Danske Bank
When was Danske Bank founded?
Danske Bank A/S was founded in 1871 and has since merged with many other banks. Some of them also have long histories. In 1990, the Bank merged with Handelsbanken (founded in 1873) and Provinsbanken A/S (founded in 1846). In 2000, RealDanmark A/S, the parent company of Realkredit Danmark A/S (founded in 1851) and BG Bank A/S (founded in 1857), became part of the Danske Bank Group.
Historical timeline
See the
history of the Danske Bank Group in words and pictures.
What are Danske Bank's capital targets?
The Group suspended its capital targets at the end of 2008 because of the financial crisis. The Group expects to set revised targets after the conditions in the financial markets have been clarified.
What is Danske Bank's domestic market?
Danske Bank is domiciled in Denmark, where it is the largest bank, with around 30 pct. of the market. The Danske Bank Group considers northern Europe to be its primary market.
In recent years, the Group has acquired Danske Bank Sverige, Sweden (1997); Fokus Bank, Norway (1999); Northern Bank, Northern Ireland (2005); National Irish Bank, the Republic of Ireland (2005); and Sampo Bank, Finland and the Baltics (2007). The Group is also represented in Hamburg, Luxembourg and Warsaw. With substantial retail banking operations in these markets, the Group is one of the leading financial players in the region.
How many customers bank with Danske Bank?
In Denmark, Norway, Sweden, Northern Ireland, Ireland, Finland and the Baltics combined, the Group serves some 5 million retail customers and a significant number of corporate and institutional customers.
Where will Danske Bank go on roadshow in 2012?
The roadshow plan for 2012 includes the following cities (in alphabetical order):
- Amsterdam
- Boston
- Brussels
- Copenhagen
- Dublin
- Edinburgh
- Frankfurt
- Geneva
- Helsinki
- Jutland
- London
- Milan
- Montreal
- New York
- Oslo
- Paris
- Stockholm
- Toronto
- US Mid & West coast
- Zurich
Who arranges Danske Bank's roadshows?
Our roadshows are organised by brokerage firms that have
analyst coverage of Danske Bank. Danske Bank selects the hosts on the basis of an internal grading system that includes factors such as these:
- Analyst's knowledge and coverage of Danske Bank
- The firm's contact with investors
- The firm's planning of the roadshow
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Danske Bank share
Where are Danske Bank's shares listed?
Danske Bank shares are listed on the Nordic Exchange (OMX) and are included in the OMX Copenhagen 20 (OMXC20) index of the 20 most actively traded shares on the exchange.
What is Danske Bank's dividend policy?
With due consideration to the Group's capital needs, the Board of Directors wishes to distribute up to one third of the net profit for the year, assuming that the dividend payments do not result in an increase in the interest payments on the hybrid capital raised from the Danish state.
When is the dividend paid out?
If you own Danske Bank shares on the date of the annual general meeting, you are entitled to a dividend payment. The dividend is paid into the cash account linked to your custody account four banking days after the general meeting. Read more about Danske Bank's
dividends.
How many Danske Bank shares are outstanding?
On 31 March 2012, Danske Bank's share capital totalled DKK 9,317,390,340 and shares numbered 931,739,034. The number of shares outstanding was 926,041,368 and the average number of shares outstanding was 926,952,152 at the end of March 2012.
In the period from 14 March to 6 April, 2011, Danske Bank increased its share capital through a share offering with pre-emptive subscription rights for existing shareholders. The offering was fully subscribed for 232,934,758 new shares. Afterwards, the share capital totalled DKK 9,317,390,340 and consisted of 931,739,034 shares with a nominal value of DKK 10 each. Read more about Danske Bank's
share capital.
Why does Danske Bank buy back shares and what happens to repurchased shares?
Danske Bank uses share repurchases to manage the amount of its shareholders' funds. If shareholders' funds exceed the target after the payment of dividends, the Bank considers a buyback.
Shares repurchased are cancelled. In practice, this takes place some three months after the decision is taken at the annual general meeting.
Who are Danske Bank's largest shareholders?
