Danske Bank (DANSKE) Investor presentation summary

Strategic direction and market position

• Focused Nordic bank with strong regional roots and market leadership in Denmark, and challenger positions in Sweden and Norway, with diversified lending and deposit bases across the Nordics.

• Forward '28 strategy targets >14.5% ROE, ~16% CET1 ratio, ≤43% cost-to-income, and DKK ~63bn total income by 2028, with ambitions for further capital distribution and share buybacks.

• Growth driven by momentum in large corporates, mid-corporates, private banking, and affluent segments, with a focus on deepening customer relationships and scaling AI solutions.

• Strategic sustainability focus aims to mobilise DKK 100bn for climate and energy transition by 2028, with integrated ESG and financial crime prevention agendas.

Financial performance and outlook

• Q2 2026 net profit of DKK 6.2bn, ROE 14.8%, and cost/income ratio at 43%, with core income up 7% YoY and strong cost discipline.

• Net profit outlook for 2026 raised to DKK 23-25bn, supported by higher total income from increased commercial activity and policy rates.

• Total income for H1 2026 at DKK 29.1bn, with net interest income up 3% YoY, fee income up 13% YoY, and trading income impacted by market volatility.

• Operating expenses in line with guidance, with FY2026 cost outlook at DKK 26-26.5bn and cost/income ratio expected below 45%.

Balance sheet, capital, and funding

• CET1 ratio at 17.0% with strong capital generation and a prudent buffer above regulatory requirements; capital plan targets ~16% CET1 by 2028.

• Liquidity coverage ratio at 159%, diversified deposit base, and sound funding structure with DKK 67bn issued in long-term wholesale funding by Q2 2026.

• Fully compliant with MREL and subordination requirements, with excess MREL funds of DKK 35bn.

• Danish mortgage system provides structural deposit surplus and robust covered bond universe with high credit ratings.