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Danske Bank Group
Interim report –
first nine months
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
61
62
2
Danske Bank / Interim report – first nine months 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.
Q1-Q3
2025
27,157
10,568
2,362
1,097
428
41,613
18,990
232
Profit before loan impairment charges
22,622
22,790
Loan impairment charges
Profit before tax
Tax
Net profit
Ratios and key figures
Dividend per share (DKK)*
Earnings per share (DKK)
Return on avg. total 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)
13,696
13,985
19,046
100
6,320
6,379
Q1-Q3
Index
2024 25/24
27,452
10,403
2,110
1,407
464
41,836
99
102
112
78
92
99
682
34
99
-
96
258
-436
22,364
23,227
5,634
5,593
101
16,730
17,634
95
-
20.2
12.9
1.3
45.6
22.4
18.7
7.5
20.7
13.4
1.3
45.5
23.0
19.1
Q3
2025
9,074
3,502
626
382
111
77
7,376
-8
7,384
1,864
5,520
-
6.7
12.6
1.3
46.1
22.4
18.7
Balance sheet (end of period)
Q2
Index
Q3
Index
Full year
2025 Q3/Q2
2024 25/24
2024
(DKK millions)
Q1-Q3
2025
Q1-Q3
Index
2024** 25/24
Q3
2025
Q2
Index
Q3
Index
Full year
2025 Q3/Q2
2024** 25/24
2024
9,063
3,409
100
103
9,165
3,329
99
105
854
513
147
84
7,606
217
7,390
1,936
73
74
76
98
99
92
97
-
100
96
5,454
101
-
6.6
12.7
1.3
45.6
22.4
18.7
733
459
140
13,826
85
83
79
99
6,228
101
34
97
2
93
105
90
228
7,598
-337
7,935
1,770
6,165
-
7.2
13.9
1.3
45.0
23.0
19.1
201.5
210.4
36,697
14,912
2,668
1,387
741
56,405
25,736
906
30,669
-543
31,212
7,583
23,629
28.7
27.9
13.4
1.3
45.6
22.4
17.8
203.7
210.7
Due from credit institutions and central
banks
Repo loans
Loans
Trading portfolio assets
Investment securities
Insurance assets
Other assets
Total assets
135,624
217,423
62
135,624
189,378
72
217,423
62
182,113
378,137
336,530
112
378,137
348,991
108
336,530
112
384,049
1,743,059 1,669,669
104 1,743,059 1,725,662
101 1,669,669
104 1,674,680
453,921
470,678
96
453,921
522,660
87
470,678
96
531,831
292,668
266,255
545,490
526,507
110
104
292,668
281,944
545,490
540,921
130,553
211,213
62
130,553
130,076
104
101
100
266,255
526,507
110
104
269,118
548,912
211,213
62
125,339
3,679,453 3,698,275
99 3,679,453 3,739,632
98 3,698,275
99 3,716,042
Due to credit institutions and central
banks
Repo deposits
Deposits
58,485
87,198
67
58,485
72,324
293,293
200,997
146
293,293
309,274
81
95
87,198
67
84,454
200,997
146
209,057
1,061,895 1,033,543
103 1,061,895 1,073,580
99 1,033,543
103 1,094,635
Bonds issued by Realkredit Danmark
734,890
749,028
Other issued bonds
Trading portfolio liabilities
330,964
345,785
302,835
353,881
98
96
86
734,890
731,421
100
749,028
330,964
346,764
302,835
335,176
345,785
353,881
98
96
86
744,495
334,751
357,507
Insurance liabilities
Other liabilities
Subordinated debt
Total equity
539,197
513,257
105
539,197
527,291
150,496
200,611
30,297
37,059
75
82
150,496
137,070
30,297
33,962
513,257
105
529,793
200,611
37,059
75
82
144,866
40,798
177,099
176,916
100
177,099
172,771
103
176,916
100
175,687
95
90
102
110
89
Total liabilities and equity
3,679,453 3,698,275
99 3,679,453 3,739,632
98 3,698,275
99 3,716,042
* 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.
** Comparative information for Q3 2024 has been restated as described in note G2(b).
270.9
209.3
201.5
210.4
270.9
209.3
258.3
209.6
Full-time-equivalent staff (end of period)
20,220
20,057
101
20,220
20,204
100
20,057
101
19,916
3
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Executive summary
Danske Bank delivered a solid financial result for the first nine
months of 2025 following strong execution on strategic priorities
according to our Forward ’28 strategy. In line with our
expectations, the result was driven by good performance on core
income lines and a continued focus on strict cost management
supported by continually strong credit quality. Profitability
remains robust, with a return on equity of 12.6% for the third
quarter and 12.9% for the first nine months of 2025. In addition,
we continued to experience improved commercial momentum
due to increasing demand for home loans, higher corporate
lending volumes and customer demand for our leading advisory
solutions. Our Asset Management business is seeing strong
momentum on the back of a robust market performance and the
new strategy implemented last year. Consequently, assets under
management reached DKK 954 billion in the first nine months of
2025, marking an all-time high driven by strong net sales,
especially in the Private Banking and Institutional segments.
In terms of the macroeconomic environment, the third quarter
saw several noticeable developments. Firstly, a tariff-induced
recession did not materialise, although uncertainty concerning
trade tariffs persists. In addition, growth in the Nordic region is
expected to be around or above the structural growth rate in the
coming period according to Danske Bank Macro Research. In
Denmark, the downward revision by Statistics Denmark of
historical GDP growth and consumer spending figures suggests
that growth for 2025 as a whole is likely to be lower than
previously expected. Importantly, the Danish economy continues
to demonstrate resilience, with robust public finances and an
expected growth rate at the higher end compared with the other
European countries. Secondly, the lower interest rates and rising
real incomes are supportive for the economy. This is the case for
Denmark and other Nordic countries.
In line with our strategy, we want to continue to be a leading
bank in a digital age, and we are therefore investing significantly
in digitalisation and technology to provide a better banking
experience and drive operational efficiency. Our investments in
technology focus on, among other things, generative AI and
cloud-based solutions. We have 12 generative AI solutions,
4
Danske Bank / Interim report – first nine months 2025
including DanskeGPT, DanskeAssist, DanskeHR Assistant, GitHub
Copilot and Microsoft 365 Copilot. All are embedded in daily
operations, enhancing employee productivity and operational
efficiency with new solutions being continuously tested and
launched.
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 September 2025, our
liquidity coverage ratio (LCR) stood at 158% (31 December 2024:
167%), with an LCR reserve of DKK 512 billion (31 December
2024: DKK 560 billion), and our net stable funding ratio stood at
117% (31 December 2024: 118%).
The CET1 capital ratio was 18.7% at the end of September 2025
(31 December 2024: 17.8%). In the third quarter of 2025, Danica
called a subordinated loan of EUR 500 million with an expected
temporary effect of a CET1 capital ratio reduction of 50 bps all
else equal.
Share buy-back programme
At the end of September 2025, Danske Bank had bought back
around 13.2 million shares for a total purchase amount of
DKK 3.2 billion (figures at trade date) of the planned DKK 5.0
billion share buy-back programme.
Financials
Danske Bank delivered a net profit of DKK 16,730 million for the
first nine months of 2025, down 5% from the same period last
year. Net profit was primarily affected by higher loan impairment
charges, against a net reversal last year, as well as lower net
income from insurance business due to the strengthening of
provisions. This was partly offset by higher net fee income,
higher net trading income and our focus on cost management.
Net interest income decreased 1% to DKK 27,157 million due to
the sale of the personal customer business in Norway, which
caused a decrease of DKK 444 million relative to the same period
last year, and lower deposit margins caused by lower market
rates, with the decrease being partly countered by increased
Outlook for 2025
We continue to expect total income to be slightly lower in 2025
than in 2024, driven by lower, albeit resilient, net interest
income. Core banking income to be supported by our focus on
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 up to DKK 26 billion in 2025,
reflecting our focus on cost management, and cost/income
target for 2026.
Loan impairment charges are expected to be no more than DKK
0.6 billion as a result of continued strong credit quality.
We expect net profit to be in the upper end of the range of DKK
21–23 billion.
lending activity and an increase in interest rate risk management
income from the structural hedge.
Net fee income increased 2% to DKK 10,568 million relative to
the same period last year, as our focused strategy and strong
customer activity had a positive effect on everyday banking fee
income.
Net trading income increased 12% to DKK 2,362 million. Trading
activity was stable relative to the same period last year, and the
increase was therefore primarily driven by valuation
adjustments in Group Treasury.
Net income from insurance business decreased 22% and
amounted to DKK 1,097 million. The decrease was due to a
decline in both the insurance service result, primarily due to the
effect of a strengthening of provisions of DKK 220 million related
to legacy life insurance products in run-off, and in the net
financial result, caused by a decrease in the returns attributable
to shareholders’ equity.
Operating expenses were stable relative to the level in the same
period last year and amounted to DKK 18,990 million. We are on
track to meet our full-year guidance. The effect of the
discontinuation of payments to the Danish Resolution Fund and
higher capitalisation of internally developed software was offset
by higher digitalisation investments made in line with our
Forward ’28 strategy and higher staff costs due to wage inflation.
Loan impairment charges reflect overall stable credit quality,
despite the uncertain macroeconomic landscape, and were low
in the first nine months of 2025, amounting to DKK 258 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.
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Financial review
management purposes and a one-off gain of DKK 57 million
related to the sale of Norwegian financial institution
Eksportfinans in the second quarter of 2025.
Net income from insurance business decreased to DKK 1,097
million (Q1-Q3 2024: DKK 1,407 million). The decrease was due
to a decline in both the insurance service result, primarily due to
the effect of a strengthening of provisions of DKK 220 million
related to legacy life insurance products in run-off, and in the net
financial result, caused by a decrease in the returns attributable
to shareholders’ equity.
Other income was stable at DKK 428 million (Q1-Q3 2024:
DKK 464 million). Other income was affected by lower income
from the sale of used assets in our leasing company, although
the effect was offset by lower negative valuations of holdings in
associates.
Operating expenses
Operating expenses decreased to DKK 18,990 million (Q1-Q3
2024: DKK 19,046 million). The decrease was primarily due to
the discontinuation of payments to the Resolution Fund, which
became fully funded in 2024, as well as structural cost takeout
related to compliance and the normalisation of our financial
crime prevention. Furthermore, the decrease was also supported
by higher capitalisation of internally developed software,
although the positive effect was partly offset by higher
digitalisation investments made under our Forward ’28 strategy
and higher bonus payments and staff costs, both impacted by
wage inflation. We are on track to end the year in line with our
full-year guidance.
The Resolution fund, bank tax etc. item stood at DKK 232 million
(Q1-Q3 2024: DKK 682 million) and now consists primarily of
bank tax.
Loan impairment charges
Loan impairments were low in the first nine months of 2025,
amounting to a net charge of DKK 258 million (Q1-Q3 2024: net
reversal of DKK 436 million).
The impairment level reflected 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 has been reduced slightly since the end
of 2024. The post-model adjustment addressing geopolitical
tensions has increased in response to heightened geopolitical
and tariff risks. Conversely, the post-model adjustment related
to commercial property has decreased due to improved market
Loan impairment charges
(DKK millions)
Personal Customers
Business Customers
Large Corporates & Institutions
Northern Ireland
Group Functions
Total
Q1-Q3 2025
Q1-Q3 2024
Charges
% of net credit
exposure
Charges
% of net credit
exposure
81
-594
691
82
-1
258
0.02
-0.12
0.24
0.17
0.01
0.02
-232
265
-403
-62
-5
-436
-0.04
0.05
-0.15
-0.14
-0.28
-0.03
Defined as net credit exposure from lending activities, excluding exposure related to credit institutions and central banks and loan
commitments.
Q3 2025 vs Q2 2025
Net profit increased to DKK 5,520 million (Q2 2025: DKK 5,454
million). The increase was primarily driven by higher net fee
income and a net loan impairment reversal, although
decreases in net trading income and net income from
insurance business had a partly offsetting effect.
• Net interest income was stable at DKK 9,074 million (Q2
2025: DKK 9,063 million) as the combined effect of
increased lending activity, one additional interest day and
an increase in interest rate risk management income was
offset by lower market rates.
• Net fee income increased to DKK 3,502 million (Q2 2025:
DKK 3,409 million) as a result of improved market
conditions leading to elevated assets under management
underpinning investment fees.
• Net trading income decreased to DKK 626 million (Q2 2025:
DKK 854 million). Net trading income was affected by lower
income from hedging and funding activities. In addition, the
second quarter saw a one-off gain of DKK 57 million related
to the sale of Norwegian financial institution Eksportfinans.
• Net income from insurance business decreased to DKK 382
million (Q2 2025: DKK 513 million) and was affected by a
decrease in the result of the health and accident business
and a decrease in the investment return attributable to
shareholders’ equity.
• Operating expenses decreased to DKK 6,320 million (Q2
2025: DKK 6,379 million) due to our focus on cost
management.
• Loan impairments amounted to a net reversal of DKK 8
million (Q2 2025: net charge of DKK 217 million). Both
quarters were characterised by stable credit quality.
• Tax amounted to DKK 1,864 million (Q2 2025: DKK 1,936
million), corresponding to an effective tax rate of 25.2% (Q2
2025: 26.2%).
Q1-Q3 2025 vs Q1-Q3 2024
Net profit decreased to DKK 16,730 million (Q1-Q3 2024:
DKK 17,634 million). Increases in net fee income and net trading
income as well as the effect of our focus on cost management
were outweighed by slightly reduced net interest income due to
lower market rates, a decrease in net income from insurance
business, which was negatively affected by a strengthening of
provisions, and an increase in loan impairment charges relative
to the year-earlier period, which saw a net reversal.
Income
Net interest income decreased to DKK 27,157 million (Q1-Q3
2024: DKK 27,452 million). The decrease was primarily caused
by the sale of the personal customer business in Norway, which
caused a decrease of DKK 444 million, and a decrease in deposit
margins due to lower market rates. Excluding the effects from
the personal customer business in Norway, net interest income
benefitted from increased lending activity and an increase in
interest rate risk management income from the structural
hedge.
Net fee income increased to DKK 10,568 million (Q1-Q3 2024:
DKK 10,403 million). Net fee income benefitted from higher
everyday banking fee income due to strong customer activity,
although the effect was partly countered by the sale of the
personal customer business in Norway.
Net trading income increased to DKK 2,362 million (Q1-Q3 2024:
DKK 2,110 million), mainly driven by positive fair value
adjustments of cross-currency swaps used for liquidity
Net profit
DKK 5,520 million
for the third quarter of 2025
5
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
conditions and lower interest rates, and the post-model
adjustment related to construction has also decreased.
Personal Customers had limited impairment charges in the first
nine months of 2025, as underlying credit quality remained
stable.
Business Customers saw a net reversal in the first nine months
of 2025, driven by reversals related to single-name exposures,
as well as a reduced share of post-model adjustments related to
commercial property and construction.
Large Corporates & Institutions made net impairment charges as
opposed to the first nine months of 2024, which saw a net
reversal. The charges were mainly due to single-name exposures
and an increased allocation of post-model adjustments.
