Fact Book Q Supplementary Information for Investors and Analysts. Unaudited. Updated: 30 September 2012

Transcription

1 Fact Book Q Supplementary Information for Investors and Analysts Unaudited 1 Updated: 30 September 2012

2 Table of contents 1. Group facts 1.1 Financial goals Dividends and share buybacks Share data Ratings Accounting principles and presentation 8 2. Financial statistics 2.1 Income statement - Danske Bank Group Breakdown of income Breakdown of expenses Balance sheet - Danske Bank Group Breakdown of balance sheet Ratios and key figures Business segments and key statistics 3.1 Breakdown of key income and expense items Banking Activities Retail Banking Denmark Breakdown of loans at Realkredit Danmark Retail Banking Finland Retail Banking Sweden Retail Banking Norway Banking Activities Northern Ireland Banking Activities Ireland Banking Activities Baltics Other Banking Activities Corporate & Institutional Banking (CIB) Non-core Ireland Market shares, countries Online banking Danske Markets and Treasury Danske Capital Danica Pension Other Activities Macroeconomics 4.1 Tables and charts 51 2

3 Fact Book Q 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 For further information, please contact: Henrik Ramlau-Hansen, Direct: Chief Financial Officer Mobile: hram@danskebank.com Martin Gottlob, Direct: Head of Investor Relations Mobile: mgot@danskebank.com Financial calendar Date Event 7 February 2013 Annual Report March 2013 Annual general meeting 2 May 2013 Interim Report - First Quarter August 2013 Interim Report First Half October 2013 Interim Report First Nine Months February 2014 Annual Report 2013 Elisabeth Toftmann Klintholm, Direct: Senior IR Officer Mobile: elas@danskebank.dk Heidi Sørensen, Direct: IR assistant hsr@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 instruments. Whilst reasonable care has been taken to ensure that the content of this publication is 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 Group s 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 2012 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

4 Group facts 4

5 1.1 Financial goals The Group bases its total capital need on an assessment of the capital requirements under the current capital adequacy and transitional rules, a critical assessment of the effects of future regulation, including CRD IV, and criteria such as; rating target; expected growth and earnings; dividend policy; and stress test scenarios. See Risk Management 2011, section 3 on the new capital regulations and their effects on the Group. At 30 September 2012, the total capital ratio stood at 19.4, with 17.0 percentage points deriving from the Group s total tier 1 capital. 1.2 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 2001 can be seen in the table below. For as long as the Danish state holds hybrid capital in Danske Bank, the Bank may distribute dividends if such dividends can be paid in full out of the net profit. PROFIT, DIVIDENDS AND SHARE BUYBACKS (DKK millions) Dividends Share buybacks Total Net profit for the year Total of the net profit for the year (%)

6 1.3 Share data The Danske Bank Group is the largest financial services organisation in Denmark. The average daily trading volume of Danske Bank shares during the first nine months of 2012 was DKK million. With a total trading volume of DKK 22,3 billion, the Danske Bank share was the sixth most actively traded share on the Copenhagen Stock Exchange (part of the OMX Exchange group) during the first nine months of At the beginning of 2012, there were 931,739,034 shares at a nominal value of DKK 10 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 Bank s register of shareholders. In the period from 14 March to 6 April 2011, Danske Bank increased its share capital by some DKK 20 billion through a share offering with pre-emptive subscription rights for existing shareholders. The offering was fully subscribed for 232,934,758 new shares. Afterwards, the share capital totalled DKK 9,317,390,340 and consisted of 931,739,034 shares with a nominal value of DKK 10 each. Share-related key figures have been adjusted retrospectively in accordance with IAS 33, Earnings per share. The adjustment factor was calculated as NUMBER OF SHARES Issued shares at 1 January ,739,034 Issued shares at 30 September ,739,034 The Group's trading portfolio of own shares 3,328,650 The Group's investments in own shares on customers' behalf 3,258,409 Shares outstanding at 30 September ,151,975 Calculation of average number of outstanding shares 1 Q312 Q212 Q112 Q411 Q311 Q211 Q111 Issued shares (beginning of period) 931,739, ,739, ,739, ,739, ,739, ,804, ,804,276 Adjustment for rights issue ,360,151 56,360,151 Issued shares (beginning of period) (adjusted for rights issue) 931,739, ,739, ,739, ,739, ,739, ,164, ,164,427 Average number of shares related to the rights issue ,932,325 0 Average number of issued shares 931,739, ,739, ,739, ,739, ,739, ,096, ,164,427 Average holding of own shares 6,486,614 5,565,366 4,786,882 5,283,756 6,072,160 7,659,307 5,448,066 Average number of outstanding shares 925,252, ,173, ,952, ,455, ,666, ,437, ,716,361 Average dilutive shares (related to share-based payments) Average number of outstanding shares (diluted) 925,252, ,173, ,952, ,455, ,666, ,437, ,716,361 1 The table shows how the denominator in the adjusted share-related key figures has been calculated 6

