Fact Book Q4 2007 Supplementary Information for Investors and Analysts Unaudited Updated: January 31, 2008 1
Table of contents 1.1. Financial goals 4 1.2. Share Data 4 1.3. Ratings 5 1.4. Changes in accounting principles and presentation 6 2. Financial statistics 2.1. Income statement - Danske Bank Group 8 2.1.1. Breakdown of income 9 2.1.2. Breakdown of expenses 14 2.2. Balance sheet 16 2.2.1. Breakdown of balance sheet 17 2.3. Key ratios 21 3. Business segments and key statistics 3.1. Banking Activities 24 3.1.1. Banking Activities Denmark 25 3.1.2. Banking Activities Finland 26 3.1.3. Banking Activities Sweden 27 3.1.4. Banking Activities Norway 28 3.1.5. Banking Activities Northern Ireland 29 3.1.6. Banking Activities Ireland 30 3.1.7. Banking Activities Baltics 31 3.1.8. Other Banking Activities 33 3.2. Mortgage Finance 34 3.3. Danske Markets 36 3.4. Danske Capital 37 3.5. Danica Pension 39 3.6. Other areas 40 4. Macroeconomics 4.1.Tables and charts 42 2
Fact Book Q4 2007 This publication is meant as a supplement to the information published in the quarterly interim reports and the annual report. Additional information can be found on www.danskebank.com. For further information, please contact: Financial calendar Tonny Thierry Andersen, Bankdirektør, CFO Direct: +45 45 14 07 07 Mobile: +45 22 65 65 97 tonan@danskebank.dk Date April 29, 2008 August 7, 2008 Event & location Quarterly report first quarter Interim report Martin Gottlob, Head of Investor Relations Direct: +45 45 14 07 92 Mobile: +45 25 27 25 41 mgot@danskebank.dk October 28, 2008 Quarterly report first nine months Lars Holm, Senior IR Officer Direct: +45 45 14 06 04 Mobile: +45 25 10 47 17 laho@danskebank.dk Heidi Sørensen, IR assistant Direct: +45 45 14 06 80 Fax: +45 45 14 97 87 heis@danskebank.dk Disclaimer This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offers to purchase or sell any securities, currency or financial instrument. Whilst reasonable care has been taken to ensure that the contents of this publication are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff may perform business services, hold, establish, change or cease to hold positions in any securities, currency or financial instrument mentioned in this publication. The Danske Bank Groups research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Bank is regulated by the FSA for the conduct of investment business in the UK and is a member of the London Stock Exchange. Copyright 2008 Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission. 3
1.1. Financial goals The Group bases its capital management on a set of overall capital targets. The table below shows the targets for the fourth quarter of 2007 as well as the realised ratios. Financial goals Target Realised Q4 2007 CRD target (%) (%) % Core (tier 1) capital ratio (ex hybrid core capital) 5.5-6.0 5.6 8.0 Hybrid core capital 1.0-1.5 1.0 2.0 Solvency ratio 9.0-10.0 9.3 13.0 Expected payout ratio 30-50 40 30-50 Dividends and share buybacks If the Group has surplus capital above its target that is not needed for future growth, its policy is to return this surplus to the shareholders through share buybacks. The total amount of dividends and share buybacks since 2000 can be seen in the table below. Total distribution (DKr m) 2007 2006 2005 2004 2003 2002 2001 2000 Dividends 5,940 5,416 6,383 5,277 4,661 3,477 3,477 3,382 Share buybacks - - - 5,000 5,000 3,000-4,999 Total 5,940 5,416 6,383 10,277 9,661 6,477 3,477 8,381 Net profit for the year 14,870 13,545 12,685 9,226 9,286 8,242 8,713 6,304 Total as % of the net profit for the year 40% 40% 50% 111% 104% 79% 40% 133% * In November 2006, shareholders equity was raised by DKr14.5bn in connection with the acquisition of Sampo Bank. The dividend of 40% has been calculated on the basis of the increased share capital at the end of 2006. 1.2. Share data The Danske Bank Group is the largest financial services organisation in Denmark. The average daily trading volume of Danske Bank shares in the fourth quarter of 2007 was DKr 520m. With a total trading volume of Dkr 166.7bn, the Danske Bank share was the second most actively traded share on the Copenhagen Stock Exchange in 2007. At the end of 2007, there were 698,804,276 shares at a nominal value of DKr10 per share. Danske Bank shares are negotiable, and no special rights are attached to them. No shareholder is obligated to redeem shares in full or in part. The shares are issued to the bearer, but they can be registered by name in the Banks register of shareholders. No. of shares Year 2007 Issued shares at January 1 698,804,276 Buyback programme, preceding year - Issued shares, preceding year - Issued shares at December 31 698,804,276 The Group's trading portfolio of own shares 8,823,904 The Group's investments in own shares on customers' behalf 6,377,122 Shares outstanding at December 31 683,603,250 Average number of shares outstanding, Q1-Q4 683,990,019 4
1.3. Ratings Danske Bank rating overview The agencies each use their own rating scales, on which the highest possible ratings are AAA and Aaa (see the table below). Ratings in the A categories are considered "investment grade", indicating only a marginal risk that the issuer will go default. The Danske Bank Group is currently rated by the three large international credit rating agencies: Moody's, Standard & Poor's and Fitch Ratings. Moody s Standard & Poor s S&P s Insurer Financial Strength Fitch Short term Long term Short term Long term Long term Short term Long term P-1 Aaa A-1+ AAA AAA F1+ AAA P-2 Aa1 A-1 AA+ AA+ F1 AA+ P-3 Aa2 A-2 AA AA F2 AA Aa3 A-3 AA- AA- F3 AA- A1 A+ A+ A+ A2 A A A A3 A- A- A- Baa1 BBB+ BBB+ BBB+ Baa2 BBB BBB BBB Baa3 BBB- BBB- BBB- 5
1.4. Changes in accounting principles and presentation Changes in accounting principles The Group has not changed its accounting principles from those presented in the Fact Book Q3 2007. Changes in presentation In November 2006, the Danske Bank Group entered into an agreement to buy all shares of the Finnish Sampo Bank. The acquisition was approved on January 30, 2007, and effected on February 1, 2007, from which date the Sampo Bank group was consolidated in the accounts of Danske Bank. Due to the acquisition of Sampo Bank, beginning the first quarter of 2007, the Groups reporting was expanded with two segments Banking Activities Finland and Banking Activities Baltics. Comparative figures in the financial reporting on the activities of Finland, the Baltic countries, Danske Markets, Danske Capital and Other Areas have been restated on a pro forma basis to include the financial results of the Sampo Bank group as of February 1, 2006. The breakdown of expenses under 2.1 Income statement does not match the expenses allocated to the business areas, as integration expenses incurred by the business areas are stated separately. Comparative figures have been restated. 6
