Press conference Interim report 2007 - Earnings better than - PowerPoint PPT Presentation

Copenhagen, 9 August 2007 Press conference Interim report 2007 - Earnings better than expected Upgrade of guidance for 2007 as a whole

FIRST HALF OF H1 2007 IN BRIEF First half of 2007 in brief – Net profit rose 11 per cent, exceeding expectations Profit after tax DKr bn � 11% 8.0 � • Net profit better than expected 7.0 • Healthy demand for loans 7.6 • Good macroeconomic conditions 6.0 6.9 5.0 H1 2006 H1 2007 � � � For 2006, Sampo Bank is consolidated on a pro forma � basis from 1 February. 2

FIRST HALF OF H1 2007 IN BRIEF Financial accounts, H1 2007 – Net profit growth of 11 procent Income statement Pro forma • Income growth drivers: DKr m H1 2006 H1 2007 Index Net interest income 10,631 11,777 111 • Rising net interest income, Net fee income 4,469 4,396 98 despite margin pressure Net trading income 3,780 4,203 111 Other income 1,332 1,552 117 • Heavy volume at Danske Net income from insurance business 33 669 - � Markets Total income 20,245 22,597 112 • Good equity returns at Danica Expenses 11,131 12,530 113 Profit bef. credit loss exp. 9,114 10,067 110 • Modest credit loss expenses Credit loss expenses -477 5 - • Lower corporation tax in Denmark Profit before tax 9,591 10,062 105 Tax 2,716 2,433 90 Net profit for the period 6,875 7,629 111 � � � � 3

BUSINESS TRENDS Net interest income on the rise – Good activity level and succesful introduction of new products Finland: +6% Norge: +17% Sverige: +21% Sweden � Baltikum: +63% Nordirland: +10% Irland: +31% Danmark: +9% � � � � 4

BUSINESS TRENDS Sampo Bank group – Integration proceeding according to plan � November: February: Easter: Easter: IT development and Acquisition Purchase Finland to be Baltics to be testing period announced completed converted converted 2006 2007 2008 2009 5

FORRETNINGSUDVIKLING Danske Bank and BG Bank merger – Merger of branches ahead of schedule 6

BUSINESS TRENDS Customer influx tops expectations - Since May 15, 2007 Customer influx – number of new customers 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 New customers New exclusive customers 2,000 0 03-Jul 10-Jul 17-Jul 24-Jul 31-Jul 05-Jun 12-Jun 19-Jun 26-Jun 7

BUSINESS TRENDS Fee reductions in Denmark – Six reductions in 18 months 1. Jan. 2006: commissions reduced 2. Feb. 2006: fee check – fees discontinued 3. Oct. 2006: trading commissions reduced � 4. Oct. 2006: trading commissions reduced 5. Feb. 2007: fee check – more fees discontinued � � � 6. May 2007: introduction of 24/7 � 8

BUSINESS TRENDS Personalised fee summary in Netbank Unique users per week, Netbank/fees Number 50,000 40,000 30,000 20,000 10,000 0 6 8 10 12 14 16 18 20 22 24 26 28 30 Week, 2007 9

FORRETNINGSUDVIKLING Many irons in the fire - investing in the future 24/7 10

BUSINESS TRENDS Financial accounts, H1 2007 – Profit growth and higher income from outside Denmark Income statement and lending summary Income from banking activities outside Denmark 60% DKr m H1 2006 H1 2007 Index Share of total income from banking Net interest income 10,631 11,777 111 and mortgage finance Net fee income 4,469 4,396 98 Net trading income 3,780 4,203 111 Other income 1,332 1,552 117 Net income from insurance business 33 669 - 42% Total income 20,245 22,597 112 Expenses 11,131 12,530 113 30% Profit bef. credit loss exp. 9,114 10,067 110 30% Credit loss expenses -477 5 - Profit before tax 9,591 10,062 105 26% Tax 2,716 2,433 90 Net profit for the period 6,875 7,629 111 17% DKr bn H1 2006 H1 2007 Index Lending, domestic 912 986 108 0% Lending, foreign 510 605 119 2004 2005 2006 ex H1 2007 Deposits, domestic 431 501 116 Sampo Deposits, foreign 265 302 114 Bank 11

