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Interim report for the first quarter of 2013

Danske Bank reports net profit of DKK 1.5 billion (EUR 197.5 million) for the first quarter of 2013

Danske Bank today announced its financial results for the first quarter of 2013. The interim report is available at Highlights are shown below.
  • In the first quarter of 2013, Danske Bank posted a profit before tax from core activities of DKK 2.8 billion (EUR 371 million), an increase of 9% from the year-earlier level. The net profit was DKK 1.5 billion (EUR 197.5 million), up DKK 0.7 billion (EUR 94 million). The results were lower than expected.

  • Total income amounted to DKK 10.1 billion (EUR 1,359 million), down from DKK 11.8 billion (EUR 1,584 million) a year earlier. The main reason for the decline was a fall in net interest income and net trading income. Net trading income decreased because of lower activity in the first quarter of 2013 and extraordinarily high income in the first quarter of 2012.

  • Net income from insurance business rose DKK 0.2 billion (EUR 45.8 million). The booking of the risk allowance had a positive impact.

  • Expenses fell 7%, mainly because year-earlier expenses included a write-down related to the Sampo Bank brand name.

  • Core impairments were down 50% year on year. The decline came mainly from significantly lower impairments at Personal Banking and Business Banking.

  • The Non-core business unit saw a significant improvement in profit before tax as a result of a large drop in impairments, particularly impairments on commercial property customers in Ireland.

  • Total lending and deposits largely matched the levels at the end of 2012.

  • The core tier 1 capital and total capital ratios were solid at 15.1% and 21.6%, against 12.0% and 17.6% a year earlier. The share capital increase in October 2012 raised the core tier 1 capital ratio by 0.9 of a percentage point.

  • The return on equity improved to 4.3% p.a.

  • Danske Bank maintains its overall guidance for 2013 given in Annual Report 2012, that is, a net profit in the range of DKK 7.5-10 billion (EUR 1,005-1,340 million). Although the year got off to a slow start in the first quarter with low interest rates and lower lending and trading activity, the initiated and planned management actions are expected to reduce the impact.

"Our strategy implementation is progressing and being executed throughout the organisation," says Eivind Kolding, Chief Executive Officer. "We have implemented management actions in all business units to improve profitability, and during the coming quarters we will continue to work on actions to enhance customer focus and satisfaction and help us reach our long-term financial goals.

In the first quarter of 2013, we saw a 50% reduction in core impairments, and expenses are also on track. Income is not satisfactory, however, and the net profit for the first quarter therefore does not live up to our expectations."

Danske Bank

Eivind Kolding, Chief Executive Officer, tel. +45 45 14 60 01
Henrik Ramlau-Hansen, Head of Group Finance & Legal, tel. +45 45 14 06 66

Conference call
Danske Bank will hold a conference call on 2 May 2013 at 2.30pm CET.
You can follow a live webcast of the press conference (in Danish with English subtitles and presentation).

Danske Bank’s financial statements are available online at