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Announcement of financial results for the first nine months of 2011

Net profit of DKK 1.5 billion (EUR 205 million) for the first nine months of 2011

Danske Bank today announced its financial results for the first nine months of 2011. The interim report is available at Highlights are shown below.

  • The Danske Bank Group posted a profit before tax of DKK 3.6 billion (EUR 482 million) for the first nine months of 2011. The net profit was DKK 1.5 billion (EUR 205 million). Results were adversely affected by low interest rates, low economic growth and turbulent capital markets.

  • Total income was DKK 31.5 billion (EUR 4,235 million), down 11% from the income in the first nine months of 2010, mainly because of lower net trading income and a loss on the insurance business.

  • Expenses remained at the year-earlier level.

  • In order to ensure the Group’s future earnings capacity, the Group is launching a three-year cost-savings programme that will reduce expenses by 10% or about DKK 2 billion (EUR 269 million) in the 2012-14 period. The cost-savings programme includes a headcount reduction of about 2,000 employees over the period. The Group expects that a substantial number of the reductions can be made without redundancies, provided that attrition and retirements at the Group remain at the usual levels.

  • Loan impairment charges totalled DKK 8.4 billion (EUR 1,128 million), down 23% from the level in the first nine months of 2010. The fall reflected improved conditions in several markets, with the most notable fall in charges in Denmark and the Baltics. The difficult market conditions in Ireland and Northern Ireland persisted.

  • Charges against facilities to personal customers amounted to DKK 1.1 billion (EUR 145 million), and charges against facilities to business customers to DKK 8.2 billion (EUR 1,109 million), with small and medium-sized enterprises accounting for DKK 6.3 billion (EUR 846 million). Charges against facilities to financial counterparties saw a net reversal of DKK 0.9 billion (EUR 127 million).

  • Lending and deposits matched the levels at the end of 2010. In Denmark, new lending, excluding repo loans, came to DKK 34.8 billion (EUR 4,676 million). This amount included lending to personal customers of DKK 15.4 billion (EUR 2,069 million).

  • At 30 September 2011, the tier 1 capital and total capital ratios were solid at 16.0% and 18.0%, respectively, against 14.8% and 17.7% at the end of 2010. The core tier 1 capital ratio was 11.8%, against 10.1% at the end of 2010.

  • In the first nine months of 2011, the Group issued covered bonds and senior debt for a total of DKK 48.6 billion (EUR 6,526 million). The Group has met the objectives set out in the long-term funding plan for 2011.
  • The global economy remains very fragile, and growth rates in the Western world are expected to be low in the remainder of 2011. Structural challenges in the economies of southern Europe and Ireland and a heavy budget deficit in the US are constraining economic growth and affecting the stability of the financial markets. These developments could contribute to making the Group’s loan impairment charges higher in the fourth quarter than in the third quarter, but the figure for the full year is still expected to be lower than the 2010 figure.

"Our third-quarter results suffered from the intensified financial turmoil," says Peter Straarup, Chairman of the Executive Board. "Results are under pressure because of the financial crisis, new regulation and high funding costs. To improve earnings, we focus on our expenses. The Group aims to reduce operating expenses by 10% from 2012 to 2014. The Group has strengthened its capital base and liquidity position considerably in the past couple of years, and Danske Bank remains one of the best-capitalised banks in Europe."

Executive management

  • Peter Straarup, Chairman of the Executive Board, reached the age of 60 this summer, and he wishes to retire in accordance with the terms of his employment contract. Consequently, the Board of Directors is initiating the process of finding a new chief executive officer. Peter Straarup will continue as CEO until his successor takes over.
  • Per Skovhus, member of the Executive Board, wishes to resign for personal reasons and will leave the Executive Board no later than 1 July 2012.

Danske Bank

Peter Straarup, Chairman of the Executive Board, tel. +45 45 14 60 01
Henrik Ramlau-Hansen, Chief Financial Officer, tel. +45 45 14 06 66
Martin Gottlob, Head of Investor Relations, tel. +45 45 14 07 92

Conference call
Danske Bank will hold a conference call on 1 November at 2.30pm CET
The conference call will be webcast live at

Online reports
Danske Bank’s financial statements are available online at