Financial statistics 7
2.1. Income statement Danske Bank Group Full year Full year Income statement (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Net interest income 6,252 6,231 6,053 5,724 6,204 5,775 5,593 5,038 24,260 22,610 Hereof amortisation of loans and deposits* 46 46 46 31 - - - - 169 - Financing 445 417 409 392 346 334 364 348 1,663 1,392 Investment 391 395 425 517 400 293 416 575 1,728 1,684 Services 40 12 25 33 6 39 35 58 110 138 Fees generated by activities 876 824 859 942 752 666 815 981 3,501 3,214 Financing 62 56 47 88 126 104 107 102 253 439 Investment 659 640 632 549 504 373 392 384 2,480 1,653 Services 629 646 676 603 498 508 492 497 2,554 1,995 Fees generated by portfolios 1,350 1,342 1,355 1,240 1,128 985 991 983 5,287 4,087 Net fee income, Sampo - - - - 471 406 424 275-1,576 Net fee income, total 2,226 2,166 2,214 2,182 2,351 2,057 2,230 2,239 8,788 8,877 Net trading income 1,694 1,990 2,310 1,893 1,632 1,868 1,672 2,108 7,887 7,280 Other income 872 586 679 873 887 733 780 552 3,010 2,952 Net income from insurance business 180 269 358 311 554 768-165 198 1,118 1,355 Total other income 2,746 2,845 3,347 3,077 3,073 3,369 2,287 2,858 12,015 11,587 Total income 11,224 11,242 11,614 10,983 11,628 11,201 10,110 10,135 45,063 43,074 Staff expenses 2,966 2,918 3,062 2,771 2,638 2,509 2,326 2,240 11,717 9,713 Severance pay 14 61 259 92 39 20 17 23 426 99 Holiday payment** 39-114 74 27 37-105 76 29 26 37 Bonuses 304 298 341 322 153 194 214 283 1,265 844 IT expenses 775 705 700 648 533 451 547 621 2,828 2,152 Other expenses 1,500 1,231 1,306 1,190 1,069 989 1,171 1,065 5,227 4,294 Staff and administration expenses 5,598 5,099 5,742 5,050 4,469 4,058 4,351 4,261 21,489 17,139 Staff and administration expenses, Sampo - - - - 862 647 724 478-2,711 Staff and administration expenses, total 5,598 5,099 5,742 5,050 5,331 4,705 5,075 4,739 21,489 19,850 Depreciation, intangibles 419 428 429 364 221 215 186 192 1,640 814 Depreciation, tangibles 537 423 486 448 555 478 431 510 1,894 1,974 Other operating expenses 20 16 6 5-4 1-3 47 2 Operating expenses*** 6,574 5,966 6,663 5,867 6,107 5,402 5,693 5,438 25,070 22,640 Hereof integration expenses 285 261 326 139 80 53 262 209 1011 604 Profit before credit loss expenses 4,650 5,276 4,951 5,116 5,521 5,799 4,417 4,697 19,993 20,434 Credit loss expenses 427 255 183-178 61-68 -349-128 687-484 Profit before tax 4,223 5,021 4,768 5,294 5,460 5,867 4,766 4,825 19,306 20,918 Tax 659 1,344 961 1,472 1,271 1,562 1,363 1,353 4,436 5,549 Net profit 3,564 3,677 3,807 3,822 4,189 4,305 3,403 3,472 14,870 15,369 Attributable to minority interests -3 34 25 1 10 8 20 41 57 79 Net profit after minority interest 3,567 3,643 3,782 3,821 4,179 4,297 3,383 3,431 14,813 15,290 * The fair value of loans, advances and deposits in the opening balance sheet increased by DKr439m compared with the carrying amount of these items recognised before the acquisition. The effect of the value adjustment on interest income generated by Banking Activities Finland is a decrease of DKr169m in 2007 and DKr67m in each of the following four years. ** In Denmark, the second quarter was affected by the holiday payment in the week 6. *** See specificifaction in section 2.1.2. The pro forma figures include the Sampo Bank group as of February 2006. 8
2.1.1. Breakdown of income Country distribution of net interest income Q4 2007 Others, 3.1% Baltics, 2.9% Ireland, 13.3% Net interest income in Banking Activities, Denmark (YOY) Change in interest income in Banking Activities Denmark (DKr m) Q406 Change Q407 Net interest income 2,693 Loan volume 199 Loan margins -122 Deposit volume 66 Deposit margins -111 Other -30 Net interest income 2,695 Northern Ireland, 7.2% Finland, 5.2% Denmark, 50.5% Norway, 9.3% Sweden, 8.5% Q4 2006 Baltics, 1.7% Others, 3.0% Ireland, 13.7% Northern Ireland, 7.3% Finland, 4.2% Denmark, 55.3% Norway, 8.1% Sweden, 6.7% The pro forma figures include the Sampo Bank group as of February 2006. 9
Money market rates Spreads % 8.00 BP 80 7.00 6.00 60 5.00 Opdateres 40 Itraxx Main* 4.00 3.00 20 Iboxx Covered** 2.00 0 1.00 Danish mortgage bond*** 0.00-20 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 CIBOR 3 month STIBOR 3 month NIBOR 3 month Danish discount rate LIBOR 3 month EURIBOR 3 month * Index based on a basket of 5 year credit default swaps (CDS) for investment grade companies ** European Covered Bonds versus European swap rate *** Realkredit Danmark 4% 2012 mortgage bond versus DKK swap rate Source: Danske Markets 10
Interest income margins, Banking Activities Denmark, Sweden, Norway, Northern Ireland and Ireland 2.50 2.30 2.10 1.90 1.70 1.50 1.30 1.10 0.90 0.70 0.50 Q406 Q107 Q207 Q307 Q407 Lending spread (1) (from Tom/next interest rate) (%) Denmark Lending spread (1) (from Tom/next interest rate) (%) Sweden Lending spread (1) (from Tom/next interest rate) (%) Norway Lending spread (1) (from Tom/next interest rate) (%) Northern Ireland Lending spread (1) (from Tom/next interest rate) (%) Ireland 2.50 2.30 2.10 1.90 1.70 1.50 1.30 1.10 0.90 0.70 0.50 Q406 Q107 Q207 Q307 Q407 Deposit spread (2) (from Tom/next interest rate) (%) Denmark Deposit spread (2) (from Tom/next interest rate) (%) Sweden Deposit spread (2) (from Tom/next interest rate) (%) Norway Deposit spread (2) (from Tom/next interest rate) (%) Northern Ireland Deposit spread (2) (from Tom/next interest rate) (%) Ireland 11
Exchange rates (Cross currency: Danish krone (DKK)), end of period Exchange rate (end of period) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 Euro (EUR) 745.66 745.44 744.22 745.08 745.60 745.76 745.92 746.24 US Dollars (USD) 507.53 525.74 551.07 559.45 566.14 589.07 586.74 616.52 English pound (GBP) 1,014.78 1,069.80 1,104.18 1,096.03 1,110.35 1,100.43 1,077.76 1,071.57 Swedish kroner (SEK) 78.92 80.90 80.43 79.72 82.47 80.36 80.74 79.12 Norwegian kroner (NOK) 93.51 96.58 93.35 91.77 90.51 90.56 93.99 93.66 Polish zloty (PLN) 207.04 197.57 197.53 192.69 194.62 187.79 183.97 189.28 Estonian kroner (EEK) 47.66 47.64 47.56 47.62 47.65 47.66 47.67 47.69 Latvian lats (LVL) 1,069.81 1,059.16 1,068.82 1,049.85 1,069.42 1,071.49 1,071.57 1,072.03 Lithuanian litas (LTL) 215.96 215.89 215.54 215.79 215.94 215.99 216.03 216.13 Net interest income Dkr m 6,500 5,200 3,900 2,600 1,300 0 Q406 Q107 Q207 Q307 Q407 The pro forma figures include the Sampo Bank group as of February 2006. 12
