Slides
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Danske Bank 1 Financial results - Q2 2026 Presentation for Q2 conference call Carsten Egeriis Chief Executive Officer Cecile Hillary Chief Financial Officer
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2Danske Bank Executive summary: Strong financial performance driven by commercial momentum and strategic execution 1,074 1,141 1,135 1,727 1,777 1,794 Q2 25 Q1 26 Q2 26 +6% +4% Deposits Lending *Non-financial corporates, Source: Central bank lending market shares 903 1,010 1,117 Q2 25 Q1 26 Q2 26 +24% AuM Commercial highlights Key figures (DKK bn) Commercial momentum Corporate lending growth +6% Y/Y, driving market shares across the Nordics Asset management net inflow in Q2 of DKK +14 bn across channels Q2 26 Cost/income ratio 43.0% 2026 target: ~45% Q2 26 net profit DKK 6.2 bn - ROE 14.8% F’28 target for 2026: 13% 2026 Net profit outlook raised to DKK 23 – 25bn ➢ Beneficial operating environment and macro backdrop in the Nordics underpin sustained commercial momentum ➢ Strong financial performance with core income up 7% Y/Y and in Q2 net profit of DKK 6.2 bn reflecting increasing customer activity and volumes, disciplined cost management and sustained strong credit quality ➢ Growing customer volumes driven by growth across all Business Units and resilient margins. Corporate market share* gains across the Nordics. Continued uplift in net inflows supports AuM ➢ Strong capital generation underpin CET1 ratio at 17.0%, despite growing balance sheet and additional accrual to reflect the new dividend policy announced in Q1 ➢ Net profit outlook for 2026 revised upwards to DKK 23 – 25bn, underpinned by higher total income from increasing commercial activity and policy rates Q2 25 Q1 26 Q2 26 14.0 12.5 14.0 13.3 15.2 13.4 +8% +7% Total income Core income Financial highlights Financial results – Q2 2026
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Danske Bank 3 Business units: High customer activity across segments drives volumes and income Personal Customers Business Customers Large Corporates & Institutions 4,193 4,662 5,003 +19% 3,599 3,781 3,826 +6% 4,305 4,424 4,691 +9% 403 402 412 661 664 670 Q225 Q126 Q226 +2% +1% Deposits Lending Highlights Q2 26 ➢ Higher income mostly driven by strong fee income from everyday banking activity ➢ Strong development in corporate platform sees lending and deposit volumes growth ➢ Higher income driven by customer activity leading to higher deposit and lending volumes as well as everyday banking fees ➢ ROAC remained above target due to higher income and loan impairment reversals ➢ Higher total income supported by lending volume growth, investment and capital markets fees. Deposit volumes Q2/Q1 impacted by seasonality ➢ Strong uplift in lending volumes sustained with 10% growth compared to same quarter last year 30 36 39 19 23 21 21 21 22 1. 2026 ROAC targets for PC, BC, LC&I are 29%, 21%, 18% respectively 247 269 271 684 705 715 Q225 Q126 Q226 +10% +5% 293 334 312305 330 335 Q225 Q126 Q226 +6% +10% Total income (DKK m) ROAC (%) Lending & deposit volumes (DKK bn) 2026 target 1. Financial results – Q2 2026
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4Danske Bank Strong financial performance in the core income lines and cost management in line with plan ➢ H1 26/H1 25: Total income supported by growing core income with NII and fee income underpinned by customer activity and growing volumes. Trading income impacted by value adjustments from financial market volatility. Other income benefitting from 231m one-off booked in Q226 ➢ Q2 26/Q1 26: Resilient NII with growing volumes off-setting impact from lower equity base and higher funding costs. Fee income underpinned by activity-driven fees and higher capital markets and assets under management. Trading and insurance income recovered from volatile Q1 ➢ Continued cost management in line with guidance ➢ Strong credit quality and well- provisioned portfolio leading to below-cycle CoR in H1 Highlights H1 26 H1 25 Index Q2 26 Q1 26 Index Net interest income 18,672 18,083 103 9,332 9,340 100 Net fee income 7,976 7,066 113 4,058 3,918 104 Net trading income 1,082 1,736 62 693 389 178 Net income from insurance business 851 714 119 689 162 425 Other income 550 316 174 385 165 233 Total income 29,131 27,917 104 15,157 13,974 108 Operating expenses 12,924 12,670 102 6,518 6,405 102 Profit before loan impairments 16,207 15,247 106 8,638 7,569 114 Loan impairment charges 265 266 100 291 -26 - Profit before tax 15,942 14,980 106 8,348 7,595 110 Tax 4,055 3,770 108 2,147 1,908 113 Net profit 11,887 11,211 106 6,201 5,686 109 Income statement (DKK m) Financial results – Q2 2026
