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Danske Bank Group
Interim report –
first quarter
2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Contents
Management’s report
Financial statements
Statements
Financial highlights - Danske Bank Group
Executive summary
Financial review
Personal Customers
Business Customers
Large Corporates & Institutions
Danica
Northern Ireland
Group Functions
Definition of alternative performance measures
3
4
5
12
14
16
19
21
23
25
Income statement
Statement of comprehensive income
Balance sheet
Statement of capital
Cash flow statement
Notes
27
27
28
29
31
32
Statement by the management
Supplementary information
63
64
2
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Financial highlights - Danske Bank Group
Income statement
(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
Tax
Net profit
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)
Q1
2025
9,020
3,658
882
201
170
13,931
6,291
72
7,641
50
7,591
1,834
5,757
-
6.9
13.3
1.3
45.2
22.9
18.4
225.1
203.8
Q1
2024
9,142
3,376
769
492
176
13,955
6,337
246
7,618
101
7,517
1,888
5,629
-
6.6
12.9
1.3
45.4
23.0
18.5
206.6
202.5
Index
25/24
99
108
115
41
97
100
99
29
100
50
101
97
102
Q4
2024
9,244
4,509
559
-20
277
14,568
6,690
224
7,879
-107
7,986
1,990
5,995
21.2
7.2
13.6
1.3
45.9
22.4
17.8
203.7
210.7
Index
Q1/Q4
98
81
158
-
61
96
94
32
97
-
95
92
96
Balance sheet (end of period)
Full year
2024
(DKK millions)
36,697
Due from credit institutions and central banks
14,912
Repo loans
2,668
1,387
Loans
Trading portfolio assets
741
Investment securities
56,405
25,736
Insurance assets
Other assets
906
Total assets
Q1
2025
233,630
360,367
Q1
2024*
247,998
326,300
1,709,470
1,631,760
513,889
283,793
530,864
126,844
442,104
276,156
514,238
226,112
3,758,856
3,664,668
30,669
Due to credit institutions and central banks
83,560
64,537
-543
Repo deposits
31,212
Deposits
7,583
Bonds issued by Realkredit Danmark
23,629
Other issued bonds
Trading portfolio liabilities
Insurance liabilities
Other liabilities
Subordinated debt
Shareholders' equity
Total liabilities and equity
244,627
230,255
1,099,373
1,022,562
747,551
358,515
369,106
509,341
137,813
39,540
745,981
310,846
380,862
500,719
195,816
39,674
169,430
173,417
3,758,856
3,664,668
* Comparative information for Q1 2024 has been restated as described in note G2(b).
28.7
27.9
13.4
1.3
45.6
22.4
17.8
203.7
210.7
Index
25/24
94
110
105
116
103
103
56
103
129
106
108
100
115
97
102
70
100
98
103
Q4
2024
182,113
384,049
1,674,680
531,831
269,118
548,912
125,339
3,716,042
84,454
209,057
1,094,635
744,495
334,751
357,507
529,793
144,866
40,798
175,687
Index
Q1/Q4
128
94
102
97
105
97
101
101
99
117
100
100
107
103
96
95
97
96
Full year
2024
182,113
384,049
1,674,680
531,831
269,118
548,912
125,339
3,716,042
84,454
209,057
1,094,635
744,495
334,751
357,507
529,793
144,866
40,798
175,687
3,716,042
101
3,716,042
Full-time-equivalent staff (end of period)
20,046
20,094
100
19,916
101
19,916
* Total dividend for 2024 of DKK 28.70 per share comprises DKK 7.50 per share that was paid in connection with the interim report for the first
half of 2024, the special dividend of DKK 6.50 per share paid in December 2024 following completion of the divestment of the personal
customer business in Norway as well as a dividend of DKK 9.35 per share for the second half of 2024 and extraordinary dividend of DKK 5.35
per share that was paid out on 25 March 2025.
3
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Executive summary
Danske Bank has had a satisfactory start to 2025 as we
delivered solid results, generating a net profit of DKK 5.8 billion
and a return on equity of 13.3% in the first quarter of 2025. This
result is in line with our expectations and was driven by a steady
development in core income lines and a stable cost develop-
ment. In addition, supported by favourable macroeconomic
conditions, credit quality remained strong with a low level of
credit losses in the first quarter of DKK 50 million.
In the first quarter of 2025, the macroeconomic environment
affecting Danske Bank continued to improve, including the
outlook for growth, inflation and employment, which is robust
across our home markets. This is especially the case in Denmark,
where GDP growth was 3.6% in 2024, and according to our latest
Nordic Outlook, we expect moderately higher growth in 2025,
driven not only by the pharmaceutical sector, but also by
increased activity in the broader economy.
Despite this relatively positive macroeconomic development and
outlook, the degree of uncertainty increased towards the end of
the quarter, especially regarding the potential impact of US-
imposed tariffs. In part due to this uncertainty, consumer
confidence is lower, leading to increased savings rates and
modest credit demand. Irrespective of which macroeconomic
scenario that materialises, with our well-diversified credit
portfolio, prudent management buffers and strong balance
sheet, Danske Bank has a resilient platform for weathering the
uncertainty that lies ahead and supporting our customers. In this
environment, our focus at Danske Bank remains on helping our
customers manage their finances in the best way possible. We
continue to leverage our expertise and advanced risk
management solutions to act as a strategic partner for our
customers across segments.
Moreover, we continued to execute on our Forward ’28 strategy
and to deliver on our financial targets for 2026. We see good
progress towards our targets and have invested further in
technology to improve our leading customer offerings.
4
Danske Bank / Interim report – first quarter 2025
Capital and funding
Danske Bank’s underlying business is strong, our asset and
liability management is prudent, and our capital and liquidity
positions continue to be solid, with significant buffers well above
regulatory requirements. At the end of March 2025, our liquidity
coverage ratio (LCR) stood at 168% (31 December 2024: 167%),
with an LCR reserve of DKK 605 billion (31 December 2024:
DKK 560 billion), and our net stable funding ratio stood at 125%.
Share buy-back programme
At the end of the first quarter of 2025, Danske Bank had bought
back around 1.5 million shares for a total purchase amount of
DKK 355 million (see Company announcement no. 16 2025) of
the planned DKK 5.0 billion share buy-back programme.
Financials
Danske Bank delivered a net profit of DKK 5,757 million in the
first quarter of 2025, up 2% from the same period last year. Good
customer activity combined with low loan impairment charges
supported the financial result for the period.
Net fee income increased 8% from the level in the same period
last year, as continually strong customer activity combined with
our focused strategy had a positive effect on most types of fee
income. In addition, favourable financial market conditions
relative to the same period last year also contributed to the
increase.
Net trading income increased to DKK 882 million. The first
quarter of 2025 registered high customer activity in Fixed
Income.
Net income from insurance business decreased 59% relative to
the level in the first quarter of 2024. The decrease was due
primarily to the adverse effect of a strengthening of provisions
of DKK 220 million related to legacy life insurance products in
run-off, partly offset by an adjustment of accrued interest
income.
Operating expenses decreased 1% relative to the level in the first
quarter of 2024 and are on track to end in line with our full-year
guidance. The decrease was caused primarily by the
discontinuation of payments to the Danish Resolution Fund and
lower depreciation and amortisation costs.
Loan impairment charges reflect overall stable credit quality,
despite the uncertain macroeconomic landscape, and were low
in the first quarter of 2025, amounting to DKK 50 million.
We continue to apply significant post-model adjustments related
to the elevated geopolitical and macroeconomic risks and
remain watchful of any possible credit deterioration.
Changes in the Executive Leadership Team
After dedicating almost five years to Danske Bank and a total of
36 years to an active business career, Stephan Engels, Chief
Financial Officer, retired from executive leadership roles. Cecile
Hillary took up the position as Chief Financial Officer on 1 March
2025.
Annual General Meeting 2025
The annual general meeting of Danske Bank for the financial
year 2024 was held on 20 March 2025. Please refer to Company
announcement no. 13 2025.
Outlook for 2025
Total income is expected to be slightly lower in 2025 than in
2024, driven by lower net interest income from expected lower
market rates. Core banking income will continue to benefit from
strong fee income and our continued efforts to drive the
commercial momentum and growth in line with our financial
targets for 2026. Income from trading and insurance activities
will be subject to financial market conditions.
We expect operating expenses in 2025 to be up to DKK 26 billion,
reflecting our continued focus on cost management, and in line
with our financial targets for 2026.
Loan impairment charges are expected to be around DKK 1
billion as a result of continued strong credit quality.
We expect net profit to be in the range of DKK 21–23 billion.
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Financial review
quarter of 2024 was affected by negative market value
adjustments.
became fully funded in 2024, as well as lower depreciation and
amortisation costs.
Q1 2025 vs Q1 2024
Net profit increased to DKK 5,757 million (Q1 2024: DKK 5,629
million) as a result of increases in net fee income and net trading
income and lower operating expenses, although the effect was
partly offset by lower net interest income and lower net income
from insurance business. Good customer activity and low loan
impairment charges supported the financial result for the first
quarter of 2025.
Income
Net interest income decreased to DKK 9,020 million (Q1 2024:
DKK 9,142 million). The decrease was driven primarily by the sale
of the personal customer business in Norway and a decrease in
deposit margins due to lower market rates.
Net fee income increased to DKK 3,658 million (Q1 2024:
DKK 3,376 million). The increase was driven by higher everyday
banking fees and repricing actions in relation to our
subscription-based service model. Additionally, investment fees
and fees from assets under management increased due to the
favourable conditions on the financial markets.
Net trading income increased to DKK 882 million (Q1 2024:
DKK 769 million). Income from customer activity was fairly
stable, while income from Group Treasury improved as the first
Net profit
DKK 5,757 million
for the first quarter of 2025
5
Danske Bank / Interim report – first quarter 2025
Net income from insurance business decreased to DKK 201
million (Q1 2024: DKK 492 million). The net financial result
increased, due partly to an adjustment of accrued interest
income. This was, however, offset by a significant decrease in
the insurance service result, which was adversely affected by a
strengthening of provisions of DKK 220 million related to legacy
life insurance products in run-off.
Other income was stable at DKK 170 million (Q1 2024: DKK 176
million). Other income was affected by lower income from the
sale of used assets in our leasing company, although the effect
quarter on quarter was offset by lower negative valuations of
holdings in associates.
Operating expenses
Operating expenses decreased slightly and amounted to
DKK 6,291 million (Q1 2024: DKK 6,337 million). As expected, the
development was impacted by higher digitisation investments
made under our Forward ’28 strategy, higher bonus payments
and staff costs impacted by wage inflation. The increases
mentioned above were, however, fully offset by the
discontinuation of payments to the Resolution Fund, which
The Resolution fund, bank tax etc. item stood at DKK 72 million
(Q1 2024: DKK 246 million).
Loan impairment charges
Loan impairments were low in the first quarter of 2025,
amounting to a net charge of DKK 50 million (Q1 2024: net
charge of DKK 101 million).
The impairment level reflected the overall stable credit quality,
despite the uncertain macroeconomic landscape. We continue
to apply significant post-model adjustments related to the
elevated geopolitical and macroeconomic risks and remain
watchful of any possible credit deterioration. The total balance of
post-model adjustments is unchanged from the end of 2024.
The post-model adjustment covering geopolitical tensions has
increased in response to heightened geopolitical and tariff risks.
Meanwhile, the post-model adjustment related to commercial
real estate has decreased due to improved market conditions
and lower interest rates.
Personal Customers saw limited impairment charges, contrary
to the first quarter of 2024, when there was a net reversal.
Loan impairment charges
(DKK millions)
Personal Customers
Business Customers
Large Corporates & Institutions
Northern Ireland
Group Functions
Total
Q1 2025
Q1 2024
Charges
% of net credit
exposure*
Charges
% of net credit
exposure*
117
-449
420
-49
10
50
0.07
-0.27
0.45
-0.30
-0.62
0.01
-256
709
-376
25
-
101
-0.13
0.43
-0.42
0.17
0.04
0.02
* Defined as net credit exposure from lending activities, excluding exposure related to credit institutions and central banks and loan
commitments.
Q1 2025 vs Q4 2024
Net profit decreased to DKK 5,757 million (Q4 2024:
DKK 5,995 million). A decrease in net fee income and lower
net interest income due to a negative day effect and the sale
of the personal customer business in Norway were partly
offset by a decrease in operating expenses.
• Net interest income decreased to DKK 9,020 million (Q4
2024: DKK 9,244 million), due primarily to a negative day
effect and the sale of the personal customer business in
Norway.
• Net fee income decreased to DKK 3,658 million (Q4 2024:
DKK 4,509 million) following the strong performance fees
from Asset Management in the fourth quarter of 2024.
• Net trading income increased to DKK 882 million (Q4 2024:
DKK 559 million), driven by higher income from secondary
market trading activities.
• Net income from insurance business increased to DKK 201
million (Q4 2024: DKK -20 million) due to an increase in the
insurance service result and the net financial result. The
net financial result increased, due partly to an adjustment
of accrued interest income. The insurance service result
increased on the basis of lower provisions related to the
health and accident business, with the effect being partly
offset by the provision in the first quarter related to legacy
life insurance products in run-off.
• Operating expenses decreased to DKK 6,291 million (Q4
2024: DKK 6,690 million), due mainly to our strict cost
management and the discontinuation of payments to the
Resolution Fund, as the fund became fully funded in 2024.
• Loan impairments amounted to a net charge of DKK 50
million (Q4 2024: net reversal of DKK 107 million). Both
quarters were characterised by stable credit quality.
• Tax amounted to DKK 1,834 million (Q4 2024: DKK 1,990
million), corresponding to an effective tax rate of 24.2% (Q4
2024: 24.9%). The tax item saw a positive effect from an
adjustment of taxes paid in prior years.
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Underlying credit quality remained stable. Charges for the first
quarter of 2025 were affected by rating migration.
Business Customers saw reversals in the first quarter of 2025,
driven by reversals related to individual customers, as well as a
reduced share of post-model adjustments for Commercial
Property.
Large Corporates & Institutions made net impairment charges,
as opposed to the first quarter of 2024, when there were net
reversals. The charges were driven by individual customers as
well as an increased allocation of post-model adjustments.
The macroeconomic scenarios have been updated and continue
to reflect a trend towards normalisation. However, the down-side
scenario continues to be a severe recession scenario with
inflation and high interest rates. The scenario weights were
unchanged from the end of 2024 and were as follows:
The base-case scenario has a probability of 60% (2024: 60%), the
upside scenario has a probability of 20% (2024: 20%) and the
downside scenario has a probability of 20% (2024: 20%).
Tax
The tax expense of DKK 1,834 million (Q1 2024: DKK 1,888
million) corresponded to an effective tax rate of 24.2% (Q1 2024:
25.1%) and saw a positive effect from an adjustment of taxes
paid in prior years.
Lending
Lending stood at DKK 1,709 billion (31 December 2024:
DKK 1,675 billion). Mortgage lending at nominal value at
Realkredit Danmark amounted to DKK 796 billion (end-2024:
DKK 795 billion).
Norway and Sweden and the appreciation of their currencies.
The currency impact on bank lending volumes in the first quarter
was DKK 7.9 billion relative to the level at the end of 2024.
Mortgage volumes increased 1% from the level at the end of
2024.
At Large Corporates & Institutions, we have seen an increase in
lending volumes of 6% since the end of 2024, driven by an
increase of 4% in General Banking, primarily among corporate
customers in Sweden.
In Denmark, new gross lending, excluding repo loans, amounted
to DKK 37.7 billion. Lending to personal customers accounted for
DKK 8.0 billion of this amount.
Deposits
Deposits were stable and amounted to DKK 1,099 billion at the
end of March 2025 (end-2024: DKK 1,095 billion). The small
increase was driven mainly by personal customers in Global
Private Banking and the positive impact of the appreciation of
the Swedish krona.
Personal Customers saw a good inflow of deposit volumes,
which increased 1% from the end of 2024. The increase was
driven primarily by Global Private Banking and the appreciation
of currencies, primarily the Swedish krona, of DKK 2 billion.
At Business Customers, deposit volumes remained stable
relative to the level at the end of 2024. There was a positive
currency effect of DKK 4.2 billion in the first quarter.
At Large Corporates & Institutions, deposit volumes increased
slightly in General Banking, due to an increase in fixed-term
deposits. Total deposits in Large Corporates & Institutions
decreased 1%.
At Personal Customers, total lending was on par with the level at
end-2024. In Denmark, bank lending increased and was driven
partly by home finance products, such as Danske Bolig Fri that
achieved an increase in the lending volume of 6%. In addition,
lending saw a positive effect from currency exchange of DKK 5.2
billion.
Credit exposure
Credit exposure from lending activities increased to DKK 2,483
billion (end-2024: DKK 2,390 billion). The increase in exposure
was caused by higher deposits with central banks as well as an
increase in the Public institutions exposure.
Lending at Business Customers was up 2% from the level at the
end of 2024. The increase was driven partly by our activities in
6
Danske Bank / Interim report – first quarter 2025
Risk Management 2024, 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 quarter of 2025 for all
business units, and we remain vigilant for any possible
deterioration related to the uncertainty mentioned in the loan
impairment charges section above.
Total gross stage 3 credit exposure was stable at DKK 32.3 billion
(end-2024: DKK 32.5 billion), corresponding to 1.3% of total gross
exposure. Stage 3 exposure was concentrated on personal
customers, Commercial Property, services and retailing, which
combined accounted for 57% of total gross stage 3 exposure.
The allowance account amounted to 1.10% (end-2024: 1.11%) of
credit exposure.
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
31 March 2025
31 December 2024
32,277
9,560
22,717
19,206
73
1.3%
32,518
9,058
23,460
19,679
71
1.3%
*The stage 3 coverage ratio is calculated as allowance account stage 3 exposures relative to gross stage 3 net of collateral (after haircuts).
