Improvements across the board

Transcription

1 Improvements across the board Lars Stensgaard Mørch Executive Board member Global head of Business Banking 10 September 2015

2 Nordic Universal bank with a strong and integrated platform Facts 3.6 million customers 313 branches* 15 countries 18,874 full-time employees Business units Personal Banking Business Banking Corporates & Institutions Danica Pension Danske Capital For divestment Non-core (Ireland & Conduits) Personal banking activities in the Baltics Northern Ireland Danske Bank market share** Norway 5% Denmark 20% 26% Sweden 5% Finland 10% Estonia 8% Latvia 3% Lithuania 6% * Excluding agricultural centres in Denmark. **Market share by lending 2

3 We are revitalising Danske Bank and accelerating execution of our strategy Recognised as the most trusted financial partner Customer satisfaction Financial results Setting new standards in financial services Advisory services Digitalisation Openness & Transparency Execution Customer attention Simplicity Efficiency 3

4 On track to meet our RoE target and customer satisfaction improving RoE after tax; 2009 to 2018; % Customer satisfaction 12.5 > * H Target Target End Q * Before goodwill impairment charges 4

5 Profit improvement in all Business Units Result before tax (DKK m) 2015 H H1 +40% 3, % +12% 3,199 2,619 2,346 2,813 2, % % 535 1, Personal Banking Business Banking Corporates & Institutions Danske Capital Danica Pension 5

6 Diversified business model dealing well with low rates/low growth Total income (DKK m) 2015 H H1 +1% 8,218 8,177 6,457 +8% 5,966 5, % 4, % +20% 1,148 1,023 1, Personal Banking Business Banking Corporates & Institutions Danske Capital Danica Pension 6

7 Expenses: Positive effect from strong focus on cost savings Total group expenses (DKK m) 23,958 23,794 22,641 10,750 Actual 2012 Actual Actual 2014 H

8 H115 UBS Annual Nordic Financial Service Conference 2015ncial results for Q1 Impairments: Loan losses reduced significantly Group impairments, 2007 to H115 (DKK bn/bps) Loan loss ratio by banking unit, H vs. H (bps) Impairments Loan loss ratio* (rhs) H H Personal Banking 14 9 Corporates & Institutions 8 0 Business Banking 17-3 Non-core * Loan loss ratio defined as annualised impairment charges as a percentage of loans and guarantees. 8

9 Business Banking is approximately 1/3 of Danske Bank Lending Deposits 40% 32% Income Expenses 26% 20% 9

10 Strategy: De-risking and making the bank relevant for businesses Low touch High touch Small Business Local Business Agriculture & Forestry Municipalities International Banking Large Real-Estate Large Customer Driver of image Driver of income Fig: Illustration of segment model 10

11 A good bank for all - The best bank for many - utilising specific Group strengths Core Selective Optimise Efficiency Conservative Total income 44% 28% 11% 5% 12% Resources Invest Reduce Lending & credit Segmentation effect Increased capital efficiency and reduced risk 11

12 Innovative digital solutions and capabilities to support through customer life & relationship cycle Digital solutions Capabilities Best Supply Chain Finance provider Nordics 2015 Best Bank for Liquidity Management Nordics 2015 #1 Overall Performance Cash Management Nordics 2015 Best Bank for Risk Management Nordics 2015 Extending lead in online channels #1 Overall Performance Trade Finance Nordics 2015 Best Bank for Payments & Collections Nordics

13 At the leading edge of mobile payment solutions Small retailers Large retailers Used by +2.5 m Danes Webshops Consumers NGOs & municipalities Vending machines 13

14 Business Banking well equipped for the future Development from 2012 to 2015: Customer satisfaction From below competition to top-2 in 4 out of 5 markets* Market shares From decreasing to stable / increasing Business Banking income statement (DKK m) Business H HI 2014 Index Net interest income 4,537 4, Net fee income 1,139 1, Net trading income Other income Total income 6,457 5, Expenses 2,610 2, Profit before loan impairment charges 3,847 3, Loan impairment charges Profit before tax 3,950 2, Profitability ROE from 7,2% to 21.1% Employee opinion Index 76 (industry avg. 68) Return on Allocated Capital Cost/Income ratio (%) Employees (end of period) 3,065 3, * Core segment overall satisfaction May

15 Positive development in profit across markets Profit before tax, Business Banking(DKK m) Profit before tax, Business Banking(SEK m*) 50% 58% H1 H H H1 H H Profit before tax, Business Banking (NOK m*) Profit before tax, Business Banking(EUR m*) 271% 1% H1 H H H1 H H * Calculation to local currency: Used currency rate ultimo month 15

16 Very strong franchise in Sweden - Profitable growth on the agenda Loans excl. repo, Q (SEK m)* Key points 87,192 Personal Banking 145,302 Business Banking Pursue partnerships Investment in IT platform and our overall value proposition: #1 Cash Management Prospera #1 Trade Finance Prospera #1 Fixed income, IRD and FX - Prospera #2 Business Owners Prospera #2 Privata Affärer Award Profit before tax, H1 H (SEK m)* Swedish business areas +21% Personal Banking Business Banking Corporates & Institutions Danica Pension H1 H H Danske Capital * Calculation to local currency: Used currency rate ultimo month 16

17 Outlook for 2015 Net profit over DKK 16 bn. 17

18 Questions 18

19 Disclaimer Important Notice This presentation does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of Danske Bank A/S in any jurisdiction, including the United States, or an inducement to enter into investment activity. No part of this presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The securities referred to herein have not been, and will not be, registered under the Securities Act of 1933, as amended ( Securities Act ), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. This presentation contains forward-looking statements that reflect management s current views with respect to certain future events and potential financial performance. Although Danske Bank believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors many of which are beyond Danske Bank s control. This presentation does not imply that Danske Bank has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided. 19