The macroeconomic scenarios have been updated and continue
to reflect a benign operating environment, although with a more
normalised growth outlook for the Danish economy in 2025
following a revision from Statistics Denmark. We continue to
consider a severe down-side scenario to reflect a global
recession in which retaliatory tariffs and supply chain issues
trigger an economic downturn and increases in inflation and
interest rates.
To address the continued uncertainty, an additional downside
scenario was introduced in the second quarter of 2025 with a
probability of 5% (2024: 0%), while the weighting of the severe
recession scenario remained at 20% (2024: 20%). The weighting
of the upside scenario has been increased to 25% (2024: 20%),
and the probability of the base-case scenario has been adjusted
to 50% (2024: 60%) to reflect a more balanced risk picture.
Tax
The tax expense of DKK 5,634 million (Q1-Q3 2024: DKK 5,593
million) corresponded to an effective tax rate of 25.2% (Q1-Q3
2024: 24.1%).
Lending
Lending stood at DKK 1,743 billion (31 December 2024:
DKK 1,675 billion). Mortgage lending at nominal value at
Realkredit Danmark amounted to DKK 791 billion (31 December
2024: DKK 795 billion).
6
Danske Bank / Interim report – first nine months 2025
At Personal Customers, total lending increased 1% relative to the
level at 31 December 2024. In Denmark, Personal Customers
and Private Banking both saw an increase in volumes related to
home finance products. Total lending saw a positive currency
effect of DKK 3.5 billion, which accounts for 83% of the increase
in total lending relative to the end of 2024, mainly due to the
appreciation of the Swedish krona.
Total lending at Business Customers was up 4%, also 4% in local
currency, from the level at the end of 2024. The increase was
mainly driven by our activities in Norway and Sweden, as well as
appreciation of the currencies in these countries. The currency
impact on bank lending volumes in the first nine months of 2025
was DKK 5.7 billion relative to the level at the end of 2024.
Nominal mortgage volumes increased 2% from the level at the
end of 2024.
Large Corporates & Institutions saw an increase in lending
volumes of 10% from the level at the end of 2024, driven by an
increase of 14% in General Banking, primarily among corporate
customers in Denmark and Sweden.
In Denmark, new gross lending, excluding repo loans, amounted
to DKK 183.7 billion, while new net lending amounted to
DKK 36.0 billion. Lending to personal customers accounted for
DKK 67.4 billion and DKK 5.4 billion, respectively, of these
amounts.
Deposits
Deposits decreased slightly and amounted to DKK 1,062 billion
at the end of September 2025 (31 December 2024: DKK 1,095
billion). The small decrease was mainly caused by a single
corporate M&A outflow at Large Corporates & Institutions that
was partly offset by an increase in Global Private Banking at
Personal Customers.
Personal Customers saw a good inflow of deposit volumes,
which increased 4% from the end of 2024. The increase was
primarily driven by Global Private Banking, mainly from activities
in Denmark and, to a lesser extent, the activities in Sweden and
Finland, and from the appreciation of currencies, primarily the
Swedish krona, of DKK 1.4 billion.
At Business Customers, deposit volumes decreased 1% relative
to the level at the end of 2024. The decrease was due to single-
name exposures in the commercial property segment in Sweden
and public sector volumes in Norway, with the impact being
partly countered by a positive currency effect of DKK 2.4 billion
related mainly to the appreciation of the Swedish krona.
Credit exposure
Credit exposure from lending activities increased to DKK 2,429
billion (31 December 2024: DKK 2,390 billion). The increase in
exposure was caused by an increase in Personal Customers and
Services exposure.
At Large Corporates & Institutions, deposit volumes decreased
14% in General Banking, while total deposits at Large Corporates
& Institutions as a whole decreased 15%. The decrease was
primarily due to corporate M&A outflow.
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 nine months of 2025
for all business units, and we remain prudent given the
Stage 3 loans
(DKK millions)
Gross exposure
Allowance account
Net exposure
Collateral (after haircut)
Stage 3 coverage ratio
Stage 3 gross/total gross credit exposure
30 September 2025
31 December 2024
32,124
9,316
22,808
18,360
68%
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.
30 September 2025
31 December 2024
Accumulated
impairment
charges
% of credit
exposure
Accumulated
impairment
charges
% of credit
exposure
4,690
10,161
4,081
814
18
19,763
0.69
1.43
1.01
1.17
-1.61
1.06
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
uncertainty mentioned in the loan impairment charges section
above.
Total gross credit exposure in stage 3 was stable at DKK 32.1
billion (31 December 2024: DKK 32.5 billion), corresponding to
1.3% of total gross exposure. Stage 3 exposure was
concentrated on personal customers, commercial property,
capital goods, and telecom and media, which combined
accounted for 57% of total gross exposure in stage 3.
Funding and liquidity
In the third quarter of 2025, the funding markets remained
strong, showing good resilience in the face of increased global
macroeconomic uncertainty. In the first nine months of 2025,
the Group issued covered bonds of DKK 19.3 billion, preferred
senior debt of DKK 12 billion, non-preferred senior debt of
DKK 18.8 billion, tier 2 capital of DKK 4.8 billion and additional tier
1 capital of DKK 3.6 billion, thus bringing total long-term
wholesale funding to DKK 58.5 billion.
The allowance account amounted to 1.06% (31 December 2024:
1.11%) of credit exposure.
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 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, after an appropriate trial period, in the first
half of 2026.
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 highly 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.
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 DKK, NOK and SEK. The benchmark
issues are expected to be supplemented by periodic private
placements of bonds.
From time to time, we will issue 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
depend on balance sheet growth and redemptions on the one
hand and our capital targets on the other. Note G7 provides more
information about bond issues in the first nine months of 2025.
Danske Bank’s liquidity position remained robust. At the end of
September 2025, our liquidity coverage ratio stood at 158% (31
December 2024: 167%), with an LCR reserve of DKK 512 billion
(31 December 2024: DKK 560 billion), and our net stable funding
ratio was 117%.
At end-September 2025, the total nominal value of outstanding
long-term funding, excluding bonds issued by Realkredit
Danmark, was DKK 317 billion (31 December 2024: DKK 333
billion). Realkredit Danmark bond issues are excluded because
mortgages in Denmark are based on the pass-through principle.
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.
Capital ratios and requirements
At end-September 2025, the Group’s total capital ratio was
22.4% (31 December 2024: 22.4%) and its CET1 capital ratio was
18.7% (31 December 2024: 17.8%). The movement in the capital
ratios was primarily attributable to an increase in net profit after
dividends, countered by an increase in the statutory deduction
for Danica. The total capital ratio was primarily affected by net
redemptions of additional tier 1 and tier 2 capital. The increase in
the statutory deduction for Danica was primarily driven by a
redemption of the EUR 500 million tier 2 instrument. This
reduced the Group's CET1 capital ratio by around 50 bps. With
the expected update to the implementation of the EU
conglomerate directive applicable from 1 January 2026, the
reduction in the CET1 capital ratio is expected to be temporary.
See the ‘New regulation’ section for additional information.
During the first nine months of 2025, the total REA decreased
DKK 16.4 billion, mainly due to a decline in the REAs for credit
risk and market risk, which was partially offset by increases in
the REA for operational risk.
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 end-September 2025, the Group’s solvency need ratio was
11.4%, up 0.2 percentage points from the level at end-2024.
A combined buffer requirement (CBR) applies to financial
institutions in addition to the solvency need ratio. At the end of
September 2025, the Group’s CBR was 8.2%, an 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 minimum requirement for own funds
and eligible liabilities (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, while the
subordination requirement was set at 29.5% of the total REA
adjusted for Realkredit Danmark.
From the third quarter of 2025, excess subordinated funds will,
all else equal, decrease by approximately DKK 15 billion as
Realkredit Danmark’s debt buffer requirement will be deducted
from subordinated funds. The overall MREL funds will remain
unchanged.
At the end of September 2025, the point-in-time requirement,
including the CBR, was equivalent to DKK 239 billion, or 37.2% 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 273 billion, corresponding to a buffer of DKK 34 billion in
relation to the requirement. In addition, an MREL of 6% of the
leverage ratio exposure (LRE) is in place. The LRE-based
requirement equalled 24.0% of the total REA adjusted for
Realkredit Danmark.
Capital ratios and requirements
(% of the total REA)
Capital ratios
CET1 capital ratio
Total capital ratio
Capital requirements (incl. buffers)
CET1 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
CET1 capital
Total capital
30 September
2025
18.7
22.4
14.8
2.0
2.5
0.7
3.0
11.4
19.6
3.9
2.8
The total capital requirement consists of the solvency need ratio
and the combined buffer requirement.
7
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
MREL requirement and eligible funds
(30 September 2025)
DKK billions (% of total REA)
273
(42.6%)
55
(8.5%)
75
(11.6%)
144
(22.4%)
239
(37.2%)
MREL including CBR
MREL funds
Preferred senior debt > 1 year
Non-preferred senior debt > 1 year
CET1, AT1, T2
MREL including CBR
Note: The requirement and eligible funds are adjusted for Realkredit
Danmark’s capital and debt buffer requirements.
8
Danske Bank / Interim report – first nine months 2025
Leverage ratio
At the end of September 2025, the Group’s leverage ratio was
4.7%.
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.
The Board of Directors will continue to review the capital targets
in view of regulatory developments in order to ensure a strong
capital position.
New regulation
The EU implementation of Basel IV, the CRR3, came into effect on
1 January 2025. The date on which the Fundamental Review of
the Trading Book (FRTB) rules take effect has, however, been
postponed and is now 1 January 2027.
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
affect the Group at the earliest in 2033, when the transitional
arrangements are set to expire.
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, subject to the approval of the Board
of Directors.
Danske Bank has strong capital and liquidity positions, and the
Board of Directors remains committed to our capital distribution
policy.
In the second quarter of 2025, Danish legislators adopted
legislation to the effect that the CRR3 output floor will not apply
to Danish subsidiaries of Danish groups, stating that Realkredit
Danmark will not be subject to the floor at the solo level. Further,
Danish legislators have also implemented the transitional
arrangement for exposures secured by residential real estate
property with regard to the output floor, which the Group thus
expects to apply. The new rules took effect on 1 July 2025.
With a view to further aligning with the EU conglomerate
directive, a legislative proposal has been presented to the Danish
parliament in October 2025. The proposed legislation is
envisioned to apply from 1 January 2026 and will, if adopted,
imply that the Danish implementation of the conglomerate
directive will be aligned with the EU standard.
At 30 September 2025, Danske Bank had bought back around
13.2 million shares for a total purchase amount of DKK 3.2 billion
(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 was 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 September 2025, Danske Bank was in compliance
with all threshold values. A separate report is available at
danskebank.com/ir.
Realkredit Danmark also complies with all threshold values.
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit ratings
The credit rating agencies did not change their ratings of or
outlooks for the Danske Bank Group in the third quarter of 2025.
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
third quarter of 2025.
9
Danske Bank / Interim report – first nine months 2025
Credit ratings
Danske Bank Group
30 September 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
ESG ratings
Danske Bank Group
30 September 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
-
-
-
-
-
-
-
-
-
-
-
-
-
-
A+/N2/Stable
-
-
S&P
AA-/A-1+
-
Scope
-
-
A+/A-1
A+/S-1+/Positive
A+/A-1/Stable
A+/S-1+/Positive
A-
BBB+
BBB-
A/Positive
BBB+/Positive
BBB-/Positive
-
-
-
A+/S-1+/Positive
-
A+/Positive
A/Stable
-
B
C+ Prime
BBB
Low Risk
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Update on debt collection case
Danske Bank is progressing in providing finalisation for
customers impacted by the debt collection case. The bank has
attempted to pay out compensation to approximately 90% of the
customers in scope for compensation (excluding estate case
customers). Since the finalisation of the estate case approach in
the first quarter of 2025, the bank has progressed well with pay-
outs to estate cases, which will continue during 2025. By the end
of 2025, the 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 development of the new debt collection system is
continuing, and the progress gradually enables the handling of
more case types and complexity.
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.
10
Danske Bank / Interim report – first nine months 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 them – online, 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 nine months 2025
Danica
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 and strong 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
Loans, excluding reverse transactions before
impairments
Allowance account, loans
Deposits, excluding repo deposits
Covered bonds issued
Allocated capital (average)
Net interest income as % p.a. of loans and
deposits*
Q1-Q3
2025
9,663
3,335
88
95
13,182
6,701
23
6,481
81
6,400
Q1-Q3
2024
10,704
3,589
118
75
14,485
7,242
113
7,243
-232
7,475
664,167
663,552
4,128
397,554
528,375
26,735
4,356
389,057
551,628
30,534
Index
25/24
90
93
75
127
91
93
20
89
-
86
100
95
102
96
88
Q3
2025
3,314
1,104
38
28
4,484
2,269
7
2,215
33
2,182
Q2
2025
3,118
1,021
26
29
4,193
2,292
9
1,901
-69
1,970
664,167
660,587
4,128
397,554
528,375
26,838
4,078
402,538
535,419
26,756
Index
Q3/Q2
106
108
146
97
107
99
78
117
-
111
101
101
99
99
100
1.24
1.39
1.27
1.19
Profit before loan impairment charges as % p.a. of
allocated capital
32.3
31.6
Profit before tax as % p.a. of allocated capital (avg.)
31.9
32.6
50.8
50.0
Cost/income ratio (%)
Full-time-equivalent staff
33.0
28.4
32.5
29.5
50.6
54.7
3,927
3,976
99
3,927
3,945
100
Q3
2024
3,613
1,069
46
42
4,770
2,377
41
2,394
-53
2,447
663,552
4,356
389,057
551,628
30,187
1.40
31.7
32.4
49.8
3,976
Index
25/24
92
103
83
67
94
95
17
93
-
89
100
95
102
96
89
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
99
3,806
* Net interest income as % p.a. of loans and deposits in 2024 excludes loans and deposits included in the sale of the personal customer business in Norway.
Fact Book Q3 2025 provides financial highlights at customer type level for Personal Customers. Fact Book Q3 2025 is available at danskebank.com/ir.
Personal Customers
Against the backdrop of a changing economic and geopolitical
landscape, we remained steadfast in our commitment to
supporting our personal customers in managing their finances
throughout the first nine months of 2025. In a period with low
consumer confidence and widespread uncertainty, activity
levels across the Nordic region were encouraging. In Denmark,
we continued to see good activity on the housing market, which
in turn yielded good momentum for our home finance products.
In Finland, the housing market showed signs of a slow recovery.
As customer activity and the number of loan applications
increased somewhat, we were able to slightly increase our home
finance volumes and market share over the first nine months of
the year. In Sweden, overall market activity remained low.
However, an increased focus on retention and partnerships
supported stable lending volumes in the first nine months of
2025.
Profit before tax amounted to DKK 6,400 million in the first nine
months of 2025 (Q1-Q3 2024: DKK 7,475 million). The decrease
was mainly due to a decline in net interest income caused by
both lower market rates and the divestment of the personal
customer business in Norway. In addition, we saw comparatively
lower net fee income, with half of the decrease attributable to
positive one-offs recognised in the first half of 2024 and the
other half to relatively lower refinancing activity and reduced
investment fee income. Generally, we saw a reduction in
investment fees due to geopolitical uncertainty and tariff
announcements during the first two quarters of 2025. Income
and operating expenses were affected by the divestment of the
personal customer business in Norway.