Net fee income Dkr m 2,500 2,000 1,500 1,000 500 0 Q406 Q107 Q207 Q307 Q407 Fees generated by activities Fees generated by portfolios Net fee income, Sampo The pro forma figures include the Sampo Bank group as of February 2006. As of Q1 2007, no specific net fee income for Sampo Bank is shown, as this has been included in fees generated by activities and portfolios. Total other income DKr m 4,000 3,200 2,400 1,600 800 0 Q406 Q107 Q207 Q307 Q407 Net trading income Other income Net income from insurance business The pro forma figures include the Sampo Bank group as of February 2006. 13
2.1.2. Breakdown of expenses Operating expenses Full year Full year DKr m Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Operating expenses 6,574 5,966 6,663 5,867 6,107 5,402 5,693 5,438 25,070 22,640 Amortisation intangibles Banking activities Finland 138 179 135 128 - - - - 580 - Banking activities Northern Ireland 87 104 115 113 118 118 112 111 419 459 Banking activities Ireland 26 25 26 25 26 25 25 26 102 102 Danske Markets -3 3 - - - - - - - - Danske Capital 8 11 9 6 - - - - 34 - Amortisation, intangibles, total 256 322 285 272 144 143 137 137 1,135 561 Integration expenses Banking activities Denmark 56 80 55 13 - - - - 204 - Banking activities Finland 161 112 84 12 - - - - 369 - Banking activities Northern Ireland 31 26 191 30 72 49 194 130 278 445 Banking activities Ireland 32 43 50 30 8 4 68 79 155 159 Banking activities Baltics 5 - - - - - - - 5 - Other areas - - -54 54 - - - - - - Integration expenses, total 285 261 326 139 80 53 262 209 1,011 604 Total expenses, ex amortisation of intangible assets and integration expenses 6,033 5,383 6,052 5,456 5,883 5,206 5,294 5,092 22,924 21,475 The pro forma figures include the Sampo Bank group as of February 2006. 14
Total IT expenses Full year Full year IT expenses (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Total IT expenses (development and operations) 1,118 1,035 1,156 963 782 668 703 849 4,272 3,002 Hereof IT integration expenses (development and operations) 169 122 81 56 - - - - 428 - Total IT expenses/operating expenses, % 17.0 17.3 17.3 16.4 12.8 14.4 14.4 17.4 17.0 13.3 Total IT expenses/profit before tax, % 26.5 20.6 24.2 18.2 14.3 13.1 17.1 19.4 22.1 14.4 Total IT integration expenses/operating expenses, % 2.6 2.0 1.2 1.0 - - - - 1.7 - Total IT integration expenses/profit before tax, % 4.0 2.4 1.7 1.1 - - - - 2.2 - Note: Total IT expenses include costs related to software, hardware, internal IT staff, external IT consultants, rent on premises, depreciation, phone and MIPS, etc. Sampo Bank was consolidated in the accounts with effect from the first quarter of 2007. Comparative figures have not been restated. Full-time employees broken down by business area End of year End of year FTE - end of period Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Banking Activities Denmark 6,019 5,968 5,934 6,025 6,168 6,285 6,273 6,258 6,019 6,168 Banking Activities Finland 2,117 2,096 2,119 2,124 2,083 2,012 1,981 1,993 2,117 2,083 Banking Activities Sweden 912 918 920 921 1,135 1,122 1,114 1,142 912 1,135 Banking Activities Norway 1,062 1,069 1,069 1,071 1,323 1,293 1,152 1,148 1,062 1,323 Banking Activities Northern Ireland 1,295 1,279 1,313 1,378 1,862 1,845 1,866 1,905 1,295 1,862 Banking Activities Ireland 608 627 653 666 698 724 717 717 608 698 Banking Activities Baltics 1,304 1,296 1,212 1,158 1,046 1,008 978 943 1,304 1,046 Banking Activities Others 419 420 403 392 392 405 391 377 419 392 Banking Activities total 13,736 13,673 13,623 13,735 14,707 14,694 14,472 14,483 13,736 14,707 Mortgage Finance 519 717 720 736 740 755 752 772 519 740 Danske Markets 907 881 886 861 875 868 844 856 907 875 Danske Capital 565 564 561 541 464 460 444 418 565 464 Danica Pension 960 954 936 909 898 907 875 844 960 898 Shared Services Center* 5,016 4,939 4,855 4,879 3,827 3,824 3,771 3,795 5,016 3,827 Others 1,929 1,942 1,954 1,989 2,035 2,080 2,153 2,121 1,929 2,035 Group total 23,632 23,670 23,535 23,650 23,546 23,588 23,311 23,289 23,632 23,546 * The large increase in full time employees from Q406 to Q107 is due to the transfer of employees from Sweden, Norway, Northern Ireland and Ireland to the Shared Services Center. The pro forma figures include the Sampo Bank group as of February 2006. 15
2.2. Balance sheet End of year End of year Balance sheet (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Cash in hand and demand deposits with central banks 13,861 13,524 18,934 17,594 25,158 28,850 22,731 39,095 13,861 25,158 Due from credit institutions and central banks 345,959 313,520 289,967 293,226 278,817 310,010 283,366 278,868 345,959 278,817 Trading portfolio assets 652,137 587,228 539,256 475,451 504,308 445,173 408,468 371,237 652,137 504,308 Financial investment securities 37,651 33,309 32,728 26,124 28,970 32,272 26,819 32,320 37,651 28,970 Assets held for sale 59 - - - 1,796 - - - 59 1,796 Repo lending 287,223 289,230 293,930 294,916 294,555 284,099 273,816 217,261 287,223 294,555 Bank loans and advances (ex repo) 1,073,190 1,041,262 991,129 932,784 916,970 877,337 848,432 786,750 1,073,190 916,970 Mortgage loans 627,809 614,033 600,337 607,725 602,584 592,784 573,105 567,002 627,809 602,584 Assets under pooled schemes and unit-linked investment contracts 40,758 38,792 40,215 39,006 39,602 37,945 36,540 37,501 40,758 39,602 Assets under insurance contracts 190,223 192,893 194,564 195,069 194,302 190,226 181,366 187,732 190,223 194,302 Holdings in associated undertakings 1,128 984 977 1,114 1,068 1,045 1,021 1,095 1,128 1,068 Intangible assets 29,296 29,780 30,093 30,391 7,869 8,055 8,073 8,098 29,296 7,869 Investment property 4,904 3,863 3,957 3,831 3,914 3,818 3,679 3,580 4,904 3,914 Tangible assets 9,312 8,638 8,643 8,658 8,525 8,078 8,087 7,918 9,312 8,525 Current tax assets 690 413 209 211 63 100 198 145 690 63 Deferred tax assets 635 540 523 456 619 488 490 578 635 619 Others 34,695 26,753 26,392 24,591 28,915 29,791 27,404 34,185 34,695 28,915 Other assets 36,020 27,706 27,124 25,258 29,597 