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Interim report
- first half 2024
Danske Bank Group
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Contents
Management’s report
Financial statements
Statements
Income statement
Statement of comprehensive income
Balance sheet
Statement of capital
Cash flow statement
Notes
30
30
31
32
34
35
Statement by the management
Independent auditor’s review report
Supplementary information
73
74
75
Financial highlights - Danske Bank Group
Executive summary
Strategy execution
Sustainability
Financial review
Business units
Personal customers
Business Customers
Large Corporates & Institutions
Danica Pension
Northern Ireland
Group Functions
Definition of alternative performance measures
3
4
5
7
8
14
15
17
19
22
24
26
28
2
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Financial highlights - Danske Bank Group
First half
First half
Index
Q2
Q1
Index
Q2
Index
Full year
First half
First half
Index
Q2
Q1
Index
Q2
Index
Full year
2024
2023* 24/23
2024
2024 Q2/Q1
2023* 24/23
2023*
(DKK millions)
2024
2023* 24/23
2024
2024 Q2/Q1
2023* 24/23
2023*
Balance sheet (end of period)
Income statement
(DKK millions)
Net interest income
Net fee income
Net trading income
Net income from insurance business
Other income
Total income
Operating expenses
18,287
16,535
7,074
1,377
949
324
6,270
2,238
-145
28,011
25,586
12,818
12,642
689
138
111
113
62
-
109
101
92
of which resolution fund, bank tax etc.
454
496
Profit before loan impairment charges
15,193
12,944
117
Loan impairment charges
Profit before tax
Tax
Net profit
-99
-28
15,292
12,972
3,824
2,794
11,468
10,178
-
118
137
113
Ratios and key figures
Dividend per share (DKK)**
Earnings per share (DKK)
Return on avg. shareholders' equity (% p.a.)
Net interest income as % p.a. of loans and
deposits
Cost/income ratio (C/I), (%)
Total capital ratio (%)
Common equity tier 1 capital ratio (%)
Share price (end of period) (DKK)
Book value per share (DKK)
7.5
13.4
13.1
1.3
45.8
22.5
18.5
7.0
11.9
12.4
1.1
49.4
22.4
18.1
100
110
79
93
84
101
102
85
99
-
103
103
104
9,145
3,698
608
457
147
9,142
3,376
769
492
176
14,055
13,955
6,481
6,337
209
7,574
-200
7,774
1,936
5,839
7.5
6.8
13.3
1.3
46.1
22.5
18.5
246
7,618
101
7,517
1,888
5,629
-
6.6
12.9
1.3
45.4
23.0
18.5
Due from credit institutions and central
banks
Repo loans
Loans
Trading portfolio assets
Investment securities
Insurance assets
Other assets
Total assets
254,350
251,569
340,108
259,077
101
131
254,350
247,998
340,108
326,300
103
104
251,569
259,077
101
131
271,434
272,841
1,652,294 1,633,382
101 1,652,294 1,631,975
101 1,633,382
101 1,670,142
497,400
559,305
273,642
288,277
89
95
497,400
487,028
102
559,305
273,642
276,156
99
288,277
89
95
548,189
283,914
522,846
502,546
104
522,846
514,238
102
502,546
104
496,031
223,118
237,451
94
223,118
226,112
99
237,451
94
228,429
3,763,759 3,731,608
101 3,763,759 3,709,808
101 3,731,608
101 3,770,981
Due to credit institutions and central banks
76,876
71,592
107
76,876
64,537
233,519
238,059
98
233,519
230,255
119
101
71,592
107
70,774
238,059
98
197,140
1,072,032 1,061,892
101 1,072,032 1,050,241
102 1,061,892
101 1,108,898
Repo deposits
Deposits
Bonds issued by Realkredit Danmark
730,638
712,186
Other issued bonds
356,660
308,444
103
116
730,638
745,981
98
712,186
356,660
310,846
115
308,444
103
116
741,062
315,145
Trading portfolio liabilities
372,509
480,024
78
372,509
398,322
94
480,024
78
454,487
Insurance liabilities
Other liabilities
Subordinated debt
Shareholders' equity
506,832
486,606
199,586
165,819
37,052
38,338
104
120
97
506,832
500,719
199,586
195,816
37,052
39,674
101
102
93
486,606
165,819
38,338
104
120
97
482,630
186,332
38,774
178,055
168,648
106
178,055
173,417
103
168,648
106
175,739
Total liabilities and equity
3,763,759 3,731,608
101 3,763,759 3,709,808
101 3,731,608
101 3,770,981
*Comparative information has been restated as described in note G2(b).
107
123
67
238
-
115
102
86
130
114
129
192
117
8,514
3,017
906
192
-438
12,192
6,350
243
5,842
-175
6,018
1,007
5,011
7.0
5.8
12.0
1.2
52.1
22.4
18.1
166.0
196.4
34,972
12,904
2,613
1,472
460
52,422
25,478
989
26,944
262
26,682
5,420
21,262
14.5
24.8
12.7
1.2
48.6
23.1
18.8
180.4
204.4
207.5
209.8
166.0
196.4
207.5
209.8
206.6
202.5
Full-time-equivalent staff (end of period)
20,079
21,339
94
20,079
20,094
100
21,339
94
20,021
*Comparative information has been restated as described in note G2(b)
**Dividend for the first half of 2024 is an interim dividend of DKK 7.5 per share. Dividend for 2023 of a total of DKK 14.5 per share consists of an interim
dividend of DKK 7.0 per share that was paid out in connection with the interim report for the first half of 2023 and a dividend of DKK 7.5 per share for the
second half of 2023 that was paid out on 26 March 2024.
3
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Executive summary
The development and results for the first half of 2024 have been
satisfactory for Danske Bank. In an environment with a high level
of geopolitical uncertainty, we continued our rigorous focus on
customers and on executing planned initiatives under our Forward
’28 strategy. Our financial results continued the stable trend we
saw in the first quarter, with higher core income driven by strong
customer demand for investment and capital markets solutions
and continually strong credit quality with loan impairment rever-
sals of DKK 99 million in the first half of 2024. Secondly, we con-
tinued to progress towards delivering on the targets set out in For-
ward ’28 by executing on our KPIs for the business units and in-
corporating technology such as GenAI and cloud-based solutions
to reduce the use of legacy platforms. Our focus on execution and
our efforts to improve Danske Bank to the benefit of all stakehold-
ers is moving us forward as expected – which is positive for both
our customers and society.
Executing on Forward ’28 entails being at the forefront of digital
and technological development. We are therefore excited to part-
ner up with fintechs and look forward to the great opportunities
for collaboration and innovation within digital banking. In our new
domicile with its open and transparent architectural expression –
to which we moved this spring after 149 years at Holmens Kanal
– innovation and knowledge-sharing are integrated into our ways
of working, further fostering a good foundation for new digital solu-
tions.
During the second quarter, the macroeconomic outlook turned
slightly more positive. The outlook for economic growth in
Denmark and the wider Nordic region has thus improved, and
recent economic data points, such as inflation and employment
levels, have been better than expected. In the second quarter, we
revised our guidance for full-year 2024 net profit to DKK 21-23
billion from DKK 20-22 billion on the basis of a small reversal of
loan impairment charges and continually strong credit quality
backed by a better macroeconomic outlook. In a world with higher
uncertainty – stemming from geopolitics, climate and more – we
remain prudent and well-provisioned.
4
Danske Bank / Interim report first half 2024
In June, we also saw the first rate cuts by the European Central
Bank (ECB), followed by the Danish central bank, since 2019.
While the timing of further rate cuts is uncertain, we think the
cuts are a positive step and are likely to benefit economic activity.
Following the Danish central bank’s lowering of rates, we lowered
selected lending and deposit customer rates to ensure our
offering remains attractive.
All this means that in the first half of 2024, we achieved a satis-
factory and stable performance that resulted in a ROE of 13.1%.
Importantly, our progress on Forward ’28 continues, and we con-
tinue to be a solid financial partner for our customers in a rapidly
changing environment, providing financing for the green transition
and investing to develop our solutions.
In relation to sustainability, we have, for example, launched a new
digital solution that makes it easier for customers to make sus-
tainable investments. This solution also provides customers with
an overview directly in Danske Mobile Banking of how their portfo-
lios are performing in relation to a number of sustainability indica-
tors. Additionally, alongside loans for energy efficiency improve-
ments, we now offer advisory services for climate adaptation
through a partnership with an engineering firm.
Capital and funding
Danske Bank’s underlying business is strong, our treasury asset
and liability management is prudent, and our capital and liquidity
positions continue to be solid with significant buffers well above the
regulatory requirements. At the end of June 2024, our liquidity
coverage ratio stood at 187% (31 December 2023: 170%), with
an LCR reserve of DKK 589 billion (31 December 2023: DKK 615
billion), and our net stable funding ratio stood at 125%.
These positive effects were countered by the prudent front-loading
in the second quarter of the majority of our anticipated Capital Re-
quirements Regulation III (CRR3) impact of DKK 20 billion. In addi-
tion to an increase in the REA attributable to credit risk, we there-
fore saw a total REA increase of DKK 37 billion, which brought the
total REA to DKK 846 billion at the end of the second quarter. On
the basis of the Group’s current and updated analysis of the CRR3,
the Group’s current capital planning takes into account the ex-
pected REA impact of the initial implementation in 2025.
Danica Pension’s solvency coverage ratio increased from 170% at
31 December 2023 to 217% at 30 June 2024, reflecting the very
strong financial foundation of the business. The higher solvency
coverage ratio resulted primarily from an adjustment of the method
of determining how the loss-absorbing capacity of deferred taxes is
to be recognised in the solvency capital requirement.
Share buy-back programme
At the end of June 2024, Danske Bank had bought back around
10.7 million shares for a total purchase amount of DKK 2.2 billion
(figures at trade date) of the planned DKK 5.5 billion share buy-
back programme.
Financials
Danske Bank delivered a net profit of DKK 11,468 million in the
first half of 2024, against a net profit of DKK 10,178 million in the
first half of 2023. Good customer activity and an uplift in net inter-
est income due to the positive interest rate environment, combined
with low loan impairment charges, supported the financial result
for the first half of 2024.
Net fee income increased 13% from the level in the same period
last year, due mainly to higher customer activity and repricing ac-
tions. Higher performance fees from Asset Management and cash
management services also contributed to the increase in net fee in-
come.
Net trading income decreased as the first half of 2023 was excep-
tional but also due to lower secondary customer activity and
changed market dynamics.
Net income from insurance business increased 38% from the level
in the first half of 2023. The increase was due mainly to an in-
crease in the net financial result. Furthermore, income included a
reversal of provisions of DKK 50 million related to the sale of
Danica Norway in 2022.
Operating expenses are on track to end in line with our full-year
guidance. The year-on-year increase was caused mainly by higher
digitisation investments made under our Forward ’28 strategy and
higher bonus payments and staff costs that were impacted by
wage inflation.
Loan impairment charges reflect overall solid credit quality and
were low in the first half of 2024, amounting to a net reversal of
DKK 99 million. Growth is expected to gradually return to normal
levels, and the impact on impairments is reduced. However, the
macroeconomic landscape remains uncertain.
Dividend for the first half-year of 2024
On the basis of our strong financial performance in the first half-
year of 2024 and our strong capital position at the end of the pe-
riod, the Board of Directors has approved an interim dividend of
DKK 7.5 per share, corresponding to 56% of net profit for the pe-
riod.
Regarding capital distribution for 2025 and beyond, Danske Bank
will return to annual dividend payments.
Released capital from Norwegian personal customer exit
During the fourth quarter of 2024, we intend to distribute the re-
leased capital from the exit of our Norwegian personal customer
business as an extraordinary dividend payment once the sale to
Nordea has closed. The released capital is expected to amount to
approximately DKK 5.5 billion.
Distribution of remaining net profit for 2024
Finally, it is the intention of the Board of Directors to distribute the
full remaining net profit for the full-year of 2024 in 2025. This is
subject to our continued strong financial performance, relevant ap-
provals, including from the Danish Financial Supervisory Authority,
and our capital ratios remaining above our capital requirements.
Outlook for 2024
On 26 June 2024, we revised the outlook for 2024 upwards to a
net profit in the range of DKK 21-23 billion. At the release of our
annual report for 2023 on 2 February this year, we guided for a full-
year 2024 net profit in the range of DKK 20-22 billion.
The profit upgrade follows our continually strong credit quality and
reversals of impairment charges for the second quarter of 2024.
We therefore now expect full-year loan impairment charges to be
up to DKK 0.6 billion.
For the financial targets for 2026, we maintain our assumption for
loan impairment charges of approximately 8 basis points through
the cycle.
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Strategy execution
(BWoW), our version of agile software development, has reached a
high level of maturity since its introduction three years ago and is
benchmarked to be among the best performing in the market.
We are pleased to already see progress with the execution of our
Forward ’28 strategy, which we announced in June 2023. Proof
points include the introduction of our first self-service welcoming
journey for personal customers in partnership with fintech com-
pany Backbase, the continuing improvement in business customer
satisfaction enabled by upskilling advisers, and an increase in the
number of products available via our digital District platform for
business customers.
We continue to improve Danske Bank as a workplace, and em-
ployee engagement is rising. Our workplace vision is characterised
by an engaged workforce and the individual employee experiencing
inclusion, flexibility, growth opportunities and a deep sense of
belonging. We are pleased to see that employee engagement lev-
els across the Group continued the positive development that be-
gan two years ago. In our latest culture & engagement survey, the
employee satisfaction & motivation index score increased further
from 75 in the fourth quarter of 2023 to 76 in the first quarter of
2024. The increased engagement levels are the result of collective
efforts throughout the organisation. Targeted initiatives that sup-
port the culture and workplace transformation include strengthen-
ing leadership capabilities, a hybrid work setup that supports col-
laboration, well-being and productivity as well as our emphasis on
people development through regular development-focused dia-
logue.
During the first half of 2024, we took several important steps to
advance our sustainability agenda, including the publication of our
Climate Action Plan Progress Report and the inclusion of sustaina-
bility as one of the strategic themes in our Forward ’28 strategy.
Technology & Services
A key element in our Forward ’28 plans is delivery on our digital,
data & AI, and technology agendas.
We are accelerating the digital transformation across our business
to enhance customer journeys, improve the customer experience
and reduce costs and operational risks. Our newly established part-
nership with Backbase will allow us to bring a best-in-class ‘digital
front door’ to our customers. Also Better Ways of Working
5
Danske Bank / Interim report first half 2024
We are executing on our technology transformation by moving to
cloud-based technology, reducing the use of legacy systems and
complexity, and strengthening our data layer. We are also improv-
ing developer productivity by enhancing the software development
life cycle with new tools, including generative AI (GenAI), to reduce
software maintenance and change costs.
We have established strategic partnerships with Infosys and
Amazon Web Services (AWS) to advance our transformation, with
Infosys bringing in over 2,000 software specialists along with
specialised tools for data and GenAI.
GenAI is expected to have high-value impact within business and
banking, and we have taken important steps by launching our own
language model called DanskeGPT, which is already used by more
than 12,000 employees, and integrating the first GenAI solutions
into internal processes. With increasing investments, we expect to
implement more GenAI solutions soon.
Personal Customers
With Forward ’28, we set clear ambitions to grow our Personal
Customers business by offering customers a tailored experience
and holistic advice through a flexible engagement model and modu-
lar offering – powered by strong marketing and analytics.
Since the Forward ’28 announcement, efforts have been directed
towards mobilising the organisation, detailing plans and validating
assumptions in the context of an evolving environment. Execution
started in January 2024, focusing both on building the foundation
for the future and on initiatives that deliver direct impact now.
During the first half of 2024, we concentrated on enabling the tran-
sition to a future-proof, digital and differentiated service model to
cater to our customers’ evolving needs.
We have reached significant milestones in terms of building our
‘digital front door’. We focus on convenience, enabling our custom-
ers to manage most of their everyday banking needs via our
Danske Mobile Banking app. The recent addition of a Betalingsser-
vice (direct debit) feature to the app is a key proof point of this. We
also took an important first step towards welcoming all personal
customers digitally by introducing our first self-service welcoming
journey for young customers in Denmark. We will later expand this
capability to additional customer segments and markets. We have
a strong foundation for further scaling these initiatives with our
strategic partnership with Backbase.
Business Customers
In the first half of 2024, we saw good commercial momentum in
relation to the goal of our Forward ’28 strategy, which is to be the
market leader for Nordic businesses with advanced needs, interna-
tional needs and sustainable transformation ambitions.
We also sharpened our holistic advisory offering by training advis-
ers in wealth planning and onboarding additional advisers in Private
Banking. We are pleased to see increases in assets under man-
agement and in Danske Invest’s market share as well as record-
high customer satisfaction levels across Global Private Banking. In
addition, we are leveraging GenAI technology to support advisers in
our contact centres in relation to customer enquiries.
On the product offering side, we took important steps to enhance
our home finance initiatives, strengthen our retail investment port-
folio and sharpen our sustainability offerings in the first half of
2024.
Meanwhile, we made investing even more accessible by making
Danske Monthly Investment – our digital investment solution that
makes it quick and easy for customers to invest in funds directly in
Danske Mobile Banking – available also to customers in Finland
and Sweden.
In Sweden, we launched a sustainability partnership with Econans
as part of our commitment to sustainability and the strategy of in-
creasing our relevance by addressing a wider range of customer
needs. We also introduced a new feature in Danske Mobile Bank-
ing, which enables users to view their investment portfolios
through a sustainability lens by offering insights into how their in-
vestments perform on a variety of sustainability parameters.
Partnerships remain a key strategic priority, and in the first half of
2024, we saw a lot of activity in this area. Our collaboration with
Testaviva strengthens our financial advisory setup and widens our
legal services outreach, helping customers with crucial matters
such as inheritance and wills. Our longstanding alliance with
Akava, initiated in 2016, offers significant financial advantages to
Finnish students, allowing them to strengthen their academic fo-
cus. Moreover, our association with the Finnish Landlord Associa-
tion reflects our emphasis on cultivating new customer relations.
Through these partnerships, we constantly enhance our services
and expand our customer reach, in line with our strategic ambi-
tions.
To grow our business, we continued to invest in marketing to
strengthen our market positioning and increase consideration
among potential business customers across the Nordic countries.
In addition, we recruited almost 20 dedicated acquisition manag-
ers to accelerate our efforts to acquire new customers, while tak-
ing the first steps towards deploying a more structured approach
to customer acquisition across segments. As a result, we saw a
positive development in the number of customers in the mid-corpo-
rate and growth segments.
Customer satisfaction remained high, and we will continue the
work in this area to deliver on our 2026 target of a 15% increase
in mid-corporates that are highly satisfied with our advisory offer-
ing. To do so, we have initiated an upskilling programme targeting
more than 350 advisers across the Nordic countries to enable
them to become more proactive towards our customers and to cre-
ate the most value at each touchpoint, thus driving both customer
satisfaction and cross-selling. Throughout 2024, we will extend
the scope of this training to ensure all advisers have completed a
comprehensive upskilling programme by the end of the year that
equips them with the skills necessary to deliver exceptional advice
and service to our customers.
In addition, we established a Nordic Commercial Excellence team
and invested in our analytical capabilities. This allows us to acceler-
ate our efforts within leveraging data analytics to provide advisers
with relevant leads and execute targeted campaigns on the basis
of our customers’ needs. Analytical support and leads will be a key
enabler for us to proactively drive cross-selling across segments to
deliver on our 2026 target of 5% annual growth in everyday bank-
ing fee income across Business Customers and Large Corporates
& Institutions.
ESG is a key focus area in terms of supporting our customers in
their sustainability transition and delivering on the Group’s sustain-
ability targets. To support our sustainable finance ambition, in May,
we entered into an agreement with the European Investment Fund
(EIF) under which we target small and medium-sized businesses
that are investing in sustainability. As a first step, loan guarantees
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
are offered via EIF for investments by Finnish companies into their
sustainability transition. We have already issued the first loan and
aim to scale the agreement to more markets.
In addition, to continue the upskilling of our advisers within sustain-
ability, we entered into a new partnership with Sustainability
Unlocked.
We continued to see positive traction in relation to our One Corpo-
rate Bank platform, which helps us drive scalable and cost-efficient
growth. We rolled out our Danske ID solution to our 700,000 us-
ers of District across the Nordic countries to make access to Dis-
trict, and thereby our self-service solutions, much easier. In addi-
tion, more than 20 new products became available for self-service
in District Marketplace, and we continued to see an increase in the
share of products ordered digitally. To encourage customers to use
our self-service solutions, we successfully piloted an initiative in
Sweden for a selected product. This drove adoption of our digital
product offering, as the number of digital orders for the product in
question rose 3.5 times. We will continue to expand our self-ser-
vice offering and launch initiatives to drive self-service adoption –
for example, we are establishing dedicated customer guidance
teams across the Nordic countries that will proactively contact
customers to build awareness of our digital self-service solutions.
Large Corporates & Institutions
At Large Corporates & Institutions, we are continuing the growth
journey of our franchise outside Denmark with an ambition to
onboard +40 new corporate customers. We are well on track and
have already established 23 new relationships year-to-date, of
which 16 are in our core growth market Sweden. Our proven track
record in Sweden is also underpinned by the number one position
in Prospera’s annual customer satisfaction survey for corporate
customers in 2023. This is the first time in its history that Danske
Bank Sweden has emerged as the leading bank despite the fierce
competition.
To further strengthen our position outside Denmark and capture
the ancillary business from our customer portfolio, we have en-
hanced our management teams in Sweden and Norway with
strong senior competences. This enhancement aims to improve
alignment across products, increase decision-making efficiency by
utilising local expertise and elevate our leadership presence within
the Swedish and Norwegian markets. Together with selected stra-
tegic hires in our Norwegian investment banking franchise, we
6
Danske Bank / Interim report first half 2024
believe these initiatives will be key enablers to capture the top two
capital markets position across Nordic banks over the cycle.
meet the specific needs of our institutional customers, while also
expanding our portfolio of financial products.
We are confident that the initial implementation progress of our
Forward ’28 strategy during the first six months has built a robust
foundation for continued execution.
In Asset Management, we have made significant progress in focus-
ing our business on the areas in which we are among the best and
can create the most value for our customers (e.g. portfolio solu-
tions, liquid and illiquid alternative investments and selected flag-
ship strategies). To commercialise and grow Asset Management,
we have engaged in two new strategic partnerships with Goldman
Sachs and Blackrock, leading to the sub-delegation of investment
management for a multitude of equity and fixed-income products.
This is a major achievement in our strategy of focusing our busi-
ness and increasing the use of strategic partnerships across our
value chain.
Large Corporates & Institutions and Business Customers share
the ambition of strengthening and leveraging our One Corporate
Bank platform. In the first half of 2024, we saw good commercial
traction both in the everyday banking space and on the milestone
plans for our digital investments.
From a Large Corporates & Institutions perspective, a key growth
driver to capture the 5% growth on everyday banking fees is our
ability to attract new house bank mandates for new and existing
Large Corporate customers. Our leading cash management offer-
ing has enabled us to add another 13 new house bank mandates
year-to-date.
To enhance customer integration, we have also established a new
unit focused on advancing integration through API and ERP. Addi-
tionally, we are expanding our partnerships, highlighted by our in-
vestment in United Fintech, a leading industry-neutral digital trans-
formation platform. These strategic efforts are crucial for driving
our growth and strengthening and leveraging our One Corporate
Bank platform.
Lastly, we see good traction in terms of deepening our relation-
ships with institutions operating in the Nordics. With our strong fo-
cus on diversifying our income composition from institutional cus-
tomers – we managed to capture new structured lending opportu-
nities especially from financial sponsors. We are proud to have
acted as mandated lead arranger, hedge bank and letter of credit
issuing bank for Renewable Power Capital – a renewable energy
company backed by CPP Investments - in their raising of EUR 555
million in project financing for a Swedish onshore wind portfolio.
The transaction constitutes one of the largest financing packages
for a greenfield onshore wind portfolio in Europe and will help de-
liver enough clean energy to power the equivalent of 182,000
households. This is a good example of how we support institutional
capital in its shift towards more illiquid and green assets.
Additionally, we have successfully executed NAV-based lending
transactions with institutional clients, including asset managers
and independent single-family offices, marking a promising start to
our presence in this part of the structured lending universe. This
achievement underscores our capability to tailor our offerings to
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Sustainability
To support our customers in their sustainability transitions, we
continue to develop sustainability-related financial advice, products
and services, and we enter into relevant partnerships to support us
in expanding our expertise in this area.
In January, a new ESG framework for the property sector was
launched, which makes it easier for real estate companies to com-
pare data and performance measures in relation to ESG factors.
The framework, called Real ESG – The Real Estate Reporting
Framework, has been developed through a collaboration between
Danske Bank, Realkredit Danmark and leading players in the real
estate industry.
We have also expanded our energy-improvement loans and now
offer loans to cover climate adaptation measures, such as the
installation of perimeter drains. Climate adaptation is relevant not
only in relation to individual homes but also when we look at how
we as a society are preparing for the future. In addition, we have
also extended our existing partnership with OBH Consulting Engi-
neers so our advisers can now offer customers the option of receiv-
ing a free 15-minute phone consultancy session with a construc-
tion consultant from OBH to discuss which of OBH’s advisory pack-
ages suits the customer's housing plans.
We aim to position ourselves to be able to best meet the growing
sustainability advisory needs of our customers and are therefore
integrating sustainability into traditional corporate advisory areas.
This spring, we merged our local Corporate Advisory teams in
Large Corporate Banking Denmark, Sweden, Finland and Norway
with the Sustainable Finance Advisory functions in the respective
countries.
To ensure that our investee companies have Paris Agreement-
aligned transition plans, we have also updated our Position State-
ment on Fossil Fuels by including stricter requirements governing
our investment activities. This update is currently under implemen-
tation and is expected to result in a significant reduction in the
number of companies in our investment universe that are involved
with fossil fuels.
Contributing to society’s green transition while simultaneously
delivering attractive returns for our customers is also at the core of
our pension business. With DKK 53.2 billion on the balance sheet
invested in the green transition by Danica Pension as of 30 June
2024 (2023: DKK 54.7 billion*), we are progressing towards our
2030 target of DKK 100 billion. Quarterly variations are due
mainly to portfolio adjustments of the asset classes and to market
value volatility.
A crucial factor enabling for us to support customers effectively is
ensuring that our frontline staff have relevant knowledge about
sustainability and the transition process. Consequently, we entered
a new partnership in May with Sustainability Unlocked, a leading
platform for sustainability learning. All employees will have access
to the platform, which serves as a flexible, on-demand and tailored
tool that provides access to industry-expert insights on a broad
range of sustainability topics.
In relation to our Nature & biodiversity agenda, we introduced tar-
gets for our engagement with customers and investee companies
in high-impact sectors in September 2023. By the end of 2024,
we aim to have engaged with 300+ business customers in the ag-
riculture sector and 50+ large corporates across the agriculture
sector, the forestry, pulp and paper sector, and the shipping sector.
Furthermore, Danske Bank and Danica Pension aim to have en-
gaged with 30 large, global investee companies within the three
high-impact sectors of energy, food and transportation by the end
of 2025. Our engagements are progressing according to plan, and
for the six months ending 30 June 2024, we have engaged with
236 (2023: 36) of the 350 in-scope companies across our Busi-
ness Customers and Large Corporate & Institutions units and 18
(2023: 6) of the 30 in-scope investee companies.
For our third focus area, Human rights & social impact, our focus is
to support the protection of internationally recognised human
rights, including labour rights. In May, we published our second Hu-
man Rights Report, which provides transparent disclosure of how
we manage potential and actual adverse impacts on human rights.
Within the social agenda, we also view diversity and inclusion as
an important theme, for which we use our targets on gender bal-
ance as a measure of progress. To support us in our aim of increas-
ing the share of women’s representation, we have set 2028 gen-
der balance targets for all leadership groups. At leadership levels,
the percentage of women remains on par with the level at year-end
2023 for all leadership levels, except in relation to senior leaders,
where there is a slight decrease from 34% to 33%.
We are in the process of implementing the Corporate Sustainabil-
ity Reporting Directive (CSRD) and will present our sustainability
statement as part of the Annual Report 2024.
Sustainability approach and priorities
Sustainability is one of the four core pillars in our Forward ’28
strategy, and in February we announced our strategic approach to
sustainability towards 2028. We have defined three strategic fo-
cus areas for our sustainability efforts: supporting our customers
in their sustainability transition, ensuring a robust and resilient
bank, and managing our societal impact. With these focus areas in
mind, we have analysed our sustainability-related impacts, and we
have prioritised three overarching and interlinked sustainability
agendas: Climate change, Nature & biodiversity and Human rights
& social impact.
In relation to our Climate change agenda, we are actively support-
ing the transition towards net-zero carbon emissions by 2050 or
sooner through our Climate Action Plan, which serves as our
roadmap towards net zero. In February 2024, we published our
first Climate Action Plan Progress Report, which provides a status
on our progress towards our net-zero commitments and our inter-
mediate carbon emission reduction targets.
Gender balance
38
40
62
60
22
78
40
60
33
40
41
45
67
60
59
55
Board of Directors
Executive Leadership Team
Senior leaders
Leaders in general
Gender balance H1 2024
% under-represented
% over-represented gender
2028 gender balance targets
% under-represented
% over-represented gender
*In 2024, the reporting principle for the KPI ‘investments in the green transition by Danica Pension’ was updated. Therefore, the comparative figure from year-
end 2023 has also been updated.
7
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Financial review
H1 2024 vs H1 2023
Net profit increased to DKK 11,468 million (H1 2023:
DKK 10,178 million) as a result of increases in net interest in-
come, net fee income and net income from insurance business.