Allowance account by business units
(DKK millions)
Personal Customers
Business Customers
Large Corporates & Institutions
Northern Ireland
Group Functions
Total
*Relating to lending activities
31 March 2025
31 December 2024
Accumulated
impairment
charges
% of credit
exposure*
Accumulated
impairment
charges
% of credit
exposure*
4,716
10,586
4,132
726
33
20,192
0.70
1.52
1.03
1.09
-0.44
1.10
4,674
10,752
3,666
785
22
19,901
0.70
1.57
0.97
1.21
-0.34
1.11
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Interest rate risk in the banking book
Danske Bank is exposed to interest rate risk in its banking book,
primarily because it holds non-maturity deposits on its balance
sheet. The structural mismatch between assets that reprice in
the short term and liabilities that reprice in the long term is
managed using fixed income securities and, going forward,
derivative instruments. Previously, these derivatives were
traded only to mitigate the risks associated with wholesale
funding activities. In 2024, Group Treasury initiated plans to
broaden the use of derivatives in a hedge accounting format to
enhance the Group’s management of its interest rate risk with
implementation expected to begin in the second half of 2025.
The bond and derivative portfolios are designed to be counter-
cyclical, aiming to stabilise the earnings stream and the
economic value of equity. The hedges are structured so that only
a portion matures at any given time, resulting in a granular
reinvestment profile. Consequently, the average yields of
maturing securities represent a mix of various durations,
effectively addressing the structural interest rate risk
mismatches that arise from offering conventional banking
products across different markets.
As part of managing its interest rate risk in the banking book, the
Group holds high-quality liquid bonds that are included in the
calculation of the Group’s liquidity coverage ratio (LCR). To
ensure aligned accounting treatment across the banking book,
these bonds are held at amortised cost. The carrying amount
and fair value of the Group’s hold-to-collect bond instruments
can be seen in note G12.
Funding and liquidity
In the first quarter of 2025, the funding markets remained strong
despite increased volatility and a tense geopolitical situation.
During the quarter, the Group issued covered bonds of DKK 6.0
billion, preferred senior debt of DKK 5.6 billion, non-preferred
senior debt of DKK 5.2 billion, tier 2 capital of DKK 1.0 billion and
additional tier 1 capital of DKK 3.6 billion, thus bringing total
long-term wholesale funding to DKK 21.4 billion.
All issues were well received by the market.
7
Danske Bank / Interim report – first quarter 2025
Our strategy is to be a regular issuer in the EUR benchmark
format and in the domestic USD market for preferred senior and
non-preferred 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. Benchmark
issues are expected to be supplemented by private placements
of bonds.
From time to time, we will make transactions in GBP, JPY, CHF
and other currencies when market conditions allow. Issuance
plans for subordinated 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 issues
of subordinated debt may cover part of our funding need. Note
G7 provides more information about bond issues in the first
quarter of 2025.
Danske Bank’s liquidity position remained robust. At 31 March
2025, our LCR stood at 168% (31 December 2024: 167%), with an
LCR reserve of DKK 605 billion (31 December 2024: DKK 560
billion), and our net stable funding ratio was 125%.
At 31 March 2025, the total nominal value of outstanding long-
term funding, excluding debt issued by Realkredit Danmark, was
DKK 340 billion (31 December 2024: DKK 333 billion).
Capital ratios and requirements
At the end of March 2025, the Group’s total capital ratio was
22.9%, (31 December 2024: 22.4%) and its CET1 capital ratio was
18.4% (31 December 2024: 17.8%). The movement in the capital
ratios in the first quarter of 2025 was driven primarily by realised
net profit after reserved dividend and a decrease in the total REA.
The total capital ratio was further affected by net redemptions of
additional tier 1 capital and tier 2 capital.
Danske Bank’s capital management policies are based on the
Internal Capital Adequacy Assessment Process (ICAAP). In this
process, Danske Bank determines its solvency need ratio. The
solvency need ratio consists of the 8% minimum capital
requirement under Pillar I and an individual capital add-on under
Pillar II.
At the end of March 2025, the Group’s solvency need ratio was
11.1% and thus saw a minor decrease of 0.1 percentage points
from the level at the end of 2024.
A combined buffer requirement (CBR) applies to financial
institutions in addition to the solvency need ratio. At the end of
March 2025, the Group’s CBR was 8.2%, with a slight increase of
0.1 percentage points from the level at the end of 2024.
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
addition to the MREL. In the annual MREL decision from the
Danish FSA, the (backward-looking) MREL was set at 27.5% of the
total REA adjusted for Realkredit Danmark.
At the end of March 2025, the point-in-time requirement
including the CBR was equivalent to DKK 240 billion, or 36.7% of
the total REA adjusted for Realkredit Danmark. Taking the
deduction of capital and debt buffer requirements for Realkredit
Danmark into account, MREL-eligible liabilities amounted to
DKK 280 billion. In addition, an MREL of 6% of the leverage ratio
exposure (LRE) is in place. The LRE-based requirement equalled
23.9% of the total REA adjusted for Realkredit Danmark, making
the REA-based requirement the binding constraint.
During the first quarter of 2025, the total REA decreased by
approximately DKK 10 billion, due mainly to a decline in the REA
for credit risk, which was partially offset by increases in the REAs
for market risk and operational risk.
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 March 2025, the subordination requirement was
equivalent to DKK 199 billion. The backward-looking
subordination requirement, as set by the Danish FSA, was 29.5%
of the total REA adjusted for Realkredit Danmark. MREL-eligible
subordinated liabilities stood at DKK 235 billion.
Capital ratios and requirements
(% of the total REA)
Capital ratios
CET 1 capital ratio
Total capital ratio
Capital requirements (incl. buffers)
CET 1 requirement
- 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
31 March 2025
18.4
22.9
14.6
2.1
2.5
0.7
3.0
11.1
19.4
3.8
3.5
* 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 March 2025.
New regulation
The CRR3, the EU implementation of Basel IV, was applicable
from 1 January 2025. The date on which the FRTB (Fundamental
Review of the Trading Book) rules take effect has, however, been
postponed and is now 1 January 2026. In addition, the fully
phased-in CRR3 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 in
2033 at the earliest, when the transitional arrangements are set
to expire.
On the basis of draft legislation in Denmark, the Group expects
the CRR3 output floor to apply at the consolidated level only for
the Danish part of the Group, implying that Realkredit Danmark
will not be subject to the floor at the solo level. Further, on the
basis of the same draft legislation, the Group also expects
Denmark to apply the transitional arrangement for exposures
secured by residential real estate property with regards to the
output floor. For legislative reasons, both arrangements are
expected to take effect from 1 July 2025.
Financial highlights
Executive summary
Financial review
Business units
Financial statements
MREL requirement and eligible funds
(first quarter of 2025)
DKK billion (% of total REA)
280
(42.8%)
45
(6.9%)
85
(12.9%)
150
(23.0%)
240
(36.7%)
MREL including CBR
MREL funds
Non-preferred senior debt > 1 year
Preferred senior debt > 1 year
CET1, AT1, T2
MREL including CBR
Leverage ratio
At the end of March 2025, the Group’s leverage ratio was 4.8%.
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
position.
Danske Bank’s dividend policy for 2025 remains unchanged,
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 31 March 2025, Danske Bank had bought back around 1.5
million shares for a total purchase amount of DKK 355 million
(figures at trade date) of the planned DKK 5.0 billion share buy-
back programme.
On 20 March 2025, the annual general meeting of
Danske Bank A/S adopted the proposal to reduce Danske Bank’s
share capital by DKK 271,894,960 nominally by cancelling
27,189,496 shares from Danske Bank’s holding of own shares.
The reduction of the share capital has been carried out and
registered at 24 April 2025.
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 March 2025, Danske Bank was in compliance with
all threshold values. A separate report is available at
danskebank.com/ir.
Note: The requirement and eligible funds are adjusted for Realkredit
Danmark’s capital and debt buffer requirements.
Realkredit Danmark also complies with all threshold values.
8
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit ratings
The credit rating agencies did not change their ratings of Danske
Bank in the first quarter of 2025.
On 9 April 2025 Moody’s assigned its ‘Aaa’ rating to the covered
bonds issued by Danske Hypotek AB.
Environmental, Social and Governance (ESG)
ratings
The ESG rating agencies monitored by the Danske Bank Group
did not change their ratings of the Danske Bank Group in the first
quarter of 2025.
9
Danske Bank / Interim report – first quarter 2025
Credit ratings
Danske Bank Group
31 March 2025
Counterparty rating
Deposits
Senior unsecured debt
Issuer rating
Non-preferred senior debt
Subordinated tier 2 debt
Additional tier 1 capital instruments
Realkredit Danmark A/S
Issuer rating
Danske Hypotek AB
Issuer rating
Danske Mortgage Bank Plc
Issuer rating
Danica Pension, Livsforsikringsaktieselskab
Issuer rating
Subordinated tier 2 debt
ESG ratings
Danske Bank Group
31 March 2025
CDP
ISS ESG
MSCI ESG Ratings
Sustainalytics
Fitch
AA-
AA-/F1+
AA-/F1+
A+/F1/Stable
A+
A-
BBB
Moody’s
Nordic Credit Rating
Aa3/P-1
A1/P-1/Stable
A1/P-1/Stable
A1/P-1/Stable
Baa1
-
-
S&P
AA-/A-1+
-
Scope
-
-
A+/A-1
A+/S-1+/Stable
A+/A-1/Stable
A+/S-1+/Stable
A-
BBB+
BBB-
A/Stable
BBB+/Stable
BBB-/Stable
A/N2/Stable
A/Stable
BBB+
A+/S-1+/Stable
A+/Stable
B
C+ Prime
BBB
Low Risk
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Changes to the Board of Directors
On 21 February 2025, it was announced that Raija-Leena
Hankonen-Nybom would not seek re-election at the Annual
General Meeting. In addition, Lars-Erik Brenøe has informed the
Board of Directors that he will not serve the full term and is
planning to step down towards the end of the 2025 calendar
year.
On 20 March 2025, the Annual General Meeting re-elected
Martin Blessing, Martin Nørkjær Larsen, Lars-Erik Brenøe, Jacob
Dahl, Lieve Mostrey, Allan Polack and Helle Valentin to the Board
of Directors and elected Rafael Salinas and Marianne Sørensen
as new members of the Board of Directors.
The Board of Directors thus now consists of Martin Blessing
(Chairman), Martin Nørkjær Larsen (Vice Chairman), Lars-Erik
Brenøe, Jacob Dahl, Lieve Mostrey, Allan Polack, Rafael Salinas,
Marianne Sørensen and Helle Valentin. Moreover, the Board of
Directors includes the four members elected by the employees:
Bente Bang, Kirsten Ebbe Brich, Aleksandras Cicasovas and
Louise Aggerstrøm Hansen.
Update on debt collection case
Danske Bank is progressing on efforts to provide finalisation for
customers impacted by the debt collection case. The bank has
attempted to pay out compensation to approximately 85% of the
customers in scope of compensation (excluding estate case
customers). The bank started paying compensation in estate
cases in the first quarter of 2025, and by the end of 2025,
Danske Bank expects to have finalised the analysis of more than
95% of the customer cases in the debt collection systems
(including estate case customers), which will enable a
subsequent pay-out process.
The new debt collection system is continuously being enhanced
and tested to gradually handle more complex case types. This
work progressed in 2024 and will continue in 2025.
Independent expert
The Danish FSA has extended the appointment of the
Independent Experts for a ninth period and has ordered Danske
Bank to let one or more experts follow the Bank for the remaining
term of the Bank’s probation period as set out in the Plea
Agreement entered into by the Bank in December 2022 with the
US Department of Justice (the DoJ) for the purpose of following
whether the Bank has processes and organisation in place to
enable the Bank to comply with the Plea Agreement.
Changes in the Executive Leadership Team
After dedicating almost five years to Danske Bank and a total of
36 years to an active business career, Stephan Engels, Chief
Financial Officer, retired from executive leadership roles. Cecile
Hillary took up the position of Chief Financial Officer on 1 March
2025.
Cecile Hillary comes from a position as Group Treasurer of Lloyds
Banking Group in the UK. Prior to joining Lloyds in 2021, she held
various positions over the span of 24 years with Barclays,
Morgan Stanley and JP Morgan. Cecile Hillary graduated from IEP
Paris (Sciences Po) and ESSEC Business School.
10
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
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 and Finland. Our advisers and experts are there to
help customers when and how it best suits the individual customer – at online meetings,
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 all 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.
11
Danske Bank / Interim report – first quarter 2025
Danica
Danica’s strategy, Forward ’28 – Danica, aims at making Danica the preferred pension
company in Denmark by 2028, focusing on customer satisfaction as a primary growth
driver. We focus on making customer interactions with Danica easy and convenient
through digital solutions providing comprehensive health offerings, attractive returns and
quality advice.
Additionally, the strategy aligns with the broader goals of Danske Bank’s Forward ’28
strategy. The alignment underscores significant potential in synchronising services
between the bank and the pension business, where several customers currently do not
engage in both services.
Northern Ireland
Danske Bank is the leading bank in Northern Ireland, serving personal, business and
corporate customers. It 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, consolidating our market-leading position alongside pursuing prudent low-cost
growth opportunities in the rest of the UK.
Financial highlights
Executive summary
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
Q1
2025
3,231
1,210
25
39
4,505
2,141
7
2,364
117
2,247
Q1
2024
3,544
1,199
34
15
4,793
2,320
41
2,472
-256
2,729
Loans, excluding reverse transactions before impairments
660,090
655,773
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 loan impairment charges as % p.a. of allocated capital
Profit before tax as % p.a. of allocated capital (avg.)
Cost/income ratio (%)
Full-time-equivalent staff
4,172
389,207
531,584
26,607
1.26
35.5
33.8
47.5
3,879
4,228
376,656
558,369
31,065
1.39
31.8
35.1
48.4
4,009
Index
25/24
91
101
74
260
94
92
17
96
-
82
101
99
103
95
86
97
Q4
2024
3,337
1,175
17
39
4,569
2,531
37
2,037
-209
2,246
659,974
4,188
383,544
532,809
28,211
1.29
28.9
31.8
55.4
3,806
Index
Q1/Q4
97
103
147
100
99
85
19
116
-
100
100
100
101
100
94
Full year
2024
14,042
4,764
134
114
19,054
9,774
150
9,280
-440
9,720
659,974
4,188
383,544
532,809
29,950
1.37
31.0
32.5
51.3
102
3,806
* Net interest income as % p.a. of loans and deposits in 2024 is exclusive of loans and deposits included in the sale of the personal customer business in Norway.
Fact Book Q1 2025 provides financial highlights at customer type level for Personal Customers. Fact Book Q1 2025 is available at danskebank.com/ir.
Personal Customers
In the first quarter of 2025, we continued to support our
customers in managing their finances in a market environment
characterised by a high degree of political uncertainty, especially
regarding the impact of trade and security policies. The housing
market in Denmark generally witnessed a consistently upward
trend in the first quarter of 2025. Meanwhile, the housing market
in Finland began to show signs of recovery, while the market in
Sweden continued to face challenges.
Profit before tax amounted to DKK 2,247 million in the first
quarter of 2025 (Q1 2024: DKK 2,729 million). The decrease was
due mainly to higher loan impairment charges. Both income and
operating expenses were affected by the divestment of our
personal customer business in Norway.
Business progress and initiatives
We continuously strive to improve our digital offerings for
customers across the Nordic countries. Our digital
enhancements, such as Realkredit Danmark’s self-service tool
that enables customers to manage their FlexLån® and FlexLife®
mortgage loans online, underscore our commitment to digital
self-service and convenience. Additionally, a streamlined car
financing process between Danske Bank and Nordania in
Denmark highlights our innovation and efficiency drive, reducing
decision-making and processing times internally while offering
competitive green car loans to our customers.
In the first quarter of 2025, we concluded negotiations with
BlackRock to be the first bank in the Nordic region to implement
their Aladdin Wealth platform into personal customer
investment services. Implementation is expected in the first half
of 2026 and aims to increase proactivity towards and
engagement with private banking and personal customers
through advanced risk management, analytics and streamlined
investment workflows. In 2025, the focus will be on integrating
the platform, creating a new investment value proposition for
customers and preparing the organisation for the 2026 launch.
12
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Q1 2025 vs Q1 2024
Profit before tax decreased to DKK 2,247 million (Q1 2024:
DKK 2,729 million). The result was driven by increased costs and
loan impairment charges as well as lower net interest income.
Adjusted for the divestment of the personal customer business
in Norway, we saw a decrease of 18%.
Net interest income experienced a decline of 9% and amounted
to DKK 3,231 million (Q1 2024: DKK 3,544 million). Excluding the
personal customer business in Norway, the decrease was 5%.
The decline was driven mainly by adverse market rates that
caused a decline in the value of deposits. The decrease was
somewhat mitigated by increased allocation from Group
Treasury related to the Group’s hedging framework, including
interest on shareholders’ equity.
We did, however, see a good inflow of deposit volumes. Deposit
volumes for personal customers increased 1% relative to the
end of 2024. The growth in deposit volumes of approximately
DKK 2 billion was driven by currency exchange rate
developments related primarily to appreciation of the Swedish
krona. The underlying increase was driven mainly by Private
Banking in Denmark.
Total lending was on par with the level at the end of 2024,
however, Personal Customers Denmark saw an increase in home
finance products driven by Danske Bolig Fri loans that achieved
an increase of 6%. For bank lending, there was a positive impact
from currency exchange of DKK 5.2 billion relative to the level at
the end of 2024.
Net fee income increased slightly to DKK 1,210 million (Q1 2024:
DKK 1,199 million), which corresponded to 4% adjusted for the
personal customer business in Norway. The increase was driven
primarily by higher investment and everyday banking fees.
