Danske Bank

Below you will find answers to frequently asked questions about Danske Bank:

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 Danske Bank Group.

Historical timeline
See the history of Danske Bank in words and pictures.
What are Danske Bank's capital targets?
The Group's ambition is to have a common equity tier 1 ratio of at least 13% and a total capital ratio of at least 17%. These targets were met at the end of 2012.For 2015 the ambition is around 14% CET1 and well above 17% total capital ratio.
What is Danske Bank's domestic market?
Danske Bank is domiciled in Denmark, where it is the largest bank, with nearly 30% of the market. Danske Bank considers the Nordic countries and Northern Ireland to be its primary market.

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 more than 3.7 million retail customers and a significant number of corporate and institutional customers.
How many online customers does Danske Bank have?
Some 2.2 million customers use the Group's online services.
How many branches does Danske Bank have?
Danske Bank has 329 branches.
  • Denmark: 144
  • Finland: 45
  • Sweden: 38
  • Norway: 32
  • Northern Ireland: 46
  • The Baltics: 24

How many employees work at Danske Bank?
Danske Bank Group's staff numbers 18,478.
What are Danske Bank's debt ratings?
Danske Bank is rated by the three international credit rating agencies Moody's, Standard & Poor's (S&P), and Fitch Ratings. Read more about how Danske Bank is rated.
When does Danske Bank go on roadshow?
Danske Bank conducts roadshow four times a year, after the release of our financial reports. See an overview of the roadshows.
Where will Danske Bank go on roadshow in 2014?
The roadshow plan for 2015 includes the following cities so far (in alphabetical order):

  • Copenhagen
  • Edinburgh
  • Frankfurt
  • Helsinki
  • London
  • Paris
  • Stockholm
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 shares
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 share price?
The share monitor always displays Danske Bank's current share price.
What is Danske Bank's dividend policy?
The Group's dividend payout ratio is 40-50% of the net profit for the year after tax.
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 december 2014, Danske Bank's share capital totalled DKK 10,086,200,000 and shares numbered 1,008,620,000. The number of shares outstanding was 999,390,566 and the average number of shares outstanding was 999,445,983. Read more about Danske Bank's share capital.
Does Danske Bank have several share classes?
No, Danske Bank has only one share class, and all shares thus carry the same rights.
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.
How many shareholders does Danske Bank have?
Danske Bank has some 284,600 shareholders. Read more about Danske Bank's ownership.
Who are Danske Bank's largest shareholders?
Three shareholders have announced that they own more than 5 pct. of Danske Bank's share capital:

  • The A.P. Møller Mærsk Group and the A.P. Møller and Chastine Mc-Kinney Møllers Foundation, Copenhagen (22.98%)
  • Cevian Capital (7.7%)

Read more about Danske Bank's largest shareholders

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Business areas
What business areas does Danske Bank cover?
Danske Bank offers banking services as well as insurance, mortgage finance, investment management, real estate and leasing services.
What are the most important business areas?
Business Banking accounted for around 32% and Personal Banking for 28% of the Group's profit before loan impairment charges and goodwill impairment charges in the fourth quarter of 2014. Read more about Danske Bank's business areas.
What are the most important business units in Danske Bank Group?
On 1 June 2012, we changed our organisation so that the Bank now consists of three business units – Personal Banking, Business Banking and Corporates & Institutions – that span all of the Group’s geographical markets. As part of the reorganisation, all of our banking activities has be gathered under the Danske Bank brand name. Our financial reporting was adjusted to the new organisation on 1 January 2013.