7 1.4 Ratings Danske Bank rating overview The credit rating agencies each use their own rating scales, on which the highest possible ratings are AAA and Aaa (see the table below). Ratings in categories AAA/Aaa through BBB/Baa are considered "investment grade", indicating only a marginal risk that the issuer will default. The Danske Bank Group is currently rated by the three large international credit rating agencies: Moody's, Standard & Poor's (S&P) and Fitch Ratings. In the first nine month of 2012, Fitch Ratings maintained Danske Bank s A/F1(negative outlook), while S&P and Moody s lowered Danske Banks s ratings in May S&P lowered Danske Bank s long- and short-term ratings one notch from A/A-1 to A-/A-2. Both ratings are now on stable outlook. A general downgrade of many European banks by Moody s in the first half of 2012 affected a number of Danish banks including Danske Bank. Moody s lowered Danske Bank s long-term rating two notches from A2 to Baa1 and its short-term rating one notch from P-1 to P-2. These ratings are also now on stable outlook. Moody s ratings in particular are affected by the fact that Denmark has not yet designated systemically important financial institutions [SIFIs]. Mortgage bonds and mortgage-covered bonds issued by Realkredit Danmark are rated AAA by S&P (stable outlook). In 2012, Realkredit Danmark began collaboration with Fitch Ratings, and in June, Realkredit Danmark s bonds were rated AAA by Fitch Ratings. 7

8 1.5 Accounting principles and presentation Accounting principles The Group has not changed its significant accounting policies from those followed in Annual Report A complete description of the Group s critical and significant accounting policies can be found under Note 1 and Note 45 in Annual Report Accounting policies and estimates Management s estimates and assumptions of future events that will significantly affect the carrying amounts of assets and liabilities underlie the preparation of the consolidated financial statements. The estimates and assumptions that are deemed critical to the consolidated financial statements are the fair value measurement of financial instruments the measurement of loans and advances the measurement of goodwill the measurement of liabilities under insurance contracts the measurement of the net obligation for defined benefit pension plans the recognition of deferred tax assets The estimates and assumptions are based on premises that management finds reasonable but which are inherently uncertain and unpredictable. The premises may be incomplete, unexpected future events or situations may occur, and other parties may arrive at other estimated values. For further description of the Group s significant risks and external conditions that may affect the Group, see Annual Report 2011 and Risk Management

9 1.5 Accounting principles and presentation (continued) Standards and interpretations not yet in force The International Accounting Standards Board (IASB) has issued a number of amendments to the International Financial Reporting Standards (IFRSs) that have not yet come into force. Similarly, the International Financial Reporting Interpretations Committee (IFRIC) has issued a new interpretation that has not yet come into force. The sections below explain the changes that are likely to affect the Group s financial reporting. In October 2010, the IASB reissued IFRS 9, Financial Instruments. The aim of the reissuance project is, once the amendments to IFRS 9 are completed, to let the standard replace IAS 39 in its entirety. IFRS 9 now provides principles for classification and derecognition of financial instruments. Principles for impairment and hedge accounting are expected to follow in 2012 or The IASB is also considering changes to the principles for classification. IFRS 9 incorporates the existing derecognition principles of IAS 39. Meaningful classification of financial instruments is not possible without information about the future parts of IFRS 9 to clarify the overall accounting effects of the standard. The IASB ended its project on consolidation in May 2011 by issuing a number of new International Financial Reporting Standards (IFRS 10, IFRS 11 and IFRS 12) and revised standards (IAS 27 and IAS 28). With these standards, the IASB has established a uniform definition of control to be used for determining whether an entity should be consolidated and enhanced disclosure requirements for consolidated and non-consolidated entities, joint arrangements and associates. The standards, which have not yet been adopted by the EU, must be implemented in 2013, at the latest. The Group does not expect the new requirements to significantly change its consolidation of businesses. In May 2011, the IASB issued IFRS 13, Fair Value Measurement. The standard introduces a new definition of fair value and provides guidance on how to measure fair value as well as disclosure requirements for fair value. IFRS 13 applies when another standard requires fair value to be used or disclosed. The standard, which has not yet been adopted by the EU, must be implemented in 2013, at the latest. The Group does not expect IFRS 13 to significantly affect its financial results. In June 2011, the IASB reissued IAS 19, Employee Benefits. The amended standard eliminates the option of deferring the recognition of actuarial gains and losses on defined benefit pension plans, known as the corridor method. The present value of pension obligations and the fair value of plan assets must be recognised in the balance sheet instead. The amended standard will be implemented on 1 January At 30 September 2012, the new requirements would have decreased shareholders equity by DKK 731 million (the amount deferred under the corridor method net of tax). The effect on net profit will be immaterial as actuarial gains and losses are recognised in Other comprehensive income. The other comprehensive income and shareholders equity items will become more volatile, though. The statement of capital will not be affected as it is already prepared without the use of the corridor method. In December 2011, the IASB clarified the IAS 32 requirements for offsetting financial instruments. The clarification is not expected to increase the offsetting of financial instruments to any significant degree. The IASB also enhanced its IFRS 7 disclosure requirements to include both gross and net amounts when offsetting financial instruments and rights to additional set-off in the event of counterparty default. The changes, which have not yet been adopted by the EU, must be implemented in 2014 and 2013, respectively. 9

