Raport 2006

An n u a l Re p o r t 2006
2 DANSKE BANK ANNUAL REPORT 2006

Vision and mission of Danske Bank Group
Danske Bank Group focuses on conducting conventional
banking business in the northern European markets based
on state-of-the-art technology. The Group is a leading
player in the Nordic markets.
We have developed a solid and scalable platform to sup-
port our core business.
The platform consists of systems to manage IT, product
development, communications, branding, credits, risk,
HR development and finances. This platform allows all
our units across borders to base their work on the same
business model. We continually develop our business
model through best practice activities and an active
pursuit of new business opportunities. Our ambition is
to build and maintain unique brands that respect our core
values. We require that all our brands be unique in their
markets and that they create value for our customers.
We will continue to develop our brands in their markets.
Our goal is to create comprehensive and long-lasting
partnerships to the mutual benefit of Danske Bank Group
and our customers. We want to stand out from the rest
of the industry in the local markets by offering the most
attractive product propositions. Our product propositions
are based on our high ambitions for competitiveness,
advisory services, openness and value creation.
One platform exceptional brands
Vision
To be the best local financial partner
Mission
This Annual Report 2006 is a translation of the original
report in the Danish language (rsrapport 2006). In case
of discrepancies, the Danish version prevails.
The annual general meeting of Danske Bank will be held on
Tuesday, March 6, 2007, at 2.00pm at the Tivoli Concert Hall
in Copenhagen.
DANSKE BANK ANNUAL REPORT 2006 3
4 MANAGEMENT S REPORT
4 Financial highlights
5 Summary
7 Financial review
12 Outlook for 2007
14 Organisation and management
14 Management
17 Danske Bank shares
19 Corporate social responsibility
20 Management and directorships
26 Capital management
32 Business areas
33 Banking Activities
48 Mortgage Finance
50 Danske Markets
52 Danske Capital
54 Danica Pension
57 Other areas
58 STATEMENT & REPORTS
58 Statement by the management
59 Audit reports
61 ACCOUNTS DANSKE BANK GROUP
62 Accounting policies
78 Income statement
79 Balance sheet
80 Capital
83 Cash flow statement
84 Notes
137 ANNUAL ACCOUNTS OF THE PARENT
COMPANY, DANSKE BANK A/S
NET PROFIT FOR THE YEAR (DKr m) 2006 2005 2004 2003 2002
Net interest income 19,501 17,166 14,752 15,593 15,859
Net fee income 7,301 7,289 5,898 5,910 5,842
Net trading income 6,631 6,351 4,732 5,074 4,971
Other income 2,698 2,255 2,029 1,127 1,278
Net income from insurance business 1,355 1,647 1,657 1,958 268
Total income 37,486 34,708 29,068 29,662 28,218
Operating expenses 19,485 18,198 15,393 14,964 15,634
Profit before credit loss expenses 18,001 16,510 13,675 14,698 12,584
Credit loss expenses -496 -1,096 759 1,662 1,420
Profit before tax 18,497 17,606 12,916 13,036 11,164
Tax 4,952 4,921 3,690 3,750 2,922
Net profit for the year 13,545 12,685 9,226 9,286 8,242
Attributable to minority interests -12 4 28 - -
BALANCE SHEET AT DEC. 31 (DKr m)
Bank loans and advances 1,054,322 829,603 615,238 523,055 478,840
Mortgage loans 602,584 569,092 524,428 497,563 469,506
Trading portfolio assets 490,954 444,521 422,547 588,986 545,719
Investment securities 26,338 28,712 31,505 - -
Assets under insurance contracts 194,302 188,342 163,205 - -
Other assets 370,861 371,718 295,584 216,530 257,488
Total assets 2,739,361 2,431,988 2,052,507 1,826,134 1,751,553
Due to credit institutions and central banks 564,549 476,363 353,369 299,880 319,573
Deposits 702,943 631,184 487,863 483,884 427,940
Issued mortgage bonds 484,217 438,675 432,399 603,120 567,912
Trading portfolio liabilities 236,524 212,042 215,807 142,992 162,453
Liabilities under insurance contracts 215,793 212,328 191,467 - -
Other liabilities 391,212 343,470 271,214 202,258 182,146
Subordinated debt 48,951 43,837 33,698 33,549 31,210
Shareholders' equity 95,172 74,089 66,690 60,451 60,319
Total liabilities and equity 2,739,361 2,431,988 2,052,507 1,826,134 1,751,553
RATIOS AND KEY FIGURES
Net profit for the year per share, DKr 21.5 20.2 14.4 13.3 11.5
Diluted net profit for the year per share, DKr 21.4 20.2 14.4 - -
Net profit for the year as % of average
shareholders' equity 17.5 18.4 13.9 15.2 14.0
Cost/income ratio, % 52.0 52.4 52.7 50.4 55.4
Solvency ratio, incl. net profit for the year, % 11.4 10.3 10.2 11.0 10.5
Core (tier 1) capital ratio, incl. net profit for
the year and hybrid core capital, % 8.6 7.3 7.7 7.7 7.6
Risk-weighted items, end of year, DKr bn 1,119 944 808 767 774
Share price, end of year, DKr 250.0 221.2 167.5 138.8 117.4
Book value per share, DKr 139.1 118.2 106.7 89.9 84.8
Full-time-equivalent staff, end of year 19,253 19,162 16,235 16,935 17,817
For 2004-2006, items are valued in accordance with the IFRS. For 2002-2003, items are valued in accordance with the
rules in force at that time.
Danske Bank Group f inancial highlights
The year 2006 was another good year for Danske
Bank Group.
Net profit rose 7% to DKr13,545m. In 2005, net
profit stood at DKr12,685m.
The year 2006
The Group saw considerable growth in its prin-
cipal markets during the year, and strong demand
for its products led to an increase in income of
8%.
As expected, the integration of Northern Bank
and National Irish Bank affected expenses.
Excluding integration costs, the trend in expenses
reflected the general rise in prices.
The favourable economic conditions supported
the growth of lending to and deposits from retail
and corporate customers throughout the year. In
addition, the good quality of the loan portfolio
resulted in a net positive entry for credit loss
expenses again in 2006.
Overall, equity markets exhibited an upward
trend during the year.
Acquisition of Sampo Bank
In November 2006, the Danske Bank Group en-
tered into an agreement to buy all the shares of
the Finnish Sampo Bank. The purchase price
was 4.05bn. The transaction, which was the
largest acquisition ever made by the Group, was
equivalent to 19% of Danske Banks total market
capitalisation.
The purchase was approved at the end of January
2007, which means that Sampo Bank was not
consolidated in the 2006 accounts of Danske Bank.
The Groups investment in Finland is in line
with its strategy of expanding its retail banking
activities in northern Europe, and the Group
expects to complete the integration of Sampo
Banks Finnish activities on its IT platform at
Easter 2008.
With the purchase, the Group establishes a strong
basis for future growth through which it expects
to create value for its shareholders. Danske Bank
expects the purchase of Sampo Bank to have a
positive effect on its earnings per share from the
second half of 2008.
To fund the acquisition, the Danske Bank Group
issued 60,500,000 shares in November 2006, gen-
erating net proceeds of DKr14.5bn. The issue
equalled 9.48% of the registered share capital.
New capital targets
Security has been provided for a considerable
part of the Groups loan portfolio, and therefore
the overall risk exposure is relatively low. The
acquisition of Sampo Bank will contribute to
greater diversification of the Groups earnings
base. As a consequence of the purchase and as a
result of the new capital requirements, Danske
Bank changed its capital targets. The targets are
now a core (tier 1) capital ratio, excluding hybrid
core capital, of 5.5-6.0% and a hybrid core capital
ratio of 1.0-1.5%.
Shareholders
The total return on Danske Bank shares in 2006
was 18%. It consisted of an increase in price of
13% and a dividend for the financial year 2005
of 5%.
Summary
Summary
The Board of Directors is proposing that the general
meeting approve a dividend of DKr7.75 per share,
or 40% of the net profit of the Group, correspond-
ing to a total dividend payment of DKr5,416m.
Capital management
On January 1, 2007, the new Capital Require-
ments Directive took effect, allowing financial
institutions to choose between various methods
to fulfil the capital adequacy requirements.
In 2006, the Group applied to the Danish FSA
for approval to use the advanced internal ratings-
based method to calculate the capital require-
ment for its credit risks.
The Group expects to incorporate the new methods
from 2008, with full effect of the directive in 2010.
Corporate social responsibility
In 2006, the Board of Directors of Danske Bank
adopted a corporate social responsibility policy
for the Group. As a result, a new Web site
(www.danskebank.com/csr) was introduced at
the presentation of the report for the first half of
2006, and together with the Annual Report 2006,
the Group is publishing its Corporate Social
Responsibility 2006 report. Additional informa-
tion is available on the Web site.
Merger of BG Bank and Danske Bank
Danske Bank Group has decided to gather the
activities of BG Bank and Danske Bank Denmark
in a single banking division with the name
Danske Bank. The two brands have become so
similar that there are no longer good grounds for
maintaining two separate banking operations.
The change will take effect on April 10, 2007,
when all building facades and printed matter
from the Bank will bear the Danske Bank name.
The merger of the two divisions is expected to
entail a one-off expenditure of DKr275m. The
Group expects to be able to save DKr300m each
year through the merger, with full accounting
effect in 2010. In 2007, the merger is expected to
be cost-neutral.
Outlook
At the outset of 2007, the Danske Bank Group
had further strengthened its market position
through the acquisition of Sampo Bank and
its continued focusing and streamlining of the
Group organisation. As the macroeconomic con-
ditions in the principal markets of the Group
are expected to remain favourable and ensure a
sound basis for further expansion of the business
volume, the Group believes that 2007 will be
another satisfactory year.
Trading income and income from insurance
business will, however, continue to depend
greatly on trends in the financial markets,
including the level of securities prices at the
end of the year.
Profit before credit loss expenses is expected to
roughly match the level recorded in 2006 despite
integration expenses and amortisation of intan-
gible assets associated with Sampo Bank.
Assuming favourable economic trends and satis-
factory loan portfolio quality, the Group expects
to record relatively modest credit loss expenses
in 2007.
Profit before tax, including the result from
Sampo Bank, is expected to be somewhat lower
than the level in 2006.
In 2006, Danske Bank Group realised a net profit
of DKr13,545m, against DKr12,685m in 2005.
Pre-tax profit amounted to DKr18,497m, which
was better than expected at the presentation of
the report for the first nine months of 2006. The
result constituted an increase of 5% relative to
the pre-tax profit recorded in 2005. The growth
in profit generated by the Groups banking activi-
ties outperformed the growth rate realised by the
segment in 2005.
Income
The positive trend in income continued in 2006.
Income rose by DKr2,778m, or 8%, on the level
recorded a year ago to DKr37,486m. Income from
banking activities grew by DKr3,068m, of which
Northern Bank and National Irish Bank accounted
for DKr848m. The accounts for 2006 include the
financial results of the Groups activities in
Northern Ireland and the Republic of Ireland for
the full year as opposed to the accounts for 2005,
which covered only the period from March to
December for these markets.
Net interest income rose 14% to DKr19,501m.
Excluding net interest income from Northern
Bank and National Irish Bank, the increase
amounted to 11%. The positive trend in net
interest income was due to continued lending
growth, which more than compensated for the
narrowing of lending margins. Home financing
products secured on real property and lending
to corporate customers accounted for the largest
shares of growth. Higher interest rates contributed
to a widening of deposit interest margins.
Net fee income remained stable at the level re-
corded in 2005. The increase in fee income of
7% generated by the Groups banking activities
could not compensate for the decline in income
from mortgage lending owing primarily to the
fact that the record-high refinancing activity in
2005 returned to a more normal level in 2006.
Net trading income rose by 4% to DKr6,631m.
Net trading income in 2005 also included one-off
income of around DKr0.8bn. Excluding the one-
off income, net trading income rose 19%. The
increase was attributable to customer-driven
activities and an improved investment return.
The increase in other income of 20% to DKr2,698m
was owing primarily to leasing and real-estate
agency business.
Net income from insurance business fell from
DKr1,647m in 2005 to DKr1,355m. The increase in
business volume could not compensate for profit
policy adjustments and the booking of risk allowance
from previous years in the fourth quarter of 2005.
The health and accident business showed improve-
ment, but the result remained unsatisfactory.
Operating expenses
Operating expenses rose by 7% to DKr19,485m.
Excluding the expenses of acquired units, the
increase amounted to 1.6% due to a generally
higher level of activity. The cost/income ratio
improved from 52.4% to 52.0%.
Credit loss expenses
As in 2005, the Group recorded a net positive
entry for credit loss expenses. The positive result,
which amounted to DKr496m, against DKr1,096m
in 2005, reflected the persistently favourable
economic conditions that led to a low level of
new impairment charges and reversals of charges
previously made.
Financial review
Financial review
Tax
The Groups tax charge for 2006 is calculated to
be DKr4,952m, corresponding to an effective tax
rate of 27%.
Return on equity
The return on equity stood at 17.5%, against
18.4% in 2005. Net profit for the year per share
increased from DKr20.2 to DKr21.5, or 6%.
Capital and solvency
Share capital
At the end of 2006, the share capital totalled
DKr6,988,042,760, and shares numbered
698,804,276. This number includes the issue of
60,500,000 shares in November 2006 to fund the
acquisition of Sampo Bank. The number of
shares outstanding at the end of 2006 was
684,286,799, and the average number of shares
outstanding in 2006 was 631,445,484.
Shareholders' equity
Shareholders equity was DKr95bn at the end
of 2006, against DKr74bn at the end of 2005.
The change reflects primarily the share issue,
the recognition of the profit for the year and the
dividend payment in March 2006.
The Board of Directors is proposing that the gener-
al meeting approve a dividend of DKr7.75 per share,
or 40% of the net profit of the Group, correspond-
ing to a total dividend payment of DKr5,416m.
Solvency
The solvency ratio at the end of 2006 was 11.4%,
of which 8.6 percentage points derived from the
Groups core (tier 1) capital, against 10.3% and
7.3%, respectively, at the end of 2005.
The core (tier 1) capital ratio, excluding hybrid
core capital, amounted to 7.6%, against 6.6% in
2005. Both the solvency ratio and the core (tier
1) capital ratio benefited from the proceeds from
the share issue.
Excluding the proceeds, the solvency ratio and
the core (tier 1) capital ratio stood at 10.1% and
6.3%, respectively, at the end of 2006.
The increase in risk-weighted items from
DKr944bn at the end of 2005 to DKr1,119bn at
the end of 2006 was attributable primarily to
lending growth and the equity forward contract
worth around DKr30bn that will run until the
acquisition of Sampo Bank has been finalised.
Capital targets
Danske Bank Group changed its capital targets in
connection with the acquisition of Sampo Bank.
The adjustments should be seen in light of the
large share of the Groups loan portfolio for
which security has been provided, the coming
implementation of the new Capital Requirements
Directive (CRD) and the Groups greater geo-
graphical diversification resulting from the
acquisition of Sampo Bank.
The capital targets were changed to a core (tier 1)
capital ratio, excluding hybrid core capital, of
5.5-6.0%; a hybrid core capital ratio of 1.0-1.5%;
and a solvency ratio of 9.0-10.0%. The payout
ratio target is maintained at 30-50%, and the
Group expects to maintain the payout ratio for
the 2007 financial year at 40% of the net profit.
CAPITAL TARGETS (%) NEW PREVIOUS
Core (tier 1) capital ratio,
excluding hybrid core capital 5.5-6.0 6.0-6.5
Hybrid core capital ratio 1.0-1.5 0.5-1.0
Solvency ratio 9.0-10.0 9.0-10.0
Payout ratio 30-50 30-50
Balance sheet
Lending
Bank lending, excluding reverse transactions,
rose by DKr140bn, or 23%, from the end of 2005
to DKr760bn at the end of 2006.
Loans and advances, excluding reverse transac-
tions, extended by the Group's banking opera-
tions in Denmark rose by DKr52bn, or 20%.
Loans and advances extended by the Groups
non-Danish banking operations grew by DKr85bn,
or 26%. Northern Bank and National Irish Bank
accounted for DKr35bn of the increase; DKr13bn
of this amount was owing to the fact that loans
and advances are no longer netted against
deposits held by the same customers.
Lending by Danske Markets rose DKr6bn, or
18%, from the end of 2005. Lending at Danske
Markets comprises facilities with selected corpo-
rate and institutional clients.
Mortgage loans measured at fair value stood at
DKr603bn at the end of 2006, up 6% on the level
recorded a year before. The private market ac-
counted for 62% of the mortgage loan portfolio
at the end of the year, and the nominal outstand-
ing bond debt rose by DKr46bn to DKr609bn.
Bank loans and advances to retail customers rose
by 16%, whereas loans and advances to corporate
customers grew by 26% on the figure recorded a
year earlier.
Reverse transactions were up DKr85bn from the
level at the end of 2005 to DKr295bn, primarily
as a result of increased activity in the interna-
tional repo market.
Deposits
Deposits, excluding repo transactions, totalled
DKr599bn, against DKr533bn at the end of 2005,
a rise of 12%. Deposits, excluding repo transac-
tions, at the Group's banking operations in Den-
mark rose by DKr24bn, or 8%, from the end of
2005. Deposits at the Groups non-Danish bank-
ing operations grew by DKr42bn, or 28%.
Deposits at Northern Bank accounted for
DKr20bn of the increase; DKr13bn of this amount
was owing to the fact that loans and advances
are no longer netted against deposits held by the
same customers.
Trading portfolio assets
Trading portfolio assets rose by DKr46bn, or 10%,
from DKr445bn at the end of 2005 to DKr491bn.
The increase was owing to larger bond holdings.
The Group uses the Value-at-Risk (VaR) measure
to determine the daily market risk of its expo-
sures. VaR expresses, at a confidence level of
99%, the maximum amount that the Group
would lose assuming that the exposure was
maintained for 10 days. Excluding Danica Pen-
sion, the Groups interest VaR amounted to
DKr84m at the end of 2006, against DKr132m a
year earlier.
Integration of Northern Bank
and National Irish Bank
At the end of 2006, the Group had realised half
of the estimated synergies of DKr350m. The
Group expects to realise all estimated synergies
by the end of 2007, with full accounting effect
from 2008.
Overall integration costs are expected to total
some DKr1.5bn. At the end of 2006, costs
realised totalled DKr1.4bn, of which DKr0.2bn
Financial review
had been recognised as development costs under
intangible fixed assets. Costs for the completion
of the integration process are expected to be
realised by the end of 2007.
Sampo Bank
In November 2006, Danske Bank entered into an
agreement to buy all the shares of Sampo Bank
of Finland. The purchase price was 4.05bn.
The purchase was approved at the end of January
2007, which means that Sampo Bank was not
consolidated in the 2006 accounts of Danske Bank.
With the purchase of Sampo Bank, the Danske
Bank Group strengthens its position as a compet-
itive player on the entire Nordic market. The
investment in Finland is in line with the Groups
strategy of expanding its retail banking activities
in northern Europe.
Danske Bank expects to complete the integration
of Sampo Banks Finnish activities on its IT plat-
form at Easter 2008. It has not yet been decided
when to integrate the still relatively small opera-
tions in Estonia, Latvia, Lithuania and Russia.
Sampo Bank will be adjusted to Danske Banks
organisational structure, and its administrative
functions will be integrated on the Group's inter-
national platform. Sampo Bank will continue to
operate under its own brand name.
Profile
Sampo Bank is Finland's third-largest bank. It
has subsidiaries in Estonia, Latvia and Lithuania
and recently acquired a small bank in Russia.
Sampo Bank has 125 branches in Finland and
about 3,500 employees. Its subsidiaries in
Estonia, Latvia and Lithuania have a total of
33 branches and some 1,100 employees.
Sampo Banks business focus is on retail custom-
ers, small and medium-sized business customers
and institutional clients.
With 1.1 million retail customers and 100,000
corporate customers, Sampo Bank holds 15% of
the retail market and 20% of the corporate mar-
ket in Finland. Most of the banks business with
retail customers is within home financing.
Sampo Bank is technologically advanced and has
800,000 online banking customers.
Most of the banks business originates in Finland,
but the subsidiaries in Estonia, Latvia and
Lithuania have seen considerable growth and
rising market shares within home financing in
particular. Sampo Bank is the third-largest for-
eign bank in the Baltic region.
In 2006, Sampo Bank took over Industry and
Finance Bank in St. Petersburg with a view to
expanding its potential for serving large Finnish
corporate customers doing business in Russia.
The future
With the purchase, Danske Bank expects to create
a very strong basis for future growth.
Furthermore, the acquisition will support Danske
Banks business platform and help create value
for the Banks shareholders. Danske Bank expects
the purchase of Sampo Bank to have a positive
effect on its earnings per share from the second
half of 2008.
The integration of Sampo Bank on Danske Banks
IT platform and the organisation of the adminis-
trative functions are estimated to generate annual
cost and funding synergies of DKr0.6bn (DKr0.1bn
in 2007, DKr0.3bn in 2008 and DKr0.2bn in
2009), with full accounting effect from 2010.
Until 2009, Danske Bank expects to incur expenses
for the integration of Sampo Banks activities of
DKr1.6bn, which break down into DKr0.5bn in
2007, DKr0.8bn in 2008 and DKr0.3bn in 2009.
Purchase price
The purchase price for Sampo Bank was 4.05bn,
or DKr30.2bn. Expenses amount to DKr0.6bn:
DKr0.5bn for share transfer tax and DKr0.1bn for
consultants fees and similar expenses.
The fair value of the net assets of Sampo Bank is
currently estimated at DKr9.3bn. The remainder
of the purchase price includes DKr4.4bn for rela-
tions with deposit customers and DKr0.3bn for
relations with other customers. The amortisation
periods are expected to be fixed at 10 years and
5 years, respectively. The right to the business
name is considered to have an indefinite economic
life and is currently valued at DKr0.3bn. Conse-
quently, goodwill is estimated at DKr17.8bn.
Pro forma financial highlights for 2006
The table below shows selected financial high-
lights on the assumption that Sampo Bank had
been acquired with effect from January 1, 2006.
The figures for Sampo Bank are based on the
average of the estimates for Sampo Banks finan-
cial results for 2006 provided by four equity
analysts. The presentation does not factor in
amortisation of intangible assets, integration
expenses and finance costs.
The Group will publish financial highlights for
2006 for the pro forma consolidated Group once
the purchase is completed and Sampo Bank has
presented its accounts for 2006 and the opening
balance sheet.
Financial review
PRELIMINARY BREAKDOWN OF PURCHASE PRICE (DKr bn)
Purchase price 30.2
Costs 0.6
Total purchase price 30.8
Net assets (excluding the items below) 9.3
Customer relations (deposits) 4.4
Other customer relations 0.3
Right to name 0.3
Deferred tax -1.3
Goodwill 17.8
PRO FORMA 2006 DANSKE BANK SAMPO BANK TOTAL DANSKE BANK GROUP
PRE-TAX PROFIT FOR THE YEAR (DKr m) GROUP CONSENSUS AFTER ACQUISITION (PRO FORMA)
Net interest income 19,501 2,789 22,290
Net fee income 7,301 1,913 9,214
Net trading income 6,631 869 7,500
Other income 2,698 403 3,101
Net income from insurance business 1,355 - 1,355
Total income 37,486 5,974 43,460
Operating expenses 19,485 3,274 22,759
Profit before credit loss expenses 18,001 2,700 20,701
Credit loss expenses -496 -4 -500
Profit before tax 18,497 2,704 21,201
The Groups outlook for 2007 is based on the pro
forma financial highlights for 2006 shown on
page 11.
The year 2007 is expected to be another satisfac-
tory year for Danske Bank Group.
At the outset of 2007, the Danske Bank Group had
further strengthened its market position through
the acquisition of the Sampo Bank group and its
continued focusing and streamlining of the
Group organisation.
In 2007, Europe is likely to see a rise in average
interest rates and moderate economic growth.
The Group expects growth in its principal mar-
kets to continue to outperform average euro-zone
growth, although at a lower level than in 2006.
Net interest income is expected to rise by 8-10%,
primarily as a result of double-digit lending
growth in the markets on which the Group oper-
ates and the likely rise in average interest rates.
Net fee income is expected to be slightly higher
than in 2006, due mainly to an increase in trad-
ing volume on the securities markets and despite
expenses for the credit default swaps entered
into in connection with the financing of the
acquisition of Sampo Bank. Mortgage finance
activities are expected to remain unchanged.
Net trading income is expected to be 7-9% lower
than the high level recorded in 2006. The Group
expects to maintain its market position, but trad-
ing income will continue to depend greatly on
trends in the financial markets, including the
level of securities prices at the end of the year.
Other income is likely to fall by 12-17% as the
Group does not expect to realise income from the
sale of property on the scale recorded in 2006.
The Group does not expect to achieve an invest-
ment return from its insurance business similar
to the high return generated in 2006. Overall,
net income from insurance business is expected
to fall by 13-15%. This result will, however,
also depend greatly on trends in the financial
markets.
The Group expects operating expenses to rise by
4-6%. The increase is attributable primarily to
integration costs, the amortisation of intangible
assets associated with the acquisition of Sampo
Bank, and the general increase in salaries and
inflation. Excluding integration costs and amorti-
sation of intangible assets associated with Sampo
Bank, operating expenses are expected to
increase by 1-3%.
Profit before credit loss expenses is expected to
roughly match the level recorded in 2006.
Outlook for 2007
The Group does not expect to realise a net posi-
tive entry for credit loss expenses as was the case
in 2006. However, the Group assumes favourable
economic trends and satisfactory loan portfolio
quality and therefore expects to record relatively
modest credit loss expenses in 2007.
Profit before tax for 2007 is therefore expected to
be somewhat lower than the level in 2006.
The Group expects its tax rate to be 27%.
Outlook for 2007
DANSKE BANK, INCL. SAMPO BANK OUTLOOK 2007
2006 (PRO FORMA) (DKr m) (%)
Net interest income 22,290 8 - 10
Net fee income 9,214 0 - 2
Net trading income 7,500 (7) - (9)
Other income 3,101 (12) - (17)
Net income from insurance business 1,355 (13) - (15)
Total income 43,460 0 - 2
Total operating expenses 22,759 4 - 6
Profit before credit loss expenses 20,701 (2) - 0
( ) denotes a fall.
As part of its efforts to achieve its vision and mis-
sion, the Group continued to implement the Danske
Banking Concept in its six retail banking divisions.
The concept focuses on increased standardisation
of the Groups business model across branded
divisions to further streamline the activities of
the individual retail banks and to gain more time
to serve customers. Consequently, in the autumn
of 2006, group management adjusted the role of
support functions. Development projects that con-
cern all units of the Group are now managed by
head office support functions, whereas activities
that target only a single brand are handled by the
support functions of the division in question.
The Danske Banking Concept will help the Group
achieve its mission to be the best local financial
partner. The Danske Banking Concept both sup-
ports the use of the Groups shared platform (sys-
tems to manage IT, product development, com-
munications, HR, finances and risk) and ensures
the necessary adaptation to local conditions.
The Group vision of creating one platform
exceptional brands was clearly reflected in the
successful migration of the systems of National
Irish Bank and Northern Bank to the Groups
shared IT platform during Easter 2006.
Management
In addition to ensuring compliance with statuto-
ry requirements, the management structure of the
Danske Bank Group aims at achieving maximum
security in operations.
Key elements of the management structure are
fixed authorisations, requirements for ongoing
reporting and considerable transparency in the
Groups activities. Group standards for risk man-
agement, financial planning and control, credit
approval, HR development, compliance and the
shared IT platform ensure a well-structured man-
agement of all activities.
The managements ambition is to continually
adjust its structure to make sure that the Group
can maintain the highest possible management
standards and transparency for shareholders.
In August 2006, Danske Bank published its
Corporate Governance Fact Sheet and re-
structured its corporate governance Web site
(www.danskebank.com/cg) to further enhance
transparency.
Management structure
The management structure of the Group reflects
the statutory requirements governing listed Dan-
ish companies in general and financial services
institutions in particular. The general meeting
elects the Board of Directors and the external
auditors. The Board of Directors appoints the
Executive Board, the Secretary to the Board of
Directors, the Group Chief Auditor and the
Deputy Group Chief Auditor and determines
their remuneration.
According to the Danish Financial Business Act,
members of the Executive Board may not sit on
the Board of Directors.
The corporate governance principles of the
Danske Bank Group comply with the recommen-
dations issued by the Copenhagen Stock Exchange
except for the recommendations on the term of
office of board members and their number of
other directorships. The Group prefers a two-
year period of service to achieve a certain con-
Organisation and management
tinuity in the composition of the Board of Direc-
tors. Furthermore, the Group believes that sim-
ply counting the directorships of each board
member is not a useful method as the workload
varies from one company to another.
General meeting
According to the Articles of association, the
shareholders of Danske Bank are entitled to
attend as well as to table proposals, speak and
vote at the general meeting, provided that they
observe a few simple formalities.
Danske Bank plans to webcast the Chairmans
report at the annual general meeting also in 2007.
The Group has only one class of shares and no
limitations on holdings, voting rights or other
opportunities for the shareholders to influence
decisions. The Articles of association and statu-
tory provisions set the framework for the man-
agement of the Group and the general meeting.
Only the general meeting may amend the Arti-
cles of association.
At an extraordinary general meeting of Danske
Bank on August 8, 2006, a number of secondary
names for the Bank were adopted as a step in the
process of converting foreign subsidiaries into
branches and as a way of protecting the names
and retaining the rights to them for future use.
Board of Directors and Executive Board
According to the Articles of association, members
of the Board of Directors are elected by the general
meeting for terms of two years. At the annual general
meeting, half of the members are up for election.
The Board of Directors considers all the members
elected by the general meeting to be independent.
In accordance with Danish legislation, the staff
elect a number of representatives to serve on the
Board of Directors for a four-year period. The
current staff representatives were elected in the
spring of 2006, and consequently their term of
office will expire in 2010.
According to the division of powers, the Board
of Directors outlines the overall principles gov-
erning the affairs of Danske Bank, whereas the
Executive Board is in charge of day-to-day man-
agement and reports to the Board of Directors.
The Rules of procedure for the Board of Directors
and the Executive Board lay down the exact divi-
sion of duties and responsibilities. A summary
of these rules is available at
www.danskebank.com/cg.
Organisat ion and management
MANAGEMENT STRUCTURE
General Meeting
Board of Directors
15 directors
Executive Board
5 members
Executive Committee
14 members
Banking Activities Danske Markets
Mortgage Finance Other areas
Danica Pension Resource areas
Internal Audit Board of Directors Secretariat
The Board of Directors held 15 meetings during
the year, including a lengthy strategy meeting.
Recruitment and assessment of directors
The Chairman of the Board of Directors assesses
the Boards work and the work of the individual
directors. In 2006, the Chairman held performance
appraisal interviews with each of the board
members elected by the general meeting. The
Chairman held a joint performance appraisal
interview with the board members elected by
the staff. The Board of Directors subsequently
reviewed the outcome of these interviews.
Shareholders and the Board of Directors may
nominate Board candidates. In 2006, the Boards
Nomination Committee met to discuss the con-
clusions of the appraisal interviews. Moreover,
the Committee discussed the professional skills
and expertise required of Board members to
match the sphere of interest of an international
financial services provider such as the Bank.
The Board of Directors does not see an immedi-
ate need to change its composition.
Board committees
As stipulated by Danish law, the four board com-
mittees are not authorised to make independent
decisions. The committees report and submit
proposals to the Board of Directors.
In addition to the Nomination Committee, the
Board of Directors has set up three committees:
the Credit Committee, the Audit Committee and
the Salary and Bonus Committee.
Certain credit applications are submitted to the
Credit Committee for review on an ongoing
basis. In addition, the committee met on three
occasions in 2006 to discuss the new capital
adequacy rules, the Groups application procedure
under the new regime, the Groups risk manage-
ment models and its stress tests for quantification
and management of risk. Finally, the committee
met to review the facilities on a special watch
list in accordance with its charter.
The Audit Committee met three times in 2006
to review and discuss drafts of long-form audit
reports prepared by the internal and external
auditors. Furthermore, the committee discussed
last years audit plan, the co-operation between
the organisation and the internal and external
auditors and their distribution of work, as well
as the coming years audit strategy and budgets.
The two latter points were discussed at a meet-
ing which was not attended by members of the
Executive Board.
The Salary and Bonus Committee met twice to
discuss the salary and remuneration programmes
of the Group and to prepare suggestions for the
remuneration of the members of the Executive
Board. As part of its work, the committee
reviewed the Groups incentive programmes and
their correlation with value creation within the
Group. The salary and remuneration programmes
were subsequently reviewed by the Board of
Directors, which did not find any immediate
need to adjust the structure of the programmes.
Executive Board
Three new members were appointed to the Exec-
utive Board with effect from September 1, 2006:
Tonny Thierry Andersen, head of Group Finance;
Sven Lystbk, head of the Shared Services Cen-
tre; and Per Skovhus, head of Group Credits.
One of the reasons for the appointment of addi-
tional members to the Executive Board was to
establish a closer relationship between the Board
of Directors and the heads of vital functions
within the Group.
In June 2007, Jakob Brogaard, Deputy Chairman of
the Executive Board, will reach the age of 60 and
has decided to retire with effect from June 30, 2007.
The Executive Committee
Steen Blaafalk, head of Danske Markets, joined
the Executive Committee in September 2006,
while Jrgen Michael Klejnstrup resigned from
the committee to join the Executive Board of
Danica Pension. After the gathering of the
Groups wealth management activities at Danske
Capital, Managing Director Niels-Ulrik Mousten
joined the Executive Committee on January 1,
2007. Sren Kaare-Andersen resigned from the
Executive Committee on January 3, 2007. The
committee now consists of 14 members who rep-
resent the Groups large banking business areas
and support functions.
Remuneration
The remuneration of the management is determined
on the basis of the Groups remuneration policy,
which is available at www.danskebank.com/cg.
Members of the Board of Directors receive a fixed
fee only.
The Board of Directors determines the Executive
Boards remuneration, which consists of fixed
salaries, various types of incentive programmes
and pensions.
Information on remuneration of the individual
directors and the members of the Executive
Board appears in note 8 to the accounts of the
Danske Bank Group.
See www.danskebank.com/cg for information on
Danske Bank shares held by the individual mem-
bers of the Board of Directors and the Executive
Board.
Danske Bank shares
Danske Banks overall financial objective is to
provide its shareholders with a competitive
return.
Shareholder value is created through share price
appreciation and dividend payments based on a
healthy growth in profits. The Group seeks to
fulfil its ambition by continually developing its
core business, streamlining operating processes
and optimising capital and risk management.
Danske Bank shares in 2006
Share capital totalled DKr6,988,042,760 at the
end of 2006 after the issue of 60,500,000 shares
in November to fund the acquisition of Sampo
Bank. The shares were offered as a direct place-
ment to corporate and institutional investors.
The issue represented 9.48% of Danske Banks
registered share capital, and the subscription
price was DKr242.50.
DANSKE BANK SHARES 2006 2005
Share price, end of year, DKr 250.0 221.2
Total market capitalisation, end of year, DKr bn 171.1 138.6
Net profit for the year per share, DKr 21.5 20.2
Dividend per share, DKr 7.75 10.00
Book value per share, DKr 139.1 118.2
Share price/book value per share, DKr 1.8 1.9
The share price rose by 13.0% in the course of
the year to DKr250.04, and the dividend per
share was DKr10. The total return on Danske
Bank shares in 2006 was thus 18.0%.
In comparison, the MSCI European Banks Index
increased by 31.3%, and the Danish OMXC20
index rose 10.5% (both figures exclude dividends).
In the past five calendar years, Danske Bank
shares have generated an average return to share-
holders, including dividends, of 18.2% annually.
The return on Danske Bank shares must be
assessed on the basis of the risk involved. Share
price volatility can be used to measure this risk.
The price volatility of Danske Bank shares has
been stable for a number of years, whereas some
of the Banks peers have seen increases in the
volatility of their share prices. The risk of holding
Danske Bank shares has been relatively lower
than that of holding shares issued by selected
other banks.
The low risk is assumed to stem from the Groups
business strategy of operating in multiple mar-
kets in northern Europe. The recent acquisition
of Sampo Bank contributed to lowering the risk
of Danske Bank. Through diversification of activ-
ities, the Group reduces its systematic risk.
Moreover, the Group believes that the relatively
low volatility is reinforced by the high level of
transparency as regards information about the
Group, for example detailed financial and corpo-
rate governance information, and the extensive
supply of in-depth information for investors and
analysts.
In recent years, the beta value of Danske Banks
shares has been consistently lower than 1, which
means that the volatility of the Banks shares has
been lower than the market average.
At the end of 2006, the total market capitalisa-
tion of the Danske Bank Group was DKr171.1bn,
which was 23.4% higher than at the end of 2005.
Part of the increase was attributable to the share
issue in November, which accounted for 9.48%
of the registered share capital.
Dividends to shareholders
The Board of Directors is proposing that the gen-
eral meeting approve a dividend of DKr7.75 per
share for the financial year 2006, or 3.1% of the
share price at the end of 2006, corresponding to
a total dividend payment of DKr5,416m.
Danske Banks shareholders
At the end of 2006, Danske Bank had about
298,000 shareholders. According to the Danish
Companies Act, shareholders must notify a com-
pany if their shareholding exceeds 5% of the
companys share capital or exceeds higher per-
centages divisible by 5. At the publication of the
Annual Report 2006, two shareholder groups had
notified the Bank that they hold more than 5%
of its share capital:
BETA VALUE OF DANSKE BANK SHARES
0.75
0.81
0.78
1.01
2003/2004 2005/2006
Peers
Danske Bank
A.P. Mller and Chastine Mc-Kinney Mller
Foundation and companies of the A.P. Mller
- Maersk Group, Copenhagen, hold 22.27% of
the share capital.
Realdania, Copenhagen, holds 11.88% of the
share capital.
In addition, Danske Bank itself holds 2.1% of the
share capital.
The number of voting shares is identical to the
stated shareholdings.
IR information
In 2006, the Group further strengthened its
investor relations activities and won several
awards from Danish and international financial
analysts and asset managers. Moreover, the
Group launched a number of new features on its
Web site, including detailed information about
the acquisition of Sampo Bank.
During the year, Danske Bank met with more
than 300 investors in Denmark and in financial
hubs throughout Europe, the US and Canada.
General meeting
Shareholders will be notified of the annual gen-
eral meeting on March 6, 2007, through the daily
newspapers. The shareholders who attended the
2006 annual general meeting represented just
over 46% of the share capital. The Board of
Directors was granted authority to represent a
limited number of shareholders by proxy. In
accordance with the Banks practice, these proxy
powers were effective only for that particular
general meeting.
Corporate social responsibility
In 2006, the Board of Directors adopted a corpo-
rate social responsibility policy for the Group's
responsibility vis--vis customers, staff, the envi-
ronment and society. With this policy, the Group
wants to ensure a high level of integrity in all
dealings with stakeholders, to minimise any
adverse effects it may have on the environment
and to contribute to mutually beneficial financial
results for the Group and its stakeholders.
For a number of years, the Group has operated
on the basis of its core values and other guide-
lines that support good relationships with stake-
holders and its contribution to society. The new
policy further formalises the Group's corporate
social responsibility and commits the Group to
further increase the transparency of its activities
for its stakeholders. One element of this work
was the launch of a new CSR Web site.
Together with the Annual Report 2006, the
Danske Bank Group presents its first Corporate
Social Responsibility report. The latter provides
insight into activities directed at customers, staff,
the environment and society as well as the Groups
CSR plans for the years ahead.
Additional information about Danske Banks