Good customer activity and low loan impairment charges also sup-
ported the financial result for the first half of 2024.
Income
Net interest income increased to DKK 18,287 million (H1 2023:
DKK 16,535 million). The increase was driven by higher income
from deposits following repricing actions as well as product devel-
opment initiatives. Lending margins were under pressure from the
rise in market rates.
Net fee income increased to DKK 7,074 million (H1 2023:
DKK 6,270 million). Everyday banking fees increased on the back
of higher customer activity as a result of the more stable financial
markets as well as our repricing actions. Furthermore, higher per-
formance fees from Asset Management and cash management
services also contributed to the increase in net fee income. In addi-
tion, we saw a non-recurring reduction in fee expenses of DKK 102
million.
Net trading income decreased to DKK 1,377 million (H1 2023:
DKK 2,238 million) as the first half of 2023 was exceptional, but
also due to lower secondary customer activity and changes in mar-
ket dynamics in the first half of 2024.
Net income from insurance business increased 38% from the level
in the first half 2023 and amounted to DKK 949 million (H1 2023:
DKK 689 million). The increase was due mainly to an increase in
the net financial result. Furthermore, income included a reversal of
provisions of DKK 50 million related to the sale of Danica Norway
in 2022.
Other income amounted to DKK 324 million (H1 2023: DKK -145
million). The sale of the Norwegian company Tyssekraft A/S in the
first quarter of 2024 contributed DKK 21 million, while the year-
earlier period was affected by a provision related to prudent valua-
tion and expected transaction costs of DKK 693 million that was
8
Danske Bank / Interim report first half 2024
made in connection with the agreement to sell our personal cus-
tomer business in Norway.
Operating expenses
Operating expenses amounted to DKK 12,818 million (H1 2023:
DKK 12,642 million) and are on track to end in line with our full-
year guidance. As expected, the development was impacted by
higher digitisation investments made under our Forward ’28 strat-
egy and higher bonus payments and staff costs that were impacted
by wage inflation.
Finally, the Resolution fund, Swedish bank tax etc. item stood at
DKK 454 million (H1 2023: DKK 496 million).
Loan impairment charges
Loan impairments were low in the first half of 2024, amounting to
a net reversal of DKK 99 million (H1 2023: a net reversal of
DKK 28 million).
Loan impairment charges
First half 2024
First half 2023
% of net
credit
(DKK millions)
Charges
exposure* Charges
Personal Customers
Business Customers
Large Corporates &
Institutions
Northern Ireland
Group Functions
Total
-178
591
-513
3
-2
-99
-0.05
0.18
-0.29
0.01
-0.20
-0.01
478
142
-522
-131
5
-28
% of net
credit
exposure*
0.12
0.04
-0.28
-0.49
0.35
0.00
* Defined as net credit exposure from lending activities, excluding exposure
related to credit institutions and central banks and loan commitments.
The impairment level reflected the overall solid credit quality and
the fact that macroeconomic growth is expected to gradually re-
turn to normal levels, although the macroeconomic landscape re-
mains uncertain. We continue to apply significant post-model ad-
justments related to the macroeconomic uncertainty and remain
watchful of any possible credit deterioration.
Personal Customers saw impairment rever-
sals, contrary to the first half of 2023 when
there was a net charge. Reversals for the first
half of 2024 were driven by a combination of
updated macroeconomic scenarios and a re-
duction in post-model adjustments due to the
improved macroeconomic outlook. Underlying
credit quality remained stable.
Business Customers had higher impairment
charges than in the first half of 2023 owing to
a few cases in our leasing organisation and an
increase in post-model adjustments. Underly-
ing credit quality remained solid.
Large Corporates & Institutions continued to
see a net reversal owing to successful restruc-
turing that resulted in a decline in charges
made against facilities to individual customers.
The macroeconomic scenarios have been up-
dated to reflect a trend towards a more normal-
ised situation. However, the downside scenario
continues to be a severe stagflation scenario.
The scenario weights were unchanged from
the end of 2023 and were as follows: The
base-case scenario has a probability of 60%
(2023: 60%), the upside scenario has a proba-
bility of 20% (2023: 20%) and the downside
scenario has a probability of 20% (2023:
20%).
Net profit
DKK 5,839 million
for the second quarter of 2024
Q2 2024 vs Q1 2024
Net profit increased to DKK 5,839 million (Q1 2024:
DKK 5,629 million). An increase in net fee income and stable
net interest income more than offset a decrease in net trading
income and net income from insurance business.
• Net interest income amounted to DKK 9,145 million (Q1
2024: DKK 9,142 million), a relative flat development from
the preceding quarter.
• Net fee income increased to DKK 3,698 million (Q1 2024:
DKK 3,376 million), driven by higher customer investment
activity, including increased investment fees due to an im-
proved performance of our funds and higher fees from assets
under management. In addition, we saw a non-recurring de-
cline in fee expenses of DKK 102 million.
• Net trading income decreased to DKK 608 million (Q1 2024:
DKK 769 million) due primarily to seasonality and lower cus-
tomer activity.
• Net income from insurance business decreased to DKK 457
million (Q1 2024: DKK 492 million). The net result de-
creased mainly due to developments in the financial markets
being less positive than in the first quarter of 2024.
• Operating expenses increased to DKK 6,481 million (Q1
2024: DKK 6,337 million) due to higher digitalisation invest-
ments and an increase in the tax on labour costs.
• Loan impairments amounted to a net reversal of DKK 200
million (Q1 2024: charges of DKK 101 million). Reversals in
the second quarter were driven by solid credit quality and
successful restructuring activities.
• Tax amounted to DKK 1,936 million (Q1 2024: DKK 1,888
million), corresponding to an effective tax rate of 24.9% (Q1
2024: 25.1%).
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Tax
The tax expense of DKK 3,824 million (H1 2023: DKK 2,794 mil-
lion) corresponded to an effective tax rate of 25.0% (H1 2023:
21.5%).
Lending
Lending stood at DKK 1,652 billion (end-2023: DKK 1,670 billion).
Mortgage lending at nominal value at Realkredit Danmark
amounted to DKK 802 billion (end-2023: DKK 806 billion). Lend-
ing volumes in Norway and Sweden saw a negative effect from the
depreciation of the currencies.
Following the Forward ’28 strategy announcement in June 2023,
Danske Bank entered into an agreement to sell its personal cus-
tomer business in Norway. The sale, which includes, among other
things, loans and deposits, is expected to close during the fourth
quarter of 2024.
At Large Corporates & Institutions, we have seen a decrease in
lending volumes of 4% since the end of 2023, reflecting the vola-
tile operating environment. Lending volumes in General Banking in-
creased 3% from the end of 2023, however, driven by corporate
customers in Sweden and Denmark.
Lending at Business Customers showed a flat development. Bank
lending volumes in local currency increased across our Nordic
markets, except for Denmark. The depreciation of the currencies in
Norway and Sweden reduced bank lending volumes by DKK 3.6 bil-
lion, leading to an overall flat development in bank lending. Mort-
gage volumes increased 1% relative to the level at the end of
2023.
At Personal Customers, we saw a decrease in bank lending vol-
umes of 1%, with a flat development in Denmark, although with an
underlying increase in volumes from bank home finance products.
Total lending across markets decreased 1% from the level at the
end of 2023. The depreciation of the Swedish krona had a negative
effect of DKK 2 billion.
In Denmark, new gross lending, excluding repo loans, amounted to
DKK 70.2 billion. Lending to personal customers accounted for
DKK 13.4 billion of this amount.
Deposits
Deposits amounted to DKK 1,072 billion at the end of June 2024
(end-2023: DKK 1,109 billion). Deposit volumes in Norway and
Sweden decreased, due mainly to the depreciation of the
currencies.
Fuelled by our savings products, deposit volumes for Personal Cus-
tomers increased 4% from the level at the end of 2023. The in-
crease was driven by a 12% increase in deposits in the Global Pri-
vate Banking unit in addition to increases in Personal Customers
Denmark and Finland, both of 2%. The depreciation of the Swedish
krona had a small negative effect.
At Business Banking, deposit volumes increased in Finland and
Norway, driven by Advisory Banking customers. Deposit volumes
in Sweden and Denmark decreased as a result of a decrease in de-
posits from commercial real estate and Danske Business Direct
customers. Both the Swedish krona and the Norwegian krone de-
preciated further, with a total effect of DKK 1.7 billion since the end
of 2023. Total deposit volumes decreased 2% from the level at
end of 2023.
At Large Corporates & Institutions, deposit volumes decreased
14% from the end of 2023 due to seasonality around tax and
dividend payments and volatility in institutional deposits.
Credit exposure
Credit exposure from lending activities decreased to DKK 2,521
billion (end-2023: DKK 2,550 billion). The decrease in exposure
was caused by lower deposits with central banks and financial
institutions as well as a decrease in the Personal Customers
Norway exposure due to the decision to exit the personal customer
market in Norway as part of our Forward ’28 strategy.
Risk Management 2023, section 3, which is available at
danskebank.com/ir, provides details on Danske Bank’s credit risk
management.
Credit quality
Credit quality remained strong in the first half of 2024 for all
business units, and we remain vigilant for any possible
deterioration related to the uncertainty mentioned in the loan
impairment charges section above.
9
Danske Bank / Interim report first half 2024
Stage 3 loans
(DKK millions)
Gross exposure
Allowance account
Net exposure
Collateral (after haircut)
Stage 3 coverage ratio (%)*
Stage 3 gross/total gross credit exposure
30 June
2024
31 Decem-
ber 2023
32,399
9,521
22,878
20,069
77
1.3%
32,686
9,062
23,624
20,642
75
1.3%
* The stage 3 coverage ratio is calculated as allowance account stage 3 ex-
posures relative to gross stage 3 net of collateral (after haircuts).
Total gross credit exposure in stage 3 was stable at DKK 32.4
billion (end-2023: DKK 32.7 billion), corresponding to 1.3% of
total gross exposure. Stage 3 exposure was concentrated on
personal customers, commercial property, retailing and
construction and building materials, which combined accounted for
56% of total gross exposure in stage 3.
Allowance account by business units
30 June 2024
31 December 2023
Accum.
impairm.
charges
% of credit
exposure*
Accum.
impairm.
charges
% of credit
exposure*
(DKK millions)
Personal Customers
5,074
Business Customers
11,264
0.67
1.67
5,306
10,705
Large Corporates &
Institutions
Northern Ireland
Group Functions
3,324
854
23
0.94
1.34
-0.64
3,308
794
27
Total
20,539
1.11
20,140
0.68
1.58
0.92
1.34
1.21
1.07
* Relating to lending activities
The allowance account amounted to 1.11% (end-2023: 1.07%) of
credit exposure.
Interest rate risk in the banking book
Danske Bank is exposed to interest rate risk in the banking book
resulting from providing the Group’s core banking customers with
conventional banking products and from the Group’s funding and
liquidity management activities at Group Treasury (for more details,
please see section 5.2.3 of Risk Management 2023).
As part of managing the interest rate risk in the banking book, the
Group holds high quality liquid bonds, which are included in the cal-
culation of the Group’s LCR. To ensure aligned accounting treat-
ment across the banking book, these bonds are held at amortised
cost. As interest rates have risen, asset values in the banking book,
including bonds held at amortised cost, have fallen. This should be
seen in light of the significant increase in net interest income from
deposits and the corresponding impact on liability values. The car-
rying amount and fair value of the Group’s hold-to-collect bond in-
struments can be seen in note G13.
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Funding and liquidity
During the second quarter of 2024, the funding markets remained
strong while the focus shifted towards political elections. The well-
known and very tense geopolitical situation persisted.
Despite the uncertainty, the credit markets stayed active, with sta-
ble investor appetite for Danske Bank issues, which we continued
to take advantage of.
In the first half of 2024, the Group issued covered bonds of DKK
20.5 billion, preferred senior debt of DKK 6.9 billion, non-preferred
senior debt of DKK 21.7 billion and tier 2 capital of DKK 8.4 billion,
thus bringing total long-term wholesale funding to DKK 57.5 billion.
Our strategy is to be a regular issuer in the EUR benchmark format
and in the domestic USD market for preferred senior and non-pre-
ferred senior bonds in the Rule 144A format. We also maintain the
strategy of securing funding directly in our main lending currencies,
including the NOK and SEK. The benchmark issues are expected to
be supplemented by private placements of bonds.
From time to time, we will make issues in GBP, JPY, CHF and other
currencies when market conditions allow. Issuance plans for sub-
ordinated debt in either the additional tier 1 or tier 2 formats will
depend on balance sheet growth and redemptions on the one hand
and our capital targets on the other. Any issuance of subordinated
debt may cover part of our funding need. Note G7 provides more in-
formation about bond issues in the first half of 2024.
Danske Bank’s liquidity position remained robust. At the end of
June 2024, our liquidity coverage ratio stood at 187% (31 Decem-
ber 2023: 170%), with an LCR reserve of DKK 589 billion (31 De-
cember 2023: DKK 615 billion), and our net stable funding ratio
stood at 125%.
At 30 June 2024, the total nominal value of outstanding long-term
funding, excluding debt issued by Realkredit Danmark, was
DKK 351 billion (31 December 2023: DKK 337 billion).
Capital ratios and requirements
At the end of June 2024, the Group’s total capital ratio was
22.5%, and its CET1 capital ratio was 18.5%, against 23.1% and
18.8%, respectively, at the end of 2023. The movement in the
capital ratios in the first half of 2024 was driven primarily by an in-
crease in the total REA.
10
Danske Bank / Interim report first half 2024
Danica Pension’s solvency coverage ratio increased from 170% at
31 December 2023 to 217% at 30 June 2024, reflecting the very
strong financial foundation of the business. The change in the sol-
vency coverage ratio in the first half was primarily a result of Dan-
ica Pension making an adjustment to the calculation of the loss ab-
sorbing capacity of deferred taxes as well as an adjustment for tax
effects related to the risk margin, which is part of total capital.
During the first half of 2024, the total REA increased approxi-
mately DKK 18 billion, due mainly to the frontloading effect of initial
implementation of CRR3 of DKK 20 billion. We have thereby front-
loaded the majority of our anticipated CRR3 impact in the second
quarter.
Danske Bank’s capital management policies are based on the In-
ternal Capital Adequacy Assessment Process (ICAAP). In this pro-
cess, Danske Bank determines its solvency need ratio. The sol-
vency need ratio consists of the 8% minimum capital requirement
under Pillar I and an individual capital add-on under Pillar II.
Capital ratios and requirements
(% of the total REA)
Capital ratios
CET 1 capital ratio
Total capital ratio
30 June
2024
Fully
phased-in*
18.5
22.5
18.4
22.4
Minimum requirement for own funds and eligible liabilities
The Danish FSA sets the MREL at two times the solvency need
plus one time the SIFI buffer, the capital conservation buffer and
the systemic risk buffer. Furthermore, the CBR must be met in ad-
dition to the MREL. In the annual MREL decision from the Danish
FSA, the (backward-looking) MREL was set at 27.3% of the total
REA adjusted for Realkredit Danmark.
At the end of June 2024, the point-in-time requirement including
the CBR was equivalent to DKK 259 billion, or 36.3% of the total
REA adjusted for Realkredit Danmark. Taking the deduction of capi-
tal and debt buffer requirements for Realkredit Danmark into ac-
count, MREL-eligible liabilities amounted to DKK 307 billion. In ad-
dition, an MREL of 6% of the leverage ratio exposure (LRE) is in
place. The LRE-based requirement equalled 22.4% of the total REA
adjusted for Realkredit Danmark, making the REA-based require-
ment the binding constraint.
The Danish FSA has set the subordination requirement as the
higher of 8% of total liabilities and own funds (TLOF) and two times
the solvency need plus one time the CBR.
At the end of June 2024, the subordination requirement was
equivalent to DKK 215 billion. The backward-looking subordination
requirement, as set by the Danish FSA, was 29.3% of the total
REA adjusted for Realkredit Danmark. MREL-eligible subordinated
liabilities stood at DKK 258 billion.
Capital requirements (incl. buffers)
CET 1 requirement
14.5
14.5
- portion from countercyclical buffer
- portion from capital conservation buffer
- portion from systemic risk buffer
- portion from SIFI buffer
Solvency need ratio
Total capital requirement**
Buffer to requirement
CET 1 capital
Total capital
2.0
2.5
0.7
3.0
10.9
19.2
4.0
3.3
2.0
2.5
0.7
3.0
10.9
19.2
3.9
3.3
* Based on fully phased-in rules and requirements, including the fully
phased-in impact of IFRS 9.
** The total capital requirement consists of the solvency need ratio and the
combined buffer requirement. The fully phased-in countercyclical capital
buffer is based on the buffer rates announced at the end of June 2024.
At the end of June 2024, the Group’s solvency need ratio was
10.9%, an increase of 0.2 percentage points from the level at the
end of 2023. The increase was due mainly to a reassessment of
capital to cover data risks that increased the solvency need by
DKK 2 billion. The reassessment was made following the Danish
FSA’s orders issued on 12 February 2024.
A combined buffer requirement (CBR) applies to financial institu-
tions in addition to the solvency need ratio. At the end of June
2024, the Group’s CBR was 8.3%, an increase of 0.3 percentage
points from the level at the end of 2023 that was due to the Danish
government’s decision to activate the 7% systemic risk buffer with
effect from 30 June 2024.
provisional political agreement on the proposals for implementing
Basel IV. The new rules were adopted by the EU in June 2024 and
published in the EU Official Journal. The CRR3 will apply from 1
January 2025 and onwards in accordance with earlier expecta-
tions.
On the basis of the Group’s current and updated analysis of the
CRR3, the Group’s current capital planning takes into account the
expected REA impact of the initial implementation in 2025. The
Group has decided to frontload the majority of the anticipated
CRR3 impact effective from the second quarter of 2024.
The fully phased-in rules are subject to a lengthy transition period
and transitional arrangements. Taking into account the transitional
arrangements with regard to the output floor, the Group currently
expects the output floor to restrict the Group at the earliest in
2033 when the transitional arrangements are set to lapse.
On 3 October 2023, it was announced that the Danish Systemic
Risk Council had recommended to the Danish minister for Industry,
Business and Financial Affairs that a sector-specific Systemic Risk
Buffer (SyRB) with a buffer rate of 7% be activated for exposures to
real estate companies in Denmark. The Danish government has
decided to follow the recommendation and has activated the SyRB
with effect from 30 June 2024.
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
MREL requirement and eligible funds; H1 2024
DKK billions (% of total REA)
DKK 7.5 per share, corresponding to 56% of net profit for the pe-
riod.
Non-preferred senior debt > 1 year Preferred senior debt > 1 year
CET1, AT1, T2
MREL including CBR
307
(43.0%)
49
(6.9%)
97
(13.6%)
161
(22.5%)
259
(36.3%)
MREL including CBR
MREL funds
Note: The requirement and eligible funds are adjusted for Realkredit Dan-
mark’s capital and debt buffer requirements.
Leverage ratio
At the end of June 2024, the Group’s leverage ratio was 4.9% un-
der both the transitional rules and the fully phased-in rules.
Capital targets and capital distribution
The CET1 capital ratio target was kept at above 16% and ensures
a sufficiently prudent buffer in relation to the capital requirement.
Danske Bank fully meets this capital target.
The Board of Directors will continue to adapt the capital targets to
regulatory developments in order to ensure a strong capital posi-
tion.
Released capital from Norwegian personal customer exit
During the fourth quarter of 2024, we intend to distribute the re-
leased capital from the exit of our Norwegian personal customer
business as an extraordinary dividend payment once the sale to
Nordea has closed. The released capital is expected to amount to
approximately DKK 5.5 billion.
Distribution of remaining net profit for 2024
Finally, it is the intention of the Board of Directors to distribute the
full remaining net profit for the full-year of 2024 in 2025. This is
subject to our continued strong financial performance, relevant ap-
provals, including from the Danish Financial Supervisory Authority,
and our capital ratios remaining above our capital requirements.
Danske Bank’s dividend policy for 2025 and beyond remains un-
changed, targeting a dividend payout of 40-60% of net profit in the
form of annual dividend payments.
Danske Bank has strong capital and liquidity positions, and the
Board of Directors remains committed to our capital distribution
policy.
At 30 June 2024, we had bought back around 10.7 million shares
for a total purchase amount of DKK 2.2 billion (figures at trade
date) of our planned DKK 5.5 billion share buy-back programme.
The Supervisory Diamond
The Danish FSA has identified a number of specific risk indicators
for banks and mortgage institutions and set threshold values with
which all Danish banks must comply. The requirements are known
as the Supervisory Diamond.
At the end of June 2024, Danske Bank was in compliance with all
threshold values. A separate report is available at
danskebank.com/ir.
Realkredit Danmark also complies with all threshold values.
Dividend for the first half-year of 2024
On the basis of our strong financial performance in the first half-
year of 2024 and our strong capital position at the end of the pe-
riod, the Board of Directors has approved an interim dividend of
New regulation
As part of the EU Banking Package 2021 and in order to imple-
ment Basel IV, the European Commission adopted proposals in
October 2021. On 27 June 2023, the EU co-legislators reached a
11
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Credit ratings
On 2 June 2024, Moody’s raised its senior debt ratings of Danske
Bank A/S. The upgrade reflected Moody’s assessment of the clo-
sure of the Estonia case and other remediation cases as well as
the reassessment of its Loss Given Failure model for the Group.
Thus, the issuer rating and the preferred senior debt rating were
raised two notches, and the non-preferred senior debt rating was
raised one notch. At the same time, Moody’s raised its short-term
rating to P-1. Moreover, Moody’s also revised its outlook to Stable
from Positive.
Environmental, Social and Governance (ESG) ratings
On 31 May 2024, Sustainalytics lowered its ESG Risk Rating on
Danske Bank A/S to ‘Low Risk’ from ‘Medium Risk’, reflecting its
revised criteria.
12
Danske Bank / Interim report first half 2024
Danske Bank Group’s credit ratings
Counterparty rating
Deposits
Preferred senior debt
Issuer rating
Non-preferred senior debt
Tier 2
AT1
Realkredit Danmark A/S's credit ratings
Issuer rating
Danske Mortgage Bank plc's credit ratings
Issuer rating
Danske Bank’s ESG ratings
CDP Worldwide, UK
ISS ESG, USA
MSCI ESG Ratings, USA
Sustainalytics, USA
Moody’s ESG Solutions, USA
Fitch
AA-
Moody’s
S&P
Scope
Aa3/P-1
AA-/A-1+
AA-/F1+
A1/P-1/Stable
-
-
-
AA-/F1+
A1/P-1/Stable
A+/A-1 A+/S-1+/Stable
A+/F1/Stable
A1/P-1/Stable
A+/A-1/Stable A+/S-1+/Stable
A+
A-
BBB
Baa1
-
-
BBB+
BBB
BB+
A/Stable
BBB+/Stable
BBB-/Stable
A+/F1/Stable
A+/S-1+/Stable
A+/Stable
Score at
Score at
30 June 2024 31 March 2024
B
B
C+ Prime
C+ Prime
BBB
BBB
Low Risk
Medium Risk
60
60
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
As previously announced, Danske Bank has been working towards
restarting its debt collection in respect of personal customer cases
in Denmark in collaboration with a debt collection agency, Lowell
Danmark A/S. The new debt collection system is live, and the first
cases for collection were transferred to Lowell Danmark A/S in De-
cember 2023. Danske Bank has initially transferred the least com-
plex debt collection cases to Lowell Danmark A/S for collection.
The new IT system is continuously being enhanced and tested to
gradually handle more complex case types. This work will be gradu-
ally progressing in 2024.
Danske Bank continues to have a dialogue with and report its pro-
gress in the debt collection case to the impartial reviewers ap-
pointed by the Danish FSA.
Independent expert
In 2021, the Danish FSA appointed an Independent Expert whose
role, among other things, was to monitor and report on the pro-
gress with delivering on the Financial Crime Plan. The Danish FSA
has now extended the appointment for an eighth period and has or-
dered Danske Bank to let one or more experts follow the Bank for a
period of six months following the expiry of the current period for
which experts were appointed. The purpose of the appointment is
to follow whether the Bank complies with its obligations to the US
Department of Justice (the DoJ) and with the Plea Agreement en-
tered into by the Bank in December 2022 as part of the criminal
proceedings in the Estonia case. Following this period, further reap-
pointments of the Independent Expert may be expected.
Personal Customers in Norway
Following the Forward ’28 strategy announcement in June 2023,
Danske Bank entered into an agreement to sell its personal cus-
tomer business in Norway to Nordea. The sale of the personal cus-
tomer business includes the management of 15 Danske Invest
Horisont funds, which are primarily distributed to personal custom-
ers in Norway.
On 7 February 2024, we announced that the Norwegian Financial
Supervisory Authority had approved the sale, and on 15 December
and 20 December 2023, the sale was approved by the Norwegian
Competition Authority and the Danish Financial Supervisory Au-
thority, respectively, and all required public authority approvals
have thus been obtained.
Danske Bank and Nordea remain committed to making the transi-
tion as smooth as possible for both customers and employees. The
transaction is expected to be completed by the end of 2024.
Update on debt collection case
As announced on 31 August 2022, Danske Bank has chosen an
accelerated solution for its debt collection customers, whereby ap-
proximately 90,000 debt collection customers in Denmark will
have their debt to the bank set to zero, and Danske Bank will not
collect this debt. In the fourth quarter of 2022, we began communi-
cating to customers whose debt is set to zero, and at the end of
June 2024, more than 85% of the debt in approximately 90,000
active customer cases had been set to zero.
Furthermore, Danske Bank has decided to pay compensation on
the basis of a data-driven model to the customers who were at risk
of having been subject to overcollection due to the issues in the
historical debt collection systems.
The work involved in paying compensation to the debt collection
customers who may have been subject to overcollection began in
2023. Since Danske Bank initiated compensation pay-out in May
2023, the Bank has attempted to pay out compensation to approx-
imately 85% of the customers in scope for the accelerated data-
driven solution (excluding estate case customers). Danske Bank
will continue paying out compensation to the remaining debt collec-
tion customers in scope who may have been subject to overcollec-
tion in our efforts to provide finality to affected debt collection cus-
tomers.
13
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Business units
Personal Customers
Our Personal Customers unit provides advisory services to personal customers and Private
Banking customers in Denmark, Sweden, Norway and Finland. Our advisers and experts are
there to help customers when and how it best suits the individual customer - at online meet-
ings, via our websites or, if so required, over the phone or at a branch.
When our customers need to make important financial decisions about, for example, their
home, investments or pension, we offer customised advice that is based on their current
situation and needs. And with our intuitive digital solutions, we aim to make it as easy as
possible for our customers to do most of their banking business whenever and wherever they
want.
Business Customers
We offer our customers advice that adds value to their business, no matter whether the
customer is a sole proprietor or an entity in a multinational group. Our strategic advisory
services are always based on the needs of the business, for example in connection with
growth, an acquisition, a change of ownership, strategic development or international
expansion.
Our business customers have access to the market’s most innovative digital solutions that
make day-to-day banking easy and pave the way for new insights and opportunities.
Large Corporates & Institutions
Large Corporates & Institutions caters to the most complex financing and transaction needs
of large corporate and institutional customers, and we help them to prosper and grow. We
offer expertise in financing, risk management, investments and financial advisory services,
and our customers have access to our award-winning transaction banking solutions. Thanks
to our extensive network and our many years of experience, we serve as intermediary
between issuers and investors with a view to creating financing and investment opportunities.
Our goal is to be an inspirational partner that understands the customers’ strategic agendas
and offers tailored solutions to meet their needs.
14
Danske Bank / Interim report first half 2024
Danica Pension
Danica Pension’s strategy is based on our ambition to be our customers’ financial security
provider and thereby enhance customer satisfaction. We focus on proactively helping our
customers – both personal and business customers – to ensure that they have the right
pension, insurance and healthcare solutions, while we also generate attractive returns after
costs and contribute to creating a more sustainable society.
Northern Ireland
Danske Bank is the leading bank in Northern Ireland, serving personal, business and corporate
customers. The business is also a growing bank in targeted sectors across the rest of the
United Kingdom. We support our customers through face-to-face, online and mobile solutions.
Our focus in Northern Ireland is on remaining a stable, strong and risk-astute bank, consolidat-
ing our market-leading position alongside pursuing prudent low-cost growth opportunities in
the rest of the UK.
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Personal Customers
(DKK millions)
Net interest income
Net fee income
Net trading income
Other income
Total income
Operating expenses
of which resolution fund, bank tax etc.
Profit before loan impairment charges
Loan impairment charges
Profit before tax
Allowance account, loans
Deposits, excluding repo deposits
Covered bonds issued
Allocated capital (average)
First half
First half
Index
2024
2023*
24/23
Q1
Index
Q2
Index
Full year
2024
Q2/Q1
2023*
24/23
2023*
7,091
2,520
71
33
9,715
4,866
72
4,850
-178
5,028
7,017
2,086
107
-650
8,560
4,462
85
4,098
478
3,620
4,348
4,579
101
121
66
-
113
109
85
118
-
139
101
95
391,010
380,565
103
391,010
376,656
582,477
607,405
96
582,477
558,369
30,709
29,575
104
30,352
31,065
Q2
2024
3,547
1,321
37
18
4,923
2,545
31
2,377
78
2,299
3,544
1,199
34
15
4,793
2,320
41
2,472
-256
2,729
655,043
655,773
4,348
4,228
1.39
1.39
31.3
31.8
30.3
35.1
51.7
48.4
100
110
109
120
103
110
76
96
-
84
100
103
104
104
98
3,611
982
54
-670
3,977
2,209
44
1,768
66
1,702
647,194
4,579
380,565
607,405
29,439
1.42
24.0
23.1
55.5
98
135
69
-
124
115
70
134
118
135
101
95
14,166
4,175
200
-608
17,932
9,460
169
8,473
312
8,160
664,866
4,435
103
377,419
96
587,493
103
29,306
1.40
28.9
27.8
52.8
Net interest income as % p.a. of loans and deposits**
1.39
1.38
Profit before loan impairment charges as % p.a. of allocated capital
31.6
27.7
Profit before tax as % p.a. of allocated capital (avg.)