30,379 28,092 34,908 36,020 29,597 Total assets 3,349,530 3,194,762 3,071,854 2,951,147 2,938,035 2,850,071 2,703,595 2,573,365 3,349,530 2,938,035 Due to credit institutions and central banks 677,355 529,209 517,013 539,104 569,142 552,060 478,095 428,972 677,355 569,142 Trading portfolio liabilities 331,547 342,458 281,413 271,281 240,304 232,672 222,605 208,078 331,547 240,304 Liabilities held for sale - - - - 888 - - - - 888 Repo deposits 125,721 114,711 125,115 102,333 104,044 115,114 121,756 104,890 125,721 104,044 Due to customers (ex repo) 798,274 796,808 762,356 680,007 693,142 654,084 658,956 597,856 798,274 693,142 Issued mortgage bonds 518,693 489,926 485,650 483,066 484,217 470,227 456,298 446,806 518,693 484,217 Deposits under pooled schemes and unit-linked investment contracts 50,260 48,143 48,298 47,553 46,983 44,603 42,731 43,863 50,260 46,983 Liabilities under insurance contracts 213,419 215,448 213,966 215,313 215,793 213,770 205,805 210,402 213,419 215,793 Other issued bonds 402,391 438,809 423,345 403,757 365,761 377,750 333,014 360,071 402,391 365,761 Provisions 2,010 2,152 2,199 2,159 2,620 2,650 2,972 3,098 2,010 2,620 Current tax liabilities 1,142 2,386 1,340 1,032 539 3,017 1,801 958 1,142 539 Deferred tax liabilities 3,397 3,243 3,324 3,325 2,046 1,823 1,764 1,722 3,397 2,046 Others 61,941 53,536 52,965 46,409 61,059 57,405 56,504 48,123 61,941 61,059 Other liabilities 68,490 61,317 59,828 52,925 66,264 64,895 63,041 53,901 68,490 66,264 Subordinated debt 59,025 56,583 57,391 62,120 56,325 48,017 47,832 48,175 59,025 56,325 Total liabilities 3,245,175 3,093,412 2,974,375 2,857,459 2,842,863 2,773,192 2,630,133 2,503,014 3,245,175 2,842,863 Share capital 6,988 6,988 6,988 6,988 6,988 6,383 6,383 6,383 6,988 6,988 Foreign currency translation -30 3 3 4 9 9 1-14 -30 9 Proprosed dividend 5,940 - - - 5,416 - - - 5,940 5,416 Profit brought forward 91,325 94,223 90,415 86,645 82,713 70,440 67,029 63,933 91,325 82,713 Minority interests 132 136 73 51 46 47 49 49 132 46 Shareholders' equity 104,355 101,350 97,479 93,688 95,172 76,879 73,462 70,351 104,355 95,172 Total liabilities and equity 3,349,530 3,194,762 3,071,854 2,951,147 2,938,035 2,850,071 2,703,595 2,573,365 3,349,530 2,938,035 Risk-weighted items (avg.) (Group) 1,269,491 1,194,683 1,184,313 1,182,191 1,197,993 1,153,106 1,114,492 1,069,817 1,207,873 1,134,256 Risk-weighted items (end of period) (Group) 1,312,906 1,259,820 1,193,507 1,137,443 1,252,645 1,186,466 1,152,488 1,097,825 1,312,906 1,252,645 The pro forma figures include the Sampo Bank group as of February 2006. 16
2.2.1. Breakdown of balance sheet Lending portfolio broken down by segment Lending portfolio breakdown, end of period End of year End of year Volume (DKr bn) Segment Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Banking Activities Denmark Retail 149.5 143.2 139.1 135.0 130.6 124.3 118.5 113.7 149.5 130.6 Hereof bank loans secured on real property 65.4 62.9 61.5 59.8 57.8 54.3 50.9 47.1 65.4 57.8 Corporate 208.0 197.6 198.7 187.1 183.3 172.4 172.2 160.1 208.0 183.3 Banking Activities Finland Retail 85.0 83.4 81.2 78.1 77.4 75.2 72.5 69.1 85.0 77.4 Corporate 79.2 76.3 73.4 71.0 69.4 69.2 69.5 68.3 79.2 69.4 Banking Activities Sweden Retail 56.4 55.6 54.0 51.5 52.2 48.4 46.9 43.0 56.4 52.2 Corporate 105.2 99.0 92.8 86.7 86.3 85.1 81.3 73.7 105.2 86.3 Banking Activities Norway Retail 55.8 55.8 52.2 49.3 46.8 46.6 46.6 44.6 55.8 46.8 Corporate 80.8 75.2 66.0 60.5 58.5 54.0 50.1 45.7 80.8 58.5 Banking Activities Northern Ireland* Retail 17.4 18.2 18.3 17.5 17.5 17.3 16.7 18.6 17.4 17.5 Corporate 41.4 42.7 42.4 38.6 40.9 40.1 36.1 23.1 41.4 40.9 Banking Activities Ireland* Retail 27.6 26.5 26.1 22.8 20.6 19.6 19.3 14.4 27.6 20.6 Corporate 41.8 40.2 37.4 33.7 30.6 27.1 22.7 22.1 41.8 30.6 Banking Activities Baltics Retail 12.9 12.0 11.1 9.0 8.1 7.3 6.4 5.6 12.9 8.1 Corporate 14.0 12.9 11.5 11.5 10.4 9.1 8.0 7.0 14.0 10.4 Danske Markets Retail - - - - - - - - - - Corporate 61.1 62.4 39.6 34.4 38.7 38.0 39.4 35.7 61.1 38.7 Other business segments Retail 12.1 10.2 7.8 8.0 9.9 8.8 9.4 7.3 12.1 9.9 Corporate 25.0 30.1 39.6 38.1 35.7 34.8 32.7 34.7 25.0 35.7 Bank lending total (ex repos) Retail 416.7 404.9 389.8 371.2 363.1 347.5 336.3 316.3 416.7 363.1 Corporate 656.5 636.4 601.4 561.6 553.8 529.8 512.0 470.4 656.5 553.8 Repos, total Retail - - - - - - - - - - Corporate 287.2 289.2 293.9 294.9 294.6 284.1 273.8 217.3 287.2 294.6 Mortgage finance lending total Retail 378.3 372.8 363.6 373.0 371.4 363.6 348.3 346.6 378.3 371.4 Corporate 249.5 241.2 236.7 234.7 231.2 229.2 224.9 220.4 249.5 231.2 Lending total Retail 795.0 777.7 753.4 744.2 734.5 711.1 684.6 662.9 795.0 734.5 Corporate 1,193.2 1,166.8 1,132.0 1,091.2 1,079.6 1,043.1 1,010.7 908.1 1,193.2 1,079.6 Total lending 1,988.2 1,944.5 1,885.4 1,835.4 1,814.1 1,754.2 1,695.3 1,571.0 1,988.2 1,814.1 * After the conversion at Easter 2006, a new method of grouping customers into retail customers and corporate customers was introduced in Northern Bank and National Irish Bank. The improved method affects the figures for retail and corporate customers from the first half of 2006. In addition, the method resulted in the transfer of deposits with National Irish Bank of DKr5bn to Danske Markets. The pro forma figures include the Sampo Bank group as of February 2006. 17
Deposit portfolio broken down by segment Deposit portfolio breakdown, end of period End of year End of year Volume (DKr bn) Segment Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Banking Activities Denmark Retail 160.8 158.1 159.1 151.7 146.7 144.1 145.9 138.4 160.8 146.7 Corporate 138.4 141.9 143.9 136.1 128.4 121.2 121.4 120.4 138.4 128.4 Banking Activities Finland Retail 42.8 42.2 41.4 40.6 41.9 40.9 40.3 38.4 42.8 41.9 Corporate 53.7 51.5 47.6 44.0 47.4 45.9 47.1 42.5 53.7 47.4 Banking Activities Sweden Retail 18.2 17.8 16.6 13.8 13.7 13.8 13.0 11.5 18.2 13.7 Corporate 39.2 35.2 34.6 33.5 36.3 32.2 31.6 27.9 39.2 36.3 Banking Activities Norway Retail 15.6 15.6 15.4 13.9 12.7 12.9 13.7 12.5 15.6 12.7 Corporate 42.0 42.1 42.1 34.6 34.0 27.5 30.8 27.8 42.0 34.0 Banking Activities Northern Ireland* Retail 28.4 29.5 29.6 27.8 27.7 25.7 24.2 24.1 28.4 27.7 Corporate 27.9 30.4 31.0 29.1 33.3 33.7 30.2 17.6 27.9 33.3 Banking Activities The Republic of Ireland* Retail 14.3 14.3 13.5 13.0 12.9 12.2 10.8 11.6 14.3 12.9 Corporate 9.7 9.0 9.0 7.9 8.5 7.5 6.3 9.8 9.7 8.5 Banking Activities