Board of Directors report

Transcription

1 Board of Directors report Ole Andersen Chairman, Board of Directors 17 March 2016

2 We met our financial targets for 2015 Target Status, end Return on equity of 9.5% 11.6%* Improved ratings Expenses below DKK 22 billion Tier 1 capital ratio of minimum 13% Total capital ratio of minimum 17% Dividend payout of about 40-50% of net profit * Before goodwill impairments. Stable A ratings DKK 21.8 billion* 16.1% 21% 46% (DKK 8 per share)* 1

3 Business review Q Nordic universal bank: Further growth in Sweden and Norway Q Q Baltics: Personal customer activities Non-core Q Q New Wealth Management business unit from April 2016 Q Ireland: Personal Banking and Business Banking Non-core Changes at Corporates & Institutions Northern Ireland: Separate business unit from 1 January

4 Customer satisfaction ratings are going in the right direction Corporates & Institutions Business Banking Personal Banking Top 3 ranking in Prospera surveys No.1 No. 2 No. 3 37% 17% 17% No. 1 in the Nordic countries in Corporate Banking Cash Management Institutional Banking and other categories Source: Danske Bank 3

5 Low interest rates are a challenge Central bank benchmark interest rates 6 % Denmark Norway 5 Sweden Eurozone Source: Central banks. 4

6 Strong financial results for 2015 Net profit DKK 17.7 billion* Total income DKK 44.2 billion Expenses DKK 21.8 billion* Return on equity 11.6%* Impairment charges DKK 57 million * Before goodwill impairments. 5

7 Improved credit ratings Standard & Poor s Negative outlook A Stable outlook A Moody s Stable outlook A3 Stable outlook A2 Fitch Ratings Stable outlook A Stable outlook A 6

8 A well-capitalised bank Tier 1 capital ratio Total capital ratio Billede Target: min.17% Target: 13%

9 Dividend payout and share buy-back Proposal for dividend of DKK 8 per share, or 46% of net profit* Share buy-back for DKK 9 billion over 12 months * Before goodwill impairments. 8

10 Some improvement in the economy, but also uncertainty Billede Employment 110 Index 2007= USA Eurozone 100 Denmark 95 Oil price (USD per tonne) Global equities % Jan. 15 Jan. 1 Feb. 15 Feb. 1Mar. Source: National statistics from Macrobond, USA s Energy Information Administration and MSCI World Index. 9

11 Outlook for 2016 Net profit in line with level in 2015 before goodwill impairments 10

12 Five trends that are driving change Macroeconomics Customer expectations New competitors Digitalisation Regulations 11

13 Four strategic themes set our direction 12

14 Board of Directors work 13 board meetings 20 meetings of the Board s four committees Four meetings with the Danish Financial Supervisory Authority 13

15 Changes in the Board of Directors and the Executive Board Hilde Merete Tonne Lars-Erik Brenøe Jacob Aarup- Andersen Nominated to be new member of the Board of Directors Nominated to be new member of the Board of Directors Chief Financial Officer from 1 April

16 Remuneration of the Executive Board The Executive Board s remuneration is at an appropriate level No adjustment of fixed salary in 2016 Desire to increase variable remuneration in the future 15

17 Board of Directors focus areas in 2016 Customer experience Disruption & digitalisation Nordic potential People & culture Compliance 16

18 Thank you for your attention

19 Disclaimer Important notice This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Danske Bank A/S in any jurisdiction, including the United States, or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The securities referred to herein have not been, and will not be, registered under the Securities Act of 1933, as amended, and may not be offered, exercised or sold in the United States absent registration or an applicable exemption from registration requirements. References to a potential share offering by Danske Bank are included herein pursuant to Rule 135c of the Securities Act of 1933, as amended. This presentation contains forward-looking statements that reflect management s current views with respect to certain future events and potential financial performance. Although Danske Bank believes that the expectations reflected in such forwardlooking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors many of which are beyond Danske Bank s control. This presentation does not imply that Danske Bank has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided. 18