Solid results for the first quarter of 2025 driven by good customer activity across the business and strong credit quality in an uncertain global environment. Net profit of DKK 5.8 billion.

02 May 2025 07:30 CEST

Press release Danske Bank
Bernstorffsgade 40
DK-1577 København V
Tel. + 45 45 14 14 00



2 May 2025



Page 1 of 3

Solid results for the first quarter of 2025 driven by good customer activity
across the business and strong credit quality in an uncertain global environment
Net profit of DKK 5.8 billion.

Carsten Egeriis, Chief Executive Officer, comments on the financial results:

"For Danske Bank, the first quarter of 2025 was a continuation of our
satisfactory and stable performance in 2024. We delivered solid results in line
with our expectations, driven by a steady development in core income and a
stable cost level. In addition, credit quality remained strong, and this
resulted in low loan impairments.

Our solid financial results and capital position enable us to be a strong
financial partner that offers expert advice and helps our customers and society
navigate the uncertainty. We continue to invest in technology and customer
offerings, and we are well on track to meet our targets and to deliver on our
Forward '28 strategy."

Solid financial performance

In a challenging market environment, we continued our work to deliver on our
strategic ambitions and achieved a strong return on shareholders' equity of
13.3% in the first quarter of 2025, up from 12.9% in the first quarter of 2024,
while also reducing the cost/income ratio from 45.4% to 45.2%.

Net profit increased 2% to DKK 5.76 billion as a result of an 8% increase in net
fee income, driven by solid customer demand for cash management and everyday
banking activities, a 15% increase in net trading income, which also benefited
from good customer activity, as well as lower operating expenses and low loan
impairment charges. The increases in net fee income and net trading income were
partly offset by slightly lower net interest income due to rate cuts and the
divestment of the personal customer business in Norway as well as lower net
income from insurance business, which was affected by a one-off provision.

The improvement was based on strong business customer activity as our Business
Customers and Large Corporates & Institutions units both saw solid growth in
lending volumes and an expanding customer base, underpinning core income line
increases.

Continuously good demand for our products from personal customers in Denmark
resulted, among other things, in an increase in deposits as well as in the
market share of bank lending. We have therefore seen a stable performance,
despite the divestment of the personal customer business in Norway, as deposit
growth and the rise in net fee income due to strong customer activity partially
offset the effect of interest rates coming down.

Sustainability remains a core pillar of our Forward '28 strategy, and we have
published our Climate Action Plan Progress Report 2024, which provides an update
on the Group's climate targets set in January 2023.

"Thanks to our strong capital and liquidity positions, we continue to support
our customers in these uncertain times, as evidenced by our Q1 results. We saw a
solid financial performance, driven in particular by strong business customer
activity, which resulted in stable core banking income and higher net trading
income. The increase in net profit was supported by stable costs and a low level
of impairments," says Cecile Hillary, Chief Financial Officer.

First quarter 2025 vs first quarter 2024

Total income of DKK 13.9 billion (DKK 14.0 billion in the first quarter of 2024)

Operating expenses of DKK 6.3 billion (DKK 6.3 billion in the first quarter of
2024)

Loan impairments of DKK 50 million (DKK 101 million in the first quarter of
2024)

Net profit of DKK 5.8 billion (DKK 5.6 billion in the first quarter of 2024)

Return on shareholders' equity of 13.3% (12.9% in the first quarter of 2024)

Strong capital generation further supported capital ratios: Total capital ratio
of 22.9 % and CET1 capital ratio of 18.4% (total capital ratio of 23.0% and CET1
capital ratio of 18.5% in the first quarter of 2024)

Stable economies in uncertain environment

Danske Bank's results for the first quarter of 2025 highlight the resilience of
the Nordic economies amid global uncertainty. In the first quarter of 2025, we
saw an increasingly promising outlook for growth and inflation and robust
employment across the Nordic countries. Although household credit demand
remained modest, consumer spending continued to hold up well throughout the
Nordic countries, despite the higher degree of uncertainty.

Globally, US tariffs and potential retaliatory measures have created significant
uncertainty regarding global growth prospects. While a potential risk of
recession is highlighted in the US, a more moderate impact is expected on
European growth, including in the Nordic countries.

"A trade war and tariffs are likely to dampen growth in the Nordic countries,
but the foundation is still in place for a decent economic outlook, as many
interest rates have been lowered, real incomes are increasing and export markets
other than the US continue to grow," says Las Olsen, Head of Macro Research.

Personal Customers

Despite challenges, the housing market in Denmark showed consistent growth, and
signs of recovery emerged in Finland, while Sweden's housing market continued to
face difficulties. Profit before tax for Personal Customers decreased 18%
relative to the level in the first quarter of 2024 and amounted to DKK 2.25
billion. The decrease was due mainly to higher loan impairment charges.
Additionally, both income and operating expenses were affected by the divestment
of our personal customer business in Norway. We concluded negotiations with
Blackrock to implement their Aladdin Wealth platform to enhance investment
services and improved the digital self-service tools that customers use to
manage their mortgages.

Business Customers

In the first quarter of 2025, we expanded our customer base in the mid-sized
segment across the Nordic markets and grew our business with international
subsidiaries. Profit before tax amounted to DKK 2.83 billion and increased 64%
from the level in the same period last year, primarily on the back of loan
impairment reversals and increased net fee income, although the increase was to
some degree offset by lower income from our leasing company. We continued to
support our customers' business growth as a strategic financial partner, sharing
expert insights on economic issues and launching training programmes to enhance
the skills of our leaders and advisers.

Large Corporates & Institutions

Despite increased geopolitical uncertainty, macroeconomic conditions remained
stable. We supported customers with advisory services, backed by a strong
product offering, and supported major bond issues in the Nordic region. Our fee
business maintained the positive momentum across all areas. Profit before tax
decreased to DKK 2.4 billion, or 12% relative to the level in the same period
last year, due to higher loan impairment charges, although the return on
allocated capital before impairments increased to 27.2%.

Danica

Danica experienced a decrease in net income from insurance business to DKK 201
million in the first quarter of 2025, a fall of 59% from DKK 492 million in the
same period last year. This was due primarily to a decrease in the insurance
service result, which was impacted by provisions related to legacy life
insurance products in run-off and more expensive claims in the health and
accident business, partly offset by adjustment of an accrued interest income.
The return on customer pension savings was impacted by large volatility in the
equity markets, but bonds and alternative investments saw a more stable
development.

Northern Ireland

Profit before tax increased 32% to DKK?602 million, reflecting strong growth in
net interest income and net impairment recoveries. Profit before impairments was
15% higher than for the same period in 2024.

Outlook for 2025

We maintain our guidance and expect net profit to be in the range of DKK 21-23
billion. The outlook is subject to uncertainty and depends on economic
conditions.

Danske Bank

Contact: Helga Heyn, Head of Media Relations, tel. +45 45 14 14 00

More information:
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645127_Danske Bank Interim report - first quarter 2025.pdf
645127_Danske Bank press release 2 May 2025.pdf