Danske Bank — Earnings Release 2012

Aug 7, 2012

Copenhagen, 2012-08-07 08:00 CEST (GLOBE NEWSWIRE) --

Danske Bank today announced its financial results for the first half of 2012.
The interim report is available at www.danskebank.com. Highlights are shown
below:

-- The Danske Bank Group posted a profit before tax of DKK 4.1 billion
(EUR 550 million)
for the first half of 2012. The net profit was DKK 2.3 billion
(EUR 308 million)
, a 20% rise from the net profit in the first half of 2011 and generally in
line with expectations.
-- Income totalled DKK 24.6 billion
(EUR 3,310 million)
, up 6% from the level in the first half of 2011, mainly because of higher
net interest income and net income from insurance business.
-- Net trading income remained solid, rising 5% from the level a year earlier.
-- Expenses were down 4% from the level in the first half of 2011, and the
cost/income ratio fell from 60.5% to 54.8%.
-- Loan impairment charges increased from the level in the first half of 2011.
Charges declined for the second consecutive quarter, however.
-- The charges related mainly to commercial property in Ireland and Northern
Ireland, personal customers in Ireland and Denmark, and the shipping
industry.
-- After being placed on negative outlook, Danske Bank saw its rating lowered
by two rating agencies in the second quarter of 2012. The Group’s
considerable liquidity buffers have countered the effects of the
downgrades.
-- At the end of June 2012, the Group had, as planned, redeemed
state-guaranteed bond issues for DKK 30 billion
(EUR 3,971 million)
. The remainder of the state-guaranteed bond issues was redeemed in July
2012.
-- At 30 June 2012, the tier 1 capital and total capital ratios were 16.2% and
17.7%, respectively, against 16.0% and 17.9% at 31 December 2011.
-- The Group still expects earnings to remain low in 2012. Because of the
economic climate, the outlook is subject to considerable uncertainty. Total
impairment charges are likely to remain at the same high level as in 2011.
-- On 1 June 2012, the Group implemented organisational changes. The new
organisation is the first step in implementing the Group’s new strategy,
which is expected to be completed by the end of the third quarter of 2012.
Financial reporting will reflect the new organisation beginning on 1
January 2013.

“These are our best results for a half year since the financial crisis hit in
2008”, says Eivind Kolding, Chairman of the Executive Board. “Even though we
are still far from reaching our goals and challenges lie ahead, the trend is
positive. Net profit is up 20%, net interest income is rising despite low
interest rate levels, and our new organisation, implemented 1 June this year,
has got off to a good start. We have taken one more step in the right
direction.”

                              Danske Bank

Contacts available on 7 August 2012 from 10am:

Eivind Kolding, Chairman of the Executive Board, tel. +45 45 14 60 01

Henrik Ramlau-Hansen, Chief Financial Officer, tel. +45 45 14 06 66

Martin Gottlob, Head of Investor Relations, tel. +45 45 14 07 92

Danske Bank will hold a press conference at 10.00am CET and a conference call
at 2.30pm CET. The press conference and the conference call will be webcast
live at www.danskebank.com.

Danske Bank’s financial statements are available online at
www.danskebank.com/reports.

This is a translation of a press release in the Danish language. In case of
discrepancies, the Danish version prevails. Danish kroner translated into euros
at an exchange rate of 1:7.4334.