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Interim reports first nine months of 2008

Press release: Net profit of DKr6,921m (€929m) for the first nine months of 2008

Danske Bank has today announced its financial results for the first nine months of 2008. The full interim report is available at Highlights are shown below:

  • At DKr6,921m (€929m), Danske Bank Group’s net profit declined 39% from DKr11,306m (€1,517m) in the first nine months of 2007. The results for the first nine months of 2008 were severely adversely affected by the extreme turbulence in the capital markets and the general economic slowdown, as is the outlook for the remainder of the year.
  • The turbulence in the financial markets affected the profit for the period, particularly of the Group’s market-related units – Danske Markets, Danske Capital and Danica Pension. Together they recorded a decline in pre-tax profit of DKr5.1bn (€0.7bn).
  • The results generated by Danske Bank Group’s main source of income – Banking Activities – were robust, but slightly lower than expected. In the circumstances, the results  were satisfactory.
  • The 9% rise in net interest income to DKr19,640m (€2,636m) was owing to good, albeit declining, growth in lending and clearly improved lending margins.
  • Expenses grew 1%, which was better than expected.
  • The Group expects profit before loan impairment charges for the full year, excluding net trading income and net income from insurance business, to be 0-5% higher than the figure posted for 2007. At the presentation of the interim report for the first half of 2008, the estimate was 10-20%. The change is attributable primarily to the expenses related to the Group’s participation in the state guarantee scheme and declining fee income.
  • Loan impairment charges amounted to DKr2,889m (€388m), against DKr260m (€35m) in the first nine months of 2007, and the level for the full year is now expected to be high.
  • The core (tier 1) capital and solvency ratios stood at 10.0% and 13.9%, respectively, at the end of the third quarter of 2008, reflecting Danske Bank Group’s strong capital base.

Commenting on the results, Danske Bank’s chief executive, Peter Straarup, said: "Danske Bank has a strong foundation. Although times are extremely difficult, our core banking business is robust, and earnings are solid. The negative effects come from our capital market activities. Our well-diversified business model and strong capital and liquidity base lay a solid foundation for earnings growth."

Danske Bank


Peter Straarup, Chairman of the Executive Board, tel. +45 45 14 60 01
Tonny Thierry Andersen, Chief Financial Officer, tel. +45 45 14 07 07
Martin Gottlob, Head of Investor Relations, tel. +45 45 14 07 92

View Danske Bank’s interactive financial statements at:

Danske Bank will hold a conference call on October 28, 2008. The conference call is scheduled for 2.30pm CET and will be transmitted live on