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Contents
Management's report
4 Letter toour sharshølders
6 Francis mghbghts
7 Executive summary
8 Strategyesecution
14 Finance review
Business units
18
21
2a
7
30
33
35
37
PE
ar
æ
Persons! Banking
Busness Bønkng
Corporstes & inatitutione
Danske Capital
Danica Pension
Noncore
Otner Actvities
Caps! and hquidity Management
Investor Relstons
Corporste Responsbity.
Organisation and management
WAR 75
arr
Financial statements
45
48
ag
s2
ss
158
Støt
17
”.
Contøntn
Income statement
Statement øf comprehensive come
stance shot.
Støtement of capital
Cash fow statement
Notes
Denska Bank A/S
ment and reports
statement bythe Management
FEER
Management and directorships
180
185
Boerdet Directors
Exec Board
Letter to
our shareholders
Executive summary
12014 was a year of considerble progress for Danske Bank. Our focus on delivering vakse to eur customers helped
svengtnen vr underlying business and our røsuits? seys Thomas F Borgen. Chef Executive Officer. "Although me.
Sal have some way > go 1 meet our ambition and melse the Al! potente af Danske Bank the progress Cons
ar we are on track 10 deler on our targets. We mil conanue fø dligentiy ewacute our strategy to become a more
Evstomer-centne, ample and efheient Bank for the benet of both Customer and SaFeNOldE
+. Danske Bank Group generated anet profit for 2014
OFDKK 38 bilon. The net profit mas affected by
Boodwillimpairments of DKK 9.1 billion. Before
Hoodwil impairments, net prof rose Be
DKK 12.8 billion, against DKK 71 billen in
2013 and DKK 47 bilionin2012. The increase
was driven by growth in al income lines, fomer
fxpenses and fever Ian impairments.
+ The Board of Directors is proponing a dividend of
DKK 55 per share, corresponding 10 43% of net
profit betore goodvvilt impa menes.
+. Thereturn on shareholders” øquy after tax
was 2.48 for 2014. The return before god
Impairmente on shareholders' equity was 85%.
against 50% for 2013, andthe return before
od! mppirmonts on tangible equity We
103%, against 6.494 for 2013.
+. Netimterest income røse 5% rom the level n.2013.
despite persistently low interest rates Net interest
Income beneited primarily from ze FEBER
in April 2014 of the hybrid capital raised from the
Danish state, a higher investment Ceturn from GUT
hiquidity bond portfolio and lower funding costs.
+. Netfoo income totalled DKK 10:5 billion and was up.
1198 from the year-earkker level, mainly because of
;stronger customer activity at the banking uns and
Pomtive developments at Danske Capital.
+. Nettrading Income rose 13% from 2013, The
increase was driven primanly by higher Income
A1Group Treasury resuking from the sele of our
Shares in Nets and fuger Clent-driven income at
Corporates & Institutnons on the basis of strong
acuwky within transsetionbanking and Capital
markete. Income from our FIGC |Fined Income.
Commodries and Currencies] operations fed
because of persistontiy low vols. ow inter
fates and new regulatory requires.
+. Netincome from insurance business amounted to
DKK 2.4 bilen. sginst. DKK 11 bilon mn 2013.
"The increase m Income resuited from the boGking.
of the risk alowaner to income for all OFTE Or
interest rate groups and booking of part Of he
Operating expenses fell 5% to. DKK 226 bilion. and
ide costinceme rab0 before good mp mentS
improved 8.3 percentage points to 515%. This
Was aceved through ongoing cost ek kenEy
The goodwill impairments of DKK 2 billion are
the rest of asaumptions shout wanker long. form
mscroeconomic developments and reiste tø the
Activities in Finland. Northern Ireland and Estonia.
The goodwill impeirments do not relate to the
Dele shor!- tarm developmente at the ndividual
Loan smpeirments in our core activities remained
low and stod at DKK 2.8 bilion or 0.153 Of
tending and guarantees, gains 021% in 2013.
Tue resuit of Non-core activities, which consist.
mainiy of the portfolio øf Non-core Ireland
fsposures, was a los before tax GfDKK 15 billion.
against a ioas øf [IKK 1.8 biltonin 2013.
InNovember, Mondy's raised Danske Bank's tone
term rating from Beat to A3. Tv Improvement
followed the inerense by Standard & Poor's [S&P]
Of Danske Bank's fong-term rating 10 Atom Ain
Apel
The common equity tier 1 capital ratio snd
the totøl capital ratio were 151% and 19.3%,
respectrvely. against 147% an 21.4% at 31
December 2013. Our capital base remained Strong.
also after deduction 0! the proposed dividends.
War a hquidiny coverage ratio [LCR] of 120% åt
31 December 2014. eur hguidity posen sås
Fomained robust
Onie back of improvad earnings, reduced risk
levels. our strong capital øse and improved credit
ratings, tha Board øf Directors has decided ta
inæiate å share buy-back programme sf DKK S
Baton in 2015.
For 2015, we expecta net profit of above DKK 14
bilkon. Taking he goodwill impairmente in2014.
imo account, we are committed fo a return on
tgsty ef 8.53 In 2015 and 3 jong.term target af
above 12.53. Sen page 13for our full outlet.
Strategy execution
In 2014. we continued to make progress inimproving
ur finencist results and strengthe ning OU
relationship with customers.
Our tocus onstrengthening relationship with
bank ledto many different initiatives across the
Group We strengthened our sdvisory services th
a new offering for smal businesses and redesigned
sur advisory services set-up for young customers
in Denmark. We also enhanced the customer
programme in Denmark and introduced a similar
benefit programme for persona! banking customers in
Finland. For our business and mstittiona! customers.
"ra introduced new post: rade ar vice and improved
f&sh management solunons. These steps will, Smong
othar things, bring us formandto n new business Model
for Corporates & institutions. The changed model
will focus on attaming & more bal ncnd Income bane
fnrough inereased client-driven Income throughout
Corporates & institutions and less volatilty in income
from our FICC operations.
We focused on optmising customer offerings
throughout the Group 1 serve the Group's benking
customers in relation to pension product for example.
We introduced managed account products also 10
private banking customers and expanded te offering
bfahernative investmens.
we took slesding role in developing innovative
selutions, comstartly offering new solutions and
features that enhance the sasy banking experience.
MobilePay, MobilePay Business and the Danske
OneTroder trading platform are examples of this ele
MobilePay now has more than 1.9 milion users, and
some 5.000 businesses have started using MobiePay
Business or are inthe procass of starting. We further
steveloped MobilePay and MobilePay Business.
customers' needs. Our range of Mobile Pay solutions
row supports all typen of buninens customers.
including customers inthe public sector We also
taunched the digtal gude Danske Guide in Denmark.
and Finland and rolled out Danica Pension Check 10 sl
customers with a company pension scheme.
score /
mm
anis Cvomessmrsok CD Memeney DK
Wereaffirmed our postion 25 a Nordic universal bank
with a presence in Denmark. Sweden, Norway sad
Finland. We took steps to reinforce and expand our
Personal! Banking market poskions in Sweden and
Norway, aiming st gromth rates at the same level as in
Business Banking In both countries, we strengthened
tne management nar. in Norway, wa got ok ta
300 start with an agreement with the Akademikerne
sderation to offer our service to more than 100.000.
of ius members, and we continued tø develop our digital
position Danske Bank as a competive fuli-service
bank We focused on further strengthoning advisory
competencies and upgrading our dige offering
the positive trend in customer
Wuntne svecesstul execution of cost-reduetion
Iniativøs and cost Awareness in sl BrØs We
yduced expense to well below DKK 23 billion. The
measures included a recuction of cost rel
”salanes, consultancy services. marketing and other
dineretionery hems. We wil strengthan our global
worktorce setup wh Group Services oparanons.
in Lithuania and insourcing of activities in India
support further cost røduetions in thø coming years.
enda with our Windings
øfthe Non-core Ireland operatsons. Total lending as
reduced from DKK 837 biliontø DKK 37:5 bilhon. and
all transaetion accounts were closed After the firs
half of 2015, only the persona! mortgage portfolio mill
remain on our books. In respect øf our commereisl and
resident investment property portfolio, property
sales increased significantly and totalled 1.634
Properties. Mast afthe properties inthe remaining
portfolø are on the market, under offer or dispossd off
subject tø contract
Business review Baltics
Danske Bank serves personal and business customers
in Estonia. Latvia and Lithsania. End-2014.cur lending
volume totatled DKK 18.8 billion.
tuiding on a strategy of being a Nordic bank that
supports the needs of business customers also
when they do business ovtside the Nordic region me
want tø strengthen our existing business banking
operations in the Baltics to the benefa of Nordic
well as ice! business customers. We wil! leverage our
strong group efferings and products by enhaneing our
setupter onkne business solutions and introducing
market isading business products Within transacuon
bonking such as cash management, to our Corporate
customers. We will support this process by imvesting
srouns DKK 100 million over the øst 1-2 years,
majniyto establisha shared IT platform for the Baltic
banke with considerable intøgration anith GrØUp
systems. The focus on corporate customers and
improved product and service offerings are expected
to drive profitable grow
ur current personal customer operanons in the
Balics do not have sufficient scale to generet.
»cceptable return, and we do not foresee a turnaround
sostainable profitabdity level. We have tre
decided 0 exit our personal banking operations and
are considering varous options. We will honour Our
øtligatons to service our current customer base, and
ie ext could theretore last for several vers The
mamber of branches and the headeount will be reduced.
From I January 2015, ihe personel banking activities
il be presented a5 Non-core operations.
Revised targets
Wah our financial performance for full year 201
are well on our may tø meeting our Shorter m finanesM
ambition for the return on equity. The good
impairments recognised in 2014 mean thot our 12%.
targetisadjusted tø 125%. At the same time. ur 0%.
target for 2O1S in adjustød 0 0.5%. We sim to achieve
125% by 2018 at the latæst.
1m2014,we saw a postive development from our
atforts to improve our ratings, With upgrades From
bon Standard & Poor's [S&P] and Moody's. We aimto
continue to improve our A ratings. which will require
another upgrade fram Moody's and n change in the
S&P outlook.
We are maintaining the target for our capital ratios
ata minimum et 13% for the CET] capital ratio and
17% forte total cspital ratio. We sim to keep our
enpital ratios comfortably in øxcess of the Minimum
targets in Order 19 maintain a strong Caps! poSiLiGn
Intha current oW-growth environment which emMes
macrosconomi and regulstory uncertainty. we
consider a CET capital ratio of around 14% and a total
capital ratio well above 17% as appropriate levels. We
reva our captal poley at least once year.
We have previously announced alonger-term amba
10 make dividend payments of about 40% Of et prof
forthe year, once this is deemed prudent The Strong.
espital base and the credit rating upgrades achievedin
2014 enable us tø meet this ambition vet the dividend
Payments proposed for 2014. Going forward, me rl!
'strive to pay ordinary dividends of 40-50% of net
profit
Women to retven races cap
From time to time, we may adjusttne cepital structure
tnrough distribution if øxcens Cph mm
atter ordinary dividends høve beg pad and Cur
targets have been met.
|
|.5% before
on eaty Moe 1es%e [goden
Ratings Aratings S8P/Moodyt
AVAS/A
Dvidend payments … Payout af 450%
Bridge to a return on equity of above 12.5%
and dend grovt we espeet salylse gratin
continuing focus on customer satisfacon. praduc
pneing wil imprave our financial performance. In
addition. our plans for Sweden and Norway wil drive
enable more business at Corporates & Instrutions
& insututions, we are changing the business model
improvements in the resul at Danske Capital and
43% 0t net pri
5 plane 85%
fromS&PinAprid —— improvedto stable
Metwih 2015. Poyout of 40.50%
Payments Iøroposed] Of net pro
level. In addition. our non-corø business in Ireland wil
therefore no longer have any significant effect on the
Capital optimisation is also an important partef our
øftne product mix wil tøke capital requirements im
the increase inthe return on equity. along with our
Bividend proposel for 2014
In line with our dividend policy. he Board of Directors
Is proposinga divdend for 2014 of! DKK 5.5 per share.
or 43% of net profit before goodwill impairments. For
2013, we pars dividend of DKK 2 per share.
