item a: submission of the annual report for adoption...profit dkr million net profit for the year...
TRANSCRIPT
Item a: Submission of the annualreport for adoption
• Denmark’s cheapest bank over a lifetime
• Number of cases at Complaints Board far smaller than market share
• Only one case lost in 2009 – we abided by the ruling
• Danske Invest won Morningstar’s best equities fund award for the second year running
• Danske Bank Private Banking named Denmark’s best private banking provider
• Danske Markets named best equities research provider for the fifth year running
DKr million 2008 2009 Index
Net interest income 27,005 27,524 102
Net fee income 8,110 7,678 95
Net trading income 6,076 18,244 300
Other income 3,585 3,083 86
Net income from insurance business -1,733 2,810 -
Total income 43,043 59,339 138
Expenses 24,865 24,283 98
Goodwill, Bank Package I, severance payments 3,861 4,624 120
Profit before loan impairmt charges 14,317 30,432 213
Loan impairment charges 12,088 25,677 212
Profit before tax 2,229 4,755 213
Tax 1,193 3,042 255
Net profit for the year 1,036 1,713 165
Results
Shareholders’ equity increased in 2009
95
100
105
Shareholders' equity
2008 2009
DKr billion
DKr million 2008 2009 Index
Net interest income 27,005 27,524 102
Net fee income 8,110 7,678 95
Net trading income 6,076 18,244 300
Other income 3,585 3,083 86
Net income from insurance business -1,733 2,810 -
Total income 43,043 59,339 138
Expenses 24,865 24,283 98
Goodwill, Bank Package I, severance payments 3,861 4,624 120
Profit before loan impairmt charges 14,317 30,432 213
Loan impairment charges 12,088 25,677 212
Profit before tax 2,229 4,755 213
Tax 1,193 3,042 255
Net profit for the year 1,036 1,713 165
Good trend in income
• Expenses up1%:
Goodwill impairment charges DKr 1.5bn
Commission, Bank Package I DKr 2.5bn
Cover of losses of banks in FS DKr 1.6bn
• Severance payments DKr 0.7bn
Costs remained stable
DKr million 2008 2009 Index
Net interest income 27,005 27,524 102
Net fee income 8,110 7,678 95
Net trading income 6,076 18,244 300
Other income 3,585 3,083 86
Net income from insurance business -1,733 2,810 -
Total income 43,043 59,339 138
Expenses 24,865 24,283 98
Goodwill, Bank Package I, severance payments 3,861 4,624 120
Profit before loan impairmt charges 14,317 30,432 213
Loan impairment charges 12,088 25,677 212
Profit before tax 2,229 4,755 213
Tax 1,193 3,042 255
Net profit for the year 1,036 1,713 165
Costs remained stable
• Fixed annual remuneration of DKr325,000 • Chairman gets triple amount• Vice chairmen get double amount• DKr200,000 for committee work• Extraordinary DKr40,000 addition to committee
chairmen who are not the chairman or a deputy chairman of the Board
• The maximum is double the fixed remuneration• The maximum for members of the chairmanship is
four times the fixed remuneration• No options or other performance-based schemes
Board of Directors
• No bonus payments in 2009• No share-based compensation• Incentive programme suspended in 2008• Remuneration of CEO unchanged relative to 2008• Other Executive Board members have received
partial compensation for share-based compensation
Remuneration of Executive Board
• New rules are being drawn up• Executive Board members, other senior managers
and customer advisers get NO performance-based pay
• Staff at Danske Markets and Danske Capital are paid in accordance with G20 recommendations
Remuneration policy (incentive pay)
17,4
0
5
10
15
20
25
30
Financial
Retail
Corporate
DKr billion
Charges brokendown by customer
type
Bank Pack. IDKr billion Impairmt charges 2009
0123456789
10
Q4 08 Q1 09 Q2 09 Q3 09 Q4 09
DKr million 2008 2009 Index
Net interest income 27,005 27,524 102