10 Financial statistics 10

11 2.1 Income statement Danske Bank Group Year to date Full year (DKK millions) Q312 Q212 Q112 Q411 Q311 Q211 Q Net interest income 6,198 6,218 6,172 6,182 6,016 5,785 5,554 18,588 23,537 Financing fees ,084 1,377 Investment fees ,191 Service fees Fees generated by activities ,987 2,636 Financing fees Investment fees ,056 2,990 Service fees ,704 2,288 Fees generated by portfolios 1,457 1,386 1,299 1,499 1,374 1,412 1,377 4,142 5,662 Net fee income 2,116 2,026 1,987 2,218 1,938 2,049 2,093 6,129 8,298 Net trading income 1,785 2,462 3,222 1, ,445 2,975 7,469 7,325 Other income ,002 2,323 3,648 Net income from insurance business , Total other income 2,901 4,007 4,194 3, ,678 4,044 11,102 11,542 Total income 11,215 12,251 12,353 11,863 8,311 11,512 11,691 35,819 43,377 Staff costs 3,448 3,346 3,596 3,356 3,217 3,344 3,456 10,390 13,373 Severance pay Holiday payment IT expenses ,540 2,734 Other expenses 1,415 1,645 1,300 1,561 1,142 1,301 1,240 4,360 5,244 Staff and administration expenses, total 5,402 5,833 5,538 5,814 4,879 5,554 5,553 16,773 21,800 Depreciation, intangibles ,050 1,117 Depreciation, tangibles ,708 2,323 Other operating expenses Expenses 6,116 6,632 6,850 6,459 5,499 6,678 7,351 19,598 25,987 Hereof integration expenses Profit before loan impairment charges 5,099 5,619 5,503 5,404 2,812 4,834 4,340 16,221 17,390 Loan impairment charges 2,879 3,109 3,922 4,789 2,802 2,753 2,841 9,910 13,185 Profit before tax 2,220 2,510 1, ,081 1,499 6,311 4,205 Tax 903 1, ,708 2,482 Net profit 1,317 1, , ,603 1,723 Attributable to non-controlling interests Net profit after non-controlling interests 1,312 1, , ,599 1,712 1 In Denmark, the second quarter was affected by the holiday payment in week six and the third quarter was affected by holiday use. 11

12 2.1.1 Breakdown of income Distribution of net interest income 12

13 Interbank rates, 3-month (%) 10,0 8,0 6,0 4,0 2,0 0, Denmark Norway Sweden UK Eurozone Interest income margins Banking Activities LENDING MARGIN* (%) Q111 Q211 Q311 Q411 Q112 Q212 Q312 Central bank policy rates (%) 10,0 8,0 6,0 4,0 2,0 0, Denmark Norway Sweden UK Eurozone DEPOSIT MARGIN* (%) -0.2 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Retail Banking Denmark Retail Banking Finland Retail Banking Sweden Retail Banking Norway Banking Activities Northern Ireland Banking Activities Ireland Banking Activities Baltics (weighted average) Corporate & Institutional Banking Retail Banking Denmark Retail Banking Finland Retail Banking Sweden Retail Banking Norway Banking Activities Northern Ireland Banking Activities Ireland Banking Activities Baltics (weighted average) Corporate & Institutional Banking * The lending margins correspond to those reported for each Banking Activity unit in the tables in section 3.2. * The deposit margins correspond to those reported for each Banking Activity unit in the tables in section

