Danske Bank (DANSKE) Investor presentation summary

Financial performance and outlook

• Q3 net profit DKK 6.4bn, ROE 15.1%, and cost/income ratio 43.9%; core income rose 9% YoY.

• 9M total income DKK 43.9bn, up 5% YoY; net profit DKK 18.3bn, up 9%.

• 9M net interest income rose 4% YoY and net fee income rose 14%; Q3 net interest income increased 3% QoQ.

• FY2026 net profit guidance narrowed from DKK 23–25bn to DKK 24–25bn; total income expected somewhat above DKK 59bn and impairments no more than DKK 0.6bn.

• FY2026 expenses guided at DKK 26–26.5bn, with cost/income below 45% and ROE above 14%.

Forward '28 strategy

• 2028 targets: ROE above 14.5%, total income around DKK 63bn, cost/income at or below 43%, and CET1 around 16%.

• Ordinary dividend payout policy revised to 60–70%; total dividend potential above DKK 55bn in 2026–28, with further buybacks subject to capital, growth, and market conditions.

• Growth focus spans Large Corporates & Institutions, mid-corporates, Private Banking, and affluent customers, alongside deeper relationships and higher ancillary income.

• 2028 targets include handling over 50% of customer inquiries with AI and using GenAI insights in 75% of eligible credit cases.

Capital, funding and liquidity

• CET1 ratio reached 17.2% in Q3; the 2028 target is around 16%, with a planned 150–200bp buffer to requirements.

• Annualised CET1 capital generation exceeded 275bp; available distributable items were above DKK 100bn.

• Liquidity coverage ratio was 163%; Q3 deposits were DKK 1,140bn, and long-term funding issuance reached DKK 86bn against a 2026 plan of DKK 90–110bn.

• Excess MREL funds were DKK 47bn, including DKK 35bn of excess subordinated MREL funds.