Business progress and initiatives
In the first nine months of 2025, we continued to strengthen our
position in our core markets, supported by the execution of
important strategic initiatives. Despite a challenging geopolitical
climate, the economic outlook remains positive across the
countries where we operate, with growth, inflation and interest
rates normalising. We are continuously working to deliver a
12
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
seamless and personalised customer experience through our
leading retail and private banking platforms.
In Denmark, we strengthened our digital self-service offerings
with the soft launch of an AI assistant in the Danske Mobile
Banking app, initially made available to 90,000 customers. By
combining technology with human advisory services, we enable
customers to handle their everyday banking business faster and
more conveniently. This is made possible through our
investments in and expertise with generative AI. The AI assistant
will be rolled out to all customers in Denmark during autumn
2025. Additionally, for new customers in Denmark, our
welcoming app has enabled over 6,000 customer onboardings
since the start of 2025. Launched in steps, the app became
available to all relevant customer groups in June 2025.
In Sweden, we enhanced the digital tools available to our
advisers by rolling out an AI solution. This tool supports our
advisers in preparing for meetings with the aim of further
increasing activity levels and improving the customer
experience. We also expanded the digital solutions in our
mortgage flow by streamlining income verification with the aim
of achieving easier application processing.
In Finland, we launched our new ‘Go aha’ campaign, which is a
multi-channel campaign promoting forward-looking
perspectives on financial well-being. Targeting young adults and
affluent urban residents, it is tightly aligned with our Forward ’28
strategy. Home finance volumes showed signs of improvement
in the third quarter as the Finnish housing market continued to
slowly recover. This contributed to our ability to grow both our
front and back book market shares in Finland.
Our private banking business continued to grow across
Denmark, Sweden and Finland, driven by increased customer
inflows and business volumes. In Denmark, strong net sales of
packaged investment products resulted in a growing market
share for Danske Invest retail funds.
Q1-Q3 2025 vs Q1-Q3 2024
Profit before tax decreased to DKK 6,400 million (Q1-Q3 2024:
DKK 7,475 million). The result was mainly driven by lower net
interest income, but also lower net fee income and increased
loan impairment charges.
13
Danske Bank / Interim report – first nine months 2025
Net interest income experienced a decline of 10% and amounted
to DKK 9,663 million (Q1-Q3 2024: DKK 10,704 million). Adjusted
for the personal customer business in Norway, the decrease was
6% as the first nine months of 2024 included DKK 444 million
related to the personal customer business in Norway. The
decline was mainly driven by lower market rates, which affected
margins and thus net interest income from deposits. The
decrease was somewhat mitigated by the Group’s hedging
strategy, including interest on shareholders’ equity.
Total lending increased from the level at the end of 2024. Across
Personal Customers in Denmark, including Private Banking, we
saw an increase in volumes related to home finance products
relative to the level at the end of 2024. For bank lending, there
was a positive currency exchange effect of DKK 3.4 billion,
contributing to a 4% increase, driven by the appreciation of the
Swedish krona. Bank lending in Swedish kronor remained flat,
indicating that the increase was exclusively due to the currency
effect.
Deposit volumes for personal customers increased 4% relative
to the level at the end of 2024. The growth in deposit volumes of
approximately DKK 14 billion primarily resulted from personal
customers increasing their savings. It was mainly driven by
Private Banking customers and was especially evident in
Denmark. Growth in deposit volumes was also impacted by
exchange rate developments, particularly the appreciation of the
Swedish krona, which had a positive impact of DKK 1.4 billion
relative to the end of 2024. In addition, we saw underlying
growth of 3% in our deposit base in Sweden. The same pattern
was evident for Finland, where deposit volumes increased 2%
relative to the end of 2024.
Net fee income decreased to DKK 3,335 million (Q1-Q3 2024:
DKK 3,589 million). The decrease was due to positive one-offs in
the first nine months of 2024 in the amount of DKK 128 million
mainly related to new vendor agreements. The rest of the
decrease was due to a decline in financing fee income mainly
driven by lower refinancing activity at Realkredit Danmark and a
shift of lending activity to the Danske Bolig Fri home loan.
Investment fee income decreased 3% relative to the first three
quarters of 2024. The decline reflects relatively subdued
investment activity in the first half of 2025 as a result of political
tension earlier in the year. This tension has since eased in step
with additional clarity on tariffs announced by the US
administration, which contributed to increased investment fee
income in the third quarter. However, the impact on activity
earlier in the year continued to weigh on overall performance for
the first nine months of 2025. Net fee income for the first nine
months of 2024 included DKK 79 million related to the personal
customer business in Norway.
Net trading income was down to DKK 88 million (Q1-Q3 2024:
DKK 118 million) but the year-on-year development was flat
when adjusted for the divestment of the personal customer
business in Norway.
Other income increased to DKK 95 million (Q1-Q3 2024: DKK 75
million), mainly because of miscellaneous business partner
payments.
Operating expenses decreased to DKK 6,701 million (Q1-Q3
2024: DKK 7,242 million). Adjusted for the personal customer
business in Norway, costs remained stable.
Credit quality remained strong, with average loan-to-value levels
remaining low.
Loan impairments charges amounted to DKK 81 million in the
first nine months of 2025, an increase relative to a net reversal
of DKK 232 million in the first nine months of 2024. Impairment
charges were primarily influenced by rating migration.
Credit exposure
Net credit exposure from lending activities amounted to DKK 737
billion at the end of the third quarter of 2025, an increase from
DKK 717 billion at the end of 2024, mainly due to increased
exposure in Personal Customers Sweden and Denmark.
Q3 2025 vs Q2 2025
Profit before tax increased to DKK 2,182 million in the third
quarter of 2025 (Q2 2025: DKK 1,970 million). The increase
was driven by higher net interest income as well as higher net
fee income on the back of increased activity.
• Net interest income saw a 6% increase from the preceding
quarter and amounted to DKK 3,314 million (Q2 2025: DKK
3,118 million). The increase in deposit margins reflected
higher internal interest rate risk management income
allocation from Group Treasury. Overall, we saw an 11%
increase in net interest income on deposits.
• Net fee income increased 8% from the preceding quarter
and amounted to DKK 1,104 million (Q2 2025: DKK 1,021
million) as a result of increased activity. Investment fee
income increased as a result of investment activity picking
up as trade tensions subsided. As investment activity
increased in step with improved market conditions, total
asset under management (AuM) increased from the level at
the end of the second quarter of 2025.
• Operating expenses were stable relative to the preceding
quarter and amounted to DKK 2,269 million (Q2 2025: DKK
2,292 million).
• The third quarter of 2025 saw limited loan impairment
charges of DKK 33 million (Q2 2025: net reversal of DKK 69
million), indicating stable credit quality.
• Net credit exposure from lending activities amounted to
DKK 737 billion at the end of the third quarter of 2025, an
increase from DKK 723 billion at the end of the second
quarter of 2025, driven primarily by an increase in Personal
Customers Denmark.
Profit before tax
DKK 2,182 million
for the third quarter of 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-Q3
2025
8,793
1,820
23
336
10,972
4,167
61
6,804
-594
7,399
Q1-Q3
2024
8,682
1,680
17
521
10,900
3,949
170
6,951
265
6,686
Loans, excluding reverse transactions before
impairments
691,841
664,074
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
8,980
248,206
406,641
46,678
1.26
19.4
21.1
38.0
9,623
244,904
387,715
42,115
1.29
22.0
21.2
36.2
Index
25/24
101
108
135
64
101
106
36
98
-
111
104
93
101
105
111
Q3
2025
2,947
591
6
83
3,627
1,392
20
2,235
-79
2,314
Q2
2025
2,876
597
6
119
3,599
1,408
22
2,191
-67
2,257
691,841
683,830
8,980
248,206
406,641
47,020
1.26
19.0
19.7
38.4
9,151
246,558
393,407
47,034
1.24
18.6
19.2
39.1
Index
Q3/Q2
102
99
100
70
101
99
91
102
118
103
101
98
101
103
100
Q3
2024
2,912
509
-1
122
3,541
1,322
58
2,219
-326
2,545
664,074
9,623
244,904
387,715
42,315
1.29
21.0
24.1
37.3
Index
25/24
101
116
-
68
102
105
34
101
24
91
104
93
101
105
111
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
Fact Book Q3 2025 provides financial highlights at customer type level for Business Customers. Fact Book Q3 2025 is available at danskebank.com/ir.
1,774
1,728
103
1,774
1,750
101
1,728
103
1,731
Business Customers
In the first nine months of 2025, Business Customers continued
to deliver on our strategic ambitions, achieving a solid
development in the financial results for the third quarter in line
with the progress seen in the first half of the year. Despite a
challenging market environment, we remained committed to
supporting our customers across all four Nordic countries by
introducing initiatives to enhance their business growth and
success. This reinforces our role as a strategic financial partner
in alignment with our Forward ’28 strategy.
In the first nine months of 2025, profit before tax amounted to
DKK 7,399 million, an increase of 11% from the same period last
year (Q1-Q3 2024: DKK 6,686 million). The increase was driven
by loan impairment reversals. Net fee income also increased,
although the effect was offset by lower other income from our
leasing operations.
Business progress and initiatives
In the first nine months of 2025, we continued to see solid
progress with strong customer inflows and lending growth,
particularly in the mid-sized customer segment. Additionally, our
business with subsidiaries of international and venture-backed
companies continued to grow, underlining the strength of our
offerings and our ability to attract new customers in these key
segments in line with our strategic objectives.
Continuing our dedication to supporting our customers across all
four Nordic countries, we introduced new initiatives aimed at
strengthening our advisory services. As part of our efforts, we
updated our corporate CRM system to provide enhanced
customer insights, enabling us to better address customer
needs and preferences. This improvement allows us to enhance
the customer experience while streamlining the sales process.
Furthermore, we launched a new feature in our customer
overview platform in Denmark that enables commercial real
estate advisers to access comprehensive mortgage and
property data at the group level.
14
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
This innovation streamlines workflows, enhances advisory
quality and supports our Forward '28 strategy by freeing up time
for customer engagement and driving growth in the competitive
real estate market. Plans are underway to expand the customer
overview platform to other markets, starting with Sweden in late
2025, to further support our strategic goals.
Additionally, we launched the District Mobile app in Norway to
replace the old application, and we onboarded approximately
7,000 customers to the new platform. The new app enhances
the business customer experience with improved functionality
and a seamless transition to District. The phased roll-out enables
continuous communication with customers and marks a
significant step in our digital transformation efforts. Finally, we
continue to develop and adopt GenAI solutions to further
enhance our productivity.
Q1-Q3 2025 vs Q1-Q3 2024
Profit before tax amounted to DKK 7,399 million (Q1-Q3 2024:
DKK 6,686 million). The increase was driven by loan impairment
reversals and increases in net interest income and net fee
income, although the effect of the income increases was partly
offset by lower income from our leasing operations.
Net interest income increased 1%, amounting to DKK 8,793
million (Q1-Q3 2024: DKK 8,682 million) as a result of increased
activity, higher lending volumes and increased allocation from
Group Treasury related to the Group’s hedging strategy,
including interest on shareholders’ equity. Conversely, income
from deposits was adversely affected by lower market rates.
Net fee income increased to DKK 1,820 million (Q1-Q3 2024:
DKK 1,680 million). The increase was primarily driven by a rise in
everyday banking fee income attributable to both increased
customer activity and repricing actions.
Other income decreased to DKK 336 million (Q1-Q3 2024:
DKK 521 million). The decrease was caused by lower income
from the sale of used assets in our leasing units, as prices of
used cars have normalised.
Operating expenses amounted to DKK 4,167 million, an increase
of 6% relative to the level in the first nine months of 2024. The
increase was caused by investments made in accordance with
our Forward ’28 strategy combined with a generally higher cost
level as a result of inflation.
Supported by our strategy execution, we saw an increase in bank
lending volumes of 6% relative to the level at the end of 2024,
with growth (in local currency) driven by our activities in Sweden
and Norway. Our activities in Finland and Denmark also
contributed positively. Furthermore, volume growth benefitted
from exchange rate developments, with a positive impact of
DKK 5.7 billion relative to the level at the end of 2024.
Deposit volumes totalled DKK 248 billion, which was a decrease
of 1% relative to the level at the end of 2024 (end-2024: DKK 251
billion). There was a positive impact from currency exchange
rates of DKK 2.4 billion in total. In local currency, we saw an
increase in deposit volumes in Denmark, while the development
in Finland was stable. Meanwhile, we saw a decline in both
Norway and Sweden. In Norway, a significant portion of the
deposit outflow was attributable to public-sector volumes.
Nominal Realkredit Danmark mortgage volumes increased 2%
relative to the level at the end of 2024, with most of the increase
being driven by commercial property lending. Combined with the
increase in bank lending, this resulted in a 4% lift in total lending
volumes after fair value adjustments at the end of the first nine
months of 2025.
Credit quality remained broadly stable despite continued
geopolitical uncertainty and tension in the trade environment.
Global economic conditions have demonstrated resilience, and
inflation has returned to the ECB’s target rate, which supports
the stable development in credit quality.
Loan impairments resulted in a net reversal of DKK 594 million in
the first nine months of 2025, in contrast to a net charge in the
first nine months of 2024. Impairments for the first nine months
of 2025 primarily benefitted from a reduction in the post-model
adjustments related to commercial property and construction.
Credit exposure
Net credit exposure from lending activities increased to DKK 795
billion at the end of the third quarter of 2025 (end-2024 DKK 768
billion). The increase was primarily driven by an increase in
exposure to the Private housing co-ops. & non-profit
associations, Services, and Commercial property segments,
partially countered by a decrease in the Public institutions
segment.
Q3 2025 vs Q2 2025
Profit before tax increased to DKK 2,314 million in the third
quarter of 2025 (Q2 2025: DKK 2,257 million) due to an
increase in net interest income combined with a higher net
loan impairment reversal than in the second quarter of 2025.
Net interest income increased 2% to DKK 2,947 million (Q2
2025: DKK 2,876 million) due to higher internal interest rate
risk management income allocation from Group Treasury.
Net fee income decreased 1% to DKK 591 million (Q2 2025:
DKK 597 million) due to lower income from financing
activities.
Other income amounted to DKK 83 million (Q2 2025: DKK 119
million), with the decrease caused by lower income from the
sale of used assets in our leasing units.
Operating expenses decreased 1% to DKK 1,392 million (Q2
2025: DKK 1,408 million) relative to the preceding quarter due
to a higher investment spend in the second quarter of 2025
as part of the Forward ’28 strategy.
The third quarter of 2025 saw a net loan impairment reversal
of DKK 79 million (Q2 2025: net reversal of DKK 67 million).
The reversal was mainly due to a decrease in post-model
adjustments.
