Danske Bank Plc - Interim report (Q1 and Q3)

Danske Bank Plc Group's Interim Report January - September 2016

Danske Bank Plc Group's Interim Report January - September 2016

Satisfactory result amid continued weak growth

The growth of Finnish economy remains consumer-driven and modest, and interest
rates continue on a record low level. Total income for Danske Bank's operations
in Finland* for the first nine months was 5% lower compared with the same period
of the previous year and amounted to EUR 449.9 million (EUR 475.4 million).
Record low interest rates continued to depress net interest income and net fee
income decreased from previous year's level. Net trading income was negatively
impacted by increased valuation adjustments on derivatives (xVA), caused by
model changes. Due to continuous focus on cost efficiency and operational
processes, operating expenses were down by 2%. Profit before taxes totaled EUR
178.8 million (188.3).

Danske Bank's capital position remained strong and our underlying business
remained solid as we saw volume growth in lending in both personal and business
banking and improved customer satisfaction.  Loan portfolio among small and
medium sized companies increased 8% compared to year end 2015 as a result of
higher business volumes with both new and existing customers. Even though
lending is up, we maintain a sound and balanced credit policy with impairments
at a low level.

In the spring, Danske Bank launched a campaign to encourage young people to buy
their first home. According to statistics, the number of first home buyers has
fallen significantly after the financial crisis.

"The decrease in the number of young home buyers is worrying both for the sake
of the future of these young people, but also due to the impact on the wider
society; first home buyers are an important part of the housing market.
According to our research, owning their home is still the dream of the clear
majority of young people, and we at Danske Bank wanted to encourage young people
to pursue this dream while also accumulating savings. Thus we launch a campaign
that combines advisory with financial benefits totalling almost one million
euro. We are extremely happy about the response from young Finns, and have seen
a 24% increase in granted first home loans during the first three quarters",
says Risto Tornivaara, CEO of Danske Bank Plc.

We continue investing heavily in new and innovative solutions that make everyday
banking easier for our customers, and our ambition to become a customer-focused
Nordic universal bank has once again been strengthened with the launch of new
initiatives, including digital signing for corporate clients, MobilePay online
solution and new distribution agreements for MobilePay.

"The third quarter was characterized by intensifying dialogue with customers on
how to adapt their investment strategies to the zero or negative interest rate
environment; private investors, corporate and institutional customers alike
search for solutions and asset classes that continue to provide a positive
return.  We launched a number of initiatives to serve especially our corporate
customers with advice and solutions that are tailor made to their individual
needs", says Risto Tornivaara, CEO of Danske Bank Plc.

*Includes Danske Bank Plc Group and the Helsinki Branch of Danske Bank A/S.


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                          1-9 2016 1-9 2015 Change     2015



Net interest income                      242.7    249.6  -2.7%    332.7

Net fee income                           194.3    204.5  -4.9%    268.7

Net trading income                         4.8     12.5 -61.6%     19.3

Other income                               8.0      8.9  -9.4%     11.6

Total income                             449.9    475.4  -5.4%    632.2

Operating expenses                       271.1    275.4  -1.6%    376.1

Profit before loan impairment charges    178.8    200.0 -10.6%    256.1

Loan impairment charges                    0.0     11.7 -99.7%     12.8

Profit before tax                        178.8    188.3  -5.1%    243.2



C/I -ratio, %                            60.3%   57.9 %   2.3%    59.5%



Loans                                 21,415.9 20,856.2   2.7% 20,882.8

Deposits                              20,189.3 19,861.7   1.6% 19,830.6



Danske Bank Plc Group's Financial Highlights

EUR millions                                  1-9 2016 1-9 2015  Change     2015



Net interest income                              218.0    227.8   -4.3%    304.4

Net fee income                                   172.9    177.2  .-2.4%    234.5

Net trading income                                 3.0     10.3  -71.0%     14.3

Other income                                      15.5     16.3   -5.3%     21.6

Total income                                     409.3    431.7   -5.2%    574.7

Operating expenses                               254.7    259.0   -1.7%    352.5

Profit before loan impairment charges            154.6    172.7  -10.5%    222.2

Loan impairment charges                            0.0     13.2 -100.0%     12.6

Profit before tax                                154.6    159.6   -3.1%    209.5



C/I -ratio, %                                    62.2%    60.0%    2.2%    61.3%

ROE, %                                                                      6.6%

Total capital ratio, % *                                                   18.4%

Common equity tier 1 capital ratio, (Tier
1), % *                                                                    17.5%

FTE at the end of period                       1,627.5   1732.5   -6.1%  1,730,0



Loans                                         20,261.5 19,825.2         19,818.8

Deposits                                      17,916.5 19,802.9         18,115.3

Total equity                                   2,581.5  2,465.5          2,515.4

Total balance sheet                           30,747.6 31,394.3         30,312.9


Figures in this press release have not been audited.
*Profit after taxes for January-June is not included in Tier 1 distributable
capital in solvency calculations at the end of June 2016.


Danske Bank Plc publishes only one interim report during 2016. The Group's
financial statement for January-December 2016 will be released on 2 February
2017.

Outlook for 2016

Growth in the Finnish economy is expected to be quite modest also during the
rest of 2016 and the interest environment is expected to remain at a low level.
We expect our lending to personal and corporate customers to grow in 2016.

Expenses are expected to be around the same level as the previous year, mostly
due to growth in costs associated with regulation. Overall, we expect that our
net profit for 2016 will be around 2015 levels as loan impairment charges are
expected to remain at a low level.

For further information:

Risto Tornivaara, CEO of Danske Bank Plc. For an interview with Risto
Tornivaara, please contact Tomi Koljonen/Communications, tel. +358 50 422 0911.



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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Attachments:

Danske Bank Oyj Interim Report Q3/2016.pdf