Investment fees increased due to the increase in assets under
advice (AuA) resulting from the favourable financial markets in
2024. Additionally, we saw improved fund performance and
higher net sales, despite a challenged market situation in the
first quarter of 2025. Income from financing fees was flat
relative to the first quarter of 2024.
Net trading income was down to DKK 25 million (Q1 2024:
DKK 34 million) but flat when adjusted for the personal customer
business in Norway.
Other income amounted to DKK 39 million (Q1 2024: DKK 15
million). The increase related to our home real estate agency
chain.
Operating expenses decreased to DKK 2,141 million (Q1 2024:
DKK 2,320 million). Adjusted for the personal customer business
in Norway, we saw an increase of 1%. The increase was driven by
investments made in accordance with our Forward ’28 strategy
and by inflation.
Credit quality remained strong, with average loan-to-value levels
remaining low.
Loan impairment charges amounted to DKK 117 million in the
first quarter of 2025 (Q1 2024: net reversal of DKK 256 million).
Impairment charges were mainly affected by rating migration.
Credit exposure
Net credit exposure from lending activities amounted to DKK 726
billion at the end of the first quarter of 2025, an increase from
DKK 717 billion at the end of 2024, which was due mainly to an
increase in exposure to personal customers in Sweden and
Denmark.
Q1 2025 vs Q4 2024
Profit before tax saw a flat development and amounted to
DKK 2,247 million in the first quarter of 2025 (Q4 2024:
DKK 2,246 million) as an increase in net fee income and a
decrease in operating expenses were countered by loan
impairment charges.
• Net interest income saw a 3% decrease from the preceding
quarter – adjusted for the personal customer business in
Norway, the decrease was 2%. The decrease was due to
lower market rates, despite repricing actions taken to
mitigate the decrease in deposit margins. However, the
decrease was somewhat mitigated by increased allocation
from Group Treasury related to the Group’s hedging
framework, including interest on shareholders’ equity.
• Net fee income increased 3% from the preceding quarter,
also adjusted for the personal customer business in
Norway, as a result of the high level of investment fees
related to improved fund performance.
• Operating expenses decreased relative to the preceding
quarter as a result of the investments in our technology
transformation made in the fourth quarter of 2024.
• The first quarter of 2025 saw low loan impairment charges
of DKK 117 million (Q4 2024: net reversal of DKK 209
million).
Profit before tax
DKK 2,247 million
for the first quarter of 2025
13
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
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
Q1
2025
2,969
632
11
133
3,745
1,367
19
2,379
-449
2,828
Q1
2024
2,893
591
5
216
3,705
1,275
62
2,430
709
1,721
Loans, excluding reverse transactions before impairments
676,329
647,543
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 loan impairment charges as % p.a. of allocated capital
Profit before tax as % p.a. of allocated capital (avg.)
Cost/income ratio (%)
Full-time-equivalent staff
9,341
250,830
393,209
45,968
1.29
20.7
24.6
36.5
1,746
10,015
252,031
370,959
41,871
1.28
23.2
16.4
34.4
1,687
Index
25/24
103
107
220
62
101
107
31
98
-
164
104
93
100
106
110
103
Q4
2024
2,752
623
14
119
3,509
1,552
56
1,957
-47
2,004
665,235
9,590
251,446
386,025
42,006
1.21
18.6
19.1
44.2
1,731
Index
Q1/Q4
108
101
79
112
107
88
34
122
-
141
102
97
100
102
109
Full year
2024
11,434
2,303
31
639
14,408
5,501
226
8,907
218
8,690
665,235
9,590
251,446
386,025
42,087
1.27
21.2
20.6
38.2
101
1,731
Fact Book Q1 2025 provides financial highlights at customer type level for Business Customers. Fact Book Q1 2025 is available at danskebank.com/ir.
Business Customers
In the first quarter of 2025, Business Customers maintained
good momentum and achieved solid financial results despite the
geopolitical uncertainty. We continued to expand our customer
base within the more complex mid-sized segment across the
Nordic markets. Additionally, our business with subsidiaries of
international companies grew in alignment with our strategic
objectives, highlighting the strength of our offerings and our
ability to attract customers with international needs.
In the first quarter of 2025, profit before tax amounted to
DKK 2,828 million, an increase of 64% from the same period last
year (Q1 2024: DKK 1,721 million). The increase was driven by
loan impairment reversals. Net fee income also increased,
although the effect was offset by lower income in our leasing
company.
Business progress and initiatives
Throughout the first quarter of 2025, we saw good progress in
terms of customer inflows and a positive development in lending
volumes in our mid-sized customer segment. We remained
committed to supporting our customers across all four Nordic
countries by developing new initiatives aimed at enhancing their
business growth and helping them succeed, thereby reinforcing
our role as a strategic financial partner in line with our Forward
’28 strategy. As part of this, we introduced a series of webinars
targeted at business customers in Denmark at which experts
share insights on economic issues. The purpose of this initiative
is to provide our customers with the knowledge they need to
make informed strategic decisions.
Furthermore, we launched the Fast Forward sales training
programme to enhance the skills of our leaders and advisers.
This programme focuses on critical sales and advisory
techniques and aims to streamline how we work with customer
service across the Nordic region, ensuring a consistent go-to-
market strategy.
14
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Q1 2025 vs Q1 2024
Profit before tax amounted to DKK 2,828 million (Q1 2024:
DKK 1,721 million), driven by loan impairment reversals and an
increase in net interest income and net fee income, partly offset
by lower income in our leasing company.
Volume growth was driven partly by currency exchange rates,
with an impact of DKK 7.9 billion relative to the level at the end of
2024. Growth (in local currency) was driven by our activities in
Sweden and Norway with an increase of 2% relative to the level
at the end of 2024, while bank lending volumes were stable in
Finland and dropped 3% in Denmark.
Nominal Realkredit Danmark mortgage volumes increased 1%
relative to the level at the end of 2024. Combined with the
increase in bank lending, this had lifted total lending volumes
after fair value adjustments 2% by the end of March 2025.
Overall, credit quality remains strong. While increased interest
rates and inflation have in previous years led to a negative rating
trend, developments in the first quarter of 2025 indicate a
sustained stabilisation of ratings.
Loan impairments resulted in a net reversal of DKK 449 million in
the first quarter of 2025 (Q1 2024: charges of DKK 709 million).
Impairment charges for the first quarter of 2025 were mainly
affected by a reduction in the post-model adjustment relating to
the Commercial real estate segment and reversals in respect of
individual customers.
Credit exposure
Net credit exposure from lending activities increased to DKK 784
billion at the end of the first quarter of 2025 (end-2024: DKK 768
billion). The increase was driven primarily by an increase in
exposure to the Commercial property, Private housing co-ops.
and non-profit associations, and Services segments, which was
partially countered by a decrease in exposure to the Financials
segment.
Net interest income increased 3%, amounting to DKK 2,969
million (Q1 2024: DKK 2,893 million), as a result of increased
activity, lending volumes and increased allocation from Group
Treasury related to the Group’s hedging framework, including
interest on shareholders’ equity. Income from deposits was
adversely affected by lower market rates. However, the decrease
was somewhat mitigated by the Group’s hedging framework,
including interest on shareholders’ equity.
Net fee income increased to DKK 632 million (Q1 2024: DKK 591
million). The increase was driven primarily by everyday banking
fees and repricing actions in relation to our subscription-based
service model.
Other income decreased to DKK 133 million (Q1 2024: DKK 216
million). The decrease was caused by lower income from the sale
of used assets in our leasing company. Furthermore, we sold the
Norwegian company Tyssekraft A/S in February 2024, which had
a positive effect on other income in the first quarter of 2024 of
DKK 20 million.
Operating expenses amounted to DKK 1,367 million, an increase
of 7% relative to the first quarter of 2024. The increase was
driven by investments made in accordance with our Forward ’28
strategy combined with a generally higher cost level as a result
of inflation.
Deposit volumes across Business Customers remained stable
relative to the level at the end of 2024 at DKK 251 billion (end-
2024: DKK 252 billion). The development saw a positive impact
from currency exchange rates of DKK 4.2 billion in total. In local
currency, we saw an increase in deposit volumes in Norway of
5% and in Finland of 2%. In Denmark the development was
stable, whereas we saw a decline in Sweden of 11% driven by a
single customer in the Commercial real estate segment.
Supported by our strategy execution, we saw an increase in bank
lending volumes of 3% relative to the level at the end of 2024.
Q1 2025 vs Q4 2024
Profit before tax increased to DKK 2,828 million in the first
quarter of 2025 (Q4 2024: DKK 2,004 million) due to an
increase in net interest income combined with loan
impairment reversals relative to the fourth quarter of 2024.
• Net interest income increased 8% to DKK 2,969 million (Q4
2024: DKK 2,752 million). Income from deposits was
adversely affected by lower market rates. The decrease
was somewhat mitigated by increased allocation from
Group Treasury related to the Group’s hedging framework,
including interest on shareholders’ equity.
• Net fee income increased 1% from the fourth quarter of
2024 due to higher income from financing and service fees.
• Other income increased 12% as we saw some
improvement in activity in our leasing company.
• Operating expenses decreased 12% relative to the
preceding quarter as a result of investments made in the
fourth quarter of 2024 as part of the Forward ’28 strategy.
• The first quarter of 2025 saw a net loan impairment
reversal of DKK 449 million (Q4 2024: net reversal of
DKK 47 million).
Profit before tax
DKK 2,828 million
for the first quarter of 2025
15
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Large Corporates & Institutions
(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 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
Profit before loan impairment charges as % p.a. of allocated capital
Profit before tax as % p.a. of allocated capital (avg.)
Cost/income ratio (%)
Full-time-equivalent staff
* Comparative information for Q1 2024 has been restated as described in note G2(b).
Q1
2025
2,060
1,765
763
4
4,593
1,819
27
2,774
420
2,353
324,849
280,334
2,659
351,678
331,775
28,029
40,724
1.22
27.2
23.1
39.6
2,179
Q1
2024*
1,729
1,521
814
-
4,064
1,758
125
2,306
-376
2,682
286,093
261,716
1,638
300,328
276,306
28,043
40,589
1.13
22.7
26.4
43.3
2,082
Index
25/24
119
116
94
-
113
103
22
120
-
88
114
107
162
117
120
100
100
105
Q4
2024
1,952
2,682
480
190
5,304
2,025
113
3,279
170
3,109
305,498
269,392
2,122
355,760
330,807
28,020
40,753
1.25
32.2
30.5
38.2
2,127
Index
Q1/Q4
106
66
159
2
87
90
24
85
247
76
106
104
125
99
100
100
100
102
Full year
2024
7,164
7,645
2,365
191
17,365
7,460
459
9,905
-233
10,138
305,498
269,392
2,122
355,760
330,807
28,020
40,530
1.19
24.4
25.0
43.0
2,127
Large Corporates &
Institutions
In the first quarter of 2025, geopolitical uncertainty increased,
yet macroeconomic conditions remained remarkably stable. We
remain dedicated to actively supporting our customers with
advisory services backed by our strong product offering and
balance sheet. Additionally, our fee business maintained its
positive momentum across all areas.
Profit before tax decreased to DKK 2,353 million, or 12%, from
the level in the same period last year, with the decrease driven
by higher loan impairment charges. However, the return on
allocated capital before impairments increased to 27%, against
23% in the first quarter of 2024.
Business progress and initiatives
The first quarter of 2025 was characterised by continually
positive traction in capital markets activity, with attractive
conditions for customers seeking bond and loan financing.
In Debt Capital Markets, we are proud to have supported some of
the largest bond issues in the Nordic region, including
Carlsberg's EUR 4.6 billion multi-tranche dual-currency bond
issue. Additionally, we supported ABN AMRO’s EUR 2.25 billion
bond issue and Republic of Finland’s EUR 3 billion government
bond issue. In the Nordic primary Equity Capital Markets, we had
to navigate challenging market conditions, and we are pleased to
have participated in the IPOs of Swedish companies Röko and
Asker Healthcare on Nasdaq Stockholm. M&A advisory started
the year positively, contributing to capital markets fees.
In Loan Capital Markets, favourable lending conditions led to
increased interest and activity in leveraged financing and
corporate lending, which contributed positively to the
development in net interest income and fees.
16
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
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**
Q1
2025
2,366
1,456
-70
565
-22
206
Q1
2024
2,110
1,319
20
527
10
108
4,593
4,064
Index
25/24
112
110
-
107
-
191
113
Q4
2024
2,351
1,194
-29
1,454
652
305
5,304
Index
Q1/Q4
101
122
241
39
-
68
87
Full year
2024
8,699
4,641
30
3,201
729
825
17,365
525,114
348,687
873,801
470,681
345,355
816,036
112
101
107
521,163
358,904
880,068
101
97
99
521,163
358,904
880,068
* The xVA acronym covers Credit (CVA), Funding (FVA) and Collateral (ColVA) Valuation Adjustments to the fair value of the derivatives portfolio. Danske Bank has a centralised xVA desk
responsible for quantifying, managing and hedging xVA risks. The profit and loss 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.
Q1 2025 vs Q1 2024
Profit before tax decreased to DKK 2,353 million (Q1 2024:
DKK 2,682 million), with the decrease driven by higher loan
impairment charges, while profit before loan impairment
charges increased 20% relative to the level in the first quarter of
2024.
Net interest income increased to DKK 2,060 million (Q1 2024:
DKK 1,729 million), driven primarily by interest income from
lending activities and increased allocation from Group Treasury
related to the Group’s hedging framework, including interest on
shareholders’ equity. However, this increase was partly offset by
lower net interest income from deposits due to reduced margins
with the Internal Bank. Lending volumes in General Banking
increased 4% from the end of 2024 and were driven primarily by
corporate customers in Sweden. Deposit volumes in General
Banking increased slightly from the level at the end of 2024 due
mainly to an increase in fixed-term deposits.
Net fee income increased to DKK 1,765 million (Q1 2024:
DKK 1,521 million) as we saw a widespread increase in fees
across all areas.
We continued to increase our market share within cash
management in the first quarter of 2025 by adding eight new
house bank mandates. Despite the market volatility experienced
in March and the divestment of our personal customer business
in Norway, we achieved strong growth in assets under
management. This growth was driven not only by rising asset
prices but also by a robust development in net sales in the
institutional, private banking and retail segments adjusted for
the personal customer business in Norway. We finalised the
acquisition and integration of Dansk Vækstkapital (DVK), taking
over the management of existing DVK I-III funds – including the
option to open and manage future funds – which further
increased assets under management. Additionally, we
maintained our strong investment performance relative to peers
and benchmarks, particularly across our hedge fund franchise
and multi-asset solutions.
Net trading income decreased to DKK 763 million (Q1 2024:
DKK 814 million). The decline in net trading income was due to
xVA valuation adjustments.
17
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
18
Danske Bank / Interim report – first quarter 2025
Operating expenses increased to DKK 1,819 million (Q1 2024:
DKK 1,758 million) as a result of increased investments in our
technology transformation and provisions for performance-
based compensation. This increase was partly offset by the
discontinuation of payments to the Resolution Fund.
Loan impairments increased to DKK 420 million for the first three
months of 2025 (Q1 2024: net reversal of DKK 376 million). The
charges were driven mainly by individual customers as well as
an increased share of post-model adjustments.
Credit exposure
Net credit exposure from lending activities decreased to
DKK 681 billion at the end of the first quarter of 2025 (end-2024:
DKK 688 billion). The development was caused by a decrease in
exposure to the Financials and Public institutions segments,
while an increase in exposure to the Services segment had a
partially offsetting effect.
Q1 2025 vs Q4 2024
Profit before tax decreased to DKK 2,353 million (Q4 2024:
DKK 3,109 million), primarily because of a decrease in net fee
income.
• Net interest income increased to DKK 2,060 million (Q4
2024: DKK 1,952 million) as a result of increased allocation
from Group Treasury related to the Group’s hedging
framework, including interest on shareholders’ equity.
• Net fee income decreased to DKK 1,765 million (Q4 2024:
DKK 2,682 million), due mainly to lower capital markets and
performance fees, with seasonal factors contributing to the
reduction.
• Net trading income increased to DKK 763 million (Q4 2024:
DKK 480 million), driven by higher customer activity in
Fixed Income.
• Other income decreased to DKK 4 million (Q4 2024:
DKK 190 million), due mainly to the gain of DKK 185 million
on the sale of investment funds in connection with the
divestment of the personal customer business in Norway in
the fourth quarter of 2024.
• Operating expenses decreased to DKK 1,819 million (Q4
2024: DKK 2,025 million) as a result of the discontinuation
of payments to the Resolution Fund and lower technology
transformation costs.
• Net loan impairment charges amounted to DKK 420 million
(Q4 2024: DKK 170 million). The charges were driven
mainly by individual customers.
Profit before tax
DKK 2,353 million
for the first quarter of 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Danica
(DKK millions)
Insurance service result
Net financial result
Other income
Net income from insurance business
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)
Total
Premiums
(DKK millions)
Q1
2025
-267
456
12
201
Q1
2024
189
242
60
492
526,130
513,309
26,463
20,282
4.0
215
954
24,603
20,209
9.7
175
911
Index
25/24
-
188
20
41
102
108
100
105
Q4
2024
-133
98
14
-20
543,817
26,800
20,417
-0.4
207
940
Index
Q1/Q4
201
-
86
-
97
99
99
101
Full year
2024
260
1,033
94
1,387
543,817
26,800
20,219
6.9
207
940
469,643
460,549
102
486,956
96
486,956
Gross premiums, Denmark
12,111
10,548
115
11,160
109
43,643
Danica
Net income from insurance business decreased to DKK 201
million in the first quarter of 2025, down 59% from the level for
the same period in 2024, due to a decrease in the insurance
service result.
