Due to challenging financial market conditions, Danske Bank A/S is revising down its 2022 net profit outlook despite positive developments in core banking activities. Now expects a net profit of DKK 10-12 billion

Danske Bank A/S

Company Announcement #10 2022

Danske Bank A/S
Holmens Channel 2 – 12
DK – 1092 Copenhagen K
Such. +45 45 14 00 00

July 10, 2022

Due to difficult financial market conditions, Danske Bank A/S revise 2022 net profit outlook down despite positive development in core banking activities.
wait now a net profit of DKK 10-12 billion

The outlook for 2022 is revised down to a net profit of around DKK 10-12 billion. When publishing our 2021 financial results on February 3 this year, we had initially forecast a net profit for the full year 2022 in the range of DKK 13-15 billion subject to normalized market conditions. financial.

We saw well commercial progress in our core banking activities in the first semester driven by volume growthsolid customer activity and continued strong credit quality. Our core revenue lines have clearly benefited from this evolution at the same time as we ContinueD to see good traction for our underlying cost development. Hwhatever, due to unfavorable financial market conditionsand in particular of a negative impact of the rapid rise in interest rates, we revise our net profit forecast for the year based on significantly lower expectations for trading revenue and income from our insurance business. The Nordic bond markets HaI been characterized by extraordinarily high volatility and a decline liquiditycreating a difficult operating environment to provide market making services. Despite this revisionI stay confident this based on our strong franchise and diversified business modelwe will be continue to serve customers effectivelyas we continue to implement our bank improvement program,says CEO Carsten Egeriis.

As for the second quarter of 2022, the net profit will be around DKK 1.7 billion. Basic banking income will be around DKK 9 billion, while total income will be around DKK 8.7 billion. Net trading income and net income from insurance activities will result in a combined loss of DKK 0.5 billion, which includes proceeds from the sale of Danica Norway. The expenditure will amount to around 6.4 billion Danish kroner, reflecting the still high repair costs and the costs related to the Estonia case. Credit quality remains strong and impairment charges for the second quarter of 2022 will be around DKK 0.2 billion.

We expect annual core banking income to be above 2021 levels as higher net interest income driven by good economic activity will more than offset lower capital markets and investment-related fees. Net income from insurance and trading activities in the second half of 2022 will be below normalized levels and will remain subject to financial market conditions.

Based on the high and sustained costs of resolving our old cases, our full year cost forecast is revised slightly to around DKK 25.5 billion, while impairments are still expected to be below the level standardized.

The final figures will be provided in Danske Bank’s interim report for the first half of 2022, which is due for publication on Friday July 22, 2022, where we can comment in more detail.

Danske Bank

Contacts: Stefan Singh Kailay, Media Relations Manager, tel. +45 25 45 60 44
Claus Ingar Jensen, Head of Investor Relations, tel. +45 25 42 43 70

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