February 10, 2005
Today Danske Bank published its Annual Report for 2004
Highlights are shown below:
- Danske Bank Group realised an increase in net profit of 14%. The net profit for 2004 was DKr10,558m, against DKr9,286m for 2003.
- Earnings per share rose 21%.
- Group core earnings rose 21% to DKr12, 682m, against DKr10,467m the year before. Provisions for bad and doubtful debts amounted to a net positive entry of DKr18m, against a charge of DKr1,662m in 2003. The positive trend was attributable to the favourable economic conditions.
- Core income stood at DKr27,257m, against DKr26,949m the year before.
- Costs fell 2%, and the cost/core income ratio improved to 53.5% from 55.0% in 2003.
- The approval by the relevant authorities of the purchase of Northern Bank in Northern Ireland and National Irish Bank in the Republic of Ireland is expected by the end of the first quarter of 2005.
- With effect from the accounting year beginning on January 1, 2005, Danske Bank Group will prepare its financial reports in accordance with the International Financial Reporting Standards (IFRS). The pre-tax profit for 2005 is expected to be at a level similar to that of 2004 presented in accordance with the IFRS.
Commenting on the results, Danske Bank's chief executive, Peter Straarup, said, "2004 was a good year for Danske Bank Group. The year showed a high level of activity and progress in nearly all business areas. Banking operations in Denmark, Norway and Sweden recorded substantial growth in lending, particularly in the retail segment. With the organisational adjustments at the end of the year and our acquisi-tion of the two banks in Northern Ireland and the Republic of Ireland, we have a very solid platform for future growth."
You can read the
full report in the Investor Relations section.
Transition to IFRS in 2005
With effect from the accounting year beginning on January 1, 2005, the Danske Bank Group will present its accounts in accordance with the International Financial Reporting Standards (IFRS) that were approved by the EU Commission with effect from January 1, 2005. Consequently, the valuation of certain assets and liabilities and the presentation of the profit and loss account and the balance sheet will change. The Group has decided to restate all accounting figures for 2004 in accordance with its IFRS accounting policies.
The transition to IFRS will entail a net increase of DKr2,618m in the Group’s shareholders’ equity at January 1, 2004, due mainly to a reversal of provisions for bad and doubtful debts. If the 2004 Annual Report had been presented according to the IFRS accounting policies, the Group’s net profit would have been DKr1,241m lower.
For a more detailed review, please consult the Annual Report for 2004 or the IFRS White paper.