Financial results 2018 Press conference on 1 February 2019 2018 was - PowerPoint PPT Presentation

Financial results 2018 Press conference on 1 February 2019

2018 was a challenging year Estonia Increasing expenses Lower net Solid development in trading income underlying business

Lower net trading income and increasing expenses affected financial results negatively 2018 2017 Index DKK millions Net interest income 23,571 23,806 99 Net fee income 15,402 15,664 98 Net trading income 4,676 7,087 66 Other income 716 1,591 45 Total income 44,365 48,149 92 Operating expenses 25,011 22,722 110 Profit before loan impairment charges 19,354 25,427 76 Loan impairment charges -650 -873 – Profit before tax, core 20,004 26,300 76 Profit before tax, Non-core -282 -12 – Profit before tax 19,722 26,288 75 Tax 4,721 5,388 88 Net profit for the year 15,001 20,900 72 Return on avg. shareholders’ equity 9.8% 13.6% – 3

Increasing expenses DKK billions 30 +10% 25 Donation of 20 DKK 1.5 billion 15 Integration of SEB 10 Pension Danmark 5 Increased AML and 0 2017 2018 compliance costs 4

Business unit performance DKK millions Banking DK Banking Nordic Corporates & Wealth Northern Ireland Institutions Management 2018 +/- 2018 +/- 2018 +/- 2018 +/- 2018 +/- Lending +1% +5% -1% +4% +8% Total 13,442 – 10,512 -1% 9,289 -22% 7,950 -7% 1,978 +1% income Operating 6,860 +2% 5,029 -3% 4,689 -7% 4,810 +18% 1,207 +26% expenses Profit 7,340 -6% 5,642 +9% 4,322 -34% 3,183 -30% 744 -41% before tax 5

Lending growth across the Nordics Continued lending growth in all markets Norway 3 % Finland 4 % Sweden 6 % Denmark 1 % 6

Danske Bank remains well capitalised CET1 capital ratio 20 18 Own target 16 of around 16% 14 Statutory requirement 12 of 14% 10 8 6 4 2 0 2016 2017 2018 7

Distribution of capital to shareholders 2017 – 2019 Percent Total of Total of DKK18.9 billion DKK16.3 billion 100 95% DKK 93% 3.1billion 80 Proposed dividend of 78% DKK 10 DKK 6.9 DKK 8.5 per share – billion 60 billion corresponding to 51% of 51% net profit for the year 40 DKK 8.9 DKK 9.4 DKK 7.6 20 billion billion billion No share buy-back 0 2017 2018 2019 programme in 2019 Dividend Share buy-back Discontinued share buy-back 8

Financial outlook for 2019 Net interest income is Net fee income is expected to be at around expected to be higher the level in 2018 Expenses are expected Loan impairments are to be at around the level expected to be higher in 2018 We expect net profit for 2019 to be in the range of DKK 14-16 billion The outlook is subject to uncertainty and macroeconomic developments 9

Estonia Presentation of findings from the Management and Bruun & Hjejle staff consequences investigation Investigation into Investigations by Estonian non-resident authorities in portfolio continues as Denmark, Estonia, does the dialogue with the US and France the authorities 10

Customer satisfaction and customer development On target Below target Personal customers Business customers Corporates & Institutions Wealth Management 11

We are strengthening our AML efforts A number of initiatives in the Baltics General improvements of AML efforts at Group level Further investments of up to DKK 2 billion over the next three years 12

Focus areas 2019 Continued Nordic Estonia issue and Customers and growth and improved AML efforts innovation partnerships 13

Continued focus on partnerships and innovation New investment Minna Danske Spiir funds focusing on Technologies Bolig Fri Danish fintech climate and water Swedish fintech +impact Tryg platform for District Forsikring entrepreneurs targeting digital platform for cooperation start-ups with focus on commercial customers on innovative UN sustainable insurance products development goals Cooperation Overview of all with Finnish accounts with TomorrowTech Google Pay other banks on digital trading platform 14

New Dankort agreement Danske Bank will continue to issue Dankort cards after 2019 Collaboration on further development of the Danish payments infrastructure Important to secure easy, inexpensive and safe payment solutions 15

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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. 17