14 Net interest income, Banking Activities (QoQ, YoY)* RETAIL BANKING DENMARK, including Realkredit Danmark Change over Change over (DKK millions) the past quarter the past year Net interest income (Q212) 3,189 (Q311) 3,179 Lending volume Lending margin Deposit volume Deposit margin Other interest Net interest income, Q ,117 3,117 RETAIL BANKING FINLAND Change over Change over (EUR millions) the past quarter the past year Net interest income (Q212) 72 (Q311) 72 Lending volume Lending margin Deposit volume Deposit margin Other interest Net interest income, Q Net interest income, excluding exchange rate effects, Q (DKK millions) Exchange rate effects (DKK millions) Net interest income, Q (DKK millions) RETAIL BANKING SWEDEN Change over Change over (SEK millions) the past quarter the past year Net interest income (Q212) 804 (Q311) 733 Lending volume Lending margin Deposit volume Deposit margin Other interest Net interest income, Q Net interest income, excluding exchange rate effects, Q (DKK millions) Exchange rate effects (DKK millions) Net interest income, Q (DKK millions) BANKING ACTIVITIES NORTHERN IRELAND Change over Change over (GBP millions) the past quarter the past year Net interest income (Q212) 33 (Q311) 36 Lending volume Lending margin Deposit volume - - Deposit margin Other interest Net interest income, Q Net interest income, excluding exchange rate effects, Q (DKK millions) Exchange rate effects (DKK millions) Net interest income, Q (DKK millions) BANKING ACTIVITIES IRELAND Change over Change over (EUR millions) the past quarter the past year Net interest income (Q212) 13 (Q311) - Lending volume Lending margin Deposit volume Deposit margin Other interest Net interest income, Q Net interest income, excluding exchange rate effects, Q (DKK millions) Exchange rate effects (DKK millions) Net interest income, Q (DKK millions) 93 - CORPORATE & INSTITUTIONAL BANKING Change over Change over (DKK millions) the past quarter the past year Net interest income (Q212) 533 (Q311) 531 Lending volume Lending margin Deposit volume Deposit margin Other interest Net interest income, Q RETAIL BANKING NORWAY Change over Change over (NOK millions) the past quarter the past year Net interest income (Q212) 509 (Q311) 406 Lending volume Lending margin Deposit volume Deposit margin Other interest Net interest income, Q Net interest income, excluding exchange rate effects, Q (DKK millions) Exchange rate effects (DKK millions) Net interest income, Q (DKK millions) *The effect of margin changes on net interest income is calculated by using internally determined interest rates. NON-CORE IRELAND Change over Change over (EUR millions) the past quarter the past year Net interest income (Q212) 12 (Q311) - Lending volume Lending margin Deposit volume Deposit margin Other interest Net interest income, Q Net interest income, excluding exchange rate effects, Q (DKK millions) Exchange rate effects (DKK millions) Net interest income, Q (DKK millions) 88-14

15 2.1.2 Breakdown of expenses Expenses Year to date Full year (DKK millions) Q312 Q212 Q112 Q411 Q311 Q211 Q Expenses 6,116 6,632 6,850 6,459 5,499 6,678 7,351 19,598 25,987 Amortisation, intangibles, total Integration expenses, total Expenses, net 6,006 6,523 6,733 6,326 5,328 6,506 7,179 19,262 25,339 IT expenses Year to date Full year (DKK millions) Q312 Q212 Q112 Q411 Q311 Q211 Q IT expenses (development and operations) ,028 1,194 1,048 2,636 4,262 IT expenses/total expenses (%) IT expenses/profit before tax (%) IT expenses include costs related to software, hardware, internal IT staff, external IT consultants, rent on premises, depreciation, infrastructure etc. but excludes phone and datatransmission. 15

16 Number of full-time employees by business unit Year to date Full year (End of period) Q312 Q212 Q112 Q411 Q311 Q211 Q Retail Banking Denmark 5,917 5,902 5,949 5,992 6,003 5,970 5,930 5,917 5,992 Retail Banking Finland 1,976 2,065 2,117 2,121 2,259 2,279 2,235 1,976 2,121 Retail Banking Sweden Retail Banking Norway Banking Activities Northern Ireland 1,226 1,270 1,289 1,337 1,200 1,222 1,231 1,226 1,337 Banking Activities Ireland Banking Activities Baltics ,004 1,027 1,039 1,038 1, ,027 Other Banking Activities Corporate & Institutional Banking Non-core Ireland Banking Activities total 13,063 13,201 13,351 13,470 13,538 13,524 13,423 13,063 13,470 Danske Markets and Treasury Danske Capital Danica Pension Shared Services Centre 4,496 4,681 4,516 4,564 4,745 4,700 4,698 4,496 4,564 Other Activities ,033 1,032 1,023 1,063 1, ,032 Group total 20,651 20,997 21,160 21,320 21,567 21,536 21,434 20,651 21,320 Exchange rates (cross currency: Danish kroner) (End of period) Q312 Q212 Q112 Q411 Q311 Q211 Q111 Euro (EUR) US dollar (USD) British pound sterling (GBP) Swedish krona (SEK) Norwegian krona (NOK) Polish zloty (PLN) Latvian lat (LVL) 1, , , , , , , Lithuanian litas (LTL) Source: Danmarks Nationalbank ( Updated September