Profit before tax
DKK 2,314 million
for the third quarter of 2025
15
Danske Bank / Interim report – first nine months 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)
Q1-Q3
2025
6,124
5,230
1,872
4
13,230
5,461
90
7,769
691
7,079
336,594
307,154
2,608
303,367
283,125
28,006
40,817
Q1-Q3
2024*
5,212
4,964
1,884
1
12,061
5,435
345
6,626
-403
7,029
296,041
274,166
1,944
299,839
282,026
28,289
40,455
Index
25/24
117
105
99
-
110
100
26
117
-
101
114
112
134
101
100
99
101
Q3
2025
2,027
1,727
578
1
4,332
1,843
30
2,489
-46
2,535
Q2
2025
2,036
1,738
532
-1
4,305
1,799
33
2,506
316
2,190
336,594
307,154
2,608
303,367
283,125
28,006
40,186
331,834
296,069
2,868
315,869
292,630
27,105
41,547
Net interest income as % p.a. of loans and deposits
1.25
1.16
1.28
1.25
Profit before loan impairment charges as % p.a. of
allocated capital
25.4
21.8
Profit before tax as % p.a. of allocated capital (avg.)
23.1
23.2
Cost/income ratio (%)
Full-time-equivalent staff
41.3
45.1
2,234
2,115
106
24.8
25.2
42.5
2,234
24.1
21.1
41.8
2,187
* Comparative information for Q3 2024 has been restated as described in note G2(b).
Index
Q3/Q2
100
99
109
-
101
102
91
99
-
116
101
104
91
96
97
103
97
102
Q3
2024*
1,717
1,698
598
-
4,013
1,883
111
2,130
110
2,020
296,041
274,166
1,944
299,839
282,026
28,289
40,357
1.16
21.1
20.0
46.9
2,115
Index
25/24
118
102
97
-
108
98
27
117
-
125
114
112
134
101
100
99
100
106
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 nine months of 2025, we continued to see a stable
development with solid financial results in an uncertain
geopolitical environment. With our strong balance sheet, we
remain well-positioned to support our customers. Our efforts to
attract new corporate customers outside Denmark and to
strengthen customer relations across our markets have been
successful, and we continue to improve our position within cash
management.
Profit before tax increased to DKK 7,079 million (Q1-Q3 2024:
DKK 7,029 million), with the increase primarily driven by a rise in
net interest income that was, however, partly offset by higher
loan impairment charges. Additionally, the return on allocated
capital after impairments decreased slightly to 23.1%, against
23.2% in the first nine months of 2024.
Business progress and initiatives
In the first nine months of the year, we saw continually strong
momentum in our Debt Capital Markets and Loan Capital
Markets business. In the third quarter, the summer period
brought a seasonal slowdown, however, debt capital markets
picked up again to capitalise on the attractive market conditions
for bond issuance across currencies.
Among many highlights in the third quarter, we were pleased to
support our customers in several successful, oversubscribed
bond transactions, such as Saab AB’s SEK 2 billion bond issue,
BoldR Group’s EUR 110 million bond issue and Nordic Investment
Bank’s DKK 2 billion international bond issue, all evidence of
significant investor interest in the market. Furthermore, we
supported KfW as arranger of green bond issues in all three
Scandinavian currencies.
Loan Capital Markets activity remained robust, with good
momentum in corporate lending business and in the structured
lending business within Leveraged Finance and Fund Finance,
supporting a key customer segment in line with our Forward ’28
16
Danske Bank / Interim report – first nine months 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-Q3
2025
6,739
4,275
-42
1,731
16
485
Q1-Q3
2024
6,348
3,447
60
1,747
77
520
Index
25/24
106
124
-
99
21
93
Q3
2025
2,249
1,318
38
643
32
122
Q2
2025
2,124
1,501
-9
523
5
157
13,230
12,061
110
4,332
4,305
Index
Q3/Q2
106
88
-
123
-
78
101
Q3
2024
2,099
1,130
14
617
28
168
4,013
Index
25/24
107
117
271
104
114
73
108
Full year
2024
8,699
4,641
30
3,201
729
825
17,365
574,673
379,047
953,721
497,837
363,514
861,351
115
104
111
574,673
379,047
953,721
544,624
358,299
902,923
106
106
106
497,837
363,514
861,351
115
104
111
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 PnL result of the xVA desk is thus the combined effect of the net xVA position and funding and collateral costs of the
trading book.
** Includes assets under management from Group entities.
ambitions. In league table rankings for loan capital markets, we
were proud to achieve a top two position in the Nordic countries.
Within M&A, market activity in the Nordic countries slowly
started to pick up relative to the same period last year, leading to
higher fee income in the third quarter.
In Equity Capital Markets, we are proud to be the only Nordic
bank involved as joint global coordinator in the largest capital-
raising transaction in the Nordic countries ever – Ørsted’s DKK 60
billion rights issue. The transaction was highly successful for the
company. In the third quarter, we also strengthened our Nordic
advisory team by adding highly skilled professionals with strong
expertise to support customers in raising capital through
equities as primary market activity picks up. We were pleased to
support Nordic Semiconductor in its NOK 1 billion private
placement and Hexagon Composites in its NOK 588 million
private placement.
Within Asset Management, we are pleased to report record-high
assets under management figures, strong net sales and a robust
investment performance, all of which contribute to an increased
market share for Danske Invest in Denmark. Additionally, we
have made significant progress with simplifying our value chain,
and we continue to expand sustainability training for our
employees in order to maintain our position as a leader in
external certifications among asset managers in the region.
Q1-Q3 2025 vs Q1-Q3 2024
Profit before tax increased to DKK 7,079 million (Q1-Q3 2024:
DKK 7,029 million), with the increase driven by increases in net
interest income and net fee income, although higher loan
impairment charges had a partly offsetting effect. Profit before
loan impairment charges increased 17% relative to the level in
the first nine months of 2024.
Net interest income increased to DKK 6,124 million (Q1-Q3 2024:
DKK 5,212 million), primarily driven by higher interest income
from lending activities and increased allocation from Group
Treasury related to the Group’s hedging strategy, including
interest on shareholders’ equity. This increase was partly
countered by lower interest income from deposits. Lending
volumes in General Banking increased 14% from the level at the
end of 2024 and were primarily driven by corporate customers
in Sweden and Denmark.
17
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
18
Danske Bank / Interim report – first nine months 2025
Net fee income increased to DKK 5,230 million (Q1-Q3 2024:
DKK 4,964 million) as we saw an increase in fee income in most
areas, primarily from everyday banking services. Furthermore,
we continued to increase our market share within cash
management in the first nine months of 2025 by adding 19 new
house bank mandates. Assets under management reached
DKK 954 billion in the first nine months of 2025, marking an all-
time high, despite the negative market developments in March
and April. This growth was driven not only by a rebound in asset
prices but also a robust development in net sales in the
institutional and private banking segments.
Net trading income was stable at DKK 1,872 million (Q1-Q3 2024:
DKK 1,884 million).
Operating expenses increased slightly to DKK 5,461 million (Q1-
Q3 2024: DKK 5,435 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.
Overall credit quality remained strong and has proven to be
resilient to the geopolitical uncertainty. Loan impairments for the
first nine months of 2025 amounted to a net charge of DKK 691
million, marking an increase relative to the net reversal for the
first nine months of 2024. The charges were mainly driven by
single-name exposures as well as a higher proportion of post-
model adjustments.
Credit exposure
Net credit exposure from lending activities amounted to DKK 670
billion in the first nine months of 2025, against DKK 688 billion at
the end of 2024. The decrease was primarily driven by a
decrease in exposure to the Financials and Public institutions
segments, although the effect was largely countered by an
increase in exposure to the Services, Consumer goods, and
Metals and mining segments.
Q3 2025 vs Q2 2025
Profit before tax increased to DKK 2,535 million (Q2 2025:
DKK 2,190 million), primarily due to lower loan impairments.
• Net interest income decreased slightly to DKK 2,027 million
(Q2 2025: DKK 2,036 million) due to lower income from
other interest items. This decrease was partly offset by an
increase in interest income from deposits.
• Net fee income decreased slightly to DKK 1,727 million (Q2
2025: DKK 1,738 million).
• Net trading income increased to DKK 578 million (Q2 2025:
DKK 532 million) due to higher secondary customer
activity.
• Operating expenses increased slightly to DKK 1,843 million
(Q2 2025: DKK 1,799 million) as a result of higher
provisions for performance-based compensation, although
the increase was partially offset by lower technology
transformation costs.
• The third quarter of 2025 saw a net loan impairment
reversal of DKK 46 million (Q2 2025: net charge of DKK 316
million). The net impairment reversal was mainly
attributable to single-name exposures.
Profit before tax
DKK 2,535 million
for the third 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)
Q1-Q3
2025
256
803
38
Q1-Q3
2024
393
935
79
1,097
1,407
548,061
522,851
28,225
20,128
26,264
20,152
Net income as % p.a. of allocated capital
7.3
9.3
199
216
Index
25/24
65
86
48
78
105
107
100
-
-
Q3
2025
249
125
9
382
Q2
2025
274
222
17
513
548,061
539,333
28,225
20,233
27,232
19,871
7.6
10.3
199
217
Index
Q3/Q2
91
56
53
74
102
104
102
-
-
Q3
2024
-68
514
13
459
522,851
26,264
20,392
9.0
216
Index
25/24
-
24
69
83
105
107
99
-
-
-
Full year
2024
260
1,033
94
1,387
543,817
26,800
20,219
6.9
207
940
984
920
107
984
971
101
920
Solvency coverage ratio
Full-time-equivalent staff
Asset under management
(DKK millions)
Total
Premiums
(DKK millions)
500,843
479,900
104
500,843
486,743
103
479,900
104
486,956
Gross premiums, Denmark
38,435
32,483
118
12,890
13,435
96
10,914
118
43,643
Danica
Net income at Danica decreased to DKK 1,097 million in the first
nine months of 2025, down 22% from the level for the same
period in 2024. Both the insurance service result and the net
financial result decreased relative to the same period in 2024.
The net financial result was affected by the development in the
financial markets being less favourable for Danica in 2025
compared to 2024. The insurance service result benefitted from
an improvement in the result of the health and accident business
but was adversely impacted by a strengthening of provisions
related to legacy life insurance products in run-off in the first
quarter of 2025.
Danica has seen fewer claims relating to loss of earning capacity
in 2025 than in the same period in 2024. The positive
development is attributable to Danica’s long-term investments
in preventive efforts. These efforts consist of providing effortless
digital access, a broadened healthcare offering and early-access
healthcare solutions that enable customers to utilise the
solutions in both the early and later stages of their recovery.
The investment return on our pension customers’ savings was
moderately positive, benefitting from our strong diversification
strategy.
In the third quarter of 2025, Danica called a subordinated loan of
EUR 500 million, which lowered the solvency coverage ratio.
19
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Business initiatives
Danica has implemented stricter criteria for investment in
companies involved in fossil fuel activities. This has resulted in
divestment from certain companies and an increased focus on
investing in those with solid plans to transition to more
sustainable ways of operating. This initiative aims to secure
competitive long-term returns for customers while supporting
responsible investment practices.
The evaluation process is based on the Net-Zero Pathway
Framework model developed with Danske Bank, which uses
independent climate data to identify companies that
demonstrate strong leadership in emissions management and
alignment with the Paris Agreement.
Q1-Q3 2025 vs Q1-Q3 2024
Net income at Danica amounted to DKK 1,097 million (Q1-Q3
2024: DKK 1,407 million). The decrease was due to a decline in
both the net financial result and the insurance service result,
which was 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 DKK 256 million (Q1-
Q3 2024: DKK 393 million), partly due to the above-mentioned
strengthening of provisions related to legacy life insurance
products in run-off in the first quarter of 2025 and partly to an
increase in discounts on life insurance products that are offered
to customers to offset some of the effect of the increase in
health and accident premiums. The health and accident business
improved its result by DKK 401 million relative to the same
period last year but still recorded a loss for the first nine months
of 2025 of DKK 275 million. The improvement was driven, among
other things, by positive effects from the treatment and
prevention of long-term illness and injury and intensified efforts
with new healthcare solutions and improved digital solutions.
Furthermore, the health and accident business benefitted from a
decline in the number of reported claims and pricing
adjustments, but this was partly offset by the aforementioned
discounts on life insurance products. Danica continues to work
towards achieving an equilibrium in the health and accident
business.
The net financial result decreased to DKK 803 million (Q1-Q3
2024: DKK 935 million) due to a decrease in the investment
returns attributable to shareholders’ equity. The developments
in the financial markets were not as favourable in 2025 as in
2024.
Assets under management showed an increase of DKK 21 billion
from the year-earlier period following the positive developments
in the financial markets in the last quarter of 2024 and second
and third quarters of 2025, which more than countered the
negative developments in the first quarter of 2025.
Total premiums, including both life insurance and the health and
accident business, increased 18% from the level in the same
period in 2024. The increase for life insurance premiums
included an increase in both single and regular premiums.
Q3 2025 vs Q2 2025
Net income at Danica decreased to DKK 382 million (Q2 2025:
DKK 513 million), primarily due to a decrease in the net
financial result.
• The insurance service result decreased to DKK 249 million
(Q2 2025: DKK 274 million) due to a decrease in the result
of the health and accident business, which was partly
offset by an increase in income from life insurance
products. The health and accident business contributed a
negative result of DKK 71 million (Q2 2025: DKK 23 million)
in the third quarter of 2025.
• The net financial result decreased in the third quarter of
2025 and amounted to DKK 125 million (Q2 2025: DKK 222
million). The development was caused by a decrease in the
investment return attributable to shareholders’ equity.
• Total premiums decreased 4% following a decrease in
single premiums from life insurance.
• Assets under management increased DKK 14 billion,
primarily due to the positive developments in the financial
markets in the third quarter of 2025.
Net income at Danica
DKK 382 million
for the third quarter of 2025
20
Danske Bank / Interim report – first nine months 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
Loans, excluding reverse transactions before
impairments
Allowance account, loans
Deposits, excluding repo deposits
Allocated capital (average)*
Q1-Q3
2025
2,487
230
133
9
2,859
1,172
1,687
82
1,606
Q1-Q3
2024
2,211
238
129
8
2,585
1,141
1,444
-62
1,506
68,921
64,002
720
752
113,230
106,712
6,897
6,392
Index
25/24
112
97
103
113
111
103
117
-
107
108
96
106
108
Net interest income as % p.a. of loans and deposits
1.82
1.75
Profit before tax as % p.a. of allocated capital (avg.)
31.0
31.4
41.0
44.1
Cost/income ratio (%)
Full-time-equivalent staff
*Allocated capital equals the legal entity’s capital.
Q3
2025
846
78
38
2
965
397
568
73
495
Q2
2025
836
77
45
3
960
393
566
58
509
68,921
66,839
720
718
113,230
111,403
7,093
1.84
27.9
41.1
6,918
1.81
29.4
40.9
Index
Q3/Q2
101
101
84
67
101
101
100
126
97
103
100
102
103
Q3
2024
768
82
50
3
902
399
503
-65
568
64,002
752
106,712
6,724
1.76
33.8
44.2
Index
25/24
110
Full year
2024
3,025
95
76
67
107
99
113
-
87
108
96
106
105
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
1,247
1,248
100
1,247
1,242
100
1,248
100
1,261
Northern Ireland
Our focus is to remain a strong bank, consolidating our market-
leading position in Northern Ireland alongside pursuing low-cost
growth opportunities in the rest of the UK. Financial performance
remained positive with profit before tax of DKK 1,606 million in
the first nine months of 2025, 7% 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
digitalisation, customer journeys, sustainability, and simplicity
and efficiency.
