Danske Bank — Earnings Release 2025

Jul 18, 2025

Good customer activity and strong credit quality led to solid results for the first half of 2025. Net profit of DKK 11.2 billion

Good customer activity and strong credit quality led to solid results for the first half of 2025. Net profit of DKK 11.2 billion

Press release Danske Bank

Bernstorffsgade 40

DK-1577 København V

Tel. + 45 45 14 14 00

18 July 2025

Page 1 of 3

Good customer activity and strong credit quality led to solid results for the

first half of 2025

Net profit of DKK 11.2 billion

Carsten Egeriis, Chief Executive Officer, comments on the financial results:

"In the first half-year, we continued our robust performance and delivered solid

results in line with our expectations. We saw new business customer relations

being established, a continued uplift in lending and a steady development in

core income, and we maintained our focus on cost management. Furthermore, credit

quality remained strong, resulting in a low level of loan impairments.

Our solid financial results and capital position enable us to be a strong

financial partner, providing expert advice and standing by our customers and

society in times of volatile markets.

With our increased investments in technology and customer offerings, we continue

to deliver on our Forward '28 strategy and are well on track to meet our

guidance for the full year."

Solid performance in uncertain environment

Driven by good customer activity across our business and our ongoing commitment

to efficiency, we achieved a net profit of DKK 11.2 billion and a return on

equity of 13% in the first half of the year. These solid financial results

reflect our successful execution and strategic focus in key growth areas.

Net interest income remained steady, as the adverse effect of the sale of the

personal customer business in Norway and a reduction in deposit margins was

offset by enhanced lending activity and our deposit hedge strategy.

Net fee income for the first half of the year was stable year on year, supported

by growing demand for everyday banking services in the first quarter, although

this demand decreased in the second quarter. Fee income related to capital

markets and investment activity was impacted by the decline in investment

appetite caused by the market volatility.

On the basis of continued cost discipline, the cost trajectory is in line with

the full-year 2025 guidance. Furthermore, credit quality remained strong,

supported by favourable macroeconomic conditions, including the employment rate.

Loan impairment charges remained low and amounted to DKK 266 million in the

first half of the year.

With prudent asset and liability management, our capital and liquidity positions

remain solid, with substantial buffers well above regulatory requirements.

"In the first half of the year, we achieved a solid financial performance,

fuelled by good customer activity that led to resilient core banking income and

an increase in net trading income year on year. Net profit was stable, despite

the impact of rates and market volatility. Our diversified business model and

operational efficiency contributed to an improved cost/income ratio of 45.4% and

a return on equity of 13.0%. We are on track to meet our 2025 guidance and are

progressing towards achieving our 2026 financial targets," says Cecile Hillary,

Chief Financial Officer.

H1 2025 vs H1 2024

Total income of DKK 27.9 billion (DKK 28.0 billion in the first half of 2024)

Operating expenses of DKK 12.7 billion (DKK 12.8 billion in the first half of

2024)

Loan impairments of DKK 266 million (net reversal of DKK 99 million in the first

half of 2024)

Net profit of DKK 11.2 billion (DKK 11.5 billion in the first half of 2024)

Return on shareholders' equity of 13.0% (13.1% in the first half of 2024)

Total capital ratio of 22.4% and CET1 capital ratio of 18.7% (total capital

ratio of 22.5% and CET1 capital ratio of 18.5% in the first half of 2024)

Resilient macroeconomic outlook amid uncertainty

Despite the challenges posed by geopolitical turbulence and market volatility,

the macroeconomic environment in our operating markets remains robust. The

Nordic economies continue to exhibit resilience.

The economies are increasingly supported by increased household spending power

and lower interest rates. However, this has not translated into improved

consumer sentiment, as retail customers remain cautious and consumer confidence

is low.

According to the latest macroeconomic outlook by Danske Bank Research, we

continue to expect robust economies with high employment rates and single-digit

growth, particularly in Denmark.

"Nordic businesses still have a cautiously positive outlook, and we share their

view that growth is likely to become moderately higher, despite the uncertainty

hanging over the global economy. Though conditions are in place with higher real

incomes and lower interest rates, we do not expect a strong recovery. Households

remain deeply worried about the economic situation, which could hold growth

back, but there is also a potential for the situation to improve," says Las

Olsen, Head of Macro Research.

Personal Customers

Profit before tax amounted to DKK 4,217 million in the first half of 2025 (H1

2024: DKK 5,028 million). The decrease was mainly due to a decline in net

interest income caused by lower deposit margins, a decline in fee income that

was mainly the result of positive one-offs in the first half of 2024 and

relatively subdued refinancing activity, as well as to slightly higher loan

impairment charges. These were partly offset by rising deposit volumes and the

impact of deposit hedging. Both income and operating expenses were affected by

the divestment of the personal customer business in Norway. Loan levels remained

stable, and deposits increased 5%.

Business Customers

In the first half of 2025, we saw continuously good progress in terms of

customer inflow and a positive development in lending volumes, and business with

existing customers remained strong across our mid-sized customer segment. Profit

before tax amounted to DKK 5,085 million, an increase of 23% from the same

period last year (H1 2024: DKK 4,140 million). The increase was driven by loan

impairment reversals. Net fee income also increased, although the effect was

offset by lower income from our leasing operations.

Large Corporates & Institutions

In the first half of 2025, we achieved solid financial results. Our efforts to

attract new corporate customers outside Denmark and to strengthen customer

relations across our markets have improved our position within cash management.

Furthermore, we maintained our leadership within sustainable finance. Profit

before tax decreased to DKK 4,544 million, or 9%, from the level in the same

period last year, with the decrease driven by higher loan impairment charges.

Danica

Net income at Danica decreased to DKK 714 million in the first half of 2025,

down 25% from the level for the same period in 2024 due to a decrease in the

insurance service result, which was impacted by a strengthening of provisions

related to legacy life insurance products in run-off. The insurance service

result for the health and accident business for the first half of 2025 recorded

a loss, however, Danica saw an improvement during the first half of 2025

supported by a positive trend in the treatment and prevention of long-term

illness and injury that was driven by intensified efforts with new healthcare

solutions and improved digital solutions.

Northern Ireland

Residential mortgage lending volumes continued to grow, reflecting an increased

market share of new business in Northern Ireland. Financial performance remained

positive with profit before tax of DKK 1,110 million in the first half of

2025, 18% higher than for the same period last year.

Outlook for 2025

We maintain our guidance and expect net profit to be in the range of DKK 21-23

billion. The outlook is subject to uncertainty and depends on economic

conditions.

Danske Bank

Contact: Helga Heyn, Head of Media Relations, tel. +45 45 14 14 00