Baltics Retail 2.9 2.7 2.7 2.5 2.4 2.2 2.2 1.9 2.9 2.4 Corporate 8.7 7.8 6.5 6.5 6.3 5.6 5.2 4.5 8.7 6.3 Danske Markets Retail 0.6 0.7 0.7 0.7 0.7 0.7 0.7 0.6 0.6 0.7 Corporate 181.5 141.1 108.9 112.3 130.5 118.8 124.9 97.9 181.5 130.5 Other business segments Retail 5.9 5.7 6.0 5.1 4.6 4.1 4.3 4.3 5.9 4.6 Corporate 7.7 51.2 53.8 6.9 5.2 5.1 6.3 6.2 7.7 5.2 Bank deposits total (ex repos) Retail 289.5 286.6 285.0 269.1 263.3 256.6 255.1 243.3 289.5 263.3 Corporate 508.8 510.2 477.4 410.9 429.9 397.5 403.8 354.6 508.8 429.9 Repos, total Retail - - - - - - - - - - Corporate 125.7 114.7 125.1 102.3 104.0 115.1 121.8 104.9 125.7 104.0 Deposits total Retail 289.5 286.6 285.0 269.1 263.3 256.6 255.1 243.3 289.5 263.3 Corporate 634.5 624.9 602.5 513.2 533.9 512.6 525.6 459.5 634.5 533.9 Total deposits 924.0 911.5 887.5 782.3 797.2 769.2 780.7 702.8 924.0 797.2 Pooled schemes 40.3 40.3 40.5 40.3 40.0 38.7 37.3 38.6 40.3 40.0 * After the conversion at Easter 2006, a new method of grouping customers into retail customers and corporate customers was introduced in Northern Bank and National Irish Bank. The improved method affects the figures for retail and corporate customers for the first half of 2006. In addition, the method resulted in the transfer of deposits with National Irish Bank of DKr5bn to Danske Markets. The pro forma figures include the Sampo Bank group as of February 2006. 18
Bank lending, retail Q407 Bank lending, corporate Q407 Northern Ireland 4% Norway 13% Ireland 7% Baltics 3% Others 3% Denmark 36% Baltics 2% Ireland 6% Northern Ireland 6% Danske Markets 9% Others 4% Denmark 33% Sweden 14% Bank deposits, retail Q407 Finland 20% Norway 12% Bank deposits, corporate Q407 Sweden 16% Finland 12% Ireland 5% Northern Ireland 10% Norway 5% Baltics 1% Others 2% Danske Markets 35% Others 2% Denmark 27% Sweden 6% Denmark 56% Finland 11% Finland 15% Baltics 2% Ireland 2% Northern Ireland 5% Norway 8% Sweden 8% 19
Impairment charges and non-performing loans Impairment charges and non-performing loans Full year Full year (Danske Bank Group) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Accumulated impairment charges (DKr bn end period)* 4.90 4.64 4.55 4.53 4.20 4.31 4.49 4.78 4.90 4.20 Non performing loans (Dkr bn end period) 3.94 3.56 3.25 2.87 3.14 3.16 2.60 3.44 3.94 3.14 Impairment charges as % of loans and guarantees p.a. 0.08 0.05 0.04-0.04 0.01-0.03-0.08-0.03 0.03-0.03 Accumulated impairment charges as % of loans and guarantees 0.23 0.23 0.23 0.24 0.22 0.22 0.24 0.28 0.23 0.22 Credit loss expenses coverage ratio** 124 130 140 158 134 136 173 139 124 134 * Impairment charges against loans, advances and gurantees. ** Accumulated impairment charges as % of non performing loans. Sampo Bank was consolidated in the accounts with effect from the first quarter of 2007. Comparative figures have not been restated. Change in accumulated impairment charges Change in accumulated impairment charges (DKr m) Accumulated impairment charges beg. 2007 4,204 Impairment charges 3,965 Reversals of impairment charges 3,166 Currency effect -10 Earlier impairment charges now written off 875 Other inflows and outflows 782 Accumulated impairment charges, end Q407 4,900 Expected loss Expected loss (basis points of avg. loans and guarantees) 2007 2006 2005 2004 2003 2002 Banking Activities, Denmark 28 32 42 47 64 65 Banking Activities, Norway 9 9 14 13 22 44 Banking Activities, Sweden 9 13 12 9 27 19 Banking Activities, Northern Ireland 27 31 16 - - - Banking Activities, Ireland 35 37 13 - - - Banking Activities, UK - - - 28 21 19 Banking Activities, US - - - 3 11 19 Banking Activities, Other 26 10 40 3 - - Mortgage Finance 1 2 2 3 3 3 Danske Markets 3 2 5 3 5 9 Danica Pension - - - - - - Danske Capital 9 9 10 3 8 2 Group total (ex Sampo Bank) 10 14 14 14 19 23 20
2.3. Key ratios Full year Full year Key ratios Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Net profit for the period per share, DKr 5.2 5.3 5.5 5.6 6.0 5.9 4.7 5.0 21.7 21.5 Diluted net profit for the period per share, DKr 5.2 5.3 5.5 5.6 5.9 5.9 4.7 5.0 21.6 21.4 Net profit for the period as % p.a. of average shareholders' equity 13.9 14.7 15.8 15.9 17.6 19.7 16.4 16.8 15.1 17.5 Cost/income ratio for the period, % 58.6 53.1 57.4 53.4 50.8 48.1 56.2 53.4 55.6 52.0 Solvency ratio, incl. net profit for the period, % 9.3 9.3 9.7 10.1 11.4 9.7 9.8 10.2 9.3 11.4 Core (tier 1) capital ratio, excl. hybrid core capital, % 5.6 5.7 5.8 5.6 7.6 6.5 6.5 6.4 5.6 7.6 Core (tier 1) capital ratio, % 6.4 6.6 6.7 6.6 8.6 7.1 7.1 7.3 6.4 8.6 Risk-weighted items, end of period (DKr bn) 1,313 1,260 1,194 1,137 1,119 1,053 1,019 972 1,313 1,119 Share price end of period, DKr 199.8 212.3 226.0 259.5 250.0 230.7 221.5 229.0 199.8 250.0 Book value per share end of period, DKr 152.7 148.3 142.5 136.7 139.1 123.1 117.5 112.5 152.7 139.1 Full-time-equivalent staff, end of period* 23,632 23,670 23,535 23,650 23,546 23,588 23,311 23,289 23,632 23,546 Price/earnings, end of period 38.4 40.0 41.1 46.3 41.7 39.1 47.1 45.8 9.2 11.6 Dividend per share, DKr 8.50 - - - 7.75 - - - 8.5 7.75 Dividend yield, % 4.3 - - - 3.1 - - - 4.3 3.1 Pay-out ratio, % 40 - - - 40 - - - 40 40 Shares outstanding, end of period (m) 684 683 684 685 684 624 625 625 684 684 Issued shares, end of period (m) 699 699 699 699 699 638 638 638 699 699 Share price/book value per share end of period 1.3 1.4 1.6 1.9 1.8 1.9 1.9 2.0 1.3 1.8 Market capital, end of period, DKr m 136,629 144,967 154,584 177,758 171,027 143,976 138,438 143,100 136,629 171,027 For 2006, the key ratios are calculated in accordance with the Group's organisation and capital structure prior to the acquisition of the Sampo Bank group. * The pro forma figures include the Sampo Bank group as of February 2006. 21
Cost/income ratio, % Earnings per share, DKr 65.0 52.0 50.4 52.7 52.4 52.0 55.6 30.0 24.0 20.2 21.5 21.7 39.0 26.0 18.0 12.0 13.3 14.4 13.0 6.0 0.0 2003 2004 2005 2006 2007 0.0 2003 2004 2005 2006 2007 Return on equity (after tax) p.a., % Total assets, Dkr bn 20.0 16.0 12.0 15.2 13.9 18.4 17.5 15.1 3,750 3,000 2,250 1,826 2,052 2,432 2,938 3,350 8.0 1,500 4.0 750 0.0 2003 2004 2005 2006 2007 0 2003 2004 2005 2006 2007 * As of 2004 the figures are presented in accordance with IFRS. *The pro forma figures include the Sampo Bank group as of February 2006. 22
Business segments and key statistics 23