In both personal and business banking in Northern Ireland, we
are focused on growing our active customer base. In the first
nine months of the year, we welcomed over 10,000 new
personal current account customers, while in business banking,
we acquired over 1,200 new to bank customers to our Danske
Bank Small Business Digital Current Account.
21
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
22
Danske Bank / Interim report – first nine months 2025
Q3 2025 vs Q2 2025
The third quarter of 2025 saw profit before tax of DKK 495
million (Q2 2025: DKK 509 million).
• Net interest income increased to DKK 846 million (Q2 2025:
DKK 836 million), with the increase driven by a combination
of balance sheet growth and hedging actions.
• Net fee income was marginally higher and stood at DKK 78
million (Q2 2025: DKK 77 million).
• Net trading income amounted to DKK 38 million (Q2 2025:
DKK 45 million), reflecting mark-to-market movements on
a hedging portfolio.
• Operating expenses were up slightly, amounting to
DKK 397 million (Q2 2025: DKK 393 million). The third
quarter included restructuring costs of DKK 8 million that
will deliver future savings.
• Loan impairment charges saw a small increase in the third
quarter and amounted to DKK 73 million (Q2 2025: DKK 58
million) with underlying credit quality remaining solid.
Q1-Q3 2025 vs Q1-Q3 2024
Profit before tax increased 7% to DKK 1,606 million (Q1-Q3 2024:
DKK 1,506 million). Profit before loan impairments increased
17%. Loan impairment charges increased relative to the level in
the first nine months of 2024, which included a net impairment
reversal.
Net interest income increased to DKK 2,487 million (Q1-Q3 2024:
DKK 2,211 million), driven by balance sheet growth supported by
the impact of hedging activity. Customer lending and deposits
were 8% and 6% higher, respectively, year-on-year.
Net fee income was marginally lower year-on-year and stood at
DKK 230 million (Q1-Q3 2024: DKK 238 million).
Net trading income rose in the first nine months of 2025 to
DKK 133 million (Q1-Q3 2024: DKK 129 million). Both periods
include positive mark-to-market movements on a hedging
portfolio, reflecting a combination of changing market
expectations for UK interest rates and the rollover of the hedging
portfolio.
Operating expenses increased to DKK 1,172 million (Q1-Q3 2024:
DKK 1,141 million), reflecting increased employer taxation costs,
restructuring costs, inflation and higher costs for technology-
related services provided by the Group. The bank has a
continued cost and efficiency focus across local and Group cost
drivers.
Credit quality remained strong, with a loan impairment charge of
DKK 82 million in line with expectations. This compares to a net
reversal in the same period last year (Q1-Q3 2024: net reversal
of DKK 62 million).
Profit before tax
DKK 495 million
for the third 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-Q3
2025
91
-47
246
-17
272
1,489
58
-1,216
-1
-1,216
Q1-Q3
2024
642
-66
-38
-140
397
1,278
54
-881
-5
-876
10,054
10,069
716
-80
4
-1,919
63
-1,216
1,114
-194
-2
-1,857
63
-876
Index
25/24
14
71
-
12
69
117
107
138
20
139
100
64
41
-
103
100
139
Q3
2025
-61
2
-34
-3
-95
419
19
-514
11
-525
Q2
2025
Index
Q3/Q2
198
-25
246
-4
415
486
20
-71
-21
-50
-
-
-
75
-
86
95
-
-
-
Q3
2024
155
-28
40
-26
141
248
18
-107
-2
-105
Index
25/24
-
-
-
12
-
169
106
-
-
-
Full year
2024
1,032
-121
-16
-216
679
1,421
71
-742
-2
-740
10,054
10,108
99
10,069
100
10,050
104
-29
2
-602
-
-525
554
-20
1
-647
61
-50
19
145
200
93
-
-
439
-38
-1
-502
-2
-105
24
76
-
120
-
-
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 nine months of 2025, the loss before tax increased to
DKK 1,216 million (Q1-Q3 2024: loss of DKK 876 million). Net
trading income increased to DKK 246 million (Q1-Q3 2024: loss
of DKK 38 million), driven by positive fair value adjustments in
Group Treasury, while net interest income decreased to DKK 91
million (Q1-Q3 2024: DKK 642 million). Higher income from
interest rate risk management in Group Treasury was
outweighed by allocation of equity interest to the business units
and lower allocation income from funds transfer pricing. At the
group level, the effect of these internal allocation developments
was neutral.
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.
We are executing our strategic priorities at pace, further
strengthening our ability to deliver value to customers and
partners. This progress is supported by continued
enhancements to productivity and cost efficiency, driven by our
digital and technological transformation.
We have deployed additional generative AI (GenAI) solutions and
are actively scaling GenAI capabilities. Tools such as our in-
house solution, DanskeGPT, GitHub Copilot and Microsoft 365
Copilot are embedded in daily operations, enhancing employee
productivity and operational efficiency.
23
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Furthermore, the first nine months of 2024 included an
insurance reimbursement of DKK 179 million.
The number of full-time-equivalent staff was 10,054 (end-Q1-Q3
2024: 10,069).
Our cloud migration programme continues to progress ahead of
schedule, with applications successfully migrated to and
optimised on Amazon Web Services (AWS). We are reducing
mainframe consumption, modernising platforms and
decommissioning legacy applications, thereby lowering
complexity and technology run costs.
We remain steadfast in our commitment to safeguarding
operations and protecting customers through robust
cybersecurity measures and ongoing vigilance against external
threats.
Q1-Q3 2025 vs Q1-Q3 2024
The result at Group Functions was a loss before tax of DKK 1,216
million (Q1-Q3 2024: loss of DKK 876 million).
Net interest income decreased to DKK 91 million (Q1-Q3 2024:
DKK 642 million), with an increase in interest rate risk
management income from fixed-rate lending hedging and bond
portfolios being more than offset by interest on shareholders’
equity 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 a lower placement rate on shareholders’ equity. There was a
decrease in Internal Bank income from the allocation of interest
rate risk management income to the business units related
primarily to the hedging of the interest rate risk on deposits.
Net trading income related to market value adjustments
improved and amounted to a gain of DKK 246 million (Q1-Q3
2024: loss of DKK 38 million), primarily due to positive market
value adjustments of cross-currency swaps in Group Treasury
held for funding purposes and at fair value.
Other income improved and amounted to a loss of DKK 17 million
(Q1-Q3 2024: loss of DKK 140 million) due to a reduction in
negative value adjustments of holdings in associates.
Operating expenses, after allocation to the business units,
increased to DKK 1,489 million (Q1-Q3 2024: DKK 1,278 million).
Operating expenses were affected mainly by higher costs related
to digitalisation, with the effect being partly offset by increased
capitalisation of costs related to internally developed software.
Q3 2025 vs Q2 2025
Group Functions saw an increased loss before tax of DKK 525
million (Q2 2025: loss of DKK 50 million). The increase was
mainly due to lower net interest income and a decrease in net
trading income, both related to activities in Group Treasury.
• Net interest income decreased to an expense of DKK 61
million (Q2 2025: income of DKK 198 million). Interest rate
risk management income increased in Group Treasury, but
this increase was more than offset by a decrease in
Internal Bank income from allocations, among other things
due to an increase in interest rate risk management
income allocated to the business units through an
allowance within funds transfer pricing for retail and
corporate demand deposits.
• Net fee income increased to DKK 2 million (Q2 2025: net
expense of DKK 25 million) due to lower fee expenses for
securities trading.
• Net trading income decreased to a loss of DKK 34 million
(Q2 2025: income of DKK 246 million), among other things
due to lower income from Group Treasury related to
funding and hedging activities. Furthermore, the second
quarter included a one-off gain of DKK 57 million related to
the sale of Norwegian financial institution Eksportfinans.
• Operating expenses, after allocation to the business units,
decreased to DKK 419 million (Q2 2025: DKK 486 million),
affected by various staff-related items.
Profit before tax
DKK -525 million
for the third quarter of 2025
24
Danske Bank / Interim report – first nine months 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 3,528 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 1.29% (2024: 1.33%) due
to the daily average of the sum of loans and deposits being DKK 3.4 billion higher
(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 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 258 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 19.8 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 996.3 billion (2024: DKK 921.9 billion), Loans
at fair value of DKK 749.5 billion (2024: DKK 755.2 billion), and guarantees of DKK 97.7
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 nine months 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
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
38
39
39
41
42
45
26
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Income statement – Danske Bank Group
Statement of comprehensive income – Danske Bank Group
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
Q1-Q3
2025
16,730
Q1-Q3
2024
17,634
Q3
2025
5,520
Q3
Full year
2024
6,165
2024
23,629
-32
4
-36
1,324
-539
-62
3
221
505
470
85
-1
86
-988
331
714
75
24
107
194
17
4
13
348
-110
-148
4
49
44
57
43
-4
47
-175
16
941
35
210
607
654
54
14
40
-1,613
635
479
73
-113
-313
-273
17,200
17,827
5,577
6,820
23,356
* A positive amount is a tax expense, and a negative amount is a tax income.
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
Q1-Q3
2025
40,658
15,640
29,141
27,157
12,549
1,981
10,568
2,362
4,648
4,392
Q1-Q3
2024
46,380
14,254
33,182
27,452
13,718
3,315
10,403
2,110
4,320
3,891
Q3
2025
12,723
5,134
8,783
9,074
4,152
650
3,502
626
1,626
1,377
Q3
2024
16,546
4,354
11,736
9,165
4,467
1,138
3,329
733
1,317
1,375
63,022
17,504
43,829
36,697
19,463
4,551
14,912
2,668
5,869
5,609
Net return on investments backing insurance liabilities
Net finance income or expense from insurance
16,630
-15,827
36,634
-35,699
12,761
-12,637
12,424
-11,910
44,001
-42,968
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)
38
1,097
428
428
41,613
18,990
22,622
258
22,364
5,634
16,730
43
1,407
464
464
41,836
19,046
22,790
-436
23,227
5,593
17,634
9
382
111
111
3
459
140
140
13,696
13,826
6,320
7,376
-8
7,384
1,864
5,520
6,228
7,598
-337
7,935
1,770
6,165
20.2
20.7
20.2
20.7
6.7
6.7
7.2
7.2
-
7.5
-
-
94
1,387
741
741
56,405
25,736
30,669
-543
31,212
7,583
23,629
27.9
27.8
28.7
* First nine months 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 first nine months 2024.
** Other income includes Gain or loss on sale of disposal groups.
27
Danske Bank / Interim report – first nine months 2025
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
Assets under pooled schemes and investment contracts
G6
Insurance assets
Intangible assets
Tax assets
G8
Other assets**
Total assets
28
Danske Bank / Interim report – first nine months 2025
30 September
31 December
30 September
2025
2024
2024*
101,489
77,940
453,921
292,668
996,322
107,498
143,569
531,831
269,118
921,900
1,087,697
1,074,783
75,889
545,490
7,542
10,000
30,494
76,173
548,912
6,737
5,814
29,706
167,989
167,975
470,678
266,255
913,903
980,599
75,477
526,507
6,165
10,133
112,594
3,679,453
3,716,042
3,698,275
(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
G6
Insurance liabilities
Tax liabilities
Other liabilities**
Non-preferred senior bonds
Subordinated debt
G8
G7
G7
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
30 September
31 December
30 September
2025
2024
2024*
171,332
302,835
214,364
357,507
188,886
353,881
1,242,341
1,173,781
1,132,851
736,332
240,164
76,652
539,197
1,872
71,972
89,358
30,297
746,556
243,198
76,608
529,793
2,225
66,033
89,492
40,798
751,570
256,454
76,467
513,257
1,742
122,403
86,789
37,059
3,502,354
3,540,355
3,521,359
8,350
-2,832
187
171,395
-
177,099
8,622
-3,617
246
158,157
12,279
175,687
8,622
-3,296
482
171,107
-
176,916
3,679,453
3,716,042
3,698,275
* Comparative information for as at 30 September 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.
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
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
-
-
1,324
-539
-
-
-
785
785
-
-
-
-
-
-
-
-
-
-62
3
-
-59
-59
-
-
-
-
-
16,730
-32
-
-
-
-
-225
-256
16,474
43
272
-3,478
-21,165
21,091
-
-
-
-
-
-
-
-
-
16,730
Net profit
Other comprehensive income
-32
Remeasurement of defined benefit pension plans
1,324
Translation of units outside Denmark
-539
-62
Hedging of units outside Denmark
Unrealised value adjustments
3
Realised value adjustments
-225
470
Tax
Total other comprehensive income
17,200
Total comprehensive income
Transactions with owners
-12,279
-12,236
Dividends paid
-
Share capital reduction
-3,478
Acquisition of own shares - share buy-back programme
-21,165
Acquisition of own shares - other
21,091
Sale of own shares
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-988
331
-
-
-
-657
-657
-
-
-
-
-
-
-
-
-
714
75
-
788
788
-
-
-
-
-
17,634
85
-
-
-
-
-23
62
17,696
-
-
-
-
-
-
-
-
-
17,634
85
-988
331
714
75
-23
194
17,827
-6,310
-6,466
-12,777
-
-3,779
-19,992
19,898
-
-
-
-
-
-
-3,779
-19,992
19,898
176,916
8,350
-2,832
187
171,395
177,099
Total equity as at 30 September 2024
8,622
-3,296
482
171,107
Share
capital
8,622
-
-
-
-
-
-
-
-
-
-
-272
-
-
-
(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
Share capital reduction
Acquisition of own shares - share buy-back programme
Acquisition of own shares - other
Sale of own shares
Total equity as at 30 September 2025
29
Danske Bank / Interim report – first nine months 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 September 2025, the Group had acquired 13,176,732 shares for a total amount of DKK 3,224 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.
Number of shares
Issued at 1 January
Cancellation of own shares (day-weighted)
Average number of shares held in relation to Share buy-back programme
Average number of shares held in the Group's trading portfolio
Average number of shares outstanding
Average number of dilutive shares issued for share-based payments
Adjusted average number of shares outstanding, including dilutive shares
30 September 2025 31 December 2024
862,184,621
862,184,621
15,935,236
16,260,719
2,660,699
-
11,612,046
2,498,271
827,327,967
848,074,304
2,351,203
1,656,061
829,679,170
849,730,365
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 on 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.
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
Expected/proposed payouts
Intangible assets of banking operations
Minimum Loss Coverage for Non-Performing Exposures
Deferred tax on intangible assets
Deferred tax assets that rely on future profitability, excluding temporary differences
Defined benefit pension plan assets
Statutory deduction for insurance subsidiaries
Common equity tier 1 capital
Additional tier 1 capital instruments
Tier 1 capital
Tier 2 capital instruments
Total capital
Total risk exposure amount
Common equity tier 1 capital ratio (%)
Tier 1 capital ratio (%)
Total capital ratio (%)
30 September 2025 31 December 2024
177,099
175,687
222
-35
177,286
177,286
-2,305
-
-810
-
-10,038
-7,067
-2,562
547
-498
-925
-4,298
149,331
7,646
156,977
22,052
179,029
798,341
18.7%
19.7%
22.4%
219
-24
175,882
175,882
-901
752
-912
-
-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%
Total capital and the total risk exposure amount are calculated in accordance with the rules applicable under the Capital
Requirements Regulation (CRR), 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. The report is not subject to review.