Cost/income ratio (%)
Full-time-equivalent staff
32.7
24.5
50.1
52.1
Fact Book Q2 2024 provides Financial highlights at customer type level for Personal Customers, Fact Book Q2 2024 is available at danskebank.com/ir.
* Comparative information has been restated as described in note G2(b)
** Net interest income as % p.a. of loans and deposits excludes loans and deposits included in the sale of the personal customer business in Norway.
4,020
4,288
94
4,020
4,009
100
4,288
94
4,064
Loans, excluding reverse transactions before impairments
655,043
647,194
Personal customers
During the first half of 2024, we continued to support our
customers in managing their finances in a market environment
characterised by rising equity prices and a stable interest rate level
with only one rate cut across our markets at the end of the period.
The general housing market has witnessed a consistently upward
trend following a decline over year-end after a frontloading of trades
in and around Copenhagen in late 2023 that was caused by the
anticipated effect of new property tax regulation that took effect at
the start of 2024.
Our Danske Bolig Fri home finance products continued to be in high
demand throughout the first half of 2024. Additionally, we saw
increased customer activity in the investment area that was driven
by favourable financial markets, resulting in increased market
shares for Danske Invest retail funds.
Profit before tax amounted to DKK 5,028 million in the first half of
2024, representing an increase of 39% from the year-earlier
period. Adjusted for the one-off provision in 2023 of DKK 693
million that was recognised under other income in relation to the
divestment of our personal customer business in Norway, the
increase was 17%. The result was fuelled primarily by an increase
in net fee income, particularly from everyday banking and
investment fees, higher net interest income from deposits and a
net loan impairment reversal. Moreover, we recorded an increase
in fees due to a non-recurring discount related to a new vendor
agreement, which had a retroactive effect.
Business initiatives
Throughout the first half of 2024, the economies in our core mar-
kets saw a steady development, characterised by stable inflation
and central bank rates. The only exception was a rate cut of 0.25%
in all markets at the end of the period. We remained committed to
supporting our customers, delivering expert advice tailored to their
individual financial situation.
In the investment area, customer activity stayed on an upward tra-
jectory, fuelled by the positive financial markets and expectations
of falling interest rates. Assets under management (AuM packaged
products) have increased DKK 31.6 billion since the end of 2023,
15
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
with a net sales inflow of DKK 8.3 billion. As a result, we observed
continued growth in the market share of Danske Invest retail funds
in Denmark. This was accompanied by a positive customer inflow
in Private Baking that was enabled in part by an expansion of front-
line staff in Private Banking. In addition, we saw that our funds per-
formed well relative to peers, further boosting AuM and investment
fees. All else equal, this flow from deposits to AuM will shift income
from net interest income to net fee income.
Following the implementation of new property tax regulation in
Denmark on 1 January 2024, the housing market, particularly in
and around Copenhagen, recovered from a year-end drop.
At the beginning of the year, we introduced new and more attrac-
tive interest rates on cooperative housing loans, which were
named ‘Best in test’ by the Danish Consumer Council. Following
the subdued activity in the housing market in Finland towards the
end of 2023, we saw a pick-up in activity. Meanwhile, in Sweden,
customer activity was high, with an increase in advisory meetings
and a strong increase in mortgage loan applications.
We have narrowed and lowered the interest rate spread on the last
15% of the financing of home purchases in Denmark, which cannot
be financed by a mortgage loan and is typically financed by a bank
loan. This lower and narrower interest rate spread represents a sig-
nificant step forward for homebuyers as it will facilitate easier ac-
cess to the housing market for many and ensure much more com-
petitive pricing in the future.
H1 2024 vs H1 2023
Profit before tax increased to DKK 5,028 million (H1 2023:
DKK 3,620 million), up 17% after adjustment for the provision in
2023 related to the divestment of our personal customer business
in Norway. The result was driven by higher net fee income, higher
net interest income from deposits and a net loan impairment rever-
sal.
Net interest income increased 1% to DKK 7,091 million (H1
2023: DKK 7,017 million). Excluding the personal customer busi-
ness in Norway, the increase was 4%. The development was
driven largely by our activities in Denmark and Finland, with the in-
crease being due primarily to higher income from deposits on the
back of higher market rates and repricing actions as well as prod-
uct development initiatives. Lending margins were under pressure
from the rise in market rates.
16
Danske Bank / Interim report first half 2024
Fuelled by our savings products, total deposit volumes for Personal
Customers increased 4% from the level at the end of 2023. The in-
crease was driven by our Global Private Banking unit, which saw an
increase of 12%, and Personal Customers Denmark and Finland,
which both saw increases of 2%. The depreciation of the Swedish
krona had a small negative effect.
Credit exposure
Net credit exposure from lending activities
amounted to DKK 827 billion at the end of the
second quarter of 2024, (H1 2023: DKK 844
billion) that was driven primarily by a decrease
in exposure to personal customers in Norway.
Total bank lending volumes decreased 1%. Personal Customers
Denmark saw a flat development, although with an underlying in-
crease in volumes from bank home finance products, for example
Danske Bolig Fri. In Personal Customers Sweden, the decrease
was larger and was impacted by the depreciation of the Swedish
krona, which had a negative effect of DKK 2 billion. The nominal
mortgage lending volume in Denmark decreased 2%. Total lending
across markets decreased 1% from the level at the end of 2023.
Net fee income increased to DKK 2,520 million (H1 2023:
DKK 2,086 million), driven primarily by investment fees and every-
day banking fees. Investment fees increased due to improved per-
formance of our funds and a pick-up in activity as a result of the
more favourable financial markets. Fee income from financing ac-
tivity decreased due to lower customer activity in the first half of
2024 than in the year-earlier period when customer activity was
very high due to high remortgaging activity that was triggered by
the increase in market rates. In addition, we saw a non-recurring
reduction in fee expenses of DKK 102 million.Net trading income
was down to DKK 71 million (H1 2023: DKK 107 million) as a re-
sult of a decrease in loan termination activity.
Operating expenses rose to DKK 4,866 million (H1 2023:
DKK 4,462 million). The rise was driven by digitisation invest-
ments made in accordance with our Forward ’28 strategy and
higher bonus payments.
Credit quality remained strong. The increases in interest rates and
the cost of living are mitigated by household savings and strong la-
bour markets. Average loan-to-value ratio levels remained low.
Loan impairments amounted to a net reversal of DKK 178 million in
the first half of 2024 (H1 2023: charges of DKK 478 million) when
impairments were impacted by the worsened macroeconomic sce-
narios. Impairments for the first half of 2024 were positively im-
pacted by the improved macroeconomic outlook, which also led to a
reduction in post-model adjustments.
Q2 2024 vs Q1 2024
Total income increased to DKK 4,923 million in the second
quarter from DKK 4,793 million in the first quarter of 2024.
Profit before tax decreased to DKK 2,299 million in the second
quarter of 2024 (Q1 2024: DKK 2,729 million) due to higher
operating expenses linked to Forward ’28 strategy investments
and increased net loan impairments following a reversal in the
first quarter.
• Net interest income saw a flat development from the preced-
ing quarter. Income from deposits decreased as a result of
our customers switching to savings products, combined with
a decrease in the funding value of deposits as rates de-
creased. The latter was partly countered by our interest rate
hedging framework.
• Net fee income rose 10% from the preceding quarter, driven
by an increase in customer investment activity, including an
improved performance of funds. In addition, we saw a non-re-
curring decline in fee expenses of DKK 102 million.
• Operating expenses increased 10% due to higher expenses
for digitisation investments made in accordance with our For-
ward ’28 strategy in addition to an increase in the tax on la-
bour costs.
• The second quarter of 2024 saw low loan impairment
charges of DKK 78 million (Q1 2024: a net reversal of DKK
256 million). Reversals in the first quarter of 2024 were
positively impacted by an improved macroeconomic outlook.
Profit before tax
DKK 2,299 million
for the second quarter of 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Business Customers
(DKK millions)
Net interest income
Net fee income
Net trading income
Other income
Total income
Operating expenses
of which resolution fund, bank tax etc.
Profit before loan impairment charges
Loan impairment charges
Profit before tax
Loans, excluding reverse transactions before impairments
Allowance account, loans
Deposits, excluding repo deposits
Covered bonds issued
Allocated capital (average)
Net interest income as % p.a. of loans and deposits
Profit before tax as % p.a. of allocated capital (avg.)
Cost/income ratio (%)
Full-time-equivalent staff
First half
First half
Index
Q2
Q1
Index
Q2
Index
Full year
2024
2023*
24/23
2024
2024
Q2/Q1
2023*
24/23
2023*
5,770
1,171
18
399
7,359
2,628
112
4,731
591
4,140
5,864
1,113
42
536
7,555
2,455
127
5,099
142
4,957
655,140
633,909
9,966
9,012
98
105
43
74
97
107
88
93
-
84
103
111
2,877
2,893
581
13
183
3,654
1,353
51
2,301
-118
2,419
591
5
216
3,705
1,275
62
2,430
709
1,721
655,140
647,543
9,966
10,015
251,626
261,293
96
251,626
252,031
373,981
352,061
42,013
39,457
1.28
1.29
19.7
25.1
35.7
32.5
106
106
373,981
370,959
42,156
41,871
1.29
1.28
21.8
23.2
23.0
16.4
37.0
34.4
99
98
260
85
99
106
82
95
-
141
101
100
100
101
101
2,936
544
32
250
3,763
1,209
65
2,554
-7
2,561
633,909
9,012
261,293
352,061
39,525
1.30
25.8
25.9
32.1
98
107
41
73
97
112
78
90
-
94
103
111
11,684
2,190
54
1,024
14,952
5,255
255
9,698
431
9,267
654,246
9,511
96
257,076
106
107
371,605
39,644
1.29
24.5
23.4
35.1
1,688
1,677
101
1,688
1,687
100
1,677
101
1,646
Profit before loan impairment charges as % p.a. of allocated capital
22.5
25.8
Fact Book Q2 2024 provides Financial highlights at customer type level for Business Customers. Fact Book Q2 2024 is available at danskebank.com/ir.
*Comparative information has been restated as described in note G2(b)
Business Customers
In the first half of 2024, we saw the economic landscape improve,
due primarily to a stabilisation of interest rates followed by interest
rate cuts by the central banks towards the end of the period.
Although the effect of the rate cuts on customer activity levels
remains to be seen, we continued to expand our customer base in
our focus segments as well as to make strategic pricing
adjustments, just as we supported our customers by providing the
best possible advice tailored to their needs.
In the first half of 2024, profit before tax amounted to DKK 4,140
million, a decrease of 16% from the same period last year. Net fee
income rose as a result of the continued migration of customers to
our subscription-based fee service model as well as repricing
actions. However, we saw higher loan impairment charges that
were driven by a few cases in our leasing organisation as well as by
allocation of post-model adjustments, which had an impact on our
result.
Business initiatives
Following the rate cuts in the second quarter of 2024, we adjusted
the pricing of variable-rate lending products, lowering rates in
Sweden with effect from May and in Denmark with effect from July.
During the first half of 2024, we saw a net inflow of mid-corporate
customers, and interactions with our existing customers remained
strong. In Finland, we saw good commercial momentum and
launched campaigns targeting housing companies, which resulted
in growth in new business volume and in the number of new
customers relative to the same period last year. The improved ac-
tivity as well as repricing actions generated an increase in net fee
income of 5%. The increase was driven primarily by everyday
banking fees.
Sustainability continues to be an important agenda for our
customers and for us. At the beginning of 2024, Danske Bank
entered into a partnership agreement with EIVEE, a software firm
that specialises in calculating businesses’ carbon footprint. In the
latter part of the first half of 2024, we entered into a new strategic
collaboration with the EIF to support the growth of small and
17
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
deliberately bring down public sector deposits.
Both the Swedish krona and the Norwegian
krone depreciated further, with a total effect of
DKK 1.7 billion since the end of 2023.
We saw an increase in bank lending volumes in
local currency across our Nordic markets ex-
cept for Denmark. The depreciation of the cur-
rencies in Norway and Sweden had an adverse
effect of DKK 3.6 billion, leading to an overall
flat development in bank lending. Mortgage vol-
umes increased 1% relative to the level at the
end of 2023, leading to an overall flat develop-
ment in total lending volumes after fair value
adjustments.
Overall credit quality remained strong. Increas-
ing interest rates and inflation caused a nega-
tive rating trend for the year in 2023. However,
during first half of 2024, the rating trend stabi-
lised.
Loan impairments charges amounted to DKK
591 million in the first half of 2024, which was
an increase compared to the level in the first
half of 2023. Loan impairment charges for the
first half of 2024 were driven by a few single
cases in our leasing organisation and an in-
crease in post-model adjustments.
Credit exposure
Net credit exposure from lending activities re-
mained stable and amounted to DKK 744 bil-
lion at the end of June 2024 (end-2023: DKK
745 billion).
medium-sized businesses across the Nordic countries. In the initial
phase, EIF loan guarantees are offered to our Finnish customers to
support them in their sustainability transition.
At Business Customers, we increased our share of green lending
by 1.7 percentage points relative to the level in the first half of
2023.
H1 2024 vs H1 2023
Profit before tax amounted to DKK 4,140 million (H1 2023:
DKK 4,957 million), driven mainly by net fee income growth, alt-
hough the increase was offset by increased operating expenses
due to further digitisation investments and higher loan impairment
charges that were driven by a few cases in our leasing organisation
as well as allocation of post-model adjustments.
Net interest income decreased 2% as a result of a decrease in net
interest income from lending due to lower bank lending volumes
and narrowing lending margins resulting from the increase in mar-
ket rates from the level in the first half of 2023. Deposit margins in-
creased, although the positive effect was offset by a deliberate out-
flow of deposit volumes relative to end-June 2023 that was driven
mainly by the public sector in Norway.
Net fee income increased to DKK 1,171 million (H1 2023:
DKK 1,113 million). The increase was driven primarily by everyday
banking fees due to repricing actions and the continued transfer of
customers to our subscription fee service model.
Other income decreased to DKK 399 million (H1 2023: DKK 536
million). The decrease was the result of lower sales income from
assets in our leasing company than in the first half of 2023 when
sales were extraordinarily high. In February 2024, we sold the
Norwegian company Tyssekraft A/S, which generated a positive
effect on other income of DKK 21 million.
Operating expenses amounted to DKK 2,628 million, an increase
of 7% from the level in the same period last year. The increase was
driven by digitisation investments made in accordance with our
Forward ’28 strategy combined with higher staff costs that were
impacted by inflation.
Deposit volumes across Business Customers decreased 2% rela-
tive to the end of 2023. We saw an increase in Finland driven by
public-sector customers. In Norway, we continued to
Q2 2024 vs Q1 2024
Profit before tax increased to DKK 2,419 million in the second
quarter of 2024 (Q1 2024: DKK 1,721 million) due to loan im-
pairment charges falling from the high level in the first quarter of
2024 that was driven by a few cases in our leasing organisation
and post-model adjustments.
• Net interest income decreased 1% to DKK 2,877 million (Q1
2024: DKK 2,893 million). Net interest income from depos-
its decreased slightly due to lower volumes.
• Net fee income was on par with net fee income in the first
quarter of 2024.
• Operating expenses increased 6%. The increase was driven
by digitisation investments made in accordance with our For-
ward ’28 strategy and increased tax on labour costs.
• Other income decreased, primarily as a result of the extraor-
dinary booking of the sale of the Norwegian company
Tyssekraft A/S, which generated a positive effect on other in-
come of DKK 21 million in the first quarter of 2024.
• The second quarter of 2024 saw a net loan impairment
reversal of DKK 118 million (Q1 2024: charges of DKK 709
million).
Profit before tax
DKK 2,419 million
for the second quarter of 2024
18
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Large Corporates & Institutions
(DKK millions)
First half
First half
Index
2024
2023*
24/23
Net interest income
Net fee income
Net trading income
Other income
Total income
Operating expenses
of which resolution fund, bank tax etc.
Profit before loan impairment charges
Loan impairment charges
Profit before tax
Loans, excluding reverse trans. before impairments
of which loans in General Banking
Allowance account, loans (incl. credit institutions)
Deposits, excluding repo deposits
of which deposits in General Banking
Covered bonds issued
Allocated capital (average)
Net interest income as % p.a. of loans and deposits
3,496
3,266
1,286
1
8,048
3,552
235
4,496
-513
5,009
3,414
2,935
1,668
12
8,028
3,543
246
4,485
-522
5,006
296,000
311,833
269,744
279,489
1,458
1,898
328,530
325,772
276,647
270,837
28,067
40,505
29,287
40,167
1.12
1.02
102
111
77
8
100
100
96
100
98
100
95
97
77
101
102
96
101
Profit before loan impairment charges as % p.a. of allocated capital
22.2
22.3
Profit before tax as % p.a. of allocated capital (avg.)
Cost/income ratio (%)
Full-time-equivalent staff
*Comparative information has been restated as described in note G2(b)
24.7
24.9
44.1
44.1
Q2
2024
1,766
1,745
472
1
3,984
1,794
109
2,190
-137
2,327
1,729
1,521
814
-
4,064
1,758
125
2,306
-376
2,682
296,000
286,309
269,744
261,716
1,458
1,638
328,530
328,007
276,647
276,306
28,067
40,422
28,043
40,589
1.14
1.09
21.7
22.7
23.0
26.4
45.0
43.3
Q1
Index
Q2
Index
Full year
2024
Q2/Q1
2023*
24/23
2023*
102
115
58
-
98
102
87
95
36
87
103
103
89
100
100
100
100
1,740
1,430
614
6
3,790
1,791
122
1,999
-130
2,129
311,833
279,489
1,898
325,772
270,837
29,287
40,449
1.06
19.8
21.1
47.3
101
122
77
17
105
100
89
110
105
109
95
97
77
101
102
96
100
6,935
6,312
2,515
15
15,777
7,397
492
8,380
-367
8,747
308,617
262,741
1,665
382,596
326,147
28,580
40,270
1.06
20.8
21.7
46.9
2,105
2,103
100
2,105
2,082
101
2,103
100
2,085
Large Corporates
& Institutions
In the first half of 2024, macroeconomic uncertainty persisted,
though sentiment and indicators were more positive than
expected. We continued to see a positive underlying momentum,
particularly in our fee business as higher fees from assets under
management and from everyday banking and capital markets
activities mitigated the decline in net trading income, thus
demonstrating the value of our diversified business model.
Furthermore, we continued to leverage our strategic commercial
strengths as reflected in growth in our corporate customer
portfolio outside Denmark, an increased market share of cash
management services and the maintaining of our leading position
in sustainable finance.
Profit before tax amounted to DKK 5,009 million, which was on par
with the same period last year. Net fee income increased, with the
effect being offset by lower net trading income.
Business initiatives
The first half of 2024 was characterised by increasing optimism in
the capital markets as the economic outlook in the Nordic coun-
tries was more positive than expected. As a result, we saw a solid
development in our capital markets business. Debt Capital Mar-
kets conditions were attractive, and we saw very strong activity in
the second quarter of the year and remained the leading Nordic
bank in both Nordic and European debt capital markets in terms of
volumes supported. Among several highlights, we supported Stat-
kraft in raising NOK 3.7 billion and KfW Development Bank in rais-
ing EUR 4 billion – both green bond issues.
Equity Capital Markets is in a transition phase, and while primary
equity issues are still taking place, the first half of the year was
characterised by relatively few IPOs in the Nordic countries.
However, we are pleased to have supported Public Property Invest
in their NOK 1.75 billion IPO. In M&A advisory, we saw rising deal
appetite as financing markets were normalising, and we assisted
the demerger of A.P. Møller Mærsk and separate listing of Svitzer
in Denmark.
19
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Total income
(DKK millions)
General Banking
Markets
of which xVA**
Asset Management
of which performance fees
Investment Banking
Total income
Assets under management
(DKK millions)
Institutional clients
Retail clients
Total assets under management***
First half
First half
Index
2024
2023*
24/23
4,249
2,317
46
1,130
50
352
4,154
2,715
-39
998
13
160
8,048
8,028
102
85
-
113
-
220
100
Q2
2024
2,139
998
25
603
39
244
Q1
Index
Q2
Index
Full year
2024
Q2/Q1
2023*
24/23
2023*
2,110
1,319
20
527
10
108
101
76
125
114
-
226
98
2,099
1,105
-1
510
2
77
102
90
-
118
-
-
8,378
4,628
21
2,334
302
437
3,790
105
15,777
3,984
4,064
484,181
382,518
355,771
312,695
839,952
695,213
127
114
121
484,181
470,681
355,771
345,355
839,952
816,036
103
103
103
382,518
312,695
695,213
127
114
121
442,473
328,584
771,056
*Comparative information has been restated as described in note G2(b)
**The xVA acronym covers Credit (CVA), Debit (DVA), Funding (FVA) and Collateral (ColVA) Valuation Adjustments to the fair value of the derivatives portfolio. From 2023, FVA is calculated to include both
funding cost and funding benefit, and therefore DVA is offset to avoid double counting between DVA and the funding benefit. Danske Bank has a centralised xVA desk responsible for quantifying, managing and
hedging xVA risks. The PnL result of the xVA desk is thus the combined effect of the net xVA position and funding and collateral costs of the trading book.
*** Includes assets under management from Group entities.
We are proud to have maintained our position as the leading
Nordic arranger for both sustainable bonds and sustainability-
linked loans in the Bloomberg league tables. Furthermore, in June,
we became the first arranger globally to reach 100 green bonds
arranged in 2024. We are pleased to continue to support a diverse
issuer base in reaching their financing and sustainability goals,
ranging from Arwidsro’s SEK 300 million green bond issue to the
sovereign Germany’s EUR 3 billion green bond issue. Moreover, we
remain one of the most active framework structuring advisers.
Though the volume of sustainability-linked loans was muted in the
first half of the year, we took part in important transactions for
customers such as Visma and Höegh Autoliners in Norway,
Bavarian Nordic in Denmark and Vaisala and Terrafame in Finland.
We continue to receive positive feedback from customers on our
stricter internal standards for sustainability-linked loans.
In Asset Management, we saw strong progress on our journey
towards simplifying our value chain, and we are pleased to report
an increasing market share in Danske Invest. Furthermore, we
remain a leader in external sustainability certifications among
asset managers in the Nordic countries.
H1 2024 vs H1 2023
Profit before tax remained stable at DKK 5,009 million (H1 2023:
DKK 5,006 million) as the effect of higher net fee income was
offset by lower net trading income.
Net interest income increased to DKK 3,496 million (H1 2023:
DKK 3,414 million) as a result of higher deposit margins and other
interest items, although the effect was partly offset by lower
lending and deposit volumes. Lending volumes in General Banking
increased 3% from the end of 2023 driven by corporate
customers in Sweden and Denmark. Deposit volumes decreased
14% from the end of 2023 due to seasonality around tax and
dividend payments and volatility in institutional deposits. We con-
tinued to execute on our strategic ambition to grow our corporate
customer portfolio outside Denmark, and we are thrilled to have
welcomed more new large corporate customers in the first half of
2024.
Net fee income increased to DKK 3,266 million (H1 2023:
DKK 2,935 million), as we saw widespread increasing fees from
assets under management, everyday banking and capital
markets advisory services.
20
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
We continued to increase our market share in cash management
by adding new house bank mandates in the first half of 2024. We
saw strong growth in assets under management, partly on the
back of rising asset prices, but also due to a strong development in
net sales in the institutional and private banking segment, which
contributed to positive net sales. Furthermore, we maintained a
strong investment performance relative to both peers and bench-
mark, particularly across our hedge fund franchise and multi-asset
solutions.
Net trading income decreased to DKK 1,286 million (H1 2023:
DKK 1,668 million) from the extraordinarily strong level in the first
half of 2023, with the decrease also due to relatively lower second-
ary customer activity.
Operating expenses increased slightly and amounted to DKK
3,552 million (H1 2023: DKK 3,543 million) as a result of higher
digitisation investments.
Overall, credit quality remained strong in the first half of 2024 and
has proven resilient in the face of external economic uncertainty.
Loan impairments in the first half amounted to a net reversal of
DKK 513 million (H1 2023: net reversal of DKK 522 million). Re-
versals continue to be driven by successful restructuring activities.
Credit exposure
Net credit exposure from lending activities amounted to DKK 653
billion at the end of the second quarter of 2024 (end-2023: DKK
633 billion). The increase was driven primarily by an increase in ex-
posure to the Consumer Goods segment, with the effect being par-
tially countered by a decrease in exposure to the Utilities and Infra-
structure segment.
21
Danske Bank / Interim report first half 2024
Q2 2024 vs Q1 2024
Profit before tax decreased to DKK 2,327 million (Q1 2024:
DKK 2,682 million) due primarily to lower net trading income
and loan impairment reversals, although the effect was partly
offset by higher net fee income.
• Net interest income increased to DKK 1,766 million (Q1
2024: DKK 1,729 million) as a result of an increase in lend-
ing volumes.
• Net fee income increased and stood at DKK 1,745 million
(Q1 2024: DKK 1,521 million), mainly as a result of higher
capital markets fees and fees from assets under manage-
ment.
• Net trading income decreased to DKK 472 million (Q1 2024:
DKK 814 million) due primarily to seasonality and lower cus-
tomer activity.
• Operating expenses increased to DKK 1,794 million (Q1
2024: DKK 1,758 million), with the increase caused primar-
ily by higher digitisation investments.
• Loan impairment charges amounted to a net reversal of
DKK 137 million (Q1 2024: reversal of DKK 376 million).
Reversals were driven by continued successful restructuring.
Profit before tax
DKK 2,327 million
for the second quarter of 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Danica Pension
(DKK millions)
Insurance service result
Net financial result
Other income
Net income before tax in Danica Pension
Insurance liabilities
Liabilities under investment contracts
Allocated capital (average)
Net income as % p.a. of allocated capital
Solvency coverage ratio
Full-time-equivalent staff
Asset under management
(DKK millions)
Insurance
First half
First half
Index
Q2
Q1
Index
Q2
Index
Full year
2024
2023
24/23
2024
2024
Q2/Q1
2023
24/23
2023
461
421
66
949
435
242
13
689
520,986
500,555
25,608
20,850
20,031
19,552
9.5
7.0
217
191
912
898
106
174
-
138
104
123
102
271
179
6
457
189
242
60
492
520,986
513,309
25,608
24,603
19,854
20,209
9.2
9.7
217
175
912
911
143
74
10
93
101
104
98
234
-47
5
192
500,555
20,850
19,586
3.9
191
898
116
-
120
238
104
123
101
779
615
78
1,472
493,544
23,113
19,738
7.5
170
912
466,778
418,185
112
466,778
460,549
101
418,185
112
440,319
Danica Pension
The global financial markets continued the strong momentum in
the first half of 2024 on the back of the prospect of lower interest
rates and the fact that across several sectors, companies continue
to record solid profit levels.
The investment return on our pension customers’ savings in the
first half of the year followed the upward trend from the last 12
months and was driven by a strong performance in the investment
portfolio, especially in equities. However, we continued to see
people suffering from physical or mental health problems, which
had a negative effect on the insurance result for the health and
accident business in the first half of 2024.
Net income at Danica Pension increased to DKK 949 million in the
first half of 2024, up 38% from the first half of 2023 due mainly to
an increase in the net financial result.
Business initiatives
Significant reduction in investment costs
A substantial upside has been gained from insourcing externally
managed investment mandates. This upside relates both to invest-
ment performance and cost level. Accordingly, the investment
setup has been restructured, and a number of investments are
now handled internally instead. This restructuring has resulted in a
significant decrease in investment costs, which will benefit our cus-
tomers as we expect to be able to deliver the same strong perfor-
mance with a lower barrier for creating high returns for our custom-
ers.
Increase in customer satisfaction
According to various internal and external surveys, customer satis-
faction at Danica Pension continues to increase. Customer satis-
faction is monitored on an ongoing basis by the Aalund analytics
firm, and Danica Pension is now ranked number one for personal
customers and for business customers with more than 50 employ-
ees.
The increase in customer satisfaction reflects a series of concrete
measures taken by Danica Pension over the past year to enhance
22
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
The net financial result increased to DKK 421
million (H1 2023: DKK 242 million) due to the
positive developments in the financial markets,
which lifted both the investment results on in-
surance products where Danica Pension has
the investment risk and the investment result
attributable to shareholders’ equity.
Assets under management increased DKK 49
billion following the positive developments in
the financial markets in 2023 and the first half
of 2024.
Premiums increased 8% from the same period
in 2023 following an increase in both single
and regular premiums.
accessibility for customers through both physical meetings at se-
lected businesses and most significantly through digital meetings
and via Danica Pension’s advisory centre. These measures have
resulted in shorter response times for customer enquiries and a
more effective approach to customer meetings.
Improved customer experience via digital development
The first half of 2024 brought digital improvements. A previously
manual process for resolving customer claims was replaced by a
digital process, enabling faster responses to enquiries about the el-
igibility of claims and our handling. The aim is for as many custom-
ers as possible to get an answer within 24 hours, which will drasti-
cally reduce waiting times and significantly increase the possibility
of providing fast and correct treatment.