3.1. Financial performance, Banking Activities Banking Activities encompasses all banking activities in Danske Bank Group.. Full year Full year Banking Activities (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Net interest income 5,731 5,637 5,411 4,943 5,418 5,127 4,874 4,324 21,722 19,743 Hereof amortisation of loans and deposits* 46 46 46 31 - - - - 1,210 - Net fee income 1,961 1,934 1,984 1,928 1,980 1,812 1,980 2,003 7,807 7,775 Net trading income 327 358 303 291 290 315 307 289 1,279 1,201 Other income 701 508 578 574 626 497 494 466 2,361 2,083 Total income 8,720 8,437 8,276 7,736 8,314 7,751 7,655 7,082 33,169 30,802 Amortisation of intangible assets 251 308 276 266 144 143 137 137 1,101 561 Integration expenses 285 261 380 85 80 53 262 209 1,011 604 Staff cost ex bonuses 1,741 1,663 1,768 1,671 1,567 1,461 1,614 1,537 6,843 6,179 Bonuses 93 85 89 43 48 61 51 46 310 206 Other costs 2,795 2,469 2,842 2,515 2,188 1,991 1,993 1,987 10,621 8,159 Operating expenses BA Finland and BA Baltic - - - - 886 678 744 500-2,808 Operating expenses 5,165 4,786 5,355 4,580 4,913 4,387 4,801 4,416 19,886 18,517 Profit before credit loss expenses 3,555 3,651 2,921 3,156 3,401 3,364 2,854 2,666 13,283 12,285 Credit loss expenses 439 238 175-168 117 119-273 -109 684-146 Profit before tax 3,116 3,413 2,746 3,324 3,284 3,245 3,127 2,775 12,599 12,431 Loans and advances, end of period 1,009,093 972,636 937,924 885,225 865,334 827,379 797,823 738,903 1,009,093 865,334 Deposits, end of period 607,013 602,479 597,121 558,517 555,788 528,367 525,842 491,931 607,013 555,788 Risk-weighted items (avg.) 885,525 853,138 820,194 800,924 761,376 741,072 709,142 674,628 840,213 721,845 Allocated capital (avg.) 48,704 46,923 45,111 44,051 49,489 48,170 46,094 43,851 46,212 46,920 Profit before credit loss expenses as % p.a. of allocated capital 29.2 31.1 25.9 28.7 27.5 27.9 24.8 24.3 28.7 26.2 Pre-tax profit as % p.a. of allocated capital (ROE) 25.6 29.1 24.3 30.2 26.5 26.9 27.1 25.3 27.3 26.5 Cost/income ratio 59.2 56.7 64.7 59.2 59.1 56.6 62.7 62.4 60.0 60.1 Cost/income ratio, excluding total integration expenses, % 53.1 50.0 56.8 54.7 56.4 54.1 57.5 57.5 53.6 56.3 No. of full-time employees (end of period) 13,736 13,673 13,623 13,735 14,707 14,694 14,472 14,483 13,736 14,707 * The fair value of loans, advances and deposits in the opening balance sheet increased by DKr439m compared with the carrying amount of these items recognised before the acquisition. The effect of the value adjustment on interest income generated by Banking Activities Finland is a decrease of DKr169m in 2007 and DKr67m in each of the following four years. The pro forma ratios and key figures include the Sampo Bank group as of February 2006. 24
3.1.1. Financial performance, Denmark Banking Activities Denmark encompasses the banking activities of Danske Bank in Denmark. Danske Bank caters to all types of retail and corporate customers. Danske Banks finance centres serve large corporate and private banking customers. Banking Activities Denmark has nine regions with 399 branches, six agricultural centres, nine finance centres and 6,019 employees. Full year Full year Banking Activities Denmark (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Net interest income 2,695 2,698 2,612 2,552 2,693 2,555 2,437 2,283 10,557 9,968 Net fee income 1,103 1,118 1,145 1,208 1,149 1,074 1,230 1,360 4,574 4,813 Net trading income 173 183 173 174 154 158 173 190 703 675 Other income 23 14 17 10 7 4 1 2 64 14 Total income 3,994 4,013 3,947 3,944 4,003 3,791 3,841 3,835 15,898 15,470 Integration expenses 56 80 55 13 - - - - 204 - Staff cost ex bonuses 811 772 852 843 834 776 877 850 3,278 3,337 Bonuses 20 27 31 25 20 33 23 21 103 97 Other costs 1,218 1,066 1,217 1,096 1,200 1,069 1,062 1,104 4,597 4,435 Operating expenses 2,105 1,945 2,155 1,977 2,054 1,878 1,962 1,975 8,182 7,869 Profit before credit loss expenses 1,889 2,068 1,792 1,967 1,949 1,913 1,879 1,860 7,716 7,601 Credit loss expenses 29-55 155-305 84 59-127 -179-176 -163 Profit before tax 1,860 2,123 1,637 2,272 1,865 1,854 2,006 2,039 7,892 7,764 Loans and advances, end of period 357,497 340,787 337,793 322,058 313,943 296,715 290,754 273,794 357,497 313,943 Deposits, end of period 299,190 300,031 302,959 287,799 275,117 265,352 267,304 258,864 299,190 275,117 Risk-weighted items (avg.) 330,470 325,122 316,367 310,951 295,560 292,166 281,140 267,119 320,793 284,097 Allocated capital (avg.) 18,176 17,882 17,400 17,102 19,211 18,991 18,274 17,363 17,644 18,466 Profit before credit loss expenses as % p.a. of allocated capital 41.6 46.3 41.2 46.0 40.6 40.3 41.1 42.9 43.7 41.2 Pre-tax profit as % p.a. of allocated capital (ROE) 40.9 47.5 37.6 53.1 38.8 39.1 43.9 47.0 44.7 42.0 Cost/income ratio 52.7 48.5 54.6 50.1 51.3 49.5 51.1 51.5 51.5 50.9 Cost/income ratio, excluding integration expenses, % 51.3 46.5 53.2 49.8 51.3 49.5 51.1 51.5 50.2 50.9 Lending spread (1) (from Tom/next interest rate) (%)* 1.82 1.83 1.82 1.91 2.03 2.10 2.16 2.24 1.84 2.13 Deposit spread (2) (from Tom/next interest rate) (%) 0.76 0.79 0.84 0.81 0.91 0.88 0.80 0.75 0.81 0.84 Margin (1+2) (%) 2.58 2.62 2.66 2.72 2.94 2.98 2.96 2.99 2.65 2.97 Market share, lending (%) (end of period) (retail)** 34.3 34.5 35.3 35.8 36.0 36.4 36.7 37.0 34.3 36.0 Market share, lending (%) (end of period) (corporate)** 22.9 23.1 23.5 23.3 24.3 25.4 25.4 26.4 22.9 24.3 Market share, lending (%) (end of period) (total)** 26.5 26.8 27.3 27.3 28.1 29.0 29.0 29.7 26.5 28.1 Market share, deposits (%) (end of period) (retail)** 35.3 35.3 35.8 35.8 35.6 35.7 35.7 36.0 35.3 35.6 Market share, deposits (%) (end of period) (corporate)** 23.9 25.4 26.5 26.9 28.5 29.1 27.5 31.0 23.9 28.5 Market share, deposits (%) (end of period) (total)** 29.7 30.4 31.4 31.4 32.2 32.6 31.9 33.6 29.7 32.2 No. of full-time employees (end of period) 6,019 5,968 5,934 6,025 6,168 6,285 6,273 6,258 6,019 6,168 No. of branches (end of period) 405 429 429 461 458 462 463 465 405 458 No. of customers (m) (end of period)*** 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 Customer packages (000s) (end of period)***/**** 993 937 893 747 725 710 694 654 993 725 No. of ebanking customers (000s) (end of period)***** 1,051 1,017 993 976 946 920 893 849 1,051 946 * Part of the fall in the lending margin from the fourth quarter of 2006 to the first quarter of 2007 is attributable to organisational changes. ** Based on sector numbers published by the Central Bank of Denmark (Danmarks Nationalbank). *** Beginning in the first half of 2006, a new customer count measure has been used. The change of the measure resulted in a change in the figures for the first half of 2006. Comparative figures have not been restated. **** Customer packages are bundled products. Products in a customer package include: Visa card, American Express, MasterCard, competitive interest on loans and deposits and Internet banking. ***** Consists only of active ebanking customers. 25