The insurance service result was impacted by a strengthening of
provisions related to legacy life insurance products in run-off
and more expensive claims in the health and accident business
(although the number of claims was stable), partly offset by an
adjustment of accrued interest income.
In the first quarter of 2025, the return on customer pension
savings was impacted by large volatility in the equity markets
due to a high degree of political uncertainty, especially regarding
the impact of trade and security policies, but bonds and
alternative investments saw a more stable development.
Business progress and initiatives
New strategy for Danica
Danica’s new commercial strategy, Forward ’28, took effect in
January 2025 and aims to make Danica the preferred pension
company in Denmark by 2028.
The new strategy focuses on enhancing collaboration within the
Danske Bank Group to unlock greater commercial potential.
The strategy aligns with the broader goals of the Danske Bank
Group and aims to realise growth through cross-sales, thereby
strengthening the bancassurance model.
Implementation of new fossil fuel policy underway
As announced in 2024, Danica has commenced the process of
gradually phasing in a new policy for fossil fuel companies
across all portfolios. The majority of portfolios will thus focus
only on investment in companies that have credible plans to
transition towards a more sustainable society and to future-
proof their business. The policy on fossil fuel companies will
result in the divestment of several fossil fuel companies from
19
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
20
Danske Bank / Interim report – first quarter 2025
Danica’s portfolios and an increase in investments in other
companies in the sector.
Q1 2025 vs Q1 2024
Net income from insurance business amounted to DKK 201
million (Q1 2024: DKK 492 million). The net financial result
increased, due partly to an adjustment of accrued interest
income. This was, however, not enough to offset a significant
decrease in the insurance service result, which was adversely
affected by a strengthening of provisions of DKK 220 million
related to legacy life insurance products in run-off.
The insurance service result decreased to a loss of DKK 267
million (Q1 2024: DKK 189 million) due partly to the above-
mentioned strengthening of provisions and partly to the result of
the health and accident business. In the health and accident
business, claims remained stable relative to claims in the first
quarter of 2024, but the cost of claims increased, which more
than offset the increase in premiums.
The net financial result increased to DKK 456 million (Q1 2024:
DKK 242 million) due to an increase in the investment return
attributable to shareholders’ equity, an adjustment of accrued
interest income and an increase in fee income.
Assets under management showed an increase of DKK 9 billion
from the level in the first quarter of 2024 following the positive
developments in the financial markets in 2024, which more than
offset the negative developments in the first quarter of 2025.
Premiums increased 15% from the level in the same period in
2024 following an increase in both single and regular premiums.
Q1 2025 vs Q4 2024
Net income from insurance business increased to DKK 201
million (Q4 2024: loss of DKK 20 million) due primarily to an
increase in the net financial result.
• The insurance service result decreased to a loss of
DKK 267 million, due mainly to the mentioned
strengthening of provisions of DKK 220 million related to
the life insurance business, while the result of the health
and accident business improved as the fourth quarter of
2024 included an increase in provisions for future losses.
• The net financial result increased in the first quarter of
2025 and amounted to DKK 456 million (Q4 2024: DKK 98
million). The increase was attributable to positive
developments in the investment results in the health and
accident business, an adjustment of accrued interest
income and the investment result attributable to
shareholders’ equity.
• Total premiums increased 9% following an increase in
regular premiums.
• Assets under management decreased DKK 17 billion, due
primarily to the negative developments in the financial
markets in the first quarter of 2025.
Net income from insurance business
DKK 201 million
for the first quarter of 2025
Financial highlights
Executive summary
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
Q1
2025
805
75
50
4
934
381
553
-49
602
Q1
2024
710
75
42
3
830
349
481
25
457
Loans, excluding reverse transactions before impairments
65,813
59,850
Index
25/24
113
100
119
133
113
109
115
-
132
110
88
112
108
Q4
2024
814
83
25
4
926
438
488
-23
511
64,004
738
108,504
6,862
1.83
29.8
47.3
Index
Q1/Q4
99
90
200
100
101
87
113
213
118
103
96
101
97
Full year
2024
3,025
320
154
12
3,511
1,580
1,931
-86
2,017
64,004
738
108,504
6,510
1.77
31.0
45.0
706
109,410
6,674
1.82
36.1
40.8
805
97,559
6,159
1.75
29.7
42.0
1,247
1,253
100
1,261
99
1,261
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 low-cost growth opportunities in the rest of
the UK. Financial performance remained strong with profit
before tax of DKK 602 million in the first quarter of 2025, 32%
higher than for the same period last year.
Business progress and initiatives
We are a leading bank in Northern Ireland, serving personal,
business and corporate customers. The Northern Ireland market
remains our regional focus, while we also seek growth in
targeted sectors across the rest of the UK.
The strategy aligns with the Group’s key focus areas, including
digitisation, customer journeys, sustainability, and simplicity and
efficiency, all underpinned by high levels of employee
engagement.
In the first quarter of 2025, a targeted business-switching
campaign resulted in an increase of approximately 60% in the
number of new small business customers joining Danske Bank.
Residential mortgage lending volumes continued to grow,
reflecting an increased market share of new business in
Northern Ireland. This growth was supported by sustained
demand for housing and continually low unemployment levels.
Customer lending was up 6% year-on-year in local currency.
We were also pleased to be recognised by Best Companies as a
world-class employer, ranking in the top 5 financial services
companies to work for across the UK.
21
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
22
Danske Bank / Interim report – first quarter 2025
Q1 2025 vs Q1 2024
Profit before tax increased 32% to DKK 602 million (Q1 2024:
DKK 457 million), reflecting a combination of strong growth in
net interest income and net impairment recoveries. Profit before
impairments was 15% higher than for the same period in 2024.
Net interest income increased to DKK 805 million (Q1 2024:
DKK 710 million), driven by a combination of balance sheet
growth and actions taken in response to changing UK interest
rates. Lending and deposits were 6% and 9% higher year-on-year
in local currency.
Net fee income stood at DKK 75 million (Q1 2024: DKK 75 million)
and was thus maintained overall year-on-year.
Net trading income was higher in the first quarter of 2025,
reaching DKK 50 million (Q1 2024: DKK 42 million). Both periods
include positive mark-to-market movements on the bank’s
hedging portfolio, reflecting a combination of changing market
expectations for UK interest rates and the reducing remaining
life of the impacted hedging portfolio.
Operating expenses increased to DKK 381 million (Q1 2024:
DKK 349 million) due primarily to higher costs for services
provided by the Group. In local currency, costs increased 6%
year-on-year, and the bank has a continued cost and efficiency
focus across local and Group cost drivers.
Credit quality remained strong, with a net loan impairment
reversal of DKK 49 million (Q1 2024: net charge of DKK 25
million).
Q1 2025 vs Q4 2024
The first quarter of 2025 saw profit before tax of DKK 602
million (Q4 2024: DKK 511 million).
• Net interest income decreased to DKK 805 million (Q4
2024: DKK 814 million), reflecting fewer days in the first
quarter than in the fourth quarter of 2024 and lower UK
interest rates.
• Net fee income was DKK 75 million (Q4 2024: DKK 83
million) including some seasonal reductions in
transactional activity.
• Net trading income amounted to DKK 50 million (Q4 2024:
DKK 25 million), with both quarters benefiting from positive
mark-to-market movements on the hedging portfolio.
• Operating expenses decreased to DKK 381 million (Q4
2024: DKK 438 million) where the fourth quarter of 2024
included non-recurring costs relating to a voluntary early
retirement scheme.
• Loan impairment charges saw a further net reversal in the
first quarter of 2025, reflecting continually strong credit
quality.
Profit before tax
DKK 602 million
for the first quarter of 2025
Financial highlights
Executive summary
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
Q1
2025
-46
-25
33
-10
-47
583
19
-630
10
-640
Q1
2024
265
-10
-126
-58
72
635
18
-563
-
-564
10,042
10,152
59
-31
-
-669
1
-640
264
-131
-
-769
72
-564
Index
25/24
-
250
-
17
-
92
106
112
-
113
99
22
24
-
87
1
113
Q4
2024
390
-54
22
-76
281
143
17
139
2
136
Index
Q1/Q4
-
46
150
13
-
-
112
-
-
-
Full year
2024
1,032
-121
-16
-216
679
1,421
71
-742
-2
-740
10,050
100
10,050
669
-270
-1
-252
-9
136
9
11
-
265
-
-
1.783
-463
-4
-2.110
54
-740
Group Functions
Group Functions includes Group Treasury, Technology &
Services and other functions. In addition, Group Functions
includes eliminations.
In the first quarter of 2025, the loss before tax increased to
DKK 640 million (Q1 2024: loss of DKK 564 million). Net interest
income fell to a net expense of DKK 46 million (Q1 2024: DKK 265
million). An increase in interest rate risk management income at
Group Treasury was more than offset by a decline in interest on
shareholders’ equity, which was further affected by internal
allocation to the business units in the first quarter of 2025.
Initiatives
Group Functions supports, among other things, 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 manages, 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 expenses
related to the sub-units within Group Functions are allocated to
the business units. This is done to ensure cost efficiency
throughout the Group.
Our digital and technology transformation is progressing well,
which not only improves the customer experience but also
reduces costs and operational risks. We continue to introduce
new digital solutions, such as our new District Mobile app for
business customers, and we are accelerating the
implementation of multiple GenAI solutions to enhance
customer journeys and boost the productivity of our employees.
Moreover, our cloud migration continues to run ahead of
schedule, allowing for immediate access to the latest technology
innovations.
23
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
24
Danske Bank / Interim report – first quarter 2025
Q1 2025 vs Q1 2024
The result at Group Functions decreased and amounted to a loss
before tax of DKK 640 million (Q1 2024: loss of DKK 564 million).
Net interest income decreased to a net expense of DKK 46
million (Q1 2024: DKK 265 million), with an increase in interest
rate risk management income from hedging and bond portfolios
being more than offset by interest on shareholders’ equity partly
allocated from the Internal Bank to the business units in 2025 on
the basis of their allocated capital. Interest on excess capital and
other non-allocated capital was retained at the Internal Bank. Net
interest income was also negatively affected by lower placement
rates on shareholders’ equity. Internal Bank allocation income
decreased, with interest rate risk management costs related
primarily to the hedging of the interest rate risk on deposits
being allocated to the business units in 2024.
Net trading income related to market value adjustments
improved and amounted to a gain of DKK 33 million (Q1 2024:
loss of DKK 126 million). The first quarter of 2024 was adversely
impacted by negative market value adjustments of cross-
currency swaps at Group Treasury.
Other income amounted to a loss of DKK 10 million (Q1 2024:
loss of DKK 58 million) and related to holdings in associates.
Operating expenses, after allocation to the business units,
decreased as a result of lower amortisation of intangible assets,
and amounted to DKK 583 million (Q1 2024: DKK 635 million).
The number of full-time-equivalent staff was 10,042 (end-Q1
2024: 10,152).
Q1 2025 vs Q4 2024
Group Functions posted a loss before tax of DKK 640 million
(Q4 2024: loss of DKK 136 million) that was due mainly to a
decrease in net interest income and an increase in operating
expenses.
• Net interest income decreased to a net expense of DKK 46
million (Q4 2024: DKK 390 million), with an increase in
interest rate risk management income being more than
offset by interest on shareholders’ equity being partly
allocated from the Internal Bank to the business units in the
first quarter of 2025. Net interest income was also
negatively affected by lower placement rates on
shareholders’ equity.
• Net fee income improved to a net expense of DKK 25
million (Q4 2024: net expense of DKK 54 million) and
related mainly to securities services.
• Net trading income related to market value adjustments
continued to be at a low level and amounted to DKK 33
million (Q4 2024: DKK 22 million).
• Other income amounted to a loss of DKK 10 million (Q4
2024: loss of DKK 76 million) and related to holdings in
associates.
• Operating expenses, after allocation to the business units,
increased to DKK 583 million (Q4 2024: DKK 143 million)
due to higher allocation in the fourth quarter of 2024 being
partly offset by lower depreciation/amortisation of
tangible/intangible assets.
Profit before tax
DKK -640 million
for the first quarter of 2025
Financial highlights
Executive summary
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.
Ratios and key figures
Dividend per share (DKK)
Return on average shareholders’ equity
(% p.a.)
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.
Net interest income as % p.a. of loans and
deposits
Definitions of additional ratios presented on page 3 and in other sections of the Management’s report:
Definition
Total dividend per share, consisting of the interim dividend per share (if any) paid out
during the year, and the dividend per share proposed in the Annual Report and paid to
shareholders in the subsequent year. Any extraordinary or special dividend is also
included in dividend per share.
Net profit as disclosed in the financial highlights divided by the average of the quarterly
average shareholders’ equity (beginning and end of each quarter) within the year. The
denominator represents equity equal to a decrease in the average of the quarterly
average equity of DKK 0 million (2024: an increase of DKK 312 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 2025 would be 1.28% (2024: 1.33%) due
to the daily average of the sum of loans and deposits being DKK 5.2 billion lower (2024:
DKK 63.2 billion lower) than if calculating the ratio by applying the end-of-period sum of
loans and deposits. The purpose of the ratio is to show whether the growth in net
interest income follows 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 50 million (2024:
DKK -543 million) annualised. The denominator is the sum of Loans at amortised cost
of DKK 921.9 billion (2024: DKK 921.6 billion), Loans at fair value of DKK 755.2 billion
(2024: DKK 753.3 billion), Loans held for sale of DKK 0 billion (2024: DKK 110.4 billion)
and guarantees of DKK 96.4 billion (2024: DKK 75.9 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 20.2 billion (2024:
DKK 19.9 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 962.1 billion (2024: DKK 921.9 billion), Loans
at fair value of DKK 749.8 billion (2024: DKK 755.2 billion), and guarantees of DKK 97.0
billion (2024: DKK 96.4 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.
25
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Financial statements
Statements
Notes
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
27
27
28
29
31
G1. Material accounting policies and estimates
G2. Changes in accounting policies and presentation
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. Other assets and Other liabilities
G9. Foreign currency translation reserve
G10. Guarantees, commitments and contingent liabilities
G11. Assets provided or received as collateral
G12. Fair value information for financial instruments
G13. Risk management notes
32
34
34
36
36
37
37
39
39
40
42
43
46
26
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Income statement – Danske Bank Group
Statement of comprehensive income – Danske Bank Group
Note
(DKK millions)
Interest income calculated using the effective interest method*
Other interest income*
Interest expense*
Net interest income from banking activities
G4
G4
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
G4
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)
Full year
2024
Note
(DKK millions)
Net profit
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
Hedging of units outside 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
* A positive amount is a tax expense, and a negative amount is a tax income.
Q1
2025
14,386
5,119
10,485
9,020
4,330
672
3,658
882
1,475
1,742
Q1
2024
13,994
5,954
10,806
9,142
4,516
1,140
3,376
769
1,507
1,305
63,022
17,504
43,829
36,697
19,463
4,551
14,912
2,668
5,869
5,609
-10,862
11,318
19,626
-19,384
44,001
-42,968
12
201
170
170
48
492
176
176
13,931
13,955
6,291
7,641
50
7,591
1,834
5,757
6,337
7,618
101
7,517
1,888
5,629
94
1,387
741
741
56,405
25,736
30,669
-543
31,212
7,583
23,629
6.9
6.6
6.9
6.5
27.9
27.8
-
-
28.7
* Q1 2024 is affected by adjustments between Interest income calculated using the effective interest method, Other interest income and
Interest expense. There is no change to Net interest income from banking activities in Q1 2024.
** Other income includes Gain or loss on sale of disposal groups.
27
Danske Bank / Interim report – first quarter 2025
Q1
2025
5,757
-65
-4
-61
2,657
-1,370
-89
-1
231
967
906
Q1
Full year
2024
5,629
2024
23,629
32
5
27
54
14
40
-1,780
-1,613
921
-178
13
-237
-787
-759
635
479
73
-113
-313
-273
6,663
4,870
23,356
Financial highlights
Executive summary
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
31 March 31 December
31 March
2025
2024
2024*
204,293
80,458
513,889
283,793
962,083
107,498
143,569
531,831
269,118
921,900
1,063,032
1,074,783
201,092
153,967
442,104
276,156
887,095
970,142
(DKK millions)
Liabilities
Due to credit institutions and central banks
Trading portfolio liabilities
Deposits
G7
G7
Issued bonds at fair value
Issued bonds at amortised cost
Deposits under pooled schemes and investment contracts
Assets under pooled schemes and investment contracts
72,873
76,173
73,717
G6
Insurance liabilities
G6
Insurance assets
Intangible assets
Tax assets
G8
Other assets**
Total assets
530,864
548,912
514,238
6,987
9,644
6,737
5,814
6,046
10,662
30,941
29,706
129,450
G8
G7
G7
Tax liabilities
Other liabilities**
Non-preferred senior bonds
Subordinated debt
3,758,856
3,716,042
3,664,668
Total liabilities
Equity
Share capital
G9
Foreign currency translation reserve
Reserve for bonds at fair value (OCI)
Retained earnings
Proposed dividends
Total equity
Total liabilities and equity
31 March 31 December
31 March
2025
2024
2024*
223,690
369,106
214,364
357,507
173,742
380,862
1,203,870
1,173,781
1,143,612
749,249
272,935
73,494
746,556
243,198
76,608
749,118
221,647
74,544
509,341
529,793
500,719
2,343
61,976
83,881
39,540
2,225
66,033
89,492
40,798
1,722
119,550
86,062
39,674
3,589,426
3,540,355
3,491,251
8,622
-2,330
156
8,622
-3,617
246
8,622
-3,498
-471
162,981
158,157
168,764
-
12,279
-
169,430
175,687
173,417
3,758,856
3,716,042
3,664,668
* Comparative information for Q1 2024 has been restated as described in note G2(b).
