Danske Bank Plc - Interim report (Q1 and Q3)

Danske Bank Oyj: Interim Report January-June 2015

Danske Bank Plc Group's Interim Report January-June 2015  July 22, 2015


Risto Tornivaara, CEO: Pleasing development in credit and deposit portfolios in
difficult market conditions"The operating environment continued to be very challenging during the first
half-year. Interest rates remained exceptionally low, and the Greek crisis
increased uncertainty in the financial market. Danske Bank Plc Group, the
Finnish subsidiary of the Danske Bank A/S Group, was able to improve its result
in the challenging operating environment. The profit before taxes for the first
half-year was EUR 113 million, which is 9 per cent more than in the same period
of 2014. The positive profit performance was due to our determined efforts to
improve the bank's cost structure and the reduction of loan impairment charges.

Our cost-to-income ratio improved by 2 percentage points on the previous year
and was 60.5 per cent. The interest rate environment had a negative impact on
our net interest income, which declined by 2 per cent. Net fee income was almost
at previous year's level. Operating income totaled EUR 293 million in January-
June, which is 3 per cent less than a year earlier.

Danske Bank's objective is to be the most trusted banking partner for Finns.
Customer satisfaction improved in all our business units, especially among our
medium-sized and large corporate customers. Our customers' trust was reflected
in the development of our credit and deposit portfolios in both Personal and
Business Banking, which is very pleasing, especially considering the difficult
market conditions.

The number of new housing loans grew by over 20 per cent on the previous year,
boosted by our campaigns focusing on effortless banking. More than 22,000 of our
household customers utilised the opportunity to have an interest-only period on
their home loans, which released some EUR 110 million in assets for households
to use.

After a long downturn, there are positive signs regarding Finnish companies'
willingness to invest. The corporate bond market has been utilised actively in
financing, and there have also been new listings on the stock market after a
long hiatus. The first half-year was successful for Danske Bank's Corporate
Finance business: we were chosen to participate in arranging the largest IPOs
since 2006, and we played a key role in several major financing arrangements.

Danske Bank Plc Group's capital adequacy is very strong, and our capital
adequacy ratio was 15.5 per cent (14.5% at the end of 2014) at the end of the
period. Our aim is to grow in Finland, and our strong capital adequacy provides
a good foundation for this."

Danske Bank Plc Group's Financial Highlights

                                                    1-6/2015 1-6/2014 1-12/2014

 Net interest income                           EURm      151      154       315

 Total operating income                        EURm      293      302       603

 Total operating expenses                      EURm      177      189       373

 Impairment charges on loans and receivables   EURm        3       10        17
 1)

 Profit before taxes                           EURm      113      104       214

 Cost to income ratio                             %     60.5     62.5      61.8

 Total amount of balance sheet                 EURm   31,647   27,037    29,692
 at the end of the period

 Equity at the end of the period               EURm    2,428    2,416     2,502

 Return on equity 2)                              %      6.3      6.9       6.9

 Group solvency ratios                            %     15.5     14.2      14.5

 Number of staff (FTE) at the end of the               1,923    1,811     1,709
 period 3)

 Return on assets 2)                              %      0.5      0.6       0.6

 Equity/assets ratio                              %      7.7      8.9       8.4

1) Impairment on loans and receivables includes impairment charges, reversals of
them, write-offs and recoveries.
2) Annualized
3) Presentation has been changed for 2015, so that hourly paid staff has been
included in FTE. Comparative figures have not been changed.

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

Financial Highlights of Danske Bank's operations in Finland

                                                    1-6/2015 1-6/2014 1-12/2014

 Total operating income                        EURm      326      333       663

 Profit before taxes                           EURm      136      125       249

 Total assets at the end of the period         EURm   33,017   28,578    31,128

 Number of staff (FTE) at the end of the               2,228    2,122     1,999
 period


Events after the reporting period

Financial Supervisory Authority (FIN-FSA) has, in their press release on 6(th)
July 2015, designated Danske Bank Plc as systemically important credit
institution (O-SII) in Finland in accordance with the Act on Credit
Institutions. At the same time FIN-FSA imposed an additional capital requirement
of 0.5 per cent, which has to be covered by Common Equity Tier 1 capital (CET1
capital). The new requirement must be fulfilled as of 7(th) January 2016.

In July 2015 Danske Bank Plc also received the Finnish FSA's approval to use the
F-IRB approach for calculating credit Risk Exposure amount (REA) for the asset
class corporate in Finland. The approval will be implemented during Q3 2015.

Outlook for 2015

Growth in Finnish economy is expected to remain on a very modest level also
during the rest of the year 2015 and mainly driven by growth in exports to
Western markets and USA.

Lending to personal and corporate customers is expected to continue a slight
increase also during the rest of the year. However, due to the low domestic
demand, relatively quiet activity on the housing markets and continuing low
level of interest rates, we expect the net interest income and total income to
decrease slightly compared to the previous year.

Expenses are expected to be lowered compared to previous year as we continue to
have a strong focus on improving our cost efficiency and operational processes
during the second half of 2015. Overall, we expect that our profit before loan
impairment charges for 2015 will be slightly better than 2014.

Impairment charges are expected to in broadly line with 2014 thus net profit is
expected to be at the same level as 2014.

This guidance is generally subject to uncertainty and depends on economic
conditions. Our trading income and loan loss charges are particularly uncertain.

Full interim report

The Danske Bank Plc Group's full Interim Report for January - June 2015 is
attached to this release as a pdf file and is available at the bank's website
www.danskebank.fi.

For further information:

Risto Tornivaara, CEO of Danske Bank Plc

For an interview with Risto Tornivaara, please contact Irja
Kukkola/Communications, tel. + 358 10 546 8006.


Danske Bank is a leading Nordic financial services organisation with retail,
corporate and institutional customers in 15 countries. In Finland, the bank
produces customer-oriented banking solutions for over 1 million customers.
Danske Bank has an excellent international network of experts and is at the
forefront in the provision of modern mobile and tablet services.



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Viðhengi:

Danske Bank Plc Interim Report 2015.pdf