3.1.2. Financial performance, Finland Banking Activities Finland encompasses the banking activities of Sampo Bank in Finland and Danske Banks Helsinki Branch. Sampo Bank, which is the third-largest bank in Finland, caters to retail customers, small and medium-sized businesses and institutional clients Sampo Bank has 121 branches in Finland and 2,117 employees. Full year Full year Banking Activities Finland (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Net interest income 832 825 822 534 848 816 785 499 3,013 2,948 Hereof amortisation of loans and deposits* 46 46 46 31 - - - - 169 - Net fee income 332 322 326 230 336 298 314 196 1,210 1,144 Net trading income 9 12-1 6-5 15 16 11 26 37 Other income 81 55 40 44 93 54 56 38 220 241 Total income 1,254 1,214 1,187 814 1,272 1,183 1,171 744 4,469 4,370 Amortisation of intangible assets 138 179 135 128 - - - - 580 - Integration expenses 161 112 84 12 - - - - 369 - Staff cost ex bonuses 239 201 245 158 - - - - 843 - Bonuses 26 28 25-10 - - - - 69 - Other costs 423 373 424 302 - - - - 1,522 - Operating expenses 987 893 913 590 776 598 658 447 3,383 2,479 Profit before credit loss expenses 267 321 274 224 496 585 513 297 1,086 1,891 Credit loss expenses 163 104 17-14 -53 49-67 -6 270-77 Profit before tax 104 217 257 238 549 536 580 303 816 1,968 Profit before tax in local currency 14 30 34 32 73 72 78 41 110 264 Loans and advances, end of period 164,179 159,738 154,574 149,097 146,803 144,378 142,046 137,399 164,179 146,803 Deposits, incl. pooled deposits, end of period 96,515 93,705 88,956 84,624 89,293 86,752 87,488 80,968 96,515 89,293 Risk-weighted items (avg.) 138,896 131,939 132,664 132,728 129,335 128,821 127,658 123,731 134,068 127,405 Allocated capital (avg.) 7,639 7,257 7,297 7,300 8,407 8,373 8,298 8,043 7,374 8,281 Profit before credit loss expenses as % p.a. of allocated capital 14.0 17.7 15.0 18.4 23.6 27.9 24.7 22.2 16.1 24.9 Pre-tax profit as % p.a. of allocated capital (ROE) 5.4 12.0 14.1 19.6 26.1 25.6 28.0 22.6 12.1 25.9 Cost/income ratio 78.7 73.6 76.9 72.5 61.0 50.5 56.2 60.1 75.7 56.7 Cost/income ratio, excluding total integration expenses, % 54.9 49.6 58.5 55.3 61.0 50.5 56.2 60.1 54.5 56.7 Market share, lending (%) (end of period)** 15.6 15.5 15.7 15.7 15.7 16.0 16.0 16.0 15.6 15.7 Market share, deposits (%) (end of period)** 12.6 13.3 12.7 13.3 13.7 13.5 13.8 13.5 12.6 13.7 No. of branches (end of period) 121 121 123 127 127 127 129 139 121 127 No. of customers (000s) (end of period) 1,180 1,171 1,171 1,169 1,170 1,167 1,164 1,161 1,180 1,170 No. of ebanking customers (000s) (end of period)*** 872 866 858 851 842 834 826 816 872 842 No. of full-time employees (end of period) 2,117 2,096 2,119 2,124 2,083 2,012 1,981 1,993 2,117 2,083 * The fair value of loans, advances and deposits in the opening balance sheet increased by DKr439m compared with the carrying amount of these items recognised before the acquisition. The effect of the value adjustment on interest income generated by Banking Activities Finland is a decrease of DKr169m in 2007 and DKr67m in each of the following four years. ** Market shares Q3 2007 are calculated as of end of August 2007. *** Consists only of active ebanking customers. The pro forma ratios and key figures include the Sampo Bank group as of February 2006. 26
3.1.3. Financial performance, Sweden Banking Activities Sweden encompasses the banking activities of Östgöta Enskilda Bank and Provinsbankerne in Sweden, which serve all types of retail and corporate customers. Real-estate agency business is carried out primarily through the 75 offices of Skandia Mäklarna. Banking Activities Sweden has four regions with 59 branches, four finance centres and 912 employees. Full year Full year Banking Activities Sweden (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Net interest income 583 521 510 499 505 473 434 400 2,113 1,812 Net fee income 176 144 175 161 176 137 158 143 656 614 Net trading income 26 26 24 21 20 20 15 16 97 71 Other income 19 13 15 11 15 12 13 7 58 47 Total income 804 704 724 692 716 642 620 566 2,924 2,544 Staff cost ex bonuses 168 153 162 160 181 180 174 174 643 709 Bonuses 5 5 5 4 2 3 6 2 19 13 Other costs 215 182 235 201 211 168 194 165 833 738 Operating expenses 388 340 402 365 394 351 374 341 1,495 1,460 Profit before credit loss expenses 416 364 322 327 322 291 246 225 1,429 1,084 Credit loss expenses 7-29 21 70 31 7-50 83 69 71 Profit before tax 409 393 301 257 291 284 296 142 1,360 1,013 Profit before tax in local currency 511 488 374 315 356 353 366 178 1,688 1,253 Loans and advances, end of period 161,562 154,603 146,832 138,199 138,454 133,499 128,151 116,709 161,562 138,454 Deposits, end of period 57,368 53,018 51,178 47,345 50,062 45,917 44,537 39,472 57,368 50,062 Risk-weighted items (avg.) 134,482 126,190 118,166 118,381 114,843 110,053 102,850 96,425 124,354 106,104 Allocated capital (avg.) 7,396 6,940 6,499 6,511 7,465 7,153 6,685 6,268 6,839 6,897 Profit before credit loss expenses as % p.a. of allocated capital 22.5 21.0 19.8 20.1 17.3 16.3 14.7 14.4 20.9 15.7 Pre-tax profit as % p.a. of allocated capital (ROE) 22.1 22.6 18.5 15.8 15.6 15.9 17.7 9.1 19.9 14.7 Cost/income ratio 48.3 48.3 55.5 52.7 55.0 54.7 60.3 60.2 51.1 57.4 Lending spread (1) (from Tom/next interest rate) (%) 0.82 0.79 0.86 0.88 0.90 0.94 0.92 0.94 0.84 0.93 Deposit spread (2) (from Tom/next interest rate) (%) 0.91 0.88 0.91 0.94 0.90 0.85 0.78 0.80 0.91 0.84 Margin (1+2) (%) 1.73 1.67 1.77 1.82 1.80 1.79 1.70 1.74 1.75 1.77 Market share (lending) (%) (end of period)* 5.8 5.7 5.7 5.6 5.6 5.7 5.5 5.3 5.8 5.6 Market share (retail deposits) (%) (end of period) 4.5 4.5 4.4 4.3 4.3 4.4 4.4 4.1 4.5 4.3 No. of branches (end of period) 59 59 59 59 59 57 57 57 59 59 No. of customers (000s) (end of period)** 218 215 211 198 194 191 188 195 218 194 No. of ebanking customers (000s) (end of period)*** 126 122 117 111 106 102 99 74 126 106 No. of full-time employees (end of period) 912 918 920 921 1,135 1,122 1,114 1,142 912 1,135 * Total market incl. property finance. ** Beginning in the first half of 2006, a new customer count measure has been used. The change of the measure resulted in a change in the figures from the first half of 2006. Comparative figures have not been restated. *** Consists only of active ebanking customers. 27
