Second Quarter Results 2015

16.07.2015

Second Quarter Results 2015

CEO Christian Clausen’s comments on the results:
“After an exceptional start to the year, we saw in the second quarter a stabilisation of net interest income, a somewhat lower customer activity level in the capital markets, while the strong trend in the savings and investment operations continued, confirming the strong customer demand for our advisory expertise and products. For the first half of the year, total operating income grew 7% in local currencies, while costs in local currencies were down more than 1%, and consequently our cost to income ratio has improved more than 4%-points. Credit quality remains solid and loan losses are well below the 10-year average. The return on equity improved 2.1%-points to 13.7% and the CET1 ratio increased to 16.0%.

Our simplification programme and the work to build the Future Relationship Bank are well on track, with the launch of the first products on our new payment platform scheduled for the coming quarters. As part of the simplification of our bank we have initiated a dialogue with the authorities in the Nordic countries regarding simplifying our legal structure.”

(For further viewpoints, see CEO comments on page 2 of the interim report)

First half year 2015 vs. First half year 2014 (Second quarter 2015 vs. Second quarter 2014)[1]:
•    Net interest income EUR 2,597m, -5%, in local currencies -3% (-3% in local currencies)
•    Total operating income EUR 5,242m, +6%, in local currencies +7% (+4% in local currencies)
•    Total expenses[2]  EUR 2,373m, -3%, in local currencies -1% (-1% in local currencies)
•    Operating profit[2] EUR 2,644m, +19%, in local currencies +21% (+12% in local currencies)
•    Common equity tier 1 capital ratio 16.0%, up from 15.2% (up 80 bps from 15.2%)
•    Cost/income ratio[2] down to 45% from 49% (down 2%-points from 49%)
•    Net loan losses EUR 225m, -23%, in local currencies -22% (-23% in local currencies)
•    Loan loss ratio of 13 basis points, down from 17 basis points (down 4 basis points to 12 basis points)
•    Return on equity[2] 13.7%, up from 11.6% (up 1.2%-points to 13.1%)
•    Diluted EPS (total operations) EUR 0.51 vs EUR 0.38 (EUR 0.24 vs EUR 0.17)
Exchange rates used for H1 2015 for income statement items are for DKK 7.46, NOK 8.65 and SEK 9.34
1) Key figures for continuing operations, following the divestment of the Polish banking, financing and life insurance operations.
2) Excluding restructuring cost in Q2 2014 of EUR 190m.




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