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Danske Bank 5 Signature Sand 1 Sand 2 Sand 3 White Action Caution Negative Positive Gold 1 Gold 2 Gold 3 Gold 4 Copper 1 Copper 2 Copper 3 Copper 4 Green 1 Green 2 Green 3 Green 4 Blue 1 Blue 2 Blue 3 Blue 4 Secondary colours Primary colours Action colours NII: Solid NII underpinned by positive trend in volumes, deposit margins and stability derived from structural hedge * Structural hedge income includes benefits from our bond and derivatives portfolio and fixed rate assets, net of the development in the yield on shareholders’ equity at Danske Bank A/S. **Adjusted for non-recurring item. ***Margin development trends are the annualised net interest income on lending/deposits as a percentage of average lending/deposits for the period. They include effects from FX, volumes and other interest-related items, incl. structural hedge NII H126 vs H125 (DKK m) NII Q226 vs Q126 (DKK m) Lending margin development*** (%) Deposit margin development*** (%) 0.62 0.59 0.61 0.71 0.68 0.66 1.09 1.00 0.98 0.97 1.17 0.99 1.03 1.11 1.09 1.15 0.0 0.5 1.0 1.5 0.85 Q222 1.03 0.92 Q223 0.94 Q224 Q225 Q226 PC BC LC&I Growing NII trajectory +3% Y/Y from improved volumes and structural hedge contribution providing stability in light of Central Bank rates Quarterly trend highlights solid trajectory of NII underpinned by solid volume contribution Structural hedge impacted by higher short-term rates coupled with lower income from shareholder equity base following March and May payouts. The notional of the structural hedge (bond + derivatives) was kept stable in Q2 at around DKK 190bn Other primarily include Treasury’s FTP allocation effects along with lower interest-related fees and a non-recurring correction NII sensitivity unchanged: Year 1: DKK +450m/-650m (per 25bps move up/down). Additional impact in year 2 and 3 of DKK (+/-)300m and DKK (+/-)100m, respectively, all else equal 0.76 2.21 2.13 2.12 1.81 1.58 1.68 1.65 0.64 0.0 0.5 1.0 1.5 2.0 2.5 3.0 0.26 Q222 0.31 2.18 1.94 0.56 Q223 2.68 2.50 0.60 Q224 2.18 2.44 0.53 1.92 0.46 Q225 2.12 0.56 0.57 Q226 PC BC LC&I0.48 506 Lending volume H126FX & Day effect 151 Other (incl. Treasury) -955 Structural hedge* 318 18,083 18,672 Deposit margin 346 Deposit volume 355 Lending margin -132 H125 +3% Highlights Q126 97 Lending volume -4 Lending margin Other (incl. Treasury) 81 FX & Day effect Q226 -92 Structural hedge* -81 Deposit margin 142 Deposit volume 959,340 -338 9,332-246 Adj. +1%** Financial results – Q2 2026 Non-recurring
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Danske Bank 6 Signature Sand 1 Sand 2 Sand 3 White Action Caution Negative Positive Gold 1 Gold 2 Gold 3 Gold 4 Copper 1 Copper 2 Copper 3 Copper 4 Green 1 Green 2 Green 3 Green 4 Blue 1 Blue 2 Blue 3 Blue 4 Secondary colours Primary colours Action colours Fee income: Strong fee income up 13% Y/Y and 4% Q/Q driven by customer activity and continued performance in investments offering Everyday banking fee income (e.g. transfers, accounts) Continued demand for our One-Corporate platform and cash management solutions with continued growth in house bank mandates Lending and guarantee fee income Y/Y: Increase in customer activity continued to drive corporate credit demand Q/Q: Lower income in Q2 mostly related to refinancing auctions of adjustable rate mortgages Capital markets fee income Q/Q: Good activity in DCM coupled with increasing income from advisory-driven roles Investment fee income Sustained strong growth in AuM, net sales and rising asset prices both Y/Y and Q/Q Highlights Net fee income (DKK m) 229 293 387 H1 25 Everyday banking Lending and guarantees 0 Capital Markets Investment fees H1 26 7,066 7,976 +13% Financial results – Q2 2026 109 92 Q1 26 -19 Everyday banking -43 Lending and guarantees Capital Markets Investment fees Q2 26 3,918 4,058 +4%
