Investor Presentation - First Nine Months 2022
Danske Bank
Investor Presentation - First nine months 2022
Net interest income up by 8% YoY driven by repricing, volumes and higher rates;
trading/insurance impacted by market turmoil; credit quality remains resilient
Key points, 9M 22 vs 9M 21
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NII uplift from repricing initiatives and continually improving trend in lending
volumes as well as recent rate hikes from CBs across our jurisdictions
Fee income from generally high activity offset lower ECM and investment-
related fees
Trading income impacted by volatile financial markets and valuation effects,
while Danica was particularly impacted by valuation effects
Writedown of goodwill in Danica due to higher applied discount rate
Improved underlying cost development, absent debt collection impact and
despite higher remediation and litigation costs
Strong credit quality continues to lead to single-name reversals, while
macro models and additional PMAs mitigate tail risk
Key points, Q3 22 vs Q2 22
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NII up QoQ, benefitting from recent rate hikes as well as continued lending
growth for business customers, particularly large corporates
Net interest income
Net fee income
Income statement and key figures (DKK m)]
9M 22
9M 21 Index
03 22
Q2 22 Index
17,746
16,498 108
6,307
5,810 109
9,536
9,700 98
2,999
3,157 95
Net trading income
679
3,111 22
503
-390
Net income from insurance business
-323
1,576
-286
-122
Other income
1,203
623
193
244
291
84
Total income
Operating expenses
Profit before loan impairments, GW & provision
28,840 31,509 92
19,570 18,874 104
9,270 12,635 73
9,767
8,746 112
6,777
6,421 106
2,990
2,325 129
Provision for Estonia matter
14,000
14,000
Impairment charges on goodwill
1,627
1,627
Loan impairment charges
794
587 135
368
192 192
-7,151
12,048
13,005
2,133
Profit before tax, Non-core
-10
23
-28
31
Profit before tax
-7,161
12,071
13,033
2,164
2,080
-9,241
2,805 74
9,266
760
458
166
13,792
1,705
9
Fee income lower, as high activity-related fees were countered by a general
slowdown in the housing market and reduced capital markets-related fees
Trading income in LC&I recovered while Danica remained impacted by
adverse financial markets, as well as valuation effects and a product related Profit before tax, core
one-off.
Operating expenses improved, when disregarding the DKK 600m debt
collection one-off underpinning the progress on underlying efficiency
Additional provision of DKK 14bn for the Estonia matter, and write-down of
goodwill in Danica due to higher applied discount rate
Strong credit quality led to continually low impairments despite DKK 650m
one-off charge and further macro model impairments. PMAs maintained
Tax
Net profitView entire presentation