corporate social responsibility is available at
www.danskebank.com/csr.
At Danske Banks annual general
meeting on March 14, 2006, Alf
Duch-Pedersen, General Manager;
Henning Christophersen, Partner
at KREAB Brussels; Sten Scheibye,
Chief Executive of Coloplast A/S;
Claus Vastrup, Professor of Eco-
nomics at University of Aarhus;
and Birgit Aagaard-Svendsen, Exec-
utive Vice President and CFO of
J. Lauritzen A/S, were re-elected
to the Board of Directors. The Board
of Directors re-elected Alf Duch-
Pedersen, General Manager, as
Chairman and Jrgen Nue Mller,
General Manager, and Eivind
Kolding, Partner of the firm
A.P. Mller, as Vice Chairmen.
In the first quarter of 2006, the staff
elected five board members, cor-
responding to half the number of
members elected by the general
meeting: Helle Brndum, Bank
Clerk; Charlotte Hoffmann, Personal
Customer Adviser; Verner Usbeck,
Assistant Vice President; Per Alling
Toubro, Chairman of Danske Kreds;
and Solveig rteby, Vice Chairman
of Danske Kreds, were elected or
re-elected to the Board of Directors.
Tove Abildgaard, Personal Cus-
tomer Adviser; Ren Holm, Project
Manager; Peter Michaelsen, Assis-
tant Vice President; and Pia Bo
Pedersen, Processing Officer, all
elected by the staff, resigned from
the Board of Directors.
Three new members joined the
Executive Board on September 1,
2006: Tonny Thierry Andersen,
Senior Executive Vice President;
Sven Lystbk, Senior Executive
Vice President; and Per Skovhus,
Senior Executive Vice President.
The following pages state the
occupations of the board members,
directorships held in other Danish
and foreign undertakings (with
the exception of wholly-owned
subsidiaries) and other major
offices at the publication of the
Annual Report.
Alf Duch-Pedersen
General Manager
Born on August 15, 1946.
Joined the Board on March 23, 1999.
Most recently re-elected in 2006.
Director of:
The Technical University
of Denmark
The Confederation of Danish
Industries
Group 4 Securicor plc. (Chairman)
Jrgen Nue Mller
General Manager
Born on June 30, 1944.
Joined the Board
on November 30, 2000.
Director of:
Realdania (Chairman)
Fonden for billige boliger (Chairman)
Programbestyrelsen mod
Ghettoisering (Chairman)
Nordisk Byggedag (Vice Chairman)
International Federation for Housing
and Planning
Adjunct Professor of the Department
of Organization and Industrial
Sociology at Copenhagen Business
School
Management and directorships
Eivind Kolding
Partner of the firm A.P. Mller
Born on November 16, 1959.
Director of:
Dansk Supermarked A/S
F. Salling A/S
Maersk GCS Holding A/S
(Chairman)
Maersk Australia Pty. Ltd.
(Chairman)
Maersk Singapore Pte. Ltd.
(Chairman)
A.P. Moller Singapore Pte. Ltd.
Maersk China Limited
Maersk Deutschland GmbH
Maersk Shipping Singapore Pte. Ltd.
Nedlloyd Holding B.V.
Henning Christophersen
Partner at KREAB Brussels
Born on November 8, 1939.
Director of:
Rockwool-Fonden
restad Development Corporation
(Chairman)
Frederiksbergbaneselskabet I/S
(Frederiksberg Railway Company)
(Chairman)
The European Institute of Public
Administration (Chairman)
Peter Hjland
Managing Director of Transmedica
Holding A/S
Born on July 9, 1950.
Joined the Board on November 30,
2000.
Director of:
Amrop-Hever A/S (Chairman)
Bikuben fondene (Chairman)
The Danish Centre for Leadership
(Chairman)
Danisco A/S
The Denmark-America Foundation
Frederiksbergfonden
Ituri Management ApS
Knud Wexe A/S
Nordicom A/S (Vice Chairman)
Rambll Gruppen A/S
Siemens A/S (Chairman)
Transmedica A/S (Chairman)
Transmedica Holding A/S
Wexe Holding A/S
Niels Chr. Nielsen
Professor of Economics
at Copenhagen Business School
Born on January 14, 1942.
Joined the Board on April 5, 1990.
Director of:
COWIfoundation
Grundfos A/S
Grundfos Finance A/S
Grundfos Management A/S
Otto Mnsted Aktieselskab
The Oticon Foundation, William
Demants og Hustru Ida Emilies Fond
The Poul Due Jensen Foundation
Sten Scheibye
Chief Executive of Coloplast A/S
Born on October 3, 1951.
Director of:
Novo Nordisk A/S (Chairman)
The Confederation of Danish
Industries
The Danish Academy of Technical
Sciences
(Chairman)
The Fulbright Commission in
Denmark
Adjunct Professor of Applied
Chemistry at University of Aarhus
Majken Schultz
Professor of Organization
at Copenhagen Business School
2000.
Director of:
COWI A/S
CVI Holding ApS
Realdania
Brnehjertefonden (Vice Chairman)
Dansk selskab for virksomhedsledelse
Member of the Executive Committee
of Reputation Institute
Claus Vastrup
Professor of Economics
at University of Aarhus
Born on March 24, 1942.
Appointed by the Minister of Eco-
nomic Affairs from January 1, 1995,
to December 31, 2002. Elected by
the general meeting on March 25,
2003.
Director of:
Aarhus Universitets Jubilumsfond
Birgit Aagaard-Svendsen
Executive Vice President and CFO
of J. Lauritzen A/S
Born on February 29, 1956.
Director of:
NYK Lauritzen Cool AB
Handyventure Singapore Pte.
The Council of Det Norske Veritas
Infrastrukturkommissionen
(Chairman)
Helle Brndum
Bank Clerk of Danske Bank A/S
Born on September 26, 1952.
Director of:
Danske Kreds
Charlotte Hoffmann
Personal Customer Adviser
of Danske Bank A/S
Per Alling Toubro
Chairman of Danske Kreds
Danske Bank A/S
Director of:
Danske Kreds (Chairman)
Verner Usbeck
Assistant Vice President
of Danske Bank A/S
Born on February 11, 1950.
Joined the Board on June 28, 1990.
Director of:
Danske Kreds
Danske Funktionrers Boligselskab
S.m.b.A. (Vice Chairman)
Niels Brocks Styrelse
Solveig rteby
Vice Chairman of Danske Kreds
Danske Bank A/S
Born on March 28, 1965.
2000.
Director of:
Danske Kreds (Vice Chairman)
Under section 80(8) of the Danish
Financial Business Act, financial
institutions are required to publish
information at least once a year
about directorships, etc. held with
the approval of the Board of Direc-
tors by persons employed by the
Board according to statutory regu-
lations (section 80(1) of the Act)
or articles of association.
Peter Straarup
Chairman of the Executive Board
Born on July 19, 1951.
Joined the Executive Board on
September 1, 1986.
Director of:
Forsikringsselskabet Danica,
Skadeforsikringsaktieselskab
af 1999 (Chairman)
Danica Pension, Livsforsikrings-
aktieselskab (Chairman)
Danica Liv III, Livsforsikrings-
Danica Pension I, Livsforsikrings-
DDB Invest AB (Chairman)
DDB Invest Limited (Chairman)
Northern Bank Limited (Chairman)
National Irish Bank Limited
(Chairman)
Other major offices
(non-exhaustive list):
ICC Denmark (Director)
The International Monetary
Conference
Institut International d'Etudes
Bancaires
Jakob Brogaard
Deputy Chairman of the Executive
Board
Joined the Executive Board
on January 1, 1996.
Retires from the Executive Board
on June 30, 2007.
Director of:
LR Realkredit A/S (Vice Chairman)
Realkredit Danmark A/S (Chairman)
Forsikringsselskabet Danica, Skade-
forsikringsaktieselskab af 1999
aktieselskab
aktieselskab
aktieselskab
DDB Invest AB (Vice Chairman)
Kreditforeningen Danmarks
Pensionsafviklingskasse (Chairman)
Other major offices:
Member of the Financial Business
Council
Management and directorships Executive Board
Tonny Thierry Andersen
Senior Executive Vice President
on September 1, 2006.
Director of:
Investeringsselskabet af 23. marts
2001 A/S
Danske Private Equity A/S
aktieselskab
aktieselskab
aktieselskab
Nordania Finans A/S
Realkredit Danmark A/S
Danske Bank International S.A.
DDB Invest Limited
Northern Bank Limited
Sven Lystbk
Director of:
Multidata Holding A/S (Chairman)
Multidata A/S (Chairman)
PBS Holding A/S (Chairman)
PBS A/S (Chairman)
Ejendomsselskabet Lautrupbjerg A/S
(Chairman)
VP Securities Services A/S
(Chairman)
(Vice Chairman)
aktieselskab (Vice Chairman)
(Vice Chairman)
Kreditforeningen Danmarks
Pensionsafviklingskasse
DDB Invest Limited
Northern Bank Limited
Fokus Bank ASA
Per Skovhus
Director of:
Danmarks Skibskredit A/S
(Vice Chairman)
Nordania Finans A/S (Chairman)
Fokus Bank ASA (Vice Chairman)
Other major offices:
Danish Bankers Association
(Vice Chairman)
The Executive Committee is a co-
ordinating forum. Its objective is to
take an overall view of activities
across the Group and intra-group
co-operation, in particular the co-
operation between support func-
tions on the one hand and the
individual branded divisions and
country organisations on the other.
Peter Straarup / Chairman
Jakob Brogaard / Deputy Chairman
Tonny Thierry Andersen, Head of
Group Finance
Sven Lystbk, Head of the Shared
Services Centre
Per Skovhus, Head of Group Credits
Steen Blaafalk, Head of Danske
Markets
Thomas Borgen, Head of Banking
Activities Norway
Andrew Healy, Head of Banking
Activities Ireland
Niels-Ulrik Mousten, Head of
Danske Capital
Lars Stensgaard Mrch, Head of
Group HR
Henrik Normann, Head of Banking
Activities Danske Bank
Don Price, Head of Banking
Activities Northern Ireland
Steen Reeslev, Head of Group
Communications
Mats Torstendahl, Head of Banking
Activities Sweden
Executive Committee
The Groups capital management policy aims to
ensure efficient use of capital to meet the Groups
overall capital targets. The Groups risk profile
is determined in accordance with the capital tar-
gets and requires that the Group have sufficient
capital to cover both organic growth and current
fluctuations in its exposure. The latter objective
is also reflected in the Groups ambition to main-
tain the AA ratings granted by the international
rating agencies.
Capital adequacy and the
Capital Requirements Directive
In 2007, the Danske Bank Group will still work
under the Basel I capital adequacy rules. As
already mentioned, the Group has applied to the
Danish FSA for approval to use the advanced
internal ratings-based method according to the
Capital Requirements Directive (CRD) to calcu-
late the capital requirement for its credit risk
with effect from January 1, 2008. The effect of
the new requirements will be gradually incorpo-
rated into the Groups capital management prac-
tices during 2008 and 2009 and will be fully
incorporated as of January 1, 2010.
The CRD entails new rules for the calculation
of risk-weighted assets (Pillar I) and new require-
ments (Pillar II) for financial institutions inter-
nal processes for assessing future capital require-
ments, ICAAP (Internal Capital Adequacy
Assessment Process). Finally, the CRD contains
a number of requirements for publication of the
financial institutions risk profile, processes and
methods for risk management and the like (Pillar
III). The capital requirements still depend on the
capital base, the calculation of which is almost
unchanged.
In the course of 2006, the Bank established its
future internal process for assessment of future
capital requirements (ICAAP). In December 2006,
the Board of Directors approved the Groups first
ICAAP report. The report shows the following
risk-weighted assets:
Until now, the Banks work on the internal rat-
ings-based method was based on five-to-seven-
year time horizons to determine long-term aver-
ages for estimating the risk parameters included
in the calculation of the Pillar I requirements,
whereas the risk of rarer cyclical situations was
covered by using relevant stress scenarios under
Pillar II. The risk parameters used for estimating
Pillar I requirements are based on observations
from a relatively positive business cycle.
The table above shows that, other things being
equal, the minimum capital requirement calcu-
lated according to risk-weighted assets in Pillar I
will be reduced by about 50% on full implemen-
tation of the new CRD. It is not possible to con-
clude from these figures that the Group can
reduce its capital charge by the same percentage
because ICAAP will identify an additional capi-
tal requirement: a Pillar II capital requirement.
The ICAAP report confirms that the Group can
expect a somewhat lower overall capital require-
ment after the implementation of the CRD. The
lower risk-weighted assets under Pillar I result
Capital management
RISK-WEIGHTED ASSETS
CALCULATED AT SEPT. 30, 2006 Current
(DKr bn) Pillar I rules
Risk-weighted assets 540 1,053
Minimum capital requirement (8%) 43 84
mainly from the fact that the current rules have
overestimated the capital requirement on the
Groups credit exposure, particularly on loans
secured on real property.
The Group conducts a number of stress tests
during ICAAP to ensure that its capital will also
be adequate under unfavourable economic con-
ditions. During the tests, the Group's risk port-
folio is exposed to more severe stress conditions
than the conditions experienced during the eco-
nomic downturn at the beginning of the 1990s.
The increase in the capital charge resulting from
these stress tests is part of the Pillar II capital
requirement. See below for more information
on the Group's stress tests.
In 2006, Danske Bank held detailed discussions
with the rating agencies about its approach to the
CRD. The discussions comprised a thorough
review and documentation of the Groups choice
of models, data base and parameter estimation
as well as the stress-testing process, including
stress scenarios and stress test results for earnings,
risk-weighted assets and capital level. The model
and parameter estimation were also reviewed by
an external consulting firm to ensure that the
Group complies with best practice in this area.
It is still too early to accurately calculate the cap-
ital relief that Danske Bank will enjoy as a result
of the new capital adequacy rules. The reduction
in the capital requirement will depend on the
specific implementation of the CRD and continu-
ing discussions with regulators and rating agencies.
As part of the adjustment of the Groups capital
structure, Danske Bank will enter into credit
default swaps on the basis of a portfolio of mort-
gage loans that will reduce the Groups risk-
weighted assets calculated under the current
rules by DKr110bn. The swaps will take effect in
the first quarter of 2007 and may be terminated
in 2009-2010 when the Directive is fully imple-
mented and the effect of the swaps is reduced.
Capital targets
In November 2006, the Danske Bank Group
adjusted its overall capital targets:
solvency ratio of 9.0-10.0%
(unchanged)
core (tier 1) capital ratio (excluding
hybrid core capital) of 5.5-6.0%
(previously 6.0-6.5%)
hybrid core capital of 1.0-1.5%
(previously 0.5-1.0%)
payout ratio of 30-50% (unchanged)
The adjustments were published when Danske
Bank announced its purchase of Sampo Bank.
The changes should be viewed in light of the
Capital management
CHANGE IN CORE (TIER 1) CAPITAL RATIO
2000 2001 2002 2003 2004 2005 2006
2
6
8
%
4
Core (tier 1) capital, excl. hybrid core capital
Target
Effect of share issue to fund acquisition of Sampo Bank
large share of loans and advances for which
security has been provided, the coming imple-
mentation of the new Capital Requirements
Directive and the greater geographical diversi-
fication resulting from the acquisition of Sampo
Bank.
For 2007, the Group expects to pay out 40% of
the net profit for the year, which is at the same
level as for 2006.
The Groups policy is to buy back shares with
any excess capital that is not expected to be used
for growth or dividends. Owing to its business
growth and the acquisition of Sampo Bank,
the Group does not expect to buy back shares
in 2007.
Visit Danske Banks Web site
www.danskebank.com/ircrd for more information
about the Groups capital management policy,
the CRD rules and the Banks risk management
practices.
Ratings
The Danske Bank Groups risk profile is regularly
assessed by three international rating agencies:
Standard & Poors, Moodys and Fitch Ratings.
The external ratings are important for the Groups
funding costs. In connection with the acquisition
of Sampo Bank in November 2006, the three
rating agencies affirmed their various ratings of
the Danske Bank Group.
Actual and expected losses
Actual losses fell sharply from 2002 to 2006,
from 0.26% of total loans, advances and guaran-
tees in 2002 to 0.5% in 2006, in part because of
the greater geographical diversification of the
loan portfolio and in part because of the
favourable macroeconomic conditions on the
Groups core markets.
The average annual loss Danske Bank expects to
suffer over a business cycle amounts to 14 basis
points. The Groups substantial portfolio of mort-
gage loans is a key reason for the fairly low level
of expected losses. Another reason is the greater
geographical diversification of the Group. The
strong growth of banking operations in Sweden,
Norway, Northern Ireland and the Republic of
Ireland lifted income generated by non-Danish
units from 27% of total income in 2005 to 29%
in 2006.
RATINGS Standard & Poors Moodys Fitch
Danske Bank
Short-term A-1+ P-1 F1+
Long-term AA- Aa1 AA-
Outlook Stable Stable Stable
Realkredit Danmark bonds* AAA Aaa --
Outlook Stable Stable --
Danica Pension
Long-term/Insurer financial strength AA- -- --
Outlook Stable -- --
*The ratings of Standard & Poors and Moodys apply to 95% of all bonds issued by Realkredit Danmark.
Transition to ROAC
The Group has developed its current risk-based
return target RAROC (Risk-Adjusted Return on
Economic Capital) into a new target called ROAC
(Return on Allocated Capital), which is based on
allocated capital and includes concentration and
diversification risk. Since 1999, RAROC has been
a cornerstone of the Groups capital and financial
management. Like RAROC, ROAC is a risk-adjusted
return that has expected average annual losses
over a business cycle as one of its parameters.
After a transition period for the implementation
of the CRD, which ends in 2010, Danske Banks
profit assessment and management will be based
on ROAC and changes in overall value creation.
Stress tests
Economic capital is calibrated according to the
Banks models at a confidence level of 99.97%.
The purpose of stress testing is to evaluate the
impact of possible unfavourable events on the
Danske Bank Groups earnings and solvency.
As a supplement to the calculation of economic
capital, stress tests indicate how the Bank's capi-
tal base would be affected in scenarios in which
the estimated risk parameters are not complied
with.
In recent years, the Bank has applied stress test-
ing as an internal method and process, and the
Banks approach to stress testing will continue
to develop. The Bank has conducted introductory
and general discussions with the Danish FSA on
how stress testing can be included in the future
assessment of the Groups capital level. The
Bank has benchmarked its methods and process-
es to those of several international banks that
have made considerable progress in this area and
Capital management
PROVISIONS AND CREDIT LOSS EXPENSES
2001 2002 2003 2004 2005 2006
0
0.4
0.8
1,2
1.6
0.1
0.2
0.3
0
-0.1
% %
The allowance account, excluding correspondent banks, as a percentage
of loans, advances and guarantees
Credit loss expenses as a percentage of loans, advances and guarantees
Figures for 2001-2003 are based on the accounting standards in force
at that time.
RISK-BASED RETURN TARGETS ROE RAROC ROAC
Framework Regulatory Internal Internal
Time horizon Point-in-time 1 year 3-5 years
Confidence level NA 99.97% 99.97%
Concentration risk No No Yes
Migration risk No No Yes
Operational risk No Standard Standard
Market risk Advanced Advanced Advanced
Credit risk Standardised Internal IRB A
Performance capital All capital Risk capital All capital
has adapted its approach to the recommendations
of the UK FSA.
Stress testing is an analytical process. The key
factors of this process are described in greater
detail in the following paragraphs. For the time
being, the Bank does not take management inter-
vention and intra-risk diversification into
account when conducting stress tests.
Stress test calculations are based on one or more
macroeconomic scenarios. The Group currently
applies eight scenarios:
Severe recession, which is estimated to occur
once during a period of 25 years
Mild recession, which is estimated to occur
once during a period of seven years
Rising interest rates, which lead to falling
property prices
Fall in the US dollar
Increases in commodity prices
Deflation
Liquidity crisis at the Danske Bank Group
owing to the default of a large customer
General liquidity crisis in the banking sector
Each scenario covers a three-to-five-year period,
and for each year the Bank assesses the estimat-
ed impact of various economic shocks on macro-
economic key indicators.
The scenarios cover both earnings and risk. The
Bank has developed translation models to esti-
mate the effect on the Groups risk parameters in
each year of each scenario. Loss trends are
assessed using a regression analysis which
includes industry-specific loss frequencies since
1991. In addition to using its own base of histori-
cal data, the Group bases its calculations on the
OECDs Interlink model, which describes how
external shocks, such as a hike in oil prices,
affect the entire economy. The correlation
between the economic cycle and customers'
drawings on credit facilities with the Bank,
which affect the balance sheet, is also assessed.
After the stressed parameters have been identi-
fied, the Groups current risk portfolio is used to
estimate the effect on the individual accounting
items of the income statement, including credit
loss expenses. The calculations include, among
others, the effect of the fall in the value of collat-
eral which will occur in most unfavourable sce-
narios. The individual stress effects are calculat-
ed for each of the years of the three-to-five-year
horizon in the individual scenarios. This allows
the Group to assess how its total earnings are
affected over the period in question, as the
largest effect rarely shows in the first year.
Finally, the Group calculates the effects on the
risk-weighted assets (according to the forthcom-
ing CRD) and the Banks internal risk statement
(economic capital). Risk-weighted assets will
typically rise rather sharply in an unfavourable
scenario. The Group will thus be able to assess
changes in solvency (according to the future rules).
The effect in the individual scenarios is calcu-
lated for all relevant risk types, so that it is pos-
sible to assess the effect on all parts of the
Groups exposure.
The scenarios and their relevance to the Danske
Bank Group are assessed at least once a year on
the basis of an analysis of the risks that are most
important in the current economic situation. The
analysis is submitted to the All Risk Committee
for approval of the scenarios as the platform for
subsequent stress testing. Stress test conclusions
and the impact of scenarios on expected losses
and capital requirements are subsequently sub-
mitted to the Board of Directors.
Capital management
Business areas
Fokus Bank
Danske Bank Sweden
Sampo Bank
Danske Bank Poland
Danske Bank Hamburg
Danske Bank
BG Bank
Danica Pension
Realkredit Danmark
Northern Bank
National Irish Bank
Danske Bank London
Danske Bank International
The pre-tax profit of the Group's banking activi-
ties rose 8% on the 2005 figure. Banking activi-
ties accounted for 59% of the Groups pre-tax
profit in 2006, against 57% in 2005.
The results of the individual business areas
are described in the following pages.
PROFIT BEFORE TAX (DKr m) 2006 2005 Index 06/05 Share (%) 2006 Share (%) 2005
Banking Activities Danske Bank 5,772 5,767 100 31 33
Banking Activities BG Bank 1,992 1,782 112 11 10
Banking Activities Sweden 1,013 809 125 5 5
Banking Activities Norway 885 579 153 5 3
Banking Activities Northern Ireland -104 23 - -1 -
Banking Activities Ireland 26 -106 - - -1
Banking Activities England,
USA and other units - 528 - - 3
Other Banking Activities 1,308 713 183 7 4
Total Banking Activities 10,892 10,095 108 59 57
Mortgage Finance 2,710 2,755 98 15 16
Danske Markets 3,639 3,719 98 20 21
Danske Capital 560 509 110 3 3
Danica Pension 1,355 1,647 82 7 9
Other areas -659 -1,119 - -4 -6
Total Group 18,497 17,606 105 100 100
The Danske Bank Group is the market leader
in the Danish financial sector. It is the second-
largest bank in the Nordic region in terms of
market capitalisation and the largest in terms
of total assets.
In Norway, Sweden and the Republic of Ireland,
the Group is a market challenger and has
expanded its business volume and market shares
of both lending and deposits since 2005.
Banking Activities
Banking Act ivit ies
BANKING No. of eBanking
ACTIVITIES No. of customers customers
Staff Branches Finance Centres (thousands) (thousands)
2006 2005 2006 2005 2006 2005 2006 2005 2006 2005
Danske Bank 4,227 4,266 286 291 9 9 1,600 1,600 655 579
BG Bank 1,875 1,898 172 174 2 2 800 800 291 253
Sweden 1,135 1,105 59 58 4 4 194 192 106 71
Norway 1,323 1,161 61 70 5 5 237 257 106 73
Northern Ireland 1,862 1,943 95 95 4 4 429 417 58 25
Ireland 698 715 59 59 - - 184 170 28 13
Other 598 672 - - - - - - - -
Total 11,718 11,760 732 747 24 24 3,444 3,436 1,244 1,014
BANKING Population GDP growth Lending Market share Deposits Market share
ACTIVITIES (million) (%) (DKr bn) (%) (DKr bn) (%)
2006 2006 2006 2005 2006 2005 2006 2005 2006 2005
Danske Bank 5.4 3.7 239 198 22 22 236 216 24 25
BG Bank 5.4 3.7 75 64 7 7 79 75 8 8
Sweden 9.0 3.2 138 114 6 4 50 37 5 4
Norway 4.6 3.7 105 87 6 5 47 39 4 4
Northern Ireland 1.7 2.6* 58 40 - - 61 41 - -
Ireland 4.1 5.3 51 34 4 3 21 22 3 3
Other - - 63 - - - 15 - - -
Total - - 731 537 - - 510 430 - -
* The UK
Market share information is based on data reported to local central banks.
The pre-tax profit of Banking Activities Danske
Bank remained at the level recorded in 2005.
Profit before credit loss expenses climbed 15%.
The market in 2006
In 2006, as in 2005, the economic climate in
Denmark was favourable and generated consider-
able demand for financial products and services.
Interest rates rose throughout the year, but lend-
ing margins remained under pressure because of
persistently keen competition. Trading volume
on the securities markets was substantial in the
first quarter of the year, but returned to more
normal levels in the remainder of the year.
The banks market share at end-2006 was un-
changed from the level at the end of 2005.
Income
Net interest income advanced 13% to
DKr6,997m. The higher net interest income
resulted partly from continued growth in lending,
which more than offset the compression of lend-
ing margins, and partly from an interest rate-driven
Banking Activities Danske Bank
Banking Activities Danske Bank encompasses the banking activities of the Danske Bank division in Denmark. Danske Bank
caters to all types of retail and corporate customers. Danske Banks finance centres serve large corporate and private
banking customers. Banking Activities Danske Bank has nine regions with 286 branches, nine finance centres and nearly
4,300 employees.
BANKING ACTIVITIES DANSKE BANK (DKr m) 2006 2005 Index
Net interest income 6,997 6,184 113
Net fee income 3,489 3,319 105
Net trading income 497 455 109
Other income 6 15 40
Total income 10,989 9,973 110
Operating expenses 5,443 5,168 105
Profit before credit loss expenses 5,546 4,805 115
Credit loss expenses -226 -962 -
Profit before tax 5,772 5,767 100
Loans and advances, end of year 238,631 197,674 121
Deposits, incl. pooled deposits, end of year 236,439 216,219 109
Risk-weighted items (avg.) 217,030 186,653 116
Allocated capital (avg.) 14,107 12,132 116
Profit before tax as % of allocated capital 40.9 47.5
Cost/income ratio, % 49.5 51.8
widening of deposit margins. Home financing
products secured on real property and increased
lending to corporate customers accounted for
most of the growth in lending.
Net fee income rose 5% in 2006, mainly because
of heavy trading volume on the securities markets
in the first quarter; equity trading in particular
generated good results. Danske Bank was also
the lead manager of a number of issues, and
these contributed significantly to the rise in net
fee income.
Operating expenses
The 5% increase in operating expenses reflected
costs relating to enhancement of the banks IT
systems and growth in activity-based expenses.
The rise in income led to an improvement of the
cost/income ratio to 49.5%.
Banking Activities Danske Bank recorded a net
positive entry for credit loss expenses of DKr226m,
against a net positive entry of DKr962m in 2005.
The trend was attributable to a persistently
favourable economic climate and the high credit
quality of the loan portfolio.
Lending
Total lending rose 21% on the level recorded at
end-2005. Lending to retail customers was up
17%, primarily because of satisfactory sales of
home financing products. Generally stronger
demand for credit facilities among corporate cus-
tomers lifted lending to this segment by 23%.
Deposits
Deposits rose 9% on the 2005 figure. Retail cus-
tomer deposits were up 6%, while corporate cus-
tomer deposits rose 14%.
Local initiatives
In 2006, Danske Bank continued its strategy of
branding itself as a nation-wide bank with strong
community commitment. Through Danske Initia-
tive Funds, the bank provided more than DKr4m
in sponsorship funding for local initiatives with-
in knowledge, culture and sports. The bank also
brought local talent into focus, awarding 160
grants to students going abroad to study.
Market outlook for 2007
The healthy economic climate in Denmark is
expected to continue in 2007, although with
growth rates lower than in 2006. The bank is
therefore likely to maintain a high level of activi-
ty despite persistently fierce competition.
Danske Bank.
After the merger with BG Bank, Danske Banks
2.2 million customers will be able to access the
bank at 4 branches, about 1,000 ATMs and
post offices throughout the country. Customers
can also take advantage of personal telephone
service and eBanking facilities 24 hours a day,
365 days a year.
PROFIT BEFORE CREDIT LOSS EXPENSES (DKr m)
01 02 03 04 01 02 03 04
2005
2006
1,000
500
250
0
1,500
750
1,250
31
The pre-tax profit of BG Bank rose 12% to
DKr1,992m, against DKr1,782m in 2005. Profit
before credit loss expenses rose 17%.
The market in 2006
Denmark was favourable and generated consider-
Interest rates rose throughout the year, but lend-
ing margins remained under pressure because of
the keen competition. Trading volume on the
securities markets was substantial in the first
quarter of the year, but returned to more normal
levels in the remainder of the year.
The banks market share at end-2006 was un-
changed from the level at the end of 2005.
Income
Net interest income rose 11% on the figure re-
corded in 2005. The higher net interest income
resulted partly from continued growth in lend-
Banking Activities BG Bank
Banking Activities BG Bank encompasses the banking activities of the BG Bank division in Denmark. BG Bank caters to all
types of retail customers and most types of corporate customers through its branch network. BG Bank also serves a number
of agricultural customers at special agricultural centres. Banking Activities BG Bank has seven regions with 172 branches,
two investment desks and nearly 1,900 employees. With effect from April 10, 2007, the BG Bank division will form part of
the Danske Bank division.
BANKING ACTIVITIES BG BANK (DKr m) 2006 2005 Index
Net fee income 1,324 1,306 101
Total income 4,481 4,151 108
Credit loss expenses 63 -23 -
Deposits, incl. pooled deposits, end of year 78,724 74,607 106
ing, which more than offset the compression of
lending margins, and partly from an interest
rate-driven widening of deposit margins. The
narrower lending margins reflected an increasing
percentage of loans secured on real property and
fierce competition.
Net fee income was up 1%, mainly because of
considerable trading volume on the securities
markets in the first quarter of 2006. BG Banks
investment desks also achieved substantial earn-
ings on currency trading and investment services.
Refinancing fees were lower, however, because
of the decrease in refinancing activity.
Operating expenses
Operating expenses rose 1% on the figure for 2005.
The rise was due to costs relating to enhancement
of BG Bank's IT systems. An increase in income
led to an improvement of the cost/income ratio
to 54.1%, down from 57.6% in 2005.
Credit loss expenses amounted to DKr63m, against
a net positive entry of DKr23m in 2005. The loss
was attributable to a few individual facilities.
Lending
Total lending rose 18% on the level recorded
for 2005. Lending to retail customers grew 17%.
This growth came primarily from healthy sales
of the home financing product Bolig Plus.
A general increase in demand for credit facilities
among corporate customers lifted lending to this
segment by 19%.
Deposits
Deposits rose 6% on the 2005 figure. Retail cus-
tomer deposits were up 3%, while corporate cus-
tomer deposits rose 13%.
Retail investing
In October 2006, BG Bank launched two new
offers to retail customers investing in securities:
To self-service customers, BG Bank now offers its
eBanking product BG Investering Online, and for
customers who invest with the assistance of an
adviser, a new and more simplified brokerage
structure has been set up.
Merger of BG Bank and Danske Bank
Danske Bank.
The change will mean that 60 branch offices of
BG Bank and Danske Bank will merge into 30
branches during the spring. These are branches
that are located very close to each other. Cus-
tomers will continue to be served by the advisers
they know because the advisers will move to the
continuing branch.
The change will take effect on April 10, 2007,
when all building facades and printed matter
from the Bank will bear the Danske Bank name.
01 02 03 04 01 02 03 04
2005
2006
400
200
100
0
600
300
500
The pre-tax profit of Banking Activities Sweden
rose 25% to DKr1,013m, against DKr809m in
2005. In local currency, the increase was 24%.
Profit before credit loss expenses was up 40%.
The market in 2006
Sweden was favourable and generated consider-
The market was highly competitive in 2006, and
lending margins remained under pressure
despite the gradual rise in interest rates during
the year.
The market share of Banking Activities Sweden
improved in 2006 to 5.6% for lending and 4.3%
for deposits, against 5.3% and 3.9%, respectively,
in 2005.
Banking Activities Sweden
Banking Activities Sweden encompasses the banking activities of stgta Enskilda Bank and Provinsbankerne in Sweden,
which serve all types of retail and corporate customers. Banking Activities Sweden has four regions with 59 branches, four
finance centres and nearly 1,150 employees. Real-estate agency business is carried out primarily through the 70 offices of
Skandia Mklarna.
BANKING ACTIVITIES SWEDEN (DKr m) 2006 2005 Index
Net fee income 614 485 127
Total income 2,544 2,032 125
Profit before credit loss expenses 1,084 775 140
Credit loss expenses 71 -34 -
Profit before tax 1,013 809 125
Profit before tax in local currency (SKr) 1,253 1,012 124
Deposits, end of year 50,062 37,329 134
Income
Net interest income increased 23% over the 2005
figure as a result of high lending growth which
more than compensated for the narrower lending
margins and a small, interest rate-driven
widening of deposit margins. In addition to
fierce competition, the narrowing of lending
margins was due to a higher proportion of home
financing products and increased lending to cor-
porate customers.
Net fee income rose 27% owing to the larger busi-
ness volume and extensive securities trading.
Operating expenses
Operating expenses rose 16%, reflecting the higher
level of activity, including the expansion of the
branch network in 2005 and 2006 as well as a
rise in the number of employees.
Credit loss expenses amounted to DKr71m,
Lending
Banking Activities Sweden continued to expand
its lending business in 2006. In local currency,
lending to retail customers rose 21%, while
lending to corporate customers increased 15%.
The growth in corporate lending came primarily
from large and medium-sized businesses,
whereas sales of home financing products lifted
lending to retail customers considerably. Business
with the Skandia Mklarna estate-agency chain
contributed to a higher number of home financing
loans.
Deposits
In local currency, deposits rose 29% on the figure
recorded at the end of 2005. Retail customer
deposits were up 25%, while corporate customer
deposits grew 31%.
Awards
Banking Activities Sweden received several
awards in 2006. For example, Danske Bank
Sweden was named business bank of the year by
Finansbarometern, one of Swedens largest inde-
pendent surveys of the Swedish banking, finance
and insurance market. The survey showed that
Danske Banks business model based on commu-
nity involvement and excellent staff qualifica-
tions was of decisive importance to Banking
Activities Swedens success.
Banking Activities Sweden expects to achieve
continued growth in 2007 provided that the eco-
nomic climate in Sweden remains favourable.
Economic growth is expected to be marginally
lower than in 2006, however. The expansion of
the Swedish branch network in recent years, the
organisational adjustments and the acquisition of
real-estate agency chains are expected to make
the Group's Swedish banking operations well
prepared for further profitable growth.
01 02 03 04 01 02 03 04
2005
2006
400
200
100
0
300
The pre-tax profit of Banking Activities Norway
rose DKr306m from the level recorded a year ago
to DKr885m, an increase of 53%. In local curren-
cy, the increase was also 53%. Profit before cred-
it loss expenses climbed 69%.
The market in 2006
Banking Activities Norway saw strong market
growth again in 2006, reflecting the positive inter-
national economic trends and high economic
activity in Norway. The year was characterised by
rising interest rates, but lending margins remained
under pressure because of the fierce competition.
The market share of Banking Activities Norway
improved in 2006 to 5.6% for lending and 4.4%
for deposits, against 5.3% and 4.1%, respectively,
in 2005.
Income
Net interest income rose 22% on the figure
recorded in 2005. The rise was due to a larger
volume of business with both existing customers
and the many new customers acquired in recent
years. This trend more than offset the effect of on-
going competition on interest margins. A small,
interest rate-driven increase in deposit margins
also contributed to the rise in net interest income.
Banking Activities Norway
Banking Activities Norway encompasses primarily the banking activities of Fokus Bank in Norway. Fokus Bank serves all
types of retail and corporate customers. Banking Activities Norway has five regions with 61 branches, five finance centres
and around 1,300 employees. Real-estate agency business is carried out primarily through the 40 offices of Krogsveen.
BANKING ACTIVITIES NORWAY (DKr m) 2006 2005 Index
Total income 2,406 1,837 131
Profit before credit loss expenses 854 506 169
Profit before tax 885 579 153
Profit before tax in local currency (NKr) 954 622 153
Net fee income was up 10%, reflecting the larger
business volume.
Other income was up DKr199m to DKr312m, main-
ly because of the recognition of income generated
by Fokus Krogsveen for the full year 2006, against
only the second half-year in 2005. With effect
from August 1, 2006, Fokus Krogsveen took over
the estate-agency chain Nylander. This acquisi-
tion also contributed to the rise in other income.
Operating expenses
Operating expenses were up 17%, primarily
because of the recognition of expenses at Fokus
Krogsveen for the full year and the acquisition
of Nylander. The recruitment of more employees
to serve customers and the reinforcement of
centralised advisory expertise to serve corporate
customers contributed to the 5% increase in
expenses (excluding expenses incurred by Fokus
Krogsveen and Nylander) over the level a year ago.
Banking Activities Norway recorded a net posi-
tive entry for credit loss expenses of DKr31m,
The low level of losses was attributable to the
favourable economic climate in Norway and the
high credit quality of the loan portfolio.
Lending
In local currency, lending to retail customers in-
creased 8% and lending to corporate customers
rose 42% over the level at end-2005. The rise in
the business volume of Banking Activities Norway
came from both new and existing customers.
Deposits
In local currency, deposits rose 23% on the 2005
figure. Retail customer deposits were up 5%,
while corporate customer deposits rose 31%.
Focus on customers and advisers
In 2006, Banking Activities Norway focused on
retail and corporate customers with healthy
finances and a need for a wide range of banking
services. For staff, Banking Activities Norway
focused on recruiting highly qualified and spe-
cialised advisers, and the bank is developing, for
example, an extensive certification programme
for retail customer advisers. Corporate advisers
benefited from a comprehensive competency
development programme.
In December 2006, Fokus Bank entered into an
agreement with Sparebanken Vest on the sale of
Fokus Banks branches in Sogn og Fjordane coun-
ty in western Norway. The proceeds from the sale
will be recognised in the first half of 2007. The
sale was a natural consequence of Fokus Bank's
strategy of establishing and expanding its business
in larger towns. At the end of 2006, Fokus Bank
was represented in 18 of the 20 largest towns in
Norway.
The healthy economic climate in Norway is ex-
pected to continue in 2007. Economic growth is
expected to be marginally lower than in 2006,
however. The development of the Norwegian
branch network in recent years, the organisational
adjustments and the acquisition of real-estate
agency chains are expected to make the Group's
Norwegian banking operations well prepared for
further profitable growth.
01 02 03 04 01 02 03 04
2005
2006
200
100
0
300
The pre-tax result of Banking Activities Northern
Ireland in 2006 was a loss of DKr104m, against a
profit of DKr23m for the months of March to
December 2005. Excluding integration expenses
and amortisation of intangible assets, the pre-tax
profit amounted to DKr800m, against DKr746m
in 2005.
The market in 2006
In 2006, Northern Ireland continued to enjoy
good economic growth that generated strong
demand for credit facilities among both retail
and corporate customers. Intensive competitive
pressure resulted in a further narrowing of lend-
ing margins, although it was more than offset by
the growth in both lending and deposits.
Banking Activities Northern Ireland
Banking Activities Northern Ireland encompasses the banking activities of Northern Bank, which serves both retail and
corporate customers. Banking Activities Northern Ireland has four regions with 95 branches, four finance centres and
around 1,900 employees.
BANKING ACTIVITIES NORTHERN IRELAND (DKr m) 2006 2005 Index
Net interest income 1,702 1,317 -
Net fee income 485 464 -
Net trading income 87 9 -
Other income 19 20 -
Total income 2,293 1,810 -
Amortisation of intangible assets 459 374 -
Integration expenses 445 349 -
Other operating expenses 1,449 1,028 -
Operating expenses 2,353 1,751 -
Profit before credit loss expenses -60 59 -
Credit loss expenses 44 36 -
Profit before tax -104 23 -
Profit before tax in local currency () -9 2 -
Profit before tax as % of allocated capital -4.2 1.2
Operating expenses, excl. integration expenses, as % of income 83.2 77.5
2005 comprises the months March to December.
Northern Banks market share of retail banking was
20%, and its share of corporate banking was 31%.
Income
In line with expectations, income rose to
DKr2,293m, with growth driven by solid perform-
ances in both lending and deposits. Net interest
income increased to DKr1,702m and reflected
the strong growth of deposits and lending as well
as a small, interest rate-driven widening of deposit
margins.
Operating expenses
Operating expenses increased to DKr2,353m,
partly as a result of higher integration and mar-
keting expenses. Amortisation of intangible
assets accounted for DKr459m and integration
expenses for DKr445m of total operating expenses.
The increase in other operating expenses was
due to overtime payments and rebranding costs
relating to integration. Operating expenses for
2006 also reflected the transition to the Danske
Bank IT platform.
Credit loss expenses amounted to DKr44m for
2006, against DKr36m in 2005. The level of losses
reflected the strong economic growth and the
persistently high credit quality of the loan port-
folio with accordingly low impairment charges.
Lending
At the end of 2006, lending amounted to DKr58bn,
an increase of DKr18bn, of which DKr13bn related
to a new method of recognising loans and advances
under which loans and advances are no longer
netted against deposits held by the same cus-
