Danske Bank Plc - Interim report (Q1 and Q3)

Danske Bank Plc Group's Interim Report January - March 2017

Danske Bank Plc Group's Interim Report January - March 2017

Good start to the year



The Finnish economy continued to improve in the first months of 2017, and
positive signals could be seen in the latest economic indicators. The uptick in
economic confidence was reflected in increased demand for lending among personal
customers as well as in signs of improved economic activity among corporate
customers. Total income for Danske Bank's operations in Finland[1] for January -
March 2017 amounted to EUR 169.4 million (EUR 154.1 million in Q1 2016), up 10%
compared to previous year.

Despite continued low interest rate environment, net interest income for the
period increased 10%, driven by lower funding costs, increase in lending and
adjustments in deposit rates. Net fee income decreased by 3%. Net trading income
was positively affected by valuation adjustments on derivatives (xVA). Operating
expenses were flat, and profit before taxes increased by 31% to EUR 81.8
million.

"In the first quarter of 2017, we saw a positive effect from valuation
adjustments and lower funding costs. Our core business continued to perform
solidly, however, and lending to small and medium sized corporate customers
increased by 5%. We saw an especially strong demand for asset finance solutions,
which seems to indicate a recovery in companies' willingness to invest. Consumer
interest in mortgages was record high, and the volume of new granted mortgages
grew by 13% compared to previous year. I am especially happy that our efforts to
encourage first home buyers were reflected in a 29% growth in new first home
mortgages," says Risto Tornivaara, CEO of Danske Bank Plc.

Financial Highlights of Danske Bank's operations in Finland

In addition to Danske Bank Plc, Danske Bank's operations in Finland include the
Helsinki branch of Danske Bank A/S.

EUR millions                           Q1 2017  Q1 2016  Change
---------------------------------------------------------------
Net interest income                       87.0     79.0   10.1%

Net fee income                            65.5     67.4   -2.9%

Net trading income                        13.1      5.3  146.5%

Other income                               3.9      2.4   61.6%
---------------------------------------------------------------
Total income                             169.4    154.1    9.9%

Operating expenses                        90.2     89.5    0.8%
---------------------------------------------------------------
Profit before loan impairment charges     79.1     64.6   22.5%
---------------------------------------------------------------
Loan impairment charges                   -2.7      2.2 -222.4%
---------------------------------------------------------------
Profit before tax                         81.8     62.4   31.1%



C/I-ratio, %                            53.3 %   58.1 %   -4.8%



Loans                                 21,981.7 21,363.7    2.9%

Deposits                              19,214.5 19,167.5    0.2%




Danske Bank Plc Group's Financial Highlights

EUR millions                           Q1 2017  Q1 2016  Change
---------------------------------------------------------------
Net interest income                       77.6     71.4    8.6%

Net fee income                            57.8     56.8    1.7%

Net trading income                        12.6      4.4  187.3%

Other income                               6.4      4.8   32.5%
---------------------------------------------------------------
Total income                             154.4    137.4   12.3%

Operating expenses                        84.6     83.4    1.5%
---------------------------------------------------------------
Profit before loan impairment charges     69.7     54.0   29.1%
---------------------------------------------------------------
Loan impairment charges                   -2.7      2.0 -234.8%
---------------------------------------------------------------
Profit before tax                         72.4     52.0   39.2%



C/I-ratio, %                            54.8 %   60.7 %   -5.9%

FTE at the end of period                 1,553    1,683   -7.8%



Loans                                 20,671.4 20,215.6    2.3%

Deposits                              17,241.4 17,452.3   -1.2%

Total equity                           2,523.1  2,499.3    1.0%

Total balance sheet                   29,975.0 30,380.6   -1.3%



Outlook for 2017

Growth in Finnish economy is expected to remain moderate in 2017-2018 and the
interest environment, especially short-term interest rates, is expected to
remain at low level also during 2017.

We expect our lending to personal and corporate customers to continue growing in
2017 and thus we anticipate that our net interest income and total income will
be higher compared to 2016.

Operating expenses are expected to be slightly lower than previous year since
the Bank continues to have a strong focus on improving our cost efficiency and
operational processes. Overall, we expect that our net profit for 2017 will be
slightly higher than 2016.

Possible merging of activities in Finland

As announced on February 2, 2017, the Danske Bank Group is looking into the
possibilities of merging its activities in Finland - Danske Bank Plc and Danske
Bank A/S, Helsinki branch - into a single branch. In doing so, the Danske Bank
Group would achieve a uniform organisational structure across the Nordic
markets. The change would be primarily of a technical nature and would not
change the way in which we serve our customers, nor would employees experience
changes.

As a part of this process, the Board of Directors of Danske Bank Plc approved on
March 23, 2017 a plan aiming at separating the bank's mortgage credit banking
business by way of a partial demerger. The planned de-merger has no effects on
Danske Bank Plc's customers.

The demerger is subject to approval by the general meeting of Danske Bank Plc
and the acquiring company obtaining necessary licenses to operate as a Finnish
credit institution and mortgage credit bank. Application for such licenses has
been filed with the Finnish Financial Supervisory Authority.

Interim report for January-June 2017

Danske Bank Plc Group publishes only one interim report during 2017. The Interim
Report January - June 2017 will be released on 20 July 2017.


For further information:

Risto Tornivaara, CEO of Danske Bank Plc, tel. +358 (0)10 546 6675



Danske Bank is Finland's third largest bank, which serves around a million
Finnish personal, business and institutional customers. Danske Bank Plc is a
part of the Nordic Danske Bank Group.

Danske Bank is a Nordic universal bank with strong regional roots and bridges to
the rest of the world. We serve more than 3.4 million personal, business and
institutional customers, and in addition to banking services, we offer life
insurance and pension, mortgage credit, wealth management, real estate and
leasing services and products.

Our vision is to be recognised as the most trusted financial partner. We are
driven by a desire to make important financial decisions and daily banking easy,
and our aim is to create long-term value for our customers and investors and the
societies we are a part of.

Danske Bank is headquartered in Copenhagen and is listed on Nasdaq Copenhagen.

www.danskebank.com





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[1]Includes Danske Bank Plc Group and the Helsinki Branch of Danske Bank A/S.



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Attachments:

Danske Bank Finland s Interim Report Q1/2017.pdf