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Announcement of financial results for the first nine months of 2010

Press release: Net profit of DKK 2.6 billion (EUR 348 million) for the first nine months of 2010

Danske Bank today announced its financial results for the first nine months of 2010. The interim report is available at

Highlights are shown below:

  • The Danske Bank Group posted a net profit of DKK 2.6 billion (EUR 348 million) for the period. The global economic recovery, although fragile, benefited several of the Group’s markets, and this had a positive effect on results.

  • At DKK 35.4 billion (EUR 4,749 million), total income declined 23% from the year-earlier level. The decline should be seen in the light of the extraordinarily high net trading income in the first nine months of 2009.

  • Expenses were down 10%. Excluding goodwill impairment charges, expenses declined 4%. Expenses included the guarantee commission of DKK 1.9 billion (EUR 252 million) paid to the Danish state under the guarantee scheme (Bank Package I). The expiry of the scheme on 30 September 2010 will in itself reduce Danske Bank’s expenses markedly.

  • The Group launched a number of group-wide initiatives to improve distribution channels and further streamline the organisation. In support of these initiatives, the Group is undertaking an extraordinarily large IT investment programme in 2010 and 2011.

  • At almost half the year-earlier level, loan impairment charges totalled DKK 10.8 billion (EUR 1,454 million) and continued their downward trend since the fourth quarter of 2008. The Danish unit in particular recorded lower charges. The difficult market conditions in Ireland persisted, though.

  • Charges against facilities to corporate customers amounted to DKK 7.4 billion (EUR 999 million), with small and medium-sized enterprises accounting for DKK 6.7 billion (EUR 906 million). Charges against facilities to financial counterparties amounted to DKK 1.0 billion (EUR 134 million), and charges against facilities to retail customers amounted to DKK 2.4 billion (EUR 320 million). Charges made under Bank Package I accounted for DKK 1.4 billion (EUR 187 million) of loan impairment charges.

  • Total lending matched the level at the end of 2009. In Denmark, new lending to corporate and retail customers, excluding repo loans, amounted to DKK 18.8 billion (EUR 2,519 million) and DKK 21.1 billion (EUR 2,840 million), respectively.

  • At 30 September 2010, the tier 1 capital and solvency ratios were 14.4% and 17.4%, respectively. The EU-wide stress tests showed that, even in the most severe scenario, the Group has a capital buffer of more than DKK 40 billion (EUR 5,368 million).

  • In the first nine months of 2010, Danske Bank issued bonds worth DKK 20 billion (EUR 2,684 million) with maturities of up to five years. Danske Bank has not issued state-guaranteed bonds since summer 2009. Danske Bank also issued covered bonds worth DKK 20 billion (EUR 2,684 million) with maturities from seven to fifteen years.

  • The stabilisation of macroeconomic conditions is expected to continue for the remainder of the year. The recovery remains fragile, though. Loan impairment charges are likely to remain high in 2010, although considerably lower than in 2009.


"Our results show progress. We have doubled our net profit to DKK 2.6 billion (EUR 348 million) compared with the same period last year,” says Peter Straarup, Chairman of the Executive Board. “Our business units benefit from the improving business environment. In Denmark, our largest market, we saw substantially lower impairment charges. Charges in Ireland will remain high, though."

Danske Bank


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

Danske Bank will hold a conference call on 2 November 2010 at 2.30pm CET.
The conference call will be webcast live at

Danske Bank’s financial statements are available online at