible assets 19,223 19,186 19,115 Land and buildings 4,075 4,242 4,208 Investment property Domicile property 3,962 4,130 4,100 Other tangible assets 2,931 3,171 3,055 Current tax assets 1, ,362 Deferred tax assets Assets temporarily taken over Other assets 490, , ,437 Prepayments Total assets 2,430,062 2,426,635 2,151,617 LIABILITIES AND EQUITY AMOUNTS DUE Due to credit institutions and central banks 577, , ,904 Deposits and other amounts due 697, , ,130 Deposits under pooled schemes 46,905 44,670 45,082 Issued bonds at amortised cost 257, , ,030 Current tax liabilities Other liabilities 652, , ,517 Deferred income 1,043 1, Total amounts due 2,233,363 2,230,028 1,953,797 PROVISIONS FOR LIABILITIES Provisions for pensions and similar obligations 1, Provisions for deferred tax 4,685 4,029 4,417 2 Provisions for losses on guarantees 1,199 1, Other provisions for liabilities Total provisions for liabilities 7,015 5,976 5,755 SUBORDINATED DEBT Subordinated debt 60,628 63,241 65,033 SHAREHOLDERS' EQUITY Share capital 9,317 9,317 9,317 Accumulated value adjustments Equity method reserve 24,884 24,884 25,914 Retained earnings 94,623 92,815 91,553 Proposed dividends Total shareholders' equity 129, , ,032 Total liabilities and equity 2,430,062 2,426,635 2,151,617

57 DANSKE BANK INTERIM REPORT FIRST HALF /65 Statement of capital Danske Bank A/S Changes in shareholders' equity Foreign currency Equity Share translation Revaluation method Retained Proposed capital reserve reserve reserve earnings dividends Total Shareholders' equity at 1 January , ,884 92, ,390 Net profit for the period ,793-1,793 Other comprehensive income Translation of units outside Denmark Hedging of units outside Denmark Fair value adjustment of domicile property Tax on other comprehensive income Total other comprehensive income Total comprehensive income for the period ,882-1,740 Transactions with owners Share capital increase Share offering costs Acquisition of own shares , ,719 Sale of own shares ,599-7,599 Share-based payments Tax on entries on shareholders' equity Shareholders' equity at 30 June , ,884 94, ,056 Shareholders' equity at 1 January , ,914 72, ,956 Net profit for the period ,595-1,595 Other comprehensive income Translation of units outside Denmark Hedging of units outside Denmark Fair value adjustment of domicile property Tax on other comprehensive income Total other comprehensive income Total comprehensive income for the period ,471-1,354 Transactions with owners Share capital increase 2, ,703-20,032 Share offering costs Acquisition of own shares , ,072 Sale of own shares ,989-9,989 Share-based payments Tax on entries on shareholders' equity Shareholders' equity at 30 June , ,914 91, ,032 For as long as the Danish state holds hybrid capital in Danske Bank and guarantees bond issues, Danske Bank A/S may distribute dividends if such dividends can be paid in full out of the net profit.

58 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank A/S Note 30 June June Value adjustments Loans at fair value Bonds 1, Shares etc Investment property - -7 Currency Derivatives 2, Assets under pooled schemes 2, Deposits under pooled schemes -2, Other liabilities -1,247 2,274 Total 2,818 3,007 2 Impairment charges for loans, advances and guarantees Loans, advances Loans, advances Other Other and guarantees, and guarantees, amounts due, amounts due, individual collective individual collective impairment impairment impairment impairment Total Impairment charges at 1 January ,793 3, ,291 Impairment charges during the year 8, ,835 Reversals of impairment charges from previous years 4,023 1, ,202 Other changes Impairment charges at 30 June ,173 2, ,234 Value adjustment of assets taken over Impairment charges at 1 January ,537 3, ,456 Impairment charges during the year 15, ,200 Reversals of impairment charges from previous years 12,170 1, ,588 Other changes Impairment charges at 31 December ,793 3, ,291 Value adjustment of assets taken over