30
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Cash flow statement – Danske Bank Group
Q1-Q3
2025
22,364
-9,800
850
13,414
-39,555
23,238
-73
-23,550
-87,593
68,559
-16,744
12,839
5,766
-43,699
Q1-Q3
2024*
23,227
-12,363
4,456
15,320
Full Year
2024
(DKK millions)
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
Dividends paid
36,869
59,148
Share buy-back programme
-23,094
-109,329
Principal portion of lessee lease payments
-95
17,659
-14,631
-93,887
45,072
-1,099
9,274
-8,612
-158
14,796
-35,906
-53,265
4,526
-6,967
13,109
Cash flow from financing activities
Cash and cash equivalents as at 1 January
Foreign currency translation
Change in cash and cash equivalents
Cash and cash equivalents, end of period
Cash and cash equivalents, end of period
Cash in hand
-92,469
Demand deposits with central banks
-21
-
-
Total
Amounts due from credit institutions and central banks within three months
-
-1,196
-281
1
-1,497
26
-523
-287
-
-784
26
-1,270
-984
-6
-2,234
* Comparative information for First nine months 2024 has been restated as described in note G2(b).
Q1-Q3
2025
Q1-Q3
2024*
Full Year
2024
8,329
-17,878
18,962
-15,610
-12,236
-3,478
-373
8,378
-10,748
21,604
-29,241
-12,777
-3,779
-454
12,108
-11,392
28,338
-35,702
-18,207
-5,246
-576
-22,284
-27,017
-30,677
242,100
365,609
365,609
-681
998
1,871
-67,480
-36,413
-125,380
173,938
330,194
242,100
6,628
94,861
72,449
173,938
6,843
161,146
162,205
330,194
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 nine months 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). In addition, balances as at 30 September
2024 have been restated to reflect a change in accounting treatment during the fourth quarter of 2024 for variation margin for
derivative transactions. Further information can be found in note G2(b). 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.
(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.
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 expectation of the Group’s senior management
and involves the creation of scenarios, 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. During the
second quarter of 2025, a new downside scenario was introduced to address the ongoing uncertainty, in addition to the existing three
scenarios. Therefore the four scenarios at 30 September 2025 are: base case, upside, downside and severe downside. Note G13
provides information on the scenarios as at 30 September 2025.
At 30 September 2025, the base case scenario enters with a probability of 50% (31 December 2024: 60%), the upside scenario with a
probability of 25% (31 December 2024: 20%), the new downside scenario with a probability of 5% (31 December 2024: 0%) and the
severe downside scenario with a probability of 20% (31 December 2024: 20%). With the applied macroeconomic scenarios, the
allowance account as at 30 September 2025 amounted to DKK 19.8 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 2.4 billion (31 December 2024: DKK 2.5
billion). Compared to the base case scenario, the allowance account would increase by DKK 0.4 billion if the downside scenario was
assigned a probability of 100%. If the severe downside scenario was assigned a probability of 100%, the allowance account would
increase by DKK 12.2 billion (31 December 2024: DKK 12.9 billion) compared to the base case scenario. The increase reflects primarily
the transfer of exposures from stage 1 to stage 2 and increased expected credit losses within stage 2. If instead the upside scenario
was assigned a probability of 100%, the allowance account would decrease by DKK 0.1 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 30 September 2025, the post-model
adjustments amounted to DKK 5.7 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 30 September 2025, financial assets covered by the expected credit loss model accounted for about 55.8% of total
assets (31 December 2024: 53.8%)
Fair value measurement of financial instruments
At the end of September 2025, no unusual challenges in obtaining reliable pricing apart from insignificant parts of the portfolio
remained. The majority of valuation techniques continue to employ only observable market data, and there has been no significant
increase in financial instruments measured on the basis of valuation techniques that are based on one or more significant
unobservable inputs. The latter continues to include only unlisted shares, certain bonds and some long-dated derivatives for which
there is no active market. On the derivatives portfolio, the Group makes fair value adjustments to cover changes in counterparty risk
(CVA) and to cover expected funding costs (FVA and ColVA) on derivatives, bid-offer spreads on the net open position of the portfolio of
assets and liabilities with offsetting market risk recognised at mid-market prices, and model risk on level 3 derivatives. As at 30
September 2025, the adjustments totalled DKK 0.2 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 provide more details on the
fair value measurement of financial instruments.
32
Danske Bank / Interim report – first nine months 2025
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 30 September 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 September 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 nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G2. Changes in accounting policies and presentation
G3. Business segments
(a) Changes in accounting policies
Amendment to IAS 21, The effects of changes 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.
(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 30 September 2024
are shown in the following table. The adjustments have no impact on net profit nor equity at the end of the first nine months of 2024.
There is no change to balances as at 31 December 2024.
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.
(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
30 September 2024
Adjustment
Restated 30 September
2024
514,297
915,451
3,743,442
368,184
1,163,715
3,566,526
176,916
3,743,442
-43,619
-1,548
-45,167
-14,303
-30,864
-45,167
-
-45,167
470,678
913,903
3,698,275
353,881
1,132,851
3,521,359
176,916
3,698,275
In the Cash flow statement, comparatives for first nine months 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 Group’s financial statements show restated amounts in the comparative figures for first nine months 2024 for the Balance sheet,
Cash flow statement and note G3.
34
Danske Bank / Interim report – first nine months 2025
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 nine months 2025
Business segments first nine months 2024
(DKK millions)
Net interest income
Net fee income
Net trading income
Net income from insurance business
Other income
Total income
Large
Corporates
&
Institutions
6,124
5,230
1,872
Personal
Customers
Business
Customers
9,663
3,335
88
-
95
8,793
1,820
23
-
336
13,182
10,972
13,230
1,097
Operating expenses
6,701
4,167
of which resolution fund, bank tax etc.
Profit before loan impairment charges
Loan impairment charges
Profit before tax
23
6,481
81
6,400
61
6,804
-594
7,399
Danica
Northern
Ireland
Group
Functions Eliminations
Total
(DKK millions)
-
-
-
-
4
1,097
-
5,461
90
-
-
2,487
230
133
-
9
2,859
1,172
-
219
-127
251
-
2,184
2,527
3,610
58
-127
27,157
Net interest income
80
-6
-
-2,202
-2,255
-2,122
10,568
Net fee income
2,362
1,097
Net trading income
Net income from insurance business
428
Other income
41,613
Total income
18,990
Operating expenses
-
232
of which resolution fund, bank tax etc.
7,769
1,097
1,687
-1,083
-133
22,622
Profit before loan impairment charges
691
-
82
-1
-
258
Loan impairment charges
7,079
1,097
1,606
-1,083
-133
22,364
Profit before tax
Personal
Customers
Business
Customers
10,704
3,589
118
-
75
8,682
1,680
17
-
521
Large
Corporates
&
Institutions
5,212
4,964
1,884
-
-
-
-
1
1,407
-
14,485
10,900
12,061
1,407
7,242
113
7,243
-232
7,475
3,949
170
6,951
265
6,686
5,435
345
6,626
-403
7,029
-
-
1,407
-
1,407
Danica
Northern
Ireland
Group
Functions Eliminations
2,211
238
129
-
8
2,585
1,141
-
1,444
-62
1,506
787
-226
63
-
1,796
2,420
3,159
54
-739
-5
-735
-145
160
-101
-
-1,936
-2,023
-1,882
-
Total
27,452
10,403
2,110
1,407
464
41,836
19,046
682
-141
22,790
-
-436
-141
23,227
Loans, excluding reverse transactions
660,040
682,861
333,986
-
68,201
16,169
-18,198 1,743,059
Loans, excluding reverse transactions*
659,195
654,451
294,097
-
63,250
16,420
-17,744 1,669,669
Other assets
Total assets
444,671
175,388 2,880,090
597,218
75,226 4,706,517
-6,942,718 1,936,394
Other assets *
475,387
173,596 2,847,150
573,738
66,120 5,350,479
-7,457,865 2,028,606
1,104,711
858,249 3,214,076
597,218
143,428 4,722,687
-6,960,916 3,679,453
Total assets*
1,134,583
828,047 3,141,247
573,738
129,370 5,366,899
-7,475,609 3,698,275
Deposits, excluding repo deposits
397,554
248,206
303,367
-
113,230
12,008
-12,471 1,061,895
Deposits, excluding repo deposits*
389,057
244,904
299,839
-
106,712
7,520
-14,489 1,033,543
Other liabilities
Allocated capital
680,236
562,571 2,870,713
576,856
23,082 4,675,446
-6,948,445 2,440,459
Other liabilities *
715,484
540,634 2,801,332
553,265
15,772 5,322,450
-7,461,121 2,487,817
26,921
47,472
39,995
20,362
7,115
35,233
-
177,099
Allocated capital
30,042
42,509
40,076
20,473
6,886
36,929
-
176,916
Total liabilities and equity
1,104,711
858,249 3,214,076
597,218
143,428 4,722,687
-6,960,916 3,679,453
Total liabilities and equity*
1,134,583
828,047 3,141,247
573,738
129,370 5,366,899
-7,475,609 3,698,275
Profit before tax as % p.a. of allocated
capital (avg.)
Cost/income ratio (%)
Full-time-equivalent staff, end of
period
31.9
50.8
21.1
38.0
23.1
41.3
7.3
-
31.0
41.0
-3.5
-
3,927
1,774
2,234
984
1,247
10,054
17.0
45.6
Profit before tax as % p.a. of allocated
capital (avg.)
Cost/income ratio (%)
20,220
Full-time-equivalent staff, end of
period
-
-
-
32.6
50.0
21.2
36.2
23.2
45.1
9.3
-
31.4
44.1
-2.3
-
3,976
1,728
2,115
920
1,248
10,069
-
-
-
17.6
45.5
20,057
*Comparative information for First nine months 2024 has been restated as described in note G2(b).
35
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G4. Income
G5. Loan impairment charges
(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.
Fee income first nine months 2025
(DKK millions)
Investment
Money transfers, account fee, cash management and other fees
Lending and Guarantees
Capital markets
Total
Fee income first nine months 2024
(DKK millions)
Investment
Money transfers, account fee, cash management and other fees
Lending and Guarantees
Capital markets
Total
Fee income
Fee expenses Net fee income
4,727
5,059
1,640
1,123
1,095
731
114
40
3,631
4,328
1,526
1,083
Loan impairment charges
(DKK millions)
ECL on new assets
ECL on assets derecognised
Impact of net remeasurement of ECL (incl. changes in models)
12,549
1,981
10,568
Write-offs charged directly to income statement
Received on claims previously written off
Interest income, effective interest method
Total
Fee income
Fee expenses Net fee income
6,212
4,719
1,632
1,154
2,593
576
110
36
3,620
4,144
1,522
1,118
13,718
3,315
10,403
(b) Other income
Other income amounted to DKK 428 million for the first nine months ending 30 September 2025 (30 September 2024: DKK 464
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.
30 September 2025 30 September 2024
2,814
-2,048
-265
140
-130
-253
258
2,617
-2,228
89
97
-713
-298
-436
36
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G6. Insurance assets and Insurance liabilities
Other issued bonds
Other issued bonds in the following tables comprise Issued bonds at fair value excluding Realkredit Danmark, Issued bonds at
amortised cost and Non-preferred senior bonds.
Insurance assets comprise assets earmarked for policyholders. As at 30 September 2025, Insurance assets total DKK 567,083 million
(31 December 2024: DKK 567,273 million) before own bonds of DKK 5,017 million (31 December 2024: DKK 5,437 million) and other
intra-group balances of DKK 16,575 million (31 December 2024: DKK 12,924 million).
Nominal value of other issued bonds
Insurance liabilities comprise DKK 473,032 million of Insurance contract liabilities as defined by IFRS 17 (31 December 2024: DKK
456,227 million) and DKK 75,029 million of Other insurance-related liabilities (31 December 2024: DKK 87,590 million), before intra-
group balances of DKK 8,864 million (31 December 2024: DKK 14,024 million).
(DKK millions)
Commercial papers and certificate of deposits
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
Preferred senior bonds
Covered bonds
Structured retail notes
Non-preferred senior bonds
Total
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
Covered bonds
Structured retail notes
Issued bonds at amortised cost, total
Non-preferred senior bonds
30 September 31 December
2025
2024
734,890
744,495
1,442
2,061
736,332
746,556
(DKK millions)
Commercial papers and certificate of deposits
Preferred senior bonds
Covered bonds
Structured retail notes
Non-preferred senior bonds
Total
30 September 31 December
2025
50,939
54,768
2024
49,044
66,778
134,275
126,763
183
612
240,164
243,198
89,358
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 following tables.
37
Danske Bank / Interim report – first nine months 2025
1 January
2025
49,002
68,592
128,673
3,117
91,588
1 January
2024
29,613
65,545
129,419
4,076
97,900
Issued
Redeemed
translation
86,825
11,906
19,311
-
18,838
80,482
21,280
15,498
1,154
15,602
Foreign
currency 30 September
-4,424
-3,265
4,780
172
-3,754
-6,491
2025
50,921
55,953
137,266
2,135
91,069
337,344
340,972
136,880
134,017
Issued
Redeemed
translation
78,934
10,684
27,161
-
28,404
60,856
8,735
25,770
1,154
35,782
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
326,553
145,182
132,298
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G7. Issued bonds, subordinated debt and additional tier 1 capital -
continued
G8. Other assets and Other liabilities
Subordinated debt and additional tier 1 capital
As at 30 September 2025, the nominal value of subordinated debt, including liability accounted additional tier 1 capital, amounted to
DKK 30,497 million (31 December 2024: DKK 41,440 million). During the period ended 30 September 2025, the Group issued NOK
1,600 million and EUR 500 million of tier 2 capital and USD 500 million of liability accounted additional tier 1 capital. The Group also
redeemed EUR 1,750 million of tier 2 capital and USD 750 million of liability accounted additional tier 1 capital during the nine months
ended 30 September 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 30 September 2025, distributable items for Danske Bank A/S amounted to DKK 134.5 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 30 September 2025 the common equity tier 1 capital ratio was 22.0% (31 December 2024: 20.5%) for Danske Bank
A/S. The ratios for the Danske Bank Group are disclosed in the Statement of capital.
(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.
30 September 31 December
2025
2024*
8,156
9,998
922
363
6,956
3,560
384
156
7,352
9,727
907
396
7,092
3,675
396
160
30,494
29,706
47,826
14,937
249
725
3,670
2,910
2
1,653
71,972
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 1,141 million, regulatory and legal
proceedings of DKK 3 million, restructuring costs of DKK 188 million and other provisions of DKK 322 million.
38
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G9. Foreign currency translation reserve
G10. Guarantees, commitments and contingent liabilities
As at 30 September 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 34,477 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 30 September 2025, the structural FX hedge position totalled
DKK 39,040 million (31 December 2024: DKK 36,952 million) and a gain of DKK 742 million has been recognised in Other
comprehensive income during the first nine months of 2025, primarily due to a strengthening of SEK and NOK against DKK throughout
the first nine months of 2025. For comparison, a total loss of DKK 632 million was recognised in Other comprehensive income during
the first nine months of 2024, primarily due to a weakening of SEK and NOK against DKK throughout the first nine months of 2024.
