Building franchise value in an uncertain world Eivind Kolding CEO & Chairman of the Executive Board 25 September 2012
In the first six months... 9 countries 25 business units 25 townhall meetings with over 2,300 participants Meetings with key political stakeholders Meetings with investors and analysts 90 meetings with customers 2
Status New organisation in place by 1 June 2012 New strategy to be announced on 30 October 2012 3
The new organisation reinforces our position as a strong Nordic financial services provider Personal Banking Business Banking Corporates & Institutions 4
We are taking three steps towards becoming a more customer-centric bank 1 Three new segmentbased business units Personal Banking CEO Business Banking Corporates & Institutions 2 Streamlined group functions Credit, Pricing & Risk HR Finance & Legal IT Communications Services 3 A single bank brand across all markets 5
New credit organisation will optimise long-term credit quality and strengthen risk management All day-to-day credit underwriting execution will take place in business units Strong focus on credit portfolio optimisation and capital allocation Increase automated credit decisions in Personal Banking Consolidate and support pricing excellence 6
Northern Bank and National Irish Bank will be integrated and rebranded National Irish Bank Retail customers Integrated into Northern Bank (1 June 2012) Corporate and institutional customers Integrated into Corporate & Institutions (1 June 2012) Non-core customers Focus on optimising value and controlled phase-out 7
We must raise earnings, restore our image and increase satisfaction Profit Image Customer satisfaction Moody s S&P Fitch Pre -tax (DKK bn) Danske Bank Danske Bank Aaa AAA AAA 19.3 Sector (DK) Sector (DK) Aa1 AA+ AA+ Aa2 AA AA Aa3 AA- AA- A1 A+ A+ A2 A A A3 A- A- 4.8 6.5 4.2 Baa1 BBB+ BBB+ Baa2 BBB BBB 2.2 Baa3 BBB- BBB- 2007 2008 2009 2010 2011 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 Ca D D 8
The new strategy will have a clear plan to transform the bank Corporate strategy Vision/Mission Corporate story Corporates & Institutions strategy Business Banking strategy Personal Banking strategy Short-term measures 9
Bank BoAML of America Banking & Merrill Insurance Lynch CEO Banking Conference & Insurance CEO Conference Common themes for corporate strategy Corporate strategy Risk appetite Portfolio review Capital efficiency Lean 10
Bank BoAML of America Banking & Merrill Insurance Lynch CEO Banking Conference & Insurance CEO Conference Success factors for Personal Banking strategy Personal Banking strategy Fair pricing of loans that reflects challenges from capital and liquidity regulations Lower service costs Improvement in our image 11
Bank BoAML of America Banking & Merrill Insurance Lynch CEO Banking Conference & Insurance CEO Conference Success factors for Business Banking strategy Business Banking strategy Further improvement of loan book quality Exploit market-leading products and solutions to enhance customer benefits and fee income Optimise product mix on the basis of new regulations 12
Bank BoAML of America Banking & Merrill Insurance Lynch CEO Banking Conference & Insurance CEO Conference Success factors for Corporates & Institutions strategy Corporates & Institutions strategy Increased focus on transaction banking and debt capital markets Leveraging our platform to enhance competencies and thereby cross-sales Adaptation to new regulations REGULATION 13
Key quarterly figures net profit is improving as impairments decline Total income (DKK bn) Expenses (DKK bn) 11.5 8.3 11.9 12.4 12.3 6.7 5.5 6.5 6.9 6.6 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Impairments (DKK bn) Net profit (DKK bn) 2.8 2.8 4.8 3.9 3.1 1.2 0.8 1.5 0.2-0.4 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 14
Short-term actions will increase profitability Increase income Net interest income will improve through price increases across segments and regions Reduce expenses Cost-savings programme will reduce costs by DKK 2 bn and headcount by 2,000 FTEs by end-2013, accelerated in the new organisation Strong capital and improved ratings CT1 of 12% and strong liquidity; objective to improve ratings, but shortterm actions will pay off only over the long term 15
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Disclaimer 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 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. 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. 17