tomers. Adjusted for this effect, total lending
increased 12%.
Deposits
Deposits totalled DKr61bn at the end of 2006.
Adjusted for the new method of recognising
loans and advances, total deposits grew 18%.
Customer packages
The introduction of new products after Northern
Banks migration to the Danske Bank IT platform
generated solid sales of banking packages. Package
sales exceeded expectations, and new customers
accounted for around 30% of sales. Northern
Banks product range and price structure are now
highly competitive and support its aim to be cus-
tomers first choice in the Northern Ireland market.
The rate of economic growth in Northern Ireland
is expected to be high again in 2007. The
rebranding of Northern Bank and the successful
migration during Easter 2006 have created a
strong business trend that, together with market-
ing campaigns and competitive products and
prices, forms the basis for a promising outlook
for 2007.
01 02 03 04 01 02 03 04
2005
2006
0
-100
-200
100
The pre-tax profit of Banking Activities Ireland
amounted to DKr26m in 2006, against a loss of
DKr106m for the months March to December
2005. Excluding integration expenses and amor-
tisation of intangible assets, the pre-tax profit
amounted to DKr287m, against DKr183m in 2005.
The market in 2006
The Republic of Ireland continued to enjoy solid
economic growth that generated strong demand
for credit facilities among retail and corporate
customers. Strong competition put further pres-
sure on lending margins, but its effect was more
Banking Activities Ireland
Banking Activities Ireland encompasses the banking activities of National Irish Bank, which serves both retail and corporate
customers. Banking Activities Ireland has five regions with 59 branches and around 700 employees.
BANKING ACTIVITIES IRELAND (DKr m) 2006 2005 Index
Net interest income 918 621 -
Net fee income 133 111 -
Net trading income 61 6 -
Other income 6 15 -
Total income 1,118 753 -
Amortisation of intangible assets 102 85 -
Integration expenses 159 204 -
Other operating expenses 834 566 -
Operating expenses 1,095 855 -
Profit before credit loss expenses 23 -102 -
Credit loss expenses -3 4 -
Profit before tax 26 -106 -
Profit before tax in local currency () 4 -14 -
Profit before tax as % of allocated capital 1.1 -8.2
Operating expenses, excl. integration expenses, as % of income 83.7 86.5
2005 comprises the months March to December.
than offset by the growth in both lending and
deposits. National Irish Bank lifted its market
share of lending from 3% at the end of 2005 to
4% at the end of 2006.
Income
Income rose to DKr1,118m, which was in line
with expectations. The rise in net interest
income reflected strong growth in lending and
deposits as well as a small, interest rate-driven
widening of deposit margins.
Operating expenses
Operating expenses rose to DKr1,095m and re-
flected expenses for rebranding and activity-
based costs deriving from the strong growth in
the business volume.
Banking Activities Ireland recorded a net positive
entry of DKr3m for credit loss expenses, reflecting
the positive economic climate and the consistently
high credit quality of the loan portfolio.
Lending
Lending amounted to DKr51bn at the end of 2006.
Measured in local currency, retail lending grew
52%, while lending to corporate customers was
up 50%.
Deposits
Deposits totalled DKr21bn at the end of 2006,
around the same level as in 2005. However, as
deposits from large businesses were transferred
to Danske Markets as a result of the conversion
at Easter 2006, deposits actually rose about
DKr6bn.
Migration and new branches
In April 2006, National Irish Bank successfully
completed its migration to the Danske Bank IT
platform. The bank received a number of awards
for its work on this project.
The growth strategy for banking activities in the
Republic of Ireland includes the opening of a num-
ber of new branches over the next three years.
The rate of economic growth is expected to slow
down marginally in the Republic of Ireland in
2007, although growth is still likely to signifi-
cantly outperform average European growth.
Lending growth at National Irish Bank is expected
to exceed market growth again in 2007.
01 02 03 04 01 02 03 04
2005
2006
0
-100
-50
50
100
Other Banking Activities
Other Banking Activities comprises the activities of Nordania and the activities of Danske Bank International S.A.,
Luxembourg, Hamburg Branch, Poland Branch and Helsinki Branch.
OTHER BANKING ACTIVITIES (DKr m) 2006 2005 Index
Net interest income 807 755 107
Other income 1,432 1,288 111
Total income 2,625 2,364 111
Profit before credit loss expenses 1,054 932 113
Credit loss expenses -254 219 -
Profit before tax 1,308 713 183
PROFIT BEFORE TAX (DKr m) 2006 2005 Index
Nordania 421 395 107
Other non-Danish banking activities 887 318 279
Other Banking Activities 1,308 713 183
The pre-tax profit of Other Banking Activities
amounted to DKr1,308m, against DKr713m
in 2005. Profit before credit loss expenses was
up 13%.
Nordania
Profit before credit loss expenses at Nordania
rose 8% relative to 2005. Net interest income at
Nordania was 7% lower than in 2005. The
decline was due mainly to narrower lending
margins resulting from keener competition. An
increase in operating leases produced a rise in
other income at Nordania relative to the result
achieved in 2005.
Other non-Danish banking activities
Profit before credit loss expenses of other non-
Danish banking activities rose 17%. All of these
units contributed to the improvement, which
resulted from a positive business trend.
Operating expenses
The operating expenses of Other Banking Activi-
ties rose 10% on the figure recorded in 2005.
The rise was attributable primarily to higher
costs deriving from an increase in activity-based
costs, enhancement of IT systems and the con-
version of Danske Banks operations in Poland
into a branch.
Credit loss expenses at Nordania amounted to
DKr7m, against DKr4m in 2005.
Other non-Danish banking activities recorded
a net positive entry of DKr261m for credit loss
expenses, against an expense of DKr215m in
2005. The 2005 result suffered from a few indi-
vidual impairment charges that were partially
reversed in the third quarter of 2006. The posi-
tive trend in 2006 was also attributable to a
favourable economic climate and the high credit
quality of the loan portfolio.
Other Banking Act ivit ies
The pre-tax profit fell 2% to DKr2,710m in 2006,
against DKr2,755m the year before. Profit before
credit loss expenses was down 1%.
The market in 2006
In 2006, the Danish mortgage credit market
returned to a lower and more normal level after
a long period of refinancing waves and many
product launches. Total gross lending on the
market fell DKr469bn, or 37%, relative to the
figure recorded a year earlier.
This fall should be seen in light of a general rise
in interest rates that, as expected, led to a cessa-
tion of significant interest rate-driven refinancing
activity.
The lower level of activity in the mortgage credit
market was due not only to the rise in interest
rates, but also to a decline in property sales.
Prices of owner-occupied housing continued to
soar, but in the second half of the year, a slow-
down set in. Moreover, turnover in the housing
Mortgage Finance
Mortgage Finance encompasses the Danske Bank Groups mortgage finance and real-estate agency business in Denmark.
The division markets its financing solutions through Realkredit Danmark, Danske Bank, BG Bank and home. Real-estate
agency business is carried out through home, which has 199 offices throughout the country.
MORTGAGE FINANCE (DKr m) 2006 2005 Index
Net fee income -234 83 -
Total income 3,781 3,879 97
Mortgage loans, end of year 602,584 569,092 106
market was substantially lower in 2006 than the
year before, in particular in the market for owner-
occupied flats and holiday homes.
Income
The 6% increase in net interest income reflected
a rise in administration margins due to a larger
loan portfolio.
Net fee income declined DKr317m to a negative
DKr234m as a result of the decline in refinancing
activity and larger payments to Danske Bank and
BG Bank for loans arranged through them.
Operating expenses
Operating expenses fell 5%. The cost/income
ratio improved marginally due to the fall in
costs.
Credit loss expenses amounted to a net positive
entry of DKr105m, against a net positive entry of
DKr118m in 2005. The credit quality of the loan
portfolio remained good, with the average loan-
to-value ratio at 53% at end-2006, against 58% at
end-2005.
Lending
In 2006, mortgage loans measured at fair value
rose DKr33bn to DKr603bn. The outstanding
nominal bond debt increased DKr46bn to
DKr609bn. Gross lending amounted to DKr145bn
in 2006, against DKr224bn the year before. The
table provides a breakdown of lending.
Further development of local strategy
In 2006, Realkredit Danmark continued to devel-
op its local strategy of playing a more active role
in the local community. In September, Realkredit
Danmark launched its Smart Square Metres
sponsorship initiative, awarding grants to
schools and companies that give special priority
to physical and functional settings that inspire
learning, co-operation and new ideas.
The level of activity in the Danish mortgage
credit market in 2007 is expected to remain
largely unchanged from the level in 2006. The
volume of interest rate-driven refinancing is
expected to be relatively modest because of a
slight rise in interest rates in 2007.
KEY FIGURES 2006 2005
Private Corporate Total Private Corporate Total
Loan portfolio, nom., end of year (DKr bn) 378 231 609 348 215 563
Share, % 62 38 100 62 38 100
Share of interest-only loans, % 39 9 28 33 5 22
Market share, gross lending, % 29.9 29.3 29.7 30.5 27.6 29.5
Market share, portfolio, end of year, % 33.7 31.3 32.8 34.6 31.6 33.4
01 02 03 04 01 02 03 04
2005
2006
800
400
200
0
600
The pre-tax profit of Danske Markets fell 2% to
DKr3,639m, against DKr3,719m in 2005. Exclud-
ing profits from the sale of HandelsFinans in the
fourth quarter of 2005, the pre-tax result was up
a satisfactory 11%.
The market in 2006
The year 2006 was generally characterised by
central banks raising key money market rates.
Rates were lifted gradually, however, and over
the year as a whole, long-term interest rates rose
only moderately.
Danske Markets
Danske Markets is responsible for the Groups activities in the financial markets. Trading activities include trading in fixed-
income products, foreign exchange, equities and interest-bearing securities, providing the largest corporate customers and
institutional clients with financial products and advisory services on mergers and acquisitions, and assisting customers in
connection with their issue of equity and debt on the international financial markets. Proprietary trading encompasses the
Banks short-term investments. The investment portfolio covers the Banks strategic fixed-income, foreign exchange, and
equity portfolios. Institutional banking includes facilities with international financial institutions outside the Nordic region.
Institutional facilities with Nordic financial institutions form part of the Groups banking activities.
DANSKE MARKETS (DKr m) 2006 2005 Index
Total income 5,535 5,491 101
TOTAL INCOME (DKr m) 2006 2005 Index
Trading activities 3,502 3,068 114
Proprietary trading 390 378 103
Investment portfolio 1,159 1,589 73
Institutional banking 484 456 106
Total Danske Markets 5,535 5,491 101
A number of financial markets were fairly volatile,
with a quite fast rise in long-term bond yields
during the spring that led to a sharp if short-
lived correction in the Nordic equity markets.
Overall, the equity markets performed well in
2006, and the Nordic markets all gained in the
course of the year.
In the foreign exchange market, the US dollar
weakened considerably, while the Swedish krona
was one of the best-performing currencies.
Danske Markets activities
The satisfactory trend in Danske Markets activi-
ties in the Nordic region continued, and the
Group consolidated its position in these markets.
As a result of the rise in volatility in both the
fixed-income and the equity markets, Danske
Markets experienced stronger demand for instru-
ments to hedge risk. Demand for Danish as well
as international equities also grew.
Income
Income from trading activities amounted to
DKr3,502m, up 14% on the income recorded
in 2005. Corporate Finance took part in a large
number of mergers, acquisitions and capital mar-
ket transactions again in 2006, and Acquisition
& Leveraged Finance took part in and arranged
a number of major debt-financed transactions.
Income from proprietary trading rose 3% on the
2005 level.
Income from the investment portfolio was lower
in 2006 than in 2005 as the 2005 figure benefited
from extraordinary income items, such as the
sale of HandelsFinans and of shares in compa-
nies providing the financial infrastructure in
Denmark and shares in property companies.
In 2006, the investment portfolio benefited from
exposure to emerging markets equities and its
good positioning for the rise in interest rates in
the spring.
Income from institutional banking remained
satisfactory.
Operating expenses
Operating expenses rose 10% to DKr1,950m in
2006, mainly because of an increase in activity,
including a rise in performance-based compensa-
tion and IT costs.
The high level of activity at Danske Markets is
expected to continue in 2007. The gradual tight-
ening of monetary policy in Europe and else-
where in the world may, however, cause the
markets to be volatile again in 2007. Against this
background, Danske Markets does not expect
volume growth in the mortgage credit and secur-
ities markets to continue at the pace recorded
in 2006.
01 02 03 04 01 02 03 04
2005
2006
800
400
200
0
1,200
600
1,000
The pre-tax profit of Danske Capital rose 10%
to DKr560m, against DKr509m in 2005.
The market in 2006
The Nordic units of Danske Capital maintained
their position in the market for asset management
in 2006. The units in Finland, Sweden, Norway
and Luxembourg expanded their business segments,
while the Danish unit focused on investment
solutions for retail and institutional customers.
Danske Capitals market share of unit trust busi-
ness targeting Danish retail customers was 33%
of total assets at December 31, 2006, against 35%
a year earlier.
Sales totalled DKr7.4bn in 2006, of which
DKr3.5bn derived from Danske Capital units out-
side Denmark and DKr3.9bn from units in Den-
mark.
Income
Income was up 15% to DKr1,026m, owing most-
ly to product development and the increase in
activities outside Denmark. In 2006, Danske Cap-
ital earned performance fees of DKr95m, against
DKr97m the year before. Income at non-Danish
units was 31% higher than in 2005, and the rise
was broadly based. Non-Danish units accounted
for 25% of income in 2006, against 24% in 2005.
Danske Capital
Danske Capital is responsible for developing wealth management services to the retail banks and manages the funds of retail
customers and institutional investors and the funds of Danica Pension, Danske Fund, Puljeinvest (pooled investment) and
Flexinvest. The division also provides advisory services to Danske Invest and BG Invest. Through Danske Bank International
in Luxembourg, Danske Capital provides wealth management services to clients outside the Groups home markets. Danske
Capital is also responsible for developing asset management products sold through the retail banks and directly to companies,
institutional investors and external distributors.
DANSKE CAPITAL (DKr m) 2006 2005 Index
Total income 1,026 893 115
Operating expenses 466 384 121
Profit before tax 560 509 110
Risk-weighted items (avg.) 544 149 365
Allocated capital (avg.) 35 10 365
Assets under management (DKr bn) 491 468 105
Operating expenses
The rise in costs was 21%, owing primarily to
an inflow of staff and an increase in activities at
non-Danish units.
Investment performance
Danske Capitals investment performance in 2006
was satisfactory, with above-benchmark returns
in a number of key areas. In equities, Danske
Capital strengthened its position with Nordic,
European and eastern European equities deliver-
ing good returns. Most bond products delivered
returns above the benchmark, and credit bonds
significantly outperformed the benchmark.
Danske Capital also achieved satisfactory returns
on bond- and equity-based hedge funds.
For a number of years, Danske Capital has
generated satisfactory investment results, owing
primarily to increased focus on the Groups
principal markets combined with outsourcing
of products related to remote markets.
In 2006, Danske Capital also launched a number
of investment products most recently Flexin-
vest Fri, under which Danske Capital carries out
the day-to-day management of liquid customer
funds, a solution similar to the Flexinvest pension
savings scheme. Sales of Flexinvest Fri totalled
DKr2.7bn in 2006.
Stronger wealth management
As of January 1, 2007, Danske Capital is respon-
sible for developing and providing wealth man-
agement services to all other areas in the Group.
Wealth management helps affluent customers
optimise their overall financial solution.
With the gathering of the Group's wealth man-
agement expertise at Danske Capital, the Group
seeks to meet the increasing demand for such
services.
Danske Capital expects to continue the positive
trend in its business in 2007. With the integra-
tion of Sampo Bank Asset Management, the unit
will further strengthen its international platform.
ASSETS UNDER MANAGEMENT (DKr bn) Share (%)
2006 2005 2006 2005
Equities 154 114 31 24
Private equity 11 9 2 2
Bonds 315 337 64 72
Cash 11 8 2 2
Total 491 468 100 100
BREAKDOWN ON INVESTORS (DKr bn) Share (%)
2006 2005 2006 2005
Life insurance 191 181 39 39
Unit trusts - retail 139 140 28 30
Pooled schemes 54 45 11 10
Institutions, incl. unit trusts 107 102 22 22
Total 491 468 100 100
PROFIT BEFORE TAX (DKr m)
2005
2006
200
100
0
300
01 02 03 04 01 02 03 04
Danica Pension saw a sound business trend in
2006 with a rise in gross premiums, including
payments under investment contracts, of 8% to
DKr18.2bn.
Total premiums for the market-based products
Danica Balance and Danica Link rose by 87% to
DKr6.0bn, against DKr3.2bn in 2005. One effect
of this increase was that premiums for Danica
Traditionel declined by DKr0.7bn. In 2006, mar-
ket-based products accounted for 49% of new
contracts. At the end of 2006, some 72,000 cus-
tomers had opted for the market-based products.
The presentation of Danica Pensions results has
been changed from the 2005 presentation to
match the future profit policy, according to
which the risk allowance consists exclusively of
Danske Banks share of technical provisions and
does not include the health and accident result.
Market position in 2006
In 2006, Danica Pension strengthened its position
as the leading supplier of life and pension prod-
ucts on the Danish market, partly as a result of
declining costs and enhanced efficiency.
Danica Pension
Danica Pension encompasses all the Danske Bank Groups activities in the life insurance and pensions market. Marketed
under the name of Danica Pension, the unit targets both personal and corporate customers. Products are marketed through
a range of distribution channels within the Group, primarily Banking Activities outlets and Danica Pensions insurance brokers
and advisers.
DANICA PENSION (DKr m) 2006 2005 Index
Share of technical provisions, etc. 1,037 1,127 92
Unit-linked business -53 -25 -
Health and accident business -101 -486 -
Return on investments 772 783 99
Financing result -300 -193 -
Postponed risk allowance - 441 -
Net income from insurance business 1,355 1,647 82
Premiums, insurance contracts 16,232 15,293 106
Premiums, investment contracts 2,014 1,655 122
Technical provisions (avg.) 176,757 167,406 106
Net income as % of allocated capital 18.5 19.6
The decline in the level of expenses allowed
Danica Pension to reduce its prices for Danica
Traditionel, Danica Balance and Danica Link in
2006.
Activities outside Denmark
Danica Pensions business in Sweden recorded a
growth rate of 22%, and premium income stood
at DKr1.6bn, against DKr1.3bn in 2005.
In Norway, the business volume was at the
same level as in 2005, with premium income
of DKr0.5bn.
Earnings
Net income from insurance business fell 18%
to DKr1,355m in 2006.
Excluding the booking of postponed risk allowance
of DKr441m in 2005, earnings rose by 12%.
Increased position taking in equities helped
maintain the high level of the investment return.
The raising of additional subordinated debt
reduced allocated capital and thereby the financ-
ing result. Moreover, the fall in net income from
insurance business was attributable to the change
in profit policy in 2006 that reduced the risk
allowance.
The health and accident result remained unsatis-
factory, although better than in 2005, when
Danica Pension had to strengthen provisions.
For more information about Danica Pensions
profit policy and consolidation in the accounts
of the Danske Bank Group, visit
www.danskebank.com/ir.
Investment return
Danica Traditionel posted a return on investments
of customer funds of 2.9% in 2006, against
12.6% in 2005. Given the market conditions and
the chosen risk profile, the return was satisfacto-
ry. In 2006, Danica Pension increased the portion
of customer funds invested in equities to 23%.
As equities provided a return of 15% in 2006,
this contributed to a rise in the total return.
The return on property holdings was 19.5%.
Danica Traditionel customers received interest
on their savings at a rate of 4.5%.
Danica Balance customers with a 75% equity
allocation and a medium risk profile saw a
return of 10.5% in 2006. The majority of Danica
Link customers have chosen Danica Valg, the
Danica-managed investment pool, with a medium
risk profile, and they achieved a return of 5.3%,
against 21.7% in 2005.
The collective bonus potential rose by DKr2.6bn
to DKr13.9bn at the end of 2006 because increas-
ing interest rates reduced provisions by 3.6%.
A 30% fall in equity prices would have reduced
the collective bonus potential by DKr11.2bn and
shareholders equity by DKr0.9bn. An increase in
interest rates of 1.0 percentage point would have
reduced the collective bonus potential by DKr1.2bn
and shareholders equity by DKr0.1bn.
CUSTOMER FUNDS DANICA TRADITIONEL
Share (%) Return (%)
Holdings and returns 2006 2005 2006 2005
Real property 9 8 19.5 11.6
Bonds, etc. 68 76 -2.1 11.1
Equities 23 16 15.0 24.8
Total 100 100 2.9 12.6
Given the change in the collective bonus poten-
tial in 2006 and the forecasts for future returns,
Danica Pension fixed the rate of interest on poli-
cyholders savings at 4.5%. Danica Pension
intends to apply this rate throughout 2007.
Subordinated loan capital
In October 2006, Danica Pension issued subordi-
nated loan capital in an amount of 0.4bn. Part
of it was used to repay existing loans worth
DKr2bn and part will be used for continuing
expansion. The subordinated loan capital was
rated A+ by Standard & Poors.
Openness and transparency
In 2006, the issue of transparency at life insur-
ance companies received increased attention.
Danica Pension contributed to the debate by
focusing on clearly exhibiting its cost and risk
results on conventional products. Furthermore,
Danica Pension is the only company in the sec-
tor that has published processing times on its
Web site in recent years. In 2006, Danica Pension
decided to compensate customers if processing
times exceeded the targets.
The growth in premiums is expected to continue
in 2007. The investment result is not expected to
remain at the same high level in 2007 as in 2006,
and the financing result will be adversely affected
by the raising of subordinated loan capital.
The pre-tax result of Other areas was affected by
an increase in the cost of capital as a result of
the acquisition of Northern Bank and National
Irish Bank.
The higher profit from Others was attributable to
the following factors: the closing of the Groups
Norwegian pension fund, which resulted in
a DKr0.2bn reduction of operating expenses;
proceeds from the sale of properties, including
Realkredit Danmarks former head office build-
ing, of DKr0.1bn; and a reduction of severance
payments of DKr0.1bn.
Other areas
Other areas
Other areas encompasses the Groups real property activities, unallocated cost of capital and expenses for Group support
functions. Moreover, the area covers the elimination of returns on own shares.
OTHER AREAS (DKr m) 2006 2005
Net interest income -902 -845
Net fee income -209 -32
Net trading income -249 -306
Other income 693 593
Total income -667 -590
Operating expenses -7 529
Profit before credit loss expenses -660 -1,119
Credit loss expenses -1 -
Profit before tax -659 -1,119
PROFIT BEFORE TAX (DKr m) 2006 2005
Cost of capital -956 -796
Own shares -240 -320
Others 537 -3
Total Other areas -659 -1,119
The Board of Directors and the Executive Board (the management) have today reviewed and approved the Annual
Report of Danske Bank A/S for the financial year 2006.
The consolidated accounts have been prepared in accordance with the International Financial Reporting Standards
(IFRS) as adopted by the EU, and the annual accounts of the Parent Company have been prepared in accordance
with the Danish Financial Business Act. Furthermore, the Annual Report has been prepared in accordance with
additional Danish disclosure requirements for annual reports of listed financial institutions.
In our opinion, the Annual Report gives a true and fair view of the Groups and the Parent Companys assets, liabili-
ties and financial position at December 31, 2006, and of the results of the Groups and the Parent Companys opera-
tions and consolidated cash flows for the financial year starting on January 1 and ending on December 31, 2006.
The management will submit the Annual Report to the general meeting for approval.
Copenhagen, January 31, 2007
Executive Board
Peter Straarup Jakob Brogaard
Chairman Deputy Chairman
Tonny Thierry Andersen Sven Lystbk Per Skovhus
Senior Executive Vice President Senior Executive Vice President Senior Executive Vice President
Board of Directors
Alf Duch-Pedersen Jrgen Nue Mller Eivind Kolding
Chairman Vice Chairman Vice Chairman
Henning Christophersen Peter Hjland Niels Chr. Nielsen
Sten Scheibye Majken Schultz Claus Vastrup
Birgit Aagaard-Svendsen Helle Brndum Charlotte Hoffmann
Per Alling Toubro Verner Usbeck Solveig rteby
Statement by the management
Internal Audits report
We have audited the accompanying Annual Report of Danske Bank A/S for the financial year 2006, which com-
prises the managements report, the statement by the management, accounting policies, income statement, balance
sheet, capital, cash flow statement and notes. The consolidated financial statements have been prepared in ac-
cordance with the International Financial Reporting Standards as adopted by the EU, and the financial statements
of the Parent Company have been prepared in accordance with the Danish Financial Business Act. Furthermore,
the Annual Report has been prepared in accordance with additional Danish disclosure requirements for annual
reports of financial institutions listed on the Copenhagen Stock Exchange.
Auditors responsibility
We conducted our audit in accordance with the executive order of the Danish Financial Supervisory Authority on
auditing financial enterprises and financial groups and in accordance with Danish auditing standards. These stan-
dards require that we plan and perform the audit to obtain reasonable assurance that the Annual Report is free
from material misstatement. In addition, the audit was conducted in accordance with the division of duties agreed
with the external auditors, according to which the external auditors to the widest possible extent base their audit
on the work performed by the internal auditors.
We planned and conducted our audit such that we have, during the year, assessed the business and internal con-
trol procedures, including the risk management implemented by the management aimed at the Groups and the
Parent Companys reporting processes and major business risks.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
Annual Report. The procedures selected depend on the auditors judgment, including the assessment of the risks
of material misstatement of the Annual Report, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the preparation and fair presentation of the Annual Report in
order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by management,
as well as evaluating the overall presentation of the Annual Report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Our audit did not result in any qualification.
Opinion
In our opinion, the business procedures and internal control procedures, including the risk management imple-
mented by the management, aimed at the Groups and the Parent Companys reporting processes and major busi-
ness risks work satisfactorily.
Furthermore, we believe that the Annual Report gives a true and fair view of the Group's and the Parent Com-
pany's assets, liabilities and financial position at December 31, 2006, and of the results of the Group's and the
Parent Company's operations and the Groups cash flows for the year in accordance with International Financial
Reporting Standards as adopted by the EU in respect of the consolidated financial statements, in accordance with
the Danish Financial Business Act in respect of the Parent Companys financial statements and in accordance with
additional Danish disclosure requirements for annual reports of listed financial institutions.
Jens Peter Thomassen Erik Fosgrau
Group Chief Auditor Deputy Group Chief Auditor
Audit reports
Audit reports
Independent auditors report
To the shareholders of Danske Bank A/S
We have audited the accompanying Annual Report of Danske Bank A/S for the financial year 2006, which com-
prises the managements report, the statement by the management, accounting policies, income statement, balance
sheet, capital, cash flow statement and notes. The consolidated financial statements have been prepared in ac-
cordance with the International Financial Reporting Standards as adopted by the EU, and the financial statements
of the Parent Company have been prepared in accordance with the Danish Financial Business Act. Furthermore,
the Annual Report has been prepared in accordance with additional Danish disclosure requirements for annual
reports of financial institutions listed on the Copenhagen Stock Exchange.
Managements responsibility for the Annual Report
Management is responsible for preparing and presenting an Annual Report that gives a true and fair view in accor-
dance with the International Financial Reporting Standards as adopted by the EU in respect of the consolidated
financial statements and in accordance with the Danish Financial Business Act in respect of the Parent Companys
financial statements and in accordance with additional Danish disclosure requirements for annual reports of listed
financial institutions. This responsibility includes: designing, implementing and maintaining internal control rele-
vant to the preparation and fair presentation of an Annual Report that is free from material misstatement, whether
due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates
that are reasonable in the circumstances.
Auditors responsibility
Our responsibility is to express an opinion on the Annual Report based on our audit. We conducted our audit in
accordance with Danish auditing standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance that the Annual Report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
Annual Report. The procedures selected depend on the auditors judgment, including the assessment of the risks
of material misstatement of the Annual Report, whether due to fraud or error. In making those risk assessments,
the auditor considers internal controls relevant to the preparation and fair presentation of the Annual Report in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating
the overall presentation of the Annual Report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Our audit did not result in any qualification.
Opinion
In our opinion, the Annual Report gives a true and fair view of the Group's and the Parent Company's assets,
liabilities and financial position at December 31, 2006, and of the results of the Group's and the Parent Company's
operations and the Groups cash flows for the year in accordance with International Financial Reporting Standards
as adopted by the EU in respect of the consolidated financial statements, in accordance with the Danish Financial
Business Act in respect of the Parent Companys financial statements and in accordance with additional Danish
disclosure requirements for annual reports of listed financial institutions.
KPMG C. Jespersen Grant Thornton
Statsautoriseret Revisionsinteressentskab Statsautoriseret Revisionsaktieselskab
Per Gunslev Arne Sivertsen Svend rjan Jensen Erik Stener Jrgensen
State Authorised Public Accountants State Authorised Public Accountants
62 ACCOUNTING POLICIES
78 INCOME STATEMENT
79 BALANCE SHEET
80 CAPITAL
83 CASH FLOW STATEMENT
84 NOTES
84 1 Business segmentation
88 2 Net interest and net trading income
89 3 Fee income
89 4 Fee expenses
89 5 Other income
89 6 Net premiums
89 7 Net insurance benefits
90 8 Staff costs & administrative expenses
97 9 Audit fees
97 10 Amortisation and depreciation
97 11 Credit loss expenses
97 12 Total tax charge for the year
98 13 Cash in hand, etc.
98 14 Due from credit inst./central banks
98 15 Trading portfolio
101 16 Financial investment securities
101 17 Assets held for sale
101 18 Bank loans and advances
101 19 Mortgage loans, etc.
102 20 Pooled schemes/unit-linked contracts
102 21 Assets under insurance contracts
105 22 Holdings in associated undertakings
106 23 Intangible assets
107 24 Investment property
108 25 Tangible assets
109 26 Other assets
109 27 Due to credit inst./central banks
109 28 Deposits
109 29 Liabilities under insurance contracts
109 30 Deferred tax
110 31 Other liabilities
111 32 Subordinated debt
112 33 Pension plans
114 34 Contingent liabilities
115 35 Assets deposited as security
115 36 Leasing
116 37 Acquisition of subsidiary undertakings
118 38 Related parties
119 39 Fair value of financial instruments
120 Group holdings and undertakings
121 Definitions of key financial ratios
122 Risk management
122 Risk exposure
123 Credit risk
130 Market risk
132 Liquidity risk
134 Life insurance risk
135 Pension risk
136 Events after the balance sheet date
137 ANNUAL ACCOUNTS OF THE PARENT
COMPANY, DANSKE BANK A/S
Accounts Danske Bank Group
General
The Danske Bank Group presents its consolidated
accounts in accordance with the International Financial
Reporting Standards (IFRS) issued by the International
Accounting Standards Board (IASB) and approved by
the EU and with relevant interpretations issued by the
International Financial Reporting Interpretation Com-
mittee (IFRIC). Furthermore, the consolidated accounts
comply with the requirements for annual reports for-
mulated by the Copenhagen Stock Exchange and the
Danish FSA.
The Group has opted for early adoption of IFRS 7
Financial Instruments: Disclosures (August 2005).
Adjustment of accounting policies
The Group has not changed its accounting policies from
those followed in the Annual Report for 2005 except in
the instances mentioned below.
With effect from January 1, 2006, the Group has adjusted
its policies for the recognition of provisions for unit-
linked insurance contracts to comply with the new
rules issued by the Danish FSA that complete the
framework laid down by IFRS 4. Under the earlier
accounting policies, the present value of the future
administrative result was recognised at the establish-
ment of a contract. Under the new rules, provisions
must, as a minimum, equal the surrender value of a
contract. Comparative figures have been restated.
This adjustment reduced net income from insurance
business by DKr277m and tax by DKr78m in 2006. The
effects on the comparative figures for 2005 were reduc-
tions of DKr183m and DKr46m, respectively. The account-
ing policies effective as of January 1, 2006, led to a
decline in the value of other assets of DKr57m, a rise
in liabilities under insurance contracts of DKr494m,
a decrease in deferred tax liabilities of DKr130m and
a lowering of shareholders equity of DKr421m.
Adjustment of presentation
The disclosure of net income from insurance business
has been adjusted with effect from January 1, 2006,
to provide a coherent presentation. The adjustment
of technical provisions relating to changes in interest
rates and the addition to policyholders savings of
returns on assets under insurance contracts and the
tax payable on such returns are now recognised as net
trading income instead of net insurance benefits. Con-
sequently, net insurance benefits comprise only trans-
actions with policyholders, whereas net trading income
includes both the value adjustment of assets under
insurance contracts and the return added to policy-
holders savings. Comparative figures have been restated.
This adjustment led to an increase in net trading
income and net insurance benefits of DKr2,615m
(2005: DKr12,975m). The reduction did not affect the
net profit for the year or shareholders equity.
Accounting estimates and assessments
The preparation of the consolidated accounts is based
on a number of significant estimates and assessments
made by the Board of Directors and the Executive
Board (the management) of future events that will
affect the carrying amounts of assets and liabilities.
The amounts most influenced by vital estimates and
assessments made by the management are:
the fair value of financial instruments
impairment charges for loans and advances
impairment charges for goodwill
the value of liabilities under insurance contracts
the value of defined benefit plans
The estimates and assessments made by the manage-
ment are based on assumptions that the management
finds reasonable but which are inherently uncertain
and unpredictable. Assumptions may be incomplete or
inaccurate, and unexpected future events or situations
Accounting policies
may occur. Therefore, such estimates and assumptions
are difficult to make and will always entail uncertainty,
even under stable macroeconomic conditions, when
they involve transactions with customers and other
counterparties.
Consolidation
Subsidiary undertakings
The consolidated accounts comprise Danske Bank A/S
and subsidiary undertakings in which the Group has
control over financial and operating policy decisions.
Control is said to exist if Danske Bank A/S, directly or
indirectly, holds more than half of the voting rights in
an undertaking or otherwise has power to control man-
agement and operating policy decisions, provided that
most of the return on the undertaking accrues to the
Group and that the Group assumes most of the risk.
The consolidated accounts are prepared by consolidat-
ing items of the same nature and eliminating intra-group
transactions, accounts, and trading profit and losses.
Undertakings acquired are included in the accounts
at the time of acquisition. Divested undertakings are
included in the accounts until the transfer date.
The net assets of such undertakings, i.e. assets, includ-
ing identifiable intangible assets, less liabilities and
contingent liabilities, are included in the accounts at
their fair value on the date of acquisition using the
purchase method.
If the cost of acquisition, including direct transaction
costs, exceeds the fair value of the net assets of the
undertaking acquired, the excess amount is recognised
as goodwill. Goodwill is recognised using the func-
tional currency of the undertaking acquired. If the fair
value of the net assets exceeds cost (negative goodwill),
the excess amount is posted as income in the income
statement at the time of acquisition.
Associated undertakings
Associated undertakings are businesses, other than
subsidiary undertakings, in which the Group has hold-
ings and significant influence but not control. The
Group generally classifies undertakings as associated
undertakings if Danske Bank A/S, directly or indirectly,
holds 20-50% of the voting rights.
Holdings are recognised at cost at the time of acquisi-
tion and are subsequently valued using the equity
method with the addition of goodwill on acquisition.
The proportionate share of the net profit or loss of the
individual undertaking is included under Income from
associated undertakings based on data from accounts
with balance sheet dates not earlier than three months
before the balance sheet date of the Group.
The proportionate share of the profit and loss on trans-
actions between associated undertakings and sub-
sidiary undertakings of the Danske Bank Group is elim-
inated.
Segment reporting
The accounts break down information by business seg-
ment, the primary segment reporting format of the
Group, and by geographical segment, the secondary
segment reporting format of the Group. Segment disclo-
sure complies with the accounting policies of the
Group.
Intra-segment transactions are settled at market prices.
Expenses incurred centrally, including expenses
incurred by support, administrative and back-office
functions, are charged to the business segments in
accordance with their estimated proportionate share of
overall activities or at market prices, if available.
Account ing policies
Segment assets and liabilities are those assets and lia-
bilities that are used to maintain the operating activi-
ties of a segment or have come into existence as a
result of such activities and that are either directly
attributable to or may reasonably be allocated to a
segment. A calculated share of shareholders equity is
allocated to each segment. Other assets and liabilities
are recognised in the Others segment.
Offsetting
Amounts due to and from the Group are offset when
the Group has a legally enforceable right to set off
a recognised amount and intends either to settle on
a net basis or to realise the asset and settle the liability
simultaneously.
Translation of transactions in foreign currencies
The presentation currency of the consolidated accounts
is Danish kroner. The functional currency of each of
the Groups units is the currency of the country in
which the unit is domiciled, as most income and
expenses are recognised in the currency of that country.
Transactions in foreign currency are translated at the
exchange rate of the functional currency at the transac-
tion date. Gains and losses on exchange rate differ-
ences arising between the transaction date and the set-
tlement date are recognised in the income statement.
Monetary assets and liabilities in foreign currencies are
translated at the exchange rates prevailing at the bal-
ance sheet date. Exchange rate adjustments of mone-
tary assets and liabilities arising as a result of differ-
ences in the exchange rates applying at the transaction
date and at the balance sheet date are recognised in the
income statement.
Non-monetary assets and liabilities in foreign curren-
cies that are subsequently revalued at fair value are
translated at the exchange rates applying at the date of
revaluation. Exchange rate adjustments are included in
the revaluation of the fair value of an asset or liability.
Other non-monetary items in foreign currency are
translated at the exchange rates applying at the date of
transaction.
Translation foreign units
Assets and liabilities of foreign units are translated into
Danish kroner at the exchange rates applying at the
balance sheet date. Income and expenses are translated
at the exchange rates applying at the date of transaction.
Exchange rate gains and losses arising at the translation
of net investments in foreign units are recognised
directly in shareholders equity. Net investments
include the net assets and goodwill of the units as well
as investments in foreign units in the form of subordi-
nated loan capital. Exchange rate adjustments of finan-
cial liabilities to hedge net investments in foreign units
are also recognised directly in shareholders equity.
Financial instruments general
Purchases and sales of financial instruments are mea-
sured at their fair value at the settlement date, which is
usually the same as the transaction price. Before the
settlement date, changes in the value of financial
instruments are recognised.