17 2.2 Balance sheet Danske Bank Group Year to date Full year (DKK millions) Q312 Q212 Q112 Q411 Q311 Q211 Q Cash in hand and demand deposits with central banks 61,812 36,906 36,097 28,617 19,663 20,444 26,204 61,812 28,617 Due from credit institutions and central banks 141,603 72, ,085 74,041 81,036 59,893 58, ,603 74,041 Trading portfolio assets 924, , , , , , , , ,755 Investment securities 103, , , , , , , , ,264 Repo lending 305, , , , , , , , ,027 Loans and advances (ex repos) 1,699,847 1,704,019 1,684,125 1,698,025 1,693,518 1,666,608 1,661,983 1,699,847 1,698,025 Assets under pooled schemes and unit-linked investment contracts 69,630 65,377 66,324 61,888 58,762 64,956 63,738 69,630 61,888 Assets under insurance contracts 237, , , , , , , , ,668 Holdings in associated undertakings 1,131 1,086 1, ,069 1,028 1,051 1, Intangible assets 21,572 21,603 21,670 22,233 22,357 22,456 22,642 21,572 22,233 Investment property 4,237 4,256 4,612 4,624 4,622 4,797 4,894 4,237 4,624 Tangible assets 6,525 6,756 7,012 7,267 7,064 7,313 7,656 6,525 7,267 Current tax assets ,379 1,207 1, Deferred tax assets 1,793 1,891 1,844 1,791 1,774 1,865 1,686 1,793 1,791 Others 18,979 18,078 17,406 18,634 24,703 17,827 24,976 18,979 18,634 Other assets 21,063 20,324 19,645 21,005 27,856 20,899 27,941 21,063 21,005 Total assets 3,599,070 3,480,722 3,500,474 3,424,403 3,381,024 3,127,061 3,125,881 3,599,070 3,424,403 Due to credit institutions and central banks 250, , , , , , , , ,592 Trading portfolio liabilities 670, , , , , , , , ,913 Repo deposits 384, , , , , , , , ,515 Due to customers (ex repos) 742, , , , , , , , ,275 Bonds issued by Realkredit Danmark 618, , , , , , , , ,699 Deposits under pooled schemes and unit-linked investment contracts 77,360 73,368 73,874 69,211 65,181 69,852 68,844 77,360 69,211 Liabilities under insurance contracts 262, , , , , , , , ,966 Other issued bonds 344, , , , , , , , ,920 Provisions ,033 1, Current tax liabilities Deferred tax liabilities 7,049 6,793 6,540 6,278 6,587 6,587 5,962 7,049 6,278 Others 41,776 39,359 36,048 40,661 39,055 35,514 43,876 41,776 40,661 Other liabilities 49,729 46,880 43,748 48,129 46,749 43,558 52,094 49,729 48,129 Subordinated debt 68,652 62,584 64,033 67,328 70,059 72,288 75,626 68,652 67,328 Total liabilities 3,469,357 3,352,604 3,373,650 3,298,548 3,255,354 3,001,093 3,020,388 3,469,357 3,298,548 Share capital 9,317 9,317 9,317 9,317 9,317 9,317 6,988 9,317 9,317 Foreign currency translation Reserve for available-for-sale financial assets -1,701-2,036-1,772-2,253-1,766-1,572-1,303-1,701-2,253 Proprosed dividend Retained earnings 122, , , , , ,404 99, , ,917 Non-controlling interests Shareholders' equity 129, , , , , , , , ,855 Total liabilities and equity 3,599,070 3,480,722 3,500,474 3,424,403 3,381,024 3,127,061 3,125,881 3,599,070 3,424,403 Risk-weighted assets, Group (avg.) 862, , , , , , , , ,689 Risk-weighted assets, Group, end of period 850, , , , , , , , ,979 17

18 2.2.1 Breakdown of balance sheet Loan portfolio by business unit Share of Share of Volume (DKK billions) Segment Q312 Q212 Q112 Q411 Q311 Q211 Q111 unit (%) total (%) Retail Banking Denmark Personal Hereof bank mortgage loans secured on real property Hereof mortgage loans in Realkredit Danmark Business Hereof loans in Realkredit Danmark Total Retail Banking Finland Personal Business Total Retail Banking Sweden Personal Business Total Retail Banking Norway Personal Business Total Banking Activities Northern Ireland Personal Business Hereof public sector loans Total Banking Activities Ireland Personal Business Total Banking Activities Baltics Personal Business Total Corporate & Institutional Banking Personal Corporate Total Non-core Ireland Personal Business Total Danske Markets and Treasury Personal Business Total Other business segments Personal Business Total Allowance account Personal Business Total Bank lending, total (ex repos) Personal Business Total 1, , , , , , , Repos Personal Business Total Lending, total Personal Business 1, , , , Total lending 1, , , , , , ,