Atter ine ordinary dividend psyout and given our
improved sarnings, strong capita! base and crødtt
rating upgrates, we see room for 3 further distribution
to shørenolders
Tha Board of Directors has therefore decided to adjust
ur capital structure and initiate a share buy-back
programme of DKK 5 bålion in 2015. As a replacement,
fn whole ori part. af the redeemed equity. me
consider other means of
optimising the capital structure and with the objective
19 maintain adequate excess capital reletive 0 Our
minimum capital targets and the minsmum regulator
requirements. During 2015, we will continue 10
Wit our proposat for dividend payments and share
buy-back, we remsin weli-ceptalised and confirm our
strong commitment to maintaining a strong capital
Pase wile returning excess capital to shareholders.
Customer:
atisfaction
forts to strengthen our markt position.
improving customer satisfaction remains a key.
prioray. We have not yet reached our overal target of
vøing ranked number oe or BWD in our focus SOgMEnt.
have tskøn stops in the right tret.
The charts below show our current ranking among
peers in our focus segments in each country.
[IN
Corporstes & institutions
Number of Prospera surveys by ranking
in top 3 or out of top 3
2014
-=-o—9—09>
Corporates & Insttutions saw high customer
satistaction. Again in 2014, customers across he
Nordic countries awarded vs the number one pOSstiOm
1 Institutional Banking, Nordics (Prosper survey.
We also received the number one position in Corporat
Banking, Denmark. and runner-up position inte
Nordics. Intotal. Corporate & Instkutions ranked
In the top three in 57 out of BA survey in the Nordic
countries, with the number one position in 24 Surveys.
Business Banking customer satisfaction
Below target Ontarget
emm—-
stendily improving. and in four of five markets, we
were above or on par With Our peers. in Denmark. we
ya slightly positive trend since mié-2014, but
vur posnion was unehanged.
1n.2014. Danske Bank Sweden received the prizeas
the Best Business Bank of the Year in the Swedish
Finansberometern survey. sharing first place WRN
high ratings in their evaluation of the quality af
ottering.
AxPersons! Banking. customer satisfaction is below
and Finland, however, satisfacuon 3mong person
albeit from a low level. In Norway and Northern
Ireland. customer satistaction declined tø Belom-targe.
Personal Banking customer satisfaction
Below target
— —
Ontanget
mvere named best private benking benk in Denmark
Danske Bank Private Bankingin Norumay as rated
number one Prosper suevey
tistaction, and wa ranked second in the Nordic
market in overalt performance and market penetration
fProspera survey
ranked Darica Pension fourth oversl in Denmark. Gr
we saw postive developments
improved customer satistaction remains a key.
prerequiske for achieving our long term goals. Im.
markets and business units. While we are on target
however, We expect the imprevement 10 continue, as
hule attieulto deliver on our overall target
ranked number one or two in our facus seg mens
bythe end of 2015. However. we remain El
committed to our target of being in he top BAD Er ØBS
"our business units, and we will continue our efforts.
to improve and monitor our continued progress very
dlosely.
Market conditions
Conditions in the financisl markets:
122014. the gjobst economy improved but was subject
19 substantia! headwinds. The stock markets finished
higher, albet with large fluctuations during the year,
"especially n Europe, Bond yields incore Europe fell to
aew historical low ns inflation dropped clase to zero
and the recovery did not take hold.
Tha events suring the first wesks of 2015, 1 particular
ine unexpected action by the Swriss cemtral bank and
in quantave sasing programme announced by the
ECB, show that Europe will continue 10 struggle with
Conditions in our home markets
Tha Danish economy experienced slow. modes
srowtn throughout 2014. Growth was driven by.
slowly Increasing domestic demand. EMpIoy MERE
sdually as well and house prices continued the
positive trend of ike past couple of years. Domestic
srowth and the housing market in particular were
imulated by Very low interest rates Export gro
vas kmited by persistently Iow growth rates in Europe.
Agricultural øxports in partsoular were såvernely
affacted by the economic sanetions between Russia
and Earape. Growth is expected also in 2015, but st
aa slow pace.
The Swedish economy also grew slowiyin 2014.
mainly becsuse of domestic demand driven by record
flow interest rates. House prices rose also in 2014 and
æhed a record-nighlevel. The higher house prices
and inerunsed household det prompted the Swedish
cemtra! bank and the FSA to intensity their effort
10 rødrans macroeconomic imbalancen. We expect
growth to slow over the coming year 5 domeste
demand abo
an Barm /MAØNSAL MEST Os 13.
The Norwegen economy remains strong. but the
sigmfhcant drop in oil prices since August has made
Norway more vulnerabie. Ol! investments are expected
10 decline, but stronger global gromth, a weaker NOK
and supportive fiscal policy are kkely to support
secent growth inmainland GDP 2015.
The Finnish aconomy began to axpand again, albelt
lightly. im 2014 despre pressure from the Sconomic
”sanetions between Russia and the EU. The wesk:
recovery is expected to continue in 2015. but gro
wil depend on a stronger export performance 16 mas
up forthe fall in exports to Russia.
Ireland and Northern ireland are showing progreas,
win positive growth, declining unemployment and
møing house prices. The positive trend is expected to
carry into 2015.
Outlook for 2015
Our guidance for 2015 is based on sxpectations of
slow and stil fragile macroeconomie growth and a
continvation of ow interest rate levels in our Core
We expect total income at around the same level as
In 2014. Income wil benefit from iower funding costs
and sightly higher customer setivny.In2O14. ncome
benefitød from th sale of Nets and tha booking of par
øfthe shaow sccount balance at Danica Pensson.
Expenses are expected to be below DKK 22 billion.
Impairment charges in our core ct
to remain at a low level.
es are eRpected
We expectnet pretit for 2015 of above DKK 1:
This guidance is generally subject tø uncertainty
and depenés on economic conditions, including the
development in monetary poly by the central banke.
Bur trading Income and insurance business Income
are particulariy uncertain. The 2015 results for trading
and insurance will depend greatly on development
inte financial markets and the possibilty for Dane
Pension to book the risk allowance and part ak he
balance onthe shadow sccount to come.
Financial review
1n 2014. Danske Bank Group posted anet profit before
oodwit impairments of DKK 12.9 billen, upDKK 58
Bahontrom the level in 2013. Net profit was DKK 38
balion. The net profit before goodwil impairments was.
interim report for the first nine months of 2014.
Income:
10% from the level i 2013.
Net interest income totalled DKK 23.1 billion, am
hybrid capltal raised from the Danish state and higher
imerest rates and an adjustment of the funds transfer
Charge payable by each business un for funding.
imthe hquidky market. The adjustment caused
corresponding increase in net trading income and
Nettee income rose 11%10 DKK 1055 billion. Netfee
al banking units and postive developments et Danske
increase of 13% from the year-sarler level The
21 Grosp Treasury. including the gain of DKK 10 billiom
Corporates & institutions, lient-driven Income røse on
and the capital markets. Income from our FICC [Pike
Income, Commodities and Currencies] operations fell
and new regulator requirements.
bilion. The increase resuited from the bosking of the
rate groups and partial booking af the Shadow account
Expenses
Operating expenses fell 5% t0 DKK 22.6 billion
developments and relate to the acuvkies in Finland.
Northern Ireland and Estonia. Since the impairments
Expenses tor VAT. banktax and financial services
Losnimpeinments
DKK 28 bilkøn, or0.15% of ending and guarantee
guarantees, in 2013.
rel of individual impairments in core activities
oo N
Tox
DKK 40 bilion, or 236% of the profit before
042014vs 032014
Balance sheet
Lending
Arte end of 2014. totallending was up 2% from
InDenmark.new gros kending excluding rep loans,
Our market share of total lenging. including repo
fre end of 2013, and also the market share in FInIBNd
epos, mortgage bonds and other covered bonds,
Deposits
”orded in ail markets. The Group malntaned ms
Credit exposure
DKK 3.385 bilonat the end of 2013. Exposure rom
BKK 1.074 bilion o! the total credit exposure. agBiNst
Home ans to personal customers aecounted for
gualny of these portfolio is good.
Risk Management 2014. avallable at danskebank com
ir provides details on Danske Bank's credk Fiske.
Credit quslity
andens. credit qua lily has improved since the end Of
2013. Total non-performing Ioans (NPL] amount 10
coverage ration, after Collatera! hasreuts. remaned high
Tnerisk management notes or pp. (138-139) provide
== ER
Accumutates indivdualimpairments amounted to
DKK 280 bilkon.or 1.50 lending and guarantees.
Accumulated collective impairments amoumted 10
BKK 315 biton and DKK 3 3 bilion. respective.
Recognised losses amounted 0 DKK 5.3 bilion
against. DKK 5.0 bålionar the end of 2013. Of tnese
Asset Quality Raview
Onthe basisofthe AOR. the Danish FSA assessed
in Octøber 2014 that impairments should have been
frst nine months o/ 2014. The remaining amount Was
in adetion, we received orders to improve the impair-
ant process And to iMplement a Model that ENManEDE
fe use of market-mplisd data from the Valvation of he
sas mplemented in the fourth quarter witha agave
offset by the release of unsmorised customer margins
at øonskebank com fir
Trading and investment activities:
smounted 19. DKK 1.074 billen at 3) December 2014.
Against DKK BB billion st 31 December 2013.
Bilkon, against DKK 73 billion at the end of 2013. and
the total bond portfolio, B4.0% was recognised at fair
value and 16.0%at amortised cost.
Changes to financial highlights 2015.
Im 2015, tre following changes will be implemented sm
Bank Markets to Group Treasury during the third
avarterof 2014. At Danske Bank Markets, the cost
of holding the liquidry portfolio was bosked under
net trading income At Group Treasury. the cost will
interestincome from 1 January 2015.
been disclosed 25 net trading income. Income from
disclosed as such from 1 January 2015.
acuvities in the Bale. Consoguently Bale
persons! benking customers are transterred to the
Personal Banking
We continued tø deliver an our twa customer promises:
making it ensy for our customers to bank wh Vs.
and providing prosctive financial care. Moreover, we
further oxpanded tø offering under our customar
programmes and strengtheneé our specialist services
19 young customers and private banking customers In
view of our growth ambkions for Sweden and Norway,
ve took initiative 0 strengthen og market pons
inthose countries.
Consolidating our customer offering
We further strengthened the offering under our
customer programme in Denmark. adding new banet
such 5 investment services an hscounts on certain
customer packages for customers aha ars al
business customers. One ofhe impravements is that
we include labour market pension savings at Danica
Pension in customers business Voks Wihus.
In Fimand, we successfully lsunched ø similar bene
programme that rewards customers who use our
We strengthened our offering 5 young customers
in Denmark by lasnching Young Direct =a team of
specialists serving young and student customers.
Convenient mobile solutions.
Our banking apps are now available for al] smart
phones and tables, and our unique spending cverview
ble in all markets.
Tue number of registered Mobile Pay users in Denmark
encevded 1.9 million, and with the rapidly cease
number af businesses [both online and physical and
public suthorities that accept payment by MobilaPay.
ransaction volume is soaring. In the fourth quarter,
ynesetion volume eXceded
In Denmark and Finland. we launched Danske Guide
in our mobil. tablet and eBanking solutone
proactively offer customers individsalised advice om
How 10 optimise ther finances.
"Strong private banking offering across
border
we continued to strengthen cur relstions with priste
banking customers through s 360-degres pers pactive
on their assets and finsncia! opportunities.
We turther developed our mternationat offering tø
accommodate customers increasing MObiIty. and we
are successfully positiorung our London branchas an
anractive choice for Nordic private banking customers
living in theUK.
We received 3 namber of awards that reflect our strong
øftering For example, we were named the best private
banking bankin Denmark by Euromoney magazine and
Financial Times. and Danske Bank Private Banking im
Norway was rated number one in a Prospera survey.
Personal Banking in Sweden and Norway
"The potential for growing our business in Sweden and
Norway is good. In Norway, we got off to a good start
wir an agreement with the Akademikernes føderation
tøeffer our services tø more than 100.0006! ts.
members. We also launched a digital mortgage guide
tnat helps customers looking for a new home to make
decisions, not only on finøncing but 210 on Saving
and insurance. according to thesr life situstion.
In Sweden, we further strengthened our sdvisory
competeneles. prometed our ful-service offering
in nationmide campaigns and upgraded our digital
vftering with he popular spænding overvie.
2014vs 2013
Profit before tax ané goodwill impairments increased
650% to DKK 48 bilion, and the return on llocsted
capra! before goodwill impairments smproved 45
percentage points to 14.8%. The main reasons ere
tower loan impairments, improved fee and trading.
income and efficiency gains.
