Danske Bank (DANSKE) investor relations material

Executive summary

• Strong financial performance in Q2 and H1 2026, with net profit of DKK 6.2bn for Q2 and DKK 11.9bn for H1, reflecting increased customer activity, disciplined cost management, and robust credit quality.

• Core income up 7% year-over-year, driven by commercial momentum, higher core banking income, and policy rates.

• Beneficial macro environment in the Nordics supported growth across all business units, with resilient margins and corporate market share gains.

• Digital investments and AI deployment continued to support scalable growth.

• Economic outlook remains positive for the Nordics, with Denmark GDP growth expected above 3% in 2026.

Financial highlights

• Q2 2026 net profit of DKK 6.2bn, up 9% sequentially; H1 2026 net profit of DKK 11.9bn, up 6% year-over-year; ROE at 14.8% for Q2 and 13.9% for H1.

• Core income up 7% year-over-year; total income for H1 2026 at DKK 29.1bn, up 4% year-over-year.

• Net interest income up 3% to DKK 18,672 million; net fee income up 13% to DKK 7,976 million year-over-year.

• Cost/income ratio at 43.0% for Q2 2026 and 44.4% for H1 2026, below the 2026 target of ~45%.

• Corporate lending grew 6% year-over-year; asset management net inflow of DKK 14bn in Q2.

Outlook and guidance

• Net profit outlook for 2026 raised to DKK 23–25bn, with ROE target around 14%.

• Total income expected to exceed DKK 59bn, driven by higher core banking income and policy rate hikes.

• Operating expenses projected at DKK 26–26.5bn, with cost/income ratio expected below 45%.

• Loan impairment charges expected around DKK 1bn, below normalized loan loss ratio.