**Other assets and Other liabilities includes Assets held for sale and Liabilities in disposal groups held for sale.
28
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Statement of capital – Danske Bank Group
Changes in equity
Foreign
currency
translation
reserve
Reserve
for bonds
at fair
value (OCI)
Retained
earnings
Proposed
dividends
Total
(DKK millions)
-3,617
246
158,157
12,279
175,687
Total equity as at 1 January 2024
Share
capital
8,622
Foreign
currency
translation
reserve
Reserve
for bonds
at fair
value (OCI)
Retained
earnings
Proposed
dividends
Total
-2,639
-306
163,596
6,466
175,739
Share
capital
8,622
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,657
-1,370
-
-
-
1,287
1,287
-
-
-
-
-
-
-
-
-89
-1
-
-89
-89
-
-
-
-
5,757
-65
-
-
-
-
-227
-292
5,465
-
-
-
-
-
-
-
-
-
5,757
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
-65
2,657
-1,370
-89
-1
-227
906
6,663
Total comprehensive income
Transactions with owners
43
-12,279
-12,236
Dividends paid
-609
-6,758
6,684
-
-
-
-
-609
-6,758
6,684
Acquisition of own shares - share buy-back programme
Acquisition of own shares - other
Sale of own shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-1,780
921
-
-
-
-859
-859
-
-
-
-
-
-
-
-
-178
13
-
-165
-165
-
-
-
-
5,629
32
-
-
-
-
232
265
5,894
39
-794
-7,156
7,184
-
-
-
-
-
-
-
-
-
5,629
32
-1,780
921
-178
13
232
-759
4,870
-6,466
-6,427
-
-
-
-
-794
-7,156
7,184
173,417
8,622
-2,330
156
162,981
169,430
Total equity as at 31 March 2024
8,622
-3,498
-471
168,764
(DKK millions)
Total equity as at 1 January 2025
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 - share buy-back programme
Acquisition of own shares - other
Sale of own shares
Total equity as at 31 March 2025
29
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Statement of capital – Danske Bank Group
Share buy-back programme
On 10 February 2025, the Group initiated a share buy-back programme of DKK 5.0 billion, which may run until 30 January 2026. At the
end of March 2025, the Group had acquired 1,516,333 shares for a total amount of DKK 355 million under the share buy-back
programme. This is in addition to 1,193,175 shares acquired in 2025 for a total of DKK 254 million under the previous share buy-back
programme, which ran until 31 January 2025.
Dividend
The general meeting on 20 March 2025 adopted the Board of Directors’ proposal for payment of DKK 9.35 per share for the second
half of 2024 and extraordinary dividend of DKK 5.35 per share. This is in addition to the dividend payment of DKK 7.50 that was paid in
connection with the Interim report – first half 2024 and the special dividend of DKK 6.50 per share that was paid following the
divestment of the personal customers business in Norway. Total dividend paid for 2024 was therefore DKK 28.70 per share.
Total capital and total capital ratio
(DKK millions)
Total equity
Revaluation of domicile property at fair value
Tax effect of revaluation of domicile property at fair value
Total equity calculated in accordance with the rules of the Danish FSA
Common equity tier 1 capital instruments
Adjustment to eligible capital instruments
IFRS 9 reversal due to transitional rules
Prudent valuation
Prudential filters
Number of shares
Issued at 1 January
31 March 2025 31 December 2024
Expected/proposed payouts
862,184,621
862,184,621
Intangible assets of banking operations
Average number of shares held in relation to Share buy-back programme
Average number of shares held in the Group's trading portfolio
27,289,036
2,356,125
11,612,046
2,498,271
Minimum Loss Coverage for Non-Performing Exposures
Deferred tax on intangible assets
Average number of shares outstanding
832,539,460
848,074,304
Deferred tax assets that rely on future profitability, excluding temporary differences
Average number of dilutive shares issued for share-based payments
2,251,057
1,656,061
Defined benefit pension plan assets
Adjusted average number of shares outstanding, including dilutive shares
834,790,517
849,730,365
Statutory deduction for insurance subsidiaries
On 20 March 2025, the annual general meeting of Danske Bank A/S adopted the proposal to reduce Danske Bank’s share capital by
DKK 271,894,960 nominally by cancelling 27,189,496 shares from Danske Bank’s holding of own shares. The reduction of the share
capital has been carried out and registered at 24 April 2025. After the reduction, Danske Bank A/S’ share capital amounts to
DKK 8,349,951,250 nominally, corresponding to 834,995,125 shares of DKK 10 each.
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 (%)
31 March 2025 31 December 2024
169,430
175,687
218
-34
169,614
169,614
-5,204
-
-874
219
-24
175,882
175,882
-901
752
-912
-
-
-3,454
-6,247
-2,762
393
-565
-883
-1,651
148,366
13,438
161,804
22,262
184,066
804,726
18.4%
20.1%
22.9%
-17,279
-6,266
-2,607
461
-599
-917
-2,397
145,217
10,360
155,577
26,570
182,147
814,706
17.8%
19.1%
22.4%
30
Danske Bank / Interim report – first quarter 2025
Total capital and the total risk exposure amount are calculated in accordance with the rules applicable under the Capital Requirements
Regulation, taking into account the full implementation of IFRS 9 as stipulated by the Danish FSA. With IFRS 9 fully transitioned, the Group no
longer applies transitional arrangements and adheres strictly to the requirements set forth in the CRR.
The Internal Capital Adequacy Assessment Report provides more details about the Group’s solvency need. The report is available at
danskebank.com/reports.
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Cash flow statement – Danske Bank Group
Q1
2025
7,591
-7,744
-882
-1,035
10,692
29,541
-74
-14,675
-28,480
30,088
32,096
-2,391
-3,259
52,503
-21
-
-105
-71
-
-197
Q1
Full Year
2024*
2024
(DKK millions)
7,517
-9,396
-2,249
-4,128
20,925
32,460
28
7,758
3,709
-80,570
7,020
-1,367
11,161
-3,004
Cash flow from financing activities
31,212
Issue of subordinated debt
-10,335
Redemption of subordinated debt
700
Issue of non-preferred senior bonds
21,577
Redemption of non-preferred senior bonds
59,148
-109,329
Dividends paid
Share buy-back programme
Principal portion of lessee lease payments
-158
Cash flow from financing activities
14,796
-35,906
-53,265
Cash and cash equivalents as at 1 January
Foreign currency translation
Change in cash and cash equivalents
4,526
Cash and cash equivalents, end of period
-6,967
13,109
-92,469
Cash and cash equivalents, end of period
Cash in hand
Demand deposits with central banks
-
-
Total
Amounts due from credit institutions and central banks within three months
* Comparative information for Q1 2024 has been restated as described in note G2(b).
26
-134
-105
1
-212
26
-1,270
-984
-6
-2,234
Q1
2025
Q1
Full Year
2024*
2024
4,596
-5,594
5,306
-10,583
-12,236
-609
-121
5,590
-5,155
14,157
-21,532
-6,427
-794
-151
12,108
-11,392
28,338
-35,702
-18,207
-5,246
-576
-19,241
-14,312
-30,677
242,100
365,609
365,609
1,984
33,065
409
1,871
-17,528
-125,380
277,149
348,490
242,100
6,399
197,894
72,856
277,149
6,238
194,854
147,398
348,490
6,909
100,590
134,601
242,100
(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
Acquisition of businesses
Sale of businesses
Acquisition of intangible assets
Acquisition of tangible assets
Sale of tangible assets
Cash flow from investing activities
31
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
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
disclosure requirements for listed financial companies. The report is condensed and should be read in conjunction with the Group’s
Annual Report 2024.
Amendments to IAS 21 became effective on 1 January 2025 and have no impact on the financial statements. Further information on
the changes to accounting policies and presentation in 2025 can be found in note G2(a). The Group has not changed its material
accounting policies from those applied in Annual Report 2024. Annual Report 2024 provides a full description of the material
accounting policies.
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. The interim report for the first quarter of 2025 has not been audited or reviewed.
(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 solely payments of principal and interest (SPPI) test (further explained in note G15 of the Annual Report 2024)
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 2024). An overview of the classification and measurement basis for
financial instruments can be found in note G1(c) of the Annual Report 2024.
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 uncertain 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
initial 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.
32
Danske Bank / Interim report – first quarter 2025
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 G13 provides information on the scenarios as at 31 March 2025.
The base case scenario enters with a probability of 60% (31 December 2024: 60%), the upside scenario with a probability of 20% (31
December 2024: 20%) and the downside scenario with a probability of 20% (31 December 2024: 20%). On the basis of these
assessments, the allowance account as at 31 March 2025 amounted to DKK 20.2 billion (31 December 2024: DKK 19.9 billion). If the
base case scenario was assigned a probability of 100%, the allowance account would decrease DKK 2.7 billion (31 December 2024:
DKK 2.5 billion). Compared to the base case scenario, the allowance account would increase DKK 13.4 billion (31 December 2024: DKK
12.9 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 increase DKK 0.1 billion (31 December 2024: decrease of DKK 0.2 billion) compared to the base
case scenario.
Management applies judgement when determining the need for post-model adjustments. As at 31 March 2025, the post-model
adjustments amounted to DKK 5.9 billion (31 December 2024: DKK 5.9 billion) which are predominantly linked to macroeconomic and
geopolitical uncertainties. Further information on post-model adjustments can be found in note G13.
Note G15 of the Annual Report 2024 and the section on credit risk in note G13 in this report provide more details on expected credit
losses. As at 31 March 2025, financial assets covered by the expected credit loss model accounted for about 53.2% of total assets (31
December 2024: 53.8%).
Fair value measurement of financial instruments
At the end of March 2025, 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 31 March 2025, the
adjustments totalled DKK 0.3 billion (31 December 2024: DKK 0.3 billion), including the adjustment for credit risk on derivatives that
are credit impaired. Note G12 in this report and note G33(a) of the Annual Report 2024 provides more details on the fair value
measurement of financial instruments.
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G1. Material accounting policies and estimates - continued
Measurement of goodwill
Goodwill is tested for impairment once a year or more frequently if indications of impairment exist. Impairment testing requires
management 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 31 March 2025, goodwill amounted to DKK
4.5 billion (31 December 2024: DKK 4.4 billion). On 1 January 2025, Danske Bank acquired the right to the management of the billion
kroner funds Dansk Vækstkapital I, Dansk Vækstkapital II and Dansk Vækstkapital III, as well as potential future Dansk Vækstkapital
funds from the state-owned Export and Investment Fund of Denmark (EIFO) for a purchase consideration of DKK 21 million. This
acquisition led to an increase in goodwill in Asset Management of DKK 17 million.
In connection with the quarterly reporting, management performs an impairment review to assess whether there are indications that
goodwill might be impaired. This includes a review of decline in income, increase in loan impairment charges, decline in the market
value of assets under management, major restructurings, macroeconomic developments, etc. No indications of impairment have
been noted at the end of March 2025.
Goodwill mainly consists of DKK 2.1 billion (31 December 2024: DKK 2.1 billion) in Markets, DKK 1.8 billion (31 December 2024: DKK 1.8
billion) in Asset Management and DKK 0.5 billion (31 December 2024: 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 2024.
Note G19 of the Annual Report 2024 provides more information about impairment testing and sensitivity to changes in assumptions.
Measurement of Insurance contract liabilities (part of Insurance liabilities)
Insurance contract liabilities 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
future 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 the
European Insurance and Occupational Pension Authority (EIOPA) discount yield curve.
For life insurance contracts, risk adjustment for non-financial risks is calculated based on a safety margin on applied actuarial
assumptions, 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 insurance contracts measured using GMM.
For health and accident insurance contracts, the loss element includes expectations about mortality, reactivation, reinstatement and
repurchase, 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 2024 provides more information about insurance contract liabilities.
33
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G2. Changes in accounting policies and presentation
G3. Business segments
Business model and business segmentation
The Group’s commercial activities are organised in five reporting business units:
• Personal Customers, which serves personal customers in Denmark, Sweden and Finland.
• 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 corporate and institutional customers across all Nordic markets.
•
• Danica, 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 Northern
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.
(a) Changes in accounting policies
Amendment to IAS 21, The effects of change in foreign exchange rates
The amendment to IAS 21 requires an entity to apply a consistent approach to assessing whether a currency is exchangeable into
another currency and, when it is not, to determine the exchange rate to be used. The amendment also details the disclosures that are
required if a currency is not exchangeable. The amendment has no impact on the financial statements.
G2(b) Change in accounting treatment for variation margin for derivative transactions
During the fourth quarter of 2024 the Group changed its accounting treatment for some interest rate swaps to reflect the Group’s
updated understanding of the application of a legal framework in relation to variation margin for transactions cleared on London
House Clearnet and EUREX. Previously, the outstanding mark-to-market on derivatives was considered pledged collateral that needed
to be repaid. However, the outstanding mark-to-market on derivatives is instead treated as a final settlement of the exposure. This
change was applied retrospectively and thus required an adjustment to balances in comparative periods for Trading portfolio assets,
Loans at amortised cost, Trading portfolio liabilities and Deposits to reflect the treatment under the new framework.
Adjustments to Loans at amortised cost, Trading portfolio assets, Deposits and Trading portfolio liabilities as at 31 March 2024 are
shown in the following table. The adjustments have no impact on net profit nor equity at the end of the first quarter of 2024. There is
no change to balances as at 31 December 2024.
In the Cash flow statement, comparatives for Q1 2024 have been restated for Trading portfolio, Loans at amortised cost and fair value
and Deposits (all part of Cash flows from operations). The remaining lines in the Cash flow statement have not been affected by the
change and therefore have not been restated. There is no change to the cash flow statement for full-year 2024.
The comparative figures for Q1 2024 in the Balance sheet, Cash flow statement and note G3 show restated amounts.
(DKK millions)
Assets
Trading portfolio assets
Loans at amortised cost
Total assets
Liabilities
Trading portfolio liabilities
Deposits
Total liabilities
Total equity
Total liabilities and equity
34
Danske Bank / Interim report – first quarter 2025
31 March 2024
Adjustment
Restated 31 March
2024
487,028
887,311
3,709,808
398,322
1,171,291
3,536,391
173,417
3,709,808
-44,924
-216
-45,140
-17,461
-27,679
-45,140
-
-45,140
442,104
887,095
3,664,668
380,862
1,143,612
3,491,251
173,417
3,664,668
Financial highlights
Executive summary
Financial review
Business units
Financial statements
In the following tables, Net income from insurance business is equivalent to Net insurance result in the IFRS financial statements, and Other
income is equivalent to Total other income in the IFRS financial statements.
Business segments first quarter 2025
Business segments first quarter 2024
(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
3,231
1,210
25
-
39
4,505
2,141
7
2,364
117
2,247
2,969
632
11
-
133
3,745
1,367
19
2,379
-449
2,828
2,060
1,765
763
-
4
4,593
1,819
27
2,774
420
2,353
Danica
Northern
Ireland
Group
Functions
Elimina-
tions
-
-
-
201
-
201
-
-
201
-
201
805
75
50
-
4
934
381
-
553
-49
602
-
-47
35
-
664
652
1,235
19
-583
10
-593
-45
22
-2
-
-674
-699
-652
-
-47
-
-47
Total
(DKK millions)
9,020
Net interest income
3,658
Net fee income
882
201
170
Net trading income
Net income from insurance business
Other income
13,931
Total income
6,291
Operating expenses
72
of which resolution fund, bank tax etc.
7,641
Profit before loan impairment charges
50
Loan impairment charges
7,591
Profit before tax
Personal
Customers
Business
Customers
Large
Corporates
&
Institutions
3,544
1,199
34
-
15
4,793
2,320
41
2,472
-256
2,729
2,893
591
5
-
216
3,705
1,275
62
2,430
709
1,721
1,729
1,521
814
-
-
4,064
1,758
125
2,306
-376
2,682
Danica
Northern
Ireland
Group
Functions
Elimina-
tions
-
-
-
492
-
492
-
-
492
-
492
710
75
42
-
3
830
349
-
481
25
457
313
-65
-74
-
531
705
1,205
18
-499
-
-500
-47
55
-52
-
-589
-633
-570
-
-64
-
-64
Total
9,142
3,376
769
492
176
13,955
6,337
246
7,618
101
7,517
Loans, excluding reverse transactions
655,918
666,988
322,190
-
65,107
15,312
-16,044 1,709,470
Loans, excluding reverse transactions*
651,545
637,528
284,455
-
59,045
12,021
-12,834 1,631,760
Other assets
Total assets
441,075
163,688 3,125,687
576,478
66,767 4,911,304
-7,235,613 2,049,386
Other assets *
471,309
179,817 3,035,103
561,371
59,589 4,699,013
-6,973,295 2,032,908
1,096,993
830,676 3,447,877
576,478
131,874 4,926,615
-7,251,657 3,758,856
Total assets*
1,122,854
817,345 3,319,559
561,371
118,634 4,711,033
-6,986,129 3,664,668
Deposits, excluding repo deposits
389,207
250,830
351,678
-
109,410
8,771
-10,523 1,099,373
Deposits, excluding repo deposits*
376,656
252,031
300,328
-
97,559
6,722
-10,734 1,022,562
Other liabilities
Allocated capital
680,933
533,354 3,055,505
556,869
15,671 4,888,854
-7,241,134 2,490,053
Other liabilities *
715,539
523,341 2,978,787
541,783
15,044 4,669,591
-6,975,395 2,468,689
26,854
46,492
40,693
19,609
6,792
28,990
-
169,430
Allocated capital
30,659
41,973
40,444
19,588
6,032
34,721
-
173,417
Total liabilities and equity
1,096,993
830,676 3,447,877
576,478
131,874 4,926,615
-7,251,657 3,758,856
Total liabilities and equity*
1,122,854
817,345 3,319,559
561,371
118,634 4,711,033
-6,986,129 3,664,668
Profit before tax as % p.a. of allocated
capital (avg.)