Classification
At the time of recognition, financial assets are divided
into the following four categories:
trading portfolio measured at fair value
loans and advances measured at amortised cost
held-to-maturity investments measured at amortised
cost
financial assets designated at fair value with value
adjustment through profit and loss
At the time of recognition, financial liabilities are
divided into the following three categories:
trading portfolio measured at fair value
financial liabilities designated at fair value with
value adjustment through profit and loss
other financial liabilities measured at amortised cost
Fair value option Financial assets and liabilities
designated at fair value through profit and loss
Mortgage lending and issued mortgage bonds
Mortgage loans granted under Danish mortgage finance
law are funded by issuing listed mortgage bonds on
identical terms. Borrowers may repay such mortgage
loans by delivering the underlying bonds.
The Group buys and sells own mortgage bonds on an
ongoing basis because such securities play an impor-
tant role in the Danish financial market. If mortgage
loans and issued mortgage bonds were valued at amor-
tised cost, the purchase and sale of own mortgage
bonds would mean that timing differences in profit
and loss recognition would occur: The purchase price
of the mortgage bond portfolio would not equal the
amortised cost of the issued bonds. Moreover, elimina-
tion would result in recognition of an arbitrary effect
on profit and loss, which would require an excessive
amount of resources to calculate. If the Group subse-
quently decided to sell its holding of own mortgage
bonds, the new amortised cost of this new issue
would not equal the amortised cost of the matching
mortgage loans, and the difference would be amortised
over the remaining term to maturity.
Consequently, the Group has chosen to recognise both
mortgage loans and issued mortgage bonds at fair value
in accordance with the option offered by IAS 39 to
ensure that neither profit nor loss will occur on the
purchase of own mortgage bonds.
The fair value of issued mortgage bonds will usually
equal the market value. However, a small number of
the issued bonds are illiquid, and the fair value of
these bonds is calculated on the basis of a discounted
cash flow valuation model.
The fair value of mortgage loans is based on the fair
value of the underlying mortgage bonds adjusted for
the credit risk on borrowers. The fair value adjustment
of mortgage loans largely equals the fair value adjust-
ment of the mortgage bonds issued.
The fair value adjustment of mortgage loans and issued
mortgage bonds is carried under Net trading income
except for the part of the adjustment that concerns the
credit risk on mortgage loans, which is carried under
Credit loss expenses.
Other financial assets designated at fair value
but not included in the trading portfolio
Other financial assets include securities that are not
classified as trading portfolio assets, loans and advances
(including mortgage loans) or held-to-maturity invest-
ments. These securities do not form part of the trading
portfolio because no recent pattern of short-term profit-
taking exists. As the assets are managed on a fair value
basis, the fair value option is applied to ensure uni-
form accounting treatment of these assets and assets in
the trading portfolio. Realised and unrealised capital
gains and losses and dividends are carried in the
income statement under Net trading income.
These financial assets are recognised on the balance
sheet under Financial investment securities and Assets
under insurance contracts.
Hedge accounting
The Group uses derivatives to hedge the interest rate
risk on fixed-rate assets and fixed-rate liabilities car-
ried at amortised cost except for held-to-maturity
investments. Hedged risks that meet specific criteria
qualify for fair value hedge accounting and are treated
accordingly. The interest rate risk on the hedged assets
and liabilities is recognised at fair value as value
adjustments of the hedged items.
If the hedge criteria cease to be met, the accumulated
value adjustments of the hedged items are amortised
over the term to maturity.
Insurance activities general
The Group's insurance activities comprise conven-
tional life insurance, unit-linked insurance and
personal injury insurance.
The computation of the Groups net income from con-
ventional life insurance business complies with the
executive order on the contribution principle issued by
the Danish FSA. The financial result of Danica Pension,
the parent company of the life insurance group, is cal-
culated, in accordance with the profit policy, on the
basis of the return on a separate pool of assets equal to
shareholders equity and a risk allowance determined
by the technical provisions and by the result of the
companys health and accident business. If the realised
result of Danica Pension for a given period is insuf-
ficient to allow the booking of the risk allowance, the
amount will be booked in later periods when a suf-
ficient result is realised.
The pool of assets equal to shareholders equity is con-
solidated with the other assets of the Group.
Life insurance policies are divided into insurance and
investment contracts. Insurance contracts are contracts
that entail significant insurance risk or entitle policy-
holders to bonuses. Investment contracts are contracts
that entail insignificant insurance risk and comprise
unit-linked contracts under which the investment risk
lies with the policyholder.
Insurance contracts
Insurance contracts comprise both an investment ele-
ment and an insurance element, which are recognised
jointly.
Technical provisions for insurance contracts are carried
at their fair value under Liabilities under insurance
contracts.
Assets earmarked for insurance contracts are rec-
ognised as Assets under insurance contracts if most of
the return on the assets accrues to the policyholders.
The assets are valued in accordance with the Groups
accounting policies for similar types of asset. This
means that most of the assets are measured at fair value.
Contributions made under insurance contracts are car-
ried under Net premiums, whereas benefit expenses
are recognised as Net insurance benefits. The return on
earmarked assets is allocated to the relevant items in
the income statement. The return is credited to the pol-
icyholders under Net trading income.
Investment contracts
Investment contracts are recognised as financial liabili-
ties, and consequently, contributions/benefits under
investment contracts are recorded directly on the bal-
ance sheet as adjustments of liabilities. Contributions
are carried at the value of the savings on the balance
sheet under Deposits under pooled schemes and unit-
linked investment contracts.
Savings under unit-linked investment contracts are
recognised at fair value under Assets under pooled
schemes and unit-linked investment contracts. The
return on assets and the crediting of amounts to
account holders are recorded under Net trading
income.
BALANCE SHEET
Due from credit institutions and central banks
Amounts due from credit institutions and central banks
include amounts due from other credit institutions and
time deposits with central banks. Reverse transactions,
i.e. purchases of securities from credit institutions and
central banks to be resold at a later date, are recognised
as amounts due from credit institutions and central
banks.
Amounts due from credit institutions and central
banks are measured as described under Bank loans
and advances.
Trading portfolio (assets and liabilities)
The trading portfolio includes financial assets acquired
and liabilities undertaken by the Group which it
intends to sell or repurchase in the short term. More-
over, the trading portfolio consists of financial assets
and liabilities managed collectively for which a pattern
of short-term profit-taking exists. All derivatives,
including separate embedded derivatives, form part of
the trading portfolio.
Assets in the trading portfolio include the equities,
bonds, loans and advances, and derivatives with posi-
tive fair value held by the Groups trading departments.
Liabilities in the trading portfolio include derivatives
with negative fair value and obligations to deliver
securities.
At first-time recognition, the trading portfolio is mea-
sured at fair value, excluding transaction costs. Subse-
quently, the portfolio is measured at fair value with
value adjustments through profit and loss.
Fair value
The fair value of financial assets and liabilities is mea-
sured on the basis of quoted market prices of financial
instruments traded in active markets. If an active
market exists, value measurement is based on the last
known market price on the balance sheet date.
If an active market does not exist, the fair value of stan-
dard and simple financial instruments, such as interest
rate and currency swaps and unlisted or illiquid
bonds, is measured using generally accepted valuation
techniques. Market-based parameters are used to mea-
sure fair value. The fair value of more complex finan-
cial instruments, such as swaptions, interest rate caps
and floors, and other OTC products, is measured on
the basis of internal models, many of which are based
on valuation techniques and methods generally
accepted within the industry.
The results of calculations made on the basis of valua-
tion models are often estimates, because exact values
cannot be determined on the basis of market obser-
vations. Consequently, other parameters, such as
liquidity and counterparty risk, are sometimes added
to measure fair value.
Financial investment securities
Financial investment securities consist of held-to-
maturity investments and other financial assets that
are valued as trading portfolio assets under the fair
value option.
Held-to-maturity investments
Held-to-maturity investments cover certain bonds with
a quoted price in an active market held for the purpose
of generating a profit until maturity. Bonds without a
quoted price in an active market held for the purpose
of generating a profit until maturity are carried under
Bank loans and advances. Held-to-maturity investments
are measured at amortised cost.
Assets and liabilities held for sale
Assets held for sale consist of tangible assets, except
investment property and lease assets which, according
to a publicly announced plan, are expected to be sold
within twelve months. Furthermore, this item includes
assets and liabilities that form part of disposal groups
that are expected to be sold within twelve months.
Tangible assets are measured at the lower of their
carrying amount at the time of reclassification and
their net realisable value and are no longer depreciated.
Other assets and liabilities are measured in accordance
with the Groups general accounting policies.
Bank loans and advances
Bank loans and advances consists of loans and
advances disbursed directly to borrowers and loans
and advances acquired after disbursement. Loans and
advances extended or acquired by the Group which it
intends to resell in the short term are included in the
trading portfolio. Bank loans and advances includes
conventional bank loans, finance leases, mortgages,
reverse transactions, except for transactions with credit
institutions and central banks, and certain bonds that
do not have a quoted price in an active market. More-
over, the item includes loans secured on real property,
except for loans granted under Danish mortgage
finance law, which are carried under Mortgage loans.
At first-time recognition, bank loans and advances are
measured at fair value plus transaction costs and less
origination fees, etc. Subsequently, they are measured
at amortised cost, using the effective interest method,
with the deduction of any impairment charges. The
difference between first-time recognition and the nomi-
nal value is amortised over the term to maturity and
carried under Interest income. If fixed-rate loans and
advances and amounts due are hedged efficiently by
derivatives, the fair value of the hedged interest rate
risk is added to the amortised cost of the assets.
Impairment
If objective evidence of impairment of a loan, an
advance or an amount due exists, and the effect of the
impairment event or events on the expected cash flow
from the asset is reliably measurable, the impairment
charge is determined individually. The charge equals
the difference between the carrying amount and the
present value of the expected future cash flow of the
asset, including the realisable value of security. The
present value of fixed-rate loans and advances is calcu-
lated at the original effective interest rate, whereas the
present value of loans and advances with a variable
rate of interest is calculated at the current effective
interest rate.
Objective evidence of impairment of loans and advances
exists if at least one of the following events has occurred:
the borrower is experiencing significant financial
difficulty
the borrowers actions, such as default on interest
or principal payments, lead to a breach of contract
the Group, for reasons relating to the borrower's finan-
cial difficulty, grants to the borrower a concession
that the Group would not otherwise have granted, or
it becomes probable that the borrower will enter
bankruptcy or other financial reorganisation
Loans and advances without objective evidence of
impairment are considered in an assessment of collective
impairment at portfolio level. Such assessment involves
a portfolio of loans and advances with uniform credit
risk characteristics. A collective impairment charge is
established to cover, for instance, the deterioration in the
pattern of cash flows from the portfolio and changes
that normally affect the extent of defaults within the
portfolio of loans and advances/amounts due.
Collective impairment is calculated as the difference
between the carrying amount of the loans and
advances of the portfolio and the present value of
expected future cash flows. Expected future cash flows
are estimated on the basis of historical loss data and
data that reflect current conditions. The discount rate
used is the weighted average of the agreed effective
interest rates on the individual loans and advances in
the portfolio.
Impairment charges are booked in an allowance
account and offset against loans and advances. Changes
in the allowance account are recorded under Credit
loss expenses in the income statement. If subsequent
events show that an impairment loss is not of a perma-
nent nature, the charge is reversed via Credit loss
expenses.
Loans and advances that are considered uncollectible
are written off. Write-offs are deducted from the
allowance account. Loans and advances are written off
once the usual collection procedure has been completed
and the loss on the individual loan or advance can be
calculated.
The booking of interest on loans and advances will
stop if individual impairment losses are recorded.
Instead, interest is calculated on the impaired value of
the loan at the original rate of interest.
Mortgage lending and issued mortgage bonds
At first-time recognition, mortgage loans and issued
mortgage bonds are measured at fair value, excluding
transaction costs. Subsequently, such assets are mea-
sured at fair value.
The fair value of issued mortgage bonds is normally
defined as their market value. However, a small part
of the issued bonds are illiquid, and the value of these
bonds is calculated on the basis of a discounted cash
flow valuation model.
The fair value of mortgage loans is based on the fair
value of the underlying mortgage bonds adjusted for
the credit risk on the borrowers.
Assets and deposits under pooled schemes
and unit-linked investment contracts
These items include assets and deposits under pooled
schemes and unit-linked contracts defined as invest-
ment contracts.
The assets in which customer savings have been
invested are recognised at fair value and carried under
Assets under pooled schemes and unit-linked invest-
ment contracts. Similarly, deposits made by customers
are carried under Deposits under pooled schemes and
unit-linked investment contracts. Deposits are recog-
nised at the value of savings.
Holdings of shares and bonds issued by the Group are
deducted from shareholders equity or eliminated, as
the case may be. Consequently, the value of Deposits
under pooled schemes and unit-linked investment con-
tracts exceeds that of Assets under pooled schemes and
unit-linked investment contracts.
Assets and liabilities under insurance contracts
Assets under insurance contracts includes assets ear-
marked for policyholders. The earmarking means that
most of the return accrues to the policyholders. The
assets, which include financial assets, investment
property tangible assets, etc., are specified in the notes.
The valuation technique used matches the Groups
accounting policies for similar assets. A few pieces of
real property are jointly owned and therefore consoli-
dated in the accounts on a pro rata basis.
Liabilities under insurance contracts comprises liabili-
ties that relate to the insurance contracts of the Group.
The liabilities consist of life insurance provisions, pro-
visions for unit-linked insurance contracts, collective
bonus potential, other technical provisions and other
liabilities.
Holdings of shares and bonds issued by the Group are
deducted from shareholders equity or eliminated, as
the case may be. Consequently, the value of Liabilities
under insurance contracts exceeds that of Assets under
insurance contracts.
Life insurance provisions
Life insurance provisions are measured at fair value by
actuaries. Provisions are calculated for each insurance
contract using a zero-coupon yield curve from which a
risk premium is deducted. The calculation of life
insurance provisions factors in assumptions of mortal-
ity and disability based on historical data.
Provisions for unit-linked insurance contracts
Provisions are measured at fair value on the basis of
the share of each contract of the assets in question and
the benefits guaranteed.
Collective bonus potential
The collective bonus potential includes the part of the
accumulated realised result that is not credited to the
individual policyholders.
Other technical provisions
Other technical provisions include outstanding claims
provisions, unearned premium provisions and provi-
sions for bonuses and premium discounts.
Other liabilities
Other liabilities include the share of Danica Pensions
other liabilities, such as deferred tax on pension
returns, which rest with policyholders. Other liabilities
are valued in accordance with the accounting policies
of the Group for similar types of liability.
Intangible assets
Goodwill
Goodwill arises on the acquisition of subsidiary under-
takings and is calculated as the difference between the
cost of an undertaking acquired and the fair value of its
net assets, including contingent liabilities, at the time
of acquisition. Goodwill on acquisitions made before
2002 was written off against shareholders equity in the
year of acquisition.
Goodwill on associated undertakings is carried under
Holdings in associated undertakings.
Goodwill is allocated to cash-generating units in accord-
ance with the level at which management monitors the
return on its investment. Goodwill is not amortised;
instead, each cash-generating unit is tested for impair-
ment at least once a year. Goodwill is written down to
its recoverable amount through profit and loss if the
carrying amount of the net assets of the cash-generating
unit exceeds the higher of their fair value less costs to
sell and their value in use, which corresponds to the
present value of the future cash flows expected to be
derived from the unit.
Other intangible assets
Software acquired is measured at cost, including the
expenses incurred to make each software application
ready for use. Software acquired is amortised over its
expected useful life, which is usually three years,
using the straight-line method.
Software developed by the Group is recognised if the
cost of development is reliably measurable and analy-
ses show that the future profit on using the individual
software applications exceeds cost. Cost is defined as
development costs incurred to make each software
application ready for use. Once the software has been
developed, the cost is amortised over the expected use-
ful life, which is usually three years, using the straight-
line method. Development costs consist primarily of
direct remuneration and other development costs that
may be attributed directly. Expenses incurred in the
planning of the software are not included; instead, such
expenses are booked when incurred.
Identifiable intangible assets taken over on the acquisi-
tion of undertakings are recognised at the time of
acquisition at their fair value and amortised over their
expected useful lives, which are usually three years,
using the straight-line method.
Other intangible assets are tested for impairment if
indications suggest that impairment exists, and the
assets are written down to their value in use.
Costs attributable to the maintenance of intangible
assets are expensed in the year of maintenance.
Investment property
Investment property is real property, including real
property let under operating leases, which the Group
owns for the purpose of receiving rent and/or obtaining
capital gains. The section on domicile property below
explains the distinction between domicile and invest-
ment property.
On acquisition, investment property is recognised at
cost, including transaction costs. Subsequently, the
property is measured at fair value. Fair value and rent
adjustments are carried under Other income in the
income statement.
The fair value is assessed by the Groups valuers at least
once a year. Assessments are based on the expected
return on the Groups property and on the rate of
return calculated for each property. The rate of return
of a property is calculated on the basis of its location,
type, applications, layout and condition as well as on
the terms of lease agreements, rent adjustment and
credit quality of the lessees.
Tangible assets
Tangible assets comprise domicile property, equipment,
vehicles, tools, leasehold improvements and lease
assets.
Domicile property
Domicile property is real property occupied by the
Groups administrative departments, branches and
other service units. Real property with both domicile
and investment property elements is allocated propor-
tionally to the two categories if the elements are sepa-
rately sellable. If that is not the case, such real property
is classified as domicile property, unless the Group
occupies less than 10% of the total floorage.
Domicile property is valued at cost plus improvements
and less depreciation and impairment charges. The
straight-line depreciation of the property is based on
the expected scrap value and an estimated useful life
of 20 to 50 years. Real property held under long-term
leases is depreciated on a progressive scale.
Investment property which becomes domicile property
because the Group starts using it for its own activities
is recognised at cost corresponding to the fair value
at the time of reclassification. Domicile property which
becomes investment property is revalued at its fair value
at the time of reclassification. Revaluation is recognised
directly in shareholders equity.
Domicile property which, according to a publicly
announced plan, is expected to be sold within twelve
months is carried as an asset held for sale. Real proper-
ty taken over in connection with the settlement of debt
is recognised under Other assets.
Equipment, vehicles, tools and leasehold
improvements
Equipment, vehicles, tools and leasehold improvements
are recognised at cost less depreciation and impairment.
Assets are depreciated over their expected useful lives,
which are usually three years, using the straight-line
method. Leasehold improvements are depreciated over
the terms of the leases, with a maximum of 10 years.
Lease assets
Lease assets are assets, except real property, leased
under operating leases with the Group as the lessor.
They are measured using the same valuation technique
as that applied by the Group to its other equipment,
vehicles and tools.
Impairment
Tangible assets are tested for impairment if indications
suggest that impairment exists. An impaired asset is writ-
ten down to its recoverable amount, which is the high-
er of its fair value less costs to sell and its value in use.
Other assets
Other assets includes interest and commissions due,
prepayments and tangible assets taken over under non-
performing loan agreements. Assets taken over are car-
ried at the lower of their cost and net realisable value,
i.e. their fair value less expected costs to sell.
Amounts due to credit institutions
and central banks/Deposits
Amounts due to credit institutions and central banks
and deposits include amounts received under repo
transactions, i.e. sales of securities to be repurchased at
a later date.
Amounts due to credit institutions and central banks
and deposits are measured at amortised cost to which
is added the fair value of the hedged interest rate risk.
Other issued bonds/Subordinated debt
Other issued bonds and subordinated debt comprise
the bonds issued by the Group except issued mortgage
bonds. Subordinated debt is liabilities in the form of
subordinated loan capital and other capital investments
which, in case of voluntary or compulsory winding-up
or bankruptcy, will not be repaid until after the claims
of ordinary creditors have been met.
Other issued bonds and subordinated debt are measured
at amortised cost to which is added the fair value of
the hedged interest rate risk.
The yield on some issued bonds depends on an index
which is not closely linked to the financial characteris-
tics of the bonds, for example an equity or commodity
index. Such embedded derivatives are treated separate-
ly and carried at their fair value in the trading portfolio.
Other liabilities
Other liabilities include accrued interest, fees and com-
missions that do not form part of the amortised cost of
a financial instrument.
Other liabilities also include pension obligations and
provisions for other obligations, such as lawsuits and
guarantees.
Pension obligations
The Groups pension obligations consist of both
defined contribution and defined benefit plans for its
staff. Under the defined contribution plans, the Group
pays regular contributions to insurance companies and
other institutions. Such payments are expensed as they
are earned by the staff, and the obligations under the
plans are taken over by the insurance companies and
other institutions as contributions are made.
Under the defined benefit plans, the Group is under an
obligation to pay defined future benefits starting at the
time of retirement. The amounts payable are recognised
on the basis of an actuarial assessment of the present
value of expected benefits. The present value is calcu-
lated on the basis of the expected future trends in
salaries and interest rates, time of retirement, mortality
and other factors.
The present value of pension benefits less the fair val-
ue of pension assets is carried as a pension obligation
for each plan under Other liabilities on the balance
sheet. If the net amount of a defined benefit plan is
positive, i.e. an asset to the Group, and may be repaid
to the Group or reduce its future contributions to the
plan, the net amount is carried under Other assets. The
discount rate is based on the market rate that applies to
high-quality corporate bonds with maturities that cor-
respond to the maturity of the pension obligations.
The difference between the expected trends in pension
assets and benefits and the actual trends will result in
actuarial gains or losses. Actuarial gains and losses that
do not exceed the higher of 10% of the present value
of benefits and 10% of the fair value of pension assets
are not recognised in the income statement or on the
balance sheet but form part of the corridor. If the accu-
mulated actuarial gains and losses exceed both these
threshold values, the excess amount is recognised in
the income statement and in the net pension obligation
over the expected remaining period of service of the
staff covered by the plan.
Guarantees and irrevocable loan commitments
At first-time recognition, financial guarantees and
irrevocable loan commitments are recognised at the
value of the premiums received. Subsequently, guaran-
tees are valued at the higher of the received premium
amortised over the guarantee period and the provision
made, if any. Provisions for guarantees and irrevocable
loan commitments are recognised under Other liabili-
ties if claims for payment under the guarantees or loan
commitments seem likely and the amount payable may
be reliably measured.
Deferred tax
Deferred tax on all temporary differences between the
tax base of assets and liabilities and their carrying
amounts is accounted for using the balance sheet liabil-
ity method. Deferred tax is recognised on the balance
sheet under Deferred tax assets and Deferred tax liabili-
ties on the basis of current tax rates.
However, the Group does not recognise deferred tax on
temporary differences between the tax base and the
carrying amounts of goodwill not subject to amortisa-
tion for tax purposes and other items if temporary dif-
ferences arose at the time of acquisition without effect
on the net profit or taxable profit. If the tax base may
be calculated according to several sets of tax regula-
tions, deferred tax is measured in accordance with the
regulations that apply to the use of the asset/settlement
of the liability as planned by the management.
Tax assets arising from unused tax losses and unused
tax credits are recognised to the extent it is probable
that the unused tax losses and unused tax credits can
be used.
Deferred tax is measured on the basis of the tax regula-
tions and rates that, according to the rules in force at
the balance sheet date, will apply in the relevant coun-
tries at the time the deferred tax is expected to become
current tax. Changes in deferred tax as a result of
changes in tax rates are recognised in the income state-
ment.
Shareholders' equity
Foreign currency translation reserve
The foreign currency translation reserve covers differ-
ences that have occurred since January 1, 2004, as a
result of the translation to Danish kroner of the finan-
cial results of and net investments in foreign units
from their functional currencies. Furthermore, the
reserve includes exchange rate adjustments of financial
liabilities to hedge net investments in foreign units.
If the net investment in a foreign unit is fully or partly
realised, the translation differences arising from the
unit are recognised in the income statement.
Proposed dividends
The Board of Directors proposal for dividends for the
year submitted to the general meeting is included as a
separate reserve in shareholders equity. The dividends
are recognised as a liability when the general meeting
has adopted the proposal.
Own shares
Amounts received and paid for the Groups sale and
purchase of Danske Bank shares are recognised directly
in shareholders equity. The same applies to premiums
received and paid for derivatives with delivery of own
shares.
Capital reduction by cancellation of own shares will
lower the share capital by an amount corresponding to
the nominal value of the shares at the time of registra-
tion of the capital reduction.
Share-based payment
Share-based payment by the Group requires delivery of
Danske Bank shares. The fair value at the time of allot-
ment is expensed as entitlement is earned and set off
against shareholders' equity. At the time of exercise,
payment by employees is recognised as an increase in
shareholders' equity. Shares acquired for hedging pur-
poses are set off against shareholders' equity by the
amount paid in line with the principle governing other
purchases of Danske Bank shares.
Minority interests
Minority interests share of shareholders equity corre-
sponds to the carrying amount of the net assets in sub-
sidiary undertakings not owned directly or indirectly
by Danske Bank A/S.
INCOME STATEMENT
Interest income and expenses
Interest income and expenses arising from interest-
bearing financial instruments carried at amortised cost
are recognised in the income statement using the effec-
tive interest method on the basis of the cost of the
financial instrument. Interest includes amortisation of
fees that are an integral part of the effective yield on a
financial instrument, including origination fees, and
amortisation of any other differences between cost and
redemption price.
Interest income and expenses include interest on finan-
cial instruments carried at fair value, but not interest
on assets and deposits under pooled schemes and unit-
linked investment contracts, which is recognised as
Net trading income. Origination fees on mortgage loans
carried at fair value are recognised as Interest income
at origination.
Interest on loans and advances subject to individual
impairment is recognised on the basis of the impaired
value.
Fee income and expenses
Fee income and expenses are divided into fees gener-
ated by activities and fees generated by portfolios.
Income from and expenses for services provided over
a period of time, such as guarantee commissions and
investment management fees, are accrued over the
period. Transaction fees, such as brokerage and custody
fees, are recognised on completion of the transaction.
Net trading income
Net trading income includes realised and unrealised
capital gains and losses on trading portfolio assets,
other securities, including securities carried under
Assets under insurance contracts, mortgage loans, issued
mortgage bonds, exchange rate adjustments and divi-
dends. The effect on profit and loss of fair value hedge
accounting is also recognised as net trading income.
The return on assets under pooled schemes and unit-
linked investment contracts and the addition of the
return to customer accounts are also recognised as net
trading income. Moreover, the item includes interest
adjustments of life insurance provisions, collective
bonus potential and tax on pension returns.
Other income
Other income includes rental income and lease pay-
ments under operating leases, fair value adjustment of
investment property and gains and losses on the sale of
tangible and intangible assets.
Net premiums
Regular and single premiums on insurance contracts
are included in the income statement on their due
dates. Premiums on investment contracts are recog-
nised directly on the balance sheet. Reinsurance pre-
miums are deducted from premiums received.
Net insurance benefits
Net insurance benefits comprises benefits disbursed
under insurance contracts. The item also includes
adjustments to outstanding claims provisions and life
insurance provisions that do not relate to changes in
interest rates. The benefits are recognised net of rein-
surance.
Income from associated undertakings
Income from such undertakings comprises the Groups
proportionate share of the net profit or loss of the indi-
vidual undertakings.
Profit on sale of associated and subsidiary undertakings
The profit on sale of associated and subsidiary under-
takings is the difference between the selling price and
the carrying amount, including goodwill, if any, arising
on holdings in associated and subsidiary undertakings
that have been disposed of.
Staff costs and administrative expenses
Staff costs
Salaries and other consideration expected to be paid
for work carried out during the year are expensed
under Staff costs and administrative expenses. This
item comprises salaries, bonuses, expenses for share-
based payment, holiday allowances, jubilee bonuses,
pension costs and other consideration.
Bonuses and share-based payment
Bonuses are expensed as they are earned. Part of the
bonuses for the year is paid in the form of share
options with delivery and conditional shares. Share
options may not be exercised until three years after
allotment and are conditional on the employee not
having resigned from the Group. Conditional shares
become available three years after allotment provided
that the employee has not resigned from the Group.
The fair value of share-based payment at the time of
allotment is expensed over the period of service
unconditionally entitling the employee to the payment.
The intrinsic value of the allotment is expensed in the
year when entitlement is earned, whereas the time
value is accrued over the remaining service period.
Expenses are set off against shareholders equity.
Subsequent changes to the fair value are not carried
in the income statement.
Pensions
The Groups contributions to defined contribution
plans are recognised in the income statement when
they are earned by the employees. The Group applies
the corridor method to defined benefit plans, and the
income statement thus includes actuarial pension
expenses (standard cost).
Credit loss expenses include impairment losses on and
charges for loans and advances, amounts due from
credit institutions and guarantees, and the fair value
adjustment of the credit risk on mortgage loans.
Tax
Calculated current and deferred tax on the profit for
the year and subsequent adjustments of tax charges for
previous years are recognised in the income statement.
Income tax for the year is recognised in the income
statement on the basis of the tax laws applying in the
countries in which the Group operates. Tax on items
recognised in shareholders' equity is charged directly.
Cash flow statement
The Group has prepared its cash flow statement using
the indirect method. The statement is based on the pre-
tax profit for the year and shows the cash flows from
operating, investing and financing activities and the
increase/decrease in cash and cash equivalents during
the year.
Cash and cash equivalents consist of cash in hand and
demand deposits with central banks and amounts due
from credit institutions and central banks with original
maturities shorter than three months.
Calculation of financial highlights
The financial highlights deviate from the corresponding
figures in the consolidated accounts as described below.
Income from the Danske Markets segment is recognised
in the consolidated income statement under Net trading
income and Net interest income. The value of each item
may vary considerably from year to year, depending on
the underlying transactions and changes in market
conditions. The financial highlights of the Group show
all income from trading activities under Net trading
income.
Income and expenses arising from the Danica Pension
segment are consolidated on a line-by-line basis. The
return on insurance activities accruing to the Group is
determined by a contribution principle which is based
primarily on life insurance obligations. As the return
attributable to the Group may not be derived directly
from the individual items in the income statement,
net income from insurance business is presented on
a single line in the financial highlights.
Unlike the comparative figures for 2004, figures for
2002 and 2003 have not been restated to match the
accounting policies introduced on the transition to
IFRS on January 1, 2005. The Groups IFRS White
Paper explains in detail the changes in valuation tech-
niques and presentation of the income statement and
balance sheet on the transition. The IFRS White Paper
is available at www.danskebank.com/ir.
Comparative figures for 2005 and 2004 have been
restated to reflect the adjustment of accounting policies
in 2006.
Changes to financial highlights and segment reporting
The presentation of the segments Danica Pension and
Danske Markets has been revised: Danica Pensions
return on assets allocated to shareholders equity is
now recognised as income of Danica Pension and not
of Danske Markets as was previously the case with part
of the return. The amount reclassified for 2005 was
DKr153m, which increased the result of Danica Pension
and reduced the result of Danske Markets. Comparative
figures have been restated.
Standards and interpretations not yet in force
The International Accounting Standards Board (IASB)
has issued a number of international accounting stan-
dards that have not yet come into force. Similarly, the
International Financial Reporting Interpretations Com-
mittee (IFRIC) has issued a number of interpretations
that have not yet come into force. The sections below
list the standards and interpretations that may affect
the financial reporting of the Group.
In November 2006, IFRS 8 Operating Segments was
issued. The standard, which has not yet been approved
by the EU, governs the segmentation of business and
outlines the information to be disclosed about each
business area. The implementation is not expected
to materially affect the information disclosed in the
annual report.
In August 2005, amendments to IAS 1 Presentation of
Financial Statements Capital Disclosures were
issued. The standard, to be implemented in the
Groups annual report for 2007, governs the disclosure
of information about the capital base. The implementa-
tion is not expected to affect the information disclosed
in the annual report.
In November 2006, IFRIC issued interpretation No. 11
IFRS 2 Group and Treasury Share Transactions.
The interpretation, which has not yet been approved
by the EU, specifies that the way a company acquires
shares at the time of exercise does not affect the
accounting treatment of share-based payment. It will
not affect the Groups current treatment of share-based
payment.
In July 2006, IFRIC issued interpretation No. 10 Inter-
im Financial Reporting and Impairment. The interpre-
tation, which has not yet been approved by the EU,
prohibits the reversal of impairment charges for good-
will and financial assets carried at cost in interim
accounts. The implementation is unlikely to have any
effect on carrying amounts.
In March 2006, IFRIC issued its interpretation No. 9
Reassessment of Embedded Derivatives. The inter-
pretation, to be implemented in the Groups annual
report for 2007, specifies the conditions for separating
an embedded derivative from the host contract. The
implementation is unlikely to have any effect on carry-
ing amounts.
In January 2006, IFRIC issued its interpretation No. 8
Scope of IFRS 2. The interpretation, to be imple-
mented in the Groups annual report for 2007, specifies
the types of share-based payment to be treated in accor-
dance with IFRS 2. The implementation is unlikely to
have any effect on carrying amounts.
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Note [OKr mJ L00S L00S
L lnterest lncome 10S,7L^ BB,90^
L lnterest expense B0,SLS S0,111
Net lnterest lncome LS,09B LB,79Z
Z lee lncome 9,S1S 9,1SB
^ lee expenses L,SZ1 L,1L0
L Net tradlng lncome S,7SB Z,B9S
S Other lncome S,^1L Z,77S
S Net premlums 1S,1BL 1S,LSL
7 Net lnsurance benellts LZ,S^1 L^,00^
lncome lrom assoclated undertaklngs ZB9 Z^7
lrollt on sale ol assoclated and subsldlary undertaklngs 1S7 S^S
B Btall costs and admlnlstratlve expenses 1B,09S 17,0Z0
10 Amortlsatlon and depreclatlon L,Z^^ L,10L
11 Credlt loss expenses ^9S 1,09S
lrollt belore tax 1B,^97 17,S0S
1L 1ax ^,9SL ^,9L1
Net prollt lor the year 1Z,S^S 1L,SBS
lortlon attrlbutable to.
Bhareholders ol the larent Company 1Z,SS7 1L,SB1
Mlnorlty lnterests 1L ^
Net prollt lor the year per share, OKr L1.S L0.L
Olluted net prollt lor the year per share, OKr L1.^ L0.L
lroposed dlvldend per share, OKr 7.7S 10.00
-*2*"#&'(3&&)'!'+*"(,&'-*",'./$01'
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!
ABBL1B
1Z Cash ln hand and demand deposlts wlth central banks 1L,Z19 1Z,BB1
1^ Oue lrom credlt lnstltutlons and central banks L7S,LSB L7^,91B
1S 1radlng portlollo assets ^90,9S^ ^^^,SL1
1S llnanclal lnvestment securltles LS,ZZB LB,71L
17 Assets held lor sale 1,79S L0S
1B Eank loans and advances 1,0S^,ZLL BL9,S0Z
19 Mortgage loans S0L,SB^ SS9,09L
L0 Assets under pooled schemes and unltllnked lnvestment contracts Z9,S0L ZS,S7S
L1 Assets under lnsurance contracts 19^,Z0L 1BB,Z^L
LL Holdlngs ln assoclated undertaklngs 971 1,0^^
LZ lntanglble assets 7,ZB^ 7,SLS
L^ lnvestment property Z,91^ Z,SLS
LS 1anglble assets 7,BS^ 7,L^B
Current tax assets SZ 11S
Z0 Oelerred tax assets ^^0 S0S
LS Other assets L1,LS0 LS,B7L
1otal assets L,7Z9,ZS1 L,^Z1,9BB

