Press conference Peter Straarup CEO 10 February 2011 y - PowerPoint PPT Presentation

ANNUAL REPORT 2010 Press conference Peter Straarup CEO 10 February 2011 y

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 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, and may not be offered, exercised or sold in the United States absent registration or an applicable exemption from registration requirements. References to a potential share offering by Danske Bank are g pp p g q p g y included herein pursuant to Rule 135c of the Securities Act of 1933, as amended. 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 g p p g y 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. 2

Net profit reflects improved economic environment; prepayment of hybrid capital and right issue f h b id i l d i h i N Net profit was DKK 3.7 bn fi DKK 3 7 b • The expiry of Bank Package I gives better earnings capacity • New lending to Danish customers remains high • IT initiatives with new mobile banking solutions a big success • Asked for permission to prepay hybrid capital • Rights issue planned for first half of 2011 Rights issue planned for first half of 2011 • • No dividend paid for Q4 2010 • Improvement in earnings expected to continue in 2011 • 3

Profit of DKK 3.7 bn DKK in 2010 after expected d decline in income li i i DKK m 2009 2010 Index Net interest income 27,524 23,843 87 Net fee income 7,678 8,510 111 Net trading income Net trading income 18,244 18 244 7 921 7,921 43 43 Other income 3,083 3,857 125 Income from insurance 2,810 2,146 76 Total income 59,339 46,277 78 Operating expenses 24,949 24,135 97 Goodwill imp & Bk Package I Goodwill imp & Bk Package I 3 958 3,958 1,875 1 875 47 47 Profit bef. loan imp. charges 30,432 20,267 67 Loan impairment charges 25,677 13,817 54 Profit before tax 4,755 6,450 136 Tax 3,042 2,786 92 Net profit N fi 1 713 1,713 3 664 3,664 214 214 4

Net trading income back at more normal level; uncertain markets at end of year i k d f Danish 30-year bp DKK m 2009 2010 Index mortgage bond spread Net interest income 27,524 23,843 87 55 Net fee income 7,678 8,510 111 50 Net trading income 18,244 7,921 43 45 Other income 3,083 3,857 125 40 Income from insurance 2,810 2,146 76 35 35 Total income 59,339 46,277 78 Operating expenses 24,949 24,135 97 30 Goodwill imp & Bk Package I 3,958 1,875 47 25 Profit bef. loan imp. charges P fi b f l i h 30,432 30 432 20 267 20,267 67 67 20 Loan impairment charges 25,677 13,817 54 15 Profit before tax 4,755 6,450 136 0-12 0-03 0-06 0-09 1-12 Tax Tax 3 042 3,042 2,786 2 786 92 92 30 30 30 30 31 Net profit 1,713 3,664 214 5

Net interest income declines because of lower interest rates and rising funding costs i d i i f di Danish central bank ’ s DKK m 2009 2010 Index deposit rate % Net interest income 27,524 23,843 87 1,0 Net fee income 7,678 8,510 111 Net trading income 18,244 7,921 43 Other income 3,083 3,857 125 Income from insurance 2,810 2,146 76 Total income 59,339 46,277 78 0,5 Operating expenses 24,949 24,135 97 Goodwill imp & Bk Package I 3,958 1,875 47 Profit bef. loan imp. charges f f 30,432 20,267 67 Loan impairment charges 25,677 13,817 54 Profit before tax 4,755 6,450 136 0,0 T Tax 3 042 3,042 2 786 2,786 92 92 2 31-12 28-02 2 4 30-04 6 30-06 8 31-08 0 31-10 2 31-12 Net profit 1,713 3,664 214 6

Insurance: Strong premium growth; results remain sound d Premium income DKK m 2009 2010 Index - market products Net interest income 27,524 23,843 87 DKK bn Net fee income 7,678 8,510 111 20 Net trading income 18,244 7,921 43 Other income 3,083 3,857 125 15 Income from insurance 2,810 2,146 76 Total income 59,339 46,277 78 10 Operating expenses 24,949 24,135 97 Goodwill imp & Bk Package I 3,958 1,875 47 5 5 P Profit bef. loan imp. charges fi b f l i h 30 432 30,432 20 267 20,267 67 67 Loan impairment charges 25,677 13,817 54 0 Profit before tax 4,755 6,450 136 06 07 08 09 0 Tax Tax 3 042 3,042 2,786 2 786 92 92 200 200 200 200 201 Net profit 1,713 3,664 214 7