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.
(a) Guarantees
(DKK millions)
Financial guarantees
Other guarantees
Total
(b) Commitments
(DKK millions)
Loan commitments shorter than 1 year
Loan commitments longer than 1 year
Other unutilised commitments
Total
30 September
31 December
2025
14,488
83,245
97,734
2024
17,393
78,965
96,359
30 September
31 December
2025
204,964
238,596
15,248
458,809
2024
191,002
244,372
16,689
452,062
39
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
G10. Guarantees, commitments and contingent liabilities - continued
(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.
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.
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 to the Eastern High Court where the main hearing is scheduled to start in January 2028.
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. In December 2022, the action was dismissed by the court and in
January 2023, the complainants filed an appeal of the dismissal. In March 2024, the appellate court heard oral arguments for the
appeal and, in July 2025, the appellate court rendered its decision affirming in its entirety the dismissal of the claims against Danske
Bank and the other international banks. The complainants can seek a discretionary review of this decision from the Supreme Court of
the United States. Any request for such discretionary review from the Supreme Court must be filed within 90 days from the date of the
decision. In September 2025, the claimants have asked the appeals court to reconsider its decision. The 90-day deadline will run from
the date that the rehearing request is resolved.
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.
40
Danske Bank / Interim report – first nine months 2025
(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 September 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.
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 272.3 billion as at 30 September 2025 (31 December 2024: DKK 176.3 billion).
As at 30 September 2025, the Group had deposited securities (including bonds issued by the Group) worth DKK 4.1 billion as collateral
with Danish and international clearing centres and other institutions (31 December 2024: DKK 4.2 billion).
As at 30 September 2025, the Group had provided cash and securities (including bonds issued by the Group) worth DKK 62.9 billion as
collateral for derivatives transactions (31 December 2024: DKK 85.8 billion).
As at 30 September 2025, the Group had received securities worth DKK 423.0 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 30 September 2025, the Group had sold securities or provided securities as collateral worth DKK 109.7 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 provides more details on assets received as collateral in
connection with ordinary lending activities.
As at 30 September 2025, the Group had registered insurance assets (including bonds and shares issued by the Group) and
investment contracts worth DKK 517.7 billion (31 December 2024: DKK 505.3 billion) as collateral for policyholders’ savings of DKK
487.0 billion (31 December 2024: DKK 469.8 billion).
As at 30 September 2025, the Group had registered loans at fair value and securities (including bonds issued by the Group) worth a
total of DKK 754.3 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 251.4 billion (31 December 2024: DKK 231.1 billion) as collateral for covered
bonds issued under Danish, Finnish and Swedish law.
The following table 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
30 September 2025
31 December 2024
Repo
Other
Total
Repo
Other
Total
-
13,081
13,081
-
29,204
29,204
272,288
48,929
321,217
176,271
52,627
228,898
-
-
-
749,531
749,531
261,496
261,496
496,104
496,104
-
-
-
755,188
755,188
243,691
243,691
487,000
487,000
272,288 1,569,141 1,841,429
176,271 1,567,709 1,743,981
20,042
23,921
43,963
32,146
21,030
53,176
Total, including own issued bonds
292,330 1,593,061 1,885,391
208,418 1,588,739 1,797,156
41
Danske Bank / Interim report – first nine months 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.
(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
30 September 2025
31 December 2024
Fair value Amortised cost
Fair value Amortised cost
-
30,524
453,921
101,489
47,416
-
-
63,040
531,831
107,498
80,529
-
-
146,046
-
135,714
146,622
-
133,404
-
-
996,322
-
921,900
1,087,697
75,889
502,377
-
-
-
1,074,783
76,173
508,045
-
-
-
2,297,029
1,291,274
2,387,276
1,245,642
105,603
302,835
179,819
736,332
65,729
-
1,062,522
-
129,910
357,507
78,550
746,556
84,454
-
1,095,232
-
-
240,164
-
243,198
76,652
55,802
-
-
-
-
-
89,358
30,297
2,910
76,608
60,111
-
-
-
-
-
89,492
40,798
2,893
1,457,044
1,490,980
1,449,242
1,556,067
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 bond portfolio
table in note G13).
42
Danske Bank / Interim report – first nine months 2025
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 30 September 2025
with DKK 2,954 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 6.0, following Moody’s numerical rating factor to scale, which
corresponds to a strong Aa1 rating. The interest rate risk duration for the portfolio is 2.7 years. Without any reinvestments,
respectively 29%, 52% and 19% 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 reduced during the first nine months of 2025 due to a decrease 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
Quoted prices
Observable
input
Non-
observable
input
-
11,245
185,683
55,965
124,643
-
-
75,889
149,255
226,166
2,403
30,524
184,721
15,036
-
21,626
-
1,087,697
-
41,687
5,216
39,970
Total
(DKK millions)
31 December 2024
Financial assets
30,524
Due from credit institutions and central banks
196,937
Derivatives
200,719
Trading portfolio bonds
56,266
Trading portfolio shares
146,269
Investment securities, bonds
353
Investment securities, shares
1,087,697
Loans at fair value
75,889
Assets under pooled schemes and investment contracts
-
971
-
301
-
353
-
-
1,991
35,204
485
192,933
Insurance assets, bonds
266,586
Insurance assets, shares
42,858
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
831,249
1,426,477
39,305
2,297,029
Total
815,224
1,527,596
44,456
2,387,276
-
14,433
106,818
105,603
178,053
2,842
-
179,819
736,332
-
737
-
76,652
54,419
858,320
597,388
-
687
3
-
-
-
646
1,336
Financial liabilities
105,603
Due to credit institutions and central banks
193,173
Derivatives
109,663
Obligations to repurchase securities
179,819
Deposits
736,332
Issued bonds at fair value
76,652
55,802
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
1,457,044
Total
857,585
588,027
-
3,120
10
-
-
-
501
3,631
129,910
254,500
103,007
78,550
746,556
76,608
60,111
1,449,242
Financial instruments at fair value
(DKK millions)
30 September 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
43
Danske Bank / Interim report – first nine months 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
30 September 2025
31 December 2024
Carrying amount
Increase
Decrease
Realised
Unrealised
(DKK millions)
Bonds
Derivatives
(DKK millions)
30 September 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
35,204
651
1,991
122
36,911
640
2,103
1,171
-
65
28
-
-
64
32
-
-
65
28
-
-
64
32
-
1,649
148
-
-
2,189
98
-
-
-2,443
-35
-116
-497
-10
-3
-1,398
615
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
-681
2,786
-3,801
-
-
2,103
-116
75
-71
-
-
1,171
-497
36
-586
Shares
35,308
2,274
3,658
-3,856
Bonds
Derivatives
2,458
-1,398
372
-21
12
615
707
-105
-
167
692
-
-3
122
-
-
37,551
2,103
-58
1,171
Fair value end of period
35,855
1,991
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.
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 nine months ended 30 September 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.
44
Danske Bank / Interim report – first nine months 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.
Breakdown of credit exposure
(DKK billions)
30 September 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
Total
94.9
77.9
453.9
292.7
996.3
1,087.7
75.9
545.5
97.7
205.0
238.6
15.2
Lending
activities
Counterparty
credit risk
Trading and
investment
securities
Customer-
funded
investments
94.9
47.4
-
-
996.3
749.5
-
-
97.7
205.0
238.6
-
-
30.5
196.9
-
-
338.2
-
-
-
-
-
-
-
-
257.0
292.7
-
-
-
-
-
-
-
-
(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
-
-
-
-
-
-
75.9
Assets under pooled schemes and investment contracts
545.5
Insurance assets
Off-balance-sheet items
Guarantees
Loan commitments shorter than 1 year
Loan commitments longer than 1 year
-
-
-
15.2
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
4,181.3
2,429.4
565.6
549.7
636.6
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 220 billion at 30 September 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.
45
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit risk
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 68% (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 following tables break 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.
46
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit risk– continued
Credit exposure broken down by rating categories
(DKK billions)
30 September 2025
PD level
Gross exposure
Expected credit loss
Net exposure
Net exposure, ex collateral
Upper
Lower
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
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
-
0.01
0.03
0.06
0.14
0.31
0.63
1.90
7.98
25.70
100.00
0.01
0.03
0.06
0.14
0.31
0.63
1.90
7.98
25.70
99.99
100.00
100.1
191.5
503.1
581.1
482.7
298.9
95.0
11.9
1.5
0.9
0.2
0.2
0.1
0.8
2.2
6.9
42.5
44.9
29.0
4.7
17.6
1.3
2,266.9
150.1
-
-
-
-
0.1
0.1
-
0.9
-
0.8
30.2
32.1
-
-
0.1
0.2
0.4
0.6
1.2
0.7
-
-
-
3.3
-
-
-
-
0.1
0.7
1.8
2.3
0.6
1.6
0.1
7.2
-
-
-
-
-
-
0.1
0.1
-
0.2
9.0
9.3
100.1
191.5
503.0
580.9
482.3
298.3
93.8
11.2
1.5
0.8
0.2
0.2
0.1
0.8
2.1
6.8
41.8
43.1
26.7
4.1
16.0
1.2
2,263.7
143.0
-
-
-
-
0.1
-
-
0.8
-
0.7
21.2
22.8
77.6
96.0
248.9
262.0
193.3
101.2
36.4
3.4
0.1
0.3
-
1,019.3
-
-
0.5
1.1
3.8
18.5
16.1
9.9
0.8
5.7
-
56.5
-
-
-
-
-
-
-
0.2
-
0.3
4.0
4.4
PD level
Gross exposure
Expected credit loss
Net exposure
Net exposure, ex collateral
Upper
Lower
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
-
0.01
0.03
0.06
0.14
0.31
0.63
1.90
7.98
25.70
100.00
0.01
0.03
0.06
0.14
0.31
0.63
1.90
7.98
25.70
99.99
100.00
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
47
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit risk– continued
Credit portfolio broken down by industry (NACE) and stages
The following tables break 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)
30 September 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
48
Danske Bank / Interim report – first nine months 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
161.7
144.5
52.9
26.0
84.7
277.3
43.5
88.1
15.6
20.6
4.0
55.3
210.9
44.4
29.4
88.3
39.2
27.6
26.6
17.4
92.5
1.4
3.1
5.5
6.9
13.1
29.4
10.8
7.4
1.1
2.8
0.8
0.9
3.6
3.9
6.2
5.2
4.8
2.5
1.6
2.2
2.4
0.2
0.4
1.3
0.6
2.3
3.6
1.9
1.0
0.5
0.2
0.4
0.2
0.5
0.4
1.7
1.5
1.1
0.3
2.2
1.3
0.1
-
-
0.3
-
0.1
0.6
0.3
0.1
-
-
0.2
-
0.1
0.1
0.1
0.2
-
-
-
-
0.1
1.1
3.3
-
0.2
0.6
0.3
0.6
1.0
0.8
0.4
0.1
0.1
-
-
0.1
0.2
0.4
0.3
0.1
0.1
0.1
0.2
0.2
1.3
7.2
-
0.1
0.4
0.2
0.9
0.9
1.0
0.5
0.1
0.1
0.1
0.1
0.1
0.2
0.6
0.4
0.1
0.1
0.6
0.2
-
2.6
9.3
Stage 1
161.7
144.5
52.6
25.9
84.6
276.7
43.3
88.0
15.6
20.6
3.9
55.3
210.8
44.3
29.4
88.1
39.2
27.6
26.6
17.4
92.4
1.4
2.9
4.9
6.5
12.5
28.4
10.0
6.9
1.1
2.6
0.8
0.8
3.5
3.6
5.8
4.9
4.7
2.4
1.5
2.0
2.2
0.2
0.3
0.9
0.5
1.4
2.7
0.9
0.5
0.4
0.1
0.3
0.1
0.4
0.3
1.1
1.1
0.9
0.2
1.5
1.1
0.1
7.7
22.8
Stage 1
159.8
128.6
12.7
20.1
75.6
40.1
32.0
67.4
5.9
17.7
0.6
51.9
33.3
32.1
19.5
73.5
22.5
10.9
21.8
9.2
68.9
115.2
1,019.3
Stage 2
Stage 3
-
1.6
1.5
4.3
10.2
3.0
6.4
5.2
0.3
2.0
0.1
0.7
0.5
2.5
5.0
3.3
1.2
2.1
1.2
0.5
1.5
3.4
56.5
-
0.2
-
0.3
0.5
0.5
0.3
0.1
0.1
-
-
-
0.1
-
0.5
0.6
0.1
-
0.7
0.3
0.1
-
4.4
716.2
2,266.9
34.7
150.1
10.3
32.1
715.1
2,263.7
33.4
143.0
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 risk – 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
49
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit risk – 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 September 2025 can be found as the difference between the columns ‘Net exposure’ and ‘Net exposure, ex
collateral’ and amounted to DKK 1,349.3 billion at 30 September 2025 (31 December 2024: DKK 1,319.9 billion).
The following tables break down credit exposure by business unit and underlying segment.
Credit exposure by business unit
(DKK billions)
30 September 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
50
Danske Bank / Interim report – first nine months 2025
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
447.5
101.9
75.9
74.3
-
699.6
51.0
274.8
391.2
0.3
717.3
627.6
107.0
115.5
20.7
2.6
5.7
3.8
-
32.9
10.9
37.0
25.8
-
73.7
39.6
3.8
0.1
2,266.9
150.1
6.3
0.5
2.0
0.7
-
9.6
2.7
9.6
2.2
-
14.5
6.7
1.3
-
32.1
0.8
0.1
0.1
0.1
-
1.0
0.1
0.9
0.5
-
1.5
0.5
0.2
-
3.3
0.7
0.1
0.2
0.3
-
1.3
0.3
3.0
0.7
-
4.0
1.7
0.1
-
7.2
1.5
0.1
0.6
0.1
-
2.3
0.6
3.7
0.4
-
4.7
1.8
0.5
-
9.3
446.8
101.9
75.8
74.2
-
698.6
50.9
273.9
390.7
0.3
715.8
627.0
106.7
115.5
20.0
2.5
5.5
3.5
-
31.6
10.6
34.0
25.1
-
69.7
37.9
3.7
0.1
4.8
0.4
1.4
0.6
-
7.2
2.1
5.9
1.8
-
9.8
4.8
0.9
-
73.6
31.6
5.7
12.3
-
123.2
18.7
103.3
59.6
0.3
181.9
546.6
54.6
113.1
2,263.7
143.0
22.8
1,019.3
1.8
0.4
0.4
0.5
-
3.1
2.5
16.4
2.5
-
21.4
31.4
0.5
0.1
56.5
-
-
-
-
-
-
0.4
0.9
0.2
-
1.5
2.8
-
-
4.4
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit risk – 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.