Total income amounted tø.DKK 167 bilion. Netto
Income rose 9% and net trading Income rose 12%
wing mainlyto higher market activity within housing
Operating expenses decreased 9% because of omen
"d preminen conta and backoffice efficleney
Loan impairments fell 2536 10. DKK 1.4 bilen 25
novsehole finances improved.
Credit exposure
in 2014, mainly because Of the inclssion of loan offers
Improved credit quality
jenmark's loan portfolio. The delingen
improved in most other markets 25 the proportion!
Nowever, because of further 0
042014vs 032014
Business Banking
We continued tø improve our customer offering by
making it easier to bank with us through targeted
solutions ans improvøment of our Øagital channels.
We introduced a new advisory setup and atractive
customer packages for small businesses and
successfully launched MobilePay Business and
2 MobilePay solution for municipalities. We also
delivered on our promise 10 increase the speed of
eredit processing.
Incressed business momentum
Business Banking generally saw incressed business
momentum. with a popitive trend in volume in al
markets, particulariy in Finland, Norway and Sweden.
Targeted solutions
After the launch in May of a new advisory setup
and atractive customer packages for small Danish
vusinesses, u saw a strong creme in customer
flow in this segment. This contributed to a net inflom
ofcustomersin Denmark in the second hst of the
veer. The incrsase was sis owingto the launch of
MobilePay Business an our enhanced setup for start
"op businesses, These businesses now have access
10 a dedicated team that provides specialist advice,
which is part of ur efforts 10 Support na bu Sinase
initiøtives in Denmark.
Im December. we Isunched the smal! business
customer sokitions in Norway, with prosctive advice
and complete banking packages tallored to the nende
ofsmall busmesses.
Initistives well received by customers:
Inthe Euromoney Res! Estate Awards 2014 survey,
Realkredit Danmark wras named the best provider
ofresi estate products and services to busine
customers in Denmark, and the survey reflected our
genera! progress in the Nordic region. In2013. me
established specislist centres for large real etøte
customers inthe Nordic capitals, and the award shows
nat customers apprøciste this tørgeted appronch
Wo were also named businens bank of the year by.
Swedish companies in the 2014 ”Finansbaromet
survey. The award shows that our strategse ink
are wel røcesved by customers.
Essybanking
In Februery. we sunched Mobile Pay Business in
Denmark. The solution enables retailers to receive
Payments from their customers through mobile
phones, it has become the leading mobile payment
solution for businesses, and by the end cf 2014,
some 5.000 businesses had started using Mobile Pay
Businens or werein the process of starting. In
November. we expanded the solution to three packages
(MabePay Business One. Plus and Pro] enabling
customers to choose tha package that best meets ther
In July, we introduced MobilePay Online fora hmited
number of online røtallers, enabling them ta receive
Payments from their customers through MobilePay. In
fBetober, we launched a solution for municipalities that
enables users touse MobilePay to pay fora number of
Services, and more than 30 municipalities ave Ao
started using the solution, Oar range of MobilePay
Solana now supports all types of busineas
customers, including customørs in the public sector.
In the fourth quarter, we added føstures 10 the Mobile
and Tablet Business apps, Sue AS MEW OPONS FO
<omtøcting us when it sus our customers.
In addition, smal! businesnes can now Ep for
financing 24/7 via Business Online ané Business
sienking as well as on our website. We also added
an option that allows new customers tø sign up on the
website, providing a smooth customer experience and
short ranponse time
2014 vs 2013
Business Banking's return on allocated capital before
goodwill impairments impraved from 109% in2013 10
135% in 2014, mainly becøuse of a significant drop in
Joan mp irments,
Total income increased 1% 25 income initiatives and
more business compensated for Tower interest,
levels and 2 reduetion sf the FI FleXLåne loan volume
to reduce refinaneing risk.
Wanan increase o! 8%. net fee income showed 3
satistactory rand.
trading income fell primarily because of sharp
redveton inthø FI FlexLAnt Ian volume.
improvements an lower costs før IT ane consukancy
Credit exposure
Credn exposure to business customers amounted 10
DKK 711 bilion at the end of 2014, agninst DKK 630
bilionarthe end øf 2013. The increase was partly the
Credit quality improving
from DKK 18 bilkonin 2013, 8 røduetion of 42%.
Impoirments. primarilyin Denmark. and im
smpairments rølsting 10 the commercial property
«etoriorated over the second half of 2014 because of
042014vs 032014
EDGE EDR,
Corporates & Institutions
We kept our focus on cllent-driven income and les
cspitabintensive activities. We introduced posttrade
services for corporate and institutionel hente and
Iaunched Danske OneTrader, an electronie foreign
eschange trading platform.
Transformation of the business model
We continues to transform our business model to fi the
"raw regulatory emironment and to withstand changing
marke døvelopmentn, This entalin attaining a more
balanced income base through increased chent-driven
Income andens volstilty in Income from our FICC.
operations. Part of the strategyis todevelop a stranger
capital markets and transaction banking operaen
byleveraging sur good chent relstions and offering
additional services and opportunities in this anes.
Tis will resskt in 3 more bølancd income sistribution
between arsas with differing return Gynamics.
As illustrated bel elient-driven income from Capital
Markets, Søles and Research. and Goneral Bonking
ise and amountedto DKK 8.2 billion for the ves,
59 17% rom 2013.
m me as os 0 oe as os
Minns OD Captsimnten
BD søm menmeeen DD) Geen Bane
Imthe second quarter of 2014. vre took Intiatives to
reduce our cost bane and røpnritise FOB0urEn tø IE
capital-intensive areas with more advisory Content.
Capital Markets
Capital Marksts' ectivity was strong throughout 2014.
ALDKK 0.8 bdlion Capital Markets Income rose
44% from 2013. The increase was owing to positive
development in number of
Corporate Finance won several! key mands
including DONG Energy. Meda. and Grånges. OU
tnree PO mandens.
record year, wh included
Equmves further developed the franchise with good
specially within equity cap
Leveraged Finance had a strong ysar with high client.
Debt Capital Markets won severateuro benchmark
mandates from European sovereign, including
Finland, Sweden. Ireland and Portugal.
Tnare was tugh actviy wthun new corporate issues,
onelvæng euro transactions for Avinor, Danfoss and ISS.
Corporate high -yield sctivity increased subst ay
and included a joint bockrunner role on alarge high-
yleld bond issue of SEK 2.5 billon for Com Hem.
(General Banking
Chent activity continued tø increase, especially
within ending and cash managament, which drove an
Ineressø in General Banking ncome of 18% from the
Customer satisfaction with our transacuon banking
produets remained very high, with clients ranking
Panske Bank number one in Trade Finance for the
fourth consecutive year and number one in Cash
Management in the Nordics [Prospera]. Euromoney
also named Danske Bank "Best Regsonal Cash
Manager" the Nordic and Baltic regions.
The post-trade services solution launched in the first
auarter of 2014 in Cooperation with Tryg is a good
xample of how our transachon banking services are
improving and how we are expanding hent FelaOns
rough cent. focused innovation.
We inmiated the process of consolidating the full
value chainin Transaction Banking As a result of
this consolidation, the staff number at Corporstes &
institutions increased in the fourth quarter of 2014
and will dos0 also in the first quarter of 2016.
Mørket Making:
The underlying conditions for Danske Bank's
operations in the financial markets have changed
over the past couple of ysars. Persistentiy low interest
Fate. Iow volatilty in rates and new FEguIstorY
requirements are the conditions we are adapt
sales and Research
Dønske OneTrader. our elsctrome foreign exchange
arading and market information platform, mas wel
We cominuedto develop our imternationsiy
feseareh capabilities in order te service the Complex
2014vs 2013
ALDKK 41 bilion. profit before tax was up 23% from
hent sctivity and mnereased net interest Income The
return on allocated capita remained stable. however, a8.
spital nerøased because of regulator regsirements.
Both netinterestincome and net føe Income contribute.
tøthe mprovementin General Banking income of 18%.
Net interest Income wa Griven by a higher londing
votume and hugher margins. Net fas income was fuellød.
by lan origination and refinancing ctivity. Cash
Management activsies contributed 10 the merease im
corporate finance activities continued tø increase
Sales and Research benefited from increased cent
how across almost all products.
Market Making income decreased as difficuit marker
conditions involving Iow rates and low voletihty
Opersting expenses maintained the level from
2013 despite restructuring costs resuiting from the
sdjustments made in tha second quarter of 2014.
Los impsirments were down 2196 in 2014. New
impirments were made for 3 small number of Chents.
Creditexpøsure
"The loan portfolio quality at Corpormtes & institutions
isconsideredtø be strong At 31 December 2014. total
€redit exposure from lending activities, inchuding Fepo
portfolio inereased 36% from the level at ynnr-end
2013. driven maily by further lenging to existing
nstuDons remained stable. while sovereign exposure
natural fivctuations in deposas with cemtra! banke.
Impæorments have fluctusted over the past six guarters
and are expected 10 continue to do so quarter
on-quarter Total mpairments far Corporstes &
Insttistiansin 2014 were down 21% from tho level in
2013. Accumulates impairments fallowance account]
ef corporate clients.
Tue sovereign portfoho consists prnmarily ol.
exposures tø the stable and highly-ratad Nordic
sovereigns 25 wel 25 tø central banks. Most ofthe
ending facilnies. The corporate portfolio sa diverse
portfolio consisting mainiy oflarge companies bane
inthe Nordic countries and large international clients
with activities in the Nordic rogson.
042014 vs 032014
EEN PEDE ERR HEDE MODE
OenerstBenking none dnruted san
Rammen IEEE Manybesm RES vs NV
RErensEs sten em
Sneen mene
Danske Capital
Investment performance
has ahvays taken priority at Danske Capital. The
table below shows the percentage of Danske Capnals
for various asset classes in 2014 and for the period
2012-14.
112014, 58% of sl! Danske Capitatinvestment
products generated above-benchmark returns It
van especially gratifying to
performance of equity funds improved in the latter part.
by the low saration of he fied-income portion. A
further fallin interest rates consequentiy resuled sm
iterative investment products generated satistying
On thres-ysar Horizon, 73% of all Danske Capital
Investment produets have generated above
The average Momingstar rating of all Danske
gr remained at 30. The ratings 8 Europe-wide
"parison af similar funds based on the risk and
In 2014. we were proud to receive various awards. the
quis in Denmark for the sixth year running
recerved the HEM Award and the Hodge Wøsk.
Artractive investment products and
concepts
Danske Caphal continued to focus on strengthening
product offerings and compotenciøs within hø hedge
fund product range, shernatsve investment, the
product iaunches.
Te hedge fund ares has been successful with total
assets under management at ihe end of December
æmber 2013. In 2014. Danske Capital introduced
important development in our efforts 10 make Danske
products sis 0 retail ehents. Personel Banking and
Danske Capital have worked closely together in this
area 10 achieve good customer experience. The
concepts now available in alle Nordic countries,
sne st tha and of December 2014, 5sets under
management amounted to DKK 121 billion. an inerense
Internstionel activities
all net sales in 2014 was tø clients østside Denmark.
”wth inassets under management of 22%.
vænne
Higher retøil and institutionel sales
Net sales totalled DKK 34 billen: DKK 16 billionto
iønts. Sales 0 retail customers through the Persor
Banking and Bu
2014vs 2013
bison. Performance fees were daw"
042014vs 032014
10 deliver competæve invøstment
returns, enhance the customer experience and improve
cor advisory services 10 our customers. We introduced
online solstions aimed atimproving accessility and
ensuring that customers get recommendations that
matchthelr individual noeds.
Improvad offering for banking customers:
We cominued to work closely with Personal Banking 10
provide customers with attractive pension offers and
soistions. This cooperation has been a success, th
premiums incrsasing DKK 08 billion. or 17%. from
213 to201e
Ontine solutions and improved accessibikty.
We offer business customers an online Solo BE
makes it possible for Mew employees aa COMPANY LO
inom according 6 these speci nØeds.
Customers appreciate the flexibility of being able ta ok
atthør penszon schemes arhenever i Suits them Some
40% ofour customers net up their pension scheme
ouside normal working hours.
We improved accessibility by expanding vur Opening
Wours throughout the week.
Switch from conventional to life cycle
products
Inthe fourthasarter o! 2014, some 10.000 customers
fane guarantaed interest rate groups were offered
10 svnen from thø conventional product, Dance
Troduionel,totha te cycle product. Danica Balance.