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Danske Bank 7 Signature Sand 1 Sand 2 Sand 3 White Action Caution Negative Positive Gold 1 Gold 2 Gold 3 Gold 4 Copper 1 Copper 2 Copper 3 Copper 4 Green 1 Green 2 Green 3 Green 4 Blue 1 Blue 2 Blue 3 Blue 4 Secondary colours Primary colours Action colours Trading income: Impacted by lower customer activity in secondary markets and valuation effects in Group Treasury Highlights LC&I Y/Y: Lower result primarily driven by lower customer activity in fixed income market making Q/Q: Improvement in customer activity in fixed income was offset by lower activity in FX and equities sales and trading Group Functions Fluctuations related to unrealised market value adjustments on cross currency swaps and other balance sheet movements that result in accounting volatility that are booked in Group Treasury Net trading income (DKK m) H1 25 -349 LC&I ex. xVA 28 xVA -1 PC and BC -27 Northern Ireland -306 Group Functions H1 26 1,736 1,082 -38% 389 693 272 Q1 26 -25 LC&I ex. xVA 36 xVA -1 PC and BC 22 Northern Ireland Group Functions Q2 26 +78% Financial results – Q2 2026
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Danske Bank 8 Signature Sand 1 Sand 2 Sand 3 White Action Caution Negative Positive Gold 1 Gold 2 Gold 3 Gold 4 Copper 1 Copper 2 Copper 3 Copper 4 Green 1 Green 2 Green 3 Green 4 Blue 1 Blue 2 Blue 3 Blue 4 Secondary colours Primary colours Action colours Expenses: Q2 cost/income ratio of 43% Cost trajectory in line with full-year guidance Y/Y: Higher staff costs driven by performance- based compensation partially offset by lower FCRP and remediation costs Q/Q: Higher resolution fund fees primarily due to higher deposit base Strategic F’28 investments in digital tools and technology platform continue to enable AI and growth Number of group FTE down around 250 compared to Q1 Cost/income ratio for Q2 2026 at 43.0% and for H1 2026 of 44.4% FY2026 cost outlook reaffirmed with a range of DKK 26 – 26.5 bn, with C/I ratio now below 45% Highlights Expenses (DKK m) 59 Q1 26 96 -13 Staff costs (incl. perf.based comp.) -42 Financial Crime Plan -3 Legacy remediation Resolution fee & bank tax 16 Digital investments & other Q2 26 6,405 83 6,518 +2% 151 60 174 H1 25 112 Staff costs (incl. perf.based comp.) -118 Financial Crime Plan -126 Legacy remediation Resolution fee & bank tax Digital investments & other H1 26 12,670 263 12,924 +2% Financial results – Q2 2026 severance
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Danske Bank 9 Signature Sand 1 Sand 2 Sand 3 White Action Caution Negative Positive Gold 1 Gold 2 Gold 3 Gold 4 Copper 1 Copper 2 Copper 3 Copper 4 Green 1 Green 2 Green 3 Green 4 Blue 1 Blue 2 Blue 3 Blue 4 Secondary colours Primary colours Action colours Asset quality: Strong credit quality and prudent macro scenarios Impairment charges by category (DKK m) Allowance account by stages (DKK bn) Diversified and low-risk credit portfolio underpins strong credit quality. Below- cycle impairments of DKK 291m in Q2. Full-year impairment guidance of around DKK 1bn maintained (~5 bps CoR) Macroeconomic charges remain modest. Scenarios reflect ongoing geopolitical uncertainty with tariff and trade tensions to capture a severe and prolonged adverse impact PMAs at DKK 5.2bn, with release of DKK 160m in Q2 primarily related to reduced PC risks. Prudent approach remains in light of geopolitical uncertainties and potential disruptions. Total overlay of almost 30bps equivalent to almost 4yrs of normalised impairments 4.0 6.4 6.3 6.6 6.7 0.7 1.6 1.6 1.60.7 0.51.0 1.0 1.0 0.81.0 0.6 0.5 0.5 1.6 1.0 0.9 0.9 0.9 0.8 0.8 0.8 2019 2020 2021 2022 2023 2024 0.4 2025 0.4 Q1 26 Q2 26 5.9 5.4 5.3 5.2 Agriculture CRE Construction and building materials Personal Customers Others Global tensions 13.2 12.9 12.4 8.3 9.1 9.1 9.3 9.4 8.7 5.9 7.4 6.8 8.1 7.6 2.3 2.7 3.3 3.6 3.2 2.9 3.0 2.9 0.0 0.5 1.0 1.5 2.0 0 5 10 15 20 25 30 1.3 2019 2020 2021 2022 7.5 2023 2024 7.5 2025 7.1 Q1 26 7.1 Q2 26 20.4 22.6 21.9 19.6 20.2 19.9 19.7 19.5 18.8 Stage 1 ECL Stage 2 ECL Stage 3 ECL Stage 3 net exposure, % of total (rhs) %DKK bn Highlights Post-model adjustments (DKK bn) Q224 Q324 Q424 Q125 Q225 Q325 Q425 Q126 Q226 -200 -337 -107 50 217 -8 35 -26 291 Credit quality deterioration PMAs Macro models Financial results – Q2 2026
