Copenhagen Winter Seminar

Transcription

1 Copenhagen Winter Seminar Tonny Thierry Andersen Executive Board member Global Head of Personal Banking 2 December 2015

2 Well on track to deliver on all of our ambitions for 2015 Target Status after Q Shareholders return on equity Above 9.5% in % 8.5%* 11.5% M 2015 <22bn Costs Costs below DKK 22 bn 23.8bn 22.6bn* 16.0bn E T1/T2 Common Equity Tier % 19.3% 20.6% Capital ratios Min. 13% CET1 Min. 17% total capital 14.7% 15.1% 15.7% M 2015 Ratings A ratings A A2 A * Before goodwill impairments of DKK 9.1 billion 2

3 and we have a solid plan for improving return on equity to above 12.5% in 2018 at the latest Change in ROE (%, after tax) ROE 2015E* 9.5% Costs 0.5-1% Funding & ratings 0.5-1% Volume effect 0.5-1% Income initiatives 0.5% Loan losses & other 0.5-1% Capital effect 0.5% ROE 2018E Above 12.5% * Based on our external 2015 ROE target of 9% adjusted for the goodwill write-down of DKK 9.1 bn. 3

4 Personal Banking: Strong improvement in return due to continued focus on profitability ROAC before tax (%) Cost/income ratio (%) Loan impairment charges (DKK m) +54% % ,749-48% , , * 9M * 9M * 9M 2015 * Excluding goodwill write-down of DKK 5.5 billion 4

5 Product switch from bank loans to mortgage loans puts NII under pressure, offset by improved credit quality Lending volume breakdown (%) Loan impairment charges (DKK m) Mortgage loans Bank loans % 77% 77% 78% 79% % 23% 23% 22% 21% 0-50 Q314 Q414 Q115 Q215 Q315 Q314 Q414 Q115 Q215 Q315 5

6 RD already complies with four out of five requirements recommended by the Rangvid report Regulatory diamond for Danish mortgage institutions Concentration risk: Sum of 20 largest exposures/cet1 < 1 Growth: Max.15% annually in certain segments Refinancing need: Max. 12.5% of portfolio quarterly and max. 25% annually Interest risk: (LTV > 75% of legal limit and interest fixed < 2 years) < 25% of portfolio Interest-only loans: Max 10% of portfolio with LTV > 75% of legal limit 6

7 The customer satisfaction gap to competitors is closing Overall customer satisfaction; 1 10 scale Danske Bank Nearest competitor Competitor average Q Q

8 Strong loan growth drives NII higher despite market pressure; new customers have sound credit quality Lending volume in NOK (Q = Index 100) Cross sales index Stock: Q214 Q314 Q414 Q115 Q215 Q315 Q115 Q215 Q315 NII and expenses in NOK (Q = Index 100) Exposure weighted PD, rating categories 1-10 (%) NII Expenses Q214 Q314 Q414 Q115 Q215 Q315 Q414 Q115 Q215 Q315 8

9 A strong fundament for profitable growth is in place in Sweden Customer Programme Competitive mortgage SACO agreement New Mgmt. in place Branch restructuring Funding model 9

10 Governance to ensure a healthy and profitable growth Risk appetite framework Pricing Customer Programme A focused tool box ensures profitable growth Operational efficiency matrix 10

11 Within a few years a new breed of customer will dominate the digital natives Traditional consumers Transitionals Digital natives

12 Our customers have gone mobile Average channel usage per customer per month, Danske Bank DK YTD

13 Wealth is an attractive area with high expected growth, and Danske Bank is positioned in the right locations in Europe CAGR , % Bubble size: HNWI Onshore Personal Financial Assets Spain Austria Luxembourg France Netherlands Italy Portugal Switzerland Finland Belgium Ireland Germany Norway Denmark Sweden United Kingdom CAGR , % 13

14 Four key strategic themes emerging emerge within wealth, and they will be the focus of the new business unit in Danske Bank 1 World-class customer experience 2 Go-to market excellence 3 Operational excellence 4 People and Culture 14

15 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 ( Securities Act ), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. 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 forward-looking 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. 15