3.1.4. Financial performance, Norway Banking Activities Norway encompasses the banking activities of Fokus Bank in Norway. Fokus Bank serves all types of retail and corporate customers. Banking Activities Norway has five regions with 55 branches, Banking Activities Norway encompasses the banking activities of Fokus Bank in Norway, which serves all types of retail and corporate customers. Retail-estate agency business is carried out through the 40 offices of Fokus Krogsveen Nylander. Banking Activities Norway has five regions with 55 branches, five finance centres and 1,062 employees. Full year Full year Banking Activities Norway (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Net interest income 529 493 442 423 418 410 385 354 1,887 1,567 Net fee income 115 122 110 114 118 90 107 101 461 416 Net trading income 36 40 37 34 28 33 23 27 147 111 Other income 58 78 95 77 96 88 74 54 308 312 Total income 738 733 684 648 660 621 589 536 2,803 2,406 Staff cost ex bonuses 178 203 179 198 235 194 181 174 758 784 Bonuses 11 3 5 6 8 11 4 3 25 26 Other costs 201 207 224 203 184 190 180 188 835 742 Operating expenses 390 413 408 407 427 395 365 365 1,618 1,552 Profit before credit loss expenses 348 320 276 241 233 226 224 171 1,185 854 Credit loss expenses 55 8-37 27 43-12 -69 7 53-31 Profit before tax 293 312 313 214 190 238 293 164 1,132 885 Profit before tax in local currency 312 330 339 233 210 259 308 177 1,214 954 Loans and advances, end of period 136,346 130,960 118,228 109,731 105,319 100,610 96,718 90,329 136,346 105,319 Deposits, end of period 57,624 57,737 57,482 48,506 46,667 40,385 44,447 40,344 57,624 46,667 Risk-weighted items (avg.) 111,151 99,831 93,077 88,106 83,573 80,246 73,450 69,579 98,109 76,760 Allocated capital (avg.) 6,113 5,491 5,119 4,846 5,432 5,216 4,774 4,523 5,396 4,989 Profit before credit loss expenses as % p.a. of allocated capital 22.8 23.3 21.6 19.9 17.2 17.3 18.8 15.1 22.0 17.1 Pre-tax profit as % p.a. of allocated capital (ROE) 19.2 22.7 24.5 17.7 14.0 18.3 24.5 14.5 21.0 17.7 Cost/income ratio 52.8 56.3 59.6 62.8 64.7 63.6 62.0 68.1 57.7 64.5 Lending spread (1) (from Tom/next interest rate) (%) 0.75 0.78 0.80 0.91 0.92 0.97 1.01 1.02 0.81 0.98 Deposit spread (2) (from Tom/next interest rate) (%) 0.89 0.82 0.83 0.75 0.77 0.78 0.73 0.75 0.83 0.76 Margin (1+2) (%) 1.64 1.60 1.63 1.66 1.69 1.75 1.74 1.77 1.64 1.74 Market share (lending) (%) (end of period) 6.0 5.7 5.5 5.5 5.5 5.4 5.2 5.2 6.0 5.5 Market share (deposits) (%) (end of period) 5.0 5.0 4.8 4.9 4.6 4.4 4.1 4.3 5.0 4.6 No. of branches (end of period) 55 55 55 56 61 63 70 70 55 61 No. of customers (000s) (end of period)* 234 230 229 227 237 236 234 260 234 237 No. of ebanking customers (000s) (end of period)** 110 108 106 104 106 103 99 75 110 106 No. of full-time employees (end of period) 1,062 1,069 1,069 1,071 1,323 1,293 1,152 1,148 1,062 1,323 * Beginning in the first half of 2006, a new customer count measure has been used. The change of the measure resulted in a change in the figures for the first half of 2006. Comparative figures have not been restated. ** Consists only of active ebanking customers. 28
3.1.5. Financial performance, Northern Ireland Banking Activities Northern Ireland encompasses the banking activities of Northern Bank, which serves both retail and corporate customers. Banking Activities Northern Ireland has four regions with 94 branches and 1,295 employees. Full year Full year Banking Activities Northern Ireland (DKr m) Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 2007 2006 Net interest income 449 483 452 447 451 435 415 401 1,831 1,702 Net fee income 120 126 117 128 122 129 101 133 491 485 Net trading income 27 40 18 24 22 24 26 15 109 87 Other income 4 3 4 4 7 5 5 2 15 19 Total income 600 652 591 603 602 593 547 551 2,446 2,293 Amortisation of intangible assets 87 104 115 113 118 118 112 111 419 459 Integration expenses 31 26 191 30 72 49 194 130 278 445 Staff cost ex bonuses 132 138 136 136 167 167 217 193 542 744 Bonuses 8 7 8 7 8 9 11 11 30 39 Other costs 185 197 229 228 166 193 162 145 839 666 Operating expenses 443 472 679 514 531 536 696 590 2,108 2,353 Profit before credit loss expenses 157 180-88 89 71 57-149 -39 338-60 Credit loss expenses 10 2-11 30 30-2 11 5 31 44 Profit before tax 147 178-77 59 41 59-160 -44 307-104 Profit before tax in local currency 12 16-7 5 4 6-15 -4 26-9 Loans and advances, end of period 58,803 60,845 60,677 56,070 58,442 57,372 52,851 41,654 58,803 58,442 Deposits, end of period 56,303 59,845 60,601 56,856 60,969 59,379 54,351 41,708 56,303 60,969 Risk-weighted items (avg.) 45,921 47,787 44,225 42,371 38,569 37,138 38,949 39,263 45,093 38,474 Allocated capital (avg.) 2,526 2,628 2,432 2,330 2,507 2,414 2,532 2,552 2,480 2,501 Profit before credit loss expenses as % p.a. of allocated capital 24.9 27.4-14.5 15.3 11.3 9.4-23.5-6.1 13.6-2.4 Pre-tax profit as % p.a. of allocated capital (ROE) 23.3 27.1-12.7 10.1 6.5 9.8-25.3-6.9 12.4-4.2 Cost/income ratio 73.8 72.4 114.9 85.2 88.2 90.4 127.2 107.1 86.2 102.6 Cost/income ratio, excluding total integration expenses, % 54.2 52.5 63.1 61.5 56.6 62.2 71.3 63.3 57.7 63.2 Lending spread (1) (from Tom/next interest rate) (%) 1.18 1.18 1.20 1.23 - - - - 1.20 - Deposit spread (2) (from Tom/next interest rate) (%) 2.19 2.41 2.29 2.33 - - - - 2.30 - Margin (1+2) (%) 3.37 3.59 3.49 3.56 - - - - 3.50 - Market share (retail) (%) (end of period)* 19.0 19.0 20.0 20.0 20.0 20.2 19.7 19.8 19.0 20.0 Market share (corporate) (%) (end of period)* 33.0 31.0 31.0 31.0 31.0 31.0 32.4 32.4 33.0 31.0 No. of branches (end of period) 94 94 95 95 95 95 95 95 94 95 No. of customers (000s) (end of period) 440 436 432 431 429 427 425 421 440 429 No. of ebanking customers (000s) (end of period)** 100 92 83 73 58 47 37 27 100 58 No. of full-time employees (end of period) 1,295 1,279 1,313 1,378 1,862 1,845 1,866 1,905 1,295 1,862 * The market shares of Northern Bank are not calculated in the same way as the market shares of the other retail banks because there is no central bank for Northern Ireland alone. ** Consists only of active ebanking customers. 29