Investor Presentation - FY 2023
Investor Presentation - FY 2023
Danske Bank
Commercial property; prudently managed and cash-flow based underwriting
standards; sound credit quality and adequate buffers in place to mitigate tail risks
Highlights
CRE share of total portfolio by major peer banks*
Lending to CRE segment by major peer banks (index)*
Danske Bank
Danske Bank has a relatively low concentration to CRE
compared with Nordic peers. The portfolio has been
slightly declining due to concentration limits and
stringent underwriting standards, particularly towards
non-residential segment
150
Peer bank 1
Peer bank 4
Peer bank 5
Commercial
Residential
140
Peer bank 2
Peer bank 3
Peer bank 6
130
14%
12%
120
110
5%
6%
-
Of the CRE portfolio, 25% is to Sweden, lowest ratio
among all Nordic banks active in Sweden. As such,
customers with dependence on refinancing of bonds are
thus manageable
In addition to conservative underwriting, we perform
rigorous monitoring of exposures, incl. stress tests:
✓ An interest rate stress of 3%-pts on top of the
borrower's current avg. interest rate for debt not
hedged
✓ Significant stress assessment of rent and vacancy
rates
✓ Liquidity stress measuring ability to repay
maturing bond debt etc. in the coming 18 months
The portfolio is well diversified and well provisioned to
mitigate a potential material correction in the sector
6%
100
5%
5%
17%
12%
11%
10%
90
6%
7%
7%
80
0417 Q418 0419 0420 0421 0422
0423
Danske Peer1 Peer2 Peer3
Peer4 Peer5
Peer6
Danske Bank's CRE portfolio avg. LTVs
Danske Bank's CRE allowance account, core [DKKbn]
Residential
Non-residential
Allowance account
Of which PMAS
сл
5
60%
56%
51%
58%
54%
4
50%
48%
47%
3
3.5
2
T
1
0
Denmark
Sweden
Norway
Finland
2019 2020
2021 2022 0123 0223 0323 0423
42
*Source: Companies' interim report. Exposure definitions differ among banks between total lending, credit exposure and EaD.View entire presentation