59 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank A/S Note 3 Developments in lending activities in Denmark in the first half of 2012 In May 2009, Danske Bank A/S raised subordinated loan capital in the form of hybrid capital of DKK 24 billion from the Danish state. Under Danish law, banks that raise state-funded capital must publish semi-annual statements on developments in their Danish lending activities. Danske Bank A/S grants loans to personal and business customers in a number of countries. The table below shows the trend in loans and advances, irrevocable loan commitments and guarantees before impairment charges for business customers (including the public sector) and personal customers of Danske Bank A/S. Loans etc. before impairment charges 30 June Dec Business customers Personal customers Total Share (%) Business customers Personal customers Total Share (%) Denmark 274, , , , , , Finland 18, , , ,591 1 Sweden 176,453 88, , ,004 85, , Ireland 44,486 25,534 70, ,006 26,309 75,315 6 UK 156, , , ,453 6 Germany 14, , , ,395 1 Baltics 11,796 11,776 23, ,168 12,242 23,410 2 Other EU member states 98, , , ,928 4 Norway 116,170 81, , ,385 77, , Eastern Europe 1, , , ,484 0 Other European countries 4, , , ,526 0 North America 60, , , ,842 6 Rest of world 12, , , ,090 1 Total 989, ,215 1,342, , ,559 1,265, Most of Danske Bank A/S s markets saw a small improvement in macroeconomic conditions in the first half of The government debt crisis in the euro zone continued to adversely affect household and business sentiment, also in markets outside the euro zone. This contributed to low demand for credit. Danske Bank A/S grants credits on the basis of information about customers individual financial circumstances and monitors customers financial situation on an ongoing basis to assess whether the basis for credit has changed. Facilities should match the individual customers financial situation, including earnings, capital and assets, and business volume with Danske Bank to a reasonable degree, and customers must be able to substantiate their repayment ability. Collateral is usually required for credit facilities. Danske Bank A/S exercises caution before granting credit facilities to businesses in troubled or cyclical industries. The Group monitors credit facilities regularly through its credit systems and procedures established for that purpose. Danske Bank A/S supported its creditworthy customers throughout the first half of Danske Bank A/S maintains its increased focus on certain industries, including the property and agricultural sectors. More information about the Group s lending policy, rating of customers and credit risk management is available in section 4 of Risk Management 2011, published on 9 February The publication is not covered by the statutory audit. Risk Management 2011 is available at

60 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank A/S Note 3 In the first half of 2012, Danske Bank A/S generally raised lending rates on variable rate loans. Because interest rates on Danske (cont d) Prioritet accounts are pegged to the Danish central bank s certificate of deposit rate, the rates on these loans were lowered in the first half of 2012, however, as the certificate of deposit rate was lowered several times during the period. The interest rate levels for households were higher at the end of the first half of 2012 than at the beginning of the year. The levels for non-financial business customers matched the levels prevailing at the beginning of the year. Danish business customers demand for credit, measured in terms of the loan amounts applied for, fell 41% from the level in the first half of The number of loan applications from existing customers fell 27% in the first half of Credit demand from new customers also fell in the period. The share of approved applications from existing customers was 87%, matching the level in the same period of The share of approved applications from new customers rose. Credit demand from Danish personal customers rose 1% from the level in the second half of Credit demand from new customers matched the level in the second half of The share of approved applications was unchanged at 92% in the first half of 2012.

61 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank A/S Note 3 The table below shows the trend in loans and advances, irrevocable loan commitments and guarantees before impairment charges (cont d) for customers of Danske Bank A/S resident in Denmark. Loans etc. before impairment charges 30 June Dec Existing customers New customers Total Total Public sector 14, ,390 14,772 Business customers Agriculture, hunting, forestry and fisheries 10, ,771 10,515 Manufacturing industries and extraction of raw materials 37, ,243 38,046 Energy and utilities 6, ,695 4,727 Building and construction 5, ,919 5,890 Trade 17, ,783 17,236 Transport, hotels and restaurants 18, ,348 21,151 Information and communication 4, ,954 3,589 Finance and insurance 113, , ,774 Property administration 23, ,306 23,340 Other 18, ,152 19,968 Total business customers 258,189 2, , ,236 Personal customers Mortgages 111,045 1, , ,878 Other 30, ,624 34,889 Total personal customers 141,494 2, , ,767 Total 414,032 4, , ,775 New customers are customers to which Danske Bank A/S has not granted loans or other credit facilities in the past 12 months. In compliance with statutory requirements, this lending statement is available as a separate document at

62 DANSKE BANK INTERIM REPORT FIRST HALF /65 Notes Danske Bank A/S First half 2012 Full year 2011 First half 2011 RATIOS AND KEY FIGURES Total capital ratio (%) Tier 1 capital ratio (%) Return on equity before tax (%) Return on equity after tax (%) Cost/income ratio (DKK) Interest rate risk (%) Foreign exchange position (%) Foreign exchange risk (%) Loans and advances plus impairment charges as % of deposits Gearing of loans and advances (%) Growth in loans and advances (%) Surplus liquidity in relation to statutory liquidity requirement (%) Large exposures as % of capital base Funding ratio Lending growth (year-on-year) Real property exposure Impairment ratio (%) Earnings per share (DKK) Book value per share (DKK) Proposed dividend per share (DKK) Share price end of period/earnings per share (DKK) Share price end of period/book value per share (DKK) The ratios and key figures are defined by the Danish FSA s Executive Order on Financial Reports for Credit Institutions and Investment Companies, etc. Share ratios have not been adjusted to reflect the share capital increase in April 2011.

