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Announcement of financial results for the first nine months of 2012

Net profit of DKK 3.6 billion (EUR 483 million) for the first nine months of 2012

Danske Bank today announced its financial results for the first nine months of 2012. The interim report is available at Highlights are shown below.
  • In the first nine months of 2012, the Danske Bank Group posted a profit before tax of DKK 6.3 billion (EUR 847 million). The net profit was DKK 3.6 billion (EUR 483 million), up DKK 2.1 billion (EUR 279 million) from the level in the first nine months of 2011, and was generally in line with expectations.

  • Income totalled DKK 35.8 billion (EUR 4,804 million), up 14% from the level in the first nine months of 2011. The increase was the result of higher net interest income and improved trading income and income from insurance business.

  • Net trading income rose 31% from the level a year earlier as a result of improved conditions in the capital markets. The third quarter of 2011 in particular was adversely affected by the financial turmoil. Activity remained strong throughout the period.

  • Expenses amounted to DKK 19.6 billion (EUR 2,629 million) and matched the year-earlier level.

  • Loan impairment charges increased 18% from the level in the first nine months of 2011. Charges have fallen, however, in each quarter since the fourth quarter of 2011, when they were very high. The decline occurred mainly because of lower charges at Retail Banking Denmark.

  • Loan impairment charges related mainly to the commercial property segment at Non-core Ireland, the shipping segment and the personal customer segment at Retail Banking Denmark.

  • At 30 September 2012, the tier 1 capital and total capital ratios were 17.0% and 19.4%, respectively, against 16.0% and 17.9% at 31 December 2011.

  • The trend in credit quality will generally depend on economic conditions in the Group’s markets. Total impairment charges are likely to remain at the same high level as in 2011. The Group therefore expects the net profit for 2012 to be low.

"We are satisfied with the trend in our financial results compared with the same period last year", says Eivind Kolding, Chairman of the Executive Board. "Our initiatives to strengthen earnings are starting to produce results. And our new strategy, New Standards, which we present today, will provide the foundation for further improvement of our financial results and customer satisfaction."

New strategy – New Standards

Danske Bank Group’s business conditions have changed radically. The Group is now operating in a "new normal" environment. In response to the new challenges and opportunities, we are launching a new strategy: New Standards.

For more information about the Group’s new strategy, read company announcement No. 17/2012 issued today. Highlights are shown below:

  • With New Standards, the Group confirms its role as a universal bank in the regions in which we operate today, along with value-adding business within asset management (Danske Capital) and life insurance and pensions (Danica). The non-core Ireland portfolio will be divested.

  • New Standards entails clear segmentation choices and customer propositions focused on industry-leading advisory services. The Group will bring digitalisation and automation of banking to new levels.

  • A resolute focus on process optimisation and operational excellence is intended to significantly improve customer satisfaction and reduce costs. Combined with improved capital efficiency, this will ensure higher returns on a stable capital base. The risk profile will be conservative.

  • The Group intends to raise approximately DKK 7 billion (EUR 939 million) in new equity through an accelerated book building process to accelerate rating improvements and achievement of capital targets, strengthen the funding position and better align the Group with its Nordic peers.

  • The Group sets prudent capital targets to be achieved by the end of 2013: a total capital ratio of 17% and a core tier 1 capital ratio in excess of 13%.

  • New Standards aims to lift Danske Bank Group into the top half of its Nordic peer group by the end of 2015, with a return on equity above 12% after tax, assuming more normalised market conditions.

On 1 June 2012, the Group implemented a new organisation structured around three business units that operate across its geographical markets. On 15 November 2012, the Group will begin using the Danske Bank brand name for all its banking operations.

Financial reporting will reflect the new organisation from 1 January 2013.

Danske Bank

Contacts available on 30 October 2012 from 10am CET:
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 nine months 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 on 30 October at 09.00-09.30am CET and 2.30pm CET.
The conference call at 2.30pm CET will be webcast live at

Online reports

Danske Bank’s financial statements are available online at


Certain statements made in this announcement are forward looking statements. Any statements other than statements of historical fact, including without limitation those regarding Danske Bank’s financial condition, future operating performance, business strategy, management plans and objectives for future operations prospects for the group are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance, express or implied, by the forward looking statements. Factors that might cause forward looking statements to differ materially from actual results include, among other things, general economic and business factors, competition, and interest rate and currency fluctuations. These statements may not be regarded as a representation that anticipated events will occur or that expected objectives will be achieved. The information presented herein speaks only as of today’s date and neither Danske Bank nor the Joint Bookrunners assume any responsibility to update any of the forward looking statements contained herein.

This announcement includes references to a potential share offering by Danske Bank. These references do not constitute an offer to sell, or a solicitation of offers to purchase or subscribe for, securities in the United States or in any other jurisdiction.  The securities referred to herein have not been, and will not be, registered under the Securities Act of 1933, as amended (“Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.