Aryear end, 59% had accepted the offer and received
compensation for forfeung ihes gunrantees. The
offer was made in accorance with new Denish FSA
kuidelines
Helping customers convert pension
schemes:
Some 51.000 customers. witha total of more than
DKK 18 billion in capital pension scheme, chase
toswitchto aretirement savings scheme. Pension
customers can convert their existing capital pension
schemes to retirement savings schemes ata lower
solutionthet makes it easy 10 coaverta scheme.
hvil also be possible 10 convert to the new scheme in
Er
Investment:
1a 2014, Danica Pension announced a new
tegytor
anvesmens meluding direct investment Im the Nords
fegson, to strængthen the return 0 customers and other
By year and. Danica Pension had made the first direct
investments and had invested DKK I bilionina fund
for investment in small and medium-Bized Danish
companies. The number of direct investments wil
fneresse in 2015.
2014vs 2013
Activtien in Denmark
In Denmark. totalpremiums increased S%t0
DKK 19.4 bilion. Premiums pøid through Danske Hank.
Danske Bank and Danica Pension regarding pensions.
Premiums for the Dnice Balonce, Danice Link sd
Danice Select unitiinked products meluding translers
rom Denics Trødtionel19 Danico Balance. rose 12%. At
ie end of 2014, sbout 200.000 customers had chosen
tas products. As expected, tal premiums for Danice
Tradmoneldecreased, falling 143610 DKK 4.3 bålian.
Atthe endt 2014. the collective bonus potentisi for the
contrution groups was DKK 25 blion, up. DKK 13
bilion from the level st I Jansary 2014.
Activities outside Denmark
Danica Pansior's activities out
premiums cf DKK 74 bilion.
ide Denmark generated
Arthe Swedish unik, total premums fel 8% to DKK 58.
bition mamly because of ektraordimarily strong sales
ef theeustody account savings product in2013.
DKK 16 bilon, prmanily becsuse of lower sales in
distribotor mm 2013.
Return on investments
nked peaducta ræs DKK 8.1 lin, representing an
average rate of return of 9.4%, agninst 816% in 2013.
"The average annusireturn rate lor the post five years
rus 765% for Danica Balance and 8.3% for Denice Link.
customer Funds was 140%, ogsinste negative 2%.
returnon customer funds was 72%.
For Danica Troditionel, equity. credit bond. sternative
agsinst 374% in 2013.
sgainst DKK 1.1 bilion in 2013. The booking of the
banan rom the shadow account, wluch st the end of
2013. tø Group bosked the risk allowance for three of
ne ofthe groups.
The technical result of Danic Tradtionel mas
KK 1.237 million, agsinst DKK 1.139 million 2013.
DKK 573 milkon, an inerense from 2013 of.
technical result of DKK 302 million. an increase
negative rur-off on clsims inthø Danish business.
The return on investments rose 10 DKK 441 mihon,
042014vs 032014
Non-core
erne SE
we continued 0 focus on the contreled winding-up of.
ine foan portfolio that is no longer considered part of
Danske Bank's core actwvities. The process progressed
Reduced exposure and higher property:
Om 1 January 2014, all Irish customers in Business
Banking and Personal Banking Were transferred to
ne Non-core freland portfolio, and later in the year. al
Artheend of 2014. the Non-core Ireland portfolio
<onsisted øf a personal mortgage porto of DKK 174
balion and a commerciat portfolio During 2014. hø
commercial portfolio was reduced from DKK 82 billion
property sales. Intotal, 1.634 propertios were sold im
maining commercial portfolio includes 1.589 proper.
"The sales are expected to bo finalised in the fS Fa
2014vs 2013
192 loss of DKK 15 bilkon, mainly because OF lower
impairments against Ion in the conduits porto
products inthø Baltics related to the scquisition ef
amp Bank. Together: these factors accovnted for
about one-third oftha loa in 2014.
Lending amounted to DKK 375 billion and consistød
mainly of exposure to commercial and investment
property customers, conduits and personel Gustomers.
Total ending fel DKK 16.2 billion from thelevelatthe
end of2013as aresultof asset såles. repsyments and
Net credit exposure and impsirment charges:
Net credit exposure totalled DKK 313 billion, agsinst
DKK 42.8 blionat he end of 2013.
Total impairments decreased in 2014 ang amounted
development was driven by lower impeirments agsinst
property market resulted in net reversals of previously
Non-core Ireland
"Tha net credit exposure 10 Non-core Ireland was re-
suces rom DKK 297 bilkonto DKK 202 billion at the
and et 2014.
2015. the portfolio will consist of the personal mørt.
Sutsourced and the portfolio will mature Becording 10
Ion is expected, and the roquirad costs and capital wil
be lower.
Non-core condvits etc.
Ta remninder of the Non-core portfolio is mainiy
exposure to consul. Net credit exposure 10 Conduits.
"te, smoumted tØ.DKK 11.1 billion, sgsinst DKK 131
bilion at the and of 2013. The portfolio consists mainiy
otligudity facilities forcondults. The credit quality of
te portfolio remained stable.
042014v803 2014
Samynavom AR,
Other Activities
Treasury monitors hquidity risks on an ongoing basis,
and theliquidity portfolio 5 regularly adjusted 1
reflect changes.
Te haukdity portfolio 18 ncorporated in balance
sheet management 0 optmise the balance sheet
Composition and minimise tha cost of holding the
quidty portfoho In addon, the transfer of the
portfolio will further nimpify operationel and
regulstory governance.
2014vs 2013
Other Activities posted a profit before tax of DKK OR.
bilion, against a 1oss of. DKK 15 billion in 2013.
As part of the optimisation of our iquldity bond
portal structure. we continued 10 bud up our hold
10-matanity bond portfolio. a5 well as the investment
secure portfolio. which caused an ineresse in net
Net trading income benefitad from the positive affect
trom the sale of our shares in Nets, but was adversely
aftected by higher expennes fora financing guaranter
covering certain pension obligations.
Operating expense amcunted to DKK 0.9 billion. the
same level os in 2013. Property write-downs had
negative effect on expenses, while a refund of VAT
Paid inprovious years had a postive effuct. 042014 vs03 2014
agere DKKBEET RE man FUE arter
recent anegnne
Bkkaso orker garnet
Fetmeetsstsæres
annan nar
Capital and liquidity
management
Capital and sølvency
Benske Bank's capita! management policies and
practices support is business strategy and ensure
tnat its sufhtelently capitalied 0 withstand severe
Danske Bank has set capital torgets: a total capital
ratio of stlest 17% and a common eguity tier I (CET)
the targets since the end of 2012. inte current io
end regvlatery uncertainty, Danske Bank consiters
ratio well above 17% 85 approprinte levels. We revise
our cepkal policy atieust once a year. The capital
Structure may be adjusted through stribetone i
excess capital is avallatie after dividends have been
paid and our capital targets hove been met
Arthoend of 2014. thø total capital ratio was 193%.
and the CET 1 capaal ratio wes 15.1%. The ratios are
æalcuisted after Seduction of the proposed dividend.
Artho end of 2014. Danske Bank's solveney need
»mourted to DKK 82.2 billion, or 105% ofthe total risk
exposure amount [RE AREA wan previously reterred
1oas risk-weighted assets (RWA] At 31 December
2014. total capital thus included a cspita! buffer of
DKK 75.3 billion.
REA rose DKK 14 billion fromthe level in 2013. måiniy
imeresse of DKK? billion &t 31 March 2014. The REA
declined in the third quarter, however. This was wing
fon reduction of the temporary ad6-on of 3 percentage
points 10 the risk welghts for the corporate porttolia,
uhichs separate from the 10 pørcentage points.
required by FSA orders. This led tos decresse inthe
REA of. DKK 21 bilion.Intho first quarter et 2014. the
Group began to deduct certain secuntisstions from
CET capital instead of risk weighting much positions.
This reduced the total REA by. DKK 13 ballon.
at Personal Banking, Corporate & institutions and
Non-core, and this also contributed to the total REA
feducuon,
112014. Danske Bankissued a total of DKK 56 billion
ofaddstionsl ter I captal and total or DKK 37.
bilion of ter 2 capital. The additional tier 1 capital is.
perpetval. while the tier 2 issue has a maturityot 10
years and may be rødeemad at par after five years. Ar
the end of 2014, the issues representad 1.1 percentage
points of the total capital rate.
Danske Bank rødemed addons! tier I capital ole
total of DKK 28.1 blion, including the hybrid capital
ofDKK 240 billion raised from the Danish state.
Furthermore,. Danske Bank redeemed tier 2 capital
totalling DKK 0.9 billion. All the redemptions were part
ofthe bank's caphal plan for 2014.
Te Group passedthe 2014 European Banking
ANNSNYTEBAJSTESE TES wrn excess capitalot
DKK 57 billon, resuiting in a CETI caps
117% ar the end ef 2016 in the adverse scenar This
re EBA.
Ratings
In November 2014. Moody's raised Danske Bank's
short zerm P-2 rating Moody's also changed Ms
outlook før the long-term rating rom poskive to stable.
InSeptember 2014. Fitch Ratin
and short-term ratings of Danske Bank and als
aftirmed its stable outlook for the løng-term rating,
In April 2014. Standard & Poor's [S&P] rased Danske
rating to A-1 from A-2. SAP also changed its outlook.
air Magere Neve
In December 2014, Mo0Gy' affirmed its long and
short-zerm ratings of Danske Bank Pic. andalse
by Realkredit Danmark are rated AAA by S&P [stable
outlook.
Ratings. Bonds issved from capital centre S are rated
rated A+, Both ratings have a stable outlook.
ICAAP
Danske Bank's capkal management policies and
assessment process (ICAAP] In this process, Danske
ne clculstien ofte sølvency need for the Group ane
te parent company. Danske Bank A/S. is described
Funding and Tiquidity
2014. Danske Bank's hquidity position remains robust
"The European Commission hes published the finn
Danish mortgage bonds wil be assigned the highøst
Under the Danish Bank Package 6. Danish SIF banke
Wunsn LCR! 128% atthe end of Decamber
LERrequirementas defined by the Danish FSA.
requirements
stress tests show that we have 3 sufficient iquidity.
in 2014. Danske Bank issued senior debt for DKK 287
bilion. covered bonds for DKK 25.1 Bilion. addon
ter 7 capital for 56 billen, and tier 2 capral for
DKK 37 bitbon. totalling. DKK 64.1 billion. We also
redsemed long-term det of. DKK 637 billion.
131 December 2014, the total amount of outstanding
DKK 330 bilion, against. OKK 332 billion at the end of
The Supervisory Diemond
The FSA has identifled a number af specific risk.
indicstors for banks and has set threshold values
that al Danish banke must Comply wh. This set of
requirements 15 known as the Supenvisory Diamond.
131 December 2014, Danske Bank A/S was in
compliance with all threshold values. A separate
reportis available at danskebenk comÅr.
In December 2014. the FSA announced a Supervisory
Pramond for Danish mortgage credit institutions The
Suporvisory Diamond sets out threshold values for five
risk indicators: lending growth. BOrrOwer eXPOsurE 1
inter ik, household exposure to interest-only.
Ivans, mortgage credit institution expesure 0 short
term funding. and concentration risk. The Supervisory
Diamond will be phasedin from 2018 to 2020.
Copital Regulstion
Danske Bank is following the phase-in of the Capital
Requirements Regulation and Directive [CRR/CRD IV)
im accordance with Danish rules.
We estimate that the remaining effect of CRR/CRD IV.
on our fully-ibaded CET] capita! ratio in OLD wil be
"an additional reduetion øf abost 1.3 percentage points.
Tha FSA has approved Danske Bank's continuing
use ofthe financial congiomerate deduction method
for holdings in Danica Pension. The dedueton wil be
based on Danica Pensions soivency need rather than
on its copitel requirement, however, 08 the SOlVencY
rand requirements phased in rom 2014 to 2016.
"Ta non-deductible OFTE ERE ROSING Wi bø Fisk.
veighted at 100%.
ERR/CRD IV requires credit institutions to caiculat
Freportand menitor their leverage rab0s. etined
as ter 1 caphal as a percentage of total exposure.
