Danske Capital

• Profit before credit loss expenses down 8%
• Total income up 3%
• Positive trend in business activities likely to slow down due to the financial turbulence

Danske Capital’s income rose 3% to DKr470m. Non-Danish units accounted for 64% of total income.

Excluding amortisation of intangible assets, operating expenses grew 15%. This increase was due mainly to the expansion of activities outside Denmark, with 6 percentage points reflecting the full-quarter consolidation of Sampo Bank.

Danske Capital’s net sales were adversely affected by the considerable turbulence in the international capital markets, which reduced both the value of assets under management and customers’ risk appetite. Net sales totalled DKr0.4bn and included sales to institutional clients of DKr4.8bn and negative sales of DKr4.7bn to retail customers of Danske Capital’s Asset Management unit. In addition, net sales of external unit trust funds and structured products totalled DKr0.3bn.

Danske Capital’s market share of unit trust business in the Nordic region was 11% at the end of March 2008. Danske Capital was strongest in Denmark (market share of 33%) and in Finland (market share of 19%).

The considerable turbulence in the securities markets had an adverse effect on investment results. The unit trust business saw above-benchmark returns in 43% of the funds marketed in Denmark and internationally. Nordic and European shares delivered good returns. Returns on bond-based products were generally slightly below benchmark.

On March 13, 2008, Danske Bank entered into a conditional agreement to purchase the shares of Danske Invest Administration A/S at a price of DKr73.9m, which equals shareholders’ equity in the company at the end of 2007 plus DKr10m for know-how. To this should be added transaction costs. The transaction is subject to approval by the general meetings of the unit trusts covered by the agreement and by the relevant authorities. The Group expects the transaction to be completed in the second quarter of 2008.