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Danske Bank
1. What are Danske Bank's vision and mission?
Our vision is "One platform – exceptional brands", and our mission is "to be the best local financial partner".
Learn more about our vision and mission in an animated presentation.
2. 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.
3. What are Danske Bank’s capital targets?
At the beginning of 2008, the Group's minimum capital targets for its core capital and solvency ratios were 7.5% and 11.0%, respectively.
At the end of 2008, these capital targets no longer formed the basis for optimum solvency level management because the Group believes that higher minimum targets will be needed in response to the international financial turmoil. In light of this situation, the Group will revise its capital targets when conditions in the financial markets have been clarified.
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4. What is Danske Bank’s domestic market?
Danske Bank is domiciled in Denmark, where it is the largest bank, with around one third of the market. The Danske Bank Group considers northern Europe to be its primary market.
In recent years, the Group has acquired Östgöta Enskilda Bank, 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.
5. 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.
6. How many online customers does Danske Bank have?
Some 2.3 million customers use the Group’s online services.
7. How many branches does Danske Bank have?
On 30 June 2010, Danske Bank had 703 branches.
- Denmark: 320
- Finland: 121
- Sweden: 49
- Norway: 45
- Northern Ireland: 82
- The Republic of Ireland: 50
- The Baltics: 36
8. Why did Danske Bank buy real estate agencies in Norway (Krogsveen and Meglerhuset Nylander) and Sweden (Skandia Mäklarna)?
The acquisition of Krogsveen, Meglerhuset Nylander and Skandia Mäklarna gave us good access to real property customers in two important markets. It strengthened Fokus Bank's and Danske Bank Sweden's distribution channels.
Back to top9. How many employees work at Danske Bank?
Danske Bank Group’s staff numbers 22,025.
10. What are Danske Bank’s debt ratings?
Danske Bank is rated by the three internatinal credit rating agencies Moody’s, Standard & Poor’s (S&P), and Fitch Ratings.
Read more about how Danske Bank is rated.
11. When does Danske Bank hold roadshows?
Danske Bank conducts roadshows four times a year, after the release of our financial reports. See an overview of the
roadshows.
12. Where will Danske Bank hold roadshows in 2010?
The roadshow plan for 2010 includes the following cities (in alphabetical order):
- Amsterdam
- Boston
- Brussels
- Copenhagen
- Dublin
- Edinburgh
- Frankfurt
- Geneva
- Helsinki
- London
- Milan
- New York
- Oslo
- Paris
- Stockholm
- Toronto
- US West coast
- Vienna
- Zurich
13. 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
Back to topDanske Bank share14. 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 Danske Bank's share price?
The
share monitor always displays Danske Bank's current share price.
16. What is Danske Bank’s dividend policy?
On 6 October 2008, the Danish state issued a 2-year guarantee on all deposits with and simple obligations of Danish financial institutions. Because of this arrangement, Danish banks may not pay out dividends during the period of the guarantee. This means that Danske Bank may not pay out dividends before 30 September 2010. The Group has not yet determined its dividend policy for the period after this date.
17. 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.
18. How many Danske Bank shares are outstanding?
On 30 June 2010, Danske Bank's share capital totalled DKK 6,988,042,760 and shares numbered 698,804,276. The number of shares outstanding was 691,785,124 and the average number of shares outstanding was 691,217,505. Read more about Danske Bank's
share capital.
Back to top19. 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 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.
21. How many shareholders does Danske Bank have?
At the end of June 2010, Danske Bank had some 331,300 shareholders. Read more about Danske Bank's
ownership.
22. 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 (22.76%)
- Fonden RealDania (10.07%)
Read more about Danske Bank’s
largest shareholders.
Business areas23. What business areas does Danske Bank cover?
The Danske Bank Group offers 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 31.5% of the Group's profit before loan impairment charges in the second quarter of 2010. 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 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.
Back to topFinancial information26. What was Danske Bank’s net profit in Q2 2010?
In Q2 2010 Danske Bank realised a net profit of DKK 1.7 billion. Read our
financial reports.
27. 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.
28. What are Danske Bank’s total assets?
On 30 June 2010, Danske Bank’s total assets amounted to DKK 3,364 billion. Read more about the Bank's
balance sheet.
29. How does 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. Danske Bank Denmark and Realkredit Danmark feel this effect the most because these business areas have the largest amounts of liquidity and shareholders’ funds.
30. 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 450 million per annum.
Back to top31. 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.
32. 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.
33. 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.
34. 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.
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 reports four times a year. For specific dates, see the financial calendar.
37. 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.
38. Where can I order the annual report?
You can order materials here.
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CRD
39. 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.
40. 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.
41. 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.
42. 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.
43. 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.
44. 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
45. 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 Peter Straarup, Chairman; Tonny Thierry Andersen, Chief Financial Officer; Thomas Borgen, head of International Banking Activities & Danske Markets; 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.
46. Where can I read more about corporate governance principles at Danske Bank?
You can read more about Corporate Governance here.
47. Does Danske Bank have incentive programmes for management and staff?
Because of the financial crisis, the Group discontinued its incentive programmes, except for staff in investing functions at Danske Capital and capital market functions at Danske Markets. There are no plans to reinstate incentive programmes in the rest of the Group.
48. Where can I find Danske Bank’s Articles of Association?
You can read or download Danske Bank’s Articles of Association here.
Corporate Responsibility
49. 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.
50. How does Danske Bank work with Corporate Responsibility in practical terms?
The Group works with CR in four focus areas: Business, Employees, Environment and Society. In each area, there are products, programmes and one-off activities that support the overall CR strategy. Read about the four focus areas.
51. Which of the Group’s business units are covered by the Group’s CR strategy?
The overall principles that are defined in the CR strategy apply to all of the Group’s business units. But the individual areas in the strategy are of course adjusted to the local conditions at the various units.
52. Where can I read more about Danske Bank’s work on Corporate Responsibility?
You can read the Group’s latest CR report, Corporate Responsibility 2008
Investor service
53. 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.
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Last updated on 10 August 2010