Two shareholders have announced that they own more than 5% of Danske Bank's share capital:
- The A.P. Møller Mærsk Group and the A.P. Møller and Chastine Mc-Kinney Møllers Foundation, Copenhagen (22.84%)
- Fonden RealDania (10.07%)
- Cevian Capital II GP Limited (5,06 pct.)
Read more about Danske Bank's
largest shareholders
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Business areas
What are the most important brands in the Danske Bank Group?
The Danske Bank Group operates under a number of brand names. In Denmark, the Group operates Danske Bank, Danske Markets, the mortgage finance institution Realkredit Danmark, the life and pensions company Danica Pension, the real estate chain "home", and the leasing company Nordania Leasing.
In Norway, Danske Bank owns Fokus Bank, and in Sweden, Danske Bank Sweden Branch, which in turn includes a number of branded branch offices. The Danske Bank Group also owns Northern Bank in Northern Ireland, National Irish Bank in the Republic of Ireland, Sampo Bank in Finland, and three branded banking units in the Baltics.
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Financial information
How do changes in interest rates affect the Bank?
Danske Bank has liquidity placed in the financial markets. When interest rates increase or fall, the return on this liquidity also increase or falls, with a positive or negative effect on the Bank's results. Retail Denmark feels this effect the most because this business area have the largest amounts of liquidity and shareholders' funds.
What accounting rules does Danske Bank follow?
The following sets of rules form the legal foundation for Danske Bank's annual and interim reports:
- The Danish Financial Business Act
- International Financial Reporting Standards (IFRS) issued by IASB and approved by EU with related interpretations issued by IFRIC
- The Danish FSA's Executive order on financial reports for credit institutions and investment companies etc.
- NASDAQ OMX Copenhagen's rules for issuers of listed securities
The Group's Danish subsidiaries, which are not covered by the Danish Financial Business Act, must submit annual reports in accordance with the provisions of the Danish Act on commercial enterprises' presentation of financial statements etc.
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CRD
What is the Capital Requirements Directive?
The Capital Requirements Directive (CRD) is an EU directive outlining the rules on the capital requirements of credit institutions. The directive is based on Basel II, which is a set of international guidelines for the capital requirements of credit institutions. The CRD replaced the previous rules in 2007. The proposal for the new directive was released in July 2011, but it has not yet been adopted.
What is BIS?
BIS stands for Bank of International Settlements, which is an organisation whose purpose is to encourage international monetary and financial co-operation. The BIS is also the bank for national central banks.
The BIS fulfils this task by being a research centre for economic and monetary subjects and acting as the central banks' counterparty in their financial transactions.
Basel II is originated in the BIS.
What is the purpose of Pillar I?
Pillar I contains generic rules for the calculation of credit, market, and operational risks in the determination of a bank's risk-weighted assets. The rules also stipulate the minimum capital requirement for banks: 8% of risk-weighted assets.
What is the purpose of Pillar II?
Pillar II outlines the framework for the supervisory process and the framework for banks' internal capital adequacy assessment process (ICAAP).
A bank is exposed to a number of risks, and they are not limited to the risks that are quantified under Pillar I (credit, market and operational risks). Pillar II therefore covers banks' risks in a broader sense, such as business, pension, concentration, correlation and migration risks as well as banks' situation and expectations in general. Pillar II also covers stress testing.
What is the purpose of Pillar III?
Pillar III covers a number of disclosure obligations. The purpose is to increase market discipline by letting external stakeholders gain a better understanding of banks' capital adequacy calculations and procedures.
The Group's
Risk Management report includes information about Pillar III.
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Corporate Governance
Who are members of the Executive Board and who is chairman of the Board of Directors at Danske Bank?
The Executive Board of Danske Bank consists of Eivind Kolding, Chairman; Henrik Ramlau-Hansen, Chief Financial Officer; Tonny Thierry Andersen, head of Banking Activities Denmark; Thomas Borgen, head of International Banking Activities & Danske Markets; Georg Schubiger, head of Danske Bank's Shared Services Centre and Per Skovhus, head of Credits. All are members of Danske Bank's Executive Committee. Read more about the Danske Bank Group's
Executive Board.
The chairman of the Board of Directors is Ole Gjessø Andersen. Read more about The Danske Bank's
Board of Directors.
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Corporate Responsibility
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Investor service