Moreover, it has become easier for new customers to perform the
initial analysis of their pension needs, as the ‘PensionsStart’
onboarding tool has been integrated directly into Danica Pension's
popular Mobilpension app. This development is an example of Dan-
ica Pension's ’mobile first’ strategy, in which we meet our custom-
ers' expectations of being able easily to solve queries related to
their pension savings on their smartphones.
Significant increase in Danica Pension’s solvency ratio
Danica Pension’s solvency coverage ratio increased from 170% at
31 December 2023 to 217% at 30 June 2024, reflecting the very
strong financial foundation of the business. The higher solvency
coverage ratio resulted primarily from an adjustment of the method
of determining how the loss-absorbing capacity of deferred taxes is
to be recognised in the solvency capital requirement.
H1 2024 vs H1 2023
Net income at Danica Pension amounted to DKK 949 million (H1
2023: DKK 689 million). The increase was due mainly to an in-
crease in the net financial result. Other income in the first half of
2024 included a reversal of provisions of DKK 50 million related to
the sale of Danica Norway in 2022.
The insurance service result increased to DKK 461 million (H1
2023: DKK 435 million) even though Danica Pension continued to
see a rise in new health and accident claims, which reflects the
general trend in society. The increase was due to the rise in assets
under management improving the life insurance service result and
more than offsetting the effect of the increase in health and acci-
dent claims.
Q2 2024 vs Q1 2024
Net income at Danica Pension decreased to DKK 457 million
(Q1 2024: DKK 492 million). The net financial result decreased
mainly because of developments in the financial markets being
less positive than in the first quarter of 2024.
• The insurance service result increased by DKK 82 million,
which was due mainly to an improved result in the health and
accident business from the level in the first quarter of 2024.
• The net financial result decreased in the second quarter of
2024 and amounted to DKK 179 million (Q1 2024:
DKK 242 million) due to a less positive development in the in-
vestment results on insurance products where Danica Pen-
sion has the investment risk and a decrease in the invest-
ment result attributable to shareholders’ equity.
• Total premiums increased 4% following an increase in single
premiums. The first quarter included yearly regular premiums
from group life insurance products.
• Assets under management increased DKK 6 billion due pri-
marily to the positive developments in the financial markets
in the second quarter of 2024.
Net income in Danica Pension
DKK 457 million
for the second quarter of 2024
23
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Northern Ireland
(DKK millions)
Net interest income
Net fee income
Net trading income
Other income
Total income
Operating expenses
Profit before loan impairment charges
Loan impairment charges
Profit before tax
Loans, excluding reverse transactions before impairments
Allowance account, loans
Deposits, excluding repo deposits
Allocated capital (average)*
Net interest income as % p.a. of loans and deposits
Profit before tax as % p.a. of allocated capital (avg.)
Cost/income ratio (%)
Full-time-equivalent staff
*Allocated capital equals the legal entity’s capital.
Northern Ireland
Our focus in Northern Ireland is to remain a stable, strong and
risk-astute bank, consolidating our market-leading position
alongside pursuing select low-cost growth opportunities in the rest
of the UK. The strong underlying financial performance reflects
business growth in an environment of higher interest rates.
Profit before loan impairments was 16% higher than in the first
half of 2023, while profit before tax of DKK 938 million reflected a
broadly unchanged level year-on-year.
Business initiatives
The strategy in Northern Ireland aligns with the Group’s key focus
areas, including digitisation, customer journeys, sustainability, and
simplicity and efficiency, all underpinned by ensuring high levels of
employee engagement.
We are a leading bank in Northern Ireland, serving personal,
business and corporate customers, and the Northern Ireland
market remains our regional focus in the UK, while we also seek
growth in targeted sectors across the rest of the UK.
Acquisition of new personal and small business customers has
increased approximately 80% and 70% respectively, year-on-year,
supported by successful customer bank switching campaigns.
Residential mortgage volumes continued to grow in the first half of
2024 and are much improved year-on-year, supporting continued
growth in lending (up 7% in local currency). We expect demand to
remain resilient moving forward.
The Bank of England (BoE) has introduced a levy on all UK banks,
effective from 1 March 2024. This has resulted in additional
operating expenses of DKK 5 million in the first half-year, albeit
profit neutral in the current year given an offsetting income benefit
from broader BoE funding model changes.
We continue to support Northern Ireland society through our
wide-ranging community initiatives. This includes our financial
education programme, Money Smart, where colleagues teach
children and young people about money and budgeting through
24
Danske Bank / Interim report first half 2024
First half
First half
Index
2023
24/23
Q1
Index
Q2
Index
Full year
2024
Q2/Q1
2023
24/23
2023
2024
1,443
155
79
5
1,236
168
53
10
1,683
1,466
743
941
3
938
657
809
-131
941
63,100
57,064
795
742
103,458
98,700
6,224
6,105
1.74
30.1
44.1
1.59
30.8
44.8
117
92
149
50
115
113
116
-
100
111
107
105
102
Q2
2024
734
80
37
2
853
394
459
-21
481
710
75
42
3
830
349
481
25
457
63,100
59,850
795
805
103,458
97,559
6,289
6,159
1.74
30.6
46.2
1.75
29.7
42.0
103
107
88
67
103
113
95
-
105
105
99
106
102
637
85
-61
5
665
338
327
-108
435
57,064
742
98,700
6,376
1.61
27.3
50.8
115
2,549
94
-
40
128
117
140
19
111
111
107
105
99
319
288
15
3,171
1,368
1,804
-113
1,917
58,600
755
97,396
6,750
1.61
28.4
43.1
1,240
1,285
96
1,240
1,253
99
1,285
96
1,267
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
face-to-face sessions at school. This was rolled out to 7,000 pupils
across Northern Ireland in the first half of the year.
H1 2024 vs H1 2023
Profit before tax remained broadly unchanged at DKK 938 million
(H1 2023: DKK 941 million), with a strong net interest income
performance.
Net interest income increased to DKK 1,443 million (H1 2023:
DKK 1,236 million), driven by growth in lending and deposits and
actions taken in response to higher UK interest rates.
Net fee income decreased to DKK 155 million (H1 2023: DKK
168 million), due primarily to the sale of our offsite ATM network in
the first half-year of 2023, with underlying activity and related fees
remaining robust.
Net trading income includes mark-to-market movements on the
bank’s hedging portfolio, reflecting a combination of changing mar-
ket expectations for UK interest rates and the reducing remaining
life of the impacted hedging portfolio. With market expectations
continuing to fluctuate, trading income remained volatile.
Operating expenses stood at DKK 743 million (H1 2023:
DKK 657 million). The increase includes regulatory costs, including
the new BoE levy, higher fraud-related costs and inflationary pres-
sure on locally incurred costs. The bank has a continued cost and
efficiency focus across local and Group cost drivers. The number of
full-time-equivalent staff was lower year-on-year.
Credit quality remained strong, with a small net loan impairment
charge of DKK 3 million overall at the end of the first half of 2024,
against a net reversal in the first half of 2023.
25
Danske Bank / Interim report first half 2024
Q2 2024 vs Q1 2024
The second quarter of 2024 saw a profit before tax of DKK 481
million (Q1 2024: DKK 457 million).
• Net interest income increased to DKK 734 million (Q1 2024:
DKK 710 million), reflecting balance sheet growth and higher
UK interest rates.
• Net fee income increased to DKK 80 million (Q1 2024:
DKK 75 million), reflecting both strong underlying activity
levels and seasonal trends.
• Net trading income amounted to DKK 37 million (Q1 2024:
DKK 42 million), reflecting a combination of bonds sales to
support interest rate risk management and mark-to-market
movements on the hedging portfolio.
• Operating expenses increased to DKK 394 million (Q1
2024: DKK 349 million), including an annual salary uplift in
the second quarter, higher regulatory costs and increased
Group charges. There is a continued cost and efficiency
focus, although inflationary pressure remains.
• Loan impairment charges saw a net reversal in the second
quarter, and we continue to have a strong focus on credit
quality.
Profit before tax
DKK 481 million
for the second quarter of 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Group Functions
(DKK millions)
Net interest income
Net fee income
Net trading income
Other income
Total income
Operating expenses
of which resolution fund, bank tax etc.
Profit before loan impairment charges
Loan impairment charges
Profit before tax
Full-time-equivalent staff
Profit before tax
(DKK millions)
Group Treasury
Own shares and issues
Additional tier 1 capital
Group support functions
Non-core
Total Group Functions
*Comparative information has been restated as described in note G2(b)
First half
First half
Index
Q2
Q1
Index
Q2
2024
2023*
24/23
2024*
2024
Q2/Q1*
2023
Index
4/23
Full year
2023
487
-38
-77
-115
257
1,030
36
-773
-2
-771
-995
-31
369
-54
-711
1,526
38
-2,237
5
-2,242
10,115
11,089
675
-156
-1
-563
1
-1
-1,355
-1,654
65
-771
-25
-2,242
-
123
-
213
-
67
95
35
-
34
91
-
-
100
82
-
34
222
-28
49
-57
185
395
18
-210
-2
-208
265
-10
-126
-58
72
635
18
-563
-
-564
84
280
-
98
257
62
100
37
-
37
-411
-24
268
-28
-195
803
12
-998
4
-1,002
10,115
10,152
100
11,089
411
-25
-1
-585
-7
-208
264
-131
-
-769
72
-564
156
19
-
76
-
37
22
-97
-1
-930
5
-1,002
-
117
18
204
-
49
150
21
-
21
91
-
26
100
63
-
21
-362
-92
-444
15
-884
1,998
72
-2,882
-1
-2,881
10,046
-752
23
-
-2,065
-87
-2,881
Group Functions
Group Functions includes Group Treasury, Technology & Services
and other Group functions. In addition, Group Functions includes
eliminations. As of 1 January 2024, Non-core is no longer reported
as a separate business unit. Instead, the remaining Non-core
activities are included under Group Functions.
In the first half of 2024, the loss before tax was reduced and
amounted to DKK 771 million, against a loss of DKK 2,242 million
in the first half of 2023. The improvement was driven by an
increase in net interest income to DKK 487 million (H1 2023: net
expense of DKK 995 million) that related primarily to higher
interest income at Group Treasury’s Internal Bank, including
interest on shareholders’ equity.
Business initiatives
Group Functions supports the business units by allocating capital,
interest-bearing capital costs and long-term funding costs through
Group Treasury’s Internal Bank setup. Group Treasury also man-
ages, among other things, the Group’s liquidity bond portfolio and
the investment of shareholders’ equity for Realkredit Danmark as
well as the interest rate risk on the non-trading book. Operating ex-
penses related to the sub-units within Group Functions are allo-
cated to the business units. This is done to ensure cost efficiency
throughout the Group.
Furthermore, Group Functions comprises the Non-core activities.
Non-core mainly comprises legacy credit exposures as well as non-
strategic private equity investments and focuses on actively man-
aging down legacy assets and portfolios by way of divestment, refi-
nancing with other credit institutions or amortisation.
The winding up of the remaining Non-core activities is proceeding
according to plan.
26
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
H1 2024 vs H1 2023
Group Functions posted a loss before tax of DKK 771 million (H1
2023: loss of DKK 2,242 million).
Net interest income increased to DKK 487 million (H1 2023: net
expense of DKK 995 million). The increase was due primarily to
higher interest on shareholders’ equity and higher income from In-
ternal Bank allocation to business units, with the latter increase re-
flecting, among other things, the allocation from May 2023 of in-
terest rate risk management costs related primarily to the hedging
of the interest rate risk on deposits to the business units. Alloca-
tion is made in the form of an internal deduction from deposit mar-
gins.
Net trading income decreased to a negative DKK 77 million (H1
2023: an income of DKK 369 million) due primarily to negative un-
realised market value adjustments in Group Treasury of cross-cur-
rency swaps expected to be held to maturity. The first half of 2023
was affected by a one-off gain of DKK 327 million related to the
sale of shares taken over in connection with a loan.
Operating expenses decreased, due mainly to increased allocation
to the business units, and amounted to DKK 1,030 million (H1
2023: DKK 1,526 million).
Loan impairment charges amounted to a net reversal of DKK 2 mil-
lion (H1 2023: DKK 5 million).
The number of full-time-equivalent staff decreased to 10,115 (end-
H1 2023: 11,089), mainly because of the sale of Danske IT in In-
dia to Infosys during the third quarter of 2023.
27
Danske Bank / Interim report first half 2024
Q2 2024 vs Q1 2024
Group Functions posted a loss before tax of DKK 208 million
(Q1 2024: loss of DKK 564 million).
• Net interest income decreased to DKK 222 million (Q1
2024: DKK 265 million). The decrease was related to Non-
core activities. Group Treasury interest rate risk manage-
ment income increased, which was only partly offset by a re-
duction in income from Internal Bank allocations.
• Net trading income increased to a profit of DKK 49 million
(Q1 2024: loss of DKK 126 million). The increase was
among other things due to unrealised positive market value
adjustments in Group Treasury of cross-currency swaps.
• Operating expenses decreased due to increased allocation to
the business units and amounted to DKK 395 million (Q1
2024: DKK 635 million).
• Loan impairment charges amounted to a net reversal of
DKK 2 million (Q1 2024: DKK 0 million).
Profit before tax
DKK -208 million
for the second quarter of 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Definition of alternative
performance measures
Danske Bank’s management believes that the alternative performance measures (APMs) used in the Management’s
report provide valuable information to readers of the financial statements. The APMs provide a more consistent basis
for comparing the results of financial periods and for assessing the performance of the Group and each individual
business unit. They are also an important aspect of the way in which Danske Bank’s management defines operating
targets and monitors performance.
Throughout the Management’s report, performance is assessed on the basis of the Financial highlights and segment
reporting, which represent the financial information regularly provided to management. There is no difference between
the Financial highlights and the IFRS income statement.
Definitions of additional ratios presented on page 3 and in other sections of the Management’s report:
28
Danske Bank / Interim report first half 2024
Ratios and key figures
Dividend per share (DKK)
Return on average shareholders’ equity
(% p.a.)
Net interest income as % p.a. of loans and
deposits
Definition
Total dividend per share, consisting of the interim dividend per share (if any) paid out dur-
ing the year, and the dividend per share proposed in the Annual Report and paid to share-
holders in the subsequent year.
Net profit as disclosed in the Financial highlights divided by the average of the quarterly av-
erage shareholders’ equity (beginning and end of each quarter) within the year. The denom-
inator represents equity equal to a decrease in the average of the quarterly average equity
of DKK 1,740 million (2023: a reduction of 540 million) compared to a simple average of
total equity (beginning and end of the period).
Net interest income in the Financial highlights divided by the daily average of the sum of
loans and deposits. If the ratio was calculated applying the sum of loans and deposits at
the end of the period, the ratio for 2024 would be 1.34% (2023: 1.26%) due to the daily
average of the sum of loans and deposits being DKK 10.9 billion lower (2023: DKK 45.1
billion lower) than if calculating the ratio by applying the end-of-period sum of loans and de-
posits. The purpose of the ratio is to show whether the growth in net interest income fol-
lows the growth in loans and deposits. The daily average is a more faithful representation
of the growth in loans and deposits.
Cost/income ratio (C/I), (%)
Operating expenses and impairment charges on goodwill divided by total income.
Book value per share
Shareholders’ equity divided by the number of shares outstanding at the end of the period.
Loan impairment charges as % of net credit
exposure
Allowance account as % of net credit
exposure
This ratio is calculated on the basis of loan impairment charges and loans and guarantees.
The numerator is the loan impairment charges of DKK -99 million (2023: DKK 262 mil-
lion) annualised. The denominator is the sum of Loans at amortised cost of DKK 918.6 bil-
lion (2023: DKK 1,082.8 billion), Loans at fair value of DKK 753.3 billion (2023:
DKK 724.1 billion), Loans held for sale of DKK 110.4 billion (2023: DKK 0 billion) and
guarantees of DKK 75.9 billion (2023: DKK 81.4 billion) at the beginning of the year, as
disclosed in the column “Lending activities” in the “Breakdown of credit exposure” table in
the notes to the financial statements. The ratio is calculated for each business unit.
This ratio is calculated on the basis of the allowance account and loans and guarantees.
The numerator is the allowance account of DKK 20.5 billion (2023: DKK 20.1 billion) at
the end of the period, as disclosed in the “Allowance account broken down by segment”
table in the notes to the financial statements. The denominator is the sum of Loans at
amortised cost of DKK 910.2 billion (2023: DKK 918.6 billion), Loans at fair value of
DKK 744.0 billion (2023: DKK 753.3 billion), Loans held for sale of DKK 91.0 billion
(2023: DKK 110.4 billion) and guarantees of DKK 80.0 billion (2023: DKK 75.9 billion) at
the end of the period, as disclosed in the column “Lending activities” in the “Breakdown of
credit exposure” table in the notes to the financial statements. The ratio is calculated for
each business unit.
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Financial statements - Danske Bank Group
Notes to the financial statements
Financial statements – Danske Bank A/S
Income statement – Danske Bank Group
Statement of comprehensive income – Danske Bank Group
Balance sheet – Danske Bank Group
Statement of capital – Danske Bank Group
Cash flow statement – Danske Bank Group
30
30
31
32
34
Financial statements – Danske Bank A/S
Income statement – Danske Bank A/S
Statement of comprehensive income – Danske Bank A/S
Balance sheet – Danske Bank A/S
Statement of capital – Danske Bank A/S
Notes – Danske Bank A/S
66
67
67
68
69
70
G1. Material accounting policies and estimates
G2. Changes in accounting policies, Financial Highlights and
segment reporting
G3. Business segments
G4. Income
G5. Loan impairment charges and reconciliation of total
allowance account
G6. Insurance assets and Insurance liabilities
G7. Issued bonds, subordinated debt and additional tier 1
capital
G8. Assets held for sale and Liabilities in disposal groups
held for sale
G9. Other assets and Other liabilities
G10. Foreign currency translation reserve
G11. Guarantees, commitments and contingent liabilities
G12. Assets provided or received as collateral
G13. Fair value information for financial instruments
G14. Risk management notes
35
36
38
40
40
41
41
42
43
43
44
45
47
50
29
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Income statement – Danske Bank Group
Statement of comprehensive income – Danske Bank Group
Note
(DKK millions)
2024
2023*
2024
2023*
2023*
Note
(DKK millions)
Interest income calculated using the effective interest method
33,417
27,611
16,575
14,582
60,842
Net profit
First half
First half
Q2
Q2
Full year
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurement of defined benefit pension plans
Tax*
Items that will not be reclassified to profit or loss
Items that are or may be reclassified subsequently to profit or loss
Translation of units outside Denmark
G10
Hedging of units outside Denmark
Reclassification to the income statement on disposal of units out-
side Denmark**
Unrealised value adjustments of bonds at fair value (OCI)
Realised value adjustments of bonds at fair value (OCI)
Tax*
Items that are or may be reclassified subsequently to profit or loss
Total other comprehensive income
Total comprehensive income
First half
First half
2024
2023
11,468
10,178
42
3
39
-813
315
-
-227
40
-185
-500
-461
11,008
-115
-16
-99
-4,533
2,260
-
-60
-14
-539
-1,808
-1,906
8,271
Q2
2024
5,839
10
-2
12
967
-606
-
-50
27
52
287
299
6,137
Q2
Full year
2023
5,011
2023
21,262
-131
-36
-96
-2,159
1,097
-
-184
-15
-295
-966
-1,062
3,949
-1,220
-301
-919
-1,404
589
806
1,114
106
306
905
-14
21,248
* A positive amount is a tax expense, and a negative amount is a tax income
** Reclassification to the income statement on disposal of units outside Denmark in full year 2023 includes a reduction in the structural FX hedge.
Other interest income
Interest expense
11,189
6,335
4,831
26,319
17,411
12,261
Net interest income from banking activities
18,287
16,535
G4
G4
Fee income
Fee expenses
Net fee income
Net trading income or loss
Insurance revenue
Insurance service expenses
9,251
2,177
7,074
1,377
3,003
2,516
8,186
1,917
6,270
2,238
2,763
2,298
Net return on investments backing insurance liabilities
24,211
13,026
9,145
4,735
1,037
3,698
608
1,496
1,211
4,584
2,930
8,997
15,232
41,102
8,514
34,972
4,120
1,103
17,108
4,203
3,017
12,904
906
1,494
1,241
5,155
2,613
5,735
5,094
35,228
Net finance income or expense from insurance
-23,789
-12,784
-4,405
-5,203
-34,613
G4
G4
Other insurance related income
Net insurance result
Gain or loss on sale of disposal groups
Other income
Total other income
Total income
Operating expenses
Profit before loan impairment charges
G5
Loan impairment charges
Profit before tax
Tax
Net profit
Earnings per share (DKK)
Diluted earnings per share (DKK)
Dividend per share (DKK)
* Comparative information has been restated, as described in note G2(a).
30
Danske Bank / Interim report first half 2024
40
949
16
308
324
-18
689
-693
548
-145
-7
457
-4
152
147
-13
192
-693
256
-438
216
1,472
-555
1,015
460
28,011
25,586
14,055
12,192
52,422
12,818
12,642
15,193
12,944
-99
-28
15,292
12,972
3,824
2,794
11,468
10,178
6,481
7,574
-200
7,774
1,936
5,839
6,350
5,842
-175
6,018
1,007
5,011
25,478
26,944
262
26,682
5,420
21,262
13.4
11.9
6.8
5.8
24.8
13.4
11.8
6.8
5.8
24.7
-
-
-
-
14.5
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Balance sheet – Danske Bank Group
Note
(DKK millions)
Assets
Cash in hand and demand deposits with central banks
Due from credit institutions and central banks
Trading portfolio assets
Investment securities
Loans at amortised cost
Loans at fair value
Assets under pooled schemes and investment contracts
G6
G8
Insurance assets
Assets held for sale
Intangible assets
Tax assets
G9
Other assets
Total assets
31
Danske Bank / Interim report first half 2024
30 June
31 December
30 June
2024
2023
2023
Note
(DKK millions)
Liabilities
208,002
259,156
231,516
Due to credit institutions and central banks
154,500
114,813
105,155
Trading portfolio liabilities
497,400
548,189
559,305
Deposits
273,642
283,914
288,277
910,167
918,628
910,422
980,308
928,239
903,801
74,462
70,900
67,820
522,846
496,031
502,546
91,197
110,704
120,665
6,083
11,504
33,647
6,064
3,264
6,093
3,904
31,079
32,104
3,763,759
3,770,981
3,731,608
G7
G7
G6
G8
G9
G7
G7
Issued bonds at fair value
Issued bonds at amortised cost
Deposits under pooled schemes and investment contracts
Insurance liabilities
Liabilities in disposal groups held for sale
Tax liabilities
Other liabilities
Non-preferred senior bonds
Subordinated debt
Total liabilities
Equity
Share capital
G10
Foreign currency translation reserve
Reserve for bonds at fair value (OCI)
Retained earnings
Proposed dividends
Total equity
Total liabilities and equity
30 June 31 December
30 June
2024
2023
2023
202,589
154,608
186,661
372,509
454,487
480,024
1,179,837
1,222,203
1,184,882
733,160
748,780
722,204
259,837
214,234
205,314
75,439
71,253
68,428
506,832
482,630
486,606
55,383
1,707
67,056
94,300
37,052
56,476
1,557
57,046
93,194
38,774
32,949
2,074
62,369
93,113
38,338
3,585,704
3,595,242
3,562,960
8,622
-3,136
-494
8,622
-2,639
-306
8,622
-4,903
-1,600
173,063
163,596
166,529
-
6,466
-
178,055
175,739
168,648
3,763,759
3,770,981
3,731,608
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Statement of capital – Danske Bank Group
Changes in equity
(DKK millions)
Total equity as at 1 January 2024
Net profit
Other comprehensive income
Remeasurement of defined benefit pension plans
Translation of units outside Denmark
Hedging of units outside Denmark
Unrealised value adjustments
Realised value adjustments
Tax
Total other comprehensive income
Total comprehensive income
Transactions with owners
Dividends paid
Acquisition of own shares
Sale of own shares
Restated total equity as at 1 January 2023
8,622
-2,630
-1,526
155,812
Foreign
currency
translation
reserve
Reserve for
bonds at
fair value
(OCI)
Share
capital
Retained
earnings
Proposed
dividends
Total
(DKK millions)
8,622
-2,639
-306
163,596
6,466
175,739
Total equity as at 1 January 2023
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-813
315
-
-
-
-497
-497
-
-
-
-
-
-
-
-227
40
-
-188
-188
-
-
-
11,468
42
-
-
-
-
182
225
11,693
-
-
-
-
-
-
-
-
-
11,468
Effect of changes in accounting policy
42
-813
315
-227
40
182
-461
Net profit
Other comprehensive income
Remeasurement of defined benefit pension plans
Translation of units outside Denmark
Hedging of units outside Denmark
Unrealised value adjustments
Realised value adjustments
11,008
Tax
Total other comprehensive income
39
-6,466
-6,427
Total comprehensive income
-16,802
14,537
-
-
-
-16,802
Transactions with owners
14,537
Acquisition of own shares
178,055
Sale of own shares
Foreign
currency
translation
reserve
Reserve for
bonds at
fair value
(OCI)
Share
capital
Retained
earnings
Proposed
dividends
8,622
-2,630
-1,526
155,852
-
-
-
-40
-
-
-
-
-
-
-
-
-
-
-
-
-
-4,533
2,260
-
-
-
-2,273
-2,273
-
-
-
-
-60
-14
-
-74
-74
10,178
-115
-
-
-
-
555
441
10,618
-
-
-
-
-13,390
13,489
Total
160,318
-40
160,278
10,178
-115
-4,533
2,260
-60
-14
555
-1,906
8,271
-13,390
13,489
168,648
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total equity as at 30 June 2024
8,622
-3,136
-494
173,063
Total equity as at 30 June 2023
8,622
-4,903
-1,600
166,529
Share buy-back programme
On 5 February 2024, the Group initiated a share buy-back programme of DKK 5.5 billion, which may run until 4 February 2025. At the end
of June 2024, the Group had acquired 10,730,990 shares for a total amount of DKK 2.164 million under the share buy-back programme
based on trade date.
Dividend
On the basis of our strong financial performance in the first half-year of 2024 and our strong capital position at the end of the period, the
Board of Directors has approved an interim dividend of DKK 7.5 per share, corresponding to 56% of net profit for the period.
32
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Statement of capital – Danske Bank Group – continued
Number of shares
(DKK millions)
Share capital (DKK)
Number of shares
Number of shares outstanding
Average number of shares outstanding for the period
Total capital and total capital ratio
30 June 2024 31 December 2023
(DKK millions)
8,621,846,210
8,621,846,210
Total equity
862,184,621
862,184,621
Revaluation of domicile property at fair value
848,792,126
859,773,706
Tax effect of revaluation of domicile property at fair value
855,248,256
858,899,954
Total equity calculated in accordance with the rules of the Danish FSA
Average number of shares outstanding, including dilutive shares, for the period
857,037,515
860,043,309
Common equity tier 1 capital instruments
Adjustment to eligible capital instruments
IFRS 9 reversal due to transitional rules
Prudent valuation
Prudential filters
Expected/proposed dividends
Intangible assets of banking operations
Minimum Loss Coverage for Non-Performing Exposures
Deferred tax on intangible assets
Deferred tax assets that rely on future profitability, excluding temporary differences
Defined benefit pension plan assets
Statutory deduction for insurance subsidiaries
Common equity tier 1 capital
Additional tier 1 capital instruments
Tier 1 capital
Tier 2 capital instruments
Total capital
Total risk exposure amount
Common equity tier 1 capital ratio (%)
Tier 1 capital ratio (%)
Total capital ratio (%)
30 June 2024 31 December 2023
178,055
175,739
210
-27
178,238
178,238
-3,813
745
-829
-
-6,881
-5,431
-2,608
250
-554
-897
-1,585
156,633
10,225
166,858
23,671
190,529
846,180
18.5%
19.7%
22.5%
211
-27
175,923
175,923
-914
1,634
-890
-
-6,466
-5,690
-916
316
-733
-845
-6,111
155,308
14,805
170,113
20,790
190,902
827,882
18.8%
20.5%
23.1%
33
Danske Bank / Interim report first half 2024
Total capital and the total risk exposure amount are calculated in accordance with the rules applicable under the Capital Requirements
Regulation (CRR), taking transitional rules into account as stipulated by the Danish Financial Supervisory Authority. In terms of the transi-
tional arrangements for the impact of IFRS 9 on regulatory capital, the Group applies the so-called dynamic approach in accordance with
the CRR.
The Internal Capital Adequacy Assessment Report provides more details about the Group’s solvency need. The report is available at dans-
kebank.com/investorrelations/reports.