63 DANSKE BANK INTERIM REPORT FIRST HALF /65 Statement by the management The Board of Directors and the Executive Board (management) have considered and approved Interim Report First Half 2012 of the Danske Bank Group. The consolidated interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU, and the Parent Company s interim financial statements have been prepared in accordance with the Danish Financial Business Act. Furthermore, the interim report has been prepared in accordance with Danish disclosure requirements for interim reports of listed financial institutions. In our opinion, the interim financial statements give a true and fair view of the Group s and the Parent Company s assets, liabilities, shareholders equity and financial position at 30 June 2012 and of the results of the Group s and the Parent Company s operations and the consolidated cash flows for the period starting on 1 January 2012 and ending on 30 June Moreover, in our opinion, the management s report includes a fair review of developments in the Group s and the Parent Company s operations and financial position and describes the significant risks and uncertainty factors that may affect the Group and the Parent Company. Copenhagen, 7 August 2012 Executive Board Eivind Kolding Chairman Tonny Thierry Andersen Member of the Executive Board Thomas F. Borgen Member of the Executive Board Henrik Ramlau-Hansen Member of the Executive Board Lars Mørch Member of the Executive Board Board of Directors Ole Andersen Niels B. Christiansen Urban Bäckström Chairman Vice chairman Michael Fairey Mats Jansson Jørn P. Jensen Majken Schultz Trond Ø. Westlie Susanne Arboe Helle Brøndum Carsten Eilertsen Charlotte Hoffmann Per Alling Toubro

64 DANSKE BANK INTERIM REPORT FIRST HALF /65 Auditors reports Internal Audit s report We have reviewed the interim financial statements of the Danske Bank Group and Danske Bank A/S for the period starting on 1 January 2012 and ending on 30 June 2012, pp Scope of review A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, as well as performing analytical procedures and other review procedures. A review is substantially less in scope than an audit and consequently, the review does not provide assurance that we have become aware of all significant matters that might be identified in an audit. We have not conducted an audit, and, accordingly, we express no audit opinion. Opinion Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial statements have not been prepared, in all material respects, in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU, and Danish disclosure requirements for listed financial institutions. Furthermore, nothing has come to our attention that causes us to believe that the interim financial statements of Danske Bank A/S have not been prepared, in all material respects, in accordance with the Danish Financial Business Act. Copenhagen, 7 August 2012 Jens Peter Thomassen Group Chief Auditor

65 DANSKE BANK INTERIM REPORT FIRST HALF /65 Independent auditors report To the shareholders of Danske Bank A/S We have reviewed the interim financial statements of the Danske Bank Group and Danske Bank A/S for the period starting on 1 January 2012 and ending on 30 June 2012, pp The interim financial statements comprise the income statement, statement of comprehensive income, balance sheet, statement of capital and notes for the Group as well as for Danske Bank A/S and the consolidated cash flow statement. The consolidated interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU, and Danish disclosure requirements for listed financial institutions. The Parent Company s interim financial statements have been prepared in accordance with the Danish Financial Business Act. Management is responsible for the interim financial statements. Our responsibility is to express a conclusion on the interim financial statements based on our review. Scope of review We conducted our review in accordance with ISRE 2410 DK, Review of Interim Financial Information Performed by the Independent Auditor, and additional requirements under Danish audit regulation. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, as well as performing analytical procedures and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and additional requirements under Danish audit regulation, and consequently, the review does not provide assurance that we have become aware of all significant matters that might be identified in an audit. We have not conducted an audit, and accordingly, we express no audit opinion. Opinion Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial statements have not been prepared, in all material respects, in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU, and Danish disclosure requirements for listed financial institutions. Furthermore, nothing has come to our attention that causes us to believe that the interim financial statements of Danske Bank A/S have not been prepared, in all material respects, in accordance with the Danish Financial Business Act. Copenhagen, 7 August 2012 KPMG Statsautoriseret Revisionspartnerselskab Lars Rhod Søndergaard State Authorised Public Accountant Jesper Ridder Olsen State Authorised Public Accountant

66 DANSKE BANK INTERIM REPORT FIRST HALF /65 Supplementary information Conference call Danske Bank will hold a press conference and a conference call on 7 August 2012 upon the presentation of its interim report for the first half of The press conference is scheduled for 10.00am CET, and the conference call for 2.30pm CET. The press conference and the conference call will be webcast live at Financial calendar 30 October 2012 Interim Report First Nine Months February 2013 Annual Report March 2013 Annual general meeting 2 May 2013 Interim Report First Quarter August 2013 Interim Report First Half October 2013 Interim Report First Nine Months 2013 Contacts Eivind Kolding Chairman of the Executive Board Henrik Ramlau-Hansen Chief Financial Officer Martin Gottlob Head of Investor Relations Links Danske Bank Group Retail Banking Denmark Retail Banking Finland Retail Banking Sweden Retail Banking Norway Banking Activities Northern Ireland Banking Activities Ireland Realkredit Danmark Danske Capital Danica Pension More information about the Group s financial results is available at

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