19 Credit exposure from lending activities, by sector % of total % of total (DKK millions) Q312 Q212 Q112 Q411 Q311 Q211 Q111 Q312 Q411 Central and local governments 204, , , , , , , Subsidised housing companies etc. 126, , , , , , , Banks 143, , , , , , , Diversified financials 228, , , , , , , Other financials 65,362 75,477 69,489 56,915 51,955 58,597 71, Energy and utilities 43,248 46,304 42,479 40,698 39,696 35,907 36, Consumer discretionary 83,891 83,761 84,062 83,208 86,410 84,925 86, Consumer staples 123, , , , , , , Commercial property 258, , , , , , , Construction, engineering and building products 36,953 36,452 36,104 36,572 39,773 39,862 36, Transportation and shipping 66,476 67,935 67,261 71,824 68,734 67,603 70, Other industrials 70,914 71,271 72,642 77,995 77,954 80,135 79, IT 14,999 14,449 14,185 15,615 15,137 15,070 14, Materials 43,117 43,464 43,272 42,483 43,139 44,947 46, Health care 26,427 25,234 29,379 27,562 25,642 25,924 23, Telecommunication services 6,521 6,227 4,582 4,494 4,230 4,242 4, Personal customers 895, , , , , , , Total 2,437,905 2,382,003 2,405,163 2,298,711 2,246,337 2,272,150 2,284,

20 Credit exposure from lending activities, by business unit (Q312) Retail Banking Banking Activities Corporate & Insti- Danske Markets Total % of total (DKK millions) Denmark Finland Sweden Norway N. Ireland Ireland* Baltics tutional Banking and Treasury Other Q312 Q312 Central and local governments 12,770 4,700 1, ,262 2,459 1,227 3, ,038 29, , Subsidised housing companies etc. 107,307 6,831 5,426 2, , , Banks 11,383 2,657 5, ,435 12, ,711 6, , Diversified financials 6,150 1,500 2,467 1, , ,621 6, , Other financials ,886 4,219 65, Energy and utilities 5,167 2,719 1,124 6, ,443 23,239 2, , Consumer discretionary 30,292 6,439 11,613 4,555 3,881 2,060 1,254 19,659 1,249 2,889 83, Consumer staples 65,597 4,031 4,465 7,906 7,133 4, ,505 2,621 4, , Commercial property 118,168 15,523 55,116 31,991 7,061 8,565 1,627 15,261 3,073 2, , Construction, engineering and building products 5,201 3,543 7,520 2,090 2,108 2, , ,568 36, Transportation and shipping 5,095 2,160 3,518 2, , ,223 66, Other industrials 17,064 3,252 8,160 6,077 1, , ,707 70, IT 2, , , , Materials 5,336 2,807 4,948 1, , , ,106 43, Health care 6, , ,189 4, , Telecommunication services , , Personal customers 557, ,473 92,134 83,610 18,257 22,936 11, , , Total, Q , , , ,756 47,774 46,751 21, , ,053 77,750 2,437,905 % of total, Q Non-core Ireland's portion , , * Including Non-core Ireland Credit exposure from lending activities, by business unit (Q411) Retail Banking Banking Activities Corporate & Insti- Danske Markets Total % of total (DKK millions) Denmark Finland Sweden Norway N. Ireland Ireland Baltics tutional Banking and Treasury Other Q411 Q411 Central and local governments 15,060 4,674 2,170 1,818 9,982 2,241 1,120 4,580 61,679 19, , Subsidised housing companies etc. 102,994 6,977 6,641 2, , , Banks 15,174 1,668 5, ,011 15, ,502 8, , Diversified financials 7,273 1,410 2,952 2, , , ,226 8, , Other financials 1, ,407 50,551 1,218 56, Energy and utilities 7,447 2,405 1,175 5, ,595 20,552 1, , Consumer discretionary 30,718 6,370 11,194 4,228 3,636 2,557 1,299 19, ,394 83, Consumer staples 64,866 4,488 4,278 7,101 6,008 5, ,453 2,354 3, , Commercial property 116,047 14,143 56,715 30,566 7,703 11,398 1,776 14,846 2,796 1, , Construction, engineering and building products 5,631 3,125 6,801 1,605 2,781 2, , ,609 36, Transportation and shipping 6,865 2,418 2,965 2, , ,110 71, Other industrials 21,764 3,451 9,681 6,879 1, ,859 1,024 6,594 77, IT 2, , , , Materials 5,431 3,332 5,033 1, , ,909 42, Health care 6, ,112 2,606 1,544 27, Telecommunication services , , Personal customers 566, ,063 85,268 77,003 17,132 24,626 11, , , Total, Q , , , ,658 52,480 52,695 22, , ,692 65,551 2,298,711 % of total, Q

21 Deposit portfolio by business unit Share of Share of Volume (DKK billions) Segment Q312 Q212 Q112 Q411 Q311 Q211 Q111 unit (%) total (%) Retail Banking Denmark Personal Business Total Retail Banking Finland Personal Business Total Retail Banking Sweden Personal Business Total Retail Banking Norway Personal Business Total Banking Activities Northern Ireland Personal Business Hereof public sector deposits Total Banking Activities Ireland Personal Business Total Banking Activities Baltics Personal Business Total Corporate & Institutional Banking Personal Corporate Total Non-core Ireland Personal Business Total Danske Markets and Treasury Personal Business Total Other business segments Personal Business Total Bank deposits, total (ex repos) Personal Business Total Repos Personal Business Total Deposits, total Personal Business Total deposits Bonds issued by Realkredit Danmark Pooled schemes Before elimination of the Group's own Realkredit Danmark bonds. 21