Cost/income ratio (%)
33.8
47.5
24.6
36.5
23.1
39.6
Full-time-equivalent staff, end of period
3,879
1,746
2,179
4.0
-
954
36.1
40.8
-6.3
-
1,247
10,042
-
-
-
17.7
45.2
Profit before tax as % p.a. of allocated
capital (avg.)
Cost/income ratio (%)
35.1
48.4
16.4
34.4
26.4
43.3
20,046
Full-time-equivalent staff, end of period
4,009
1,687
2,082
9.7
-
911
29.7
42.0
-4.9
-
1,253
10,152
-
-
-
17.2
45.4
20,094
*Comparative information for Q1 2024 has been restated as described in note G2(b).
35
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
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 2024 provides additional information on the Group’s accounting policy for fee income, including the
description 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
adjustments of the credit risk on loans measured at fair value.
Loan impairment charges
(DKK millions)
ECL on new assets
ECL on assets derecognised
Impact of net remeasurement of ECL (incl. changes in models)
Write-offs charged directly to income statement
Received on claims previously written off
Interest income, effective interest method
Total
2025
960
-763
-43
28
-45
-87
50
2024
1,048
-954
383
26
-325
-77
101
Fee income first quarter 2025
(DKK millions)
Investment
Money transfers, account fee, cash management and other fees
Lending and Guarantees
Capital markets
Total
Fee income first quarter 2024
(DKK millions)
Investment
Money transfers, account fee, cash management and other fees
Lending and Guarantees
Capital markets
Total
Fee income Fee expenses
1,588
1,685
626
431
4,330
374
255
29
14
672
Fee income Fee expenses
1,996
1,559
628
333
4,516
862
226
34
19
1,140
Net fee
income
1,214
1,430
597
417
3,658
Net fee
income
1,135
1,334
594
315
3,376
(b) Other income
Other income amounted to DKK 170 million for the first quarter ending 31 March 2025 (31 Match 2024: DKK 176 million). Other
income includes gain or loss on sale of disposal groups, income from investment property and real estate brokerage, and income from
holdings in associates.
36
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G5. Loan impairment charges and reconciliation
of total allowance account - continued
Reconciliation of total allowance account
(DKK millions)
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 31 March 2024
ECL allowance account as at 1 January 2025
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 31 March 2025
G6. Insurance assets and Insurance liabilities
Insurance assets comprise assets earmarked for policyholders. As at 31 March 2025, Insurance assets total DKK 548,412 million (31
December 2024: DKK 567,273 million) before own bonds of DKK 4,917 million (31 December 2024: DKK 5,437 million) and other intra-
group balances of DKK 12,631 million (31 December 2024: DKK 12,924 million).
Insurance liabilities comprise DKK 445,390 million of Insurance contract liabilities as defined by IFRS 17 (31 December 2024: DKK
456,227 million) and DKK 80,740 million of Other insurance-related liabilities (31 December 2024: DKK 87,590 million), before intra-
group balances of DKK 16,789 million (31 December 2024: DKK 14,024 million).
Note G18 of Annual Report 2024 provides additional information on Insurance assets and Insurance liabilities.
G7. Issued bonds, subordinated debt and additional tier 1 capital
Stage 1
Stage 2
Stage 3
Total
3,592
7,486
9,062
20,140
484
-161
-7
175
-171
-400
-9
-23
1
-452
279
-169
486
-561
300
-
-100
-
-32
-118
176
387
-221
483
-140
-46
-3
-
-
-
1,048
-954
383
-149
-169
-2
3,480
3,226
7,269
7,617
9,549
9,058
20,297
19,901
392
-159
-44
254
-125
-354
-
33
14
-374
256
-473
535
-354
73
-
124
-8
-18
-96
517
171
-284
238
-100
100
-26
-
-
-
960
-763
-43
-100
257
-20
Issued bonds at fair value
(DKK millions)
Bonds issued by Realkredit Danmark (covered bonds)
Structured retail notes
Total
Issued bonds at amortised cost and non-preferred senior bonds
(DKK millions)
Commercial papers and certificates of deposits
Preferred senior bonds
31 March 31 December
2025
2024
747,551
744,495
1,698
2,061
749,249
746,556
31 March 31 December
2025
64,888
70,975
2024
49,044
66,778
136,667
126,763
405
612
272,935
243,198
83,881
89,492
Further information on issued bonds at fair value through profit or loss can be found in note G16 of the Annual Report 2024. The
issuance and redemption of bonds (including commercial papers and certificates of deposits at fair value) during the year are
presented in the tables below.
3,237
7,395
9,560
20,192
Covered bonds
Structured retail notes
Issued bonds at amortised cost, total
Non-preferred senior bonds
The movements on the allowance account are determined by comparing the classification and amount in the balance sheet at the
beginning 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 G13.
37
Danske Bank / Interim report – first quarter 2025
Subordinated debt and additional tier 1 capital
As at 31 March 2025, the nominal value of subordinated debt, including liability accounted additional tier 1 capital, amounted to
DKK 40,143 million (31 December 2024: DKK 41,440 million). During the period ended 31 March 2025, the Group issued NOK 1,600
million of tier 2 capital and USD 500 million of liability accounted additional tier 1 capital. The Group also redeemed EUR 750 million of
tier 2 capital during the three months ended 31 March 2025. During 2024, the Group issued EUR 1,250 million of tier 2 capital and SEK
4,250 million of tier 2 capital. In 2024, the Group also redeemed EUR 750 million of tier 2 capital and SEK 1,000 million of tier 2 capital,
as well as USD 750 million of liability accounted additional tier 1 capital.
For the additional tier 1 capital, Danske Bank A/S may, at its sole discretion, omit interest payments to bondholders. Any interest
payments are paid out of distributable items, which primarily consist of retained earnings in Danske Bank A/S and Danske Bank Group.
As at 31 March 2025, distributable items for Danske Bank A/S amounted to DKK 93.1 billion (31 December 2024: DKK 109.6 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
31 March 2025 the common equity tier 1 capital ratio was 21.5% (31 December 2024: 20.5%) for Danske Bank A/S. The ratios for the
Danske Bank Group are disclosed in the Statement of capital.
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G7. Issued bonds, subordinated debt and additional tier 1 capital -
continued
Other issued bonds
Other issued bonds in the following tables comprises Issued bonds at fair value excluding Realkredit Danmark, Issued bonds at
amortised cost and Non-preferred senior bonds.
1 January
2025
49,002
68,592
128,673
3,117
91,588
340,972
1 January
2024
29,613
65,545
129,419
4,076
97,900
Foreign
currency
Issued
Redeemed
translation
44,094
26,667
5,596
6,000
-
5,272
60,962
1,518
1,962
18
10,566
40,732
31 March
2025
64,836
72,257
139,016
2,504
85,991
-1,593
-412
6,305
-595
-303
3,401
364,604
Foreign
currency 31 December
1,310
1,099
2024
49,002
68,592
-2,137
128,673
196
1,067
1,534
3,117
91,588
340,972
Issued
Redeemed
translation
78,934
10,684
27,161
-
28,404
60,856
8,735
25,770
1,154
35,782
326,553
145,182
132,298
Nominal value of other issued bonds
(DKK millions)
Commercial papers and certificate of deposits
Preferred senior bonds
Covered bonds
Structured retail notes
Non-preferred senior bonds
Total
(DKK millions)
Commercial papers and certificate of deposits
Preferred senior bonds
Covered bonds
Structured retail notes
Non-preferred senior bonds
Total
38
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G8. Other assets and Other liabilities
G9. 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
Assets held for sale
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
*Other assets includes Assets held for sale.
As at 31 March 2025, 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 34,947 million (31 December 2024: DKK 32,893 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 constraints 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 Foreign 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 31 March 2025, the structural FX hedge position totalled DKK
38,979 million (31 December 2024: DKK 36,952 million) and a gain of DKK 1,252 million has been recognised in Other comprehensive
income during the first quarter of 2025, primarily due to a strengthening of SEK and NOK against DKK throughout the first quarter of
2025. For comparison, a total loss of DKK 865 million was recognised in Other comprehensive income during the first quarter of 2024,
primarily due to a weakening of SEK as well as NOK against DKK throughout the first quarter of 2024.
31 March 31 December
2025
2024*
8,265
10,257
873
394
6,992
3,631
403
127
7,352
9,727
907
396
7,092
3,675
396
160
30,941
29,706
38,576
13,363
265
1,382
3,750
2,882
2
1,756
61,976
42,659
13,265
275
1,287
3,787
2,893
2
1,866
66,033
In the table above, Provisions, including litigations includes customer remediation of DKK 1,194 million, regulatory and legal
proceedings of DKK 24 million, restructuring costs of DKK 206 million and other provisions of DKK 333 million.
39
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G10. Guarantees, commitments and contingent liabilities
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 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.
(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 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.
(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
In addition to credit exposure from lending activities, loan offers made and uncommitted lines of credit granted by the Group
amounted to DKK 206 billion (31 December 2024: DKK 193 billion). These items are included in the calculation of the total risk
exposure amount in accordance with the CRR.
40
Danske Bank / Interim report – first quarter 2025
31 March
31 December
2025
14,931
82,026
96,956
2024
17,393
78,965
96,359
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 remaining case complexes are stayed or pending before the Copenhagen City Court. In the case complex pending before Eastern
High Court, test cases have been selected to be progressed to trial. The Eastern High Court has scheduled the main hearing to start in
2027. 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.
31 March
31 December
2025
191,004
251,286
16,288
458,579
2024
191,002
244,372
16,689
452,062
Danske Bank has been procedurally notified in two claims filed against Thomas F. Borgen with a current total claim amount of
approximately DKK 1.7 billion. 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.
An action has been filed in the United States District Court for the Eastern District of New York against Danske Bank and others. The
complaint 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 uncertain.
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 outcomes 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 G8.
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G10. Guarantees, commitments and contingent liabilities - continued
(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 employer, 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 2024.
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 contributions above this percentage require the consent of the Danish FSA.
The Danish Resolution Fund is fully funded. If the Resolution Fund does not have sufficient means to make the required payments,
extraordinary contributions of up to three times the latest annual contributions may be required by Danske Bank A/S and Realkredit
Danmark A/S.
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 relative 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
contributions 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.
41
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G11. Assets provided or received as collateral
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 209.8 billion as at 31 March 2025 (31 December 2024: DKK 176.3 billion).
As at 31 March 2025, the Group had received securities worth DKK 416.0 billion (31 December 2024: DKK 452.0 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 collateral for other loans in exchange for returning similar securities to the counterparty at the expiry of the transactions.
As at 31 March 2025, the Group had sold securities or provided securities as collateral worth DKK 118.5 billion (31 December 2024:
DKK 103.0 billion).
The Group also receives many other types of assets as collateral in connection with its ordinary lending activities. The Group has not
received the ownership of these assets. Note G40 of the Annual Report 2024 provide more details on assets received as collateral in
connection with ordinary lending activities.
As at 31 March 2025, the Group had deposited securities (including bonds issued by the Group) worth DKK 19.7 billion as collateral
with Danish and international clearing centres and other institutions (31 December 2024: DKK 4.2 billion).
As at 31 March 2025, the Group had provided cash and securities (including bonds issued by the Group) worth DKK 77.6 billion as
collateral for derivatives transactions (31 December 2024: DKK 85.8 billion).
As at 31 March 2025, the Group had registered insurance assets (including bonds and shares issued by the Group) and investment
contracts worth DKK 488.2 billion (31 December 2024: DKK 505.3 billion) as collateral for policyholders’ savings of DKK 458.7 billion
(31 December 2024: DKK 469.8 billion).
As at 31 March 2025, the Group had registered loans at fair value and securities (including bonds issued by the Group) worth a total of
DKK 755.2 billion (31 December 2024: DKK 760.6 billion) as collateral for bonds issued by Realkredit Danmark. Similarly, the Group had
registered loans and other assets worth DKK 244.0 billion (31 December 2024: DKK 231.1 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
transactions are shown separately whereas the types explained above are included in the column ‘Other’.
Assets provided as collateral
(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
31 March 2025
31 December 2024
Repo
Other
Total
Repo
Other
Total
-
16,402
16,402
-
29,204
29,204
209,817
64,815
274,632
176,271
52,627
228,898
-
-
-
749,824
749,824
263,313
263,313
470,645
470,645
-
-
-
755,188
755,188
243,691
243,691
487,000
487,000
209,817 1,564,999 1,774,816
176,271 1,567,709 1,743,981
34,357
20,174
54,531
32,146
21,030
53,176
Total, including own issued bonds
244,174 1,585,172 1,829,347
208,418 1,588,739 1,797,156
42
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G12. Fair value information for financial instruments
Financial instruments are recognised in the balance sheet at fair value or amortised cost.
31 March 2025
31 December 2024
Fair value
Amortised
cost
Fair value
Amortised
cost
-
46,122
513,889
204,293
34,337
-
-
63,040
531,831
107,498
80,529
-
-
149,752
-
135,714
134,041
-
133,404
-
-
962,083
-
921,900
1,063,032
72,873
487,331
-
-
-
1,074,783
76,173
508,045
-
-
-
2,317,287
1,350,464
2,387,276
1,245,642
125,086
369,106
98,605
-
129,910
357,507
84,454
-
103,898
1,099,972
78,550
1,095,232
749,249
-
746,556
-
-
272,935
-
243,198
73,494
56,065
-
-
-
-
-
83,881
39,540
2,882
76,608
60,111
-
-
-
-
-
89,492
40,798
2,893
1,476,898
1,597,815
1,449,242
1,556,067
(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
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
Non-preferred senior bonds
Subordinated debt
Loan commitments and guarantees
Total
43
Danske Bank / Interim report – first quarter 2025
Insurance liabilities in the Balance sheet comprise Insurance contract liabilities (as defined by IFRS 17) and Other insurance-related
liabilities. The preceding table does not include Insurance contract liabilities as they are measured using the General Measurement
Model, Variable Fee Approach or Premium Allocation Approach as defined by IFRS 17.
Investment securities at fair value include bonds measured at fair value through other comprehensive income (see the table on bonds
in note G13). 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 amortised cost
The liquidity portfolio managed by Group Treasury includes different portfolios with different business models (see note G13 in Annual
Report 2024 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 31 March 2025 with
DKK 3,969 million (31 December 2024: DKK 3,770 million). This portfolio mainly contains Danish mortgage bonds and central and local
government bonds and has a weighted average rating factor of 6.1, following Moody’s numerical rating factor to scale, which
corresponds to a strong Aa1 rating. The interest rate risk duration for the portfolio is 3.0 years. Without any reinvestments,
respectively 31%, 49% and 20% of this portfolio will reach maturity within a period of 1 year, between 1 to 5 years, and after 5 years.
The difference from amortised cost to fair value has not changed much over the first quarter 2025, due to only small changes in
market interest rate levels.
Financial instruments at fair value
Note G33(a) of the Annual Report 2024 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
instruments valued substantially on the basis of other observable input are recognised in the Observable input category. This
category covers 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
classification of the instrument changes. Changes are considered to have taken place at the balance sheet date. Developments in the
financial markets 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 highlights
Executive summary
Financial review
Business units
Financial statements
G12. Fair value information for financial instruments – continued
Financial instruments at fair value
Quoted prices
Observable
input
Non-
observable
input
Total
(DKK millions)
31 December 2024
Financial assets
-
10,447
199,864
56,145
110,275
-
-
72,873
160,578
193,941
1,453
46,122
226,715
16,816
-
23,238
-
1,063,032
-
41,470
5,474
44,821
-
46,122
Due from credit institutions and central banks
3,698
240,860
Derivatives
-
204
-
528
-
-
1,989
36,902
703
216,680
Trading portfolio bonds
56,349
Trading portfolio shares
133,513
Investment securities, bonds
528
Investment securities, shares
1,063,032
Loans at fair value
72,873
Assets under pooled schemes and investment contracts
204,037
Insurance assets, bonds
236,317
Insurance assets, shares
46,977
Insurance assets, derivatives
Quoted prices
Observable
input
Non-
observable
input
-
7,289
160,849
92,637
108,843
-
-
76,173
160,099
208,508
826
63,040
249,643
17,168
-
24,042
-
1,074,783
-
49,275
5,963
43,682
-
4,114
-
131
-
519
-
-
2,103
36,911
678
Total
63,040
261,046
178,017
92,768
132,885
519
1,074,783
76,173
211,477
251,382
45,186
805,576
1,467,687
44,024
2,317,287
Total
815,224
1,527,596
44,456
2,387,276
-
13,087
116,539
125,086
235,312
1,938
-
103,898
749,249
-
325
-
73,494
55,149
879,200
594,877
2
-
-
-
591
2,822
Financial liabilities
-
125,086
Due to credit institutions and central banks
2,229
250,627
Derivatives
118,479
Obligations to repurchase securities
103,898
Deposits
749,249
Issued bonds at fair value
73,494
56,065
Deposits under pooled schemes and investment contracts
Insurance liabilities
-
10,125
100,696
-
746,556
-
208
129,910
241,256
2,301
78,550
-
76,608
59,402
-
3,120
10
-
-
-
501
3,631
129,910
254,500
103,007
78,550
746,556
76,608
60,111
1,449,242
1,476,898
Total
857,585
588,027
(DKK millions)
31 March 2025
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 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
44
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G12. Fair value information for financial instruments – continued
Financial instruments valued on the basis of unobservable inputs
Reconciliation from beginning to end of period
Sensitivity (change in fair value)
Gains/losses for the period
31 March 2025
31 December 2024
(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
37,551
71
853
-843
-
-
Bonds
Derivatives
2,103
-90
10
-34
-
-
1,171
-182
1,122
-530
-
-
Shares
35,308
2,274
3,658
-3,856
167
-
2,458
-1,398
372
-21
692
-
Bonds
Derivatives
Fair value end of period
37,632
1,989
1,581
37,551
2,103
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.
