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Danske Bank to write down goodwill in 2015 accounts

Company Announcement No. 50/2015

On the basis of the results of its ordinary goodwill impairment testing, Danske Bank has decided to make an impairment on goodwill and other intangible assets of about DKK 4.5 billion before tax in its 2015 annual report. Shareholders’ equity will be reduced by about DKK 4.4 billion as the tax effect amounts to DKK 0.1 billion. At 30 September 2015, shareholders’ equity amounted to DKK 150.1 billion, total goodwill to DKK 9.5 billion and total other intangible assets to DKK 1.6 billion.

The impairments relate to Danske Bank’s activities in Finland and Northern Ireland and are made mainly because the assumptions applied for impairment testing include lower interest rates long-term and increased capital allocated to our Finnish and Northern Irish activities.

“The goodwill impairments are based on long-term assessments and do not relate to expected short-term developments at the units operating in Finland and Northern Ireland. Further, the impairments are of a technical nature and will not affect our regulatory capital or liquidity,” says Henrik Ramlau-Hansen, CFO of Danske Bank.

Excluding the effect of the impairments, Danske Bank confirms its guidance for 2015 full-year net profit of above DKK 16 billion as stated in the interim report for the first nine months of 2015.

Danske Bank

Kenni Leth, Head of Press Relations, tel. +45 45 14 14 00