51
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit risk – 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 nine months of 2025, the Group had recognised properties taken over in Denmark at a carrying amount of DKK 8 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
30 September 2025 31 December 2024
111
5,968
6,539
12,617
256
7,629
6,966
14,851
52
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit risk - continued
Allowance account broken down by stage
(DKK millions)
ECL allowance account as at 1 January 2024
Transferred to stage 1
Transferred to stage 2
Transferred to stage 3
ECL on new assets
ECL on assets derecognised
Impact of net remeasurement of ECL (incl. changes in models)
Write-offs debited to the allowance account
Foreign exchange adjustments
Other changes
ECL allowance account as at 30 September 2024
ECL allowance account as at 1 January 2025
Transferred to stage 1
Transferred to stage 2
Transferred to stage 3
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
984
-243
-22
452
-400
-695
-9
-15
1
3,645
3,226
1,072
-188
-59
520
-391
-922
-
3
13
Stage 2
7,486
-894
516
-343
1,285
-1,175
713
-
-63
-11
7,512
7,617
-980
467
-837
1,190
-879
546
-
61
-12
Allowance account broken down by segment
Stage 3
9,062
Total
20,140
Personal
Customers
Business
Customers
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 30 September 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)
5,306
346
-554
21
-95
-21
6
5,008
4,674
369
-526
300
-67
16
-77
10,705
1,457
-1,575
594
-130
-95
-8
10,948
10,752
1,273
-1,445
-465
-136
110
71
3,308
672
-56
-408
-40
-16
-13
3,447
3,666
1,101
-40
-154
-467
-14
-12
794
140
-40
-115
-12
33
-
801
785
59
-36
65
-22
-38
-
814
27
1
-2
-3
-
-1
-1
20
22
12
-1
-12
-
-
-4
18
Total
20,140
2,617
-2,228
89
-276
-101
-16
20,225
19,901
2,814
-2,048
-265
-692
74
-21
19,763
2,814
Write-offs debited to allowance account
-2,048
Foreign currency translation
Other changes
ECL allowance account as at 30 September 2025
4,690
10,161
4,081
-90
-273
364
880
-652
71
-267
-23
-6
9,068
9,058
-92
-279
897
1,104
-779
111
-692
10
-22
-
-
-
2,617
-2,228
89
-276
-101
-16
20,225
19,901
-
-
-
-265
-692
74
-21
ECL allowance account as at 30 September 2025
3,275
7,172
9,316
19,763
The method used for calculating expected credit losses is described in detail in note G15 of the Annual Report 2024.
53
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit risk - 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 two 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.
The upside scenario represents a slightly improved outlook compared to the base case scenario. In this scenario, the global economy
strengthens with increased global demand leading to slightly higher GDP growth and more support for the housing markets.
A second downside scenario was introduced in the second quarter of 2025 to address the ongoing uncertainty. This scenario, which is
called the downside scenario, envisions escalating trade tensions leading to an economic slowdown with a weaker foreign demand
and declining equity markets.
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 scenarios applied in the expected credit loss calculation in the first nine months 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 ongoing expectations of normalised inflation levels and improved house prices, though 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, as outlined in the Nordic Outlook report. At 30
September 2025, the base case scenario anticipates that the Nordic economic recovery continues, even though short-term growth
forecasts for Denmark have been revised down. Most interest rate cuts are expected to be complete and inflation has normalised. The
Nordic property markets have generally recovered, with anticipated price increases.
The severe downside scenario underwent a regular update in the third quarter of 2025 and continues to reflect a severe global
recession. A global trade war and supply chain issues trigger a deep economic downturn similar to the financial crisis, characterised
by declining demand, negative growth rates and higher, more persistent unemployment in the economies where the Group is
represented. Rising import costs lead to prices increases and inflation, prompting interest rates to be hiked in response, although
marginally less than previously anticipated, as current interest levels have decreased. Property prices decline for an extended period
due to increased interests and market uncertainty. The scenario is applied in the Group’s ICAAP processes, which is similar in nature
to regulatory stress tests, capturing the risk of a recession.
The scenario weightings have been updated to incorporate the new downside scenario and reflect a more balanced risk picture. The
weight on the base case scenario is 50% (31 December 2024: 60%), the upside scenario is weighted 25% (31 December 2024: 20%),
the new downside scenario is weighted 5% (31 December 2024: 0%) and the severe downside scenario is weighted 20% (31
December 2024: 20%).
The main macroeconomic parameters for the base case, upside, downside and severe downside scenarios that are used in the ECL
calculation for the forecast horizon across the Group’s Nordic markets are included in the following tables.
54
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit risk – continued
Macroeconomic scenarios
30 September 2025
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
55
Danske Bank / Interim report – first nine months 2025
Base-case
Upside
Downside
Severe downside
2025
2026
2027
2025
2026
2027
2025
2026
2027
2025
2026
2027
1.8
2.9
1.9
5.2
2.1
1.1
8.7
2.7
0.4
1.9
1.9
2.2
2.7
8.0
4.0
0.9
9.1
0.4
1.0
2.1
2.3
3.0
1.2
3.6
2.1
2.0
8.4
2.1
3.0
1.9
1.6
2.3
2.3
6.5
3.3
2.0
8.7
1.2
3.0
2.1
2.3
3.1
1.9
3.5
2.3
1.9
7.8
2.0
5.0
1.9
1.7
2.3
2.1
5.5
3.3
1.7
8.3
2.0
3.0
2.3
1.8
2.9
1.9
5.2
2.1
1.1
8.7
2.7
0.4
1.9
1.9
2.2
2.7
8.0
4.0
0.9
9.1
0.4
1.0
2.1
3.1
2.8
1.6
4.6
2.3
3.0
8.2
2.5
4.0
2.2
1.9
2.2
2.4
7.5
3.5
2.9
8.5
1.5
4.0
2.3
2.4
2.8
2.2
4.5
2.3
2.0
7.5
2.3
6.0
2.2
1.9
2.2
2.2
6.5
3.3
1.8
8.1
2.2
4.0
2.3
1.7
2.9
2.0
3.2
2.0
1.1
8.7
2.8
-1.6
1.9
1.9
2.2
2.7
6.0
4.0
0.8
9.1
0.4
-1.0
2.0
1.1
3.3
1.2
-1.4
1.7
0.8
8.6
2.3
-2.0
1.7
1.3
2.4
2.2
3.5
3.0
0.6
8.9
1.3
-
1.7
1.3
3.7
2.2
4.5
1.9
0.8
8.2
2.4
6.0
1.7
1.3
2.4
2.5
6.5
3.3
0.7
8.7
2.4
4.0
1.9
-3.4
6.4
4.0
-19.7
3.9
-3.5
10.2
4.9
-22.0
4.8
-2.7
5.5
4.5
-19.0
4.7
-2.4
10.9
4.0
-14.2
4.0
-2.0
7.4
3.0
-11.0
4.7
-3.4
11.1
3.9
-13.0
5.6
-1.1
6.4
3.0
-13.0
5.2
-2.0
11.9
3.0
-7.0
4.8
-
7.8
2.0
-6.0
3.4
-1.0
11.5
2.9
-7.0
4.3
0.6
6.5
2.0
-7.0
4.3
-0.3
11.9
2.0
-5.0
3.5
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit risk – continued
31 December 2024*
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
Base case
Upside
Downside
Severe downside
2025
2026
2027
2025
2026
2027
2025
2026
2027
2025
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
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
2.7
3.1
2.0
6.0
1.7
2.7
8.2
1.9
6.0
2.1
2.0
2.4
2.3
7.0
4.0
2.0
8.1
1.3
5.0
1.8
2.2
3.1
2.0
4.0
1.5
2.1
7.7
1.5
5.0
1.9
1.6
2.4
2.2
5.0
2.8
1.4
7.3
1.9
3.0
1.6
1.2
3.3
1.7
-1.5
1.2
0.8
7.6
1.5
-1.0
1.6
1.2
2.5
1.9
-
2.6
0.6
6.7
1.9
-1.5
1.3
-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
-
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
* The new downside macroeconomic scenario is included in the parameters above as at 31 December 2024. However its weighting was 0% as at 31 December 2024.
56
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
Credit risk – continued
With the applied macroeconomic scenarios, the allowance account as at 30 September 2025 amounted to DKK 19.8 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 2.4 billion (31 December 2024: DKK 2.5 billion). Compared to the base case scenario, the allowance account would
increase by DKK 0.4 billion, if the downside scenario was assigned a probability of 100%. If the severe downside scenario was
assigned a probability of 100%, the allowance account would increase by DKK 12.2 billion (31 December 2024: DKK 12.9 billion)
compared to the base case scenario. The increase reflects primarily the transfer of exposures from stage 1 to stage 2 and increased
expected credit losses within stage 2. If instead the upside scenario was assigned a probability of 100%, the allowance account would
decrease by DKK 0.1 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 by industries
(DKK billions)
Agriculture
Commercial Property
Construction and building materials
Personal customers (including other retail exposures)
Others*
Total
30 September 2025 31 December 2024
0.8
1.3
0.6
0.9
2.1
5.7
0.9
1.6
1.0
1.0
1.4
5.9
Post-model adjustments
Management applies judgement when determining the need for post-model adjustments. At 30 September 2025, the post-model
adjustments amounted to DKK 5.7 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.
* No individual industry included in Others exceeds DKK 0.4 billion at 30 September 2025 (31 December 2024: DKK 0.3 billion).
The total balance of post-model adjustments have slightly decreased compared to the end of 2024. The post-model adjustments
related to commercial property and agriculture have decreased due to the improved market conditions with lower interest rates, while
the post-model adjustment related to construction has decreased following some individualisation of risks. Conversely, 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 volatility 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.
57
Danske Bank / Interim report – first nine months 2025
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
Bond portfolio
(DKK billions)
Counterparty credit risk
Derivatives with positive fair value
Reverse transactions and other loans at fair value
Credit exposure from other trading and investment securities
Bonds
Shares
Total
30 September 2025
31 December 2024
196.9
368.7
493.0
56.6
1,115.3
261.0
382.6
446.6
93.3
1,183.6
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 368.0 billion (31 December 2024: DKK 381.6 billion), of
which DKK 29.9 billion relates to credit institutions and central banks (31 December 2024: DKK 62.0 billion), and other primarily short-
term loans of DKK 0.6 billion (31 December 2024: DKK 1.0 billion), of which DKK 0.6 billion (31 December 2024: DKK 1.0 billion) relates
to credit institutions and central banks.
Derivatives with positive fair value
(DKK millions)
Derivatives with positive fair value before netting
Netting (under accounting rules)
Carrying amount
Netting (under capital adequacy rules)
Net current exposure
Collateral
Net amount
Derivatives with positive fair value after netting for accounting purposes:
Interest rate contracts
Currency contracts
Other contracts
Total
58
Danske Bank / Interim report – first nine months 2025
(DKK millions)
ment bonds
bonds
bonds
Central and
Quasi-
Danish
local govern-
government
mortgage
30 September 2025
Held-for-trading (FVPL)
Managed at fair value (FVPL)
Held to collect and sell
(FVOCI)
Held to collect (AMC)
134,736
9,031
22,759
45,666
2,455
416
7,060
7,128
26,161
18,421
57,671
88,677
Total
212,192
17,059
190,930
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
Swedish
covered
bonds
26,341
1,650
2,307
3,622
33,920
12,283
1,500
2,270
3,036
19,089
Other
covered
Corporate
bonds
bonds
Total
4,877
219
24,737
954
30,787
5,347
195
23,316
813
29,672
6,148
1,997
-
-
8,146
6,500
-
1,948
150
8,597
200,719
31,734
114,535
146,046
493,034
178,017
28,112
104,773
135,714
446,616
30 September 2025 31 December 2024
Total
175,125
13,259
200,873
At 30 September 2025, the Group had an additional bond portfolio, including bond-based unit trust certificates, worth DKK 204,791
million (31 December 2024: DKK 211,477 million) recognised as insurance assets and thus is not included in the table above. The
section on insurance risk in Annual Report 2024 provides more information.
For bonds classified as held-to-collect, amortised cost exceeded fair value as at 30 September 2025 and 31 December 2024. See note
G12 of this report for more information.
199,540
2,604
196,937
121,131
75,806
68,635
7,171
148,033
47,566
1,338
196,937
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 - continued
Bond portfolio broken down by geographical area
(DKK millions)
30 September 2025
Central and
Quasi-
Danish
local govern-
government
mortgage
ment bonds
bonds
bonds
Other
covered
Corporate
Central and
Quasi-
Danish
local govern-
government
mortgage
bonds
bonds
Total
(DKK millions)
ment bonds
bonds
bonds
Other
covered
Corporate
bonds
bonds
Total
39,425
39,397
24,785
10,263
19,985
637
12,586
-
10,737
703
1,848
1
2,668
3,143
45,935
79
-
-
-
427
-
3,075
-
25
5,390
3,167
-
-
-
-
-
149
4,057
769
190,930
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Swedish
covered
bonds
-
33,920
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,848
21,222
-
1
272
-
1,347
-
-
-
75
2
788
-
233
3,229
1,959
190
1,057
24
-
172
142
719
53
4
-
95
262
132
-
108
8,146
31 December 2024
233,584
Denmark
75,277
32,251
32,541
23,084
637
13,054
5,531
15,969
756
1,852
Sweden
UK
Norway
USA
Spain
France
Luxembourg
Finland
Ireland
Italy
1
Portugal
2,838
3,407
47,005
4,136
1,111
493,034
Austria
Netherlands
Germany
Belgium
Other
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
212,192
17,059
190,930
33,920
30,787
175,125
13,259
200,873
19,089
29,672
Denmark
Sweden
UK
Norway
USA
Spain
France
Luxembourg
Finland
Ireland
Italy
Portugal
Austria
Netherlands
Germany
Belgium
Other
Total
59
Danske Bank / Interim report – first nine months 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)
30 September 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
133,291
20,385
31,788
11,970
12,215
-
146
-
1,111
1,285
-
-
-
-
13,547
3,497
9
-
6
-
-
-
-
-
-
-
-
-
190,893
33,701
29,731
1,997
403,162
-
-
37
-
-
-
-
-
-
-
-
-
-
35
184
-
-
-
-
-
-
-
-
-
-
-
2
707
-
-
-
-
-
20
1,299
373
265
708
362
863
347
1,383
-
-
-
-
-
404
127
210
36
98
23,940
33,987
12,380
12,486
708
509
863
2,841
1,689
127
210
36
98
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
212,192
17,059
190,930
33,920
30,787
8,146
493,034
Total
175,125
13,259
200,873
19,089
29,672
8,597
446,616
60
Danske Bank / Interim report – first nine months 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 nine months 2025 of the Danske Bank Group.
The consolidated interim financial statements are prepared 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, equity and
financial position at 30 September 2025 and of the results of the
Group’s operations and the consolidated cash flows for the period 1
January 2025 - 30 September 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.
61
Danske Bank / Interim report – first nine months 2025
Copenhagen, 31 October 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
5 February 2026
26 March 2026
30 April 2026
17 July 2026
29 October 2026
Contacts
Claus Ingar Jensen
Head of Investor Relations
Links
Danske Bank
Denmark
Finland
Sweden
Norway
Northern Ireland
Realkredit Danmark
Danica
Annual Report 2025
Annual general meeting
Interim Report – first quarter 2026
Interim Report – first half 2026
Interim Report – first nine months 2026
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.
62
Danske Bank / Interim report – first nine months 2025
Financial highlights
Executive summary
Financial review
Business units
Financial statements
63
Danske Bank / Interim report – first nine months 2025
Danske Bank Group
Bernstorffsgade 40
DK-1577 København V
Tel. +45 33 44 00 00
CVR no. 61126228-København
danskebank.com