Chairman s report. Ole Andersen Chairman, Board of Directors. 18 March 2015

Transcription

1 Chairman s report Ole Andersen Chairman, Board of Directors 18 March 2015

2 Word of the Year

3 Reporting in both Danish and English 3

4 Improvement in the economy, but also headwinds GDP growth (%) 2014 Interest rates and yields (%) year government bond 3-month CIBOR Certificate of deposit China Source: Danske Bank and Nasdaq OMX. 4

5 Best financial results since 2007 Net profit before goodwill impairments rose 82%, from DKK 7.1 to 12.9 billion Income rose 10% Expenses fell 5% Impairment charges fell 32% Return on equity of 8.5% 5

6 Increase in top line despite weak macroeconomic conditions Total income 43,866 39,740 Net interest income 23,107 22,077 Net fee income Net trading income Other income Insurance 1,344 1,308 2,362 1,088 6,562 5,799 10,491 9,468 6

7 Impairment charges remain low 30 Loan impairment charges, (DKK billions) 1.4 Impairment charges Impairment ratio 1 (rhs) The impairment ratio is defined as the Group s annual impairment charges as a percentage of loans and guarantees. 7

8 Personal Banking Profit before tax Total income Expenses Impairment charges , , , , % +1% -9% -25% , , , ,412 8

9 Business Banking Profit before tax Total income Expenses Impairment charges , , , , % +1% -42% , , , ,007 9

10 Corporates & Institutions Profit before tax Customer-driven income (DKK billions) Expenses Impairment charges , , % +17% +1% -21% , ,

11 Danske Capital Profit before tax Total income Expenses Assets under mgt , , , % +11% -3% +9% , ,

12 Danica Pension Net income Premiums Insurance result , , , % 0% 0% , , ,508 12

13 Danske Bank is solid and well-capitalised Common equity tier 1 capital ratio in the EBA s severe stress test scenario Requirement: 5.5% Danske Bank: 11.7% 11.7% 13

14 Proposal for dividend Dividend and share buyback DKK 5.5 per share, or 43% of net profit before goodwill impairments Share buy-back programme for DKK 5 billion in

15 Improved ratings in Stable outlook A- Negative outlook A Positive outlook Baa1 Stable outlook A3 Stable outlook A Stable outlook A 15

16 Status of our strategy Advisory services Digitalisation Trust & transparency VISION Recognised as the most trusted financial partner Customer satisfaction Financial results 16

17 Return on equity of at least 12.5% by 2018 ROE after tax, before goodwill impairments (%) Over 12.5 Key elements Rising income Improved ratings and lower funding costs Gradual gains in efficiency Business volume growth 2.1 Lower impairment charges/noncore E 18E Capital structure 1 Based on our ROE target of 9% adjusted for goodwill impairments of DKK 9.1 billion. 17

18 Customer satisfaction ratings are moving in the right direction Personal Banking On target in 1 of 5 markets Business Banking On target in 4 of 5 markets Corporates & Institutions On target in 57 of 84 surveys 18

19 A strong Nordic bank 19

20 Regulations 20

21 Board of Directors matters 21

22 Management changes Gilbert Kohnke Chief Risk Officer : OCBC Bank, Singapore : CIBC World Markets, London, Singapore & New York : Royal Bank of Canada 22

23 Remuneration of the Executive Board Fixed salaries unchanged Closer alignment of interest with shareholders Long-term incentive programme based on total shareholder return Variable remuneration linked to shares 23

24 Outlook for 2015 Continuation of fragile economic growth and low interest rates Income Expected to be in line with 2014 level Expenses Reduced to less than DKK 22 billion Impairment charges Expected to remain low Net profit Net profit of more than DKK 14 billion 24

25 THANK YOU FOR YOUR ATTENTION 25

26 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. 26