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
First half
First half
Full year
2024
2023
2023
(DKK millions)
15,292
-11,780
1,822
5,334
42,885
-31,188
-101
10,272
-24,089
-43,104
30,911
-3,862
7,156
-5,786
26
-330
-227
1
-530
Cash flow from financing activities
12,972
26,682
Issue of subordinated debt
-1,481
3,643
-4,565
8,426
Redemption of subordinated debt
Issue of non-preferred senior bonds
15,134
30,543
Redemption of non-preferred senior bonds
46,432
5,196
99
-854
80,940
-44,462
8,461
-1,837
10,778
-9,225
53
3,509
57,952
-9,490
73,513
Dividends paid
Share buy back programme
Principal portion of lessee lease payments
Cash flow from financing activities
Cash and cash equivalents as at 1 January
Foreign currency translation
Change in cash and cash equivalents
Cash and cash equivalents, end of period
1,903
Cash and cash equivalents, end of period
-11,806
-18,036
Cash in hand
97,303
141,500
Demand deposits with central banks
Amounts due from credit institutions and central banks within three months
-
45
Total
-299
-451
5
-745
-540
-841
7
-1,329
First half
First half
Full year
2024
2023
2023
8,378
-10,748
21,604
-21,780
-6,427
-2,164
-303
-11,440
-
-
16,101
-13,773
-
-
-296
2,032
-
-
22,425
-23,696
-6,011
-
-605
-7,887
365,609
232,531
232,531
1,192
791
794
-17,756
98,590
132,284
349,045
331,912
365,609
6,224
6,865
6,419
201,777
224,651
252,737
141,044
100,396
106,453
349,045
331,912
365,609
Cash flow statement – Danske Bank Group
(DKK millions)
Cash flow from operations
Profit before tax
Tax paid
Adjustment for non-cash operating items
Cash flow from operations before changes in operating capital
Changes in operating capital
Amounts due to/from credit institutions and central banks
Trading portfolio
Acquisition/sale of own shares
Investment securities
Loans at amortised cost and fair value
Deposits
Issued bonds at amortised cost and fair value
Insurance assets/liabilities
Other assets/liabilities
Cash flow from operations
Cash flow from investing activities
Sale of businesses
Acquisition of intangible assets
Acquisition of tangible assets
Sale of tangible assets
Cash flow from investing activities
34
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Notes – Danske Bank Group
G1. Material accounting policies and estimates
(a) General
The report has been prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU, and additional Danish disclo-
sure requirements for listed financial companies. The report is condensed and should be read in conjunction with the Group’s Annual Re-
port 2023.
The expected credit losses are calculated for all individual facilities as a function of probability of default (PD), exposure at default (EAD)
and loss given default (LGD) and incorporate forward-looking information. The estimation of expected credit losses involves forecasting
future economic conditions over a number of years. Such forecasts are subject to management judgement and those judgements may be
sources of measurement uncertainty that have significant risk of resulting in a material adjustment to a carrying amount in future periods.
The incorporation of forward-looking elements reflects the expectations of the Group’s senior management and involves the creation of
scenarios (base case, upside and downside), including an assessment of the probability for each scenario. The purpose of using multiple
scenarios is to model the non-linear impact of assumptions about macroeconomic factors on the expected credit losses. Note G14 pro-
vides information on the scenarios as at 30 June 2024.
With effect from 1 January 2024, the Group has changed the presentation in the IFRS Income statement in relation to Markets, Operating
leases and margins on customer transactions in foreign currencies. At the same time, the Group’s Financial Highlights have been changed
to align them with the IFRS financial statements. The changes have been applied retrospectively, resulting in reclassifications between
lines in the IFRS Income statement. The reclassifications have no impact on the net profit, Balance sheet or Equity for 2023. In addition,
amendments to IFRS 7, IFRS 16, IAS 1 and IAS 7 became effective on 1 January 2024, and have no impact on the financial statements.
Further information on the changes to accounting policies and presentation in 2024 can be found in note G2(a). Except for these changes,
the Group has not changed its material accounting policies from those applied in Annual Report 2023. Annual Report 2023 provides a full
description of the material accounting policies.
The base case scenario enters with a probability of 60% (31 December 2023: 60%), the upside scenario with a probability of 20% (31
December 2023: 20%) and the downside scenario with a probability of 20% (31 December 2023: 20%). On the basis of these assess-
ments, the allowance account as at 30 June 2024 amounted to DKK 20.5 billion (31 December 2023: DKK 20.1 billion). If the base case
scenario was assigned a probability of 100%, the allowance account would decrease DKK 2.0 billion (31 December 2023: DKK 2.0 bil-
lion). Compared to the base case scenario, the allowance account would increase DKK 10.1 billion (31 December 2023: DKK 10.2 bil-
lion), if the downside scenario was assigned a probability of 100%. The increase reflects primarily the transfer of exposures from stage 1
to stage 2 and increased expected credit losses within stage 2. If instead the upside scenario was assigned a probability of 100%, the
allowance account would decrease DKK 0.3 billion (31 December 2023: DKK 0.2 billion) compared to the base case scenario.
Financial statement figures are stated in Danish kroner and whole millions, unless otherwise stated. As a result, rounding discrepancies
may occur because totals have been rounded off and the underlying decimals are not presented to financial statement users.
(b) Significant accounting estimates and judgements
The preparation of financial information requires, in some cases, the use of judgements and estimates by management. This includes
judgements made when applying accounting policies. The most significant judgements made when applying accounting policies relate to
the classification of financial assets and financial liabilities under IFRS 9, especially related to the business model assessment, and the
SPPI test (further explained in note G15 of the Annual Report 2023) and the designation of financial liabilities at fair value through profit or
loss to eliminate or significantly reduce an accounting mismatch (further explained in note G16 of the Annual Report 2023). An overview
of the classification and measurement basis for financial instruments can be found in note G1(c) of the Annual Report 2023.
The determination of the carrying amounts of some assets and liabilities requires the estimation of the effects of uncertain future events
on those assets and liabilities. The estimates are based on premises that management finds reasonable, but which are inherently uncer-
tain and unpredictable. The premises may be incomplete, unexpected future events or situations may occur, and other parties may arrive
at other estimated values. In view of the inherent uncertainties and the high level of subjectivity and judgement involved in the recognition
and measurement of the items listed below, it is possible that the outcomes in the next reporting period could differ from those on which
management’s estimates are based.
Measurement of expected credit losses on loans, financial guarantees and loan commitments, and bonds measured at amortised cost or
fair value through other comprehensive income
The three-stage expected credit loss impairment model in IFRS 9 depends on whether the credit risk has increased significantly since ini-
tial recognition. If the credit risk has not increased significantly, the impairment charge equals the expected credit losses resulting from
default events that are possible within the next 12 months (stage 1). If the credit risk has increased significantly, the loan is more than 30
days past due, or the loan is in default or otherwise impaired, the impairment charge equals the lifetime expected credit losses (stages 2
and 3). In determining the impairment for expected credit losses, management exercises judgement and uses estimates and assumptions
as explained in the following paragraphs.
35
Danske Bank / Interim report first half 2024
Management applies judgement when determining the need for post-model adjustments. As at 30 June 2024, the post-model adjust-
ments amounted to DKK 6.7 billion (31 December 2023: DKK 6.7 billion) which are predominantly linked to macroeconomic uncertainties
related to inflation and increasing interest rates, and other sector-specific factors that ensure prudent coverage of expected credit losses
for the Group’s credit exposures. On the types of risks covered by post-model adjustments, more information can be found in note G14.
Note G15 of the Annual Report 2023 and the section on credit risk in note G14 in the Interim report – first half 2024 provide more details
on expected credit losses. As at 30 June 2024, financial assets covered by the expected credit loss model accounted for about 54.6% of
total assets (31 December 2023: 54.8%).
Fair value measurement of financial instruments
At the end of June 2024, no unusual challenges in obtaining reliable pricing apart from insignificant parts of the portfolio remained. The
majority of valuation techniques continues to employ only observable market data, and there has been no significant increase in financial
instruments measured on the basis of valuation techniques that are based on one or more significant unobservable inputs. The latter
continues to include only unlisted shares, certain bonds and some long-dated derivatives for which there is no active market. On the
derivatives portfolio, the Group makes fair value adjustments to cover changes in counterparty risk (CVA) and to cover expected funding
costs (FVA and ColVA) on derivatives, bid-offer spreads on the net open position of the portfolio of assets and liabilities with offsetting
market risk recognised at mid-market prices, and model risk on level 3 derivatives. As at 30 June 2024, the adjustments totalled DKK 0.3
billion (31 December 2023: DKK 0.4 billion), including the adjustment for credit risk on derivatives that are credit impaired. Note G13 of
this report and note G33(a) of the Annual Report 2023 provides more details on the fair value measurement of financial instruments.
Measurement of goodwill
Goodwill is tested for impairment once a year or more frequently if indications of impairment exist. Impairment testing requires manage-
ment to estimate the present value of future cash flows. A number of factors affect the value of such cash flows, including discount rates,
changes in the economic outlook, customer behaviour and competition. At 30 June 2024, goodwill amounted to DKK 4.4 billion (31 De-
cember 2023: DKK 4.4 billion).
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G1. Material accounting policies and estimates - continued
G2. Changes in accounting policies, Financial Highlights and segment reporting
In connection with the quarterly reporting, management performs an impairment review to assess whether there are indications that good-
will might be impaired. This includes a review of decline in income, increase in loan impairment charges, decline in the market value of as-
sets under management, major restructurings, macroeconomic developments etc. No indications of impairment have been noted at the
end of June 2024.
Goodwill mainly consists of DKK 2.1 billion (31 December 2023: DKK 2.1 billion) in Markets, DKK 1.8 billion (31 December 2023: DKK
1.8 billion) in Asset Management and DKK 0.5 billion (31 December 2023: DKK 0.5 billion) in General Banking (all part of the business
segment Large Corporates & Institutions) showing significant amounts of excess value in the impairment tests in 2023.
Note G19 of the Annual Report 2023 provides more information about impairment testing and sensitivity to changes in assumptions.
Measurement of liabilities under insurance contracts (part of Insurance liabilities)
Liabilities under insurance contracts are measured using either the General Measurement Model (GMM), Variable Fee Approach (VFA) or
Premium Allocation Approach (PAA). GMM and VFA both comprise fulfilment cash flows, which are estimates of the present value of fu-
ture cash flows for insurance contracts, adjusted for time value of money and effect of financial risk including a risk adjustment for non-
financial risk, and a contractual service margin (CSM).
Estimates of future cash flows include actuarial computations that rely on estimates of a number of variables such as mortality rates and
disability rates. Mortality rates are based on the Danish FSA’s benchmark, whilst others are estimated based on data from the Group’s
own portfolio of insurance contracts.
The discount rate is fixed on the basis of a zero-coupon yield curve, which is adjusted by a currency and credit risk deduction and a volatility
adjustment. The yield curve is calculated according to principles and based on data that results in a curve based on European Insurance
and Occupational Pension Authority (EIOPA) discount yield curve, which can be found at eiopa.europa.eu/tools-and-data/risk-free-interest-
rate-term-structures_en.
For life insurance contracts, risk adjustment for non-financial risks is calculated based on a safety margin on applied actuarial assump-
tions, such as mortality rates and longevity. The confidence level used to determine the risk adjustment is at least 85%. For insurance
contracts measured using VFA, CSM is calculated on the basis of stochastic models, whereas a deterministic model is used for life insur-
ance contracts measured using GMM.
For health and accident insurance contracts, the loss element includes expectations about mortality, reactivation, reinstatement and re-
purchase, as well as expected costs offset by premiums not yet due. Risk adjustment for non-financial risk is calculated based on a safety
margin on applied actuarial assumptions. The confidence level used to determine the risk adjustment is at least 85%.
Note G18 of the Annual Report 2023 provides more information about liabilities under insurance contracts.
(a) Changes in accounting policies
With effect from 1 January 2024, the Group has changed the presentation in the IFRS Income statement in relation to income and
expenses in Markets, Operating leases and margins on customer transactions in foreign currencies. At the same time, the Group’s
Financial Highlights have been changed to align them with the IFRS financial statements. See note G2(b) for changes in the Financial
Highlights. The changes in presentation have been applied retrospectively, resulting in reclassifications between lines in the IFRS Income
statement as described below:
Markets (part of Large Corporates & Institutions) and Group Treasury (part of Group Functions)
Under IFRS 9, the financial assets in Markets are mandatorily measured at fair value through profit or loss (FVPL) due to having a business
model that is neither “hold to collect” nor “hold to collect and sell”. The Group has aligned presentation of income in Markets with its busi-
ness model; as such, all income and expenses in Markets (including interest on the net funding of operations in Markets) have been
changed to be presented as Net trading income, except any fixed income from customer transactions (presented as interest or fee income
depending on the customer agreement).
Group Treasury holds portfolios of financial assets with the business model “hold to collect”, “hold to collect and sell” and “other” under
IFRS 9 within Internal Bank and financial assets mandatorily measured at fair value through profit or loss (FVPL) outside Internal Bank. To
align the income in Group Treasury with its business models, all income at Internal Bank remains presented by the type of income,
whereas all other income in Group Treasury (including interest on the net funding of investments in Group Treasury) is presented as Net
trading income.
Operating leases
Under IFRS, gains or losses on the sale of operating lease assets (excluding properties) is to be presented on a gross basis if an entity rou-
tinely sells items of property, plant and equipment that have been held for rental purposes as part of its ordinary activities. The Group has
assessed that, although it does sell operating lease assets (primarily leased cars) that have previously been held for rental, this is not a
primary activity of the Group. Therefore gains and losses on the sale of operating lease activities have been changed in 2024 to be pre-
sented on a net basis in the IFRS income statement. This results in the income from lease assets sold in 2023 being reclassified from
Other income to Operating expenses.
Margins on customer transactions in foreign currencies
The Group has changed the presentation of its fixed margin on customer transactions in foreign currencies from Net trading income to Fee
income, because it is a fee in substance. This income in 2023 has been reclassified.
36
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G2. Changes in accounting policies, Financial Highlights and segment reporting -
continued
The tables below shows the impact of the alignment on the IFRS income statement for the first half 2023 and full-year 2023
(DKK millions)
Interest income calculated using the effective interest method
Other interest income
Interest expense
Net interest income from banking activities
Fee income
Fee expenses
Net fee income
Net trading income or loss
Insurance revenue
Insurance service expenses
Net return on investments backing insurance liabilities
Net finance income or expense from insurance
Other insurance related income
Net insurance result
Gain or loss on sale of disposal groups
Other income
Total other income
Total income
Operating expenses
Profit before loan impairment charges
Loan impairment charges
Profit before tax
Tax
Net profit
37
Danske Bank / Interim report first half 2024
Markets and
Group
H1 2023
Treasury
Margins on cus-
tomer transac-
tions in foreign
currencies
Operating
leases
Restated H1
2023
(DKK millions)
Markets and
Group
Full year 2023
Treasury
Margins on cus-
tomer transac-
tions in foreign
currencies
Operating
leases
Restated Full
year 2023
27,611
8,694
21,710
14,595
7,735
2,063
5,672
4,775
2,763
2,298
13,026
-12,784
-18
689
-693
2,236
1,543
27,274
14,329
12,944
-28
12,972
2,794
10,178
-
-2,359
-4,299
1,940
-58
-146
88
-2,027
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-1,687
-1,687
-1,687
-1,687
-
-
-
-
-
-
-
-
-
510
-
510
-510
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27,611
Interest income calculated using the effective interest method
6,335
Other interest income
17,411
Interest expense
16,535
Net interest income from banking activities
8,186
1,917
6,270
Fee income
Fee expenses
Net fee income
2,238
Net trading income or loss
2,763
2,298
Insurance revenue
Insurance service expenses
13,026
Net return on investments backing insurance liabilities
-12,784
Net finance income or expense from insurance
-18
689
-693
548
-145
25,586
12,642
12,944
Other insurance related income
Net insurance result
Gain or loss on sale of disposal groups
Other income
Total other income
Total income
Operating expenses
Profit before loan impairment charges
-28
Loan impairment charges
12,972
Profit before tax
2,794
Tax
10,178
Net profit
60,842
18,752
47,325
32,269
16,111
4,481
11,630
6,590
5,735
5,094
35,228
-34,613
216
1,472
-555
4,446
3,891
55,852
28,908
26,944
262
26,682
5,420
21,262
-
-3,520
-6,224
2,704
-52
-278
225
-2,928
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-3,431
-3,431
-3,431
-3,431
-
-
-
-
-
-
-
-
-
1,049
-
1,049
-1,049
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
60,842
15,232
41,102
34,972
17,108
4,203
12,904
2,613
5,735
5,094
35,228
-34,613
216
1,472
-555
1,015
460
52,422
25,478
26,944
262
26,682
5,420
21,262
G3. Business segments
(a) Business model and business segmentation
The Group’s commercial activities are organised in five reporting business units:
Personal Customers, which serves personal customers across all markets
Business Customers, which serves small and medium-sized business customers across all markets, and includes the Group’s
Asset Finance operations
Large Corporates & Institutions, which serves large corporates and institutional customers across all Nordic markets
Danica Pension, which specialises in pension schemes, life insurance policies and health insurance policies in Denmark
Northern Ireland, which serves retail and commercial customers through a network of branches and business centres in North-
ern Ireland alongside digital channels.
Besides the five commercial business units, the Group’s reportable segments under IFRS 8 include Group Functions, as presented in the
tables on the following page.
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G2. Changes in accounting policies, Financial Highlights and segment reporting -
continued
Amendment to IFRS 16, Leases
The amendment to IFRS 16 clarifies how a seller-lessee should apply subsequent measurement requirements in IFRS 16 to the lease
liability that arises in a sale and leaseback transaction. The seller-lessee must measure the lease liabilities arising from the leaseback
transactions such that it does not recognise any gain or loss that relates to the right of use it retains.
The amendment has no impact on the financial statements.
Amendment to IAS 1, Presentation of financial statements
The first amendment to IAS 1 provides a more general approach to classifying liabilities as current or non-current, based on the contrac-
tual arrangements in place at the reporting date, rather than based on whether management intends to exercise a right to defer the settle-
ment of the liability. In addition, this amendment clarifies how conditions with which an entity must comply within twelve months after the
reporting period affect the classification of a liability.
The second amendment clarifies that only covenants with which an entity must comply on or before the reporting date affect the classifica-
tion of the liability as current or non-current. In addition, an entity must disclose information in the notes that enables users of the financial
statements to understand the risk that non-current liabilities with covenants could become repayable within twelve months.
The amendments have no impact on the financial statements.
Amendment to IAS 7, Statement of cash flows, and IFRS 7, Financial instruments: disclosures
The amendments to IAS 7 and IFRS 7 requires entities to provide additional disclosures about supplier finance arrangements, in order to
assess how the arrangements affect the entity’s liabilities and cash flows, and to allow users of the financial statements to understand the
effect of supplier finance arrangements on the exposure to liquidity risk, and how the entity may be affected if it no longer has access to the
arrangements.
The amendments have no impact on the financial statements.
(b) Changes in Financial Highlights and segment reporting
With effect from 1 January 2024, the Group implemented the following changes to the Financial Highlights in order to align with IFRS re-
porting.
• Non-core has ceased to exist as a separate segment, and is now a sub-segment of Group Functions. Therefore income, expenses,
•
assets and liabilities in the former Non-core segment have been reclassified to the relevant lines within Group Functions.
The presentation in the Financial Highlights’ balance sheet of loans and deposits that are reported in the IFRS Balance sheet as Assets
held for sale and Liabilities in disposal groups held for sale has been changed to be presented within Other assets and Other liabilities
respectively
• Various minor adjustments to align with IFRS reporting.
The change in presentation of fixed margin on customer transactions in foreign currencies described in note G2(a) has also been applied to
the Financial Highlights, and reclassifies an amount of DKK 510 million from Net trading income to Fee income for the first half 2023.
38
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G3. Business segments - continued
Business segments first half 2024
Business segments first half 2023
(DKK millions)
Net interest income
Net fee income
Net trading income
Net income from insurance business*
Other income**
Total income
Operating expenses
of which resolution fund, bank tax etc.
Profit before loan impairment charges
Loan impairment charges
Profit before tax
Personal
Customers
Business
Customers
Large
Corporates &
Institutions
Danica
Northern
Ireland
Group
Functions Eliminations
Total
(DKK millions)
Personal
Customers*
Business
Customers*
Large
Corporates &
Institutions*
7,091
2,520
71
-
33
9,715
4,866
72
4,850
-178
5,028
5,770
1,171
18
-
399
7,359
2,628
112
4,731
591
4,140
3,496
3,266
1,286
-
1
8,048
3,552
235
4,496
-513
5,009
-
-
-
949
-
1,443
155
79
-
5
949
1,683
-
-
949
-
949
743
-
941
3
938
584
-145
8
-
1,158
1,605
2,266
36
-661
-2
-659
-97
107
-86
-
-1,272
18,287
Net interest income
7,074
1,377
949
324
Net fee income
Net trading income
Net income from insurance business**
Other income***
-1,348
28,011
Total income
-1,236
12,818
Operating expenses
-
454
of which resolution fund, bank tax etc.
-113
15,193
Profit before loan impairment charges
-
-99
Loan impairment charges
-113
15,292
Profit before tax
7,017
2,086
107
-
-650
8,560
4,462
85
4,098
478
3,620
5,864
1,113
42
-
536
7,555
2,455
127
5,099
142
4,957
3,414
2,935
1,668
-
12
8,028
3,543
246
4,485
-522
5,006
Danica
-
-
-
689
-
Northern
Ireland
1,236
168
53
-
10
689
1,466
Group
Functions* Eliminations*
Total*
-911
-125
431
-
1,326
721
-83
93
-63
-
-1,380
16,535
6,270
2,238
689
-145
-1,432
25,586
-
-
689
-
689
657
2,872
-1,346
12,642
-
809
-131
941
38
-2,150
5
-2,155
-
496
-86
12,944
-
-28
-86
12,972
Loans, excluding reverse transactions
650,695
645,174
294,542
-
62,305
14,614
-15,037 1,652,294
Loans, excluding reverse transactions
642,614
624,897
309,934
-
56,322
27,176
-27,560 1,633,382
Other assets
Total assets
476,960
182,117
2,800,605 570,817
62,449 4,963,183
-6,944,666 2,111,465
Other assets
463,750
181,043
3,557,392 546,144
66,678 4,404,808
-7,121,589 2,098,226
1,127,655
827,291
3,095,147 570,817
124,754 4,977,797
-6,959,703 3,763,759
Total assets
1,106,364
805,940
3,867,326 546,144
123,000 4,431,984
-7,149,149 3,731,608
Deposits, excluding repo deposits
391,010
251,626
328,530
-
103,458
6,262
-8,854 1,072,032
Deposits, excluding repo deposits
380,565
261,293
325,772
-
98,700
4,645
-9,083 1,061,892
Other liabilities
Allocated capital
706,138
533,179
2,725,585 570,817
14,872 4,913,930
-6,950,850 2,513,672
Other liabilities
696,619
505,188
3,500,409 546,144
18,437 4,374,338
-7,140,066 2,501,068
30,508
42,486
41,032
-
6,424
57,605
-
178,055
Allocated capital
29,180
39,460
41,145
-
5,862
53,001
-
168,648
Total liabilities and equity
1,127,655
827,291
3,095,147 570,817
124,754 4,977,797
-6,959,703 3,763,759
Total liabilities and equity
1,106,364
805,940
3,867,326 546,144
123,000 4,431,984
-7,149,149 3,731,608
Profit before tax as % p.a. of allocated
capital (avg.)
Cost/income ratio (%)
32.7
50.1
19.7
35.7
24.7
44.1
9.5
-
30.1
44.1
-3.0
-
Full-time-equivalent staff, end of period
4,020
1,688
2,105
912
1,240
10,115
-
-
-
17.3
45.8
Profit before tax as % p.a. of allocated
capital (avg.)
Cost/income ratio (%)
24.5
52.1
25.1
32.5
24.9
44.1
7.0
-
30.8
44.8
-12.1
-
20,079
Full-time-equivalent staff, end of period
4,288
1,677
2,103
898
1,285
11,089
-
-
-
15.8
49.4
21,339
* Net income from insurance business in the Financial highlights and Business segments is equivalent to Net insurance result in the IFRS financial state-
ments.
** Other income in the Financial highlights and Business segments is equivalent to Total other income in the IFRS financial statements
* Comparative information has been restated, as described in note G2(b)
** Net income from insurance business in the Financial highlights and Business segments is equivalent to Net insurance result in the IFRS financial state-
ments.
*** Other income in the Financial highlights and Business segments is equivalent to Total other income in the IFRS financial statements.
39
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G4. Income
G5. Loan impairment charges and reconciliation of total allowance account
(a) Fee income
Note G6 of the Annual Report 2023 provides additional information on the Group’s accounting policy for fee income, including the descrip-
tion by fee type.
Loan impairment charges include impairment charges for expected credit losses on loans, lease receivables, bonds at amortised cost and
fair value through other comprehensive income, certain loan commitments and financial guarantee contracts as well as fair value adjust-
ments of the credit risk on loans measured at fair value.
Fee income first half 2024
(DKK millions)
Investment
Money transfers, account fee, cash management and other fees
Lending and Guarantees
Capital markets
Total
Fee income first half 2023
(DKK millions)
Investment
Money transfers, account fee, cash management and other fees
Lending and Guarantees
Capital markets
Total
Fee income
Fee expense Net fee income
4,185
3,131
1,159
777
9,251
1,760
313
76
28
Loan impairment charges
(DKK millions)
ECL on new assets
ECL on assets derecognised
Impact of net remeasurement of ECL (incl. changes in models)
2,425
2,818
1,083
749
Write-offs charged directly to income statement
2,177
7,074
Received on claims previously written off
Interest income, effective interest method
Total
Fee income*
Fee expense* Net fee income*
3,414
2,927
1,184
662
8,186
1,346
463
64
44
1,917
2,068
2,464
1,120
618
6,270
30 June 2024 30 June 2023
2,584
-1,815
-98
71
-665
-175
-99
1,562
-1,499
169
460
-566
-153
-28
* Comparative information has been restated, as described in note G2(a) and G2(b).
(b) Gain or loss on sale of disposal groups
Gain or loss on sale of disposal groups for the six months ending 30 June 2023 included the expected costs directly attributable to the
sale of the personal customers business in Norway, as announced in July 2023.
(c) Other income
Other income amounted to DKK 308 million for the six months ending 30 June 2024 (30 June 2023: DKK 549 million). Other income
includes income from investment property and real estate brokerage, and income from holdings in associates.
40
Danske Bank / Interim report first half 2024
G6. Insurance assets and Insurance liabilities
Insurance assets comprise assets earmarked for policyholders. As at 30 June 2024, Insurance asset totals DKK 543,164 million (31
December 2023: DKK 518,555 million) before own bonds of DKK 4,994 million (31 December 2023: DKK 5,984 million) and other
intra-group balances of DKK 15,324 million (31 December 2023: DKK 16,540 million).
Insurance liabilities comprise DKK 437,108 million of Liabilities under insurance contracts as defined by IFRS 17 (31 December 2023:
DKK 415, 414 million) and DKK 83,878 million of Other insurance-related liabilities (31 December 2023: DKK 78,130 million), before
intra-group balances of DKK 14,153 million (31 December 2023: DKK 10,914 million).
Note G18 of Annual Report 2023 provides additional information on Insurance assets and Insurance liabilities.
G7. Issued bonds, subordinated debt and additional tier 1 capital
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G5. Loan impairment charges and reconciliation of total allowance account -
continued
Impact of net remeasurement of ECL (incl. changes in models)
-1,289
1,321
Reconciliation of total allowance account
(DKK millions)
ECL allowance account as at 1 January 2023
Transferred to stage 1 during the period
Transferred to stage 2 during the period
Transferred to stage 3 during the period
ECL on new assets
ECL on assets derecognised
Write-offs debited to the allowance account
Foreign exchange adjustments
Other changes
ECL allowance account as at 30 June 2023
ECL allowance account as at 1 January 2024
Transferred to stage 1 during the period
Transferred to stage 2 during the period
Transferred to stage 3 during the period
ECL on new assets
ECL on assets derecognised
Impact of net remeasurement of ECL (incl. changes in models)
Write-offs debited to the allowance account
Foreign exchange adjustments
Other changes
ECL allowance account as at 30 June 2024
Stage 1
Stage 2
Stage 3
Total
3,273
1,548
-179
-12
332
-234
8,082
-1,485
368
-297
926
-784
-
-37
-
3,403
3,592
782
-204
-16
-192
-301
-140
-9
-12
1
-
-167
-6
7,957
7,486
-728
435
-263
1,366
-1,005
281
-
-55
-1
8,290
19,645
-63
-189
309
303
-481
136
-180
-95
10
-
-
-
1,562
-1,499
169
-180
-299
4
8,041
19,401
9,062
20,140
-55
-231
279
1,411
-509
-240
-192
-1
-2
-
-
-
2,584
-1,815
-98
-201
-69
-2
Issued bonds at fair value
(DKK millions)
Bonds issued by Realkredit Danmark (covered bonds)
Commercial papers and certificates of deposits
Structured retail notes
Issued bonds at fair value, total
Issued bonds at amortised cost
(DKK millions)
The movements on the allowance account are determined by comparing the classification and amount in the balance sheet at the begin-
ning and the end of the period. For further information on the decomposition of the allowance account on facilities in stages 1-3 under
IFRS 9, see note G14.
Preferred senior bonds
Covered bonds
Structured retail notes
Issued bonds at amortised cost, total
Non-preferred senior bonds
3,501
7,516
9,521
20,539
Commercial papers and certificates of deposits
30 June 31 December
2024
2023
730,638
741,062
264
2,258
5,228
2,489
733,160
748,780
30 June 31 December
2024
2023
54,197
70,108
24,419
63,345
134,410
124,703
1,122
1,766
259,837
214,234
94,300
93,194
41
Danske Bank / Interim report first half 2024
Further information on issued bonds at fair value through profit or loss can be found in note G16 of the Annual Report 2023. The issuance
and redemption of bonds (including commercial papers and certificates of deposits at fair value) during the year are presented in the follow-
ing tables.
