Danske Bank (DANSKE) AGM 2016 summary

Opening remarks and agenda

• The meeting was declared lawfully convened with a quorum; 53% of share capital was represented, including advance votes and proxies.

• The first three agenda items were handled jointly; electronic voting was available for resolutions requiring a vote.

Financial performance review

• FY2015 net profit before goodwill impairment was DKK 17.7bn, with 11.6% ROE; goodwill impairment was DKK 4.6bn for Finland and Northern Ireland.

• Total income was DKK 44.2bn; net interest income fell 4%, while trading income rose 4% and net fee income rose 9%. Expenses fell 4% to DKK 21.8bn.

• Core impairment charges were DKK 57m; 2015 financial targets were met. Year-end total capital ratio was 21% and Tier 1 ratio 16.1%, above targets of 17% and 13%.

• Ratings improved: Moody’s raised its rating from A3 to A2, S&P revised its outlook to stable on its A rating, and Fitch rated the bank A with a stable outlook.

• 2016 net profit was expected to match FY2015 before goodwill impairment, supported by moderate volume growth, sound fee trends, lower loan losses and continued cost optimization.

Board and executive committee updates

• Hilde Merete Tonne and Lars-Erik Brenøe were elected to the board as Jim Hagemann Snabe and Lars Förberg wished to resign.

• Jacob Aarup-Andersen was appointed CFO from 1 April 2016, succeeding Henrik Ramlau-Hansen, who planned to leave at month-end after nearly 30 years; a Wealth Management head was also being sought.

• Executive remuneration was considered appropriate; fixed salaries were to remain unchanged in 2016, with a future increase in variable pay under consideration.