BUSINESS AREA HIGHLIGHTS Banking Activities Denmark – Good activity and successful introduction of new products ↑ 16 • Lending % ↑ • Net interest income 9 % ↑ • Income 3 % ↓ • Profit before tax 3 % • Profit before tax DKr 3,909m 12

BUSINESS AREA HIGHLIGHTS Banking Activities Finland – Rising activity and earnings higher than expected ↑ • Lending 9 % ↑ • Net interest income 6 % ↑ • Income 4 % ↓ 44 • Profit before tax % • Profit before tax DKr 495m 13

BUSINESS AREA HIGHLIGHTS Banking Activities Sweden – Large advance in earnings and succesful launch of Sparkonto XL Sweden ↑ 15 • Lending % ↑ 21 • Net interest income % ↑ 19 • Income % ↑ 27 • Profit before tax % • Profit before tax DKr 558m Sweden Return on equity before credit loss expenses & tax 20% 16% 16% 14% 2004 2005 2006 H1 2007 14

BUSINESS AREA HIGHLIGHTS Banking Activities Norway – High growth while profitability continues to rise ↑ 22 • Lending % ↑ 17 • Net interest income % ↑ 18 • Income % ↑ 15 • Profit before tax % • Profit before tax DKr 527m Return on equity before credit loss expenses & tax 21% 17% 13% 11% 2004 2005 2006 H1 2007 15

BUSINESS AREA HIGHLIGHTS Banking Activities Northern Ireland – Large earnings gains despite integration costs ↑ 15 • Lending % ↑ 10 • Net interest income % ↑ • Income 9 % ↑ DKr 186m • Profit before tax • Profit before tax DKr -18m Return on equity before credit loss expenses & tax 38% � 3% � 0% 2005 2006 H1 2007 H1 2007 ex total integration -2% costs 16

BUSINESS AREA HIGHLIGHTS Banking Activities Ireland – Strong growth and rising profit ↑ 51 • Lending % ↑ 31 • Net interest income % ↑ 33 • Income % ↑ DKr 224m • Profit before tax • Profit before tax DKr 95m Return on equity before credit loss expenses & tax 18% 9% 1% � � 2005 2006 H1 2007 H1 2007 ex total integration -8% costs 17

BUSINESS AREA HIGHLIGHTS Banking Activities Baltics – High growth and sharp advance in earnings ↑ 56 • Lending % ↑ 63 • Net interest income % ↑ 47 • Income % ↑ 137 • Profit before tax % • Profit before tax DKr 100m 18

BUSINESS AREA HIGHLIGHTS Realkredit Danmark – Activity lower, but earnings up ↑ • Nominal lending 7 % ↓ 17 • Gross lending % ↑ • Net interest income 7 % ↓ • Income 5 % ↑ • Profit before tax 2 % • Profit before tax DKr 1,293m 19

BUSINESS AREA HIGHLIGHTS Danske Markets – Earnings better than expected on increased customer activity ↑ • Income 7 % ↑ 12 • Trading activities % ↓ 26 • Investment portfolio % ↓ • Profit before tax 1 % • Profit before tax DKr 2,006m 20

BUSINESS AREA HIGHLIGHTS Danske Capital – Rising activity and earnings ↑ • Assets under mgt 8 % ↑ 15 • Income % ↑ 12 • Profit before tax % • Profit before tax DKr 536m 21

BUSINESS AREA HIGHLIGHTS Danica Pension – Earnings exceed expectations ↑ • Gross premiums 4 % • Return on invest. -0.4 % ↑ DKr 636m • Profit before tax • Profit before tax DKr 669m 22

OUTLOOK Outlook for 2007 as a whole – Upgrade of earnings guidance Assumptions Expectations � 2007 will be another satisfactory year ! Economic growth in principal markets slightly above eurozone � Net interest income up average � Net trading income up ! Double-digit lending growth � Income from insurance down slightly ! Two interest rate hikes in H2 2007 � Expenses rise 8%-9% ! Uncertainty about trend in capital � 0%-1% rise in underlying cost base markets � Profit before credit loss expenses slightly ! Profit after tax incl. Sampo Bank higher than 2006 (pro forma) was DKr 15.4bn in � Modest credit loss expenses 2006 � Tax rate declines from 27% to 25% � Profit after tax in line with 2006 23

Q&A SESSION Q&A session Please use the microphones at the front of your armrests The Q&A session will not be webcast www.danskebank.com 24