Danske Bank (DANSKE) investor relations material

Executive summary

• Net profit for the first nine months of 2025 was DKK 16.7 billion, with a return on equity of 12.9% for the period and 12.6% for Q3, reflecting solid financial performance, strategic execution, and disciplined cost management.

• Profit was down 5% year-over-year, mainly due to higher loan impairments and lower insurance income, partially offset by higher fee and trading income.

• Lending and deposit volumes increased by 4% and 3% year-over-year, with strong momentum in corporate lending and retail deposit growth.

• Assets under management reached a record DKK 954 billion, driven by robust net sales and investment performance.

• Credit quality remained strong, with a loan loss ratio of 2 basis points and net reversals in Q3.

Financial highlights

• Net profit for the group was DKK 16.7 billion, with a return on equity of 12.9% and a cost-to-income ratio of 45.6%.

• Net interest income remained stable year-over-year, supported by lending and deposit growth and structural deposit hedge.

• Fee income grew 2% year-over-year, mainly from higher customer activity and increased assets under management.

• Net trading income rose 12% year-over-year, but was down 27% quarter-on-quarter due to a Q2 one-off and valuation adjustments.

• Operating expenses were flat year-over-year and down 1% quarter-on-quarter, with cost discipline offsetting higher digital investments.

Outlook and guidance

• Net profit for 2025 is expected at the upper end of DKK 21–23 billion, driven by resilient NII and improved loan impairment outlook.

• Operating expenses are expected to be up to DKK 26 billion for the full year.

• Loan impairment charges guidance lowered to no more than DKK 0.6 billion for the year, reflecting strong credit quality.

• Total income for 2025 expected to be slightly lower than 2024, with resilient net interest income and growth in fee income.

• Financial targets for 2026 remain unchanged.