FAQ

Here you can read about the following topics:

• Danske Bank
• Danske Bank share
• Business areas
• Financial information
• Corporate Governance
• Investor Service
• The acquisition of National Irish Bank and Northern Bank
• The acquisition of Sampo Bank
• International Financial Reporting Standards (IFRS)
• Merger of BG Bank and Danske Bank

Danske Bank

1. What is Danske Bank's vision and mission?
Danske Bank's vision is "One platform – exceptional brands" and our mission is "to be the best local financial partner".

See, hear and read more about our vision and mission.

2. When was Danske Bank founded?
Danske Bank A/S was founded in 1871 and has since merged with many other banks. In 1990, the Bank merged with Handelsbanken (founded in 1873) and Provinsbanken A/S (founded in 1846). In the autumn of 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.

3. What are Danske Bank’s capital targets?
Danske Bank’s capital management will pursue the following general targets:

Capital targets 2008 in %
Capital	March 31, 2008	January 1, 2008	Targets
Core (tier 1) capital ratio	9.5	8.7	Min. 7.5
Solvency ratio	13.6	12.6	Min. 11.0

Read more about Danske Bank’s financial goals.


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4. What is Danske Bank’s domestic market?
The financial markets of Northern Europe make up Danske Bank’s domestic market. In recent years, Danske Bank has strengthened its position through acquisitions; in 1997, the Group acquired Östgöta Enskilda Bank in Sweden and in 1999, Fokus Bank in Norway. The Bank is also represented in Hamburg, Luxembourg, Warsaw and has representative offices in France and Spain.

In December 2004, Danske Bank announced that is has signed an agreement with National Australia Bank to purchase Northern Bank (www.northernbank.co.uk) in Northern Ireland and National Irish Bank (www.nationalirishbank.ie) in the Republic of Ireland. By February 28, 2005, Danske Bank had received all relevant approvals.

In November 2006, Danske bank signed an agreement to purchase Sampo Bank (www.sampobank.com) in Finland. The deal was approved by regulatory authorities in the European Union on January 30, 2007 and closed on February 1, 2007.

5. How many customers bank with Danske Bank?
In Denmark, Norway, Sweden, Northern Ireland, Ireland, Finland and the Baltics combined, the Group serves approx. 5.0 million retail customers and a significant number of corporate and institutional customers.

6. How many online customers does Danske Bank have?
Some 2 million customers use the Group’s online services.

7. How many branches does Danske Bank have?
Danske Bank had 836 branches ultimo March 2008.

• Denmark: 399
• Finland: 121
• Sweden: 59
• Norway: 55
• Northern Ireland: 94
• The Republic of Ireland: 64
• The Baltics: 44
  
  

8. Why did Danske Bank buy real estate agencies in Norway (Krogsveen & Meglerhuset Nylander) and Sweden (Skandia Mäklarna)?
The acquisition of Krogsveen, Meglerhuset Nylander and Skandia Mäklarna gives us a good point of entry to clients involved in buying real estate. This will strengthen Fokus Bank's and Danske Bank Sweden's distribution channels further.

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9. How many employees work at Danske Bank?
As of end March 2008, the Danske Bank Group’s staff numbers 23,719 people.

10. Which are Danske Bank’s debt ratings?
Danske Bank has an AA- rating from Standard & Poor’s, an Aa1 rating from Moody’s and an AA- rating from Fitch Ratings. Read more about Danske Bank’s debt ratings.

11. When is Danske Bank on roadshow?
Danske Bank conducts roadshows four times a year, after the release of the Group's financial reports. See the  roadshows already planned.

12. Where will Danske Bank be on roadshow in 2008?
The roadshow plan for 2008 includes the following cities (in alphabetical order):

• Amsterdam
• Boston
• Copenhagen  
• Dublin
• Edinburgh
• Frankfurt
• Geneva
• Helsinki
• London
• Los Angeles
• Milan
• Montreal 
• Munich
• New York
• Oslo
• Paris
• Reykjavik 
• San Diego
• Stockholm  
• Toronto
• Zurich
• Wienna
  
  

13. Who arrange 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:

• Analysts' knowledge and coverage of Danske Bank
• Brokers' contact to investors
• Brokers' planning of the roadshow
  
  

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Danske Bank share

14. 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.

15. What is the market price of the Danske Bank share?
Danske Bank’s current share price is always available on this Web site.

16. What is Danske Bank’s dividend policy?
Danske Bank aims to maintain a payout ratio of 30%-50%. The payout ratio is the percentage of net profits paid out as dividends.