Onthe besis of the CRR/CRD IV definition, Danske
Bank's leverage 72610 was 41196 at the end of 2014.
taking transkionat rules int sccount. Assuming Fu.
phased-in ter I capital under CRR/CRD IV without
12 3.65. The final egistationon the leverage sti
with a postive efføct of 0.2 ofa percentage point On the
teverage ratio.
Danske Bank has been designated a SIFTin Denmark
and wel 12015 be reqsirad 10 comply Wwih an
addiional CETI capital buffer requirement of 05%.
will gradusny inerease to 3% in 2019. The capital.
faquirements imposed on Danish SIFIs are intended
to be on par with the requirements set in other
comparable European countries. Accordingly. the
fnal level of the Danish SIFT capital requirements
will be assessed no later than 2017 after these other
Evuntnws final requirements have been evalusted.
"The Banking Recovery and Resolution
Directive
"Te directive is intended to prevent banks from fasling
"and to provide 3 legal framework for managing failing
Banks. The directive (Ineluding bal'-in provisions] Is.
expected 10 bø implsmented in Danish law by I June
2015.
abilities, which ss calculates a5 Own funds and
eligisle Habitnies expressed as a percentage of total
habilties and own funs. The Danish FSA has been
suthorised tø set the percentage for såch Danish Credit
eredr institution must make contributions 10 the fund
enthe basis of its size and risk role
institutions in Denmark. The resolstion fund must.
amount to Af IRSK 1% OFNNEEOVETETUEPOSE TF Ar
Danish credit institutions by 31 December 2024 at the
Investor Relations
To support our strategic goals. we ensure that our
makeholders receive correct and adequste informALion
»ecoreimg tø fh best practices for prøstrwæe IVES
ing, innovative digt Solon and consistently
"To maintain and build stakeholder relations we hold,
rosdshows upon he release of the financssl report
Roadshow on major trans
also held for Gebt investoes.
Semor management builds rølstions mith analysts.
sharsholders and potent Investors by presenung
and discussing current topics rølevant to Danske Bank.
Ar seminars and conference.
1n.2014. investor evente were held in the Nordic
tne participation of more fan 588 mvestors.
Danske Berk share:
Danske Bank shares, whkch are listed on NASDAD
OMX Copenhagen. sre includedin 3 number of Danish
end international equltyindices, such as the OMX
Copenhagen 20 CAP Index (OMXC2OCAP)- At tha and
012014, Danske Bank shares had an index WelghUing
ef about 144%.
To shore price rose from DKK 1244 at 31 December
2013 DKK 1674 at 3) December 2014. an increase
435%. In comparison, the OMXCROCAP Index gained
18%, while the MSCI Europe Banks Index fell 2%.
Sure pres fede yer) 2874 1244
nd maret canteen rd van
Rn 793 1245
Atthe end of 2014, 31 equity analysts covered Danske
The average daily trading volsme of Danske Bank.
shares was DKK 291 6 million, agsinst DKK 2392
milionin 2013. Danske Bank shares were the third
mont actively traded shares on NASDAD OMX
Copenhagen.
Dividend policy
"ske Benin overal financial objective in 10 provide
shareholders with a competitive return through share
price appreciation and divided payments.
Atter hive years with no dividend distributions. Danske
dividend af OKK 2 per share for 2013, representings
eaphalthat had been raised from the Danish state. As.
a resul. the restrictions on Danske Banks divided
Payments mposed by tha terms of he agreement no
fonger apply.
sividend of DKK 5.50 per share ba paid for 2014.
Shareholders
Avthe end of 2014, Danske Bank had about 284.000
'stareholders The 20 largest sharehøldørs together
owned about 32% af the share capital
must notity the company f the voting rights of her
shares exceed 5% of the voting rights of the Companys
share capital or ifthe nominal value of these shares
txceeds 5% of the share capital Shareholders must
also øisclose changes In shareholdings if they excned
or tall below specifed percentage thresholds Two
shareholder groups have noted Danske Bank tat
tney hold more than 5% øf the share capita
+. The AP Møller and Chastine Mc-Kinney Meller
Foundation and companies af the AP. Moller.
Maersk Group. Copenhagen, hold 22.38% ofthe
share capital
+. Cevian Capital il GP Lumied, Jersey, hole 29% of.
ane share capral
Esch share entiles the holder tø one vote, and att
Anne end ai 2014 Beni Bork held ab bu OSSE”
otits own share capital. These shares are held 10
cempensate employees im the form af ONØRIONEl
'stares and share options granted under skar
programmes in previous years and for Investments
"on behølf of Danica Pension policyholders and under
peoted investment scheme.
Corporate
Responsi-
bility
corporate responsibility
Corporate responsibility [CR] remains an important
part of Danske Bank's strategy. We Want OU
customers and other stakeholders tø feel confident
that we manage our business with proper attention to
environmental, Social, ethicl and gavernance issues.
This applies to credit granting. investing. responsible
Im society and the economy in general. We consider
rønponsfbie business Conduct a precondmon for long:
Reporting on corporate responsibility
Under the Danish FSA's Exeestive Order on Financial
Reports for Credit Institutions and Inve
ate. [section 135 and section 1358 large companies
and diversny at management level. As asignatory
1othe UN Glsbal Compact, Danske Bank prapares
2 Communication on Progress in the form of our
Corporate Rasponsibilay 2014 report. With this report,
”uhichis available at danskebenk com /eFrepoFt, We
Fuilthe requirements.
Tnereportis supplemented by addons! data and
800k 2014 and 2014 Cisbal Reporting Intiative
IGRI GA) index and combined. vur reporting offer
2 comprehensive and balanced view of mater
corporate responsioily matters rekung ts our
Business sctivities, The reporting sod informabon
2bout Danske Bank's otber CR Iniatives and projects
are available at danskebank com/resPonsibiltv.
Organisation
and management
General meeting
The general meeting is Danske Bank's highest
secision making ove horY.
112014. the annual gone
Maren
held on 18
Danske Bank's Articles of Association. available at
sanskebank comyso, contain information about the
notice of the genera! møeting. shareholders rights 0.
table proposals and 10 have special hems såded to he
øgenda. admssion and voting rigms.
equals one vote. and there are no imitations Om
Noldings or voting rights.
Only he general meeting can amend the Articles
of Associstion. Amendments require 3 tr0-thirds
majority of the votes cast and s tWwo-tbirds majority of
ne share capital reprasentød at tho general MØN.
and enttledto vote.
Aresolutionto wind up Danske Bank by merger or
veluntery liguidation can be passed only it adopted by
at ieastthres-quarters ofthe votes cast and by atieast
fnree-quariers of the share capital represented at the
senere! meeting and entitled to vote.
Board of Directors
The Board currently consists of 12 members, sight
sected by ihe genera! meeting and four elected by and
among the employees.
Board members elected by the general meeting stand
fer elecnon every year. As preseribed by Danish law.
members elected by the employees serve on the Board
Of Directors for a four-year term.
"Tne Nomination Committee identities ang
recommends canéidates før the Board of Directors.
Board candidates are nominsted by the Board of
Directors orthe shareholders and are elected by
tha general meeting The ratiremert age for boer
members i5 70. which means hat board members
must ratirøat the first snnual general meeting Ser
tney have reached the age of 70.
Arthe annual genera! meeting held on 18 March 2014.
ne members of tre Board of Directors were Fe elected
with the exception of Niels B. Christiansen, who did not.
seek re-election. Rolv Erik Ryssdal was slectedasa
rW member of th Board of Directors.
Work of the Board of Directors in 2014
In the fourth quarter, the Board of Directors carried
out its annual evaluation of the performance and
achjevements of its members, both individually and
collectvely. To ensure anonymity. the evaluation was.
faciltated by an external consulting firm. All members
øfthe Boara af Directors and the Executive Board
anmwerad a comprehensive guentionnsire and mer
interviewe by the consulting firm. The findings and
conciusions were then presented to and discussed by
tre full Board of Directors. The Chairman subsegueRely
provided all board members with individual fødback.
Overall. the resuhs ofthe 2014 evaluation were
inte 2013 evsluation femphasised focus on strategy.
yflormance management and customer satistactior)
nere sil well addræssed in 2014, and the Board of
Directorn will continue 10 work on its performance in
these arens. The evaluation in 2014 identified only
minor new arsas that needed impravement, such as the
ongomg adjustment of hø balance between FØguIStOY
and strateg matters, which the Board of Dsrectors
il seek to sm prave.
ive Officer, Tonny Thierry Andersen, Head
01 Personal Banking: Lars Mørch, Head of Busines:
Banking: Glenn Saderholm, Head ofCorporstes &
Institutions: Henrik Ramlau-Hansen. Chet Finaneial
Otticer and Head of CFO ars: and Jamøs Ditmore.
Head ef Group Services and Group IT |COO Robert
Endersby was Chet Risk Officer and Ho of Group
Risk Management until 28 November 2014
Sivert Kohake has been appointed new Chiet
Risk Officer He wil be responsible for Group Risk
Management and wil join the Executive Board th
from I Apr 2015.
Corporate governance recommendations
Corporate governance recommendations issued by
ne Danish Commåtee on Corporate Governance
can be found at corporstegovernance.dk. The
Frecommendations are best practice guidelines that
"31 companies with shares traded onNASDAG OMX
Copenhagen should generally follow 3 company falls.
10 Comply With a recommandstion, t MUSE Olai Ah
i devistes from the recommendation and what it has.
one difterently. Danske Bank complen with all the
FecommenS Ons.
Tha statutory corporate governance report issue
ta nccordance with section 1075 of the Danish
Financial Stataments Act is available at
sanskebank com/cgreport. The report includes
"an explanation of Danske Bank's status on all the
"The Corporate Governance Code ofthe Danish
Bankers Associstion, which applies to all member
institutions. can be found at danskebank. com/dba.
All member søstistians must COM ply With Ehe
Msn MA / ALA MEGET Ba 43
recommendations or explain why they do not comply.
Danske Bank Complies With all Focommenda born
set out inthe code. Danske Bank's explanation GE
th status on all the Fecommendations is included in
section E of ts Corporate Governance Report 2014.
Financial
47
Pr
s2
s3
53
so
61
7
75
nm
72
73
7”
7
Income statement 76
"Statement of comprehensive Income 79
Balance sheet 81
Statement of capita
Cashflow stetement
Notes 83
1. Basis of preparstion
2. Changes and forthcomng ehønges sa
10 serDunting pohnes and
3. Business modeland business 85
Soy mentaban
aA. Activikies by country 87
15, Net interest and net trading come s2
8. Foo income and expenses
7. Other Income s2
8. Insurance comtrøcts ss
9. Operstingespenses sg
10. Audtføos 101
11. Loanimparment charges: 103
12
13
14
15.
15.
17.
18.
18.
21.
23
2a
statements
Tenaing portfoho anset and haben
Bue from credit institutions and
søntral bonks and Lons st amortit
Loans st fair vølve and bonds issued
by Reakredit Danmark
Ansets and deposit under paoled
"schemes and umt-linked nvestrmønt
Assets and hsbiities under Insurance
Intangibleassets.
banks and Daposts
Issved bonds
Oner sssets and other habiktier
guy
Contingentiabdkses
104
105
105
107
108
109
ns
16
17
123
25,
25.
27.
28.
29.
30.
31
2
33
En
Balance sheet tems brøken Gom by
expected due date
Contractuel due detes of finaneiel
habiities
Tranaferred financiel ansete that are
not derecognised
Assots pruvided or received sf
Coherent
Offsetting et financtel austn ond
Fabakiee
Fair valse information for financial
Nonfinaneislassets recognised at far
volve
Releted parties
Romuneration of nanagemnent ane
meterialrisk tekers
Danske Bank shores held by the Board
ef Directors and the Executive Bosre
124
126
126
127
128
129
187
158
35.
36.
37.
8.
Group holtings and undertskings
Interests in Gas0cistes BNG JANE
arrangement
Interests in unconsohdateg structure
Changes to financiet mghhgnes
from 2015
Definitions af retios and key figures
Risk manageren
129
129
130
146
150
153
Riskeposure
Tot! caps!
rede risk
Market risk
Liqutidyrisk
Insurancerisk
Hietightn, ratios and key figuren
Financial statements af the parent company.
Denske Bank A/S.
