Investor Presentation - FY 2022
Danske Bank
Investor Presentation - FY 2022
Overall strong credit quality in portfolios exposed to macro cyclicality
CRE: Well diversified and prudently managed growth
Agriculture: Well-provisioned agriculture book
Housing: Low leverage and strong household finances
DKK 301bn in gross exposure and ECL ~1%
DKK 64bn in gross exposure of which 50% RD
+80% of RD back-book are 5-30yr fixed-rate
Segment gross exposure
■ Non-residential
■ Residential
Property dev.
Crops
Segment gross exposure
Dairy Pig breeding
RD back-book
Avg. LTV RD-retail
■ Mixed operations
54%
55%
41%
4%
32%
18%
14%
36%
43%
38%
Country gross exposure
Country gross exposure
46%
0%
48%
26%
12%
7% 7%
58%
14%
25%
0%
50%
100%
2%
■ DK
Fixed F5s Other
■LTV Home equity
•
■ DK ■ SE ■ NO ■ Fl ■LC&I / Other
Conservative lending growth (-4% 3Y-CAGR in non-
resi. since 2019) given caps and concentration
limits within sub-segments and markets, as well as
for single-names, limiting downside risks
Due to our conservative approach, our SE exposure
has remained stable, despite market growth, and
book is well-diversified with lower concentration risk
over the past years
• The group's credit underwriting standards maintain
strong focus on cash flows, interest rate sensitivity,
LTV and the ability to withstand significant stress.
PMAs of DKK 1.8 bn made to cover uncertainties
regarding the affect of rapid interest rate increases
and macroeconomic situation
•
•
■ SE ■ NO ■ Fl LC&I / Other
The credit quality of the portfolio has improved over
the past few years, recovering from legacy
exposures from the financial crisis
The current credit risk appetite takes into account
the volatility of the sector and remains in place.
Furthermore, the group maintains strong
underwriting standards on LTV, interest-only loans
and interest rate sensitivity
Post-model adjustments of DKK 0.8 bn have been
made for potential future portfolio deterioration due
to uncertainties such as African Swine Fewer (ASF),
Chinese imports and the RU/UA war
•
•
•
Average LTVs have been decreasing over the past
year supported by increasing house prices and call
feature of DK mortgages
Affordability measures in our approval process
has been tightened, and debt-to-income (DTI) levels
remain stable overall
Portfolio uncertainty risks are being mitigated by
continuous monitoring and review of underwriting
standards covering interest rate-related stress of
affordability and other measures
Low near-term refinancing risk on RD flex loans.
Post-model adjustments related to personal
customers total DKK 1.4 bn
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