Copenhagen, 31 January Press conference. Annual Report 2006

Transcript

1 Copenhagen, 31 January 2007 Press conference Annual Report 2006

2 2006 IN BRIEF 2006 in brief Highest earnings in the Groups history Net profit after tax DKr bn % Healthy economy Growth in banking activities higher than expected Big demand for loans & investment products

3 2006 IN BRIEF % 8 Strong growth on all our markets Good foundation for business growth in 2007 GDP growth 2007E 4 Eurozone, avg. 0 Baltics IE NO FI ES SE UK DK NL CH FR DE IT Source: Danske Research. 3

4 2006 IN BRIEF Northern Bank and National Irish Bank - Positive development in 2006 Lending 12% Deposits 51% Packages ebanking 132% Lending 51% Deposits 1% Packages ebanking 115% 4

5 2006 IN BRIEF Sampo Bank Integration process has begun DKr m 1,600 Integration expenses 300 To be booked in To be booked in The four steps of the IT conversion To be booked in 2007 Phase I Analysis Phase II Construction Phase III Test and test conversion Phase IV Training & conversion Easter

6 2006 IN BRIEF Financial results for 2006 Net profit improved by 7% DKr m Index Income 34,708 37, Expenses 18,198 19, Profit bef. credit loss exp. 16,510 18, Credit loss expenses -1, Profit before tax 17,606 18, Tax 4,921 4, Net profit for the period 12,685 13, Dividend per share (DKr) Return on equity, p.a. (%)

7 BUSINESS DEVELOPMENTS Merger of Danske Bank and BG Bank (1) 7

8 BUSINESS DEVELOPMENTS Merger of Danske Bank and BG Bank (2) Customers Produkter Prices IT 8

9 BUSINESS DEVELOPMENTS Mergers of branches in close proximity 9

10 BUSINESS DEVELOPMENTS The new Danske Bank DK - Organised in 9 regions North Jutland * Central Jutland 431 branches 2.4m customers 1,000 ATMs East Jutland 24/7 service, 365 days a year North Zealand Copenhagen Greater Copenhagen South Jutland Funen South Zealand* 10

11 BUSINESS DEVELOPMENTS Online savings advice and fee overview - Increased transparency In Danske Netbank and on The English fee site will be updated in mid-february. 11

12 BUSINESS DEVELOPMENTS Corporate Social Responsibility Publication of the GroupsfirstCSR report 12

13 FINANCIAL ACCOUNTS Lending growth - Double-digit growth rates in all banking divisions % Retail Corporate Total Lending growth 2006/ Sweden DB BG RD NO SE NB NIB 13

14 FINANCIAL ACCOUNTS Banking Activities Danske Bank - High activity, but tough competition puts pressure on lending margins Lending 21% Net interest income 13% Income 10% Pre-tax profit Unchanged Sweden 14

15 FINANCIAL ACCOUNTS Banking Activities BG Bank - Solid growth, but price pressure on lending is evident Lending 18% Net interest income 11% Income 8% Pre-tax profit 12% Sweden 15

16 FINANCIAL ACCOUNTS Banking Activities Sweden - Strong growth continues; named Corporate Bank of the Year Sweden Lending 21% Net interest income 23% Income 25% Pre-tax profit 25% Sweden 16

17 FINANCIAL ACCOUNTS Banking Activities Norway - Rising business volume and outstanding earnings growth Lending 21% Net interest income 22% Income 31% Pre-tax profit 53% Sweden 17

18 FINANCIAL ACCOUNTS Banking Activities Northern Ireland - Solid growth in lending and earnings better than expected Lending 12% Net interest income DKr 1.7bn Income DKr 2.3bn Pre-tax profit DKr -104m Sweden 18

19 FINANCIAL ACCOUNTS Banking Activities Ireland - Strong growth and earnings gains in H Gross Lending 51% Net interest income DKr 0.9bn Income DKr 1.1bn Pre-tax profit DKr 26m Sweden 19

20 FINANCIAL ACCOUNTS Realkredit Danmark - Robust earnings despite sharp drop in refinancing activity Nominal lending 8% Gross lending 35% Net interest income 6% Income 3% Pre-tax profit 2% Sweden 20

21 FINANCIAL ACCOUNTS Danske Markets - High earnings maintained Income 1% Trading activities 14% Investment portfolio 27% Pre-tax profit 2% Sweden 21

22 FINANCIAL ACCOUNTS Danica Pension - Growth in premiums and improved expense ratio Gross premiums 8% Return on investments 2.9% Net income 18% Expense ratio 6.7% Sweden 22

23 OUTLOOK FOR 2007 Outlook for Integration of Sampo Bank; business volume to remain high Assumptions! Healthy economic growth in primary markets continues! Lending volume remains high! Two interest hikes in 2007! Trend in capital markets uncertain! Result before credit loss incl. Sampo (pro forma) was DKr 20.7bn in 2006 Expectations 2007 will be another satisfactory year Rising net interest income and fee income Falling trading income Lower net income from insurance business Expenses increase 4%-6% Expenses ex Sampo increase 1%-3% Profit before credit loss expenses at 2006 level Modest credit loss expenses Pre-tax profit lower than in

24 Q&A SESSION Q&A session Please note that the Q&A session will not be webcasted 24