Danske Bank Plc - Interim report (Q1 and Q3)

Danske Bank Oyj: Interim Report January-June 2016

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

21.7.2016

Satisfactory result amid increasing uncertainty

The first half-year of 2016 was characterized by difficult market conditions
with a continuation of negative interest rates and low growth. In addition, the
UK's potential exit from the EU increased uncertainty in the financial markets
and about the economic outlook in Finland. Danske Bank's diversified business
model and efforts to become an even more customer-focused and efficient bank
mean that, despite the challenges, we delivered a satisfactory result for the
period.

Total income for Danske Bank's operations in Finland* was 3% lower compared with
the same period of the previous year and amounted to EUR 316.9 million (EUR
326.2 million). Low interest rates continued to depress net interest income. Net
fee income was also slightly lower compared with previous year's level. Net
trading income, which has been impacted by significant volatility related to
credit default swap spreads and Brexit among other things, increased by 7%.
Total costs continued to decrease and were down by almost 3%. Profit before
taxes totaled EUR 130.8 million (135.9).

Customer activity was good in several units. Mortgage lending developed
positively, and around half of mortgage customers chose one of the new flexible
mortgage solutions and 33 % of customers took the benefit of managing their
interest risk with an interest rate collar. Loan portfolio among small and
medium-sized companies grew by 8%, continuing to outpace the market. In the C&I
business, Danske Bank arranged bonds for several major Finnish corporates as
well as for central and local government entities.

"Our loan portfolio continued to grow especially among the corporate customers.
Net interest income decreased further despite the balance sheet growth, because
the interest rates paid on customers' deposits are adjusted to reflect the low
interest environment with a delay," says Risto Tornivaara, CEO of Danske Bank
Plc.

Over 320.000 Finns have downloaded the popular MobilePay application, and its
business version was launched in the spring with both point-of-sale and
appSwitch solutions. During the second half of the year Danske Bank intends to
launch a MobilePay solution for small businesses that will offer them completely
new possibilities to operate in the world of mobile payment.

"MobilePay's business version has raised a lot of interest among Finnish
companies, and it looks like 2016 will be the year for the breakthrough of
mobile payment in this market. Finland needs growth stories and innovations,
which will help businesses succeed in the global competition and create
wellbeing for future generations. Finland has high-level expertise in
digitalization and mobile solutions, in particular, but there is also still
plenty of unused potential in Finnish companies." says Risto Tornivaara.

*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                           H1 2016  H1 2015 Change     2015



 Net interest income                      161,3    165,9  -2,7%    332,7

 Net fee income                           132,5    137,9  -3,9%    268,7

 Net trading income                        17,9     16,7   6,8%     19,3

 Other income                               5,2      5,6  -7,6%     11,6

 Total income                             316,9    326,2  -2,8%    632,2

 Operating expenses                       183,5    188,9  -2,9%    376,1

 Profit before loan impairment charges    133,4    137,3  -2,8%    256,1

 Loan impairment charges                    2,6      1,4  83,1%     12,8

 Profit before tax                        130,8    135,9  -3,7%    243,2



 C/I -ratio, %                            57,9%    57,9%   0,0%    59,5%



 Loans                                 21 552,0 20 826,7   3,5% 20 882,8

 Deposits                              19 035,1 20 251,7  -6,0% 19 830,6



Danske Bank Plc Group's Financial Highlights

 EUR millions                                  H1 2016  H1 2015 Change     2015



 Net interest income                             145,8    150,6  -3,2%    304,4

 Net fee income                                  116,4    116,8  -0,3%    234,5

 Net trading income                               16,8     14,8  13,5%     14,3

 Other income                                     10,1     10,7  -5,5%     21,6

 Total income                                    289,1    293,0  -1,3%    574,7

 Operating expenses                              170,8    176,9  -3,5%    352,5

 Profit before loan impairment charges           118,3    116,0   2,0%    222,2

 Loan impairment charges                           2,6      3,1 -16,1%     12,6

 Profit before tax                               115,7    113,0   2,5%    209,5



 C/I -ratio, %                                   59,1%    60,5%  -1,4%    61,4%

 ROE, %                                           7,5%     6,3%   1,2%     6,6%

 Total capital ratio, % *                        19,5%    15,5%   4,0%    18,4%

 Common equity tier 1 capital ratio, (Tier
 1), % *                                         18,6%    14,8%   3,8%    17,5%

 FTE at the end of period                        1 736    1 923  -9,7%    1 730



 Loans                                        20 309,2 19 694,3   3,1% 19 818,8

 Deposits                                     17 065,2 20 190,2 -15,5% 18 115,3

 Total equity                                  2 550,3  2 427,7   5,0%  2 515,4

 Total balance sheet                          30 174,6 31 647,4  -4,7% 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 entire report
for January -June 2016 is attached to this release as a PDF file. 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 yet during the
second half 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 slightly higher than in 2015 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 3.5 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





[HUG#2029648]

Attachments:

Danske Bank Plc - Interim Report January-June 2016.pdf