22 Total loan and deposit portfolios by geographical area QoQ: 0.3% -0.2% PERSONAL LENDING YoY: 0.2% 2.4% DKK billions QoQ: 1.9% (0.0%)* 600 YoY: 7.4% (0.3%)* BUSINESS LENDING DKK billions QoQ: -2.6% YoY: -2.3% QoQ: 0.1% (-3.9%)* YoY: -0.8% (-14.2%)* 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Denmark Activities outside Denmark Denmark Activities outside Denmark PERSONAL DEPOSITS BUSINESS DEPOSITS DKK billions QoQ: -2.1% YoY: 1.9% QoQ: -0.4% (-1.9%)* YoY: 4.9% (0.1%)* DKK billions QoQ: 2.5% YoY: -15.5% QoQ: 3.0% (1.0%)* YoY: -9.0% (-13.6%)* Q111 Q211 Q311 Q411 Q112 Q212 Q312 Denmark Activities outside Denmark 0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Denmark Activities outside Denmark * Figures in parentheses indicate quarterly and annual changes in local currencies. Activities in Denmark include mortgage loans at Realkredit Danmark as well as all national and international activities of Nordania, Danske Markets and Treasury, Corporate & Institutional Banking (Denmark) and Danske Capital, excluding activities in Luxembourg. Activities outside Denmark include activities in Finland, Sweden, Norway, Ireland, Northern Ireland, Estonia, Lithuania, Latvia, Poland, Germany, Russia, Luxembourg and Coporate & Institutional Banking (outside Denmark). 22

23 Loan impairment charges Year to date Full year Q312 Q212 Q112 Q411 Q311 Q211 Q Accumulated individual impairment charges, end of period (DKK billions) Accumulated collective impairment charges, end of period (DKK billions) Total accumulated impairment charges, end of period (DKK billions) Quarterly impairment charges, end of period (DKK billions) Gross exposure subject to individual impairment test, end of period (DKK billions) Net exposure subject to individual impairment test, end of period (DKK billions) Collateral on exposure subject to individual impairment test, end of period (DKK billions) Total loans and guarantees, end of period (DKK billions) 2,013 2,047 2,005 1,930 1,930 1,952 1,929 2,013 1,930 Total coverage ratio (%) Total coverage ratio, including collateral (%) Specific coverage ratio (%) Specific coverage ratio, including collateral (%) Loan loss ratio - impairment charges as % of loans and guarantees, p.a Impairment charges against loans, advances and guarantees. 2 Consists of exposures in rating categories 10 and 11, before individual impairment charges. Rating category 10 contains exposures to customers which are not in default but for which evidence of impairment exists; rating category 11 contains exposures to customers in default. 3 Consists of exposures in rating categories 10 and 11, after individual impairment charges. 4 Consists of collateral on exposures in rating categories 10 and 11. Collateral is calculated with a haircut. 5 Accumulated individual impairment charges as a percentage of gross exposure subject to individual impairment test. 6 Accumulated individual impairment charges plus collateral on exposure subject to individual impairment test as a percentage of gross exposure subject to individual impairment test and guarantees. Total loans and guarantees Year to date Full year (DKK billions) Q312 Q212 Q112 Q411 Q311 Q211 Q Loans and advances (excl. repo loans) Repo loans Loans and advances at fair value Guarantees Total loans and guarantees 2,013 2,047 2,005 1,930 1,930 1,952 1,929 2,013 1,930 23

24 Quarterly loan impairment charges (DKK millions) Q312 Q212 Q112 Q411 Q311 Q211 Q111 Collective impairment charges Individual impairment charges 3,311 3,253 3,802 5,374 3,518 3,343 2,763 Write-offs charged directly to income statement Received on claims previously written off , Interest adjustment according to the effective interest method Total 2,879 3,109 3,922 4,789 2,802 2,753 2,841 Change in accumulated impairment charges (allowance account) (DKK millions) Q312 Q212 Q112 Q411 Q311 Q211 Q111 Accumulated impairment charges, beg. of quarter 54,006 51,617 48,604 47,165 44,599 41,475 43,769 New and increased impairment charges 4,031 4,073 7,354 5,748 4,482 4,294 6,376 Reversals of impairment charges 1,302 1,149 3, , ,799 Foreign currency translation Write-offs debited to allowance account 9,579 1, ,825 1, ,614 Other additions and disposals Accumulated impairment charges, end of quarter 47,406 54,006 51,617 48,604 47,165 44,599 41,475 Total accumulated impairment charges (allowance account), by business unit (DKK millions) Q312 Q212 Q112 Q411 Q311 Q211 Q111 Retail Banking Denmark 19,115 18,959 18,731 18,180 17,185 16,660 15,385 Retail Banking Finland 2,126 2,082 2,051 1,974 2,198 1,890 1,935 Retail Banking Sweden 1,436 1,447 1,438 1,226 1,101 1,161 1,233 Retail Banking Norway 1,591 1,618 1,602 1,474 1,730 1,610 1,583 Banking Activities Northern Ireland 6,446 6,158 5,727 5,083 4,702 3,856 3,319 Banking Activities Ireland 1,731 2,449 2,403 13,820 14,123 12,555 10,692 Banking Activities Baltics 1,789 1,931 2,056 2,244 2,522 2,569 2,817 Other Banking Activities Corporate & Institutional Banking 2,555 1,970 1,645 1, ,085 1,102 Non-core Ireland 9,730 14,078 12, Danske Markets and Treasury 294 2,702 2,498 2,599 2,518 2,583 2,916 Danske Capital Accumulated impairment charges, end of quarter 47,406 54,006 51,617 48,604 47,165 44,599 41,475 24