LlAElLl1lLB
L7 Oue to credlt lnstltutlons and central banks SS^,S^9 ^7S,ZSZ
1S 1radlng portlollo llabllltles LZS,SL^ L1L,0^L
17 Llabllltles held lor sale BBB
LB Oeposlts 70L,9^Z SZ1,1B^
19 lssued mortgage bonds ^B^,L17 ^ZB,S7S
L0 Oeposlts under pooled schemes and unltllnked lnvestment contracts ^S,9BZ ^L,LB7
L9 Llabllltles under lnsurance contracts L1S,79Z L1L,ZLB
Other lssued bonds L9Z,7ZS LS1,099
Current tax llabllltles S17 SL1
Z0 Oelerred tax llabllltles 1,BB9 1,SB1
Z1 Other llabllltles ^7,199 ^7,BBL
ZL Bubordlnated debt ^B,9S1 ^Z,BZ7
1otal llabllltles L,S^^,1B9 L,ZS7,B99

BHAPLHOLOLPB' LOl1/
Bhare capltal S,9BB S,ZBZ
lorelgn currency translatlon reserve 9 1L
lroposed dlvldends S,^1S S,ZBZ
lrollt brought lorward BL,71Z S1,LBB
Bhareholders ol the larent Company 9S,1LS 7^,0^L
Mlnorlty lnterests ^S ^7
1otal shareholders' equlty 9S,17L 7^,0B9
1otal llabllltles and equlty L,7Z9,ZS1 L,^Z1,9BB
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[OKr mJ
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lorelgn
currency lrollt
Bhare
capltal
translatlon
reserve
lroposed
dlvldends
brought
lorward 1otal
Mlnorlty
lnterests 1otal
Bhareholders' equlty at January 1, L00S S,ZBZ 1L S,ZBZ S1,709 7^,^SZ ^7 7^,S10
Adustment ol accountlng pollcles lor
unltllnked lnsurance contracts ^L1 ^L1 ^L1
Adusted shareholders' equlty
at January 1, L00S S,ZBZ 1L S,ZBZ S1,LBB 7^,0^L ^7 7^,0B9
1ranslatlon ol lorelgn unlts 171 171 171
lorelgn unlt hedges 1S0 1S0 1S0
1ax on entrles on shareholders' equlty 1B 1B 1B
Net galns not recognlsed
ln the lncome statement L1 1B Z Z
Net prollt lor the year 1Z,SS7 1Z,SS7 1L 1Z,S^S
1otal lncome L1 1Z,SZ9 1Z,SS0 1L 1Z,S^B
Olvldends pald S,ZBZ 1L9 S,LS^ S,LS^
lroposed dlvldends S,^1S S,^1S
lncrease ln share capltal S0S 1^,0SS 1^,S71 11 1^,SBL
Lxpenses lor lncrease ln share capltal 1ZL 1ZL 1ZL
Acqulsltlon ol own shares 19,9LS 19,9LS 19,9LS
Bale ol own shares 19,001 19,001 19,001
Bharebased payment 1S^ 1S^ 1S^
Bhareholders' equlty at Oecember Z1, L00S S,9BB 9 S,^1S BL,71Z 9S,1LS ^S 9S,17L

Bhareholders' equlty at January 1, L00S S,7LZ ZL S,010 SS,00S SS,70S LS7 SS,97Z
Adustment ol accountlng pollcles lor
unltllnked lnsurance contracts LBZ LBZ LBZ
at January 1, L00S S,7LZ ZL S,010 S^,7LL SS,^LZ LS7 SS,S90
1ranslatlon ol lorelgn unlts 70S 70S 70S
lorelgn unlt hedges SBS SBS SBS
1ax on entrles on shareholders' equlty 9^ 9^ 9^
ln the lncome statement L0 9^ 7^ 7^
Net prollt lor the year 1L,SB1 1L,SB1 ^ 1L,SBS
1otal lncome L0 1L,SB7 1L,S07 ^ 1L,S11
Capltal reductlon Z^0 Z^0
Olvldends pald S,010 B1 ^,9L9 ^,9L9
lroposed dlvldends S,ZBZ S,ZBZ
Acqulsltlon ol own shares 1S,B97 1S,B97 1S,B97
Bale ol own shares 1S,S17 1S,S17 1S,S17
Bharebased payment 10Z 10Z 10Z
Lmployee shares 11B 11B 11B
Adustment ol mlnorlty lnterests LL^ LL^
Bhareholders' equlty at Oecember Z1, L00S S,ZBZ 1L S,ZBZ S1,LBB 7^,0^L ^7 7^,0B9

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Average number ol shares outstandlng SZ1,^^S,^B^ SL7,S7Z,90S
Number ol dllutlve shares lssued lor sharebased payment 1,LSL,B77 SSB,SL1
Average number ol shares outstandlng, dlluted SZL,70B,ZS1 SLB,LZL,^L7
Net prollt lor the year per share, OKr L1.S L0.L
Olluted net prollt lor the year per share, OKr L1.^ L0.L
1he share capltal ls made up ol shares ol a nomlnal value ol OKr10 each. All shares carry the same rlghts, there ls thus only one class ol
shares.
(012)*'+,'/-"*)/'+0%/%"34$35'
lssued shares at January 1 SZB,Z0^,L7S S7L,LSS,7SL
lncrease ln share capltal S0,S00,000
Euyback programme, precedlng year ZZ,9S1,^7S
lssued shares at Oecember Z1 S9B,B0^,L7S SZB,Z0^,L7S
Group's holdlng ol own shares 1^,S17,^77 11,S99,^10
Bhares outstandlng at Oecember Z1 SB^,LBS,799 SLS,70^,BSS
6+&4$35'+,'+73'/-"*)/' Number Number Value Value
L00S L00S L00S L00S
1radlng portlollo B,0^Z,SS1 S,LSZ,^1^ L,17^ 1,ZBB
lnvestment on behall ol customers S,^7Z,B1S S,Z^S,99S 1,SL^ 1,1B7
1otal 1^,S17,^77 11,S99,^10 Z,79B L,S7S
lnvestment
1radlng on behall 1otal 1otal
portlollo ol customers L00S L00S
Holdlng at January 1 1,ZBB 1,1B7 L,S7S 1,7SZ
Acqulsltlon ol own shares, excl. buyback programme 19,S0B ^1B 19,9LS 1S,B97
Bale ol own shares 1B,B^L 1S9 19,001 1S,S17
Value adustment 1L0 17B L9B SZL
Holdlng at Oecember Z1 L,17^ 1,SL^ Z,79B L,S7S
4*15)*2 !'+*"(,&'-*",'./$01'
[OKr mJ L00S L00S
8+&9)3:.'
Bhareholders' equlty 9S,17L 7^,0B9
Pevaluatlon ol domlclle property 1,Z^L 990
lenslon obllgatlons at lalr value Z^ SZ^
1ax ellect B 1^1
Mlnorlty lnterests Z,001 L,99L
Bhareholders' equlty accordlng to the rules ol the Oanlsh lBA 99,SS7 77,S7B
Adustment ol accountlng pollcles L00S, reversal ^L1
lntanglble assets ol banklng buslness 7,S0^ 7,7^0
Oelerred tax assets S17 S7^
Oelerred tax on lntanglble assets 1S7
Pevaluatlon ol real property 9BB SS^
Core [tler 1J capltal, less statutory deductlons BS,199 SL,7ZB
Hybrld core capltal 11,^19 S,Z7S
Core [tler 1J capltal, lncludlng hybrld core capltal, less statutory deductlons 9S,S1B S9,11^
Bubordlnated debt, excludlng hybrld core capltal Z^,707 ZS,9SZ
Btatutory deductlon lor lnsurance subsldlarles ^,L97 B,LS^
Other statutory deductlons Z7 Z7
Capltal base, less statutory deductlons 1L7,979 97,^^0
Plskwelghted ltems
not lncluded ln tradlng portlollo 1,0^7,ZSZ BBL,LLL
wlth market rlsk ln tradlng portlollo 71,SZ7 S1,9^1
1otal rlskwelghted ltems 1,11B,990 9^^,1SZ
Core [tler 1J capltal ratlo, % 7.S1 S.SS
Core [tler 1J capltal ratlo, lncludlng hybrld core capltal, % B.SZ 7.ZL
Bolvency ratlo, % 11.^^ 10.ZL
Bolvency lor L00S ls calculated ln accordance wlth the rules ol the Oanlsh lBA ln lorce at that tlme.
4*(3'62$7'()*)&%&")'!'+*"(,&'-*",'./$01'
[OKr mJ L00S L00S
!"/-',&+7',*+1'+#)*"%$+3/'
lrollt belore tax 1B,^97 17,S0S
Adustment lor nonllquld ltems ln the lncome statement
Adustment ol lncome lrom assoclated undertaklngs ZB9 Z^7
Amortlsatlon and lmpalrment ol lntanglble assets B1Z S^0
Oepreclatlon and lmpalrment ol tanglble assets 1,Z^0 1,ZZ9
Credlt loss expenses ^9S 1,09S
1ax pald ^,7BZ S,170
Other noncash ltems 1,SB9 ^,^BL
1otal 1S,S71 B,^90
Cash llow lrom operatlng capltal
Cash ln hand and demand deposlts wlth central banks B1,SZ9 109,SLS
1radlng portlollo L1,9S1 LL,S71
Other llnanclal lnstruments at lalr value L,Z7^ L,79Z
Assets held lor sale 1,79S L0S
Eank loans and advances LL^,LLZ 1SZ,0BL
Mortgage loans ZZ,^9L ^S,ZL7
Oeposlts 71,7S9 B7,B^0
Llabllltles held lor sale BBB
lssued mortgage bonds ^S,S^L S,L7S
Assets/llabllltles under lnsurance contracts L,^9^ ^,^SL
Other assets/llabllltles ^S,ZSS SB,1L1
Cash llow lrom operatlons 19,917 ^S,^09
!"/-',&+7',*+1'$39)/%$35'":%$9$%$)/'
Acqulsltlon ol subsldlary undertaklngs and other buslness unlts S9 10,9S^
Bale ol subsldlary undertaklngs and other buslness unlts 1S7 S^S
Acqulsltlon ol own shares 19,9LS 1S,B97
Bale ol own shares 19,1SS 1S,BZB
Acqulsltlon ol lntanglble assets ^71 ^S9
Acqulsltlon ol tanglble assets L,LZ^ L,7ZB
Bale ol tanglble assets S0S 1,LSB
Cash llow lrom lnvestlng actlvltles L,BSZ 1L,^17
!"/-',&+7',*+1',$3"3:$35'":%$9$%$)/'
lncrease ln subordlnated debt and hybrld core capltal B,SZ^ 11,0BS
Pepayment ol subordlnated debt and hybrld core capltal 1,B97 L,7Z^
Olvldends S,LS^ ^,9L9
lncrease ln share capltal 1^,SZ9
Change ln mlnorlty lnterests 1 LL0
Cash llow lrom llnanclng actlvltles 1^,9L1 Z,S^Z
Cash and cash equlvalents, beglnnlng ol year L7L,^S9 LZ^,BZ0
Change ln cash and cash equlvalents 7,BS9 Z7,SZ9
Cash and cash equlvalents, end ol year LS^,S10 L7L,^S9
Cash and cash equlvalents, end ol year
Cash ln hand and demand deposlts wlth central banks 1L,Z19 1Z,BB1
Oeposlts wlth credlt lnstltutlons and central banks wlth terms shorter than Z months LSL,L91 LSB,SBB
1otal LS^,S10 L7L,^S9
8$)&('!'+*"(,&'-*",'./$01'
!
Note [OKr mJ
!
1 ;0/$3)//'/)51)3%"%$+3'
1he Group!s operatlons are conducted by a number ol buslness areas and resource and support lunctlons. Note 1 shows the struc
ture ol the buslness areas on whlch the Group!s lnternal llnanclal reportlng and accountlng procedures are based ln accordance wlth
the prlmary segment reportlng lormat requlrements ol lAB 1^.

