- The results for the first nine months of 2008 were severely adversely affected by the extreme turbulence in the capital markets and the general economic slowdown, as is the outlook for the remainder of the year.
- The Danske Bank Group decided to participate in the Danish state guarantee scheme that covers deposits with and claims against Danish banks.
- Net profit was DKr6,921m, down 39% compared with the level for the first nine months of 2007.
- The turbulence in the financial markets affected the profit for the period, particularly of the Group’s market-related units – Danske Markets, Danske Capital and Danica Pension. Together they recorded a decline in pre-tax profit of DKr5.1bn.
- The results generated by the Group’s main source of income – Banking Activities – were robust, but slightly lower than expected. The results were satisfactory.
- Lending margins increased, particularly in Denmark.
- Expenses grew 1%, which was better than expected.
- The Group expects profit before loan impairment charges for the full year, excluding net trading income and net income from insurance business, to be 0-5% higher than the figure posted for 2007. At the presentation of the interim report for the first half of 2008, the estimate was 10-20%. The change is attributable primarily to the expenses related to the Group’s participation in the state guarantee scheme and declining fee income.
- Loan impairment charges amounted to DKr2,889m, against DKr260m in the first nine months of 2007, and the level for the full year is now expected to be high.
- The core (tier 1) capital and solvency ratios stood at 10.0% and 13.9%, respectively, at the end of the third quarter of 2008, reflecting the Group’s strong capital base.
- The Group was able to maintain its liquidity targets also in the third quarter of 2008.
- The Group has not applied the new asset reclassification option under IAS 39.
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