Balance sheet - Danske Bank Group
Statement of capital - Danske Bank Group
Statement of capital - Danske Bank Group
Statement of capital - Danske Bank Group
cemmen sgryser 3 pustes fS) 147
Cash flow statement - Danske Bank Group
Notes - Danske Bank Group
Te strøs vetosntng polcdes eve beer Peres te the Feer io mk EG fe)
VRD EB Genske Berk Fan Me Range NE Sy AES BEDRE FaRElet FO FO
tel blyant sonet ng eee,
SEE DRE Doe å AE av et se mvh sheet me arryns Arnt at sas, sneen sner
En DEER Be Mb 10 FOD SE Im SEEGER SIR AVG FR GEERT SEND EDER
fat amore pars oa,20sd or MATS EST Ey OBE Ene ore VO mer Tor hy se DK 32 Hor 2013-0837
Notes - Danske Bank Group
nscopntion ef eter tar aser
Notes - Danske Bank Group
Notes - Danske Bank Group
194 Sikcent evening oslsetiene Arense! ret rurnentn and hs urene COFErcte CO ud
Tecra md ate san ben Rs Py RASER Danm orn neon bene broren Pe End, PR, ron Fe the Der
Een FEE AR Bremen MR BENENE STE SOE rd Sonne VEDTAGE TRE EVE
sucurmer sestpreted ar or one
Notes - Danske Bank Group
erne tmern. uhietar» Fess Ned en ARR Re.
Notes - Danske Bank Group
føl Change te sinker csonbg PO En mrs pre nn ben MD nE ne ser
erenger > nem! matter rd egner FEDE
ne crerge hon sete the frns big ikgpts ond]
Si nøhgtns br 2013 i prevented r fhe atle bene, Mer Cnrger fave Bern MG > he BUSTE, Inn I MTR For 2OTS rn.
ege PesonBaning BuinessBEnknE Der Aeanes Adumted
tosser rer FnEnEn sne 52885 14ass im
Notes - Danske Bank Group
2. Chøngen and fortcoming chonges to scounting pohcies and presentation sun uen
føj Sandart 0 te pretanone et vet fore
NTR 201. me 50 nsued FR 9 Pors! INS marNs Nat mit roplace AS 38. he stanGsrØ pres PNG for Sass e
mms prnegtes sgh 13 faaet! Aabitner are hrgsly sichanged from HAS 38. General; fane! Kabila are sk! mensur st amer:
RES Evas He ron SGL TE MR
ma gense! heden accounting model as net Kone) Ehange ht RS cf DAP FA En NpE ar NE FARE fo Faerie in.
Tevere Fecapren Under PRS 13, VEN 8 PSB ARE He PTL ØDIS DRE PETE FIRE EDT AMTS ELEG
Notes - Danske Bank Group
Persons! Barking arves pårstnal ar priste Ak Custer, Te Ur Sense Så GET Erste
STEEN DRE Ad DAGE PTE SEER JATO MD TOT EDEL ANE.
Buvine Barking torve 1051 316 PGA 2 DOS nASEES VO 3 arge Menuer cf nance cemtres, Branner, cost str Fr ordne
enske Cepite sevelspt and seks sonet and ns MAP POSER BAG BORES TSK are Marat AFG Person] Benn ar FED
Lar resp. rang of Chun Pe CFR. PROF, POFGDNST BSN ARE DRS PETE BO SELDE.
AE Vender HEV ard ondt srt eres. OT Sørtery BORA. SN Bue BORET APS Pors BENE
GEDE ERE,
Notes - Danske Bank Group
3 Business modeland business søgmentation Continued
foitueiness srgmants 2018
Notes - Danske Bank Group
3 Business model and buninens segmentation conbnued
fortænees segmerts 2013.
Notes - Danske Bank Group
3 Business model and business negmentation Con nund
Personel Bankrigby country 2013
Notes - Danske Bank Group
3 Business model and business sagmentation continued
Notes - Danske Bank Group
3 Business model and business sapmentaton connued
(ej Totstncome broken svn by type ef prodet
hnectersence er FR. Denske Bank Greup i regred te Æsclere bun Ens uith ae sine customer that generet 1ON er merne tel
ter Georges segmenter
Notes - Danske Bank Group
4 Activities by country.
Notes - Danske Bank Group
8. Net interest and net trading Income
ENES SENSE
Notes - Danske Bank Group
5 Net interest and net trading come corinued
Tadrektrmnerd ravnene Sas — 323e4 — 34507 — 870 4a338
Notes - Danske Bank Group
an SA
Notes - Danske Bank Group
Notes - Danske Bank Group
8 imurancecontraetn
rare rr re orn mere Fy DE Pere ost ere HAr varer Pak oe sees peter e ae ter fon.
porrgkde narnia åg ==
irset vaserne enets 2014 is
beste prd 23ses arms
fehurner sepansnen
AG 7 fe EORAESIGS RØDT SAME Mol FONG Fnr ET OR POE Is ORE EGE EDER FEE ES
Notes - Danske Bank Group
[Sr SS SEES SERSESESEEES E
9 Operating expenses coninved
NIGRESS ehres core plane sras
10. Audt fon ore 2013
= 9 1A5 38 ore KARME The srvtve vast 5 DESng nsFrumenss are pre.
Notes - Danske Bank Group
12. Trading portfoo assets and Habiities continued
hej Brøeranen sf dervatrse
Notes - Danske Bank Group
12 Trading portfoho ansats and habihties conbnuad
1 Espensen st hesge scent
FS FØLG For KG Ar REESE FREE FL SEE MDD DE FE FOR FG hy
FS elile høg denne Pors SI DeØrR Jern SF SØN REDDE.
rer een ER ERE ES
Mias dre s mn
MESS oraneg sst n Bon
vage os toraigs rense 1 (Pe Esbens mn Gr Ene,
nn rep fuger fe fulgt TR ET vet hestene ts bremse om subeldr les ele Dens. by Om keklng Mrs er.
Varenr, Tre reg Enange SALTE of frå MUSEE ST ARDEN GE EPA EDT HORSE ME Fr FOER
Notes - Danske Bank Group
Notes - Danske Bank Group
13. Investment securities continued:
Notes - Danske Bank Group
14. Oue from credit natitutions ond centralbanks and Loann st amortined CoF
are ren at Amerie COM Pe ly SEERE DINE DDS Frie Ty Rsskrrdt Denner fore Fote IS DE
tove rom ert snertuesens an can tre bens 2ora rs
føjes st amore sner
Notes - Danske Bank Group
BEER
14. Due fromeredk institutions and central benks and Lane et amortised cost Cantnued
Managerssnt passerer arå 25500 1 acjurt Me cost pair ment Cage i Oe GrOsg Berner mare ef market Ølene st the bel
Notes - Danske Bank Group
18.Loens at følr valse and bonds fssued by Reskrec
SIERSESS RSS SLS an ED er re agten SØGEN SEERNE ENE
Danmark:
for velse ang Annan by se ir vue Hhrnsg rektor ae.
Mme før vstve ef the bonds kt by RAB Dom 15 PØrmaly SAME 32 that gled marke valse A amet Puerder of re serne.
Dre or FL all scrne Ads ne 9 PIG FORENE NG I sr ERLnS IONER UNEP TOG FODEN] ONS Rå POE
foltosnest farves ae 2013
Kinna ke San:
BEER by error meet valse Sang Mr
"Tveheldrg ef one merigage bende clade preset ende af DKK 73 bilen [2013 DK 94 bils] une for Fasan" metan var
før salve sure fo the FEDE PE SV ESS Mn pnge bende PP ÅsRE OT FO Denn 2] Inn op aha e spre DAS] grene
Notes - Danske Bank Group
15. Lors et fol value and bonde fesued by Reskradt Danmark continued
Notes - Danske Bank Group
Notes - Danske Bank Group
17. Assets end habilties under Insurance contacts connued
Mar verden the pEvon ef Darier Pense's ofter habilies au mAS by CustErers Other 98 ef able are Past rnd
Notes - Danske Bank Group
18 intangsble anset»
mange sner 204 215
312014 she Cup røcsgyistt sondre Øenbop net costs a! DKK 397 ruten ss ar mene: (2013. DKK 343 mihon] and Press DK
2000 mon 013 3 2.008 men
mn
asianser af gede genert FEE NE
Notes - Danske Bank Group
18. imangibie anset continue
fer gone alecsted 5 C81 Generel Bang. an CSI Merteta ESPE TEN tante Anne ØE or RG dy Ng ns Øst eG SOM EAs enn
Notes - Danske Bank Group
18.intøngible asnets conbnund
Kay onmeretienn fr prof A ingen tastE In 20346201
Notes - Danske Bank Group
18.intøngible ansete commune
BDR Bank Arne 5817 tå 32 3130
Notes - Danske Bank Group
18. intøngible ansete continued
FAE RESE Penngsnan: stier of See Bank SETE EDEPOMKEG Pis He BvenEE srrucere af Danske Capt 2007 ads tasne
SER: Be Forn FEE, Sy ne Ren af ner EAN. VV Fe Senden et
Notes - Danske Bank Group
18. veto rødt institutions and central banks and epos
Anounen due 1 CFR ruttutins ne Cant re bars and Dapoks Sl INEhsd AMBER FC onder Fa FODRER PE SF BR
Accourngpøney
| Nynne ør vet
yPås and Dsgests are MERE St Aman ces M Pus. rate Sapor are hagges stn.
het Oste eres mer ons and cerrst Benn oe 2013
froepores ora 2013
[Sten Bags Meer
Notes - Danske Bank Group
Notes - Danske Bank Group
Notes - Danske Bank Group
Notes - Danske Bank Group
21. sved bonds continued
Sererev Bomver ene FEE nn mer Mae nen IDRE] FK
BkeBRR As i — 00 Br 20 næ
Sr Owe BekA/s ok 150 ses — 2008 200 sær "1358
Se sr Ko Meme oe ke åer Amen
ER BeueBeRAs om 800 aen 2007 me ae ære
Ej Sme BenAs os 830 Sie 2007 SEE
ER Bakr BED 2 ze er es Ge Mee 213
Notes - Danske Bank Group
ner
Notes - Danske Bank Group
mer otgonns
Notes - Danske Bank Group
22. Other assstn and other Habiitias continued
Notes - Danske Bank Group
SSERERENES GLS En ea O DAD PR DER VE NR I FEE UR ENE PINS MED FRR FEE
Aco Pee
or sek for the Crop søle ar purchase ef Danske Bank Hhares aFe FADERS SFS, I SAN Eder FEED, SE
SE Gone Bern her SR ESF! DYST AFG GLAT 0 (RO ADR VENG TRE ERAT BE TRE BED GREG ERE ERE
'= ole Øscrebien. OT payment Of mMerest ane prinyS] pRyehøns 10 he pOndhaldars Thørølors, Ehe 1360 S30S AO gs SS
NS ESTER 00 Øksen MD Te SOE FEDE RS St Fe Bane FRE TREN BAREN EG TOERE Bare AVS
SEGS TELE 18 BønGE Sae Ar be PEGLERE DYSTE PEGETBUD BON St ÅRE FTDE SFSR AFD FREE OT BES ITD
SEE SSØEEE arasnnens ST Apd Parent ars Teen eE OTSED NSA. Fnr es FONG EO Bare.
fa furer sspsneten
hine net vesten in eV sete Danmar HA Or Der Fasbsed. Fans tee Øerne are FØL syr Eses I the Gore Mata menr
Notes - Danske Bank Group
Notes - Danske Bank Group
24. Contingent høbilies
BERGE 1 FEE Fan SBF SDR
tøj Garner me 2013
Omar vangerne.
ENE EEdEnE EL FEE H8ou nes
mnsaøten tcrit epe Hen snø Sci IB OFF FAG AG ASO Mes art EPernnd Dy ME GFOsp AE Ane re DKK FO
ARON (BI Decor ber 2013 10 323 0, These nem sr IR F Pe FENG FE HORSE NEE FED DEE, EET SEDÅERE En E
Sky te Kg vane Lone Denis Bank f Corey 9 pay 10 VIRUS IMmSANE SAG ØSpMASG 306 Mas an OPD ØMops ME PLANE
Notes - Danske Bank Group
25. Belance sheet items broken down by expected due det
Notes - Danske Bank Group
26. Contractvat dve dates of financial habiition
Brunnen sorted one fro br fer ao 65a3 — 102727 — 213780 —— 40827
Banen red ane grun sa Feren MADe anse MOanaG — åiagre nås
hej Fursner sparer
Notes - Danske Bank Group
27. Tranaterred financial assets that are not dercogrised
Notes - Danske Bank Group
”
3200 mon (31 Øoceneer FONS DKK 3938 bin ag sotstern fer FOA PNEKrE Anne! DKK BLA BER
287 Une) ar stem
Notes - Danske Bank Group
Notes - Danske Bank Group
30. Far velve information for financiel instruments
Sr ed É
Frem hdeskorderdekerss deres rse
2 VSSE Senden an snak pe fane Tha VORES SY ERNE ARDEN FRA FETES i bane ASEAN On er,
venne stør se Fog band] me bar on by MTG Onan sr FEDE fe als st Pi rund ende Fre ave
yt fnet Mn råt PO SAG Ore ASK freak SN MTIGgE KEN. Changes åre Pade XI POESI Tå Fate the STE.