;"3<$35' =:%$9$%$)/ lncludes all the Group!s banklng actlvltles. ln Oenmark, the Group operates under the brand names Oanske Eank
and EG Eank. Outslde Oenmark, banklng actlvltles are organlsed ln country dlvlslons that are each responslble lor thelr own markets.
1hese dlvlslons conduct buslness under a number ol brand names, lncludlng lokus Eank ln Norway, stgta Lnskllda Eank and
lrovlnsbankerne ln Bweden, Northern Eank ln Northern lreland and Natlonal lrlsh Eank ln the Pepubllc ol lreland. Other banklng actlvl
tles lnclude Nordanla Leaslng, a leaslng provlder ol operatlng equlpment to buslnesses, and other unlts.

>+*%5"5)' ?$3"3:) encompasses the Oanske Eank Group!s mortgage llnance and realestate agency buslness ln Oenmark. 1he dlvl
slon markets lts llnanclng solutlons through Pealkredlt Oanmark, Oanske Eank, EG Eank and "home#. Pealestate agency buslness ls
carrled out through "home# .

@"3/<)' >"*<)%/ ls responslble lor the Group!s actlvltles ln the llnanclal markets. 1radlng actlvltles lnclude tradlng ln llxedlncome
products, lorelgn exchange, equltles and lnterestbearlng securltles, provldlng the largest corporate customers and lnstltutlonal cll
ents wlth llnanclal products and advlsory servlces on mergers and acqulsltlons, and asslstlng customers ln connectlon wlth thelr ls
sue ol equlty and debt on the lnternatlonal llnanclal markets. lroprletary tradlng encompasses the Eank!s shortterm lnvestments.
1he lnvestment portlollo covers the Eank!s strateglc llxedlncome, lorelgn exchange, and equlty portlollos. lnstltutlonal banklng ln
cludes lacllltles wlth lnternatlonal llnanclal lnstltutlons outslde the Nordlc reglon. lnstltutlonal lacllltles wlth Nordlc llnanclal lnstltu
tlons lorm part ol the Group!s banklng actlvltles.

@"3/<)' !"#$%"& ls responslble lor developlng wealth management servlces to the retall banks and manages the lunds ol retall cus
tomers and lnstltutlonal lnvestors and the lunds ol Oanlca lenslon, Oanske lund, !"#$%&'(%)* [pooled lnvestmentJ and +#%,&'(%)*. 1he
dlvlslon also provldes advlsory servlces to Oanske lnvest and EG lnvest. 1hrough Oanske Eank lnternatlonal ln Luxembourg, Oanske
Capltal provldes wealth management servlces to cllents outslde the Group!s home markets. Oanske Capltal ls also responslble lor de
veloplng asset management products sold through the retall banks and dlrectly to companles, lnstltutlonal lnvestors and external dls
trlbutors.

@"3$:"' !s actlvltles ln the llle lnsurance and penslons market. Marketed under the
name ol

Oanlca lenslon, the unlt targets both personal and corporate customers. lroducts are marketed through a range ol
dlstrlbutlon

channels wlthln the Group, prlmarlly Eanklng Actlvltles! outlets and Oanlca lenslon!s lnsurance brokers and advlsers.

A%-)* !s real property actlvltles, unallocated cost ol capltal and expenses lor Group support

lurthermore, Other areas lncludes the Group!s capltal centre and the dlllerence between allocated capltal and shareholders! equlty.
at a rate ol S.S% ol lts average rlskwelghted ltems, calculated ln accordance wlth
bect to speclal statutory capltal adequacy rules.
! equlty allocated to the lnsurance buslness equals the statutory mlnlmum requlrement plus S.S%

A calculated lncome equal to the rlsklree return on lts allocated capltal ls apportloned to each buslness area. 1hls lncome ls calcu
lated on the basls ol the shortterm money market rate and allocated lrom Other .

lntragroup lncome ls allocated on an arm!s length basls. Burplus llquldlty ls settled prlmarlly on the basls ol shortterm money market
rates, whereas other lntragroup accounts are settled at market prlces.

lnterest ls allocated on a gross basls, whlch means that lnterest lncome and lnterest expense are shown separately ln note 1. lntra
group lees, commlsslons and value adustments are settled at market prlces or allocated to the buslness areas at an agreed ratlo.

Lxpenses are allocated to the buslness areas at market prlce level. Other areas supplles servlces to buslness areas, and transactlons

Assets and llabllltles used to malntaln the operatlng actlvltles ol a buslness area are presented ln the accounts ol that buslness area.
Goodwlll carrled as an asset ol the Group ls allocated to the buslness areas that recognlse the lncome lrom the acqulsltlons made.
1he llnanclng ol goodwlll ls lncluded ln the Group's capltal centre under Others.

lntragroup lncome comprlses lnterest lncome, lee lncome, value adustments and other ordlnary lntragroup lncome and appears on
a separate llne or ln a slngle column ln the dlsclosure ol buslness segments and geographlcal segments.
, whlch has 199 olllces throughout the country
' "*)"/
lunctlons. Moreover, the area covers the lmlnatlon ol returns on own shares.
compasses the Group
Capltal ls allocated to the lndlvldual buslness area
the capltal adequacy rules ol the Oanlsh lBA. lnsurance companles are su
Consequently, the shareholders
ol the dlllerence between Oanlca's equlty and the mlnlmum requlrement.
areas
are settled at unlt prlces calculated on the basls ol consumptlon and actlvlty ln accordance wlth the rules on transler prlclng.
el
en
B)3/$+3 encompasses all the Oanske Eank Group
8$)&('!'+*"(,&'-*",'./$01'
!
Note [OKr mJ
!
1 ;0/$3)//'/)51)3%/'CDDE' !
[cont!dJ Eanklng Mortgage Oanske Oanske Oanlca Peclassl

Actlvltles llnance Markets Capltal lenslon Others 1otal llcatlon Hlghllghts
!
lnterest lncome Z9,L11 L^,77B 71,9S1 S^ S,70L Z^,99L 10S,7L^ 77,SSZ L9,0S1
lnterest expense LL,^Z7 L1,1S7 71,ZS1 SS SB Z^,Z07 B0,SLS 71,0SS 9,SS0
Net lnterest lncome 1S,77^ Z,SL1 S10 B S,770 SBS LS,09B S,S97 19,S01
Net lee lncome S,7^Z LZ^ ^91 1,001 707 L09 7,0BS L1S 7,Z01
Net tradlng lncome 1,109 L1S ^,10L L1 1,777 ^SS S,7SB 1L7 S,SZ1
Other lncome 1,BL7 179 L L,7^B SSS S,^1L L,71^ L,S9B
Net premlums 1S,1BL 1S,1BL 1S,1BL
Net lnsurance benellts LZ,S^1 LZ,S^1 LZ,S^1
lncome lrom equlty
lnvestments Z ZZ0 ^ 1B0 Z7 S^S S^S
Net lncome lrom
lnsurance buslness 1,ZSS 1,ZSS
1otal lncome LS,^SS Z,7B1 S,SZS 1,0LS L,Z09 SS7 ZB,^^0 9S^ Z7,^BS
Operatlng expenses 1S,900 1,17S 1,9S0 ^SS 9S^ 7 L0,^Z9 9S^ 19,^BS
Credlt loss expenses ZZS 10S S^ 1 ^9S ^9S
lrollt belore tax 10,B9L L,710 Z,SZ9 SS0 1,ZSS SS9 1B,^97 1B,^97

Loans and advances,
excludlng reverse
transactlons 7L7,0S7 S0Z,019 ZB,71^ 1SS S,S9^ 1,ZSL,ZS1 1,ZSL,ZS1
Other assets L97,90L S0,LS^ Z,09S,S70 1,LBS LZS,1S7 L,Z1S,LS9 1,Z77,010 1,Z77,010
1otal assets 1,0L^,9S9 SSZ,L7Z Z,1ZS,ZB^ 1,^^1 LZS,1S7 L,ZL1,BSZ L,7Z9,ZS1 L,7Z9,ZS1
Oeposlts, excludlng
repo deposlts ^S9,SZ0 1Z1,199 1L^ 1,9S^ S9B,B99 S9B,B99
Other llabllltles S1S,LZ^ S^^,S1S L,99S,7S^ 1,LBL LLB,B^7 L,Z^L,^^L L,0^S,L90 L,0^S,L90
Allocated capltal Z9,19S 1B,SSB 7,^Z1 ZS 7,Z10 LL,S^Z 9S,17L 9S,17L
1otal llabllltles and equlty 1,0L^,9S9 SSZ,L7Z Z,1ZS,ZB^ 1,^^1 LZS,1S7 L,ZL1,BSZ L,7Z9,ZS1 L,7Z9,ZS1

lntragroup lncome 7,BL^ 1,0S0 7,S^^ ^1S 1,S70 1B,S1Z
Capltal expendlture 19L 9 SB L,1Z9 L,Z9B L,Z9B
Noncash operatlng ltems BB^ 1,L0B Z 19 ^S1 1,L00 L,BS7 L,BS7
Amortlsatlon
and depreclatlon 1,7^L 7 S L SB7 L,Z^^ L,Z^^
lmpalrment charges 1L 1L 1L
Peversal ol lmpalrment
charges L0^ L0^ L0^
lrollt belore tax as % ol
allocated capltal [avg.J L7.B 1^.S ^9.0 1B.S 19.^ 19.^
Cost/lncome ratlo, % S0.1 Z1.1 ZS.L ^S.^ ^1.Z SZ.L SL.0
Plskwelghted ltems [avg.J S0Z,00Z LB7,0^0 11^,ZL9 S^^ B,Z79 10,S0Z 1,00L,S9L 1,00L,S9L
lulltlmeequlvalent
stall [avg.J 11,71S 7S9 7ZL L^L B7S ^,9L0 19,L^^ 19,L^^
! !
ln the llnanclal hlghllghts ol the Group, the prollt contrlbuted by Oanske Markets ls recognlsed as net tradlng lncome, whereas the
prollt contrlbuted by Oanlca lenslon ls recognlsed as net lncome lrom lnsurance buslness. 1he reclasslllcatlon column aggregates
the prollt contrlbutlons.
!
!
8$)&( !'+*"(,&'-*",'./$01'
Note [OKr mJ
1 ;0/$3)//'/)51)3%/'CDDF'
[cont!dJ Eanklng Mortgage Oanske Oanske Oanlca Peclassl
Actlvltles llnance Markets Capltal lenslon Others 1otal llcatlon Hlghllghts
lnterest lncome Z0,ZSZ LS,S0S S1,LSZ 1LZ S,SS9 L^,919 BB,90^ S7,BZL Z1,07L
lnterest expense 1S,7BZ LL,0BL ^S,Z07 11S 10B L^,LB^ S0,111 ^S,L0S 1Z,90S
Net lnterest lncome 1^,SB0 Z,^LZ ^,9SS B S,^S1 SZS LB,79Z 11,SL7 17,1SS
Net lee lncome S,Z1S BZ ^^S 9LL S9S ZZ 7,0ZB LS1 7,LB9
Net tradlng lncome 1,007 19S SBS ZS Z,9LS S1L Z,B9S L,^SS S,ZS1
Other lncome 1,^BS 17B 1L 1,SLS S7S Z,77S 1,SL1 L,LSS
Net premlums 1S,LSL 1S,LSL 1S,LSL
Net lnsurance benellts L^,00^ L^,00^ L^,00^
lncome lrom equlty
lnvestments 7SZ 1 11S 1S B9L B9L
Net lncome lrom
lnsurance buslness 1,S^7 1,S^7
1otal lncome LZ,ZBB Z,B79 S,^91 B9Z L,SB1 S90 ZS,S^L 9Z^ Z^,70B
Operatlng expenses 1^,LS^ 1,L^L 1,779 ZB^ 9Z^ SL9 19,1ZL 9Z^ 1B,19B
Credlt loss expenses 971 11B 7 1,09S 1,09S
lrollt belore tax 10,09S L,7SS Z,719 S09 1,S^7 1,119 17,S0S 17,S0S
Loans and advances,
excludlng reverse
transactlons SB9,L01 SS9,S^B ZL,799 1S L,700 1,1BB,9SZ 1,1BB,9SZ
Other assets L19,L0L SS,7BS 1,B9^,L1Z 1,1SL LL7,ZZS 1,1S^,S7^ 1,L^Z,0LS 1,L^Z,0LS
1otal assets B0B,^0Z SLS,^Z^ 1,9L7,01L 1,177 LL7,ZZS 1,1S7,Z7^ L,^Z1,9BB L,^Z1,9BB
Oeposlts, excludlng
repo deposlts ^0S,007 1LB,0Z9 1LS 9 SZZ,1B1 SZZ,1B1
Other llabllltles ZS9,BZ0 S07,B07 1,79L,S10 1,0^1 L1B,9Z^ 1,1SS,^0^ 1,BL^,71B 1,BL^,71B
Allocated capltal ZZ,SSS 17,SL7 S,^SZ 10 B,^0L B,0L1 7^,0B9 7^,0B9
1otal llabllltles and equlty B0B,^0Z SLS,^Z^ 1,9L7,01L 1,177 LL7,ZZS 1,1S7,Z7^ L,^Z1,9BB L,^Z1,9BB
lntragroup lncome S,BBS 1,0S^ S,99S ZLB 1,SS7 1S,9^0
Capltal expendlture B,9B1 ^ B 11 1,^L9 10,^ZZ 10,^ZZ
Noncash operatlng ltems 9S0 ^,B1S 1,SB1 SS SBS BS9 Z,9^S Z,9^S
Amortlsatlon
and depreclatlon 1,SBS 7 L 1 S0S L,10L L,10L
lmpalrment charges 1 Z Z 7 7
Peversal ol lmpalrment charges ZS ZS ZS
lrollt belore tax as % ol
allocated capltal [avg.J Z0.1 1S.S S7.S 19.S LZ.B LZ.B
Cost/lncome ratlo, % S1.0 ZL.0 ZL.^ ^Z.0 ZS.L SZ.7 SL.^
Plskwelghted ltems [avg.J S1S,Z99 L71,1BL 99,^L^ 1^9 S,BZ7 1S,Z9S 909,ZBS 909,ZBS
lulltlmeequlvalent
stall [avg.J 11,LZ9 7BS SL1 L1L BLS ^,9LB 1B,S11 1B,S11
ln the llnanclal hlghllghts ol the Group, the prollt contrlbuted by Oanske Markets ls recognlsed as net tradlng lncome, whereas the
prollt contrlbuted by Oanlca lenslon ls recognlsed as net lncome lrom lnsurance buslness. 1he reclasslllcatlon column aggregates
the prollt contrlbutlons.
8$)&( !'+*"(,&'-*",'./$01'
Note [OKr mJ
1 G)+5*"#-$:"&'/)51)3%"%$+3'
[cont!dJ 1he table below breaks down the actlvltles ol the Group by geographlcal locatlon. lncome lrom external customers lncludes lnterest
lncome, lee lncome, tradlng lncome and other lncome and ls allocated on the basls ol the customer!s country ol resldence, whereas
assets and capltal expendlture are allocated on the basls ol the locatlon ol assets.
Geographlcal segmentatlon ol lncome, assets and capltal expendlture ls shown ln compllance wlth llPB and does not rellect the man
agement structure ol the Group. 1he management belleves that the presentatlon by buslness segment provldes a more lnlormatlve
descrlptlon ol the Group!s buslness actlvltles.
lncome Capltal
external customers Assets expendlture
L00S L00S L00S L00S L00S L00S
Oenmark SS,0^1 S^,ZL7 L,Z09,7BL L,1ZB,179 L,07S 1,B^1
llnland S^7 S17 1L,LLB 11,90^ L
Germany L,B^9 Z,S7S SS,SB9 L^,ZBS 1 1
Luxembourg LZS 1LZ ZB,1S7 Z^,0S0 L
Norway 11,7S7 B,ZBS 1^9,901 11Z,17Z 1BZ ZSL
loland ^L9 ^1B S,1L^ Z,7S7
Pepubllc ol lreland Z,7SS 1,SZ^ 70,97L ^7,7^S LL Z,SBZ
Bweden 11,SSL 9,919 Z7Z,9B0 Z07,07^ 9S 1Z0
K 19,7S7 9,9Z9 ^Z0,0SL ZZ0,Z79 LL ^,^LL
B 7,S11 ^,S0S LS LS
Others ^,B^S L,L90
Lllmlnatlons 707,^^9 S7B,S9^
Group 1LB,S10 10S,7ZZ L,7Z9,ZS1 L,^Z1,9BB L,Z9B 10,^ZZ
!"#$% !&'()%*$&+()*&,-"./&
Note [OKr mJ
L !"#$%&#"'"(#$)&*$&"#$#')*%&+$%&,-."$$
lnterest lnterest Net lnterest Net tradlng
L00S lncome expense lncome lncome 1otal
/%&)&,%)0$1-'#2-0%-($)#$).-'#%("*$,-(#$
Oue lrom/to credlt lnstltutlons and central banks 17,ZZB Z0,0^Z 1L,70S 1B7 1L,B9L
Pepo and reverse transactlons 1Z,S79 S,LSB 7,ZL1 7,ZL1
Eank loans, advances and deposlts Z^,SZS 1L,SB^ LL,0S1 B7S L1,17S
Heldtomaturlty lnvestments 17^ 17^ 17^
Other lssued bonds 10,L17 10,L17 7B0 9,^Z7
Bubordlnated debt L,07S L,07S 1,71L ZS^
Other llnanclal lnstruments ZS0 ZL9 L1 L1
1otal SS,07S S1,S07 ^,SS9 1,^L9 S,99B
/%&)&,%)0$1-'#2-0%-($)#$2)%'$3)04"$
Mortgage loans and lssued mortgage bonds L^,LB7 19,119 S,1SB S^9 ^,S19
1radlng portlollo and lnvestment securltles 10,SSZ 10,SSZ ^,SZ0 1S,19Z
Assets and deposlts under pooled schemes and unltllnked
lnvestment contracts ZS^ ZS^
Assets and llabllltles under lnsurance contracts S,79B S,79B 1,S1L 7,^10
1otal ^0,S^B 19,119 L1,SL9 S,ZL9 LS,BSB
1otal net lnterest and net tradlng lncome 10S,7L^ B0,SLS LS,09B S,7SB ZL,BSS
L00S
/%&)&,%)0$1-'#2-0%-($)#$).-'#%("*$,-(#$
Oue lrom/to credlt lnstltutlons and central banks 10,09S 1B,919 B,BL^ L^B 9,07L
Pepo and reverse transactlons 10,LLB S,0L^ ^,L0^ ^,L0^
Eank loans, advances and deposlts L^,Z99 B,91Z 1S,^BS ^^S 1S,9Z1
Heldtomaturlty lnvestments B^ B^ B^
Other lssued bonds S,0Z0 S,0Z0 L9^ ^,7ZS
Bubordlnated debt L,01L L,01L L,L1B ^,LZ0
Other llnanclal lnstruments L1B ^BL LS^ LS^
1otal ^S,0L^ ^1,ZB0 Z,S^^ 1,7L7 1,917
/%&)&,%)0$1-'#2-0%-($)#$2)%'$3)04"$
Mortgage loans and lssued mortgage bonds LS,09S 1B,7Z1 S,ZSS S,ZSS
1radlng portlollo and lnvestment securltles 1Z,779 1Z,779 L,LL0 1S,999
Assets and deposlts under pooled schemes and unltllnked
lnvestment contracts L^L L^L
Assets and llabllltles under lnsurance contracts S,00S S,00S Z,S^^ B,S^9
1otal ^Z,BB0 1B,7Z1 LS,1^9 S,SLL Z0,771
1otal net lnterest and net tradlng lncome BB,90^ S0,111 LB,79Z Z,B9S ZL,SBB
At the end ol L00S, Net tradlng lncome lncluded dlvldends lrom shares ol OKr1,7^Bm [L00S. OKr1,SLSmJ and exchange rate ad
ustments ol OKr1,LS0m [L00S. OKr1,^^SmJ.
Net tradlng lncome under lnsurance contracts lncluded returns on assets ol OKr1,00Zm [L00S. OKr1S,S19mJ, adustment ol llle
lnsurance provlslons ol OKrS,777m [L00S. OKrS,L9SmJ, adustment ol collectlve bonus potentlal ol OKrL,S97m [L00S.
OKrZ,7L7mJ and tax on penslon returns ol OKrSSSm [L00S. OKrL,9SLmJ.
!"#$%&!&'()%*$&+()*&,-"./&
!
!
Z /""$%&,-."$
llnanclng [establlshment ol loans and guaranteesJ 1,701 1,97S
lnvestment [securltles tradlng and advlsory servlcesJ L,S01 1,B^S
Bervlces [lnsurance and lorelgn exchange tradlngJ 1B0 179
lees generated by actlvltles ^,^BL ^,001
llnanclng [guaranteesJ SB^ SS9
lnvestment [asset management and custody servlcesJ 1,9S0 1,SBZ
Bervlces [payment servlces and cardsJ L,S00 L,90S

lees generated by portlollos S,1Z^ S,1S7
1otal 9,S1S 9,1SB
!
lees generated by actlvltles comprlse lncome lrom the executlon ol oneoll transactlons. lees generated by portlollos comprlse re
currlng lncome lrom the customer portlollo.
!
^ /""$"51"&("($
llnanclng [property valuatlonJ 1^L ^L0
lnvestment [securltles tradlng and advlsory servlcesJ 7^Z S01
Bervlces [relerralsJ Z1 7
lees generated by actlvltles 91S 9LB
llnanclng [guaranteesJ 10S ^L
lnvestment [asset management and custody servlcesJ LLS 19B
Bervlces [payment servlces and cardsJ 1,LB^ 9SL
lees generated by portlollos 1,S1S 1,19L
1otal L,SZ1 L,1L0
!
S 6#7"'$%&,-."$
lalr value adustment ol lnvestment property 191 1LZ
lalr value adustment ol lnvestment property allocated to pollcyholders 97S S90
lrollt on sale ol domlclle and lnvestment property 9^S ^1L
lncome lrom lease assets and lnvestment property L,Z97 L,Z0S
Peversal ol lmpalrment charges lor domlclle property L0^ ZS
Other lncome S9B Z09
1otal S,^1L Z,77S
!
S !"#$$1'".%4.($
Pegular premlums, llle lnsurance B,LB0 B,S9Z
L,^71 L,B7Z
L,SB^ 1,S^L
Blngle premlums, marketbased products 1,S7L 9S9
lremlums, health and accldent lnsurance 1,ZLS 1,LLS
107 7L
Change ln unearned premlums provlslons S7 ZL
1S,1BL 1S,LSL

7 !"#$%&(4')&,"$8"&"2%#($
Eenellts pald 1^,1SZ 1L,BB0
Pelnsurers' share recelved 117 10B
Clalms and bonuses pald 9B9 B71
Change ln outstandlng clalms provlslons L9Z 7L0
Change ln llle lnsurance provlslons 1,9S9 S,1LZ
Change ln provlslons lor unltllnked contracts S,Z^^ ^,S1B
1otal LZ,S^1 L^,00^

Blngle premlums, llle lnsurance
Pegular premlums, marketbased products
Pelnsurance premlums pald
1otal
!"#$% !&'()%*$&+()*&,-"./&
B 9#)22$,-(#($)&*$)*.%&%(#')#%3"$"51"&("($
Btall costs 10,B09 10,ZBZ
Admlnlstratlve expenses 7,LBS S,S^7
1otal 1B,09S 17,0Z0
9#)22$,-(#($
Balarles B,7L9 B,L0B
Bharebased payment 1S^ 10Z
Lmployee shares 11B
lenslons 779 1,0^L
llnanclal servlces employer tax, etc. 1,1Z7 91L
1otal 10,B09 10,ZBZ
:".4&"')#%-&$-2$#7"$;-)'*$-2$<%'",#-'($=<>'$#7-4()&*?$
All Ouchledersen 1,Z00 1,000
Jorgen Nue Moller 1,LS0 1,000
Llvlnd Koldlng 1,LS0 B7S
Hennlng Chrlstophersen SLS ^S9
leter Holand SLS S00
Nlels Chr. Nlelsen SLS S00
Bten Bchelbye SLS S00
Maken Bchultz SLS Z7S
Claus Vastrup SLS S00
Elrglt AagaardBvendsen SLS Z7S
Helle Erondum ZLS LS0
Charlotte Hollmann [lrom March 1^, L00SJ L71
ler Alllng 1oubro [lrom March 1^, L00SJ L71
Verner sbeck ZLS LS0
Bolvelg Orteby ZLS LS0
1ove Ablldgaard [untll March 1^, L00SJ B1 LS0
Pene Holm [lrom July 1, L00S untll March 1^, L00SJ B1 1LS
leter Mlchaelsen [untll March 1^, L00SJ B1 Z7S
lla Eo ledersen [untll March 1^, L00SJ B1 LS0
Nlels Lllschou Holm [untll Oecember B, L00SJ Z7S
Eolette Holmgaard [untll June Z0, L00SJ 1LS
1otal remuneratlon 9,Z1S B,Z^^
lncludlng remuneratlon lor commlttee work L,9LS L,B^^
!"#$% !&'()%*$&+()*&,-"./&
Note [OKr mJ
B :".4&"')#%-&$-2$#7"$@5",4#%3"$;-)'*$
[cont'dJ leter Jakob Bven 1onny 1hlerry ler
L00S Btraarup Erogaard Lystbak Andersen Bkovhus
llxed salary S.S Z.S 1.L 0.9 0.9
Cash bonus 0.9 0.^ 0.L 0.L 0.1
lenslon 1.Z L.^ 0.7 0.L 0.L
Bharebased payment ^.S 1.9 0.B 0.B 0.S
1otal 1L.Z B.Z L.9 L.1 1.B
1he amounts recognlsed as sharebased payment wlll be translated lnto share optlons and condltlonal shares ln the llrst quarter ol
L007.
Bven Lystbak, 1onny 1hlerry Andersen and ler Bkovhus olned the Lxecutlve Eoard on Beptember 1, L00S. 1helr salarles, bonuses,
penslons and sharebased payments relate to the perlod lrom Beptember 1, L00S, to Oecember Z1, L00S.
:".4&"')#%-&$-2$#7"$@5",4#%3"$;-)'*$
leter Jakob
L00S Btraarup Erogaard
llxed salary S.1 Z.S
Cash bonus 0.B 0.^
lenslon 1.S L.1
Bharebased payment Z.B 1.B
1otal 11.L 7.B
A"&(%-&$)&*$#"'.%&)#%-&$8"&"2%#($
leter Jakob Bven 1onny 1hlerry ler
Btraarup Erogaard Lystbak Andersen Bkovhus
Oellned contrlbutlon Oellned contrlbutlon
1ype ol penslon plan Oellned benellt Oellned benellt Oellned benellt through penslon lund through penslon lund
Age at whlch the Eoard member
ls entltled to retlre S0 S0 S0 S0 S0
Group contrlbutes Group contrlbutes
Annual benellt or contrlbutlon OKrL.Sm S0% ol salary S0% ol salary L0% ol salary L0% ol salary
Notlce ol termlnatlon by the
Group
1L months wlth
llle penslon
1L months wlth
llle penslon
1L months wlth
llle penslon 1L months 1L months
Notlce ol termlnatlon by the
Eoard member 1L months S months Z months Z months Z months
lenslon obllgatlon, end ol L00S ^0 ZZ L0
lenslon obllgatlon, end ol L00S ZL L7 1S
lenslon obllgatlons to leter Btraarup, Jakob Erogaard and Bven Lystbak are covered by the !Oanske Eank A/B" penslonslond lor
medlemmer al dlrektlonen, deres enker og elterladte born# penslon lund. Oanske Eank A/B ls llable lor any shortlall. 1he obllgatlons
are determlned on the basls ol actuarlal calculatlons and a number ol assumptlons [see note ZZJ. 1herelore, changes ln penslon obll
gatlons may not reasonably be added to the annual remuneratlon.
On retlrement at a later date, the penslon obllgatlon to leter Btraarup ls lncreased by an amount correspondlng to the penslon benellt
not pald out. 1he obllgatlon ls adusted on an ongolng basls uslng the same rate ol adustment as that applled to the penslon plans ln
payment to retlred members ol the Lxecutlve Eoard.
!"#$%&!&'()%*$&+()*&,-"./&
!
Note [OKr mJ
!
B$ 97)'"7-0*%&+($
[cont"dJ 1he total number ol Oanske Eank shares, excludlng optlons and rlghts to buy condltlonal shares, held by the Eoard ol Olrectors and
the Lxecutlve Eoard at the end ol L00S was S ,B 7 [end ol L00S. ^^,9Z0J.
$ $
97)'"B8)("*$1)C."&#$
1he Group ollers senlor managers and selected employees lncentlve programmes that conslst ol share optlons and condltlonal
shares. lncentlve payments rellect lndlvldual perlormance and also depend on llnanclal results and other measures ol value creatlon.

lssued optlons carry a rlght to buy Oanske Eank shares that can be exerclsed between three and seven years alter they are allotted
provlded that the employee has not reslgned lrom the Group. 1he strlke prlce ol the optlons ls computed as the average prlce ol Oan
ske Eank shares lor L0 stock exchange days alter the release ol the Annual Peport plus 10%.

Plghts to buy Oanske Eank shares under the condltlonal share programme are allotted as a portlon ol the annual bonus earned. 1he
shares become avallable alter three years provlded that the employee has not reslgned lrom the Group.

1he lalr value ol the share optlons at the tlme ol allotment ls calculated accordlng to a dlvldendadusted Elack 8 Bcholes lormula
based on the lollowlng assumptlons at Oecember Z1, L00S. Bhare prlce LS0.0^ [L00S. LL1.1BJ. Olvldend payout ratlo Z.L%
[L00S.Z.7%J. Pate ol lnterest ^.1^.Z% [L00S. L.9Z.L%J, correspondlng to the swap rate. Volatlllty 1B% [L00S. 1S%J. Average tlme
ol exerclse 0.SZ^.LS years [L00S. 1.1Z^.LS yearsJ. 1he volatlllty ls estlmated on the basls ol hlstorlcal volatlllty.

1he lalr value ol the condltlonal shares at the tlme ol allotment ls calculated as the share prlce less the payments made by the em
ployees.

lntrlnslc value ls recognlsed ln the year the share optlons and rlghts to condltlonal shares were earned, whlle tlme value ls accrued
over the remalnlng servlce perlod, correspondlng to the vestlng perlod ol three years. Bhareholders" equlty wlll lncrease correspond
lngly as the obllgatlon ls met by dellverlng Oanske Eank shares.