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Financial information
What was Danske Bank's net profit in the fourth quarter of 2014?
Danske Bank realised a net profit of DKK -6.3 billion. Netprofit before goodwill impairment charges was DKK 2.8 billion. Read our financial reports.
Were there any one-off items in Danske Bank's latest financial results?
See a list of all one-off items and other extraordinary items that have been disclosed and noted in Danske Bank's financial accounts this year.
What are Danske Bank's total assets?
In the fourth quarter of 2014, Danske Bank's total assets amounted to DKK 3,453 billion. Read more about the Bank's balance sheet.
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.
How sensitive is Danske Bank to changes in short-term interest rates?
A 25bp increase in short-term interest rates would raise Danske Bank's net interest income by about DKK 800 million per annum.
Does the Danish central bank follow the ECB's changes in interest rates?
The Danish krone is pegged to the euro, and any changes in the short-term euro rate are normally reflected in the Danish short-term interest rate.
What is Danske Bank's cost of capital?
Danske Bank's cost of capital is estimated to be 12% pre-tax and 9% after tax.
How much does Danske Bank earn on remortgaging activity?
As a rule of thumb, Danske Bank earns approximately DKK 6,000 per million of remortgaging volume.
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.
What is Danske Bank's financial year?
Danske Bank's accounts follow the calendar year.
When does Danske Bank publish its financial results?
Danske Bank publishes financial reports four times a year. For specific dates, see the financial calendar.
Where can I find additional financial information about Danske Bank?
Additional financial information about Danske Bank is always available on this website. You can also download or order financial reports.

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What is the CRD IV and CRR?
The Capital Requirements Directive (CRD IV) and Capital Requirements Regulation (CRR) are the EU directive and regulation that set forth the rules for credit institutions' capital adequacy. CRR took effect on 1 January 2014 throughout the EU. CRR regulates areas such as the calculation of capital base, RWA, liquidity and large exposures and need not be implemented in national law. CRD IV is implemented in national law, and in Denmark in the Danish Financial Business Act. CRD IV treats rules on remuneration, governance, the dialogue between credit institutions and the supervisory authority on the determination of the solvency need, among other things. CRD IV took effect on 31 March 2014 in Denmark. The new rules are intended to implement the latest global banking standards in Basel III so as to create more consistent regulations across the EU.
What is BIS?
The BIS is the Bank for International Settlements, an international organisation intended to advance international monetary and financial cooperation. The BIS is the central bank for the national central banks. The BIS fulfils this role by being a centre for economic and monetary research and by serving as the central banks’ counterparty in their mutual financial transactions, among other things.

Basel II and Basel III are based at the BIS.
Where can I read more about Danske Bank's compliance with the capital requirement rules?
See the Group's Risk Management report for a description of the Bank's compliance with the capital requirement rules under Pillars I, II, and III.
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 Thomas Borgen, CEO; Tonny Thierry Andersen, head of Personal Banking; Lars Mørch, head of Business Banking, Glenn Söderholm, Head of Corporates & Institutions; Henrik Ramlau-Hansen, Chief Financial Officer, James Martin Ditmore Chief Operating Officer and as of 1 April 2015 Gilbert Kohnke will join the Executive Board as Chief Risk Officer. Read more about Danske Bank's Executive Board.

The chairman of the Board of Directors is Ole Andersen. Read more about Danske Bank's Board of Directors.
Does Danske Bank have incentive programmes for management and staff?
Danske Bank has incentive programmes for the Executive Board, selected specialists and managers as well as staff in investing functions at Danske Capital and capital market functions at Danske Bank Markets.

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Corporate Responsibility
How does Danske Bank define its corporate responsibility?
Danske Bank believes that corporate responsibility (CR) must be an integral part of the way the Group operates its financial business. This means that our work with CR must be closely related to our core business and the employees' competencies. Read more about responsibility in business.
How does Danske Bank work with Corporate Responsibility in practical terms?
The Group works with CR in the following focus areas: Business and Society, Employees, Financial Literacy and the Environment. In each area, there are products, programmes and one-off activities that support the overall CR strategy. Read about Corporate Responsibility .

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Investor service
Where can I get additional information about Danske Bank?
Our website offers extensive information about the Bank. You can also contact our Investor Relations department.

Last updated on 3 March 2015


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Danske Bank Group
Holmens Kanal 2-12 1092 Copenhagen K

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