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Danske Bank 10 Signature Sand 1 Sand 2 Sand 3 White Action Caution Negative Positive Gold 1 Gold 2 Gold 3 Gold 4 Copper 1 Copper 2 Copper 3 Copper 4 Green 1 Green 2 Green 3 Green 4 Blue 1 Blue 2 Blue 3 Blue 4 Secondary colours Primary colours Action colours Capital: Strong capital generation with CET1 capital ratio of 17.0% CET1 development (%) Total REA (DKK bn) Capital position remained strong with CET1 ratio of 17.0% reflecting the DKK 5bn payout as well as the additional accrual on the back of our revised ordinary dividend policy (60 – 70%) announced with our F28 Strategy refresh REA grew DKK 11bn driven by higher credit REA, primarily due to higher lending, partially offset by lower market risk REA given interest rate volatility in Q1 CET1 capital requirements slightly lower in Q2 given the recent amendments to the SyRB related to CRE exposures, which takes the CET1 headroom to 240bp, or 280bp pro-forma when including the P2 relief related to resolved legacy cases, pending annual Supervisory Review and Evaluation Process CET1 ratio and trajectory towards ~16% in 2028, in line with gliding path and the aim of being at ~17% by the end of 2026 Highlights Total capital ratios (%) 17.8 17.3 17.7 17.0 12.6 2.0 3.3 2.7 2.7 2.81.3 2024 0.9 2025 1.3 Q1 26 0.7 Q2 26 Regulatory CET1 requirement* 22.4 20.9 21.7 20.5 14.7 Tier 2 AT1 Pillar II CET1 CET1 15 Q126 Credit risk 0 Counterparty risk -4 Market risk Q226 837 848 2.9 14.8 Q1 26 -0.3 REA 0.3 Net profit after ord. dividend (60%) -0.1 Change in dividend policy (70% accrual) Extraordinary dividend 0.0 FX & other deductions 2.4 14.7 Q2 26 17.7 17.0-0.6 CET1 buffer CET1 capital requirement Financial results – Q2 2026
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Danske Bank 11 Signature Sand 1 Sand 2 Sand 3 White Action Caution Negative Positive Gold 1 Gold 2 Gold 3 Gold 4 Copper 1 Copper 2 Copper 3 Copper 4 Green 1 Green 2 Green 3 Green 4 Blue 1 Blue 2 Blue 3 Blue 4 Secondary colours Primary colours Action colours Financial outlook for 2026 revised upwards to DKK 23 – 25bn * Note – The outlook is subject to uncertainty and depends on volume growth and financial markets/macroeconomic conditions Income We now expect total income to be somewhat above DKK 59 billion driven by higher core banking income from higher customer activity, growing volumes, and recent policy rate hikes Income from trading and insurance activities remains subject to financial market conditions Expenses We expect operating expenses in the range of DKK 26 – 26.5 billion in 2026, reflecting our growth ambitions and continued investment spend alongside a sustained focus on cost management Cost/Income ratio now expected to be below 45%, ahead of our initial target for 2026 Net profit * We now expect net profit to be in the range of DKK 23 – 25 billion, reflecting a Return on Equity target of around 14% in 2026 Impairments Loan impairment charges expected to be around DKK 1 billion, below our normalized loan loss ratio of ~8bps, as a result of continued strong credit quality Financial results – Q2 2026
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Danske Bank 12 Signature Sand 1 Sand 2 Sand 3 White Action Caution Negative Positive Gold 1 Gold 2 Gold 3 Gold 4 Copper 1 Copper 2 Copper 3 Copper 4 Green 1 Green 2 Green 3 Green 4 Blue 1 Blue 2 Blue 3 Blue 4 Secondary colours Primary colours Action colours Danske Bank 12 Press *11 to ask a question Q&A Session