Press release: Danske Bank reports net profit of DKr1.7bn (€0.2bn)
Danske Bank today announced its financial results for 2009. The announcement and the annual report can be viewed at at www.danskebank.com/reports. Highlights are shown below:
- The Danske Bank Group posted a net profit of DKr1.7bn (€0.2bn) for 2009. This result is in the aggregate slightly better than expected and is acceptable given the difficult macroeconomic conditions.
- Total income was at a very satisfactory level of DKr59.3bn (€8.0bn) - 38% above 2008. The gains were generated by exceptionally high net trading income, particularly in the first half-year, higher net income from insurance business and higher net interest income.
- Expenses, excluding goodwill impairment charges, were as expected. During the year, the Group tightened cost control. Expenses of DKr28.9bn (€3.9bn) included goodwill impairment charges, mainly against Banking Activities Baltics, of DKr1.5bn (€0.2bn) and a guarantee commission of DKr2.5bn (€0.3bn) to the Danish state for the guarantee scheme (Bank Package I).
- At DKr25.7bn (€3.5bn), the level of loan impairment charges remained high, reflecting the economic crisis. Loan impairment charges showed a declining trend throughout the year, however. Charges against facilities to small and medium-sized enterprises amounted to DKr13.3bn (€1.8bn), charges against facilities to retail customers to DKr4.1bn (€0.6bn), and charges against facilities to financial counterparties to DKr5.5bn (€0.7bn), of which Bank Package I accounted for DKr1.6bn (€0.2bn).
- Expenses for Danske Bank’s participation in Bank Package I totalled DKr4.1bn (€0.6bn) in 2009 and comprised a guarantee commission and impairment charges.
- At year-end, the capital base and solvency were stronger than ever with a massive capital buffer of DKr64bn (€8.6bn) over the statutory requirement.
- During the year, the tier 1 capital and solvency ratios rose from 9.2% and 13.0% to 14.1% and 17.8% through the raising of DKr26bn (€3.5bn) in the form of hybrid capital from the Danish state, a strengthening of tier 1 capital from earnings for the year of DKr4.2bn (€0.6bn) and a reduction of total assets of DKr445bn (€59.9bn).
- The Group accommodated its creditworthy customers throughout the year. In Denmark, new lending, including renewals, totalled DKr75bn (€10.1bn), with corporate customers accounting for DKr45bn (€6.1bn) and retail customers for DKr30bn (€4.0bn).
- The Group expects 2010 to be another challenging year for the financial sector. Even so, economic indicators now point to beginning stabilisation, and 2010 is likely to see modest economic growth. Unemployment will continue to rise, however. Loan impairment charges are likely to remain high, although lower than in 2009.
"We have come out of the worst crisis year for decades with a positive result that is better than last year,” says Peter Straarup, Chairman of the Executive Board. “So all in all, our 2009 result is better than what could have been feared at the beginning of the year. The year 2010 will also be a challenging one, but our capital position is stronger than ever, and we are well prepared to withstand losses and to meet customer demand for credit."
Thursday, February 4, from 11.00am CET:
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: www.danskebank.com/interactiveaccounts.
The Annual Report 2009 will be presented at a press conference at 11.00am CET.
You can also follow a live webcast of the press conference (in Danish with English subtitles and presentation) and the webcast will be available on demand about two hours after the press meeting. Only the presentation of the annual report will be webcasted, not the following Q&A's.
Presentation and transcript
Presentation and a transcript of the speech can be downloaded just after the press meeting has ended.