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G7. Issued bonds, subordinated debt and additional tier 1 capital - continued
G8. Assets held for sale and Liabilities in disposal groups held for sale
Nominal value
(DKK millions)
Commercial papers and certificate of deposits
Preferred senior bonds
Covered bonds
Structured retail notes
Non-preferred senior bonds
Other issued bonds
Nominal value
(DKK millions)
Commercial papers and certificate of deposits
Preferred senior bonds*
Covered bonds
Structured retail notes*
Non-preferred senior bonds
Other issued bonds
Foreign
currency
Issued
Redeemed
translation
39,098
6,954
20,500
-
21,670
88,221
14,643
1,650
9,080
477
21,860
47,710
405
1,696
-1,723
-44
-329
6
30 June
2024
54,473
72,546
139,116
3,555
97,381
367,070
(DKK millions)
Assets held for sale
Loans
Other
Total
Liabilities in disposal groups
Deposits
Covered bonds
Total
30 June
31 December
2024
2023
90,995
110,415
202
289
91,197
110,704
29,861
25,522
55,383
30,599
25,877
56,476
Issued
Redeemed
66,432
39,700
33,000
22,500
36,812
25,430
65,850
2,414
23,700
161,633
154,206
6,927
-
Foreign
currency
translation
31 December
2023
-9,135
-1,146
5,529
-437
-1,486
-6,675
29,613
65,545
129,419
4,076
97,900
326,553
In the table above, loans and deposits consists of loan portfolios where the Group has entered into sales agreements. As announced in July
2023, Danske Bank has entered into an agreement to sell its personal customers business Norway. The sale, which includes loans, de-
posits and covered bonds, is expected to close during the fourth quarter of 2024.
Assets held for sale also includes lease assets (where the Group acts as lessor) put up for sale at the end of the lease and properties taken
over by the Group under non-performing loan agreements. The Group expects to sell the properties through a real estate agent within 12
months from the date of acquisition. The properties are primarily in Denmark.
1 January
2024
29,613
65,545
129,419
4,076
97,900
326,553
1 January
2023
9,128
52,421
156,740
100,586
325,801
* DKK 4.1 billion of Structured retail notes as at 31 December 2023 that were previously included within Preferred senior bonds are now presented sepa-
rately. There is no impact on total Other issued bond.
Subordinated debt and additional tier 1 capital
As at 30 June 2024, the nominal value of subordinated debt, including liability accounted additional tier 1 capital, amounted to DKK
38,140 million (31 December 2023: DKK 40,069 million). During the six months ended 30 June 2024, the Group issued EUR 750 mil-
lion of tier 2 capital and SEK 4,250 million of tier 2 capital. The Group also redeemed USD 750 million of liability accounted additional tier
1 capital and EUR 750 million of tier 2 capital during the six months ended 30 June 2024. During 2023, the Group did not issue or re-
deem any additional tier 1 or tier 2 capital instruments.
For the additional tier 1 capital, Danske Bank A/S may, at its sole discretion, omit interest payments to bondholders. Any interest pay-
ments are paid out of distributable items, which primarily consist of retained earnings in Danske Bank A/S and Danske Bank Group. As at
30 June 2024, distributable items for Danske Bank A/S amounted to DKK 132.2 billion (31 December 2023: DKK 119.2 billion). The
additional tier 1 capital will be temporarily written down or converted into a variable number of ordinary shares, depending on the terms of
each issued bond, if the common equity tier 1 capital ratio falls below 7% for Danske Bank A/S or Danske Bank Group. As at 30 June
2024 the common equity tier 1 capital ratio was 21.4% (31 December 2023: 21.9%) for Danske Bank A/S. The ratios for the Danske
Bank Group are disclosed in the Statement of capital.
42
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G9. Other assets and Other liabilities
G10. Foreign currency translation reserve
(DKK millions)
Other assets
Accrued interest and commissions due
Prepayments, accruals and other amounts due
Defined benefit pension plan, net assets
Investment property
Tangible assets
Right of use lease assets
Holdings in associates
Total
Other liabilities
Sundry creditors
Accrued interest and commissions due
Defined benefit pension plans, net liabilities
Other staff commitments
Lease liabilities
Loan commitments and guarantees etc.
Reserves subject to a reimbursement obligation
Provisions, including litigations
Total
30 June
31 December
2024
2023
8,174
12,379
865
383
7,433
3,832
581
7,264
10,811
806
157
7,418
4,010
612
33,647
31,079
As at 30 June 2024, the Group has granted loans to its branches in Sweden, Norway and Finland in the currency of the foreign unit for a
total of DKK 33,336 million (31 December 2023: DKK 37,999 million). The loans are part of the net investment in those units and the
foreign currency gains/losses on these loans are recognised in Other comprehensive income. The funding of the loans is partly done in
DKK in order to create a so-called structural FX hedge position in accordance with banking regulations, i.e. to reduce the impact on capital
ratios resulting from changes in the risk exposure amount due to changes in currency rates. The Group’s net investment in its subsidiaries
Danske Hypotek AB (Sweden) and Danske Mortgage Bank Plc (Finland) is included in the structural FX hedge position to extend the hedge
to the risk exposure amount measured by currency for EUR, NOK and SEK across the entire Group balance sheet, although with con-
straints to the size of the loans to the foreign branches and the net investments in the foreign subsidiaries. This strategy of partly hedging
the sensitivity to capital ratios from volatility in foreign currency rates, increases the volatility in Other comprehensive income and the For-
eign currency translation reserve in equity under IFRS since it decreases the hedge of the currency risk on the net investments in those
units. As at 30 June 2024, the structural FX hedge position totalled DKK 37,144 million (31 December 2023: DKK 37,641 million) and a
loss of DKK 496 million has been recognised in Other comprehensive income during the first half of 2024, primarily due to a weakening of
SEK against DKK but also NOK against DKK throughout the first half of 2024. For comparison, a loss of DKK 2,203 million was recog-
nised in Other comprehensive income during the first half of 2023 primarily due to a weakening of NOK against DKK.
40,052
16,183
274
1,073
3,932
3,470
2
2,069
67,056
33,005
12,902
301
1,175
4,102
3,161
2
2,398
57,046
In the table above, Provisions, including litigations includes customer remediation of DKK 1,370 million, regulatory and legal proceedings
of DKK 3 million, restructuring costs of DKK 249 million and other provisions of DKK 447 million.
43
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G11. Guarantees, commitments and contingent liabilities
remediation action to address those failings to prevent any similar occurrences, and the Bank remains in contact with DoJ as a matter of
post-resolution obligations set forth in the agreement with DoJ.
Contingent liabilities consist of possible liabilities arising from past events. The existence of such liabilities will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the Group’s control. Contingent liabilities that can,
but are not likely to, result in an outflow of economic resources are disclosed.
The Bank remains subject to a criminal investigation by authorities in France and has posted bail in the amount of DKK 80 million. The
Bank continues to cooperate with the authorities.
The Group uses a variety of loan related financial instruments to meet customers’ financial requirements. Instruments include loan offers
and other credit facilities, guarantees and instruments not recognised in the balance sheet. If an instrument is likely to result in a payment
obligation, a liability is recognised under Other liabilities corresponding to the present value of expected payments.
(a) Guarantees
(DKK millions)
Financial guarantees
Other guarantees
Total
(b) Commitments
(DKK millions)
Loan commitments shorter than 1 year
Loan commitments longer than 1 year
Other unutilised commitments
Total
30 June 31 December
2024
4,035
75,985
80,021
2023
4,348
71,536
75,883
30 June 31 December
2024
2023
224,047
197,007
214,177
220,285
16,490
16,719
454,714
434,011
In addition to credit exposure from lending activities, loan offers made and uncommitted lines of credit granted by the Group amounted to
DKK 194 billion (31 December 2023: DKK 232 billion). These items are included in the calculation of the total risk exposure amount in
accordance with the CRR.
(c) Regulatory and legal proceedings
Estonia matter
In December 2022, Danske Bank entered into final coordinated resolutions with the US Department of Justice (DoJ), the US Securities
and Exchange Commission (SEC) and the Danish Special Crime Unit (SCU) following the investigations into failings and misconduct related
to the non-resident portfolio at Danske Bank’s former Estonia branch. The aggregate amounts payable to the US and Danish authorities
were paid in January 2023. The coordinated resolutions marked the end of the criminal and regulatory investigations into Danske Bank by
the authorities in Denmark and the United States.
As part of the Bank’s agreement with DoJ, Danske Bank was placed on corporate probation for three years from 13 December 2022 until
13 December 2025 and Danske Bank committed to continue improving its compliance programs. Danske Bank has taken extensive
44
Danske Bank / Interim report first half 2024
The civil claims filed against Danske Bank by institutional investors can be summarised to six case complexes with a current total claim
amount of approximately DKK 12.8 billion. One of the case complexes has partly been referred to the Eastern High Court, while the re-
maining case complexes are stayed or pending before the Copenhagen City Court. The civil claims were not included in the coordinated
resolutions with DoJ, SEC, and SCU. Danske Bank will continue to defend itself vigorously against these claims. The timing of completion of
such civil claims (pending or threatening) and their outcome are uncertain and could be material.
Danske Bank has been procedurally notified in two claims filed against Thomas F. Borgen. Under Danish law, the purpose of a procedural
notification is to make a formal reservation of rights to bring a potential claim against the notified party. The first case was dismissed in the
first instance and subsequently appealed by the claimants. The original claim amount for both claims was approximately DKK 3.2 billion
but has been reduced to approximately DKK 1.7 billion.
An action has been filed in the United States District Court for the Eastern District of New York against Danske Bank and others. The com-
plaint sought unspecified punitive and compensatory damages. On 29 December 2022, the action was dismissed by the court and on 27
January 2023, the complainants filed an appeal of the dismissal. The timing of the completion of the lawsuit and the outcome are uncer-
tain.
Other
Owing to its business volume, Danske Bank is continually a party to various other lawsuits and disputes, and has an ongoing dialogue with
public authorities, such as the Danish FSA and the Danish Tax Agency on other matters. In general, Danske Bank does not expect the out-
comes of any of these other pending lawsuits and disputes, or its dialogue with public authorities to have any material effect on its financial
position. Provisions for litigations are included in Other liabilities, see note G9.
(d) Further explanation
A limited number of employees are employed under terms which, if they are dismissed before reaching their normal retirement age, grant
them a severance and/or pension payment in excess of their entitlement under ordinary terms of employment. As the sponsoring em-
ployer, the Group is also liable for the pension obligations of a number of company pension funds.
The Group participates in the Danish Guarantee Fund and the Danish Resolution Fund. The funds’ capital must amount to at least 0.8%
and 1%, respectively, of the covered deposits of all Danish credit institutions by 31 December 2023.
The Danish Guarantee Fund is currently fully funded, but if the fund subsequently does not have sufficient means to make the required
payments, extraordinary contributions of up to 0.5% of the individual institution’s covered deposits may be required. Extraordinary contri-
butions above this percentage require the consent of the Danish FSA.
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G11. Guarantees, commitments and contingent liabilities - continued
G12. Assets provided or received as collateral
Danske Bank A/S and Realkredit Danmark A/S make contributions to the Danish Resolution Fund based on their size and risk relative to
other credit institutions in Denmark. The contribution to the Resolution Fund is recognised as operating expenses. After payment of the
contribution for 2024, the Resolution Fund is fully funded. If the Resolution Fund does not have sufficient means to make the required pay-
ments, extraordinary contributions of up to three times the latest annual contributions may be required.
In addition, Danish banks participate in the Danish Restructuring Fund, which reimburses creditors if the final dividend is lower than the
interim dividend in respect of banks that were in distress before 1 June 2015. Similarly, Danish banks have made payment commitments
totalling DKK 1 billion to cover losses incurred by the Danish Restructuring Fund for the withdrawal of distressed banks from data centres
etc. Payments to the Danish Restructuring Fund are calculated based on the individual credit institution’s share of covered deposits rela-
tive to other credit institutions in Denmark. However, each institution’s contribution to the Danish Restructuring Fund may not exceed
0.2% of its covered deposits.
The Group is a member of deposit guarantee schemes and other compensation schemes in Norway and the UK. As in Denmark, the con-
tributions to the schemes in these countries are annual contributions combined with extraordinary contributions if the means of the
schemes are not sufficient to cover the required payments.
Danske Bank A/S is taxed jointly with all Danish entities of Danske Bank Group and is jointly and severally liable with these for payment of
Danish corporation tax and withholding tax, etc.
As at 30 June 2024, the Group had deposited securities (including bonds issued by the Group) worth DKK 5.8 billion as collateral with
Danish and international clearing centres and other institutions (31 December 2023: DKK 4.5 billion).
As at 30 June 2024, the Group had provided cash and securities (including bonds issued by the Group) worth DKK 82.8 billion as collat-
eral for derivatives transactions (31 December 2023: DKK 90.6 billion).
As at 30 June 2024, the Group had registered insurance assets (including bonds and shares issued by the Group) and investment con-
tracts worth DKK 479.0 billion (31 December 2023: DKK 443.2 billion) as collateral for policyholders’ savings of DKK 449.4 billion (31
December 2023: DKK 426.0 billion).
As at 30 June 2024, the Group had registered loans at fair value and securities (including bonds issued by the Group) worth a total of DKK
750.0 billion (31 December 2023: DKK 759.6 billion) as collateral for bonds issued by Realkredit Danmark. Similarly, the Group had reg-
istered loans and other assets worth DKK 271.9 billion (31 December 2023: DKK 308.8 billion) as collateral for covered bonds issued
under Danish, Finnish and Swedish law.
The table below shows assets provided as collateral for liabilities or contingent liabilities. Assets provided as collateral under repo transac-
tions are shown separately whereas the types explained above are included in the column ‘Other’.
(DKK millions)
Due from credit institutions
Trading and investment securities
Loans at fair value
Loans at amortised cost
Insurance assets and assets under investment contracts
Total
Own issued bonds
30 June 2024
31 December 2023
Repo
Other
Total
Repo
Other
Total
-
32,948
32,948
-
15,922
15,922
203,611
49,567
253,178
164,189
48,326
212,514
-
-
-
743,971
743,971
281,840
281,840
458,749
458,749
-
-
-
753,277
753,277
340,297
340,297
420,701
420,701
203,611 1,567,075 1,770,686
164,189 1,578,522 1,742,711
29,535
23,377
52,912
33,693
30,665
64,358
Total, including own issued bonds
233,146 1,590,452 1,823,598
197,882 1,609,187 1,807,069
45
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G12. Assets provided or received as collateral – continued
Securities provided as collateral under agreements that entitle the counterparty to sell the securities or provide them as collateral for other
loans amounted to DKK 203.6 billion as at 30 June 2024 (31 December 2023: DKK 164.2 billion).
As at 30 June 2024, the Group had received securities worth DKK 399.2 billion (31 December 2023: DKK 315.5 billion) as collateral for
reverse repo transactions, securities lending, derivatives transactions and other transactions entered into on the standard terms for such
transactions. As the party receiving the collateral, the Group is entitled in most cases to sell the securities or provide the securities as col-
lateral for other loans in exchange for returning similar securities to the counterparty at the expiry of the transactions. As at 30 June
2024, the Group had sold securities or provided securities as collateral worth DKK 131.3 billion (31 December 2023: DKK 113.6 billion).
The Group also receives many other types of assets as collateral in connection with its ordinary lending activities. The Group has not re-
ceived the ownership of these assets. Note G40 of the Annual Report 2023 provide more details on assets received as collateral in con-
nection with ordinary lending activities.
46
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G13. Fair value information for financial instruments
Financial instruments are recognised in the balance sheet at fair value or amortised cost.
(DKK millions)
Financial assets
Cash in hand and demand deposits with central banks
Due from credit institutions and central banks
Trading portfolio assets
Investment securities held at amortised cost
Investment securities held at fair value
Loans at amortised cost
Loans at fair value
Assets under pooled schemes and investment contracts
Insurance assets
Loans held for sale
Total
Financial liabilities
Due to credit institutions and central banks
Trading portfolio liabilities
Deposits
Issued bonds at fair value
Issued bonds at amortised cost
Deposits under pooled schemes and investment contracts
Insurance liabilities*
Liabilities held for sale
Non-preferred senior bonds
Subordinated debt
Loan commitments and guarantees
Total
30 June 2024
31 December 2023
Fair value Amortised cost
Fair value Amortised cost
-
208,002
-
259,156
98,876
497,400
55,624
92,985
21,829
-
548,189
-
-
144,047
-
155,398
129,595
-
128,516
-
-
910,167
-
918,628
980,308
74,462
484,002
-
-
-
928,239
70,900
460,747
-
-
-
-
90,995
-
110,415
2,264,644
1,408,834
2,229,576
1,465,425
122,045
372,509
80,544
85,548
69,060
-
454,487
-
111,010
1,068,828
120,213
1,101,990
733,160
-
748,780
-
-
259,837
-
214,234
75,439
59,658
-
-
71,253
60,136
-
-
-
-
55,383
94,300
37,052
3,470
-
-
-
-
-
-
56,476
93,194
38,774
3,161
1,473,822
1,599,415
1,540,417
1,576,889
* The table above has been restated to include Insurance liabilities as at 31 December 2023 which meet the definition of financial instruments.
47
Danske Bank / Interim report first half 2024
Insurance liabilities in the Balance sheet comprises Liabilities under insurance contracts (as defined by IFRS 17) and Other insurance-
related liabilities. The table above does not include Liabilities under insurance contracts as they are measured using the General Measure-
ment Model, Variable Fee Approach or Premium Allocation Approach as defined by IFRS 17.
Investment securities at fair value includes bonds measured at fair value through other comprehensive income, see the table on bonds in
note G14. All other financial assets in the column ‘Fair value’ are mandatorily measured at fair value through profit or loss under IFRS 9.
Except for trading portfolio liabilities, all other financial liabilities at fair value are measured at fair value through profit or loss using the fair
value option.
Financial instruments at fair value
Note G33(a) of the Annual Report 2023 provides more information about fair value calculation methods for financial instruments.
Financial instruments valued on the basis of quoted prices in an active market are recognised in the Quoted prices category. Financial in-
struments valued substantially on the basis of other observable input are recognised in the Observable input category. This category co-
vers instruments such as derivatives valued on the basis of observable yield curves and exchange rates and illiquid mortgage bonds valued
by reference to the value of similar, liquid bonds. Other financial instruments valued substantially on the basis of non-observable input are
recognised in the Non-observable input category. This category covers instruments such as unlisted shares, some unlisted bonds and a
very limited portion of the derivatives portfolio.
If, at the balance sheet date, a financial instrument’s classification differs from its classification at the beginning of the year, the classifica-
tion of the instrument changes. Changes are considered to have taken place at the balance sheet date. Developments in the financial mar-
kets have resulted in reclassification between the categories. Some bonds have become illiquid and have therefore been moved from the
Quoted prices to the Observable input category, while other bonds have become liquid and have been moved from the Observable input to
the Quoted prices category. The amounts transferred are insignificant.
Financial instruments at amortised cost
The liquidity portfolio managed by Group Treasury includes different portfolios with different business models (see note G13 in Annual
Report 2023 for further description of business models). Bonds held within a business model for the purpose of collecting contractual
cash flows (hold to collect) and with cash flows that are solely payments of principal and interest on the principal amount outstanding are
measured at amortised cost. For bonds classified as hold-to-collect, amortised cost exceeded fair value as of 30 June 2024 with DKK
6,689 million (31 December 2023: DKK 6,489 million). This portfolio mainly contains of Danish mortgage bonds and central and local
government bonds and has a weighted average rating factor of 4.6, following Moody’s numerical rating factor to scale, which corresponds
to a strong Aa1 rating. The interest rate risk duration for the portfolio is 3.1 years. Without any reinvestments, respectively 29%, 50% and
21% of this portfolio will reach maturity within a period of 1 year, between 1 to 5 years, and after 5 years. The difference between amor-
tised cost and fair value will reduce along with time to maturity of the bonds running off. Without taking this into account, respectively 9%,
17% and 74% of the differential value of DKK 6,689 million will be offset within a period of 1 year, between 1 and 5 years, and after 5
years. Note G33 in Annual Report 2023 provides information on the difference between the carrying amount and the fair value of financial
instruments recognised at amortised cost.
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G13. Fair value information for financial instruments – continued
Financial instruments at fair value
(DKK millions)
30 June 2024
Financial assets
Due from credit institutions and central banks
Derivatives
Trading portfolio bonds
Trading portfolio shares
Investment securities, bonds
Investment securities, shares
Loans at fair value
Assets under pooled schemes and unit-linked investment contracts
Insurance assets, bonds
Insurance assets, shares
Insurance assets, derivatives
Total
Financial liabilities
Due to credit institutions and central banks
Derivatives
Obligations to repurchase securities
Deposits
Issued bonds at fair value
Deposits under pooled schemes and investment contracts
Insurance liabilities
Total
48
Danske Bank / Interim report first half 2024
Quoted prices
Observable
input
Non-observable
input
Total
(DKK millions)
31 December 2023
Financial assets
-
8,371
157,066
50,853
106,017
-
-
74,462
165,562
188,326
801
98,876
266,510
11,163
-
23,102
-
980,308
-
41,286
5,710
42,364
-
3,141
-
296
-
476
-
-
3,846
35,424
683
98,876
278,022
168,229
51,149
129,119
476
980,308
74,462
210,694
229,460
43,848
Due from credit institutions and central banks
Derivatives
Trading portfolio bonds
Trading portfolio shares
Investment securities, bonds
Investment securities, shares
Loans at fair value
Assets under pooled schemes and unit-linked investment contracts
Insurance assets, bonds
Insurance assets, shares
Insurance assets, derivatives
Quoted prices
Observable
input
Non-observable
input
-
6,723
168,031
18,785
100,554
-
-
70,900
189,297
153,310
141
92,985
343,134
9,532
-
27,470
-
928,239
-
22,318
5,121
52,436
-
1,865
-
119
-
493
-
-
2,458
34,755
911
Total
92,985
351,722
177,563
18,904
128,023
493
928,239
70,900
214,073
193,186
53,488
751,458
1,469,319
43,866
2,264,644
Total
707,741
1,481,235
40,601
2,229,576
-
9,715
121,342
122,045
237,149
1,980
-
111,010
733,160
-
101
-
75,439
58,260
864,318
605,883
-
2,324
-
-
-
-
1,297
3,621
Financial liabilities
Due to credit institutions and central banks
Derivatives
Obligations to repurchase securities
Deposits
Issued bonds at fair value
Deposits under pooled schemes and investment contracts
Insurance liabilities*
122,045
249,188
123,322
111,010
733,160
75,439
59,658
1,473,822
Total
-
7,360
111,657
85,548
331,954
1,853
-
120,213
748,780
-
-
71,253
58,976
-
1,604
59
-
-
-
1,160
85,548
340,918
113,569
120,213
748,780
71,253
60,136
867,797
669,797
2,823
1,540,417
* The table above has been restated to include Insurance liabilities as at 31 December 2023 which meet the definition of financial instruments.
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G13. Fair value information for financial instruments – continued
reasonable, possible alternative assumptions would not change the fair value of the derivatives significantly above what is already covered
by the reserve related to fair value adjustment for model risk.
Shares, bonds and derivatives valued on the basis of non-observable input
Reconciliation from beginning to end of period
(DKK millions)
Fair value at 1 January
Value adjustment through profit or loss
Acquisitions
Sale and redemption
Transferred from quoted prices and observable input
Transferred to quoted prices and observable input
Shares
35,308
836
1,829
-1,777
-
-
2,458
-61
264
-15
1,200
-
Fair value end of period
36,196
3,846
30 June 2024
31 December 2023
Bonds
Derivatives
Shares
Bonds
Derivatives
12
-397
498
156
-
-65
203
48,292
3,369
142
3,152
-16,278
-
-
-150
161
-922
-
-
35,308
2,458
-1,084
1,102
-250
-125
295
74
12
The value adjustment through profit or loss is recognised under Net trading income or loss. The transfer of derivatives to the Observable
input category consists primarily of maturity reductions, implying that the yield curves have become observable.
The tables below shows financial instruments valued on the basis of non-observable input.
Financial instruments valued on the basis of non-observable input
Sensitivity (change in fair value)
Gains/losses for the period
(DKK millions)
30 June 2024
Unlisted shares
allocated to insurance contract policyholders
other
Illiquid bonds
Derivatives, net fair value
31 December 2023*
Unlisted shares
allocated to insurance contract policyholders
other
Illiquid bonds
Derivatives, net fair value
Carrying
amount
35,424
772
3,846
203
34,755
553
2,458
12
Increase
Decrease
Realised
Unrealised
-
77
58
-
-
55
56
-
-
77
58
-
-
55
56
-
903
74
-
-
522
302
2
-
-155
14
-61
-397
-522
-160
-152
1,102
* The table above has been restated to include Insurance liabilities as at 31 December 2023 which meet the definition of financial instruments.
For unlisted shares allocated to insurance contract policyholders, the policyholders assume most of the risk on the shares. Therefore,
changes in the fair value of those shares will only to a limited extent affect the Group’s net profit. The Group’s remaining portfolio of unlisted
shares consists primarily of banking-related investments and holdings in private equity funds. The sensitivity of the fair value measurement
to changes in the unobservable input disclosed in the table is calculated as a 10% increase or 10% decrease in fair value. Under current
market conditions, a 10% decrease in the fair value is considered to be below a possible alternative estimate of the fair value at the end of
the period. The unrealised adjustments in the six month period ended 30 June 2024 were attributable to various unlisted shares.
The estimated fair value of illiquid bonds depends significantly on the estimated credit spread. In the table, the sensitivity of the fair value
measurement to changes in non-observable input is calculated as a 50bps widening or narrowing of the credit spread.
A substantial number of derivatives valued on the basis of non-observable input are hedged by similar derivatives or are used for hedging
the credit risk on bonds also valued on the basis of non-observable input. Changing one or more of the non-observable inputs to reflect
49
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G14. Risk management notes
The consolidated financial statements for 2023 provide a detailed description of the Group’s risk management practices.
Lending
activities
Counterparty
credit risk
Trading and
investment
securities
Customer-
funded
investments
Total
201.8
154.5
497.4
273.6
910.2
980.3
74.5
522.8
91.0
80.0
224.0
214.2
16.5
201.8
55.6
-
-
910.2
744.0
-
-
91.0
80.0
224.0
214.2
-
-
98.9
278.0
-
-
236.3
-
-
-
-
-
-
-
-
-
219.4
273.6
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
74.5
522.8
-
-
-
-
16.5
613.8
4,240.8
2,520.8
613.2
493.1
Breakdown of credit exposure
(DKK billions)
30 June 2024
Balance sheet items
Demand deposits with central banks
Due from credit institutions and central banks
Trading portfolio assets
Investment securities
Loans at amortised cost
Loans at fair value
Assets under pooled schemes and investment contracts
Insurance assets
Assets held for sale
Off-balance-sheet items
Guarantees
Loan commitments shorter than 1 year
Loan commitments longer than 1 year
Other unutilised commitments
Total
50
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
G14 Risk management notes - continued
Credit exposure
Trading and
investment
Customer-
funded
Credit exposure from lending activities
Credit exposure from lending activities in the Group’s banking business includes loans, amounts due from credit institutions and central
banks, guarantees and irrevocable loan commitments. The exposure is measured net of expected credit losses and includes repo loans at
amortised cost. For reporting purposes, all collateral values are net of haircuts and capped at the exposure amount.
The Group’s definition of default for accounting aligns with the regulatory purposes. All exposures in stage 3 are considered default. This
includes all non-performing loans. A small amount of credit exposure in stage 3 can be found outside default. This is due to impairment
staging being updated monthly (after each month-end), whereas default is updated daily. For the same reason, some credit exposure in
default is outside stage 3. The stage 3 coverage ratio is 77% (31 December 2023: 75%).
For further details about the Group’s credit risk management and the use of information on expected credit losses for risk management
purposes, see Risk Management 2023.
Credit portfolio broken down by rating category and stages
The table below breaks down the credit exposure by rating categories and stages. Further information on classification of customers can
be found on page 181 in Annual report 2023.
Breakdown of credit exposure continued
(DKK billions)
31 December 2023*
Balance sheet items
Demand deposits with central banks
Due from credit institutions and central banks
Trading portfolio assets
Investment securities
Loans at amortised cost
Loans at fair value
Assets under pooled schemes and investment contracts
Insurance assets
Assets held for sale
Off-balance-sheet items
Guarantees
Loan commitments shorter than 1 year
Loan commitments longer than 1 year
Other unutilised commitments
Total
Total
252.7
114.8
548.2
283.9
918.6
928.2
70.9
496.0
110.4
75.9
197.0
220.3
16.7
Lending
activities
Counterparty
credit risk
252.7
21.8
-
-
918.6
753.3
-
-
110.4
75.9
197.0
220.3
-
-
93.0
351.7
-
-
175.0
-
-
-
-
-
-
-
4,233.8
2,550.1
619.7
securities
investments
-
-
196.5
283.9
-
-
-
-
-
-
-
-
-
-
-
-
-
-
70.9
496.0
-
-
-
-
0.1
480.5
16.6
583.6
* With effect from 1 January 2024, Non-core ceased to exist as a separate segment. Credit exposure as at 31 December 2023 previously reported under
Non-core has been reclassified, and comparatives have been restated to reflect this change.
In addition to credit exposure from lending activities, Danske Bank had made uncommitted loan offers and granted uncommitted lines of
credit of DKK 194 billion at 30 June 2024 (31 December 2023: DKK 232 billion). These items are included in the calculation of the total
risk exposure amount in accordance with the Capital Requirements Directive.