SE Se Pen Te FE RT MERE UT MAE SEE FEE FEET PEDE TREE
ssruracis is cætarminss an scart yalts mer aprE 19 pels Brves for ne KØ rer
Face Put, Unhstkd Sr OS MED nad a TVR MORER MES PN MESTE EET PRS EA,
ARS RESL SNE Ane VEG FRED HRG BEDES sek Ho MEN ENS PING DALER SE TAND ST SEINE BRL.
Notes - Danske Bank Group
30, Før value information for fineneial instruments continued
SEEK POL tr engen pøsnve ssp rs EPE] an fre ss ge SELMA IF EVE 3 BersrVE ÅLGED TAE GSUp ERE FS SETT
SGD ak Frpes by CS grenen
Fotoving he Aaret Dty Brann Fe msn cÅ 2014. Fre Denis Franc! Supervsery Asthonty Brdr ME FBU IN BJEE RE DYSE
Rag 08 frøen Prev. Pe Gru ae oven Om sst te 1 Cote PD or fre Doe] Fre fr he KOL DENE
EN ””
EDER DE Fa ar Ganske Barm PAVA mar PO enes oerEang Fr NESE rr EVNE
he tre rd of 2014, OVA and DVA came tø anet sort DKK 09 bilen 2013. DK 06 Ben] scivng Fe søss nen for CFR ME On
EAN Hs Gu as SERENE olnas fo SER) OS TOD GROS CBISDKBE HAG MEMS FS FBE Ve BROGEDE DRE ALENE
RENE,
DKK 835 mile (2013: DK 1,133 mio. i
Notes - Danske Bank Group
30. Før valve information for financial instruments continued
Notes - Danske Bank Group
30. Far valse information for financial instruments continued
58] tr2 alventn0 1 rsurnree Sonrer FENEJPØNdere, and (fe pENENRDNJErE SAMLEDE MOSE FAE FL OM OS SNE CROSS
HEST entinsted før salon sf rn borer de pere nen
fortelte kessdernylersndlistr ep eled ter elsserb dress ilede] ”
Notes - Danske Bank Group
30. Før value Information for financial instrumente continued
FBE ER GAP PEARL GE, ES ai z =
even edntnert fru pre er hot fe rense under KHa jren
hy Prerestirerumerts st mertined ens
SSG SEERE SONS EFTER FSR GATES SY Sr MEE BEDES FN For DE.
søverend by stene Are sk, Erar nn sret.f nd ge GERE der
El]
Notes - Danske Bank Group
30. Fee velve information for fnancisl instruments con
Notes - Danske Bank Group
31. Non fineneialassets racognised at foir vakse
tømte ren,
Notes - Danske Bank Group
nette etern relse porte te fe Grau are slarebeldars Pit have signere Mek ef share Følge hen Aare Over Me Grp.
EL OR Lar partner sr Fr BENE Pr Pl FEDE IR nag Kan pE ALENE Dr nr ERE FEE
øjnend para Pere.
FRR renterne meP) Fenn fonde COørInDS In Fre STU SOK nn (213. KID MON, Ga psnkn I
[AA miner, (2013 CR 195 mir) onen asus mare: OKK 286 uno (2013. DKK 307 mon, Sene AR 8 Pen Fr valse
BK Omhon (2013. DKK Omlhon ervenven sa magte fr voks 9 DKK 1853 ron (2013. DKK BIG For] mere Snor RE
BSK 16 mon (2013 DK 18 mas, fre Intone af DC I mhon 2013. ORK 1 mllan) and pennen Gmnbuiare Of DK LØ msn
Bars eksamen
Nee Bora Bare Sae Tay Så Feer By DATE RENTE Saras POLE
Notes - Danske Bank Group
33. Remuneration of management and meters! risk takes
Notes - Danske Bank Group
33, Remuneration of management and material risk takers conbnuEd
Pj Remnerston et ie Em aÆ ve Boards
”sortrectust emnerne Pede fund Bør, ns ner bens.
ABT RA James Onrore fore Pe Erann Ba en Apr 20
Notes - Danske Bank Group
33. Remuneraion of management and materie! risk takes conunved
FRE Catena Pr PNe Svenn snø Grenen erne Pr HØSTEDE Ohe ne RR BORGER TD
Sites, corone 13 2013 As ØB December 201 Ders« OR SEERNE 13 ÆT RE
PTE me ra map, near er 9 Fre ns RTE Fra 275 TE Gerternd
ET SND start FL HaL0r, SrTed Tern oROr. Af DROC 948 Tuen FOLD 158 PTE atner MONerGT ME åkarr smed PETE
ERE EEN
"Tie Cross pension ebigøtone toere eter materiel rs skar snnurted te DKK 806 mrk 0 130 engen st pennen 201 BLD
"BO BO SD Rn er0 3 uylayer! Te rerante mer van by Fra Sang ELO ar the RR ESKE TAGE ar
fespebitisensesenslkesenaernd bdssdeer jer eva kd ren dede Neder rs]
Baser me anse En etern esterne syren, Pe ned
EEN ER FEED fer Te ET FO EG al Tr MEE FE SAG Fron ET ar Re Fer Ft
Notes - Danske Bank Group
33. Remuneration of monagement and material risk tøkers cannued
Notes - Danske Bank Group
33. Remuneration of management and materialrisk takers continued
Notes - Danske Bank Group
33. Remuneration of management and materiel risk tskers Connuev
Notes - Danske Bank Group
34. Danske Bank shore held by the Board of Directors and the Executive Board
Notes - Danske Bank Group
35. Group hoktings and undertakings
kstetrssrenhsetessrdentkes
"Danske Berk AS dry or møre
NE Ban hel mere nn hst eine LORT FE SUPLEE OMEND Kat Pm 1 Gt
EGE DOF PE SS! Fey BE BEEN SE
nlfurmer arømnanen
Fa rver Vater and Ferene COMpNnieS Sepervised by OBO! FAG are Get OIC MO CaPRA FARVAFOEErNS. Than 0.
Notes - Danske Bank Group
35. Group holdings and undertskings convnue
Danni Berk A/S. Cen nnn DE 10008200
en EDER
Notes - Danske Bank Group
38. interests mn sssocistes ons jo arrangernenEs
(==) Rn me
SEES Fine Frnene torne EN ng Fart onen SEE nEr ar
37. interests in unconsoldeted structure ene
Notes - Danske Bank Group
38. Changes ta finsncsst highhghts from 2015
Notes - Danske Bank Group
Definitions of retios and key figures
uten maker hørne Defnion
anenegven croseninenøng hon tha begge ms andet no jer, BME EEG.
Notes - Danske Bank Group - Risk Management
Risk øsposure
Totatcapital
Sermte ser na erne Fare BER ro ES Po erne EET YE PS os mare Pe Carte Femern
Notes - Danske Bank Group - Risk Management
Creditrisk
Notes - Danske Bank Group - Risk Management
Notes - Danske Bank Group - Risk Management
oner er mer see vsere tre ner sner re pens ne mrng egn 100 narre ke femmer
red pertfotoin core activtles brøken don by rang cake
Notes - Danske Bank Group - Risk Management
met porttoloincere active broken don by ns ACE)
Notes - Danske Bank Group - Risk Management
Ex BLE ST BETTER FRR FE 200 eet
ESSENS SEedtirnnenss manges seerne rue fransnorse
sirge name cncereretien Farmer: TES Pek samen Fer ne Fr aen Apel TÅRS En EaP nur E eee tnd be FL anG hes
EG RED no ber In IE Done 2r FRØ FEE EOS.
Une ”
hvo oebne sriter merne kriser MENER Sne NERE SOGNE NE DE IDEER
Notes - Danske Bank Group - Risk Management
Notes - Danske Bank Group - Risk Management
Past øve Amons care seer FO SBV Penn af ØV FEED
Past øve amme fn eds sk Tør RE]
Notes - Danske Bank Group - Risk Management
SE tormrs For rs
Nan performing loane im core scene
Nan gerning loss core active brokan nn by no ENGE
Notes - Danske Bank Group - Risk Management
”Anoutenc neck fne0rn set ties Brea den by Rg TERE
tir ves of cotsters! Prone by SAIOMEr I Fang cmragone 10 nd 13 Gsersssss TOR MAG APET ERE CF arpes MOS erssne
Notes - Danske Bank Group - Risk Management
credit sortes Non core sete BEDE dn GER TNAGET
credit pertiiotn en core rekte broken SEND FREE DERE
Notes - Danske Bank Group - Risk Management
hen partermingieere hon cremet broken do by nd setrY ACE]
Notes - Danske Bank Group - Risk Management
Eoooesreio onterperty ris føarnervesjand rest sspoRre FO rang and vesten, BENDER
(re Boe 203
CE w
Notes - Danske Bank Group - Risk Management
Notes - Danske Bank Group - Risk Management
BR
Market risk
SEE DST aE nr Free enn DSE NE VER TEE
FRB ASLGTCRPRET Dek MDR ENDE ENDER BE
vaeret rate røk serstiitien felede cementere! pers! she 2 mel 2 Run. Bars scenarie in ulich UAe Oure sf HM FS Gee.
FRODE AS BE SEE BE ERE
Notes - Danske Bank Group - Risk Management
Notes - Danske Bank Group - Risk Management
rauø' pari tres tests and sens tit) arelynes als nelle SCENaRE Arkh rene Fre develop nEn ES A8 Paren Sek
ODDE BEDE FEDE EEN ET SENERE SENE RED EEN KTO OT FEER DEER
Notes - Danske Bank Group - Risk Management
ven are Grey emesen tors rel eng car se sne m omen tr enn Roer sr cen bene sner Pe sanne nerne
KS Deer ar ng are mon aske aner Fine
Notes - Danske Bank Group - Risk Management
Fords ore by Bye sb, PS 2016 203
Notes - Danske Bank Group - Risk Management
Notes - Danske Bank Group - Risk Management
Notes - Danske Bank Group - Risk Management
Bera porte fnaurenen burinsse] broken GO by BER rEp he
Notes - Danske Bank Group - Risk Management
Notes - Danske Bank Group - Risk Management
Te sanetirty ars Feat fra Group Frerenned erponsrn to changes 6 market Ennane BacAus fe erne Bone poten sne
LTG peep peåcras Emma rr 8013 and se Barer tea lanner Segr. Be VETO TIN BY KATE MERNE SD
Notes - Danske Bank Group
HGHUGHTS
RATIOSANDKEY FIGURES:
Femme
Income Statement - Danske Bank A/S
Statement of Comprehensive Income - Danske Bank A/S
Statement of Capital - Danske Bank A/S
Statement of Capital - Danske Bank A/S
Statement of Capital - Danske Bank A/S
Notes - Danske Bank A/S
1 Net interest and fo ncome and valse sdjustments braken damn by business Beg ED
4 Fon and commission Income
Notes - Danske Bank A/S
7.8taft costs and sdmiristrative expenses
Statement of Capital - Danske Bank A/S
10. Tor
Notes - Danske Bank A/S
12 Loes, advance andother amount due at amortised cost
Notes - Danske Bank A/S
14. investment and domicite property
19. 0mersssete
Notes - Danske Bank A/S
EO
20. Dveto credit institutions and central bank
Notes - Danske Bank A/S
24. Svæorømated deb
(tetsstenstlete kst edespsses eres red
Notes - Danske Bank A/S
he me ane af 2014, Danske Bank A/S MAG proMiØeG cåah And Bertie merth DKK 83055 medion og cotere! for Serve FEBER,
(3 Decender 2013100 57510 men.
