Danske Bank (DANSKE) Investor Update summary

Financial performance highlights

• Net profit increased 2% year-over-year to DKK 5.8bn, with resilient net interest income and improved fee trajectory despite market uncertainty.

• Return on equity reached 13.3%, surpassing the 2026 target of 13%.

• Lending and deposits grew by 5% and 8% year-over-year, respectively, reflecting strong customer and corporate activity.

• Cost discipline led to a 1% year-over-year and 6% quarter-over-quarter reduction in expenses, with a cost/income ratio of 45.2%.

• CET1 capital ratio improved to 18.4%, providing a 380bps buffer above requirements.

Segment performance

• Personal Customers saw a 6% year-over-year decline in total income due to divestment, but fee income grew 3% year-over-year, and lending in Denmark increased 11%.

• Business Customers achieved 1% year-over-year and 7% quarter-over-quarter total income growth, with lending up 3% year-over-year.

• Large Corporates & Institutions posted a 13% year-over-year increase in total income, driven by lending growth and strong fee income.

Income and cost drivers

• Net interest income remained resilient, supported by higher volumes and improved lending margins, with deposit hedges mitigating rate impacts.

• Fee income rose 8% year-over-year, led by strong corporate lending and investment fees, though quarter-over-quarter was impacted by seasonality.

• Trading income increased 15% year-over-year and 58% quarter-over-quarter, driven by higher customer activity in volatile markets.

• Operating expenses were managed down, with a full-year 2025 cost outlook of up to DKK 26bn confirmed.