Announcement of
financial results 2012
Announcement of  financial results 2012

February 7, 2013

Press release: Danske Bank reports net profit of DKK 4.7 billion (EUR 636.6 million) for 2012

Danske Bank today announced its financial results for 2012. The announcement and the annual report can be viewed at www.danskebank.com/reports. Highlights are shown below.

  • 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."


Danske Bank


Contacts
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

Press conference
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).

Conference call
Danske Bank will hold a conference call at 3.00pm CET.
You can follow a live webcast of the conference call.

Online reports
View Danske Bank’s online reports at: www.danskebank.com/onlinereport.
 

 

INCOME STATEMENT

 

 

Index

 

 

 

(DKK millions)

2012

2011

12/11

2010

2009

2008

Net interest income

24,788

23,537

105

23,843

27,524

27,005

Net fee income

8,782

8,298

106

8,699

7,678

8,110

Net trading income

8,901

7,325

122

7,707

18,244

6,076

Other income

2,951

3,648

81

3,882

3,083

3,585

Net income from insurance business

2,263

569

-

2,146

2,810

-1,733

Total income

47,685

43,377

110

46,277

59,339

43,043

Expenses

26,588

25,987

102

26,010

28,907

28,726

Profit before loan impairment charges

21,097

17,390

121

20,267

30,432

14,317

Loan impairment charges

12,529

13,185

95

13,817

25,677

12,088

Profit before tax

8,568

4,205

204

6,450

4,755

2,229

Tax

3,819

2,482

154

2,786

3,042

1,193

Net profit for the year

4,749

1,723

276

3,664

1,713

1,036

Attributable to non-controlling interests

4

11

36

3

-14

25

 

BALANCE SHEET (END OF YEAR)

 

 

 

 

 

 

(DKK millions)

 

 

 

 

 

 

Due from credit institutions and central banks

113,657

74,041

154

89,619

109,236

79,795

Repo loans

307,177

256,027

120

306,962

239,183

369,999

Loans and advances

1,674,390

1,698,025

99

1,679,965

1,669,552

1,785,323

Trading portfolio assets

812,927

909,755

89

641,993

620,052

860,788

Investment securities

107,724

109,264

99

118,556

118,979

140,793

Assets under insurance contracts

241,343

230,668

105

217,515

196,944

181,259

Other assets

227,963

146,623

155

159,276

144,531

126,017

Total assets

3,485,181

3,424,403

102

3,213,886

3,098,477

3,543,974

 

 

 

 

 

 

 

Due to credit institutions and central banks

241,241

177,592

136

175,825

184,653

434,334

Repo deposits

359,276

269,515

133

202,603

182,164

202,785

Deposits

788,507

795,275

99

800,613

803,932

800,297

Bonds issued by Realkredit Danmark

614,325

557,699

110

555,486

517,055

479,534

Other issued bonds

340,005

366,920

93

450,219

514,601

526,606

Trading portfolio liabilities

531,860

697,913

76

478,386

380,567

623,290

Liabilities under insurance contracts

266,938

248,966

107

238,132

223,876

210,988

Other liabilities

137,010

117,340

117

130,544

110,968

110,033

Subordinated debt

67,785

67,328

101

77,336

80,002

57,860

Shareholders' equity

138,234

125,855

110

104,742

100,659

98,247

Total liabilities and equity

3,485,181

3,424,403

102

3,213,886

3,098,477

3,543,974

 

RATIOS AND KEY FIGURES

 

 

 

 

 

 

Earnings per share (DKK)

5.1

1.9

 

4.9

2.3

1.4

Diluted earnings per share (DKK)

5.1

1.9

 

4.9

2.3

1.4

Return on average shareholders' equity (%)

3.7

1.4

 

3.6

1.7

1.0

Cost/income ratio (%)

55.8

59.9

 

56.2

48.7

66.7

Total capital ratio (%)

21.3

17.9

 

17.7

17.8

13.0

Core tier 1 capital ratio (%)

