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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 0123
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