Suggested dividend for 2007 is DKr 8.50 per share. The Group is planning a payout ratio of 40% for 2008.

17. When is the dividend paid out?
If you own the share on the date of the annual general meeting, you are entitled to dividend. 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 dividend.

18. How many shares outstanding does Danske Bank have?
At the end of March 2008, the share capital totalled DKr 6,988,042,760 and shares numbered 698,804,276. The number of shares outstanding was 684,508,678, and the average number of shares outstanding was 685,448,755. Read more about the share capital development.

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19. Does Danske Bank have several share classes?
No, Danske Bank has only one share class and all shares thus carry the same rights.

20. 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, after the payment of dividends, shareholders’ funds exceed the target, 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.

21. How many shareholders does Danske Bank have?
By the end of December 2007, Danske Bank had 306.603 shareholders. Read more about Danske Bank's shareholders.

22. Who are Danske Bank’s largest shareholders?
Two shareholders have announced that they own more than 5% of Danske Bank’s share capital:

• A.P. Møller and Chastine Mc-Kinney Møllers Foundation, Copenhagen (22%)
• Fonden RealDania (12%).
  

Read more about Danske Bank’s largest shareholders.


Business areas

23. What business areas does Danske Bank cover?
The Danske Bank Group offers its customers banking services as well as insurance, mortgage finance, investment management, real estate and leasing services.

24. What are the most important business areas?
Our retail bank in Denmark - Danske Bank - accounted for around 61% of profit before credit loss expenses in the first quarter of 2008. Read more about Danske Bank's business areas.

25. What are the most important brands in the Danske Bank Group?
The Danske Bank Group operates under a number of brands.
In Denmark, the Group operates Danske Bank, Danske Markets, the mortgage finance institution Realkredit Danmark and the life and pensions company Danica Pension. To these should be added 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 comprises a number of brands. The Danske Bank Group also owns Northern Bank in Northern Ireland, National Irish Bank in the Republic of Ireland and Sampo Bank in Finland, the Baltics and Russia.

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Financial information

26. What was Danske Bank’s net profit in the first quarter of 2008?
In 2007, Danske Bank realised a net profit of DKr 2.6bn. Read our financial reports.

27. Were there any one-off items in Danske Bank's latest financial results?
The result for the first quarter of 2008 included 333m in gains for sale of properties. See a list of all one-off items and other extraordinary items which have been disclosed and noted in Danske Bank's financial accounts this year.

28. What were Danske Bank’s total assets in the first three months of 2008?
Danske Bank’s total assets amounted to DKr 3,443bn at the end of March 2008. Read more about the Bank's balance sheet.

29. How do declines in interest rates affect the Bank?
Danske Bank has liquidity placed in the financial markets. When interest rates fall, the return on this liquidity also falls, with a negative effect on results. Danske Bank-brand and Realkredit Danmark feel this effect the most, as these are the business areas with the largest amounts of liquidity and shareholders’ funds.

30. How sensitive is Danske Bank to changes in the short-term interest rate?
A 25bp increase in the short-term interest rate would raise Danske Bank's net interest income by about 425 million per annum (incl. Sampo Bank).

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31. 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 have normally been reflected in the Danish short-term interest rate.

32. What is Danske Bank's cost of capital?
Danske Bank's cost of capital is estimated to be 12% pre-tax and 9.0% after tax.

33. How much does Danske Bank earn on remortgaging activity?
As a rule of thumb, Danske Bank earns approximately 6,000 kroner per every million of remortgaging volume.

34. What accounting rules does Danske Bank follow?
The following lay the legal foundation for Danske Bank's annual report:

• International Financial Reporting Standards (IFRS)
• The Copenhagen Stock Exchange's rules for issuers of exchange-listed securities
• The Danish Financial Supervisory Authority's executive order on financial institutions' accounts (parent company)
• The provisions of the Danish Financial Business Act
  
  

The following lay the legal foundation for Danske Bank's reports:

• International Financial Reporting Standards (IFRS)
• The OMX rules
• The Danish Financial Supervisory Authority's executive order (parent company)

The quarterly reports are regulated by the IFRS and the OMX rules only.

The Group's Danish subsidiaries that are not subject to the Financial Business Act submit their accounts in accordance with the provisions of the Danish Accounts Act.

35. What is Danske Bank’s financial year?
Danske Bank’s accounts follow the calendar year.

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36. When does Danske Bank publish its financial results?
Danske Bank publishes financial statements four times a year. Read more about the Bank's plans to publish its financial reports.