!
L S
!"#$% !&'()%*$&+()*&,-"./&
Note $ $ $ $ $ $ $
B 97)'"B8)("*$1)C."&#$DEEF$
[cont"dJ 97)'"$-1#%-&($ Number lalr value [lVJ
Lxecutlve Benlor Other Lxerclse At lssue Lnd ol year
Eoard stall stall 1otal prlce [OKrJ [OKr mJ [OKr mJ
Allotted ln L001L00Z, beg. ZZ^,S0L 1,Z7S,S^S Z7S,9B7 L,0B7,LZ^ 11B.S1SL.B9 S^.1 L^^.0
Lxerclsed ^S,000 9^S,0SB ZZS,Z1B 1,ZL7,Z7S
lorlelted
Other changes 1S,000 ZL,B00 17Z,^ZS 1SS,SZS
Allotted ln L001L00Z, end Z0S,S0L Z9S,7B7 L1^,10S 91S,^9^ 11B.S1SL.B9 LS.B 10Z.9
Allotted ln L00^, beg. 190,SS7 1,S19,L7Z L^0,^^Z 1,9S0,ZBZ 1S7.L ZS.1 17S.7
Lxerclsed Z1,SSS Z1,SSS
lorlelted LZ,ZZZ LZ,ZZZ
Other changes 1S9,0LB 1S9,0LB 1^L,ZS1 1^L,ZS1
Allotted ln L00^, end Z^9,S9S 1,ZZS,91L ZS1,1ZB L,0Z7,7^S 1S7.L ZS.7 1B^.S
Allotted ln L00S, beg. L^1,BZS L,ZSS,90S SL,^S9 L,SS0,L00 190.L ^0.^ 17Z.^
Lxerclsed
lorlelted ZL,7B7 ZL,7B7
Other changes L1B,0ZZ L1B,0ZZ L7,^07 L7,^07
Allotted ln L00S, end ^S9,BS9 L,10S,0BS 79,BSS L,S^^,BL0 190.L ^0.Z 17Z.0
Allotted ln L00S 170,^00 1,BSB,100 L,0LB,S00 L^^.S ZZ.S 7B.^
Lxerclsed
lorlelted L^,^00 L^,^00
Other changes 170,Z00 BL,700 B7,S00
Allotted ln L00S, end Z^0,700 1,7S1,000 L,091,700 L^^.S Z^.S B0.B
G-0*%&+($-2$#7"$@5",4#%3"$;-)'*H$"&*$-2$DEEF$
/ear ol allotment L001L00Z L00^ L00S L00S
[OKr mJ Number lV Number lV Number lV Number lV
leter Btraarup L0S,^1L LZ.0 11S,SS7 10.S 1^S,7S^ 9.S 11Z,S00 ^.^
Jakob Erogaard B^,190 9.0 7^,000 S.7 9S,0BL S.L SS,B00 L.L
Bven Lystbak B0,1Z9 7.Z 9S,0BL S.L 71,900 L.B
1onny 1hlerry Andersen 1S,000 L.0 Z0,L7B L.7 S7,Z77 Z.B SS,B00 L.L
ler Bkovhus ^B,S11 ^.^ SS,S7^ ^.Z ^1,S00 1.S
ln L00S, 1,ZS9,0^L share optlons were exerclsed at an average prlce ol OKrLL9.B.
!"#$% !&'()%*$&+()*&,-"./&
Note $ $ $ $ $ $ $
B 97)'"B8)("*$1)C."&#$DEEF$
[cont"dJ I-&*%#%-&)0$(7)'"($$ Number lalr value [lVJ
Lxecutlve Benlor Other At lssue Lnd ol year
Eoard stall stall 1otal [OKr mJ [OKr mJ
Allotted ln L00Z, beg. 9,70S SS,^^7 L7S,997 ZSL,1S0 Z7.9 BB.1
Lxerclsed 9,70S SS,^^7 L7S,0^7 ZS1,L00
lorlelted 9S0 9S0
Other changes
Allotted ln L00Z, end
Allotted ln L00^, beg. S,Z77 ^B,BS^ L1B,S^0 L7L,771 Z9.0 SB.L
Lxerclsed Z,^79 Z,^79
lorlelted 1,^S0 L,^L9 Z,B79
Other changes ^,S91 Z,^1B B,109
Allotted ln L00^, end 10,0SB S0,BLL L0^,SLZ LSS,^1Z Z7.9 SS.^
Allotted ln L00S, beg. S,SLZ S9,S7B Z9^,B^S ^S0,0^7 79.S 11S.0
Lxerclsed ^,SL^ ^,SL^
lorlelted L,S^B 10,Z^1 1L,9B9
Other changes S,77L ^,9BL 10,B1Z S9
Allotted ln L00S, end 11,Z9S S1,91L ZS9,1SB ^^L,^7S 7S.S 110.S
Allotted ln L00S 1L,77B 1^^,0L1 ^ZS,01^ S91,B1Z 1Z1.S 1^B.0
Lxerclsed Z,S71 Z,S71
lorlelted 1,7LS 11,B10 1Z,SZS
Other changes 1L,77^ 1L,^L0 ZB9 7^Z
Allotted ln L00S, end LS,SSL 1L9,B7S ^L0,0LL S7S,^S0 1L7.9 1^Z.9
G-0*%&+($-2$#7"$@5",4#%3"$;-)'*H$"&*$-2$DEEF$
/ear ol allotment L00^ L00S L00S
[OKr mJ Number lV Number lV Number lV
leter Btraarup Z,0SB 0.B Z,S0S 0.9 B,SL0 L.1
Jakob Erogaard L,Z19 0.S L,11B 0.S ^,LSB 1.1
Bven Lystbak L,0^0 0.S L,11B 0.S S,Z9Z 1.Z
1onny 1hlerry Andersen 1,LZ7 0.Z L,19L 0.S ^,LSB 1.1
ler Bkovhus 1,^1^ 0.^ 1,^SL 0.^ Z,1LZ 0.B
ln L00S, ZSL,77^ rlghts to condltlonal shares were exerclsed at an average prlce ol OKrLLZ.L.
!"#$%&!&'()%*$&+()*&,-"./&
!
Note $ $ $ $ $ $ $
B 97)'"B8)("*$1)C."&#$DEEJ$
[cont"dJ 97)'"$-1#%-&($$ Number lalr value [lVJ
Lxecutlve Benlor Other Lxerclse At lssue Lnd ol year
Eoard Btall stall 1otal prlce [OKrJ [OKr mJ [OKr mJ
!
Allotted ln L001L00L, beg. 19S,00L 1,LBL,^B1 L0^,0BL 1,SBL,SSS 1^0.B1SL.9 SB.1 119.7
Lxerclsed 7B7,S^1 Z0,000 B17,S^1
lorlelted LS,190 LS,190
Other changes 71,S9S 71,S9S
Allotted ln L001L00L, end 19S,00L ^LZ,L^S L19,SB7 BZB,BZ^ 1^0.B1SL.9 L9.0 S9.^
Allotted ln L00Z, beg. 1ZB,S00 1,0B0,S00 SS,B00 1,LBS,000 11B.S LS.9 1L0.1
Lxerclsed 1S,000 L1,S00 Z7,S00
lorlelted
Other changes 11L,L00 11L,L00
Allotted ln L00Z, end 1ZB,S00 9SL,^00 1S7,^00 1,L^B,^00 11B.S LS.L 11S.S
Allotted ln L00^, beg. 190,SS7 1,7^S,ZBZ 1S7,91S L,09^,9SS 1S7.L Z7.7 1L0.0
Lxerclsed S1,111 1Z,ZZZ S^,^^^
lorlelted B0,1Z9 B0,1Z9
Other changes 17S,999 17S,999
Allotted ln L00^, end 190,SS7 1,S19,L7Z L^0,^^Z 1,9S0,ZBZ 1S7.L ZS.1 111.7
Allotted ln L00S L^1,BZS L,^LB,0ZS L,SS9,B7L 190.L ^0.7 9S.L
Lxerclsed 19,S7L 19,S7L
lorlelted
Other changes SL,^S9 SL,^S9
Allotted ln L00S, end L^1,BZS L,ZSS,90S SL,^S9 L,SS0,L00 190.L ^0.^ 9^.S
!
!
!
G-0*%&+($-2$#7"$@5",4#%3"$;-)'*H$"&*$-2$DEEJ$
/ear ol allotment L001L00L L00Z L00^ L00S
[OKr mJ Number lV Number lV Number lV Number lV
leter Btraarup 1LZ,B1L B.7 B1,S00 7.S 11S,SS7 S.7 1^S,7S^ S.L
Jakob Erogaard 7L,190 S.1 S7,000 S.Z 7^,000 ^.L 9S,0BL Z.^

ln L00S, 9Z9,LS7 share optlons were exerclsed at an average prlce ol OKr1BZ.^.
!
!"#$% !&'()%*$&+()*&,-"./
Note $ $ $ $ $ $ $
B 97)'"B8)("*$1)C."&#$DEEJ$
[cont"dJ I-&*%#%-&)0$(7)'"($$ Number lalr value [lVJ
Lxecutlve Benlor Other At lssue Lnd ol year
Eoard Btall stall 1otal [OKr mJ [OKr mJ
Allotted ln L00L, beg. 7,9S9 S9,7Z9 LS1,B7^ ZL9,SBL ^L.L 7L.9
Lxerclsed 7,9S9 S9,7Z9 LS7,7L1 ZLS,^L9
lorlelted ^,1SZ ^,1SZ
Other changes
Allotted ln L00L, end
Allotted ln L00Z, beg. 9,70S 71,^BZ Z0L,097 ZBZ,LBS ^1.Z B^.B
Lxerclsed Z,11^ LS,7^Z LB,BS7
lorlelted L,L79 L,L79
Other changes L,9LL L,9LL
Allotted ln L00Z, end 9,70S SS,^^7 L7S,997 ZSL,1S0 Z7.9 77.9
Allotted ln L00^, beg. S,Z77 SL,SBS L^0,17B L9B,L^1 ^L.S SS.0
Lxerclsed Z,1LS 1^,9BL 1B,10B
lorlelted 7,ZSL 7,ZSL
Other changes 70S 70S
Allotted ln L00^, end S,Z77 ^B,BS^ L1B,S^0 L7L,771 Z9.0 S0.Z
Allotted ln L00S S,SLZ S0,0LL ^11,997 ^77,S^L BL.S 10S.S
Lxerclsed ^^^ L,B1S Z,LS0
lorlelted 1^,ZZS 1^,ZZS
Other changes
Allotted ln L00S, end S,SLZ S9,S7B Z9^,B^S ^S0,0^7 79.S 101.B
G-0*%&+($-2$#7"$@5",4#%3"$;-)'*H$"&*$-2$DEEJ$
/ear ol allotment L00Z L00^ L00S
[OKr mJ Number lV Number lV Number lV
leter Btraarup S,Z77 1.^ Z,0SB 0.7 Z,S0S 0.B
Jakob Erogaard Z,ZL9 0.7 L,Z19 0.S L,11B 0.S
ln L00S, Z7S,SS^ rlghts to condltlonal shares were exerclsed at an average prlce ol OKr1BL.L.
!"#$% !&'()%*$&+()*&,-"./&
9 K4*%#$2""($
1otal lees to the accountlng llrms elected by the general meetlng whlch perlorm the statutory audlt L^ L^
lees lor nonaudlt servlces lncluded ln precedlng ltem S S
10 K.-'#%()#%-&$)&*$*"1'",%)#%-&$
Amortlsatlon ol lntanglble assets B0S SZ7
Oepreclatlon ol tanglble assets 1,SL7 1,^SB
lmpalrment ol lntanglble assets B Z
lmpalrment ol tanglble assets ^ ^
1otal L,Z^^ L,10L
11 I'"*%#$0-(($"51"&("($
Oue lrom credlt lnstltutlons and central banks
Eank loans and advances ^1^ 9BL
Mortgage loans 110 110
Guarantees, loan commltments, etc. LB ^
1otal ^9S 1,09S
1L L-#)0$#)5$,7)'+"$2-'$#7"$C")'$
1ax on prollt lor the year ^,9SL ^,9L1
1ax on changes ln shareholders' equlty 1B 9^
1ax on prollt lor the year
Current tax charge ^,7L7 ^,ZLS
Change ln delerred tax ZLS S19
Adustment ol prloryear tax charge 100 Z9
Change ln delerred tax charge as a result ol lower tax rate BS
1ax on lmpalrment charges lor loans and advances, etc. LL
1otal ^,9SL ^,9L1
Lllectlve tax rate % %
Oanlsh tax rate LB.0 LB.0
Adustment ol prloryear tax charge 0.S 0.1
Change ln delerred tax charge as a result ol lower tax rate 0.Z
Nontaxable lncome and nondeductlble expenses 0.B 0.S
Olllerence between tax rates ol lorelgn unlts and Oanlsh tax rate 0.L 0.^
1ax on lmpalrment charges lor loans and advances, etc. 0.1
Other 0.1 0.1
Lllectlve tax rate LS.B L7.S
!"#$% !&'()%*$&+()*&,-"./&
1Z !"#$%&'%$"'(%"'(%()*"'(%()+,#&-#%.&-$%/)'-0"1%2"'3#%
Cash ln hand 9,710 B,L9L
Oemand deposlts wlth central banks L,S09 S,SB9
1otal 1L,Z19 1Z,BB1
1^ 45)%60,*%/0)(&-%&'#-&-5-&,'#%"'(%/)'-0"1%2"'3#%
Peverse transactlons 1S0,^S7 1^9,BLL
Other amounts due 11^,B0L 1LS,10S
lmpalrment charges 1 9
1otal L7S,LSB L7^,91B
lmpalrment charges
At January 1 9 1S
Peversal ol lmpalrment charges 7
lorelgn currency translatlon 1
Other addltlons and dlsposals 7
At Oecember Z1 1 9
OKrLSL,L91m ol the total amount conslsts ol amounts due wlthln three months, and they are therelore lncluded ln the cash llow
under Cash and cash equlvalents [L00S. OKrLSB,SBBmJ.
1S 70"(&'8%+,0-6,1&,%"##)-#%
Oerlvatlves wlth posltlve lalr value 1^9,SL9 1^B,BBB
Llsted bonds ZZ7,S9B L9L,LSB
nllsted bonds L,1^^ SS^
Llsted shares 1,LSS L,L^L
nllsted shares ZLB ^79
1otal ^90,9S^ ^^^,SL1
70"(&'8%+,0-6,1&,%1&"2&1&-&)#%
Oerlvatlves wlth negatlve lalr value 1^^,^1L 1S1,0L9
Pepurchase obllgatlons under reverse transactlons 9L,11L S1,01Z
1otal LZS,SL^ L1L,0^L
!"#$% !&'()%*$&+()*&,-"./&
1S 4)0&9"-&9)#%
[cont!dJ 1he Group!s actlvltles ln the llnanclal markets lnclude tradlng ln derlvatlves. 1he Group trades a conslderable volume ol the most
commonly used lnterest rate, currency and equlty contracts, lncludlng
! swaps
! lorwards and lutures
! optlons
lurthermore, the Group trades a llmlted number ol swaps whose value depends on developments ln speclllc credlt rlsks or lnllatlon
lndlces.
Oerlvatlves are ollered as lndlvldual transactlons or as lntegral parts ol other servlces, such as lssuance ol bonds wlth ylelds that de
pend on developments ln equlty or currency lndlces.
Moreover, derlvatlves are used to manage the Group!s own exposure to currency, lnterest rate, equlty market and credlt rlsks. Bee the
Plsk management sectlon lor a detalled descrlptlon ol the Group!s rlsk management pollcy. Oanske Markets ls responslble lor manag
lng and hedglng the market rlsks ol the Group.
Oerlvatlves are recognlsed at thelr lalr value. lnterest on some ol the Group!s bank loans, advances, deposlts, lssued bonds, etc. ls
added at a llxed rate. Generally, such llxedrate ltems are carrled at amortlsed cost. 1he general accountlng standards thus mean that
the lalr value ol the lnterest rate rlsk on, say, llxedrate loans ls not lncluded ln the lncome statement as opposed to changes ln the lalr
value ol hedglng derlvatlves. ln lts annual report, the Group applles the prlnclples ol lalr value hedge accountlng ll the lnterest rate rlsk
on llxedrate llnanclal assets and llabllltles ls hedged by derlvatlves.
lor each bank loan, advance, deposlt and lssued bond to whlch lnterest ls added at a llxed rate lor a specllled perlod ol tlme startlng at
the commencement date ol the laclllty, luture lnterest payments are dlvlded lnto baslc lnterest and a prollt margln and lnto perlods ol
tlme. Ey enterlng lnto swaps and lorwards wlth opposlte payment prollles as regards currencles and perlods, hedglng ol rlsk takes el
lect lrom the tlme the laclllty ls establlshed. 1he lalr values ol the hedged lnterest rate rlsk and the hedglng derlvatlves are measured
at lrequent lntervals to ensure that changes ln the lalr value ol the hedged lnterest rate rlsk lle wlthln a band ol B01LS% ol the
changes ln lalr value ol the hedglng derlvatlves. lortlollos ol hedglng derlvatlves are adusted ll necessary.
Ey elllclent hedglng, the hedged lnterest rate rlsk on hedged assets and llabllltles ls measured at lalr value and the value ls recognlsed
as a value adustment ol the hedged ltems. Value adustments are carrled ln the lncome statement under Net tradlng lncome. lnelll
clent hedglng whlch lles wlthln the elllclency band ls therelore also lncluded under Net tradlng lncome.
1he table below shows the value adustments ol hedged assets and llabllltles and hedglng derlvatlves lncluded ln Net tradlng lncome.
Hedglng ol llxedrate assets
Hedged loans and advances 1,70L 17
Hedglng derlvatlves 1,7LB L0
Net ellect on prollt lor the year LS Z
Hedglng ol llxedrate llabllltles
Hedged debt to credlt lnstltutlons Z07 L^B
Hedged deposlts 1SS 10S
Hedged lssued bonds 109 L9^
Hedged subordlnated debt 1,SS9 L,L1B
Hedglng derlvatlves 1,9S^ 1,B1^
Net ellect on prollt lor the year ^1 LSZ
1he exchange rate rlsk ol net lnvestments ln lorelgn unlts and subsldlarles ls hedged by establlshlng llnanclng arrangements ln the
relevant currencles. 1he exchange rate adustments ol the lnvestments are recognlsed dlrectly ln shareholders! equlty together wlth
exchange rate adustments ol the llnanclng arrangements that are dellned as hedges agalnst exchange rate lluctuatlons. 1he Capltal
sectlon shows the translatlon amounts lncluded ln shareholders! equlty. ln L00S, the Group dld not hedge the expected llnanclal re
sults ol the lorelgn unlts or other luture transactlons.
!"#$% !&'()%*$&+()*&,-"./&
Note [OKr mJ
1S 4)0&9"-&9)#%
[cont'dJ L00S Notlonal amount losltlve lalr value Notlonal amount Negatlve lalr value
Currency contracts
lorwards and swaps 1,7SZ,9SS S1,0^9 1,^SZ,197 ^Z,S^0
Optlons SL,7^S SLL S^,Z10 S^S
lnterest rate contracts
lorwards/swaps/lPAs B,SLS,B0S BZ,L0^ 9,0^S,0LL B7,Z^B
Optlons B1^,0^B 10,L0Z SBS,7SZ B,7B7
Lqulty contracts
lorwards ZZ1 1S1 L09 1S^
Optlons 1Z1,BS9 1,0Z0 1Z1,7Z0 1,SB^
Other contracts
Commodlty contracts ZSB ZSB
Credlt derlvatlves bought 179 BZ,9BB ZL
Credlt derlvatlves sold 1,1^7 B 1^L
1otal derlvatlves held lor tradlng purposes 11,L91,^Z9 1^S,LS7 11,ZSS,7L9 1^L,L91
Hedglng derlvatlves
Currency contracts 7^,7SS L7^ Z0Z,97L 1,SS1
lnterest rate contracts ZSS,ZZ9 L,9BB SS,109 ^S0
1otal derlvatlves 11,7Z1,SZZ 1^9,SL9 11,7L^,B10 1^^,^1L
L00S
Currency contracts
lorwards and swaps 1,9^B,BL9 S1,770 1,B00,SS9 SZ,ZZ^
Optlons S^,LS1 1,09^ SL,Z77 1,111
lnterest rate contracts
lorwards/swaps/lPAs L,^9S,S00 BL,7L0 Z,BS9,SS7 B7,1ZL
Optlons ^^^,0S9 7,B0S ZZZ,S79 S,^17
Lqulty contracts
lorwards LL Z
Optlons 1,97L 7^S L,L9B 77S
Other contracts
Commodlty contracts ^0S S ^0S S
Credlt derlvatlves bought LS1 S BZ,1SZ 10
Credlt derlvatlves sold LL^ 1 LS1 L
1otal derlvatlves held lor tradlng purposes ^,9^S,SZZ 1^^,1^9 S,1ZL,S0L 1^B,7BB
Hedglng derlvatlves
Currency contracts 90,^91 97L L^S,B19 1,1^9
lnterest rate contracts 107,SZZ Z,7S7 Z9,SSS 1,09L
1otal derlvatlves S,1^^,7S7 1^B,BBB S,^1B,BBS 1S1,0L9
!"#$%&!&'()%*$&+()*&,-"./&
!
!
1S :&'"'/&"1%&'9)#-*)'-%#)/50&-&)#%
llnanclal assets deslgnated at lalr value but not lncluded ln the tradlng portlollo
Llsted bonds 19,1B1 L0,S7S
nllsted bonds B^S 1,10S
Llsted shares 7Z0 1,1LL
nllsted shares 1,7ZS 1,S19
1otal llnanclal lnvestment securltles at lalr value LL,^91 L^,ZLL
Heldtomaturlty llnanclal assets
Llsted bonds Z,B^7 ^,Z90
1otal llnanclal lnvestment securltles LS,ZZB LB,71L

17 ;##)-#%$)1(%6,0%#"1)%
Loans and advances 1,7B7
Peal property 9 L0S
1otal 1,79S L0S

<&"2&1&-&)#%$)1(%6,0%#"1)%
Oeposlts BBB
Loans, advances and deposlts held lor sale relate to the sale ol lokus Eank!s branches ln Bogn og lordane county ln western Norway.

1B ="'3%1,"'#%"'(%"(9"'/)#%
Peverse transactlons L9^,SSS L09,7ZL
Other loans 7SZ,S9L SL^,SZ1
lmpalrment charges Z,9LS ^,7S0
1otal 1,0S^,ZLL BL9,S0Z

lmpalrment charges
At January 1 ^,7S0 S,17^
New and lncreased lmpalrment charges 1,S7L L,B^9
Peversal ol lmpalrment charges L,SZ9 ^,^LB
lorelgn currency translatlon Z ^^
Other addltlons and dlsposals ZS 1L1
At Oecember Z1 Z,9LS ^,7S0
Eank loans and advances lncludes amounts due to the Group under llnance leases [see note ZSJ.
!
19 >,0-8"8)%1,"'#%"'(%&##5)(%*,0-8"8)%2,'(#%
Mortgage loans
Nomlnal value S0B,9^L SSZ,1SZ
lalr value adustment ol lnterest rate rlsk S,L90 S,0^^
Adustment lor credlt rlsk SB 10S
lalr value ol mortgage loans S0L,SB^ SS9,09L
lssued mortgage bonds
Nomlnal value 7S7,91L 7Z7,LZ^
lalr value adustment ol lundlng ol current loans and advances S,L90 S,0^^
lalr value adustment ol prelssued bonds S^9 1,Z^0
Holdlng ol own mortgage bonds L7S,BSS Z0Z,LSZ
lalr value ol lssued mortgage bonds ^B^,L17 ^ZB,S7S

1he nomlnal value ol lssued mortgage bonds equals the amount to be repald on explry. Ol the total adustment lor credlt rlsk on mort
gage loans, changes ln L00S amounted to an lncome ol OKrZ7m [L00S. lncome ol OKr1Z^mJ.

Changes ln the lalr value ol own credlt rlsk amounted to OKr0 ol the total lalr value adustment ol lssued mortgage bonds [L00S.
OKr0J. 1he change ln lalr value ol the credlt rlsk ls calculated as the change trlggered by lactors other than changes ln the bench
mark lnterest rate, whlch ls the average yleld on Oanlsh mortgage bonds wlth AAA ratlngs. Changes ln L00S accounted lor OKr0 ol
the accumulated ellect [L00S. OKr0J.
!"#$% !&'()%*$&+()*&,-"./&
L0 ?,,1)(%#/$)*)#%"'(%5'&-@1&'3)(%
&'9)#-*)'-%/,'-0"/-#%
looled schemes nltllnked contracts 1otal
L00S L00S L00S L00S L00S L00S
Assets
Eonds L1,10S L1,7^7 L1,10S L1,7^7
Bhares 1L,9SL 1L,1LZ 1L,9SL 1L,1LZ
nlt trust certlllcates ^,71B L,S^Z S,9Z7 ^,SSS 11,SSS 7,L09
Cash deposlts, etc. 1,LS1 1,L0B 1,LS1 1,L0B
1otal ^0,0^S Z7,7L1 S,9Z7 ^,SSS ^S,9BZ ^L,LB7
lncludlng
Own bonds S,S97 S,0SS S,S97 S,0SS
Own shares BLS S99 BLS S99
Other lntragroup balances 9SB 9S7 9SB 9S7
1otal assets ZL,SSS Z1,110 S,9Z7 ^,SSS Z9,S0L ZS,S7S
Llabllltles
Oeposlts ^0,0^S Z7,7L1 S,9Z7 ^,SSS ^S,9BZ ^L,LB7
L1 ;##)-#%5'()0%&'#50"'/)%/,'-0"/-#%
Oue lrom credlt lnstltutlons 1,S00 L0L
llnanclal lnvestment securltles 19S,^Z1 190,9ZL
Holdlngs ln assoclated undertaklngs 1,0LZ BSS
lnvestment property 1S,SBB 1^,909
1anglble assets SL 1^
Pelnsurers' share ol provlslons 1,BSL L,0L9
Other assets ^,BLS Z,L9^
1otal LL0,Z91 L1L,LZS
lncludlng
Own bonds L^,L^Z LL,SLS
Own shares 79B SBB
Other lntragroup balances 1,0^B SB0
1otal assets 19^,Z0L 1BB,Z^L
Goodwlll on lnsurance buslness acqulred worth OKr9Lm was recognlsed as lntanglble assets at the end ol L00S [L00S. OKr9BmJ.
:&'"'/&"1%&'9)#-*)'-%#)/50&-&)#%5'()0%&'#50"'/)%/,'-0"/-#%
Llsted bonds 1L0,SS^ 1Z1,00^
Llsted shares ZS,ZLZ LL,99S
nllsted shares 1,^1S 1,BLS
nlt trust certlllcates ZS,LZL LB,1BS
Other securltles L,79S S,9L1
1otal 19S,^Z1 190,9ZL
!"#$% !&'()%*$&+()*&,-"./&
L1 A,1(&'8#%&'%"##,/&"-)(%5'()0-"3&'8#%5'()0%&'#50"'/)%/,'-0"/-#%
[cont'dJ Cost at January 1 S0S 10L
Addltlons S0Z
Olsposals
lorelgn currency translatlon
Cost at Oecember Z1 S0S S0S
Pevaluatlons and wrltedowns at January 1 LS1 1Z7
Bhare ol prollt 1B0 11^
Bhare ol adustments not recognlsed ln the lncome statement
Olvldends 1Z
lmpalrment charges
Peversal ol revaluatlons and wrltedowns
Pevaluatlons and wrltedowns at Oecember Z1 ^1B LS1
Carrylng amount at Oecember Z1 1,0LZ BSS
Bhare capltal
[%J
1otal
assets 1otal llabllltles lncome Net prollt
Lendomsselskabet al Januar L00L A/B, Copenhagen S0 1,19S Z9Z Z0 19S
Oantop Lendomme ApB, Copenhagen S0 ZL1 ^S 10 S0
ONl Lendomme Komplementarselskab ApB, Copenhagen S0
ONl Lendomme l/B, Copenhagen S0 9SL 1S 7B 10S
Hovedbanegardens Komplementarselskab ApB, Copenhagen S0
Maorgarden A/B, Copenhagen LS ^ L L0 1
lrlvathospltalet Hamlet al 199^ A/B, lrederlksberg LB SS L7 1SZ 11
1he lnlormatlon publlshed ls extracted lrom the companles! most recent annual reports.
B'9)#-*)'-%+0,+)0-C%5'()0%&'#50"'/)%/,'-0"/-#%
lalr value at January 1 1^,909 1^,^99
Addltlons 110 1B9
lroperty lmprovement expendlture 1B9 SB
Olsposals S9S ^L7
lalr value adustment 97S S90
lalr value at Oecember Z1 1S,SBB 1^,909
Pental lncome lrom lnvestment property amounted to OKr1,09Bm ln L00S [L00S. OKr1,0^1mJ. Lxpenses dlrectly attrlbutable to ln
vestment property generatlng rental lncome to the Group amounted to OKrLZ0m [L00S. OKrL1BmJ.
!"#$% !&'()%*$&+()*&,-"./&
Note [OKr mJ
L1 7"'8&21)%"##)-#%5'()0%&'#50"'/)%/,'-0"/-#% L00S L00S
[cont'dJ Oomlclle Machlnery and Oomlclle Machlnery and
property equlpment property equlpment
Cost at January 1 SB SZ
Addltlons ^9 9 11
Olsposals LS S
Addltlons on acqulsltlon ol buslness
Cost at Oecember Z1 ^9 ^1 SB
Oepreclatlon and lmpalrment charges at January 1 ^^ ^1
Oepreclatlon durlng the year 7 B
lmpalrment charges durlng the year
Peversal ol depreclatlon and lmpalrment charges LZ S
Oepreclatlon and lmpalrment charges at Oecember Z1 LB ^^
Carrylng amount at Oecember Z1 ^9 1Z 1^
Oepreclated over L0S0 years Z10 years Z10 years
At the end ol L00S, the lalr value ol domlclle property totalled OKr^9m.
L00S L00S
D)&'#50)0#E%#$"0)%,6%+0,9&#&,'#%6,0%&'#50"'/)%/,'-0"/-#%
Ealance at January 1 L,0L9 1,BZL
lremlums pald 107 7L
Eenellts pald 117 109
lnterest added to pollcyholders' savlngs S7 S7
lalr value adustment 1L0 1LZ
Other changes 10^ ^^
Ealance at Oecember Z1 1,BSL L,0L9
!"#$% !&'()%*$&+()*&,-"./&
LL A,1(&'8#%&'%"##,/&"-)(%5'()0-"3&'8#%
Cost at January 1 971 1,091
Addltlons ^1 L9L
Olsposals BS ^1L
Cost at Oecember Z1 9LS 971
Pevaluatlons and wrltedowns at January 1 7Z L17
Bhare ol prollt L09 LS1
Bhare ol adustments not recognlsed ln the lncome statement S
Olvldends 1BS 11S
lmpalrment charges
Peversal ol revaluatlons and wrltedowns SL L9S
Pevaluatlons and wrltedowns at Oecember Z1 ^S 7Z
Carrylng amount at Oecember Z1 971 1,0^^
Holdlngs ln assoclated undertaklngs Bhare capltal [%J 1otal assets 1otal llabllltles lncome Net prollt
Eankpenslon AE, Btockholm BLK L0
EOE Eankernas Oepa AE, Btockholm BLK L0
OKA ll A/B, Copenhagen OKK L0 ZBZ 1 SZ 1B
OKA l l/B, Copenhagen OKK LZ S^7 Z Z SS
OKA l Komplementarer A/B, Copenhagen OKK LZ
Lendomsaktleselskabet al LL. unl 19SS,
Copenhagen OKK S0 17 Z 1 Z
lnvesterlngsselskabet al LZ. marts L001 A/B,
Copenhagen OKK ^9 S 1S7 1S7
Luxembourg lnternatlonal Consultlng B.A.,
Luxembourg LP ZZ Z Z Z
MVC Holdlng AE, Gothenburg BLK ZZ 1
Medlcon Valley Capltal Management AE,
Gothenburg BLK Z1 1S 7 1
LP Kredlt A/B, Copenhagen OKK Z1 B,B^0 S,L91 ZBS 1^Z
Oanmarks Bklbskredlt A/B, Copenhagen OKK L^ SL,SZ0 SZ,SSB L,Z00 LBS
Aktleselskabet Pelnholdt v. Jorck, Copenhagen OKK LB 7^^ L0L S1 ^1
Multldata Holdlng A/B, Eallerup OKK ^^ LB1 L07 ^^0 ^1
lEB Holdlng A/B, Eallerup OKK LS 9Z9 SL0 1,77^ 19L
Pealkredltnettet Holdlng A/B, Copenhagen OKK LS 1LB ^S 10 1
lnteressentskabet al LZ. dec. 1991 OKK Z0 771 LS SZ ^B
1he lnlormatlon publlshed ls extracted lrom the companles! most recent annual reports.
!"#$% !&'()%*$&+()*&,-"./&
Note [OKr mJ
LZ B'-"'8&21)%"##)-#%
Boltware
L00S Goodwlll developed Other 1otal
Cost at January 1 S,7S^ SBS 1,BSS B,L9S
Addltlons ^S0 L1 ^71
Addltlons on acqulsltlon ol buslness ^B L S0
Olsposals Z0 1^ ^^
lorelgn currency translatlon Z7 LZ S0
Cost at Oecember Z1 S,B09 1,1LL 1,90L B,BZZ
Amortlsatlon and lmpalrment charges at January 1 BZ SB7 S70
Amortlsatlon durlng the year 17^ S0B 7BL
lmpalrment charges durlng the year B B
Peversal ol amortlsatlon and lmpalrment charges 11 11
Amortlsatlon and lmpalrment charges at Oecember Z1 LS^ 1,19S 1,^^9
Carrylng amount at Oecember Z1 S,B09 BSB 707 7,ZB^
Amortlsed over Z years Z years
Other lntanglble assets lnclude buslness relatlonshlps wlth deposltonly customers taken over as part ol acqulsltlons.
ln L00S, an amount ol OKr1,SS7m was expensed lor development proects [L00S. OKr1,^1^mJ.
L00S
Cost at January 1 9^ L7^ 1S^ SLL
Addltlons ^1S ^S ^S1
Addltlons on acqulsltlon ol buslness S,SL9 1,S^Z 7,L7L
Olsposals Z Z
lorelgn currency translatlon Z1 1Z ^^
Cost at Oecember Z1 S,7S^ SBS 1,BSS B,L9S
Amortlsatlon and lmpalrment charges at January 1 L 7Z 7S
Amortlsatlon durlng the year B1 S1^ S9S
lmpalrment charges durlng the year Z Z
Peversal ol amortlsatlon and lmpalrment charges Z Z
Amortlsatlon and lmpalrment charges at Oecember Z1 BZ SB7 S70
Carrylng amount at Oecember Z1 S,7S^ S0Z 1,LS9 7,SLS
Amortlsed over Z years Z years
!"#$%&!&'()%*$&+()*&,-"./&
!
!
LZ B'-"'8&21)%"##)-#
[cont!dJ Goodwlll ls broken down by cashgeneratlng unlt. Eanklng Actlvltles Northern lreland [Northern EankJ, Eanklng Actlvltles lreland
[Natlonal lrlsh EankJ, Eanklng Actlvltles Norway [Krogsveen and NylanderJ and Other buslness areas. 1he latter lncludes acqulsltlons
wlth goodwlll ol less than OKr100m. Note Z7 explalns ln detall the acqulsltlons made ln L00S and L00S.!

L00S
Goodwlll on
acqulsltlon
Pequlred rate ol
return [%J
Bhareholders'
equlty
Lst. avg. growth
1S yrs [%J
Lst. avg. growth
>S yrs [%J
Northern Eank, Northern lreland L,S^9 1L L,SS0 9 Z
Natlonal lrlsh Eank, Pepubllc ol lreland L,9^L 1L L,ZS9 L0 ^
Krogsveen and Nylander, Norway 1B0 1L SB L
Other buslness areas 1ZB 1L S0 L

1he speclal debt structure ol llnanclal lnstltutlons requlres the use ol a slmplllled equlty model to calculate the recoverable amount.
1he model ls based on approved earnlngs estlmates lor the cashgeneratlng unlts lor the next llve years and conservatlve growth
!s average requlred rate ol

1he lmpalrment test conducted ln L00S dld not lndlcate that goodwlll should be wrltten down to the recoverable amount. Bensltlvlty
analyses lnvolvlng separate changes ln the requlred rate ol return and growth estlmates ol 100bp [grossJ dld not produce results that
allected thls concluslon.!

