Investor Presentation - First Nine Months 2022
Investor Presentation - First nine months 2022
Danske Bank
Impairments: Continually strong credit quality and individual reversals, while prudent
buffers remain in place; modest macro-charges to reflect deteriorating outlook
Highlights
Credit quality remains strong with limited impact from the worsening macro
backdrop, leading to overall net reversals when disregarding the DKK 0.65bn
charge related to the closure of the legacy debt collection
Macro outlook has been updated to reflect current uncertainties with increased
downside risk from inflation and interest rates, resulting in additional DKK 150m
booked in Q3
Total allowance of DKK 19bn includes PMAs of DKK 6bn, as additional overlays of
DKK +2bn established since Covid-19 have been repurposed for macro
uncertainties. The PMA of DKK 250m established to account for potential lower
recovery in debt collection legacy cases has been reallocated in Q3
4.3
Impairment charges by category [DKK bn]
Credit quality deterioration: oil & gas
Credit quality deterioration: outside oil & gas
Post-model adjustments
Macroeconomic adjustments
Debt collection one-off
1.4
0.7
1.0
0.5
1.1
0.8
1.7
0.5
0.2
-0.2
-0.2
0.2
0.4
0.2
0.7
0.2
-0.3 -0.1
Q1 2020 Q2 2020 03 2020 04 2020 Q1 2021 Q2 2021 Q3 2021 04 2021 Q1 2022 02 2022 03 2022
PMAS
Allowance account by stages [DKK bn]
6.4
Stage 1 ECL
Stage 2 ECL
Stage 3 ECL
Stage 3 net exposure, % of total (rhs)
6.3
6.0
6.0
DKK bn
0.9
%
5.4
1.0
0.8
Agriculture
30
1.36
CRE
1.2
1.5
1.34
1.3
25
4.0
1.4
22.6
Construction &
21.9
20.4
1.32
0.2
0.4
1.3
-0.0
Building materials
2.3
19.8
19.8
20
2.7
18.8
1.3
0.6
1.30
3.1
3.1
1.7
0.1
-0.0
1.4
Oil & Gas
5.9
7.4
3.0
0.3
6.8
15
1.5
6.7
6.8
1.2
Personal Customers
7.1
10
1.04
1.1
Others
2.1
13.2
12.9
1.02
1.3
1.5
12.4
5
0.9
Model changes
9.9
9.9
8.7
1.00
0.0
0.0
0.0-
0
0.00
2019
2020
2021
Q1 22
Q2 22
Q3 22
2019
2020
2021
Q1 2022
Q2 2022
Q3 2022
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