12
615
707
-105
-
-58
1,171
(DKK millions)
31 March 2025
Unlisted shares allocated to insurance contract
policyholders
Unlisted shares other
Illiquid bonds
Derivatives, net fair value
31 December 2024
Unlisted shares allocated to insurance contract
policyholders
Unlisted shares other
Illiquid bonds
Derivatives, net fair value
Carrying
amount
36,902
730
1,989
1,581
36,911
640
2,103
1,171
Increase
Decrease
Realised
Unrealised
-
73
30
-
-
64
32
-
-
73
30
-
-
64
32
-
407
-2
-
-
2,189
98
-
-
-293
-41
-90
-182
-10
-3
-1,398
615
For unlisted shares allocated to insurance contract policyholders, the policyholders assume most of the risk on the shares. Therefore,
changes in the fair value will affect the Group’s net profit only to a limited extent. 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 three months ended 31 March 2025 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 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.
45
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G13. Risk management notes
The consolidated financial statements for 2024 provide a detailed description of the Group’s risk management practices.
Lending
activities
Counterparty
credit risk
Trading and
investment
securities
Customer-
funded
investments
Total
197.9
80.5
513.9
283.8
962.1
1,063.0
72.9
530.9
97.0
191.0
251.3
16.3
197.9
34.3
-
-
962.1
749.8
-
-
97.0
191.0
251.3
-
-
46.1
240.9
-
-
313.2
-
-
-
-
-
-
-
-
273.0
283.8
-
-
-
-
-
-
-
-
(DKK billions)
31 December 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
-
-
-
-
-
-
72.9
Assets under pooled schemes and investment contracts
530.9
Insurance assets
Off-balance-sheet items
Guarantees
Loan commitments shorter than 1 year
Loan commitments longer than 1 year
-
-
-
16.3
Other unutilised commitments
Total
100.6
143.6
531.8
269.1
921.9
1,074.8
76.2
548.9
96.4
191.0
244.4
16.7
Lending
activities
Counterparty
credit risk
Trading and
investment
securities
Customer-
funded
investments
100.6
80.5
-
-
921.9
755.2
-
-
96.4
191.0
244.4
-
-
63.0
261.0
-
-
319.6
-
-
-
-
-
-
-
-
270.8
269.1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
76.2
548.9
-
-
-
16.7
641.7
4,260.4
2,483.4
600.2
556.9
620.0
Total
4,215.3
2,389.9
643.7
539.9
In addition to credit exposure from lending activities, Danske Bank had made uncommitted loan offers and granted uncommitted lines
of credit of DKK 206 billion at 31 March 2025 (31 December 2024: DKK 193 billion). These items are included in the calculation of the
total risk exposure amount in accordance with the Capital Requirements Directive.
Breakdown of credit exposure
(DKK billions)
31 March 2025
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
Off-balance-sheet items
Guarantees
Loan commitments shorter than 1 year
Loan commitments longer than 1 year
Other unutilised commitments
Total
46
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit exposure
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 73% (31 December 2024: 71%).
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 2024.
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 212 in Annual Report 2024.
47
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit exposure – continued
Credit exposure broken down by rating categories
(DKK billions)
31 March 2025
1
2
3
4
5
6
7
8
9
10
11 (default)
Total
(DKK billions)
31 December 2024
1
2
3
4
5
6
7
8
9
10
11 (default)
Total
PD level
Upper
-
0.01
0.03
0.06
0.14
0.31
0.63
1.90
7.98
25.70
100.00
PD level
Upper
-
0.01
0.03
0.06
0.14
0.31
0.63
1.90
7.98
25.70
100.00
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
Gross exposure
Expected credit loss
Net exposure
Net exposure, ex collateral
0.01
0.03
0.06
0.14
0.31
0.63
1.90
7.98
25.70
99.99
100.00
106.9
275.4
509.9
584.3
452.9
293.1
88.0
10.7
0.9
0.3
0.2
0.1
0.1
0.9
2.4
7.0
40.1
43.8
29.5
5.8
17.9
1.3
2,322.5
148.8
-
-
-
-
-
-
0.4
0.1
-
0.5
31.1
32.3
-
-
0.1
0.2
0.4
0.7
1.1
0.7
-
-
-
3.2
-
-
-
-
0.1
0.7
1.8
2.4
0.8
1.6
0.1
7.4
-
-
-
-
-
-
0.1
0.1
-
0.1
9.3
9.6
106.9
275.4
509.8
584.1
452.5
292.4
86.9
9.9
0.9
0.3
0.1
0.1
0.1
0.9
2.4
6.9
39.4
42.0
27.0
5.0
16.3
1.3
2,319.3
141.4
-
-
-
-
-
-
0.3
-
-
0.5
21.8
22.7
89.2
178.3
261.2
266.2
174.3
93.7
30.7
4.7
0.1
-
-
1,098.4
-
-
0.5
1.5
4.1
14.8
12.9
8.0
1.8
5.6
0.1
49.4
-
-
-
-
-
-
0.2
-
-
0.1
3.2
3.5
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
Gross exposure
Expected credit loss
Net exposure
Net exposure, ex collateral
0.01
0.03
0.06
0.14
0.31
0.63
1.90
7.98
25.70
99.99
100.00
130.1
191.1
508.6
583.0
422.5
291.1
89.1
9.6
1.0
1.0
0.3
-
0.2
0.8
2.6
8.5
39.5
43.7
28.9
5.1
19.3
1.5
2,227.3
150.0
-
-
-
0.1
-
-
0.7
-
0.1
0.8
30.7
32.5
-
-
0.1
0.2
0.4
0.6
1.2
0.7
-
-
0.1
3.2
-
-
-
-
0.1
0.6
1.8
2.2
0.7
2.1
0.1
7.6
-
-
-
-
-
-
0.1
0.1
-
0.1
8.8
9.1
130.1
191.1
508.6
582.8
422.1
290.4
88.0
8.9
0.9
1.0
0.2
-
0.2
0.8
2.6
8.4
38.9
41.9
26.7
4.4
17.2
1.4
2,224.1
142.4
-
-
-
0.1
-
-
0.5
-
0.1
0.7
22.0
23.5
108.8
95.3
259.8
268.9
154.4
95.8
31.3
2.5
0.1
0.3
-
1,017.3
-
-
0.5
1.6
5.1
14.2
11.1
7.9
1.6
6.8
0.1
49.0
-
-
-
-
-
-
0.5
-
-
0.1
3.1
3.8
48
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
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 approach used for the active management of the credit portfolio.
Credit exposure broken down by industry
(DKK billions)
31 March 2025
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
49
Danske Bank / Interim report – first quarter 2025
Gross exposure
Expected credit loss
Net exposure
Net exposure, ex collateral
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 2
Stage 3
Stage 1
253.5
147.3
53.0
25.4
91.8
275.3
44.4
76.6
15.4
17.7
1.1
57.0
203.8
47.2
26.8
82.1
38.7
25.6
25.3
21.2
91.9
1.4
2.9
5.7
6.2
11.1
31.4
8.6
8.7
1.3
2.3
0.2
1.4
3.5
3.8
4.8
5.0
5.4
2.8
1.7
2.3
0.7
0.2
0.3
1.4
0.3
2.0
3.5
1.7
1.2
0.7
0.1
0.7
0.1
0.6
0.6
2.0
2.3
1.2
0.3
1.0
1.1
0.3
-
0.1
0.3
-
0.1
0.6
0.3
-
-
-
0.1
-
0.1
-
0.1
0.2
-
-
-
-
-
1.1
3.2
-
0.1
0.8
0.3
0.5
1.2
1.0
0.4
0.1
0.1
-
-
0.1
0.2
0.4
0.3
0.1
0.1
0.1
0.2
-
1.3
7.4
-
0.1
0.5
0.1
0.8
0.8
0.8
0.4
0.2
-
0.1
-
0.1
0.2
0.9
0.7
0.1
0.1
0.7
0.3
0.1
2.6
9.6
Stage 1
253.5
147.3
52.6
25.3
91.7
274.7
44.1
76.6
15.3
17.7
1.0
56.9
203.8
47.2
26.7
81.8
38.7
25.6
25.3
21.2
91.9
1.4
2.8
4.9
5.8
10.5
30.3
7.6
8.3
1.3
2.2
0.2
1.3
3.4
3.7
4.5
4.6
5.3
2.7
1.6
2.1
0.7
0.2
0.3
1.0
0.2
1.1
2.7
0.9
0.8
0.5
0.1
0.6
0.1
0.5
0.4
1.1
1.6
1.1
0.2
0.3
0.9
0.2
8.0
22.7
Stage 1
251.7
135.2
12.7
19.4
81.5
44.5
32.1
59.4
5.8
14.8
-
53.5
30.2
35.0
16.6
67.8
22.6
9.1
19.7
13.0
69.0
105.1
1,098.4
Stage 2
Stage 3
-
2.0
1.4
3.6
7.9
3.2
3.6
6.0
0.3
1.5
-
1.1
0.4
2.5
3.5
3.1
0.9
2.2
1.5
0.5
0.2
4.0
49.4
-
0.1
-
-
0.2
0.4
0.1
0.2
0.1
-
0.4
-
0.1
0.1
0.3
1.0
0.1
-
-
0.1
0.2
-
3.5
701.5
2,322.5
37.7
148.8
10.6
32.3
700.3
2,319.3
36.4
141.4
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Gross exposure
Expected credit loss
Net exposure
Net exposure, ex collateral
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 2
Stage 3
Stage 1
190.2
156.3
51.6
25.5
88.0
269.2
43.1
78.5
12.4
16.3
2.1
56.1
200.3
44.9
26.4
75.6
37.5
26.5
23.8
22.6
90.3
1.4
2.8
5.2
5.1
11.3
31.1
8.0
8.2
1.3
2.6
0.3
1.4
3.3
3.4
4.9
4.9
5.6
2.7
1.3
2.1
0.3
0.2
0.4
1.6
0.3
2.1
4.0
1.8
1.2
0.7
-
1.0
-
0.5
0.7
1.9
1.2
1.5
0.3
1.3
1.2
-
-
-
0.3
-
0.1
0.7
0.4
-
-
-
0.1
-
0.1
-
0.1
0.2
-
-
-
-
-
1.0
3.2
-
0.1
0.7
0.3
0.4
1.4
1.1
0.5
0.1
0.1
-
0.1
0.1
0.2
0.4
0.5
0.1
0.1
0.1
0.1
-
1.3
7.6
-
0.1
0.5
0.1
0.8
0.9
0.9
0.4
0.2
-
0.1
-
0.1
0.2
0.6
0.4
0.2
0.1
0.7
0.3
-
2.6
9.1
Stage 1
190.2
156.3
51.2
25.5
88.0
268.6
42.8
78.5
12.4
16.3
2.0
56.0
200.3
44.8
26.3
75.4
37.5
26.5
23.8
22.6
90.3
Stage 2
Stage 3
1.4
2.7
4.5
4.8
10.9
29.7
6.9
7.7
1.3
2.5
0.3
1.3
3.2
3.2
4.5
4.4
5.6
2.6
1.2
2.0
0.3
0.2
0.3
1.1
0.1
1.3
3.1
1.0
0.7
0.5
-
0.9
-
0.4
0.5
1.3
0.8
1.4
0.2
0.6
0.9
-
688.8
2,224.1
41.3
142.4
8.0
23.5
Stage 1
188.6
140.0
11.8
18.9
78.1
47.3
31.1
61.7
3.2
13.6
-
52.9
26.8
33.8
16.4
63.4
21.5
10.0
18.2
14.6
67.2
98.1
-
1.9
1.2
2.7
8.3
4.2
3.2
5.9
0.3
1.8
-
1.1
0.5
2.1
3.4
2.7
0.4
2.1
1.1
0.7
0.2
5.1
-
0.2
-
-
0.3
0.4
0.4
0.1
0.1
-
0.6
-
0.1
0.1
0.6
0.4
0.2
-
0.1
-
-
-
3.8
689.9
2,227.3
42.7
150.0
10.6
32.5
1,017.3
49.0
Credit exposure – continued
(DKK billions)
31 December 2024
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
50
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
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
obtaining collateral. In Annual Report 2024, a table showing collateral by type (after haircut) is included. The mitigating effect from
collateral at the end of March 2025 can be found as the difference between the columns ‘Net exposure’ and ‘Net exposure, ex
collateral’ and amounted to DKK 1,332.0 billion at 31 March 2025 (31 December 2024: DKK 1,319.9 billion).
The table below breaks down credit exposure by business unit and underlying segment.
Credit exposure by business unit
(DKK billions)
31 March 2025
Personal Customers
Personal Customers Denmark
Personal Customers Sweden
Personal Customers Finland
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
435.3
102.1
74.8
73.6
-
685.8
49.4
271.2
385.2
0.3
706.1
642.0
100.1
188.3
21.2
3.3
6.2
3.7
-
34.3
11.3
33.8
29.1
-
74.2
36.7
3.4
0.1
2,322.5
148.8
6.8
0.6
2.0
0.8
-
10.2
2.7
9.3
2.2
-
14.1
6.5
1.4
-
32.3
0.8
0.1
0.1
0.1
-
1.1
0.1
0.9
0.5
-
1.5
0.4
0.2
-
3.2
0.8
0.2
0.2
0.1
-
1.3
0.3
3.3
0.8
-
4.5
1.5
0.1
-
7.4
1.4
0.1
0.6
0.2
-
2.3
0.7
3.5
0.4
-
4.6
2.2
0.4
-
9.6
434.5
102.0
74.7
73.5
-
684.8
49.3
270.3
384.7
0.3
704.6
641.6
99.9
188.3
20.3
3.2
6.0
3.5
-
33.0
11.0
30.6
28.3
-
69.8
35.2
3.3
0.1
5.4
0.4
1.4
0.6
-
7.9
2.0
5.8
1.8
-
9.5
4.3
1.0
-
65.1
30.6
4.5
12.9
-
113.1
18.5
100.1
66.8
0.3
185.7
566.7
47.1
185.8
2,319.3
141.4
22.7
1,098.4
1.1
0.5
0.3
0.8
-
2.7
2.4
12.5
3.1
-
18.1
28.1
0.4
0.1
49.4
0.3
-
-
-
-
0.3
0.2
0.7
0.1
-
1.0
2.2
-
-
3.5
51
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit exposure – continued
(DKK billions)
31 December 2024
Personal Customers
Personal Customers Denmark
Personal Customers Sweden
Personal Customers Finland
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
431.1
95.2
72.5
71.8
0.7
671.2
49.1
318.0
326.1
0.4
693.6
649.9
100.9
111.7
23.2
4.0
8.8
3.5
0.2
39.6
10.4
38.5
22.2
-
71.1
35.7
3.4
0.1
2,227.3
150.0
7.1
0.5
1.9
0.9
0.3
10.7
2.7
10.8
0.7
-
14.2
6.1
1.5
-
32.5
0.7
0.1
0.1
-
-
1.0
0.1
1.1
0.4
-
1.6
0.4
0.3
-
3.2
0.9
0.2
0.2
0.1
-
1.3
0.4
3.4
0.7
-
4.5
1.7
0.1
-
7.6
1.4
0.1
0.6
0.2
0.1
2.4
0.7
3.8
0.1
-
4.7
1.5
0.5
-
9.1
430.3
95.2
72.4
71.7
0.7
670.3
49.0
316.9
325.7
0.4
692.0
649.5
100.7
111.7
22.3
3.8
8.6
3.3
0.2
38.3
10.0
35.1
21.6
-
66.7
34.0
3.3
0.1
5.7
0.4
1.3
0.7
0.2
8.3
2.0
7.0
0.6
-
9.5
4.5
1.0
-
57.5
27.9
4.2
12.3
0.3
102.2
17.8
105.7
60.8
0.4
184.7
572.0
49.2
109.2
2,224.1
142.4
23.5
1,017.3
2.1
0.9
0.6
0.5
-
4.1
2.1
13.7
2.5
-
18.4
26.1
0.4
0.1
49.0
0.4
-
-
0.1
-
0.4
0.2
1.0
-
-
1.2
2.1
-
-
3.8
* Personal Customers Other includes credit exposure that was previously reported as Personal Customers Norway in Annual Report 2024. There is no change to total credit exposure as at 31 December 2024.
52
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
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-
reduction schedules, interest-only schedules, temporary payment holidays, term extensions, cancellation of outstanding fees, waiver
of covenant 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 quarter of 2025, the Group had recognised properties taken over in Denmark at a carrying amount of DKK 7 million (2024: DKK 13
million), and there were no properties taken over in other countries (2024: 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 performing 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 2024.