51
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Credit exposure – continued
30 June 2024
(DKK billions)
1
2
3
4
5
6
7
8
9
10
11 (default)
Total
PD level
Gross exposure
Expected credit loss
Net exposure
Net exposure, ex collateral
Upper
Lower
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
-
0.01
0.03
0.06
0.14
0.31
0.63
1.90
7.98
25.70
100.00
0.01
0.03
0.06
0.14
0.31
0.63
1.90
7.98
25.70
99.99
100.00
131.4
277.9
512.9
609.5
441.0
290.9
90.3
10.9
1.0
0.5
0.2
-
0.3
0.8
2.6
7.1
36.4
43.6
26.9
5.5
18.8
0.4
2,366.5
142.4
-
-
-
-
0.1
0.1
-
0.1
-
1.6
30.4
32.4
-
-
0.1
0.2
0.4
0.7
1.2
0.8
-
-
0.1
3.5
-
-
-
-
0.1
0.7
2.0
2.5
0.6
1.6
-
7.5
-
-
-
-
-
-
0.1
0.1
-
0.5
8.8
9.5
131.4
277.9
512.8
609.3
440.6
290.2
89.1
10.1
1.0
0.5
0.1
-
0.3
0.7
2.6
7.0
35.8
41.6
24.4
4.8
17.2
0.4
2,363.0
134.9
-
-
-
-
0.1
0.1
-
-
-
1.1
21.6
22.9
111.3
164.3
239.0
278.1
149.8
86.5
30.7
2.0
0.1
0.1
-
-
-
0.4
1.5
4.3
16.4
14.6
5.6
1.8
7.0
0.1
1,062.1
51.7
-
-
-
-
-
-
-
-
-
-
2.8
2.8
31 December 2023*
PD level
Gross exposure
Expected credit loss
Net exposure
Net exposure, ex collateral*
Lower
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
(DKK billions)
1
2
3
4
5
6
7
8
9
10
11 (default)
Total
Upper
-
0.01
0.03
0.06
0.14
0.31
0.63
1.90
7.98
25.70
100.00
0.01
0.03
0.06
0.14
0.31
0.63
1.90
7.98
25.70
99.99
100.00
127.8
288.1
537.9
607.8
434.8
290.0
92.3
0.1
0.3
0.7
1.9
8.1
36.9
47.3
-
-
-
-
0.1
0.1
0.1
-
-
0.1
0.2
0.4
0.7
1.2
-
-
-
-
-
0.6
1.9
12.2
28.1
0.4
0.9
2.8
1.0
0.6
0.6
4.8
14.8
1.5
2,393.3
144.2
-
1.3
30.7
32.7
-
-
-
1.0
1.0
-
-
-
-
-
-
-
-
-
-
0.5
8.6
127.8
288.1
537.8
607.6
434.5
289.3
91.1
11.3
1.0
0.6
0.6
0.1
0.3
0.6
1.9
8.0
36.3
45.3
25.2
3.8
-
-
-
-
0.1
0.1
0.1
0.4
-
13.8
0.8
1.5
22.1
108.9
178.3
263.2
274.9
136.5
87.2
27.9
1.7
0.2
0.2
0.4
-
-
0.4
0.5
5.5
18.7
17.7
6.3
1.0
3.7
0.2
-
-
-
-
-
-
-
0.2
-
0.5
2.2
3.0
3.6
7.5
9.1
2,389.7
136.7
23.6
1,079.4
54.1
* With effect from 1 January 2024, Non-core ceased to exist as a separate segment. Credit exposure as at 31 December 2023 previously reported under
Non-core has been reclassified, and comparatives have been restated to reflect this change.
52
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Credit exposure – continued
Credit portfolio broken down by industry (NACE) and stages
The table below breaks down credit exposure by industry. The industry segmentation is based on the classification principles of the Statistical
Classification of Economic Activities in the European Community (NACE) standard that has been adapted to the Group’s business risk ap-
proach used for the active management of the credit portfolio.
30 June 2024
(DKK billions)
Public institutions
Financials
Agriculture
Automotive
Capital goods
Commercial property*
Construction and building materials
Consumer goods
Hotels, restaurants and leisure
Metals and mining
Other commercials
Pharma and medical devices
Private housing co-ops and non-profit associations
Pulp, paper and chemicals
Retailing
Services
Shipping, oil and gas
Social services
Telecom and media
Transportation
Utilities and infrastructure
Personal customers
Total
Gross exposure
Expected credit loss
Net exposure
Net exposure, ex collateral
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
262.4
153.1
52.2
25.1
87.9
262.8
42.6
84.0
12.9
17.0
3.9
50.0
190.6
44.3
29.2
65.9
37.5
28.3
23.3
14.4
76.3
0.5
2.0
5.7
3.1
12.7
30.3
8.3
7.0
1.3
1.4
0.3
2.8
3.9
4.3
4.0
9.9
1.6
1.1
1.7
2.6
0.8
1.2
1.1
1.8
0.2
1.1
3.8
1.8
1.2
0.7
-
0.4
-
0.6
1.0
2.1
1.0
1.6
0.3
0.9
1.0
-
802.6
2,366.5
37.1
142.4
10.4
32.4
-
-
0.3
-
0.1
0.8
0.3
-
-
-
0.1
-
0.1
-
0.1
0.2
-
-
-
-
-
1.3
3.5
-
0.1
0.8
0.1
0.3
1.5
1.0
0.5
0.1
-
-
-
0.2
0.2
0.4
0.6
-
0.1
0.1
0.1
-
1.5
7.5
-
0.3
0.5
0.1
0.5
1.0
0.9
0.4
0.2
-
0.1
-
0.1
0.3
0.8
0.4
0.3
0.1
0.7
0.4
-
2.6
9.5
262.4
153.1
51.9
25.1
87.8
262.0
42.2
84.0
12.9
17.0
3.8
50.0
190.6
44.3
29.1
65.7
37.5
28.3
23.3
14.4
76.3
0.5
1.9
4.8
3.0
12.4
28.8
7.2
6.6
1.3
1.3
0.3
2.8
3.7
4.2
3.6
9.3
1.6
1.0
1.6
2.5
0.8
1.2
0.9
1.4
0.1
0.6
2.9
0.9
0.8
0.5
-
0.3
-
0.4
0.8
1.4
0.6
1.3
0.2
0.3
0.6
-
260.8
130.6
13.0
18.8
76.5
37.1
29.7
68.9
3.8
14.3
0.6
46.9
27.8
33.0
18.6
53.5
20.2
11.8
17.5
6.2
57.3
801.3
2,363.0
35.6
134.9
7.8
22.9
115.1
1,062.1
-
1.2
1.2
1.4
9.9
4.7
3.7
4.3
0.3
0.9
-
2.5
0.7
3.0
2.8
7.6
0.4
0.6
1.5
0.7
0.6
3.6
-
0.5
0.1
-
0.2
0.3
0.4
0.1
0.1
-
-
-
-
0.3
0.3
0.3
0.1
-
-
-
-
-
51.7
2.8
*As at 30 June 2024, DKK 142 billion of the net exposure in Commercial property is towards residential assets.
As at 30 June 2024, oil and gas exposures (within the Shipping, oil and gas industry) represent a gross exposure of DKK 18.4 billion (31 December 2023: DKK 18.1 billion) and expected credit losses of DKK 0.2 billion (31 December 2023: DKK 0.3 billion). Those exposures
represent the majority of the exposures in stage 3 within the Shipping, oil and gas industry at the end of June 2024.
53
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Credit exposure – continued
31 December 2023*
(DKK billions)
Public institutions
Financials
Agriculture
Automotive
Capital goods
Commercial property**
Construction and building materials
Consumer goods
Hotels, restaurants and leisure
Metals and mining
Other commercials
Pharma and medical devices
Private housing co-ops and non-profit associations
Pulp, paper and chemicals
Retailing
Services
Shipping, oil and gas
Social services
Telecom and media
Transportation
Utilities and infrastructure
Personal customers
Total
Gross exposure
Expected credit loss
Net exposure
Net exposure, ex collateral
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
-
0.1
-
0.1
-
0.1
0.3
0.7
0.6
298.6
150.0
54.8
24.9
82.7
258.0
42.8
67.5
12.7
14.6
11.6
44.1
191.1
40.7
27.7
63.4
36.3
29.5
23.7
15.6
84.0
1.0
3.4
4.6
2.5
13.3
32.4
6.5
8.3
1.8
1.2
0.3
2.9
4.5
3.7
5.2
7.6
1.9
1.3
0.8
2.1
1.3
0.3
0.4
2.2
0.3
1.2
4.7
2.1
1.3
0.7
-
0.3
-
0.6
0.9
1.9
1.0
2.4
0.3
1.7
0.4
-
-
0.1
0.8
0.3
0.1
-
-
0.1
-
0.1
-
0.1
0.2
-
-
-
-
-
0.1
0.3
1.8
1.0
0.4
0.1
-
-
-
0.1
0.5
0.9
0.9
0.5
0.2
-
0.1
-
298.6
149.9
54.5
24.9
82.6
257.3
42.5
67.4
12.7
14.6
11.5
44.0
0.3
0.2
191.1
0.1
0.3
0.3
0.1
0.1
0.1
0.1
-
1.6
0.2
0.7
0.4
0.4
0.1
0.7
0.1
-
40.7
27.6
63.2
36.3
29.4
23.7
15.6
84.0
1.0
0.3
295.9
3.3
3.9
2.4
13.0
30.6
5.6
7.8
1.8
1.2
0.3
2.9
4.2
3.6
4.9
7.3
1.9
1.2
0.7
2.0
1.3
0.2
131.7
1.7
0.1
0.7
3.8
1.2
0.9
0.5
13.1
19.9
74.3
28.8
30.3
53.5
3.0
-
12.6
0.2
-
0.5
0.7
1.2
0.6
2.0
0.2
0.9
0.3
-
7.9
40.6
22.6
29.4
17.6
51.3
20.4
13.0
18.4
7.2
62.2
-
2.7
0.9
1.1
10.9
4.7
2.8
5.6
0.5
0.9
0.1
2.5
1.0
2.6
3.8
5.9
0.6
0.7
0.6
0.7
1.2
-
0.2
-
-
0.3
0.4
0.5
0.2
0.1
-
-
-
0.1
0.3
0.5
0.3
-
-
-
-
-
-
819.0
37.7
10.2
1.4
2.5
817.5
36.1
7.7
125.5
4.2
2,393.3
144.2
32.7
3.6
7.5
9.1
2,389.7
136.7
23.6
1,079.4
54.1
3.0
* With effect from 1 January 2024, Non-core ceased to exist as a separate segment. Credit exposure as at 31 December 2023 previously reported under
Non-core has been reclassified, and comparatives under Lending activities have been restated to reflect this change. There is no change to total Credit expo-
sure as at 31 December 2023.
**As at 31 December 2023, DKK 139 billion of the net exposure in Commercial property is towards residential assets
.
54
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Credit exposure – continued
Collateral
The Group uses a number of measures to mitigate credit risk, including collateral, guarantees and covenants. The main method is obtain-
ing collateral. In Annual Report 2023, a table showing collateral by type (after haircut) is included. The mitigating effect from collateral at
the end of June 2024 can be found as the difference between the columns ‘Net exposure’ and ‘Net exposure, ex collateral’ and amounted
to DKK 1,404.2 billion at 30 June 2024 (31 December 2023: DKK 1,413.5 billion).
The table below breaks down credit exposure by business unit and underlying segment.
30 June 2024
(DKK billions)
Personal Customers
Personal Customers Denmark
Personal Customers Sweden
Personal Customers Finland
Personal Customers Norway
Global Private Banking
Personal Customers Other
Total Personal Customers
Business Customers
Asset Finance
Business Customers
Commercial Real Estate
Business Customers Other
Total Business Customers
Large Corporates & Institutions
Northern Ireland
Group Functions
Total
Gross exposure
Expected credit loss
Net exposure
Net exposure, ex collateral
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
430.3
100.1
75.6
110.8
71.5
-
788.2
50.6
307.2
312.5
0.4
670.6
616.1
100.6
191.0
18.4
2.9
5.7
4.1
3.2
-
34.3
10.5
36.7
23.8
-
71.0
33.2
3.7
0.1
2,366.5
142.4
6.0
0.5
2.0
0.5
0.8
-
9.8
2.2
10.6
1.2
-
14.0
6.6
2.0
-
32.4
0.9
0.1
0.1
-
-
-
1.2
0.1
1.1
0.4
-
1.7
0.4
0.3
-
3.5
1.0
0.2
0.2
0.1
0.1
-
1.5
0.3
3.3
0.9
-
4.5
1.5
0.1
-
7.5
1.4
0.1
0.6
0.1
0.2
-
2.4
0.8
4.1
0.3
-
5.1
1.5
0.5
-
9.5
429.4
100.0
75.5
110.7
71.5
-
787.1
50.5
306.1
312.0
0.4
668.9
615.7
100.3
191.0
17.4
2.7
5.6
4.0
3.1
-
32.8
10.2
33.5
22.9
-
66.6
31.8
3.6
0.1
4.7
0.4
1.4
0.4
0.5
-
7.4
1.5
6.6
0.9
-
8.9
5.1
1.5
-
57.6
28.5
4.4
17.3
13.2
-
121.0
18.2
101.2
47.1
0.4
166.8
532.9
52.9
188.6
2,363.0
134.9
22.9
1,062.1
1.4
0.4
0.3
0.5
0.7
-
3.3
2.1
13.0
3.8
-
18.9
29.0
0.5
0.1
51.7
-
-
-
-
-
-
-
-
0.4
0.1
-
0.5
2.0
0.2
-
2.8
55
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Credit exposure – continued
31 December 2023
(DKK billions)
Personal Customers*
Personal Customers Denmark
Personal Customers Sweden
Personal Customers Finland
Personal Customers Norway
Global Private Banking
Personal Customers Other
Total Personal Customers
Business Customers
Asset Finance
Business Customers
Commercial Real Esate
Business Customers Other
Total Business Customers
Large Corporates & Institutions
Northern Ireland
Group Functions**
Total
Gross exposure
Expected credit loss
Net exposure
Net exposure, ex collateral
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
423.0
17.7
424.0
18.6
101.8
76.9
125.9
76.5
-
2.9
5.6
4.3
3.1
-
6.2
0.3
1.0
0.1
1.9
0.2
0.5
0.7
-
805.0
34.6
9.6
52.7
309.6
308.0
0.4
9.4
36.8
24.9
-
1.4
10.4
2.3
0.1
670.6
71.1
14.2
595.9
89.4
232.3
33.8
4.7
0.1
6.9
1.9
-
0.9
0.2
0.2
0.1
0.1
-
1.6
0.5
3.0
1.1
-
1.1
0.1
-
1.3
0.1
101.7
0.6
76.7
0.1
125.8
0.2
76.4
-
-
0.5
3.7
0.3
-
52.6
308.5
307.6
0.4
1.8
595.5
0.4
89.1
232.3
-
9.1
4.7
4.5
669.0
-
-
-
1.3
0.1
1.1
0.4
-
1.6
0.4
0.3
-
2.7
5.4
4.2
3.0
-
8.8
33.8
23.8
-
66.4
32.7
4.6
0.1
4.9
0.3
1.3
0.4
0.5
-
49.4
32.1
4.2
30.1
16.2
-
0.9
6.7
2.0
0.1
19.5
93.3
44.8
0.4
1.8
0.4
0.2
0.7
1.0
-
4.1
1.6
13.8
3.9
-
-
-
-
-
-
-
-
-
0.6
0.1
-
9.7
158.0
19.3
0.6
5.1
1.5
-
511.5
48.1
229.7
29.8
0.8
-
2.1
0.2
-
2,393.3
144.2
32.7
3.6
7.5
2,389.7
136.7
23.6
1,079.4
54.1
3.0
2.4
803.7
33.0
7.3
132.1
* Personal Customers Sweden, Personal Customers Finland and Personal Customers Norway are new sub-segments in Personal Customers in 2024.
Comparatives have been reclassified. There is no change to total credit exposure for Personal Customers as at 31 December 2023.
** With effect from 1 January 2024, Non-core ceased to exist as a separate segment, and became a new sub-segment of Group Functions. Credit exposure
as at 31 December 2023 previously reported under Non-core has been reclassified to Group Functions.
56
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Credit exposure – continued
Exposures subject to forbearance measures
The Group adopts forbearance plans to assist customers in financial difficulty. Concessions granted to customers include interest-reduc-
tion schedules, interest-only schedules, temporary payment holidays, term extensions, cancellation of outstanding fees, waiver of cove-
nant enforcement and debt forgiveness. Forbearance plans must comply with the Group’s Credit Policy. They are used as an instrument to
retain long-term business relationships during economic downturns if there is a realistic possibility that the customer will be able to meet
its obligations again or are used for minimising losses in the event of default.
If it proves impossible to improve the customer’s financial situation by forbearance measures, the Group will consider whether to subject
the customer’s assets to a forced sale or whether the assets could be realised later at higher net proceeds. At the end of the first half of
2024, the Group had recognised properties taken over in Denmark at a carrying amount of DKK 17 million (2023: DKK 17 million), and
there were no properties taken over in other countries (2023: DKK 0 million). The properties are held for sale and included under Assets
held for sale in the balance sheet.
The Group applies the European Banking Authority’s (the EBA’s) definition of loans subject to forbearance measures. The EBA definition
states that a probation period of a minimum of two years must pass from the date when forborne exposures are considered to be perform-
ing again. Forbearance measures lead to changes in staging for impairment purposes, and impairments relating to forborne exposures are
handled according to the principles described in note G15 in Annual Report 2023.
Exposures subject to forbearance measures
(DKK millions)
Stage 1
Stage 2
Stage 3
Total
30 June 2024
31 December
2023
211
6,606
7,563
297
5,279
7,023
14,380
12,598
57
Danske Bank / Interim report first half 2024
Stage 1
Stage 2
Stage 3*
Total
(DKK millions)
Personal
Customers
Business
Customers
Large
Corporates &
Institutions
Northern
Ireland
Group
Functions*
Allowance
account Total
ECL allowance account as at 1 January 2023
5,427
10,235
3,050
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Credit exposure – continued
Allowance account broken down by segment
(DKK millions)
ECL allowance account as at 1 January 2023
Transferred to stage 1 during the period
Transferred to stage 2 during the period
Transferred to stage 3 during the period
ECL on new assets
ECL on assets derecognised
3,273
1,548
-179
-12
332
-234
8,082
-1,485
368
-297
926
-784
Impact of net remeasurement of ECL (incl. changes in models)
-1,289
1,321
Write-offs debited to the allowance account
Foreign exchange adjustments
Other changes
ECL allowance account as at 30 June 2023
ECL allowance account as at 1 January 2024
Transferred to stage 1 during the period
Transferred to stage 2 during the period
Transferred to stage 3 during the period
ECL on new assets
ECL on assets derecognised
Impact of net remeasurement of ECL (incl. changes in models)
Write-offs debited to the allowance account
Foreign exchange adjustments
Other changes
-
-37
-
3,403
3,592
782
-204
-16
-192
-301
-140
-9
-12
1
-
-167
-6
7,957
7,486
-728
435
-263
1,366
-1,005
281
-
-55
-1
8,290
19,645
-63
-189
309
303
-481
136
-180
-95
10
8,041
9,062
-55
-231
279
-
-
-
1,562
-1,499
169
-180
-299
4
19,401
20,140
-
-
-
-509
-240
-192
-1
-2
-69
-2
ECL allowance account as at 30 June 2024
3,501
7,516
9,521
20,539
ECL on new assets
ECL on assets derecognised
Impact on remeasurement of ECL (incl. change in
models)
Write-offs debited to allowance account
Foreign currency translation
Other changes
ECL allowance account as at 30 June 2023
ECL allowance account as at 1 January 2024
ECL on new assets
ECL on assets derecognised
Impact on remeasurement of ECL (incl. change in
models)
1,411
2,584
Write-offs debited to allowance account
-1,815
Foreign currency translation
-98
Other changes
321
-381
190
-54
-45
-14
5,443
5,306
284
-446
12
-67
-17
1
942
-1,054
390
-88
-199
19
10,246
10,705
1,777
-1,280
236
-100
-72
-2
283
-34
-278
-32
-83
-
2,907
3,308
454
-59
-350
-28
-2
-
863
19
-22
-112
-7
30
1
771
794
64
-28
9
-6
22
-
854
70
-4
-8
-21
-
-2
-2
33
27
5
-2
-5
-
-
-1
23
19,645
1,562
-1,499
169
-180
-299
4
19,401
20,140
2,584
-1,815
-98
-201
-69
-2
20,539
-201
ECL allowance account as at 30 June 2024
5,074
11,264
3,324
* With effect from 1 January 2024, Non-core ceased to exist as a separate segment. The allowance account in 2023 previously reported under Non-core
has
been reclassified, and comparatives have been restated to reflect this change.
* With effect from 1 January 2024, Non-core ceased to exist as a separate segment. The allowance account in 2023 previously reported under Non-core
has been reclassified.
The method used for calculating expected credit losses is described in detail in note G15 of the Annual Report 2023.
58
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Credit exposure – continued
Forward-looking information
The incorporation of forward-looking information reflects the expectations of the Group’s senior management and involves both macroeco-
nomic scenarios (base case, upside and downside scenarios), including an assessment of the probability for each scenario, and post-
model adjustments. The purpose of using multiple scenarios is to model the non-linear impact of assumptions about macroeconomic fac-
tors on the expected credit losses. Post-model adjustments are used to capture specific risks which are not fully covered by the macroeco-
nomic scenarios, as well as the process related risk, which could lead to an underestimation of the expected credit losses.
Macroeconomic scenarios
The forward-looking information is based on a three-year forecast period converging to steady state in year seven. That is, after the fore-
cast period, the macroeconomic scenarios revert slowly towards a steady state.
The applied scenarios that drive the expected credit loss calculation in the second quarter of 2024 have been updated with the latest mac-
roeconomic data. Compared to the end of 2023, the base case and upside scenarios have been revised to reflect expectations of lower
inflation, improved house prices and decreasing interest rates.
The base case is an extension of the Group’s official view of the Nordic economies (the Nordic Outlook report). At 30 June 2024, the base
case scenario reflects a soft landing with economic growth moving toward normalised levels. Inflation is coming down quickly but a growth
pickup across Europe means that inflation pressures will remain an issue and impact how fast interest rates will be cut. The Nordic prop-
erty markets have generally recovered, and modest price increases are expected.
The upside scenario represents a slightly better outlook than the base case scenario across the macroeconomic parameters. In this sce-
nario, it is predominantly the European businesses’ profit margins and not prices that absorb the adjustment to higher wage costs and
inflation returns more sustainably to target than in the base case. Central banks no longer hesitate to cut interest rates and all Nordic cen-
tral banks loosen policies a bit quicker than in the base case. This boosts consumer sentiment, increasing private consumption and
strengthening the housing market.
The downside scenario is a severe recession with high interest rates scenario (reflecting a stagflation scenario) applied in the Group’s
ICAAP processes, which is similar in nature to regulatory stress tests. The severe recession scenario reflects negative growth, increasing
interest rates, and falling property prices for a longer period. The use of the downside scenario was introduced to better capture the ele-
vated risk from high interest rates and high inflation. A trigger of the economic setback could be continued macroeconomic worsening and
challenges linked to high business costs while inflation remain elevated. This adversely impacts the labour market, results in higher and
more persistent unemployment. This would lead to a severe slowdown in the economies in which the Group is represented.
The scenario weighting is unchanged from 2023. The weight on the base case scenario is 60% (60% in 2023), the upside scenario is
weighted 20% (20% in 2023), and the downside scenario is weighted 20% (20% in 2023).
The main macroeconomic parameters in the base case, upside and downside scenario entering into the ECL calculation for the forecast
horizon across the Group’s Nordic markets are included below.
59
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Credit exposure – continued
Denmark
30 June 2024
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
Sweden
30 June 2024
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
Norway
30 June 2024
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
Finland
30 June 2024
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
60
Danske Bank / Interim report first half 2024
2024
2.1
2.9
1.8
4.0
3.4
2024
1.5
8.4
1.5
1.0
3.4
2024
0.9
2.1
3.4
3.0
4.0
2024
-0.4
8.2
1.8
-
3.5
Base-case
2025
2.0
3.1
2.0
2.5
2.6
Base-case
2025
2.0
8.1
1.3
5.0
2.2
Base-case
2025
2.0
2.4
2.0
5.0
3.1
Base-case
2025
1.8
7.9
1.8
3.5
2.7
2026
1.7
3.2
1.8
2.3
2.0
2026
1.8
7.8
1.5
5.0
2.1
2026
2.5
2.5
2.2
3.0
2.4
2026
1.5
7.2
1.5
2.0
2.0
2024
-3.4
6.3
4.0
-19.7
5.4
2024
-3.5
9.4
4.9
-22.0
5.7
2024
-2.7
5.5
4.5
-19.0
6.3
2024
-2.4
9.9
4.0
-14.2
5.1
Downside
2025
-2.0
7.5
3.0
-11.0
6.4
Downside
2025
-3.4
10.3
3.9
-13.0
5.7
Downside
2025
-1.1
6.4
3.0
-13.0
6.3
Downside
2025
-2.0
10.9
3.0
-7.0
5.1
2026
2024
-
7.9
2.0
-6.0
3.9
2026
-1.0
10.7
2.9
-7.0
3.7
2.4
2.8
1.4
4.0
3.0
2024
1.6
8.4
1.1
1.0
3.0
2026
2024
0.6
6.5
2.0
-7.0
4.3
2026
-0.3
10.9
2.0
-5.0
3.1
1.1
2.1
3.0
3.0
3.7
2024
-0.2
8.2
1.3
-
3.1
Upside
2025
2.5
2.8
1.9
4.5
2.0
Upside
2025
2.4
8.0
1.1
7.0
2.1
Upside
2025
2.3
2.3
1.9
6.0
2.5
Upside
2025
2.1
7.8
1.6
4.5
2.0
2026
1.7
2.9
1.8
4.3
2.0
2026
1.9
7.6
1.5
7.0
2.1
2026
2.7
2.3
2.2
5.0
2.4
2026
1.6
7.1
1.5
4.0
2.0
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Credit exposure – continued
At 31 December 2023, the following base case, downside and upside scenarios were used:
Denmark
31 December 2023
Base-case
2025
2024
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
Sweden
31 December 2023
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
Norway
31 December 2023
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
Finland
31 December 2023
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
61
Danske Bank / Interim report first half 2024
1.0
3.1
2.0
1.5
3.1
2024
1.2
8.2
1.9
-1.0
3.4
2024
1.1
2.3
3.0
-1.0
3.7
2024
0.3
-0.1
7.8
1.9
0.5
1.6
3.3
1.9
2.0
2.3
Base-case
2025
1.8
8.0
1.3
4.0
2.3
Base-case
2025
2.1
2.5
2.0
5.0
2.9
Base-case
2025
1.9
2.0
7.2
1.5
1.2
2026
1.6
3.4
1.8
2.1
2.0
2026
2.4
7.9
1.6
5.0
2.0
2026
1.5
2.5
2.0
4.0
2.5
2026
1.3
1.5
6.5
2.0
1.3
2024
-3.4
6.3
4.0
-19.7
5.4
2024
-3.5
9.4
4.9
-22.0
5.7
2024
-2.7
5.5
4.5
-19.0
6.3
2024
-2.4
9.9
4.0
-14.2
5.1
Downside
2025
-2.0
7.5
3.0
-11.0
6.4
Downside
2025
-3.4
10.3
3.9
-13.0
5.7
Downside
2025
-1.1
6.4
3.0
-13.0
6.3
Downside
2025
-2.0
10.9
3.0
-7.0
5.1
2026
2024
-
7.9
2.0
-6.0
3.9
2026
-1.0
10.7
2.9
-7.0
3.7
2.5
2.7
2.4
3.5
4.3
2024
2.6
7.9
2.0
1.0
4.6
2026
2024
0.6
6.5
2.0
-7.0
4.3
2026
-0.3
10.9
2.0
-5.0
3.1
2.5
2.0
3.2
-
5.0
2024
1.3
7.6
2.2
3.0
4.3
Upside
2025
1.8
2.6
2.5
3.0
3.5
Upside
2025
2.1
7.5
1.6
5.0
3.6
Upside
2025
2.4
2.0
2.3
6.0
4.0
Upside
2025
2.2
6.9
1.8
4.0
3.5
2026
0.4
3.2
1.4
2.1
2.5
2026
1.3
7.7
1.5
5.0
2.6
2026
0.4
2.3
1.8
4.0
3.0
2026
0.4
6.4
1.7
2.0
2.5
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Credit exposure – continued
The base case scenario enters with a probability of 60% (31 December 2023: 60%), the upside scenario with a probability of 20% (31
December 2023: 20%) and the downside scenario with a probability of 20% (31 December 2023: 20%). On the basis of these
assessments, the allowance account as at 30 June 2024 amounted to DKK 20.5 billion (31 December 2023: 20.1 billion). If the base
case scenario was assigned a probability of 100%, the allowance account would decrease DKK 2.0 billion (31 December 2023: 2.0
billion). Compared to the base case scenario, the allowance account would increase DKK 10.1 billion (31 December 2023: 10.2 billion), if
the downside scenario was assigned a probability of 100%. The increase reflects primarily the transfer of exposures from stage 1 to stage
2 and increased expected credit losses within stage 2. If instead the upside scenario was assigned a probability of 100%, the allowance
account would decrease by DKK 0.3 billion (31 December 2023: 0.2 billion) compared to the base case scenario. It should be noted that
the expected credit losses in the individual scenarios (i.e. without the weighting) do not represent forecasts of expected credit losses (ECL).
