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Announcement of financial results for the first half of 2012

Net profit of DKK 2.3 billion (EUR 308 million) for the first half of 2012

Danske Bank today announced its financial results for the first half of 2012. The interim report is available at Highlights are shown below.

  • The Danske Bank Group posted a profit before tax of DKK 4.1 billion (EUR 550 million) for the first half of 2012. The net profit was DKK 2.3 billion (EUR 308 million), a 20% rise from the net profit in the first half of 2011 and generally in line with expectations.

  • Income totalled DKK 24.6 billion (EUR 3,310 million), up 6% from the level in the first half of 2011, mainly because of higher net interest income and net income from insurance business.

  • Net trading income remained solid, rising 5% from the level a year earlier.

  • Expenses were down 4% from the level in the first half of 2011, and the cost/income ratio fell from 60.5% to 54.8%.

  • Loan impairment charges increased from the level in the first half of 2011. Charges declined for the second consecutive quarter, however.

  • The charges related mainly to commercial property in Ireland and Northern Ireland, personal customers in Ireland and Denmark, and the shipping industry.

  • After being placed on negative outlook, Danske Bank saw its rating lowered by two rating agencies in the second quarter of 2012. The Group’s considerable liquidity buffers have countered the effects of the downgrades.

  • At the end of June 2012, the Group had, as planned, redeemed state-guaranteed bond issues for DKK 30 billion (EUR 3,971 million). The remainder of the state-guaranteed bond issues was redeemed in July 2012.

  • At 30 June 2012, the tier 1 capital and total capital ratios were 16.2% and 17.7%, respectively, against 16.0% and 17.9% at 31 December 2011.

  • The Group still expects earnings to remain low in 2012. Because of the economic climate, the outlook is subject to considerable uncertainty. Total impairment charges are likely to remain at the same high level as in 2011.

  • On 1 June 2012, the Group implemented organisational changes. The new organisation is the first step in implementing the Group’s new strategy, which is expected to be completed by the end of the third quarter of 2012. Financial reporting will reflect the new organisation beginning on 1 January 2013.

"These are our best results for a half year since the financial crisis hit in 2008", says Eivind Kolding, Chairman of the Executive Board. "Even though we are still far from reaching our goals and challenges lie ahead, the trend is positive. Net profit is up 20%, net interest income is rising despite low interest rate levels, and our new organisation, implemented 1 June this year, has got off to a good start. We have taken one more step in the right direction."

Contacts available on 7 August 2012 from 10am:
Eivind Kolding, 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

Press conference
The interim report for the first half of 2012 will be presented at a press conference at 10.00am CET. The press conference will be webcast live at, where the presentation material will also be available.

Conference call
Danske Bank will hold a conference call for analysts at 2.30pm CET.
The conference call will be webcast live at

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