Personal Banking's transformation

23 September 2015

Tonny Thierry Andersen Executive Board member Global head of Personal Banking

Personal Banking’s transformation

2

Carnegie Bank Seminar 2015ncial results for Q1 2013

Vision

Strategic core

Customer promise

Core values

We are a modern bank for people and businesses across the Nordics with deep financial competence and leading, innovative solutions

We help customers be financially confident and achieve their ambitions by making daily banking and important financial decisions easy

Expertise, Integrity, Value creation, Agility,

Collaboration

The Essence of Danske Bank

To be recognised as the most trusted financial partner

3


On track to meet our RoE target and customer satisfaction improving

3.65.0

12.5

9.5

2012

>12.5

2014 Target 2018

H1 2015

8.5*

2013 Target 2015

RoE after tax; 2009 to 2018; % Customer satisfaction

End Q2 2015

* Before goodwill impairment charges

4


Profit improvement in all Business Units

1,110

671

3,199

2,619

3,950

927

535

2,022

2,813

2,346

+20%

+25%

+58%

+40%

+12%

Danica Pension Danske Capital Business Banking Personal Banking Corporates & Institutions

2014 H1 2015 H1

Result before tax (DKK m)

5


Impairments: Loan losses reduced significantly

Group impairments, 2007 to H115 (DKK bn/bps)

* Loan loss ratio defined as annualised impairment charges as a percentage of loans and guarantees.

9

14

H1 2015 H1 2014

-3

17

8

0

Loan loss ratio by banking unit, H1 2015 vs. H1 2014 (bps)

-89

179

Personal Banking Business Banking

Corporates & Institutions Non-core

2

20

68

135

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

20

18

16

14

12

10

8

6

4

2

0

26

24

22

20

11

13

20

10

71

14

20

09

26

20

08

57

12

H1

15

0

20

14

4

20

13

28

5

20

12

63

13

Loan loss ratio* (rhs) Impairments

6


Retail banking is in a transforming state

Low growth/interest rates

Changing customer behaviour

New entrants

New technology New regulation

Forces

impacting retail

banking

7


2005 2020 2000 2015 2010 2025

Traditional consumers Digital natives Transitionals

Within a few years a new breed of customer will dominate the ”digital natives”

8


Danske Bank’s transformation since 2012 in Personal Banking

# of branches

# of FTEs

Start 2012 End 2015

612 300

8,778 6,623

∆ in %

- 51%

- 25%

9


Customers in Danske Bank’s market areas are getting increasingly digital

Source: Danske Bank. Numbers represent total personal customers across all our markets * Customers with at least one logon during the last three months

Mobilebank

2010 2015E

0.2 2.2 # of users, m

MobilePay 0 2.5 # of users, m

eBanking penetration* 43% 76% %

Yearly logons 181 360 # of logons, m

Cash withdrawals at teller 6.0 1.4 # of, m

10

Carnegie Bank Seminar 2015ncial results for Q1 2013 MobilePay is an example of fast adoption

1,600

800

0

2,000

400

2,400

1,200

2,800

2015

2006

Active users; ’000

Onlinebank

Mobilbank

MobilePay

11


Enablers to increase share of wallet and income

Profitable growth in Sweden and

Norway

Expand ecosystem, hereunder

MobilePay and MobileLife

Roll out of Customer

Programme

12


Risk management is an environment in excess

supply

13


Positive customer development and stabilising market share in DK Nem konto development Marketshare for Danske Bank DK and RD

2015 YTD

1.436

2014

-8.197

2013

-65.265

25

26

27

28

29

30

%

July ’15 Jan ’15 Jan ’14 Jan ’13

14


Customer satisfaction on retail customers improving

#5

#2

#2

#2

#2 6

7

8

9

Aug Jul Jun May Apr Mar Feb Jan Dec

Competitors Danske Bank

Overall satisfaction; 1-10 (Denmark)

15


Why choose Danske Bank?

Superior accessibility Strong competencies

Strong digital solutions Fair prices

Documents

Personal Banking's transformation