25 2.3 Ratios and key figures Year to date Full year Q312 Q212 Q112 Q411 Q311 Q211 Q Earnings per share (DKK) Diluted earnings per share (DKK) Return on shareholders' equity Cost/income ratio for the period (%) Total tier 1 capital ratio, excluding hybrid capital (%) Total tier 1 capital ratio (%) Total capital ratio (%) Lending as a percentage of deposits and issued mortgage bonds etc.(%) Group total VaR (avg.) (DKK millions) Group total VaR, end of period (DKK millions) Share price, end of period (DKK) Book value per share, end of period (DKK) Full-time-equivalent staff, end of period 20,651 20,997 21,160 21,320 21,567 21,536 21,434 20,651 21,320 Price/earnings, end of period, p.a Dividend per share (DKK) Dividend yield (%) Payout ratio (%) Shares outstanding, end of period (millions) Issued shares, end of period (millions) Share price/book value per share, end of period Market capital, end of period (DKK millions) 96,868 75,344 87,507 67,632 72,761 88,038 80,793 96,868 67,632 1 Share-related key figures for Q have been divided by an adjustment factor (1.0807) as a consequence of the rights issue. 2 95% confidence level, 10-day horizon. Calculated as an average of daily VaR values during the period. The figures in Q112 are not comparable with previous periods' figures because of the introduction of new risk factors in the Group's internal model in December

26 Cost/income ratio Total assets (%) Q111 Q211 Q311 Q411 Q112 Q212 Q312 DKK billions 4,000 3,500 3,000 2,500 2,000 1,500 1, Q111 Q211 Q311 Q411 Q112 Q212 Q312 Return on equity (after tax) p.a. (%) 6 Earnings per share* DKK Q111 Q211 Q311 Q411 Q112 Q212 Q312-1 Q111 Q211 Q311 Q411 Q112 Q212 Q312 * Earnings per share figure for the first quarter of 2011 has been divided by an adjustment factor (1.0807) as a consequence of the rights issue. 26

27 Business segments and key statistics 27

28 3.1 Breakdown of key income and expense items Net interest income Year to date Full year (DKK millions) Q312 Q212 Q112 Q411 Q311 Q211 Q Retail Banking Denmark 3,117 3,189 3,081 3,172 3,179 3,046 2,872 9,387 12,269 Retail Banking Finland ,650 2,108 Retail Banking Sweden ,082 2,440 Retail Banking Norway ,544 1,553 Banking Activities Northern Ireland ,141 Banking Activities Ireland Banking Activities Baltics Other Banking Activities Corporate & Institutional Banking ,584 2,031 Non-core Ireland Banking Activities Total 6,167 6,159 6,136 6,150 5,964 5,724 5,469 18,462 23,307 Danske Markets and Treasury Danske Capital Danica Pension Other Activities Group Total 6,198 6,218 6,172 6,182 6,016 5,785 5,554 18,588 23,537 Total income Year to date Full year (DKK millions) Q312 Q212 Q112 Q411 Q311 Q211 Q Retail Banking Denmark 4,126 4,220 4,144 4,271 4,165 4,158 3,982 12,490 16,576 Retail Banking Finland ,705 3,581 Retail Banking Sweden ,637 3,225 Retail Banking Norway ,308 2,564 Banking Activities Northern Ireland ,285 1,587 Banking Activities Ireland ,054 Banking Activities Baltics Other Banking Activities ,691 2,204 Corporate & Institutional Banking ,235 3,029 Non-core Ireland Banking Activities Total 8,782 8,974 8,865 8,982 8,638 8,630 8,302 26,621 34,552 Danske Markets and Treasury 1,566 2,064 2,925 1, ,049 2,527 6,555 5,716 Danske Capital ,325 1,980 Danica Pension , Other Activities Group Total 11,215 12,251 12,353 11,863 8,311 11,512 11,691 35,819 43,377 28