Danske Bank (DANSKE) investor relations material

Executive summary

• 2025 delivered record profit before impairment charges, with net profit at DKK 23 billion and a return on equity of 13.3%, reflecting strong customer activity, volume growth, and commercial momentum despite challenging geopolitics and the sale of the Norwegian personal customer business.

• Core income improved, driven by higher net interest income (NII) from increased lending and deposits, and record-high fee income, especially in asset management.

• Strategy execution focused on scaling digital and GenAI capabilities, resulting in improved productivity and commercial momentum.

• Growth in lending volumes, expanded corporate customer base, and higher assets under management (AuM) supported performance.

• Beneficial macro environment in the Nordics and disciplined cost management underpinned results.

Financial highlights

• Net profit for 2025 was DKK 23 billion, slightly down from DKK 23.6 billion in 2024 due to normalized but low loan impairment charges.

• Total income grew to DKK 56.8 billion, with record fee income and resilient NII.

• Q4 net profit reached DKK 6.3 billion, up 14% from the previous quarter, supported by higher core income and fee income.

• Fee income rose 3% year-over-year to over DKK 15 billion, with Q4 up 39% sequentially, driven by asset management performance fees.

• Operating expenses were in line with guidance at DKK 25.85 billion, with a cost-to-income ratio of 45.5%.

Outlook and guidance

• 2026 net profit is expected between DKK 22 billion and DKK 24 billion, with total income around DKK 58 billion and ROE above 13%.

• NII is projected to grow in 2026, supported by stable rates and lending growth.

• Operating expenses are guided at DKK 26–26.5 billion, with a cost-to-income ratio target of 45%.

• Loan impairment charges for 2026 expected at DKK 1 billion, below normalized loss ratio.