Investor Presentaiton
Investor Presentation - First quarter 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
Lending to CRE segment by major peer banks (index)* CRE share of total portfolio by major peer banks*
― Danske Bank
Peer bank 4
Commercial
Residential
140
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
Peer bank 1
Peer bank 5
Peer bank 2
Peer bank 6
130
Peer bank 3
120
110
Of the CRE portfolio, 26% is to Sweden, lowest ratio
among all Nordic banks active in Sweden. As such,
customers with dependence on refinancing of bonds
are thus manageable
100
14%
9%
5%
6%
6%
6%
5%
90
15%
11%
12%
10%
9%
6%
7%
80
Q117
0118
Q119
Q120 0121
0122
0123
Danske Peer1 Peer2 Peer3 Peer4 Peer5
Peer6
Danske Bank's CRE allowance account, core (DKKbn]
Allowance account
Of which PMAS
5
In addition to conservative underwriting, we perform
rigorous monitoring of exposures, incl. stress tests:
✓ An interest rate stress of 4%-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
Danske Bank's CRE portfolio avg. LTVs
Residential
50%
46%
Non-residential
LO
56%
56%
50%
4
48%
47%
44%
3
2
1
Denmark
Sweden
*Source: Companies' Annual report. Exposure definitions differ among banks between total lending, credit exposure and EaD.
T
T
3.3
0
Norway
Finland
2018
2019
2020
2021
2022
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