- In 2012, Danske Bank Group posted a profit before tax of DKK 8.6 billion (EUR 1,148.5 million). The net profit was DKK 4.7 billion (EUR 636.6 million), up DKK 3.0 billion (EUR 405.6 million) from the level in 2011. The results were generally in line with expectations.
- Although interest rates were low in 2012, the Group’s earnings initiatives, improved conditions in the capital markets and cost-reduction initiatives led to improved financial results.
- Total income amounted to DKK 47.7 billion (EUR 6,391.7 million), up 10% from the year-earlier level.
- Improved conditions in the capital markets increased net trading income, which totalled DKK 8.9 billion (EUR 1,193.1 million), up 22% from the level in 2011. Trading volumes remained relatively high throughout the year.
- Expenses were up slightly from the level in 2011. The cost/income ratio improved from 59.9% in 2011 to 55.8% in 2012, however.
- Loan impairment charges were down 5%, and charges have fallen each quarter since the fourth quarter of 2011.The decline occurred mainly because of lower charges at our banking units in Denmark, Northern Ireland and Ireland (including Non-core Ireland).
- In the second quarter of 2012, Danske Bank’s credit ratings were lowered by Moody’s and Standard & Poor’s (S&P).
- In October 2012, the Group issued new shares for an amount of DKK 7.1 billion (EUR 951.69 million) to accelerate the achievement of its rating and capital targets. Shortly after the issue, S&P’s changed its credit rating outlook for Danske Bank from stable to positive.
- The core tier 1 capital and total capital ratios were solid at 14.5% and 21.3%, against 11.8% and 17.9% at the end of 2011.
- At the end of 2012, the Group’s Liquidity Coverage Ratio (LCR) was 121%, which is well above the requirement expected to take effect in 2015.
- The Board of Directors will recommend to the general meeting that no dividend be paid for 2012.
- The Group expects the net profit for 2013 to range from DKK 7.5-10.0 billion (EUR 1,005-1,340 million), corresponding to a return on equity of 5.5-7.0% after tax.
"These are our best financial results since 2007 and it is definitely a step in the right direction,” says Eivind Kolding, Chief Executive Officer.“The earnings initiatives we have implemented are starting to produce results. The earnings and cost-reduction initiatives, together with improved conditions in the capital markets, have brought about improvements in 2012. We are in full swing with the implementation of our strategy that will ensure we achieve our targets in 2015."
Contacts available on 7 February 2013 from 10.00am:
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
The Annual Report 2012 will be presented at a press conference at 10.00am CET.
You can follow a live webcast of the press conferene(in Danish with English subtitles and presentation).
Danske Bank will hold a conference call at 3.00pm CET.
You can follow a live webcast of the conference call.
View Danske Bank’s online reports at: www.danskebank.com/onlinereport.