ETS BOT DN 188700 muken and DES BEDT FS REE
28 Cortingene isbeteies
FS DK F7OGES Alan] Trees home are loa vr Pe Ce er
SSD RE SRGnEs sener an mn
Notes - Danske Bank A/S
Danske Berk 4/5 > med joint mit st Denis erttie in Dane Berk Corp and is Fly ond seversD,
Færre
27. Related parties
FA STED (2013 BSK spent, Noter 33 and 34 2? 10 Gren hist PØRNGL MEEEFTENET EPE Ty FRE FEER
19 mon (2013. Dk 155 mye] deruetvan sth a poste ar
fur un af De 868 ry (20137 DRK B04 mvhon], eres epe af NCK 2 men (RDS: DN 3 Pro] sr Perm
OC SS er 2OTS DKK F38 mn
Fersk Van and proven Of STR. ORDENE TT KRONER SP FRE PAINT) SEERE Pr O DOrEhE BON AB. GA nen
BETA ora group ornat Fee urne ar MOLS, ang, ST AaknE de Fan vEd Cy ROME Bunrmar AJ. Nr HD OT CO
Notes - Danske Bank A/S
28. Hedging frisk
29, Group holdings and undertakings
Notes - Danske Bank A/S
Statement by the Management
Mleptee by 1fe EU. arte Parent Copa BRAD Stat ements Pave DRED prAPar ed 1) FOdSnGE MEN IE Dea FENG BBS
ESF opimn. fn managEMERs Foport HnEGeEa far FOR af GeV pens She Group And ha PArsek CORBAnYE OpErEDDE Ad
EXECUNVE BOARD
Thomas F. Borgen
net Executive Offer
Tonny Thierry Andersen James Dimore
Lars Maren Nenrik Ramtav-Hansen Glenn Boder holm
BOARD OF DRECTORS:
Amter Trond ø. Westhe Urban Backstrom
naira Vice Chairman
Lars Forberg JornP. Jensen Role Erik Rysse
Carat Sergeant sum Hagemann Sne Kirsten Ebbe Brich
Carsten Eilertsen Cnariotte Hoftmann Steen Lund Ølsen
178. OMGKEBMNE / AAUAL MEDORT 2014
Auditors' Reports
Interne! Audir's report
pede art He pernante BY fe Manage PE Arme at NE Graup SA I Para COMPANY FEPOTT IN PrDEbEe FDEDDE
Opinion
ante imerretens! Financiet Ro por ng Stenderds 8 aeptnd bye EU
SSarGsner uns Denn FInanEDs BuzinsD AT I Fana af
ARRENE GERE ste Crop and Me Paren Copa FOOT INE FrOGes DE ONE REF POMMES PK Derek Shen,
Copenhagen, 3 Februar 205
Independent Auditors' Report
Independent suditers! rapert on the consolidsted financiø! stetements and the Parent Company finans
Me have avast Dø Co0s6l kst Mansa ster pp. 46.157. and the Parent Company Ana! sisters af Omsk Bak A/S.
Mansgement's responsibihty for the consohdstad financial støtamente and the Parent Company fane!
ans nt vw nsrardanee ER he Husrnsans! Fana por Ung Slandards > adGFtR by 16 EU KIG Cooke LØSeG MAREN
Audiors' response ity
Our esporsibtey 10 srpres an opinÅGn OR he COnsolésted Ananesnt
'statament on the management report
Peres fe Nr Dansk Flake BUsnesr Art. me have rendte ManSEmenT STEGE MG ØVE AGE performed any Fur hEr SERGE
Management and directorships - Board of Directors
OLE ANDERSEN
Electød by the genera! Møsting
Born on 11 July 1956
Joined the Board on 23 March 2010 and
Cnsirman ofthø Remuneration Comme
Nomination Committee and member of
competeneies:
harge hane
+. Seruing of corporate strategy. budgets and targets
+. Financial and economie expert
1. General risk managememt experience
Pirectorsnips and other cfacen.
Bang & Olufsen A/S fehsmman
Car. Hansen Holding A/S fehairman]
Zebra A/S |ehsirman
Ear Partnars (soner adviser)
NASDAG OMX Nordic member of the OMin3tiOR
cemmittee]
he Danish Committee on Corporate Governance
Imamber)
TROND Ø.WESTUE
Vice Chairman
Elacted by tha ger
mesting
Group Chief Financial Oftcer and member øfthe
yeutive board of AP. Meller-Mærsk A/S.
Born on8 June 1961
|| Netionalny: Norwegsan
|| Joined the Board on27 March 2012
Most recently re-elected in2018
Member of the Avdrt Committee and the Nominston
Eommaree.
Competencies
+” Long executive experience in managing overall!
corporate Bramer alka
+ Funding of imternstional companies regring
significant investmente ENFGugh debt and eg UR
+. Strategic and business development expertise
+. Experience in managing substantial international.
operations
General risk management experience
Directorships and other ofte
AB. Maler - Maersk Group [ehairman or member of.
he boards of sirøctors of 12 subsidiarses]
Danish Sup Finance A/S [Danmarks Skiiskredit A/S)
member of the bar of directors and of the audit
Fommittee)
Shame AS [CEO]
VimpelCom Lig Imember of the board of directors and
EFairman af the audit commit
URBAN BACKSTROM
Elected by the genera! meeting
Joined the Board on 27 March 2012.
Most recently re-elected in201å
Independent
Brosd and m-depth experience with econoMiGs
and nano
+ Leading major Anancia! companios and
+. Fugt Imo the Swedish business sectors and
International Inhvenee on these.
+. Experience with and knowledge of sophisticated
sk models
PDirectorships and other offices:
Rederier AB Gotland and a aubsidiary fehairmøn]
'Sunelsen Frit Naringsliv/Timbro (member Fine
Board of directors]
LARS FORBERG
Elected byte general meeting
Managing Partner at Cevian Capital
r Born on 30 November 1965.
| NabOnS Swedish
Joined the Boardon 18 March 2013.
i Most recently re-elected in 2014
Independent
Competencios:
+ Extensive board and investment experience across
mulugle Industries including hrancia! services] and
geographies In particular with companies managing
Strateg, operationel and organsational change
lent Pie (member of the board ef directors]
AB Volvo (member ofte nomination commåt
Cevian Caprat td (member of the board of directors)
Caviar Caps AG ener man
Born on 2 January 1064
Nationality: Danieh
Joinedthe Board on 27 March 2012
Most recently Fe-eiected in 2014
Independent
Cnairman øf the Audit Committee
Competence:
+ Broad experience in internstione! business
operations and solid understanding øf Danish and
imernationa! Anancis! reporting practices
+. Funding ofinter nations! Companies reguiring
bignifcant investments Krogh debt and ØV
markets
+. Krowlndge of cuhures and scanomie/political cor.
divons In Danske Bank's markets
berg Group chalrman or member of the boards
member)
DONG Energy A/S fvicechairman]
ROLVERIK RYSSDAL
Flectes by the genera me
CEO, Schibsted ASA
Born on7 November 1962
Nationahty: Norwegian
Sired the Board on 18 March 2014
Independent
Competencies:
Ektensive consumer busines
including expenence with communieson
Slrmegten
+ Irdepthknowtedge of ai
iransformation processes.
Pirectorshigs and other offices:
'Schibsted Media Group (chairman of the boards of
directors of six subaldarsn)
[E. Pedersen & Co, (member ofthe board of directors]
CAROLSERGEANT
Elected by the gener
ZX
Bornon 7 August 1952
Nationality: Brite
Most recently re-elected in 2014
Ind opendene
Chairman ofthe Cradit and Risk Commistea and
member afihe Audi Committee
Competencies:
+”Senior management experience from the public
and private hnsnelat arven sectors in TREK
+. Broad and in-depth knowledge of credit and risk
IRSARØEENT SA reg ISLDrY Iosue In the UK and
Europe
+ Signihcent change mar
Pirectorships and other offices:
Private sector rect orshIps.
Secure Trust Bank plc fmamber of the board of
recrors)
Pub policy puskions:
Independemt Project Board on audit of high cost and
tegne denned contribution work place penaon She.
mes, UK Offce of Fair Trading (Cha MER
Ccnarity and academic positions:
Pub Concern st Work [UK wrhistlebloming charityl
feber)
FCans Business Schoo! jmember oftha advisory board)
Briush Standorés Institute PoliGy and SKESLeRY
Committee fehairman)
"The Loyds Register Foundation ftrustve)
The Governing Counci of the Camre for the Study of
Finance! Innavauon (CSF) member)
JM HAGEMANN SNABE
Bected by the general meeting
Seined the Board on 18 March 2013
Most røcemtiy rø-electød in OA
independent
"Ta dept knowledge of IT systems and solstions
1. Hløndevel management experience from large
internationat organisation
1. tinderstanding of banking and Anancial servicer
Directorahips and other offices:
Allan SE member of ihe supervisory board)
Bang & Olufsen A/S [vice chrmøn
SAP BE (member of the supervisor board)
Samens AG fneberefite supervaory boret
Board and chair of the Forums Certre for Global
Induntnen
KIRSTEN EBBE BRICH
Elected by the am pioyees
Board member o! Danske Kreds
Born on 15 dely 1973
Nationatity: Danisn
Seine the Board on 18 March 2014
SA
CARSTEN ELERTSEN
Flected by the employees
Vice Chairman of Dansk
Kreds
Born on 17 September 1949
Nationalty: Dani
Joined the Board om 23 March 2010
Most recently ra-eleeted in 2014
Aposteignardens Fond vice Chairman
Danske Unions
"The Parish Chureh Counel! of Set. Mortens Church,
Næstved Jen ENØ,
The Næstved Cemeteries
'SHARLOTTE HOFFMANN
Elected bythe employees
senior Personal Customer Adviser
Born on 8 October 1965.
Nationality Dans
Joinedthe Board on 14 March 2006
Mast recently rø-elacted in 2014
STEEN LUND OLSEN
Chairman of Danske Kre
r Bornon 21 February 1972
fag) | Natlonality: Dans
ained the Board on 18 March 2014
Directorships and other offices:
Danske Unions (charmen)
Finansforbundet Financial Services Union Denmark)
imomber ofthe esacutive commit)
Donske Bank Pensionskasse for førtidspensionister
Imember ofte board st directors
Management and directorships - Executive Board
THOMAS. BORGEN
Chief Executive Officer
' Born on27 March 1964
fB ||$ Jormad the Boar on 1 September 2008.
Pirectorahips and other oftes:
Danica Pension. Livsforsikringssktieselskab
fenairman)
Forsikringsselskabet Dansca,
'skadeforsikriøgsakoselskab af 1999 Jchairmar)
Kong Olav Vis Fond
TONNY THIERRY ANDERSEN
[TE] memonaoseptember 1964
Joined the Board on I Saptember 2008
Directorships and other offices:
Bankernes Kontantservice A/B
Danske Bank International S.A. fehairman]
Danske Bank Oy) fchairman)
Tre Danish Bankers Association (charmen)
The Private Contingency Association for the Winding
upo! Distressed Banks, Savings Banks and
Co-operative Banks fehairmEn
Realkredit Danmark A/S (charmen)
YO. Danmark [CFOY,
bre
Danish Economic Council
JAMES DITMORE
hest of Group Services 8 Group IT [000]
Born on 10 July 1950
Joined the Board on 21 Apr 201a
Birectorships and other offices:
MT PeopleNetarork.
Head of Business Banking
Ra
Dursctorshyps and other ofåces:
Northern Bak mme Jeheirman]
Danske Lansing AS farmer
Resikresk Danmark A/S (ve sharm)
Grænsefonden (member ofre board at diractors]
Dagmar Marshalls Fond [member of the Border
preset
Born on 11 May 1972.
Joined the Board on I June 2012
HENRIK RAMLAU-HANSEN
AN] Joined the Board on I January 201)
Pirectorships and other ofåcer
Forsikringsselskabet Danica, Skadeforsikrings-
aktieselskab af 1OØ vice Chairman]
Donica Pension. Livsforsikringsaktieselskab [vice
Krag
Kreditforeningen Danmarks Pensionsatvikling:
kasse fchairman)
LRRenlkredit A/S (member o! the board of directors)
Resikredn Danmark A/S member of the bare or
GLENN SODERHOLM
Mes of Corporates & institutions
Born on 28 July 1964
EN | Joined the Board on 1 November 2013
Duwectorstips and other ohces:
Danish Ship Finance A/S [Danmarks Skibskredit A/S)
member ofthe board of directors and of the audit
Sommittee)
Supplementary
information