Net fee income 8,110 7,678 95
Net trading income 6,076 18,244 300
Other income 3,585 3,083 86
Net income from insurance business -1,733 2,810 -
Total income 43,043 59,339 138
Expenses 24,865 24,283 98
Goodwill, Bank Package I, severance payments 3,861 4,624 120
Profit before loan impairmt charges 14,317 30,432 213
Loan impairment charges 12,088 25,677 212
Profit before tax 2,229 4,755 213
Tax 1,193 3,042 255
Net profit for the year 1,036 1,713 165
Impairment charges and losses
DKr billion
Impairment charges and losses
0
2
4
6
8
10
4. kvt. 08 1. kvt. 09 2. kvt. 09 3. kvt. 09 4. kvt. 09
Impairment chargesActual losses
Q4 08 Q1 09 Q2 09 Q3 09 Q4 09
Impairment charges
-100
100
300
500
700
900
1100
Ba
ltik
um
Ma
rket
s
Irla
nd
No
rdir
lan
d
Fin
lan
d
Da
nm
ark
Øvr
ige
No
rge
Sve
rige
Dk
Ca
pit
al
bp
Bal
tics
Irel
and
Mar
kets
Nor
ther
nIr
elan
d
Fin
lan
d
Den
mar
k
Oth
er
Nor
way
Sw
eden
Cap
ital
DKr million 2008 2009 Index
Net interest income 27,005 27,524 102
Net fee income 8,110 7,678 95
Net trading income 6,076 18,244 300
Other income 3,585 3,083 86
Net income from insurance business -1,733 2,810 -
Total income 43,043 59,339 138
Expenses 24,865 24,283 98
Goodwill, Bank Package I, severance payments 3,861 4,624 120
Profit before loan impairmt charges 14,317 30,432 213
Loan impairment charges 12,088 25,677 212
Profit before tax 2,229 4,755 213
Tax 1,193 3,042 255
Net profit for the year 1,036 1,713 165
Tax
960
834
9926
3332
4. k
v. 2
00
8
Æn
dri
ng
i ud
lån
Kre
dit
kval
itet
Nye
par
amet
re
Mar
ked
s-og
m
odp
arts
risi
ko
4. k
v. 2
00
9
Reduction of risk-weighted assets
Trend in risk-weighted assets (DKr billion)Q
4 2
00
8
Cha
nge
in le
ndin
g
Cre
dit q
ualit
y
New
par
amet
ers
Mar
keta
nd
coun
terp
arty
risk
s
Q4
20
09
0
5
10
15
20
Tier I capital (%) Solvency (%)
2008 2009
+4.9%
+4.8%
%
Solvency
Bank Packages
BILL
Bank Package I 4.1
Interest on hybridcapital (net – 5 yrs) 12.5
Total 16.6 billion
-150
0
150
300
450
1 u
ge
2 u
ger
3 u
ger
1 m
dr
2 m
dr
3 m
dr
4 m
dr
5 m
dr
6 m
dr
9 m
dr
12
mdr
Liquidity- considerable improvement in 2009 especially throughraising of loans with terms up to 10 years
30
End-2009End-2008
End-Q3 2009
DKr billion
1 w
eek
2 w
eeks
3 w
eeks
1 m
onth
2 m
onth
s
3 m
onth
s
4 m
onth
s
5 m
onth
s
6 m
onth
s
9 m
onth
s
12 m
onth
s
Danske Bank is competitive
Source: www.pengepriser.dk
Digital Banking
danskebank.dk/panel • Text “panel” to 1969
Profit DKr millionNet profit for the year 1,001Equity method reserve 3,012Retained earnings ÷2,011
Allocation of profits
0
50
100
150
200
ma
r. 2
00
5
jun
. 20
05
sep
. 20
05
dec
. 20
05
ma
r. 2
00
6
jun
. 20
06
sep
. 20
06
dec
. 20
06
ma
r. 2
00
7
jun
. 20
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sep
. 20
07
dec
. 20
07
ma
r. 2
00
8
jun
. 20
08
sep
. 20
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dec
. 20
08
ma
r. 2
00
9
jun
. 20
09
sep
. 20
09
dec
. 20
09
ma
r. 2
01
0
Danske Bank shares
Index01-03-2005 =100
Danske Bank
MSCI Europe
Banks
Mar
. 20
05
Jun
. 20
05
Sep
. 20
05
Dec
. 20
05
Mar
. 20
06
Jun
. 20
06
Sep
. 20
06
Dec
. 20
06
Mar
. 20
07
Jun
. 20
07
Sep
. 20
07
Dec
. 20
07
Mar
. 20
08
Jun
. 20
08
Sep
. 20
08
Dec
. 20
08
Mar
. 20
09
Jun
. 20
09
Sep
. 20
09
Dec
. 20
09
Mar
. 20
10
Outlook for 2010
Rising unemployment
GDP growth in most of our markets
Results at Danske Markets and Danske Capital depend on trends in the financial markets
Lower costs than in 2009
High level of IT investments
Lower impairment charges than in 2009, but still high level
0
3000
6000
9000
12000
15000
18000
21000
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
Results and tax
DKr million
Profit before tax
Tax
Item a: Submission of the annualreport for adoption