Exposures subject to forbearance measures
(DKK millions)
Stage 1
Stage 2
Stage 3
Total
31 March 2025 31 December 2024
100
6,381
6,646
13,127
256
7,629
6,966
14,851
53
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit exposure - continued
Allowance account broken down by stage
Allowance account broken down by segment
(DKK millions)
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 31 March 2024
ECL allowance account as at 1 January 2025
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
Stage 1
3,592
Stage 2
7,486
Stage 3
9,062
Total
20,140
484
-161
-7
175
-171
-400
-9
-23
1
3,480
3,226
392
-159
-44
254
-125
-354
-
33
14
-452
279
-169
486
-561
300
-
-100
-
7,269
7,617
-374
256
-473
535
-354
73
-
124
-8
-32
-118
176
387
-221
483
-140
-46
-3
9,549
9,058
-18
-96
517
171
-284
238
-100
100
-26
-
-
-
1,048
-954
383
-149
-169
-2
20,297
19,901
-
-
-
960
-763
-43
-100
257
-20
Large
Corporates &
Institutions
Northern
Ireland
Group
Functions
(DKK millions)
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)
Write-offs debited to allowance account
Foreign currency translation
Other changes
ECL allowance account as at 31 March 2024
ECL allowance account as at 1 January 2025
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
Personal
Customers
5,306
144
-252
-115
-49
-27
4
5,010
4,674
211
-232
154
-28
23
-87
Business
Customers
10,705
542
-644
854
-72
-134
-6
11,245
10,752
529
-498
-421
-37
178
82
3,308
289
-45
-332
-28
-17
1
3,176
3,666
200
-22
269
-28
60
-15
27
5
-2
-2
-
-1
-
26
22
2
-1
9
-
-
-
Total
20,140
1,048
-954
383
-149
-169
-2
20,297
19,901
960
-763
-43
-100
257
-20
794
68
-11
-21
-
11
-
840
785
17
-10
-53
-8
-5
-
726
ECL allowance account as at 31 March 2025
4,716
10,586
4,132
33
20,192
ECL allowance account as at 31 March 2025
3,237
7,395
9,560
20,192
The method used for calculating expected credit losses is described in detail in note G15 of the Annual Report 2024.
54
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
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
macroeconomic 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 factors on the expected credit losses. Post-model adjustments are used to capture specific risks which are not fully
covered by the macroeconomic 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
forecast period, the macroeconomic scenarios revert slowly towards a steady state.
The applied scenarios that drive the expected credit loss calculation in the first quarter of 2025 have been updated with the latest
macroeconomic data. For the Nordic markets overall compared to the end of 2024, the base case and upside scenarios have been
revised to reflect continued expectations of normalised inflation levels and improved house prices, however with a slightly more
subdued outlook for some of the Nordic countries.
The base case is an extension of the Group’s official view of the Nordic economies (the Nordic Outlook report). At 31 March 2025, the
base case scenario reflects a near-term outlook with economic growth moving toward normalised levels. Inflation and interest rates
move towards normalised levels, despite a more complex risk picture. The Nordic property markets have generally recovered, and
price increases are expected.
The upside scenario represents a slightly better outlook than the base case scenario across the macroeconomic parameters. In this
scenario, increased public spending on defence and government support for green investment boosts European demand. European
Central banks find less room to cut interest rates, and stronger demand strengthens 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 a deep recession
scenario on par with the financial crisis with negative growth, increasing interest rates, and falling property prices for a longer period.
The scenario is severe and captures the risk of a recession and economic slowdown. A trigger of the economic setback could be a
macroeconomic worsening following a trade war and challenges linked to high business costs while inflation remains elevated. This
adversely impacts the labour market and 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 2024. The weight on the base case scenario is 60% (60% in 2024), the upside scenario is
weighted 20% (20% in 2024), and the downside scenario is weighted 20% (20% in 2024).
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 in the following tables.
55
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit exposure – continued
Macroeconomic scenarios
31 March 2025
(percentage)
Denmark
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
Sweden
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
Norway
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
Finland
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
56
Danske Bank / Interim report – first quarter 2025
2025
Base-case
2026
2027
3.9
2.9
1.8
6.5
1.5
2.0
9.0
2.5
5.0
2.2
1.8
2.2
2.3
10.0
3.7
1.1
8.3
0.9
2.5
1.5
2.9
3.0
1.6
6.5
1.5
2.5
8.4
1.7
5.0
2.1
1.7
2.3
2.2
5.0
2.8
1.8
7.7
1.8
3.0
1.6
2.3
3.1
1.7
4.0
1.5
1.9
7.6
2.0
5.0
2.1
1.7
2.3
2.0
5.0
2.8
1.5
7.1
2.0
3.0
1.6
2025
-3.4
6.4
4.0
-19.7
5.0
-3.5
9.8
4.9
-22.0
5.7
-2.7
5.5
4.5
-19.0
6.3
-2.4
10.9
4.0
-14.2
5.1
Downside
2026
2027
2025
Upside
2026
2027
-2.0
7.4
3.0
-11.0
5.0
-3.4
10.7
3.9
-13.0
5.7
-1.1
6.4
3.0
-13.0
6.3
-2.0
11.9
3.0
-7.0
5.1
-
7.8
2.0
-6.0
3.0
-1.0
11.1
2.9
-7.0
3.7
0.6
6.5
2.0
-7.0
4.3
-0.3
11.9
2.0
-5.0
3.1
4.0
2.9
1.8
6.5
2.2
2.1
9.0
2.5
5.0
2.7
1.8
2.2
2.3
10.0
4.7
1.2
8.3
0.9
2.5
2.3
3.3
2.9
1.7
7.5
2.2
3.0
8.3
1.8
6.0
2.7
1.9
2.3
2.3
6.0
3.5
2.1
7.6
1.8
4.0
2.3
2.7
2.9
1.8
5.0
2.2
2.4
7.4
2.2
6.0
2.7
2.0
2.2
2.1
6.0
3.5
1.9
7.0
2.0
4.0
2.3
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit exposure – continued
31 December 2024
(percentage)
Denmark
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
Sweden
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
Norway
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
Finland
GDP
Unemployment
Inflation
Property prices - Residential
Interest rate - 3 month
57
Danske Bank / Interim report – first quarter 2025
2025
Base-case
2026
2027
2.5
3.1
1.8
5.0
1.5
2.5
8.2
1.7
5.0
1.9
1.9
2.4
2.2
6.0
3.7
1.8
8.1
1.2
4.0
1.6
2.3
3.1
1.7
4.0
1.5
2.2
7.7
1.2
5.0
1.9
1.7
2.4
2.0
5.0
2.8
1.6
7.3
1.8
3.0
1.6
1.9
3.2
1.8
2.5
1.5
1.8
7.4
1.5
3.0
1.9
1.8
2.4
2.0
4.0
2.8
1.5
6.5
2.0
2.5
1.6
2025
-2.0
7.4
3.0
-11.0
5.0
-3.4
10.7
3.9
-13.0
5.7
-1.1
6.4
3.0
-13.0
6.3
-2.0
11.9
3.0
-7.0
5.1
Downside
2026
2027
2025
Upside
2026
2027
-
7.8
2.0
-6.0
3.0
-1.0
11.1
2.9
-7.0
3.7
0.6
6.5
2.0
-7.0
4.3
-0.3
11.9
2.0
-5.0
3.1
-
7.8
2.0
-6.0
3.0
-1.0
11.1
2.9
-7.0
3.7
0.6
6.5
2.0
-7.0
4.3
-0.3
11.9
2.0
-5.0
3.1
2.7
3.1
1.3
7.0
1.2
2.7
8.2
1.2
7.0
1.6
2.1
2.4
1.9
7.0
3.5
2.0
8.1
0.8
6.0
1.3
2.6
3.0
1.6
6.0
1.2
2.6
7.6
1.0
7.0
1.6
1.9
2.3
1.9
7.0
2.6
2.0
7.2
1.6
5.0
1.3
1.9
3.1
1.7
2.5
1.2
1.9
7.3
1.4
3.0
1.6
1.8
2.3
1.9
4.0
2.6
1.5
6.4
1.9
2.5
1.3
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit exposure – continued
The base case scenario enters with a probability of 60% (31 December 2024: 60%), the upside scenario with a probability of 20% (31
December 2024: 20%) and the downside scenario with a probability of 20% (31 December 2024: 20%). On the basis of these
assessments, the allowance account as at 31 March 2025 amounted to DKK 20.2 billion (31 December 2024: DKK 19.9 billion). If the
base case scenario was assigned a probability of 100%, the allowance account would decrease by DKK 2.7 billion (31 December 2024:
DKK 2.5 billion). Compared to the base case scenario, the allowance account would increase by DKK 13.4 billion (31 December 2024:
DKK 12.9 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 increase by DKK 0.1 billion (31 December 2024: decrease of DKK 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 31 March 2025, the post-model
adjustments amounted to DKK 5.9 billion (31 December 2024: DKK 5.9 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
macroeconomic 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 industries
(DKK billions)
Agriculture
Commercial Property
Construction and building materials
Personal customers (including other retail exposures)
Others*
Total
31 March 2025 31 December 2024
0.9
1.3
0.8
1.0
1.8
5.9
0.9
1.6
1.0
1.0
1.4
5.9
* No individual industry included in Others exceeds DKK 0.4 billion at 31 March 2025 (31 December 2024: DKK 0.3 billion).
The total balance of post-model adjustments is unchanged compared to the end of 2024. The post-model adjustment related to
Commercial Property customers is decreased due to the improved market conditions with lower interest rates and more normalised
inflation levels. At the same time, the post-model adjustments related to geopolitical tensions have been increased to reflect the
heightened geopolitical and tariff risks.
The Group continues to have significant post-model adjustments related to the current macroeconomic uncertainties characterised
by the risk of trade wars, a slowing or declining growth environment, higher interest rates and elevated prices giving rise to a new set
of challenges that affect economic and business activity. The post-model adjustments cut across industries that are sensitive to
tariffs, price rises on energy, 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.
58
Danske Bank / Interim report – first quarter 2025
31 March 2025 31 December 2024
(DKK millions)
31 March 2025 31 December 2024
243,862
3,003
240,860
152,880
87,979
78,111
9,868
153,655
84,255
2,950
240,860
264,550
3,503
261,046
158,285
102,761
92,045
10,716
148,125
109,441
3,480
261,046
Financial highlights
Executive summary
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
Derivatives with positive fair value
(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
Total
Derivatives with positive fair value before netting
240.9
359.3
499.9
56.9
1,157.0
261.0
382.6
446.6
93.3
Netting (under accounting rules)
Carrying amount
Netting (under capital adequacy rules)
Net current exposure
Collateral
1,183.6
Net amount
* 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 357.9 billion (31 December 2024: DKK 381.6 billion), of which DKK 44.7 billion
relates to credit institutions and central banks (31 December 2024: DKK 62.0 billion), and other primarily short-term loans of DKK 1.4 billion
(31 December 2024: DKK 1.0 billion), of which DKK 1.4 billion (31 December 2024: DKK 1.0 billion) relates to credit institutions and central
banks.
Derivatives with positive fair value after netting for accounting purposes:
Interest rate contracts
Currency contracts
Other contracts
Total
59
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Bond portfolio
(DKK millions)
31 March 2025
Held-for-trading (FVPL)
Managed at fair value (FVPL)
Held to collect and sell
(FVOCI)
Held to collect (AMC)
Central and
Quasi-
Danish
local govern-
government
mortgage
ment bonds
bonds
bonds
135,203
6,406
21,629
48,020
5,025
199
3,412
6,410
32,990
20,815
50,226
90,444
Total
211,258
15,046
194,475
31 December 2024
Held-for-trading (FVPL)
Managed at fair value (FVPL)
Held to collect and sell
(FVOCI)
Held to collect (AMC)
110,999
5,728
20,364
38,034
2,781
161
3,371
6,946
40,106
20,527
53,504
86,736
Total
175,125
13,259
200,873
Swedish
covered
bonds
28,288
1,660
2,580
3,646
36,173
12,283
1,500
2,270
3,036
19,089
Other
covered
Corporate
bonds
bonds
Total
6,881
196
22,429
1,084
30,589
5,347
195
23,316
813
29,672
8,293
1,999
1,963
149
12,404
6,500
-
1,948
150
8,597
216,680
31,275
102,238
149,752
499,945
178,017
28,112
104,773
135,714
446,616
At 31 March 2025, the Group had an additional bond portfolio, including bond-based unit trust certificates, worth DKK 204,037 million
(31 December 2024: DKK 211,477 million) recognised as insurance assets and thus not included in the table above. The section on
insurance risk in Annual Report 2024 provides more information. For bonds classified as hold-to-collect, amortised cost exceeded fair
value as at 31 March 2025 and 31 December 2024, see note G13 for more information.
60
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
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
Quasi-
Danish
Swedish
Other
(DKK millions)
31 March 2025
Denmark
Sweden
UK
Norway
USA
Spain
France
Luxembourg
Finland
Ireland
Italy
Portugal
Austria
Netherlands
Germany
Belgium
Other
Total
local govern-
government
mortgage
ment bonds
bonds
bonds
37,677
36,355
22,475
9,347
19,467
609
14,142
-
12,731
367
3,464
1
3,970
1,909
46,339
2,403
-
-
-
304
-
3,062
-
25
4,436
3,431
-
-
-
-
-
148
3,153
486
194,475
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
covered
bonds
-
36,173
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,777
24,323
-
1
539
-
1,234
-
-
-
-
3
441
-
272
31 December 2024
3,290
2,506
1,145
2,863
25
-
427
73
235,442
Denmark
75,034
27,701
36,533
22,554
Sweden
UK
Norway
USA
610
Spain
15,134
France
4,509
Luxembourg
1,147
18,543
Finland
63
5
-
277
328
89
-
167
430
Ireland
3,469
Italy
1
Portugal
4,248
2,240
Austria
Netherlands
47,017
Germany
5,556
Belgium
924
Other
Total
covered
Corporate
bonds
bonds
Total
(DKK millions)
ment bonds
bonds
bonds
Central and
Quasi-
Danish
local govern-
government
mortgage
Other
covered
Corporate
bonds
bonds
Total
33,976
22,376
18,286
4,945
16,642
1,114
11,794
-
8,222
827
5,013
1
3,052
2,310
46,066
503
-
-
-
306
-
1,856
-
178
4,957
2,980
-
-
-
-
-
149
2,141
693
200,873
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Swedish
covered
bonds
-
19,089
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,966
23,896
-
1
264
-
1,128
-
-
-
-
4
208
-
204
980
1,706
1,155
2,675
41
-
270
100
725
85
3
-
115
458
92
-
191
8,597
235,829
43,172
23,712
31,517
18,539
1,114
12,506
5,057
13,055
912
5,016
1
3,167
2,772
46,515
2,643
1,088
446,616
211,258
15,046
194,475
36,173
30,589
12,404
499,945
175,125
13,259
200,873
19,089
29,672
61
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
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)
31 March 2025
AAA
AA+
AA
AA-
A+
A
A-
BBB+
BBB
BBB-
BB+
BB
BB-
Sub. "investment-grade" or unrated
Central and
Quasi-
Danish
local govern-
government
mortgage
ment bonds
bonds
bonds
Swedish
covered
bonds
Other
covered
Corporate
Central and
Quasi-
Danish
local govern-
government
mortgage
bonds
bonds
Total
(DKK millions)
ment bonds
bonds
bonds
Swedish
covered
bonds
Other
covered
Corporate
bonds
bonds
Total
126,841
30,968
24,899
23,900
-
438
1
172
2,078
1,960
-
-
-
-
12,557
2,469
-
20
-
-
-
-
-
-
-
-
-
-
194,431
36,172
29,927
4,410
404,339
-
-
44
-
-
-
-
-
-
-
-
-
-
-
1
-
-
-
-
-
-
-
-
-
-
-
7
655
-
-
-
-
-
-
-
-
-
-
-
23
1,468
97
603
1,479
401
975
1,663
672
176
259
33
144
33,467
27,023
24,061
603
1,917
402
1,147
3,741
2,632
176
259
33
144
31 December 2024
AAA
AA+
AA
AA-
A+
A
A-
BBB+
BBB
BBB-
BB+
BB
BB-
Sub. "investment-grade" or unrated
104,688
26,449
16,117
21,265
-
941
1
173
3,612
1,879
-
-
-
-
10,949
2,289
-
20
-
-
-
-
-
-
-
-
-
-
200,792
19,070
28,964
2,405
366,868
-
-
-
-
81
-
-
-
-
-
-
-
-
-
19
7
701
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
23
1,146
74
423
785
317
1,027
1,169
644
164
234
70
118
28,768
17,983
21,359
423
1,807
318
1,199
4,781
2,523
164
234
70
118
Total
211,258
15,046
194,475
36,173
30,589
12,404
499,945
Total
175,125
13,259
200,873
19,089
29,672
8,597
446,616
62
Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Statement by the
management
The Board of Directors and the Executive Leadership Team (the
management) have today reviewed and adopted the Interim report –
first quarter 2025 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. Furthermore, the interim report has been prepared in
accordance with legal requirements, including the disclosure
requirements for interim reports of listed financial institutions in
Denmark.
In our opinion, the consolidated interim financial statements give a
true and fair view of the Group’s assets, liabilities, shareholders´
equity and financial position at 31 March 2025 and of the results of
the Group’s operations and the consolidated cash flows for the
period starting on 1 January 2025 and ending on 31 March 2025.
Moreover, in our opinion, the management’s report includes a fair
view of developments in the Group’s operations and financial
position and describes the significant risks and uncertainty factors
that may affect the Group.
63
Danske Bank / Interim report – first quarter 2025
Copenhagen, 2 May 2025
Executive Leadership Team
Carsten Egeriis
CEO
Joachim Alpen
Magnus Agustsson
Christian Bornfeld
Karsten Breum
Cecile Hillary
Johanna Norberg
Dorthe Tolborg
Frans Woelders
Martin Blessing
Chairman
Jacob Dahl
Board of Directors
Martin Nørkjær Larsen
Vice Chairman
Lars-Erik Brenøe
Lieve Mostrey
Allan Polack
Rafael Salinas
Marianne Sørensen
Helle Valentin
Bente Bang
Elected by the employees
Kirsten Ebbe Brich
Elected by the employees
Aleksandras Cicasovas
Elected by the employees
Louise Aggerstrøm Hansen
Elected by the employees
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Supplementary information
Financial calendar
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
Danica
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
danica.dk
Danske Bank’s financial statements are available online at danskebank.com/Reports.
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Danske Bank / Interim report – first quarter 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
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Danske Bank / Interim report – first quarter 2025
Danske Bank Group
Bernstorffsgade 40
DK-1577 Copenhagen V
Tel. +45 33 44 00 00
CVR No. 611262 28-København
danskebank.com