14.5

11.8

 

10.1

9.5

8.1

Share price (end of year) (DKK)

95.7

73.0

 

132.3

109.2

48.1

Book value per share (DKK)

137.9

135.7

 

140.0

134.8

131.7

Full-time-equivalent staff (end of year)

20,308

21,320

 

21,522

22,093

23,624

 


 

statement of capital

 

 

Index

 

 

 

(DKK millions)

2012

2011

12/11

2010

2009

2008

Capital base and total capital ratio

 

 

 

 

 

 

Shareholders' equity

138,234

125,855

110

104,742

100,659

98,247

Revaluation of domicile property at fair value

1,048

1,281

82

1,253

1,275

1,410

Pension obligations at fair value

-235

348

-

-73

-1,155

486

Tax effect

-57

-58

98

2

262

-163

Reserves in undertakings consolidated on a pro rata basis

3,002

2,991

100

3,002

2,984

2,979

Shareholders' equity calculated in accordance with the rules of the Danish FSA

141,992

130,417

109

108,926

104,025

102,959

Expected dividends

-

-

-

-

-

-

Intangible assets of banking operations

-21,279

-22,127

96

-22,666

-23,140

-25,204

Deferred tax assets

-1,389

-1,600

87

-1,548

-2,223

-971

Deferred tax on intangible assets

642

923

70

1,069

1,229

1,433

Revaluation of domicile property

-642

-743

86

-675

-753

-924

Other statutory deductions

-227

-44

516

-

-

-

Core tier 1 capital

119,097

106,826

111

85,106

79,138

77,293

Hybrid capital

40,248

42,366

95

42,208

41,099

13,640

Difference between expected losses and impairment charges

-

-

-

-

-

-

Statutory deduction for insurance subsidiaries

-4,292

-4,175

103

-2,422

-2,308

-2,555

Other statutory deductions

-19

-

-

-55

-

-31

Tier 1 capital

155,034

145,017

107

124,837

117,929

88,347

Subordinated debt, excluding hybrid capital

23,009

20,480

112

26,710

31,969

35,023

Revaluation of domicile property

-

-

-

-

-

1,120

Difference between expected losses and impairment charges

642

743

86

675

753

924

Statutory deduction for insurance subsidiaries

-

-

-

-

-

2,036

Other statutory deductions

-4,292

-4,175

103

-2422

-2,308

-2,555

Subordinated debt, excluding hybrid capital

-19

-

-

-55

-

-31

Capital base

174,374

162,065

108

149,745

148,343

124,864

 

-

 

 

 

 

 

Risk-weighted assets

819,436

905,979

90

844,209

834,242

960,079

 

 

 

 

 

 

 

Core tier 1 capital ratio (%)

14.5

11.8

 

10.1

9.5

8.1

Tier 1 capital ratio (%)

18.9

16.0

 

14.8

14.1

9.2

Total capital ratio (%)

21.3

17.9

 

17.7

17.8

13.0

 

INCOME STATEMENT

Q4

Q4

Index

Q3

Q2

Q1

(DKK millions)

2012

2011

12/11

2012

2012

2012

Net interest income

6,200

6,182

100

6,198

6,218

6,172

Net fee income

2,653

2,218

120

2,116

2,026

1,987

Net trading income

1,432

1,638

87

1,785

2,462

3,222

Other income

628

849

74

689

846

788

Net income from insurance business

953

976

98

427

699

184

Total income

11,866

11,863

100

11,215

12,251

12,353

Expenses

6,990

6,459

108

6,116

6,632

6,850

Profit before loan impairment charges

4,876

5,404

90

5,099

5,619

5,503

Loan impairment charges

2,619

4,789

55

2,879

3,109

3,922

Profit before tax

2,257

615

367

2,220

2,510

1,581

Tax

1,111

415

268

903

1,007

798

Net profit for the year

1,146

200

573

1,317

1,503

783

Attributable to non-controlling interests

-

-1

-

5

-1

-