Large decline in expenses that more than offsets wage and price inflation d i i fl i Expenses DKK bn DKK m 2009 2010 Index 30 Net interest income 27,524 23,843 87 Net fee income 7,678 8,510 111 Net trading income 18,244 7,921 43 28 Goodwill write-offs Other income 3,083 3,857 125 + Bank Income from insurance 2,810 2,146 76 26 26 Package I g Total income 59,339 46,277 78 fee Bank Package I fee Operating expenses 24,949 24,135 97 -10% 24 Goodwill imp & Bk Package I 3,958 1,875 47 -3% Profit bef. loan imp. charges P fi b f l i h 30,432 30 432 20,267 20 267 67 67 Loan impairment charges 25,677 13,817 54 22 Profit before tax 4,755 6,450 136 T Tax 3 042 3,042 2,786 2 786 92 92 20 Net profit 1,713 3,664 214 2009 2010 8

Loan impairment charges: Dominated by business customers, while personal customers manage better t hil l t b tt DKK bn Impairment DKK m 2009 2010 Index charges by Net interest income 27,524 23,843 87 16 customer type Net fee income 7,678 8,510 111 14 Net trading income 18,244 7,921 43 Distressed banks Other income 3,083 3,857 125 12 Income from insurance 2,810 2,146 76 Personal 10 10 Total income 59,339 46,277 78 Operating expenses 24,949 24,135 97 8 Goodwill imp & Bk Package I 3,958 1,875 47 6 6 P Profit bef. loan imp. charges fi b f l i h 30,432 30 432 20 267 20,267 67 67 Business & 9 Loan impairment charges 25,677 13,817 54 4 financial Profit before tax 4,755 6,450 136 2 2 T Tax 3 042 3,042 2,786 2 786 92 92 Net profit 1,713 3,664 214 0 9

Impairment charges highest in Ireland, but fall steadily every quarter dil Impairment charges/ lending Impairment charges by 2010 quarter bp DKK bn 800 10 600 8 400 400 6 200 4 0 -200 2 -400 0 altics orway arkets reland reland nmark nland Other weden Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Sw No Ma Ir Den N. Ir B Fi 10

Results in our main markets show a profit at five out of seven units f i Profit before tax 2010 DKK m Ex fees for Bank Package I 4.000 2.500 2 500 1.000 -500 500 -2.000 -3.500 -5.000 Denmark Norway y Sweden Finland Baltics Northern Ireland Ireland 11

Lending stable, while deposits continue positive trend d Lending Deposits DKK bn DKK bn 1.800 1,000 800 1.600 600 1.400 400 1.200 200 200 1.000 0 9 9 0 0 0 0 9 Q3 09 9 Q4 09 Q1 10 0 0 Q2 10 0 Q3 10 0 Q4 10 Q3 0 Q4 0 Q1 1 Q2 1 Q3 1 Q4 1 Banking Activities Danske Markets Note: Decline in Q1 2010 because of release of large deposit custody account with Danske Markets. 12

New era for the Danske Bank Group • Easiest, quickest service • Best-qualified solutions Best qualified solutions Personal customers Personal customers • Competitive prices • Fast service SMEs • Direct access to specialists Medium-sized • Best choice for Nordic customers companies & private banking & private banking • Leader in asset management and L d i t t d Large corporates capital markets services 13

Denmark ’ s first mobile banking for smartphones 14

Danske mobile banking 15

More and more customers choose digital delivery of documents d t Percentage of personal customers who receive documents in digital form 74% 72% 70% 67% 66% Dec 2009 Dec 2010 46% 45% 45% 42% 26% 18% 17% 15% Sweden 16

No cases lost at Danish Complaints Board in 2010 450 415 400 350 100% 300 250 200 150 100 42 50 50 10% 0 0 Total judgements Judgements involving Judgements against Danske D Danske Bank k B k B Bank k 17