37. Where can I find additional financial information on Danske Bank?
Additional financial information on Danske Bank is always available on this Web site. You can also download and order financial statements.

38. Where can I order the annual report?
You can always order the annual report on this Web site.

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Corporate governance

39. Who are members of the Executive Board and who is Chariman of the Board of Directors at Danske Bank?
The Executive Board of Danske Bank consists of Peter Straarup, Chairman, Tonny Thierry Andersen, Chief Financial Officer; Sven Lystbæk, 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 Alf Duch-Pedersen, former Chief Executive of Danisco A/S. Read more about The Danske Bank's Board of Directors.

40. Where can I read more about corporate governance principles at Danske Bank?
You can always read more about corporate governance on this Web site.

41. Does Danske Bank have incentive programmes for management and staff?
The Group’s incentive programmes for management and staff build on value creation within the Group and include share options, rights to purchase conditional shares, employee shares and cash bonuses. The Board of Directors does not participate in the incentive programmes. Read more about our incentive schemes.

42. Where can I find Danske Bank’s Articles of Association?
Danske Bank’s Articles of Association are available on this Web site.

Investor service

43. Where can I get additional information on Danske Bank?
Danske Bank’s Web site offers extensive information on the Bank. You may also contact our Investor Relations department.

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The acquisition of National Irish Bank and Northern Bank

44. When were Northern Bank and National Irish Bank consolidated in the Group's accounts?
Northern Bank and National Irish Bank were consolidated in March, 2005.

45. How much of the goodwill has been allocated to intangible assets?
Danske Bank has allocated 1.7 billion of the total goodwill to intangible assets. The main component is Customer Relations.

46. Over how long a period will the intangible assets be amortised?
The intangible assets of Dkr 1.7 billion were amortised over 3 years (36 months). The amortisations were finalised at the end of February 2008.

47. Where can I get additional information on the acquisition of National Irish Bank and Northern Bank?
We have gathered all information regarding the acquisition in a  separate section of this Web site.

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The acquisition of Sampo Bank

48. When was Sampo Bank consolidated in the Group's accounts?
Sampo Bank has been consolidated as of February 1, 2007.

49. How much of the acquisition price has been allocated to intangible assets?
Danske Bank has allocated Dkr 4.4bn to customer relations and Dkr 0.3bn to other customer relations. The intangible assets will be amortised over respectively 10 and 5 years.

50. Where can I get additional information on the acquisition of Sampo Bank?
We have gathered all information regarding the acquisition in a separate section of this Web site.

International Financial Reporting Standards (IFRS)

51. Where can I get additional information on the introduction of IFRS?
We have gathered all information regarding the introduction of IFRS under a separate menu item.

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Merger of BG Bank and Danske Bank

52. When did BG Bank and Danske Bank Denmark merge into one bank?
The decision to merge the two bank divisions was announced when Danske Bank presented its 2006 Annual Report on 31 January 2007. The merger took effect on 10 April 2007, at which time BG Bank facades and signs were changed to the Danske Bank name.

53. What did the merger of the two banks mean?
In the course of 2007, a total of 118 branches merged into 59 continuing branches, and at the end of 2007, Danske Bank Denmark thus had 399 branches. These were branches that were located very close to each other. Customers will continue to be served by the advisers they know as the advisers have joined the staff of the continuing branch.

54. What was the rationale behind the merger?
The rationale behind the merger was that BG Bank's position relative to that of Danske Bank has changed since 2000 when BG Bank became part of the Danske Bank Group. At the time, the decision to operate two banks was based on three factors:

• The customer segments of the two banks did not overlap.
• The corporate cultures and the employees of the two banks were very different.
• The two banks attracted different customer segments and therefore created more value for the Group by operating as independent banks.
  
  

BG Bank has lost market share since it became part of the Danske Bank Group. Not because its customers were not satisfied but because the bank found it hard to attract new customers. Moreover, as time went by, the customer segments of the two banks became increasingly similar because the cultures of the two banks became more similar. The main reason for the increasing similarity is the shared platform, which consists of the Danske Bank Group's core values, IT platform and very similar product offerings. Consequently, there are no longer strong arguments for maintaining two separate banks.

55. What are the financial consequences of the merger?

• Total costs of DKr275m over the period from 2007 to 2009.
• Annual savings of about DKr300m - with full accounting effect in 2010.
• We expect full effect of the merger in 2010.

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Last updated on April 29, 2008