Post-model adjustments
Management applies judgement when determining the need for post-model adjustments. At 30 June 2024, the post-model adjustments
amounted to DKK 6.7 billion (31 December 2023: 6.7 billion). The post-model adjustments primarily relate to the following types of risks:
•
•
•
specific macroeconomic risks on certain industries not fully captured by the expected credit loss model, for instance the agriculture
industry. For such industries, supplementary calculations are made to ensure sufficient impairment coverage. This also includes post-
model adjustments relating to effects from climate risk or the macroeconomic uncertainty.
non-linear downside risk, for instance on the property market in Copenhagen and other high growth areas for which the macroeco-
nomic forecasts used in the models are based on the property market as a whole.
portfolios where the credit risk assessment process has identified an underestimation of the expected credit losses.
Following the significant impact on the expected credit losses from post-model adjustments, the table below provides more information
about the adjustments.
Post-model adjustments by type and mostly impacted industries
(DKK billions)
Coverage of individual industries and types
Agriculture
Commercial Property
Construction and building materials
Personal customers (including other retail exposures)
Others*
Total
30 June 2024 31 December 2023
1.0
1.9
1.0
1.4
1.4
6.7
0.8
1.9
1.0
1.6
1.4
6.7
*No individual industry included in Others exceeds DKK 0.3 billion at 30 June 2024 (2023: DKK 0.2 billion).
The total balance of post-model adjustments is unchanged compared to the end of 2023. The post-model adjustment related to personal
customers is decreased due to the improved macroeconomic outlook. At the same time, the existing post-model adjustment related to
climate risks for agriculture is increased due to enhanced analysis related to potential CO2 taxation models for agriculture in Denmark.
The Group continues to have significant post-model adjustments related to the current macroeconomic uncertainties characterised by the
risk of slowing growth environment, labour shortages, higher for longer interest rates and elevated prices giving rise to a new set of chal-
lenges that affect economic and business activity. The post-model adjustments cut across industries that are sensitive to price rises on
energy, e.g. agriculture and metals, and industries vulnerable to business cycles, higher interest rates and refinancing risks, which have
been assessed for idiosyncratic risks to ensure a prudent coverage of expected credit loss in the Group’s portfolios.
62
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Counterparty credit risk and credit exposure from trading and investment securities
Exposure to counterparty credit risk and credit exposure from trading and investment securities
Bond portfolio
(DKK billions)
Counterparty credit risk
Derivatives with positive fair value
Reverse transactions and other loans at fair value*
Credit exposure from other trading and investment securities
Bonds
Shares
Other unutilised commitments**
Total
30 June
31 December
2024
2023
(DKK millions)
Central and
local
Quasi-
Danish
government
bonds
government
bonds
mortgage
bonds
Swedish
covered bonds
Other covered
bonds
278.0
335.2
441.4
51.6
-
351.7
267.9
461.0
19.4
0.1
30 June 2024
Held-for-trading (FVPL)
Managed at fair value (FVPL)
Held to collect and sell (FVOCI)
Held to collect (AMC)
107,917
1,848
21,829
42,486
3,245
161
2,886
8,366
18,989
16,818
55,026
89,194
24,347
1,361
2,673
3,038
6,100
229
24,342
812
Total
174,079
14,658
180,027
31,419
31,484
1,106.3
1,100.1
31 December 2023
Corporate
bonds
Total
7,631
168,229
-
1,946
150
9,727
20,417
108,702
144,047
441,395
*Reverse transactions and other loans at fair value included as counterparty credit risk are loans at the trading units of Large Corporates & Institutions.
These loans consist of reverse transactions of DKK 334.5 billion (31 December 2023: DKK 267.4 billion), of which DKK 98.2 billion relates to credit institu-
tions and central banks (31 December 2023: DKK 92.4 billion), and other primarily short-term loans of DKK 0.7 billion (31 December 2023: DKK 0.6 bil-
lion), of which DKK 0.7 billion (31 December 2023: DKK 0.6 billion) relates to credit institutions and central banks.
**Other unutilised commitments comprise private equity investment commitments and other obligations.
Held-for-trading (FVPL)
Managed at fair value (FVPL)
Held to collect and sell (FVOCI)
Held to collect (AMC)
117,986
1,845
23,669
47,892
1,179
291
2,905
8,551
29,084
17,069
49,470
92,699
20,862
1,307
4,776
5,093
Total
191,392
12,926
188,321
32,038
3,272
286
25,077
1,013
29,648
5,179
177,563
-
1,330
150
6,659
20,798
107,226
155,398
460,984
At 30 June 2024, the Group had an additional bond portfolio, including bond-based unit trust certificates, worth DKK 210,694 million (31
December 2023: DKK 214,073 million) recognised as assets under insurance contracts and thus not included in the table above. The
section on insurance risk in Annual Report 2023 provides more information. For bonds classified as hold-to-collect, amortised cost ex-
ceeded fair value as at 30 June 2024 and 31 December 2023, see note G13 for more information.
Derivatives with positive fair value
(DKK millions)
Derivatives with positive fair value before netting
Netting (under accounting rules)
Carrying amount
Netting (under capital adequacy rules)
Net current exposure
Collateral
Net amount
Derivatives with positive fair value after netting for accounting purposes:
Interest rate contracts
Currency contracts
Other contracts
Total
63
Danske Bank / Interim report first half 2024
30 June
31 December
2024
2023
792,855
892,840
514,833
541,118
278,022
351,722
197,690
262,273
80,332
71,532
8,800
89,450
80,713
8,736
216,278
240,621
59,511
110,275
2,233
826
278,022
351,722
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Counterparty credit risk and credit exposure from trading and investment securities
continued
Bond portfolio broken down by geographical area
Central and
local
Danish
Quasi-
government
bonds
Swedish
Other covered
bonds
(DKK millions)
30 June 2024
Denmark
Sweden
UK
Norway
USA
Spain
France
Luxembourg
Finland
Ireland
Italy
Portugal
Austria
Netherlands
Germany
Belgium
Other
Total
government
bonds
27,098
37,410
10,830
5,454
16,051
900
9,911
-
8,971
873
3,427
6
4,096
3,532
44,429
1,091
-
mortgage
bonds
180,027
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
covered bonds
-
31,419
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
302
-
3,252
-
19
5,089
3,202
-
-
-
-
2
-
1,986
807
Corporate
bonds
1,142
2,467
1,130
3,119
20
-
27
143
664
64
3
-
162
431
202
-
153
9,727
-
-
3,964
25,470
-
1
349
-
1,234
-
-
-
-
45
216
1
203
208,266
Denmark
71,297
Sweden
16,227
UK
34,044
Norway
19,323
901
USA
Spain
10,305
France
5,231
Luxembourg
14,071
Finland
937
Ireland
3,429
Italy
6
Portugal
4,257
4,010
Austria
Netherlands
44,848
Germany
3,078
1,163
441,395
Belgium
Other
Total
Total
(DKK millions)
31 December 2023
government
bonds
government
bonds
mortgage
bonds
Swedish
Other covered
bonds
Central and
local
Quasi-
Danish
28,754
61,267
11,141
6,049
15,529
1,243
4,703
-
10,224
550
1,413
3
4,513
3,349
42,152
503
-
-
-
291
-
3,274
-
19
5,205
2,954
-
-
-
-
1
-
442
740
188,321
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
covered bonds
-
32,038
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Corporate
bonds
870
1,362
1,009
1,358
7
-
116
123
909
94
5
-
113
510
96
-
87
Total
217,945
94,667
15,959
31,309
18,810
1,244
5,075
5,328
15,176
643
1,418
3
4,691
3,877
42,465
946
1,429
-
-
3,518
23,902
-
1
237
-
1,089
-
-
-
66
17
216
1
602
174,079
14,658
180,027
31,419
31,484
191,392
12,926
188,321
32,038
29,648
6,659
460,984
64
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Counterparty credit risk and credit exposure from trading and investment securities
continued
Bond portfolio broken down by external ratings
(DKK millions)
30 June 2024
AAA
AA+
AA
AA-
A+
A
A-
BBB+
BBB
BBB-
BB+
BB
BB-
Central and
local govern-
ment bonds
Quasi-
government
bonds
Danish
mortgage
bonds
Swedish
covered
bonds
Other
covered bonds
Corporate
bonds
Total
(DKK millions)
31 December 2023
Central and
local govern-
ment bonds
Quasi-
government
bonds
Danish
mortgage
bonds
Swedish
covered bonds
Other covered
bonds
Corporate
bonds
Total
113,515
12,589
179,944
31,399
30,694
2,676
370,817
27,109
11,815
16,996
-
1,986
-
63
20
-
-
-
-
83
715
-
6
-
-
185
-
-
2,151
-
-
1,589
-
-
-
-
-
-
-
-
-
-
-
-
21
-
-
-
-
-
-
-
-
-
-
-
19
768
-
-
2
-
-
-
-
-
-
-
-
94
1,681
119
172
1,193
214
1,004
1,508
512
141
271
42
98
29,208
14,348
17,135
172
1,994
220
1,189
3,659
2,100
141
271
42
98
AAA
AA+
AA
AA-
A+
A
A-
BBB+
BBB
BBB-
BB+
BB
BB-
Sub. "investment-grade" or unrated
137,601
12,461
187,903
32,017
28,925
1,623
400,530
27,061
8,556
15,515
-
1,132
3
111
377
1,036
-
-
-
-
442
-
23
-
-
-
-
-
-
-
-
-
-
-
-
418
-
-
-
-
-
-
-
-
-
21
-
-
-
-
-
-
-
-
-
-
-
28
692
-
-
4
-
-
-
-
-
-
-
-
2
965
117
266
984
196
505
987
596
97
187
36
97
27,533
10,234
15,654
266
2,538
199
617
1,364
1,632
97
187
36
97
Sub. "investment-grade" or unrated
-
-
-
Total
174,079
14,658
180,027
31,419
31,484
9,727
441,395
Total
191,392
12,926
188,321
32,038
29,648
6,659
460,984
65
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Financial statements – Danske Bank A/S
The financial statements of the Parent Company, Danske Bank A/S, are prepared in accordance with the Danish Financial Business Act
and the Danish FSA’s Executive Order No. 516 of 17 May 2024.
With effect from 1 January 2024, Danske Bank A/S has implemented changes in accounting policies in relation to Markets and Group
Treasury, operating leases and margins on customer transactions in foreign currencies. Note G2(a) provides information on these
changes. The changes in accounting policies have been applied retrospectively, and have no impact on the Net profit, Balance sheet or
Equity for 2023. Except for these changes, Danske Bank A/S has not changed its material accounting policies from those applied in the
Annual Report 2023.
The accounting policies applied are identical to the Group’s IFRS accounting principles, see note G1, with the following exception:
• Domicile property (except right-of-use assets) is measured (revalued) at its estimated fair value through Other comprehensive income.
The estimated fair value of domicile property is determined in accordance with the Danish FSA’s Executive Order on Financial Reports for
Credit Institutions and Investment Companies, etc.
Holdings in subsidiaries are measured on the basis of the equity method. Net profit from these undertakings is recognised under Income
from associates and group undertakings.
The format of the Parent Company’s financial statements is not identical to the format of the consolidated financial statements in accord-
ance with IFRS.
The table below shows the differences in net profit and shareholders’ equity between the IFRS consolidated financial statements and the
Parent Company’s financial statements presented in accordance with Danish FSA rules.
(DKK millions)
Danske Bank Group based on IFRS
Domicile properties
Tax effect
Net profit
Net profit
Equity
Equity
2024
2023
30 June
2024
31 December
2023
11,468
10,178
178,055
175,739
-1
-
-1
1
210
-27
211
-27
Parent company statement based on Danish FSA rules
11,467
10,177
178,238
175,923
66
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Income statement – Danske Bank A/S
Statement of comprehensive income – Danske Bank A/S
First half
First half
2024
2023*
(DKK millions)
33,433
20,623
25,128
13,777
Net profit
Other comprehensive income
12,810
11,352
Items that will not be reclassified to profit or loss
323
7,435
885
292
Remeasurement of defined benefit pension plans
6,740
Tax*
944
Items that will not be reclassified to profit or loss
19,683
17,439
Items that are or may be reclassified subsequently to profit or loss
902
324
1,658
308
Translation of units outside Denmark
Hedging of units outside Denmark
10,428
10,457
Unrealised value adjustments of bonds at fair value (OCI)
817
-
-284
4,249
718
693
152
4,219
Realised value adjustments of bonds at fair value (OCI)
Tax*
Items that are or may be reclassified subsequently to profit or loss
Total other comprehensive income
14,197
11,605
Total comprehensive income
2,730
1,428
11,467
10,177
* A positive amount is a tax expense, and a negative amount is a tax income
First half
First half
2024
2023
11,467
10,177
42
3
39
-813
315
-227
40
-186
-499
-460
11,007
-115
-16
-99
-4,533
2,260
-60
-15
-541
-1,808
-1,907
8,271
Note
(DKK millions)
Interest income
Interest expense
Net interest income
Dividends from shares etc.
Fee and commission income
Fees and commissions paid
Net interest and fee income
P1
Value adjustments
Other operating income
Staff costs and administrative expenses
Amortisation, depreciation and impairment charges
P2
P3
Other operating expenses
Loan impairment charges etc.
Income from associates and group undertakings
Profit before tax
Tax
Net profit
* Comparative information has been restated, as described in note G2(a).
67
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Balance sheet – Danske Bank A/S
Note
(DKK millions)
Assets
30 June 31 December
30 June
2024
2023
2023
Note
(DKK millions)
Liabilities and equity
Amounts due
Cash in hand and demand deposits with central banks
164,092
221,178
198,945
Due from credit institutions and central banks
Loans and other amounts due at fair value
Loans and other amounts due at amortised costs
P3
P3
Bonds at fair value
Bonds at amortised cost
Shares etc.
Holdings in associates
Holdings in group undertakings
Assets under pooled schemes
Intangible assets
Land and buildings
Domicile property
Other tangible assets
Current tax assets
Deferred tax assets
Assets held for sale
Other assets
Prepayments
Total assets
68
Danske Bank / Interim report first half 2024
180,161
153,470
132,744
Due to credit institutions and central banks
236,337
174,963
178,807
Deposits and other amounts due
722,718
726,193
732,761
Deposits under pooled schemes
279,841
286,339
288,349
Issued bonds at fair value
92,226
51,619
581
89,737
48,938
6,063
3,954
3,954
6,242
7,118
1,507
102,011
100,363
P4
Issued bonds at amortised cost
19,392
612
87,868
47,877
6,047
4,106
4,106
6,080
3,296
1,418
9,282
564
86,310
47,060
6,078
2,403
2,403
5,475
4,062
1,365
Current tax liabilities
Liabilities in disposal groups held for sale
Other liabilities
Deferred income
Total amounts due
Provisions for liabilities
Provisions and pensions and similar obligations
Provisions for deferred tax
Provisions for losses on guarantees
Other provisions for liabilities
91,088
110,530
120,457
Total provisions for liabilities
303,500
378,001
407,671
Subordinated debt
3,240
2,045
1,965
Equity
2,288,962
2,331,425
2,324,659
Share capital
Accumulated value adjustments
Equity method reserve
Retained earnings
Proposed dividends
Total equity
Total liabilities and equity
30 June
31 December
30 June
2024
2023
2023
200,723
155,382
186,344
1,084,803
1,135,204 1,094,826
49,831
2,523
48,140
47,579
7,718
10,017
245,352
206,278
204,819
663
989
1,414
55,383
56,476
32,949
429,272
501,884
537,965
1,989
1,501
1,153
2,070,539
2,113,572 2,117,066
146
1,102
3,736
1,763
6,748
164
1,115
3,466
2,011
6,756
172
315
2,878
550
3,916
33,438
35,174
34,842
8,622
-3,621
31,300
8,622
-2,935
8,622
-6,487
29,333
25,077
141,936
134,436
141,623
-
6,466
-
178,238
175,923
168,835
2,288,962
2,331,425 2,324,659
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Statement of capital – Danske Bank A/S
Changes in equity
(DKK millions)
Total equity as at 1 January 2024
Net profit
Other comprehensive income
Remeasurement of defined benefit pension plans
Translation of units outside Denmark
Hedging of units outside Denmark
Unrealised value adjustments
Realised value adjustments
Tax
Total other comprehensive income
Total comprehensive income
Transactions with owners
Dividends paid
Acquisition of own shares
Sale of own shares
Accumu-
lated value
adjust-
ments*
Share
capital
Equity
method
reserve
Retained
earnings
Proposed
dividends
Total
(DKK millions)
8,622
-2,935
29,333
134,436
6,466
175,923
Total equity as at 1 January 2023
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-813
315
-227
40
-
-685
-685
-
-
-
1,967
9,500
-
-
-
-
-
-
-
42
-
-
-
-
183
225
1,967
9,725
-
-
-
-
-
-
-
-
-
11,467
Effect of changes in accounting policy**
Total equity as at 1 January 2023
Net profit
Other comprehensive income
Remeasurement of defined benefit pension plans
Translation of units outside Denmark
Hedging of units outside Denmark
Unrealised value adjustments
Realised value adjustments
42
-813
315
-227
40
183
-460
11,007
Tax
Total other comprehensive income
39
-6,466
-6,427
Total comprehensive income
-
-
-
-16,802
14,537
-
-
-
-16,802
Transactions with owners
14,537
Acquisition of own shares
178,238
Sale of own shares
Accumu-
lated value
adjust-
ments*
Share
capital
Equity
method
reserve
Retained
earnings
Proposed
dividends
8,622
-4,138
26,838
129,185
-
-
-
-40
8,622
-4,138
26,838
129,145
-
-
-
-
-
-
-
-
-
-
-
-
-
-4,533
2,260
-60
-15
-
-2,348
-2,348
-1,761
11,938
-
-
-
-
-
-
-
-115
-
-
-
-
556
442
-1,761
12,380
-
-
-
-
-13,390
13,489
Total
160,506
-40
160,466
10,177
-115
-4,533
2,260
-60
-15
556
-1,907
8,271
-13,390
13,489
168,835
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total equity as at 30 June 2023
8,622
-6,487
25,077
141,623
*Accumulated value adjustments include foreign currency translation reserve, reserve for bonds at fair value through other comprehensive income (FVOCI)
and valuation reserve.
**See note G2(a) of Annual Report 2023 for details of changes in accounting policies in 2023.
Total equity as at 30 June 2024
8,622
-3,621
31,300
141,936
*Accumulated value adjustments includes foreign currency translation reserve, reserve for bonds at fair value through other comprehensive income (FVOCI)
and valuation reserve.
69
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Notes – Danske Bank A/S
P1. Value adjustments
(DKK millions)
Loans at fair value
Bonds
Shares etc.
Currency
Derivatives
Other liabilities
Total
* Comparative information has been restated, as described in note G2(a).
30 June
30 June
2024
2023*
721
618
233
549
-833
-384
902
-727
536
185
377
2.105
-818
1.658
P2. Other operating expenses
There were no other operating expenses for the six months ended 30 June 2024. Other operating expenses for the six months ended 30
June 2023. Notes G4 and G8 contain additional information.
70
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
P3. Impairment charges for loans and guarantees
Due to credit institutions and central banks
Loans and other amounts due at AMC
Loan commitments and guarantees
Stage 1
Stage 2
Stage 3
16
10
-
-
-
-1
-6
-
-
-8
11
6
-2
-
-
1
-
-2
-
-
3
7
28
-10
-
-1
1
-1
-12
-
-
-
4
5
2
-
-
-
-
-3
-
-
-3
-
2
-
-
1
-
-1
-
-
-
-
2
4
-
-
-
-
-
-2
-2
-
-
-
Stage 1
1,548
Stage 2
5,117
Stage 3
5,546
691
-89
-3
201
-125
-676
-
-39
-20
1,489
1,499
483
-115
-11
-188
-158
-60
-
-15
1
-662
194
-227
771
-555
964
-
-145
-3
5,455
5,230
-457
250
-214
980
-798
-38
-
-43
35
-30
-106
230
270
-315
-1
-144
-110
17
5,357
5,780
-26
-134
225
871
-345
-54
-152
-41
245
1,436
4,944
6,368
Stage 1
716
219
-73
-
78
-38
-240
-
-7
-
654
646
114
-44
-1
4
-53
-94
-
-3
3
572
Stage 2
1,176
-206
105
-32
110
-111
229
-
-22
-
1,248
1,267
-108
101
-11
196
-99
331
-
-13
2
1,666
Stage 3
1,081
-12
-31
33
4
-73
-27
-
2
-
976
1,553
-6
-57
13
299
-79
-253
-
28
-
1,498
Total
15,230
-
-
-
1,436
-1,219
229
-144
-322
-13
15,197
15,991
-
-
-
2,165
-1,533
-174
-154
-86
285
16,492
(DKK millions)
ECL allowance account as at 1 January 2023
Transferred to stage 1 during the period
Transferred to stage 2 during the period
Transferred to stage 3 during the period
ECL on new assets
ECL on assets derecognised
Impact of net remeasurement of ECL (incl. changes in
models)
Write offs debited to the allowance account
Foreign exchange adjustments
Other changes
ECL allowance account as at 30 June 2023
ECL allowance account as at 1 January 2024
Transferred to stage 1 during the period
Transferred to stage 2 during the period
Transferred to stage 3 during the period
ECL on new assets
ECL on assets derecognised
Impact of net remeasurement of ECL (incl. changes in
models)
Write offs debited to the allowance account
Foreign exchange adjustments
Other changes
ECL allowance account as at 30 June 2024
71
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
P4. Issued bonds at amortised cost
Notes – Danske Bank A/S
Issued bonds at amortised cost includes non-preferred senior bonds of DKK 94,300 million (31 December 2023: DKK 93,194 million) of
a total of DKK 245,352 million (31 December 2023: DKK 206,278 million).
Ratios
Total capital ratio (%)
Tier 1 capital ratio (%)
Return on equity before tax (%)
Return on equity after tax (%)
Income/cost ratio (%)
Interest rate risk (%)
Foreign exchange position (%)
Foreign exchange risk (%)
Loans plus impairment charges as % of deposits
Liquidity coverage ratio (90 days) (%)
Sum of large exposures as % of CET1 capital
Impairment ratio (%)
Growth in loans (%)
Loans as % of equity
Return on assets (%)
Earnings per share
Book value per share (DKK)
Dividend per share (DKK)
Share price end of period/earnings per share (DKK)
Share price end of period/book value per share (DKK)
* Comparative information has been restated, as described in note G2(a)
First half
Full year
First half
2024
2023*
2023*
26.0
22.8
8.0
6.5
26.8
23.9
14.3
12.6
26.0
23.1
7.0
6.2
229.5
201.8
196.6
0.5
2.2
-
85.6
149.8
102.0
-0.1
-0.7
5.4
0.5
13.4
208.4
-
15.5
1.00
0.6
1.8
-
77.2
150.5
93.6
-
-
2.7
-
80.9
129.4
107.7
-
-20.5
-19.9
5.1
0.9
24.8
204.8
14.5
7.3
0.88
5.4
0.4
11.9
196.6
-
14.0
0.84
Danske Bank A/S
Bernstorffsgade 40
DK-1577 Copenhagen V
Tel. +45 33 44 00 00
CVR No. 611262 28-København
danskebank.com
72
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Statement by the
management
The Board of Directors and the Executive Leadership Team (the man-
agement) have today reviewed and adopted the Interim report – first
half 2024 of the Danske Bank Group.
The consolidated interim financial statements have been presented in
accordance with IAS 34, Interim Financial Reporting, as adopted by the
EU and the Parent Company’s interim financial statements have been
prepared in accordance with the Danish Financial Business Act and the
Executive Order on Financial Reports for Credit Institutions and Invest-
ment Companies, etc. Furthermore, the interim report has been pre-
pared in accordance with legal requirements, including the disclosure
requirements for interim reports of listed financial institutions in Den-
mark.
In our opinion, the consolidated interim financial statements and the
Parent Company´s financial statements give a true and fair view of the
Group’s and the Parent Company’s assets, liabilities, shareholders´
equity and financial position at 30 June 2024 and of the results of the
Group’s and the Parent Company’s operations and the consolidated
cash flows for the period starting on 1 January 2024 and ending on 30
June 2024.
Moreover, in our opinion, the management’s report includes a fair view
of developments in the Group’s and the Parent Company’s operations
and financial position and describes the significant risks and uncer-
tainty factors that may affect the Group and the Parent Company.
73
Danske Bank / Interim report first half 2024
Copenhagen, 19 July 2024
Executive Leadership Team
Carsten Egeriis
CEO
Joachim Alpen
Christian Bornfeld
Magnus Agustsson
Karsten Breum
Stephan Engels
Johanna Norberg
Dorthe Tolborg
Frans Woelders
Martin Blessing
Chairman
Board of Directors
Martin Nørkjær Larsen
Vice Chairman
Lars-Erik Brenøe
Jacob Dahl
Raija-Leena Hankonen-Nybom
Lieve Mostrey
Allan Polack
Helle Valentin
Kirsten Ebbe Brich
Elected by the employees
Aleksandras Cicasovas
Elected by the employees
Bente Bang
Elected by the employees
Louise Aggerstrøm Hansen
Elected by the employees
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Independent auditor’s review report
To the shareholders of Danske Bank A/S
Independent Auditor’s review report on the consolidated and parent interim financial statements
We have reviewed the consolidated and parent interim financial statements of Danske Bank A/S for the financial period 1 January to 30
June 2024, pp. 30-72 which comprise the income statement, statement of comprehensive income, balance sheet, statement of capital
and notes, for the Group and Parent Company, respectively, as well as the consolidated cash flow statement including a summary of mate-
rial accounting policies.
Management’s responsibility for the consolidated and parent interim financial statements
Management is responsible for the preparation of the consolidated interim financial statements in accordance with IAS 34, Interim Finan-
cial Reporting, as adopted by the EU, and Danish disclosure requirements for listed financial companies, and for the preparation of the Par-
ent Company’s interim financial statements in accordance with the Danish Financial Business Act and Danish disclosure requirements for
listed financial companies, and for such internal control as Management determines is necessary to enable the preparation of the consoli-
dated and parent interim financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility
Our responsibility is to express a conclusion on the consolidated and parent interim financial statements. We conducted our review in ac-
cordance with the International Standard on Engagements to Review Interim Financial Information Performed by the Independent Auditor
of the Entity and additional requirements under Danish audit regulation. This requires us to conclude whether anything has come to our
attention that causes us to believe that the consolidated and parent interim financial statements, taken as a whole, have not been pre-
pared, in all material respects, in accordance with the applicable financial reporting framework. This also requires us to comply with rele-
vant ethical requirements.
A review of financial statements in accordance with the International Standard on Engagements to Review Interim Financial Information
Performed by the Independent Auditor of the Entity is a limited assurance engagement. The Auditor performs procedures primarily con-
sisting of inquiries of management and others within the entity, as appropriate, and applying analytical procedures, and evaluates the evi-
dence obtained.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International
Standards on Auditing. Accordingly, we do not express an audit opinion on the interim financial statements.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial statements for the
financial period 1 January to 30 June 2024 have not been prepared, in all material respects, in accordance with IAS 34 Interim Financial
Reporting as adopted by the EU and Danish disclosure requirements for listed financial companies, and that the Parent Company’s Interim
Financial Statements have not been prepared, in all material respects, in accordance with the Danish Financial Business Act and Danish
disclosure requirements for listed financial entities.
74
Danske Bank / Interim report first half 2024
Statement on the management's report
Management is responsible for the Management's report.
Our conclusion on the interim financial statements does not cover the Management's report, and we do not express any form of assurance
conclusion thereon.
In connection with our review of the interim financial statements, our responsibility is to read the Management's report and, in doing so,
consider whether the Management's report is materially inconsistent with the interim financial statements or our knowledge obtained in
the review or otherwise appears to be materially misstated.
Moreover, it is our responsibility to consider whether the Management's report provides the information required under the Danish Finan-
cial Statements Act. Based on the work we have performed, we conclude that the Management's report is in accordance with the interim
financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not iden-
tify any material misstatement of the Management's report.
Copenhagen, 19 July 2024
Deloitte
Statsautoriseret Revisionspartnerselskab
Business Registration No. 33 96 35 56
Kasper Bruhn Udam
State-Authorised
Public Accountant
Identification No
(MNE) mne29421
Jakob Lindberg
State-Authorised
Public Accountant
Identification No
(MNE) mne40824
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Supplementary information
Financial calendar
31 October 2024
07 February 2025
20 March 2025
02 May 2025
18 July 2025
31 October 2025
Contacts
Claus Ingar Jensen
Head of Investor Relations
Links
Danske Bank
Denmark
Finland
Sweden
Norway
Northern Ireland
Realkredit Danmark
Danske Capital
Danica Pension
Interim report – first nine months 2024
Annual Report 2024
Annual general meeting
Interim report – first quarter 2025
Interim report – first half 2025
Interim report – first nine months 2025
clauj@danskebank.dk
danskebank.com
danskebank.dk
danskebank.fi
danskebank.se
danskebank.no
danskebank.co.uk
rd.dk
danskecapital.com
danicapension.dk
Danske Bank’s financial statements are available online at danskebank.com/Reports.
75
Danske Bank / Interim report first half 2024
Financial highlights
Executive summary
Strategy
Sustainability
Financial review
Business units
Financial statements
Danske Bank A/S
Bernstorffsgade 40
DK-1577 Copenhagen V
Tel. +45 33 44 00 00
CVR No. 611262 28-København
danskebank.com
76
Danske Bank / Interim report first half 2024