financial results for 2015 - danske bank · we achieved our financial targets financial targets...
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Financial results for 2015 2 February 2016
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0
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10
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A recovery is under way and appears likely to continue
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100
105
110
Employment
Denmark
Eurozone
USA
Index 2007=100
0
20
40
60
80
100
120
2016 2015 2014 2013
Oil price development Industrial production, China
Annual growth rate (%)
Sources: National statistics via Macrobond, USA’s Engergy Information Administration and China’s statistics agency via Macrobond.
2 2
Sources: Statistics Denmark, central banks
Moderate growth in Denmark – interest rates remained low
-1
0
1
2
3
4
5
2012 2014 2016 2010 2008 2006
Eurozone Denmark
-8
-6
-4
-2
0
2
4
6
8
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
70
75
80
85
90
95
100
105
110
Single-family
houses
Owner-occupied
flats
Index 2006=100
Benchmark interest rates
Consumer spending growth, y/y (%)
Housing prices; actual (dark), adjusted for seasonality
(light)
3 3
2015 2014 Index Net interest income 21,476 22,313 96
Net fee income 12,122 11,154 109
Net trading income 6,933 6,693 104
Other income 1,778 1,344 132
Net income from insurance business 1,892 2,496 76
Total income 44,201 44,000 100
Expenses 21,827 22,641 96
Goodwill impairment charges 4,601 9,099 51
Profit before loan impairment charges 17,773 12,260 145
Loan impairment charges 57 2,788 2
Profit before tax, core 17,716 9,472 187
Profit before tax, Non-core 46 -1,503 -
Profit before tax 17,762 7,969 223
Tax 4,639 4,020 115
Net profit 13,123 3,948 -
Net profit before goodwill impairments 17,724 13,047 136
Return on avg. shareholders' equity (%) 8.5 2.5
ROE before goodwill impairments (%) 11.6 8.6
Common equity tier 1 capital ratio (%) 16.1 15.1
Lending (DKK bn) 1,609 1,564 103
Deposits (DKK bn) 817 763 107
Strong financial results for 2015
11.6%
Return on equity
4 4
2015
6.7
2005
16.1
* Before goodwill impairments.
Trends in ROE and shareholders’ equity
Return on equity (%)
Shareholder’s equity (DKK billions)
Indsæt passende billede
2015
149.5
2005
74.5
+101%
8.6*
11 10
5.0
11.6*
14 13 12
3.6 2.1*
15
3.6
09
1.7
08
1.0
07
15.1
06
17.5
05
18.5
CET 1 capital ratio (%)
Target, at least 13%
5 5
Dividend payout and share buy-back
Proposed dividend of
DKK 8 per share,
or 46% of net profit
Share buy-back programme for
DKK 9 bn in 2016
6 6
Personal Banking
808
7942014
+2%
2015
Lending (DKK billions)
+11%
5,137 2015
2014 4,648
Profit before tax and goodwill (DKK millions) Strong pressure on net interest income because of low interest rates
Strong refinancing activity and demand for investment solutions
Low impairments and reduction of expenses
Increase in customer satisfaction in all markets
7 7
Business Banking
2014 5,733
+32%
2015 7,592
Lending (DKK billions)
Profit before tax and goodwill (DKK millions)
634
663
+5%
2015
2014
Lending growth in all core markets
Increase in customers in Denmark
Rising market shares in Denmark, Sweden and Norway
Large drop in loan impairments, and expenses down 5%
8 8
Corporates & Institutions
Total income (DKK millions)
Profit before tax (DKK millions)
+30%
2015 5,396
2014 4,135
Rise in customer-driven income of 14%
High customer activity – important IPOs, M&As, etc.
Very high customer satisfaction in Nordics, with Corporate Banking, among others
Solid increase in trading activity
9,873
+8%
2015
2014 9,121
9 9
* Mutual funds.
Danske Capital
+17%
2015 1,649
2014 1,406
Market shares, Norway and Sweden
Profit before tax and goodwill (DKK millions) Good growth in the Nordics – 22.8% in market shares measured by net sales
Rise in assets under management in alternative investments
71% of investment products delivered a return above their benchmarks
Named best in equities in Denmark for the seventh year running
8.7
Sweden
2.3
Norway
35.7
6.6
Total market share*
Market share net sales
10 10
Danica Pension
-24%
2015 1,892
2014 2,496
Premiums (DKK millions)
Net income (DKK millions)
29,573
+10%
2015
2014 26,822
The result from insurance business rose 6%
The decline in net income was owing mainly to a lower investment return and lower extraordinary income recognition from the shadow account
Solid trend in Nordics – contributions rose 41% in Sweden and 14% in Norway
11 11 * Before goodwill impairments.
We achieved our financial targets
Financial targets Status, end-2015
Return on equity of 9.5%
Improvement in ratings by at least one notch
Dividend payout of 40-50% of net profit
Common equity tier 1 capital ratio of at least 13%
11.6%*
46%
21% Total capital ratio of at least 17%
16.1%
Stable A ratings
12 12 Source: Danske Bank, Customer Insights.
And customer satisfaction is going in the right direction
No.1 No. 2 No. 3
No. 1 in Nordics in • Corporate Banking • Cash Management • Institutional Banking
No. of Prospera rankings in top 3
Corporates & Institutions Business Banking Personal Banking
38 (37%)
18 (17%)
17 (17%)
Target is top three in 66.6% of surveys – in 2015, we reached 71%
13 13
Good progress in the Nordics
Sweden
Increase in customers and 6% rise in lending
Collaboration with SACO
New customer programme
Bank of the Year for personal customers
New bond programme
Increase in lending of 26%
Large increase in customers because of collaboration with Akademikerne
Best private banking offer in Norway according to Prospera
Launch of MobilePay
Norway
Good foundation for future growth
Increased lending to SMEs
Rise in customer satisfaction among all customer types – especially high among corporate clients
Finland
14 14
Solid progress in Northern Ireland
140
102
+37%
2015
2014
Profit before tax (GBP millions)
+2%
4,300 2015
2014 4,213
Lending (GBP millions)
Increase in both lending and deposits
Strong position in market for corporate clients
Improved credit quality
Separate business unit
15 15
New Wealth Management unit with great potential
800,000 customers in the new business unit
DKK 900 billion in assets under management
Wealth Management gathers our expertise in wealth and asset management and pensions
Improves customer services and accelerates the offering of innovative new solutions and products
16 16
New hedge fund for alternative investments
Innovation throughout our business
TouchID with MobilePay and Mobile Banking
New customer programme in Sweden
Contactless MasterCard and Visa/Dankort
New health package from Danica Pension
Mixopsparing (mixed savings) investment product
New savings accounts in Finland
Digital signature for businesses
Danske In-house Banking – new FX service
Advisory services via chat
MobilePay for Apple Watch
MobilePay launched in Norway
Home and auto loans with fixed interest rates
17 17
Five trends are driving change
Macroeconomics Customer expectations
New competitors Regulations Digitalisation
18 18
Four strategic themes set our future direction
19 19
* Before goodwill impairments.
Outlook 2016
Net profit in line with 2015 level*
20
Financial results for Q1 2013
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.