L00S
Goodwlll on
acqulsltlon
Pequlred rate ol
return [%J
Bhareholders'
equlty
Lst. avg. growth
1S yrs [%J
Lst. avg. growth
>S yrs [%J
Northern Eank, Northern lreland L,S0S 1Z L,LZ0 9 Z
Natlonal lrlsh Eank, Pepubllc ol lreland L,9Z7 1Z 1,S1^ L0 ^
Krogsveen, Norway 1ZZ 1Z L^ L
Other buslness areas 1^7 1Z S0 0L
!
L^ B'9)#-*)'-%+0,+)0-C%
lalr value at January 1 Z,SLS ^,^SZ
Addltlons ^19 L11
lroperty lmprovement expendlture Z L
Addltlons on acqulsltlon ol buslness
Olsposals ZLS 1,L00
lalr value adustment 191 1LZ
Other changes L7
lalr value at Oecember Z1 Z,91^ Z,SLS

Pental lncome lrom lnvestment property totalled OKr17Sm ln L00S [L00S. OKrLB7mJ. Lxpenses dlrectly attrlbutable to lnvestment
property that generated rental lncome lor the Group amounted to OKrSm [L00S. OKrS0mJ, whereas expenses dlrectly attrlbutable to
lnvestment property that dld not generate rental lncome lor the Group amounted to OKr1m [L00S. OKrZmJ.

1he lalr value ol lnvestment property ls calculated on the basls ol a standard operatlng budget and a return rate llxed lor the property
ln questlon less expenses lor temporary lactors. 1he operatlng budget lactors ln a conservatlve estlmate ol the market rent that could
be earned on currently unoccupled premlses and adustments lor exlstlng leases that devlate materlally lrom standard terms and
condltlons. Pepalr and malntenance expenses are calculated on the basls ol the condltlon, year ol constructlon, materlals, etc. ol the
property. 1he return rate ls calculated on the basls ol the property!s locatlon, appllcatlons and condltlon as well as ol the term and
credlt quallty, etc. ol the leases.
return belore tax.
estlmates ol 0Z.S% ln the termlnal perlod [> S yearsJ. 1he derlved cash llows are dlscounted at the Group
!"#$% !&'()%*$&+()*&,-"./&
Note [OKr mJ
LS !"#$%&'()"**(+*)
Oomlclle Machlnery and
L00S property equlpment Lease assets 1otal
Cost at January 1 S,1^L L,ZB7 Z,^S0 10,9B9
Addltlons ZS 197 1,SBZ 1,B1S
Olsposals 77 ZZ BL^ 9Z^
1ransler 1SL LS^ 9L
1ranslerred to real property held lor sale 11 11
Addltlons on acqulsltlon ol buslness ^ ^
lorelgn currency translatlon B 7 L 17
Cost at Oecember Z1 S,LS9 L,Z0B ^,Z1Z 11,BB0
Oepreclatlon and lmpalrment charges at January 1 1,17L 1,S^0 9L9 Z,7^1
Oepreclatlon durlng the year 7L LBS SB9 9^7
lmpalrment charges durlng the year ^ ^
1ransler SL 117 SS
1ranslerred to real property held lor sale L L
Peversal ol depreclatlon and lmpalrment charges L17 19 ^LL SSB
lorelgn currency translatlon S S
Oepreclatlon and lmpalrment charges
at Oecember Z1 1,091 1,7B^ 1,1S1 ^,0LS
Carrylng amount at Oecember Z1 ^,1SB SL^ Z,1SL 7,BS^
Oepreclated over L0S0 years Z10 years Z years
At the end ol L00S, the lalr value ol domlclle property amounted to OKrS,^91m.
L00S
Cost at January 1 S,0LB L,SS0 L,BS9 10,^Z7
Addltlons 1S ZZ9 1,Z7Z 1,7L7
Olsposals ^7B S77 77L 1,9L7
1ranslerred to real property held lor sale LLZ LLZ
Addltlons on acqulsltlon ol buslness 79B 1S^ 9SL
lorelgn currency translatlon L 11 1Z
Cost at Oecember Z1 S,1^L L,ZB7 Z,^S0 10,9B9
Oepreclatlon and lmpalrment charges at January 1 1,190 1,9SZ BLS Z,9S9
Oepreclatlon durlng the year SL Z07 ^B9 BSB
lmpalrment charges durlng the year ^ ^
1ranslerred to real property held lor sale 1B 1B
Peversal ol depreclatlon and lmpalrment charges SS SL0 ZBS 1,07L
Oepreclatlon and lmpalrment charges
at Oecember Z1 1,17L 1,S^0 9L9 Z,7^1
Carrylng amount at Oecember Z1 Z,970 7^7 L,SZ1 7,L^B
Oepreclated over L0S0 years Z10 years Z years
At the end ol L00S, the lalr value ol domlclle property amounted to OKr^,9SZm.
!"#$% !&'()%*$&+()*&,-"./&
LS ,+-(.)"**(+*)
lnterest and commlsslons due B,0BS 10,L^S
Other amounts due 1L,BS7 1S,ZZZ
lenslon assets Z0B L91
Peal property taken over under nonperlormlng loans Z
1otal L1,LS0 LS,B7L
L7 /0()+1)2.(3%+)%#*+%+0+%1#*)"#3)2(#+."')&"#4*)
Pepo transactlons 1Z1,B^L BB,Z^B
Other amounts due ^ZL,707 ZBB,01S
1otal SS^,S^9 ^7S,ZSZ
LB /(51*%+*)
Pepo deposlts 10^,0^^ 9B,00Z
Other deposlts S9B,B99 SZZ,1B1
1otal 70L,9^Z SZ1,1B^
L9 6%"&%'%+%(*)0#3(.)%#*0."#2()21#+."2+*)
Llle lnsurance provlslons 17S,^B1 179,ZS^
lrovlslons lor unltllnked lnsurance contracts 17,B0Z 1L,ZLL
Collectlve bonus potentlal 1Z,BS^ 11,LSS
Other technlcal provlslons 7,SBS 7,17S
1otal provlslons lor lnsurance contracts L1^,7Z^ L10,11B
Other llabllltles 1,707 L,710
lntragroup balances S^B S00
1otal L1S,79Z L1L,ZLB
7.18%*%1#*)91.)%#*0."#2()21#+."2+*)
Ealance at January 1 L10,11B 1B9,S97
lremlums pald 1^,907 1^,0S7
Eenellts pald 1^,1SZ 1L,BB0
lnterest added to pollcyholders' savlngs B,SSZ B,9Z0
lalr value adustment S,Z7S S,Z1S
lorelgn currency translatlon SZ S
Change ln collectlve bonus potentlal L,S97 Z,7LS
Other changes 1,0SS ZS7
Ealance at Oecember Z1 L1^,7Z^ L10,11B
Z0 /(9(..(3)+":)
Oelerred tax assets ^^0 S0S
Oelerred tax llabllltles 1,BB9 1,SB1
Oelerred tax, net 1,^^9 1,07S
ln addltlon to the delerred tax provlded lor on the balance sheet, the Group ls llable lor delerred tax ol OKr0 [L00S. OKrLBmJ lor
shares ln subsldlary undertaklngs held lor less than three years.
!"#$%&!&'()%*$&+()*&,-"./&
!
Note [OKr mJ
!
Z0 ;-"#$()%#)3(9(..(3)+":)
[cont'dJ
L00S At Jan. 1
lorelgn
currency
translatlon
Addltlons on
acqulsltlon ol
buslness
lncluded ln
prollt lor
the year
lncluded ln
sharehold
ers' equlty At Oec. Z1
lntanglble assets ^7S S 7B ^0^
1anglble assets 1,77B ^ 1Z^ 1,91S
Becurltles 1L0 1^9 L^ L^S
lrovlslons lor obllgatlons 1,10B Z ^SL S^9
Other ^9 L 10 ZB LZ
1otal 1,07S 9 10 ZZ1 L^ 1,^^9
lncludlng adustment ol prloryear tax charges S

L00S
lntanglble assets ^S 11 ^^Z L^ ^7S
1anglble assets 1,SL7 Z1 LL0 1,77B
Becurltles ^L7 ^ Z11 1L0
lrovlslons lor obllgatlons S0S 1S ^Z7 Z^ B^ 1,10B
1ax loss carrylorwards 11 11
Other ^SS 1L ^L S9B ^0 ^9
1otal 7S 17 9 1,1S0 1L^ 1,07S
lncludlng adustment ol prloryear tax charges S1S
!
L00S L00S
Z1 ,+-(.)'%"&%'%+%(*))
Bundry credltors LS,^L0 LS,000
Accrued lnterest and commlsslons 17,1^S 1S,B07
lenslon obllgatlons 1,9LS L,L1^
Other stall commltments L,0ZB 1,B9^
lrrevocable loan commltments and guarantees L1L 1S0
Peserves subect to a relmbursement obllgatlon ZSB ^^9
Other obllgatlons 100 ZSB
1otal ^7,199 ^7,BBL
!
lrrevocable loan Peserves subect to a Other
commltments, etc. relmbursement obllgatlon obllgatlons

January 1, L00S 1S0 ^^9 ZSB
New and lncreased obllgatlons L^Z 19
Peversal ol obllgatlons 1BL 1B9
Bpent BS 9B
Lllect ol adustment ol dlscount rate or term L S
lorelgn currency translatlon 1
Oecember Z1, L00S L1L ZSB 100

1he Group has lssued a number ol lrrevocable loan commltments, etc. Obllgatlons lor such commltments are recognlsed ll obectlve
evldence ol lmpalrment ls establlshed ln accordance wlth rules slmllar to those that apply to lmpalrment ol loans and advances.

Peserves ln early serles subect to a relmbursement obllgatlon relate to mortgage loan agreements under whlch the borrower!s share
ol the serles reserve lund ls dlsbursed to the borrower on repayment ol the loan ln accordance wlth the terms and condltlons applylng
to the serles. ntll L0Z1, the Group!s obllgatlon wlll gradually be reduced ln accordance wlth the lndlvldual loan repayment prollles.
lactors that allect the repayment prollles lnclude changes ln lnterest rates and cash llows.

Other obllgatlons conslst prlmarlly ol provlslons lor restructurlngs and lawsults. s
!"#$% !&'()%*$&+()*&,-"./&
Note [OKr mJ
ZL <0&1.3%#"+(3)3(&+
Bubordlnated debt conslsts ol llabllltles ln the lorm ol subordlnated loan capltal and hybrld core capltal whlch, ln the event ol Oanske
Eank!s voluntary or compulsory wlndlngup, wlll not be repald untll alter the clalms ol ordlnary credltors have been met. Hybrld core
capltal ranks below subordlnated loan capltal. lrepayment ol subordlnated debt must be approved by the Oanlsh lBA.
Bubordlnated debt ls lncluded ln the capltal base, etc. ln accordance wlth sectlons 1L^, 1ZL and 1ZS ol the Oanlsh llnanclal Euslness
Act.
lrlnclpal lnterest Pedemptlon L00S L00S
Currency Eorrower Note [mllllonJ rate lssued Maturlty prlce [OKr mJ [OKr mJ
Pedeemed loans 1,B97
Jl/ Oanske Eank A/B a 10,000 S.Z00 199L 1^.09.L010 100 ^7S SZ7
BO Oanske Eank A/B b S00 7.^00 1997 1S.0S.L010 100 L,BZ1 Z,1SL
LP Oanske Eank A/B c 700 S.7S0 L001 LS.0Z.L011 100 S,L19 S,LLZ
LP Oanske Eank A/B d ^00 S.B7S L00L LS.0Z.L01S 100 L,9BL L,9B^
LP Oanske Eank A/B e S00 S.1LS L00L 1L.11.L01L 100 Z,7LB Z,7Z0
LP Oanske Eank A/B l S00 ^.LS0 L00Z L0.0S.L01S 100 Z,7LB Z,7Z0
NOK Oanske Eank A/B g 1,770 var. L00Z LS.0S.L01^ 100 1,S0L 1,SS^
GEl Oanske Eank A/B h ZS0 S.Z7S L00Z L9.09.L0L1 100 Z,BBS Z,B10
NOK Oanske Eank A/B l S00 var. L00Z 1S.0L.L01^ 100 ^SZ ^S7
BLK Oanske Eank A/B 7S0 var. L00^ LL.1L.L01Z 100 S19 S9S
LP Oanske Eank A/B k 700 ^.100 L00S 1S.0Z.L01B 100 S,L19 S,LLZ
LP Oanske Eank A/B l S00 var. L00S 09.09.L01Z 100 Z,7LB Z,7Z0
NOK Oanske Eank A/B m SZS var. L00S LL.0Z.L01^ 100 ^B^ S00
LP Oanlca lenslon n ^00 ^.ZS0 L00S lerpetual 100 L,9BL
Bubordlnated debt, excludlng hybrld core capltal Z7,9ZS Z7,L^Z

Hybrld core capltal
BO Oanske Eank A/B o 7S0 S.91^ L00^ lerpetual 100 ^,L^S ^,7^Z
GEl Oanske Eank A/B p 1S0 S.SSZ L00S lerpetual 100 1,SSS 1,SZZ
GEl Oanske Eank A/B q S00 S.SB^ L00S lerpetual 100 S,SSL
1otal hybrld core capltal 11,^S^ S,Z7S
Nomlnal subordlnated debt ^9,^00 ^Z,S19
Hedglng ol lnterest rate rlsk at lalr value 1SS 1,SZB
Holdlng ol own bonds L9Z 1,ZL0
1otal subordlnated debt ^B,9S1 ^Z,BZ7
1he capltal base lncludes ^S,1LS ^L,ZL9
a Pepayable as ol Bep. L007. ll debt ls not repald, the annual lnterest rate ls L.^0 percentage pts hlgher than SM Jl/ LlEOP.
b Pepayable as ol Jun. L007. ll debt ls not repald, the annual lnterest rate ls L.00 percentage pts hlgher than ZM BO LlEOP.
c Pepayable as ol Mar. L00B. ll debt ls not repald, the annual lnterest rate ls L.LS percentage pts hlgher than ZM LPlEOP.
d Pepayable as ol Mar. L01L. ll debt ls not repald, the annual lnterest rate ls L.07 percentage pts hlgher than ZM LPlEOP.
e Pepayable as ol Nov. L009. ll debt ls not repald, the annual lnterest rate ls L.Z0 percentage pts hlgher than ZM LPlEOP.
l Pepayable as ol Jun. L01Z. ll debt ls not repald, the annual lnterest rate ls L.0S percentage pts hlgher than ZM LPlEOP.
g lnterest ls pald at an annual rate 0.7S ol a percentage polnt hlgher than ZM NlEOP. Pepayable as ol May L011. ll debt ls not
repald, the annual lnterest rate ls L.LS percentage pts hlgher than ZM NlEOP.
h Pepayable as ol Bep. L01B. ll debt ls not repald, the annual lnterest rate ls 1.9^ percentage pts hlgher than ZM GEl LlEOP.
l lnterest ls pald at an annual rate 0.^7 ol a percentage polnt hlgher than ZM NlEOP. Pepayable as ol leb. L011. ll debt ls not
repald, the annual lnterest rate ls 1.97 percentage pts hlgher than ZM NlEOP.
lnterest ls pald at an annual rate 0.Z^ ol a percentage polnt hlgher than ZM B1lEOP. Pepayable as ol Oec. L010. ll debt ls not
repald, the annual lnterest rate ls 1.BZS percentage pts hlgher than ZM B1lEOP.
k Pepayable as ol Mar. L01S. ll debt ls not repald, the annual lnterest rate ls 1.B1 percentage pts hlgher than ZM LPlEOP.
l lnterest ls pald at an annual rate 0.L0 ol a percentage polnt hlgher than ZM LPlEOP. Pepayable as ol Bep. L010. ll debt ls
not repald, the annual lnterest rate ls 1.70 percentage pts hlgher than ZM LPlEOP.
m lnterest ls pald at an annual rate 0.L0 ol a percentage polnt hlgher than ZM NlEOP. Pepayable as ol Mar. L011. ll debt ls not
repald, the annual lnterest rate ls 1.70 percentage pts hlgher than ZM NlEOP.
n Pepayable as ol Oct. L011. ll debt ls not repald, the annual lnterest rate ls L.0B percentage pts hlgher than ZM LPlEOP.
o Pepayable as ol Jun. L01^. ll debt ls not repald, the annual lnterest rate ls 1.SS percentage pts hlgher than ZM BO LlEOP.
p Pepayable as ol Mar. L017. ll debt ls not repald, the annual lnterest rate ls 1.^^ percentage pts hlgher than ZM GEl LlEOP.
q Pepayable as ol leb. L017. ll debt ls not repald, the annual lnterest rate ls 1.70 percentage pts hlgher than ZM GEl LlEOP.
!"#$%&!&'()%*$&+()*&,-"./&
!
!
ZZ 7(#*%1#)5'"#*)
Contrlbutlons to external dellned contrlbutlon plans Z99 ^SB
Contrlbutlons to lnternal dellned contrlbutlon plans ^S9 Z99

1otal contrlbutlons to dellned contrlbutlon plans BSB BS7
Contrlbutlons to dellned benellt plans, standard cost LZB 17S
Pecognlsed as lncome on adustment ol plans Z17

1otal 779 1,0^L

A slgnlllcant part ol the Group!s penslons plans are dellned contrlbutlon plans under whlch the Group makes contrlbutlons to lnsur
ance companles, lncludlng Oanlca lenslon. Buch payments are expensed when they are made. Oellned benellt plans are typlcally
lunded by contrlbutlons made by employers and employees to separate penslon lunds that, on behall ol the members, lnvest the con
trlbutlons to lund luture penslon obllgatlons. 1he Group also has unlunded penslon plans that are recognlsed dlrectly on the consoll
dated balance sheet.

Oellned benellt plans ln Northern lreland and the Pepubllc ol lreland account lor most ol the Group!s obllgatlons under such plans. 1he
dellned benellt scheme ln Northern lreland does not accept new members as opposed to the dellned benellt scheme ln the Pepubllc ol
lreland. 1he dellned benellt plans ol both buslness areas are lunded through penslon lunds. 1he net penslon obllgatlons ln Northern
lreland and the Pepubllc ol lreland have been recognlsed on the balance sheet slnce the acqulsltlon ol No thern Eank and Natlonal lrlsh

ln Oenmark, most ol the employees have dellned contrlbutlon plans. Oellned benellt plans lor employees worklng ln Oenmark are
lunded by contrlbutlons to penslon lunds, the maorlty ol whlch are regulated by the Oanlsh Act on company penslon lunds. Most ol
the schemes do not accept new members, and most ol them are ln payment.

ln L00S, the dellned benellt scheme ln Norway was closed. Consequently, only a small portlollo ol dellned benellt plans ln Norway ls
unlunded and ls therelore recognlsed on the balance sheet under Other llabllltles. ln Bweden, thls type ol scheme accepts new mem
bers. 1he plans are lunded ln a penslon lund, wlth an upper llmlt on the salary level on the basls ol whlch penslon obllgatlons may be
calculated.

1he Group!s dellned benellt plans are computed on the basls ol external actuarlal calculatlons, and actuarlal galns and losses are rec
ognlsed uslng the corrldor method. 1he actuarlal calculatlons show an unrecognlsed net penslon asset ol OKrZ^m at Oecember Z1,
L00S [L00S. unrecognlsed net penslon obllgatlon ol OKrSZ^mJ.

1he net penslon assets/obllgatlons ol the lndlvldual penslon lunds are recognlsed under Other assets and Other llabllltles, respec
tlvely.

/(9%#(3)&(#(9%+)5'"#*)
lresent value ol unlunded penslon obllgatlons 1^^ 1SB
lresent value ol lully or partly lunded penslon obllgatlons 1L,BS1 1Z,S99
lalr value ol assets under the plans 11,^LL 11,^00
Net penslon obllgatlon at Oecember Z1 1,SBZ L,^S7
Actuarlal galns/losses not recognlsed ln the net penslon obllgatlon Z^ SZ^
Net penslon obllgatlon accordlng to llPB at Oecember Z1 1,S17 1,9LZ

Net penslon obllgatlons recognlsed on the balance sheet
lenslon assets recognlsed under Other assets Z0B L91
lenslon provlslons recognlsed under Other llabllltles 1,9LS L,L1^
! 1otal 1,S17 1,9LZ

Eank at the end ol lebruary L00S.
r
!"#$% !&'()%*$&+()*&,-"./&
Note [OKr mJ
ZZ ;-"#$(*)%#)#(+)5(#*%1#)1&'%$"+%1#)
[cont'dJ L00S L00S
Assets Llabllltles Net Assets Llabllltles Net
At January 1 11,^00 1Z,BS7 L,^S7 Z,077 Z,SS7 ^90
Lxpenses lncurred durlng the accountlng year ZL^ ZL^ L9B L9B
Calculated lnterest expenses SS7 SS7 ^S9 ^S9
Lstlmated return on assets under the plans S91 S91 S9L S9L
lenslon expenses lncurred durlng prevlous years ^B ^B
Btandard cost S91 9L9 LZB S9L 7S7 17S
Actuarlal galns/losses Z77 19Z S70 9S7 1,ZB0 ^LZ
Lmployer contrlbutlons to the plans LLS LLS 1BS 1BS
Eenellts pald out by penslon lunds ^10 ^10 ZSB ZSB
Adustment ol plans and buslness acqulsltlons BS1 1,17B Z17 S,9S7 B,S11 1,SS^
At Oecember Z1 11,^LL 1Z,00S 1,SBZ 11,^00 1Z,BS7 L,^S7
Actuarlal galns/losses not recognlsed
ln the net penslon obllgatlon 1,ZZZ 1,L99 Z^ 9S7 1,^91 SZ^
Net penslon obllgatlon at Oecember Z1 10,0B9 11,70S 1,S17 10,^^Z 1L,ZSS 1,9LZ
1he Group expects lts penslon contrlbutlons to total OKrLS0m ln L007.
L00S L00S
=:5(#*(*)91.)3(9%#(3)&(#(9%+)5'"#*)
Lxpenses lncurred durlng the accountlng year ZL^ L9B
Calculated lnterest expenses SS7 ^S9
Lstlmated return on assets under the plans S91 S9L
lenslon expenses lncurred durlng prevlous years ^B
Btandard cost LZB 17S
Actuarlal galns/losses S70 ^LZ
Changes ln plans Z17
1otal S^9 S9B
1he Group!s obllgatlons under dellned benellt plans are recognlsed on the basls ol actuarlal calculatlons ol the present value ol the
expected benellts. On Oecember Z1, the present value ol the lndlvldual plans was calculated on the basls ol the lollowlng assumptlons.
>8(."$()"2+0".%"')"**0?5+%1#*)"+)/(2(?&(.)@A)BCD)
Olscount rate ^.1S.L Z.ZS.1
Peturn on assets under the plans ^.S7.L Z.07.^
lnllatlon rate L.ZZ.1 L.0L.B
Balary adustment rate L.B^.S L.7^.Z
lenslon adustment rate L.ZS.0 L.ZS.0
1he assumptlons ol mortallty used to recognlse penslon obllgatlons at the end ol L00S are based on mortallty tables [OE0S [own
tableJ lor obllgatlons ln Oenmark, and l9^ lor obllgatlons ln Bweden, lA9LCL00^ lor obllgatlons ln Northern lreland, and lA9LCL010
and lA9LCL0L0 lor obllgatlons ln the Pepubllc ol lreland [all standard tablesJJ. 1he mortallty tables are adusted to rellect the general
trends ln mortalltles ol populatlons and general data on portlollos ol persons lnsured. 1he assumptlons mean that at Oecember Z1,
L00S, the average llle expectancles ol a S0yearold man and a S0yearold woman were B^.Z and B7.B years, respectlvely, and B^.9
years lor a SSyearold man and BB.L years lor a SSyearold woman.
!"#$% !&'()%*$&+()*&,-"./&
Note [OKr mJ
ZZ 7(#*%1#)"**(+*)
[cont'dJ L00S L00S
Bhare Lxpected Actual Bhare Lxpected Actual
% at Oec. Z1 return at Jan. 1 return at Oec. Z1 at Oec. Z1 return at Jan. 1 return at Oec. Z1
Bhares S0.0 7.B 10.0 SS.S 7.B L1.Z
Government and mortgage bonds LZ.0 Z.S 0.L LB.Z ^.7 7.Z
lndexllnked bonds B.L Z.9 L.^ 7.S ^.S 10.^
Corporate bonds ^.L ^.S 0.B Z.7 S.1 B.1
Peal property L.S S.L 9.0 L.B S.1 1L.0
Cash and cash equlvalents L.0 Z.S 1.Z L.1 ^.S ^.^
1otal 100.0 S.1 S.0 100.0 S.B 1^.9
Holdlngs ol own bonds amounted to L.1% at the end ol L00S [L00S. L.^%J.
L00S L00S L00^
Hlstorlcal trend ln dellned benellt plans
lresent value ol penslon obllgatlons 1Z,00S 1Z,BS7 Z,SS7
lalr value ol assets under the plans 11,^LL 11,^00 Z,077
Actuarlal galns/losses not recognlsed ln the net penslon obllgatlon Z^ SZ^ 11L
Net penslon obllgatlon at Oecember Z1 1,S17 1,9LZ Z7B
Z^ ;1#+%#$(#+)'%"&%'%+%(*)
1he Group ollers dlllerent types ol loanrelated llnanclal lnstruments to accommodate customers! llnanclal requlrements. nder such
lnstruments, the Group makes loan ollers and provldes other credlt lacllltles, guarantees, etc. that are not lncluded ln the balance
sheet.
L00S L00S
E0"."#+((*F)(+2G)
llnanclal guarantees S,BZ0 11,L7S
Mortgage llnance guarantees Z,Z00 Z,S77
Peglstratlon and remortgaglng guarantees L0 11
Other guarantees 71,^1B SS,LZS
1otal B0,SSB B1,099
,+-(.)'%"&%'%+%(*)
lrrevocable loan commltments shorter than 1 year 1^0,LSZ 97,10L
lrrevocable loan commltments longer than 1 year 119,ZL0 10Z,71S
Other obllgatlons BB^ 1,91^
1otal LS0,^S7 L0L,7Z1
Owlng to lts slze and buslness volume, the Oanske Eank Group ls contlnually a party to varlous lawsults. 1he Group does not expect
the outcomes ol the cases pendlng to have any materlal ellect on lts llnanclal posltlon.
A llmlted number ol employees are employed under terms whlch grant them, ll they are dlsmlssed belore reachlng thelr normal re
tlrement age, an extraordlnary severance and/or penslon payment ln excess ol what they would have been entltled to under ordlnary
terms ol employment.
!"#$% !&'()%*$&+()*&,-"./&
ZS >**(+*)3(51*%+(3)"*)*(20.%+H
At the end ol L00S, the Group had deposlted securltles worth OKrLZ0,^ZSm wlth Oanlsh and lnternatlonal clearlng centres, etc. as
securlty [L00S. OKrL0Z,007mJ.
ln connectlon wlth repo transactlons, whlch conslst ol a sale ol securltles to be repurchased at a later date, the securltles remaln on
the balance sheet and the amounts recelved are carrled as deposlts. Becurltles ln repo transactlons are treated as assets provlded as
securlty lor llabllltles. At the end ol L00S, the carrylng amount ol such securltles totalled OKrLZ1,B7Zm [L00S. OKr1BZ,0ZBmJ. 1he
counterparty ls entltled to sell the securltles or deposlt them as securlty lor other loans.
At the end ol L00S, assets under lnsurance contracts worth OKrL1L,1B9m had been reglstered as securlty lor pollcyholders! sav
lngs [L00S. OKrL0S,^9^mJ.
ZS) 6("*%#$)
!-()E.105)"*)'(**1.)
1he Group ollers lleet management, truck leaslng, l1 leaslng and real property leaslng under both llnance and operatlng leases.
7"H?(#+*)30()0#3(.)9%#"#2()'("*(*)
Eank loans and advances lncludes payments due under llnance leases worth OKr1B,SS^m at Oecember Z1, L00S [L00S.
OKr1S,011mJ.
llnance leases
At January 1 1S,011 1^,Z01
Addltlons B,70S S,71S
Olsposals S,0SZ S,00S
At Oecember Z1 1B,SS^ 1S,011
llnance leases explrlng
wlthln 1 year 1,7BL 1,S9S
ln 1 to S years 11,SZ7 9,S1L
alter S years S,Z^S ^,B0Z
1otal 1B,SS^ 1S,011
Gross lnvestment ln llnance leases explrlng
wlthln 1 year L,7LS L,S10
ln 1 to S years 1Z,SZ^ 11,S0L
alter S years S,ZZ7 S,S19
1otal LL,S97 19,SZ1
nearned llnance lncome ^,0ZZ Z,SL0
lmpalrment charges lor llnance leases amounted to OKr1B1m at Oecember Z1, L00S [L00S. OKr1B^mJ.
7"H?(#+*)30()0#3(.)15(."+%#$)'("*(*)
Assets leased under operatlng leases are recognlsed under tanglble assets [lease assets and domlclle propertyJ, lnvestment property
and lnvestment property under lnsurance contracts. 1he table below shows the mlnlmum lease payments broken down by lease term.
Operatlng leases explrlng
wlthln 1 year 979 9S9
ln 1 to S years 1,907 1,S91
alter S years SL1 SS0
1otal Z,S07 Z,L10
!"#$% !&'()%*$&+()*&,-"./&
ZS !-()E.105)"*)'(**(()
[cont!dJ 1he Group ls the lessee under a number ol operatlng leases under whlch payments lall due over a number ol years. 1he leases lnvolve
prlmarlly leaslng ol real property, tools and equlpment and are not carrled on the balance sheet. 1he table below shows the mlnlmum
lease payments broken down by lease term.
Operatlng leases explrlng
wlthln 1 year Z^S ^^L
ln 1 to S years 1,09^ 1,LS9
alter S years 1,7S1 1,S^9
1otal Z,190 Z,ZS0
Btall costs and admlnlstratlve expenses lnclude lease payments ln the amount ol OKrS^Sm [L00S. OKrS0LmJ.
1he Group has not entered lnto llnance leases wlth the Group as the lessee.
Z7 >2I0%*%+%1#)19)*0&*%3%".H)0#3(.+"4%#$*)

) >2I0%*%+%1#*)%#)JKKL
Oate
lalr value ol
net assets
Goodwlll on
acqulsltlon
Acqulsltlon
costs
1otal acqulsl
tlon prlce
lncluded ln net
prollt lor L00S
Pealestate agency buslnesses L00S 11 ^B S9
ln L00S, the Oanske Eank Group acqulred agalnst settlement ln cash, through Krogsveen, the shares ol llve companles that conduct
realestate agency buslness ln Norway. 1he companles were consolldated ln the accounts at the tlme ol acqulsltlon. Assumlng that the
Group had taken over the companles at the beglnnlng ol the year, the estlmated ellects on the prollt lor the year and total lncome
would have amounted to lncreases ol OKrZm and OKrL^m, respectlvely.
Goodwlll represents the value ol the expected prolltablllty ol the companles acqulred whlch cannot be attrlbuted rellably to lndlvldually
ldentlllable assets as well as expected synergles lrom the merger wlth the Oanske Eank Group.
Pealestate agency buslness
lalr value
at the tlme ol acqulsltlon
Carrylng amount
belore acqulsltlon
Oue lrom credlt lnstltutlons S S
lntanglble assets L L
1anglble assets ^ ^
Other assets ^Z ^Z
1otal assets S^ S^
Oue to credlt lnstltutlons ^ ^
Other llabllltles Z9 Z9
1otal llabllltles ^Z ^Z
Net assets acqulred 11 11
1he llgures were calculated ust belore the date ol acqulsltlon ln accordance wlth the accountlng pollcles ol the companles. 1he
amounts were translated lnto Oanlsh kroner at the exchange rate prevalllng at the tlme ol consolldatlon.
!"#$% !&'()%*$&+()*&,-"./&
Note [OKr mJ
Z7 >2I0%*%+%1#*)%#)JKKM)
[cont!dJ
Oate
lalr value ol
net assets
Goodwlll on
acqulsltlon
Acqulsltlon
costs
1otal acqulsl
tlon prlce
lncluded ln net
prollt lor L00S
Northern Eank, Northern lreland LB.0L.0S Z,Z91 L,S0S 7Z S,B97 LBS
Natlonal lrlsh Eank, Pepubllc ol lreland LB.0L.0S 1,91Z L,9Z7 S0 ^,BS0 1ZZ
Krogsveen, Norway Z0.0S.0S B 1ZZ 1^1 S
Bkandla Mklarna, Bweden Z0.09.0S 11 ^S 1 SS 1
londsllnans Aktlv lorvaltnlng, Norway Z1.10.0S 1L B L0
1he Oanske Eank Group acqulred all shares ln the companles llsted by payment ln cash. Northern Eank and Natlonal lrlsh Eank con
duct retall banklng actlvltles. Krogsveen and Bkandla Mklarna carry out realestate agency buslness ln Norway and Bweden, respec
tlvely. londsllnans Aktlv lorvaltnlng ls a Norweglan asset manager. 1he companles were consolldated ln the accounts at the tlme ol
acqulsltlon. Assumlng that the Group had taken over the companles at the beglnnlng ol the year, the estlmated ellects on the prollt lor
the year and total lncome would have amounted to lncreases ol OKrLm and OKrS1^m, respectlvely.
Goodwlll represents the value ol the expected prolltablllty ol the companles acqulred whlch cannot be attrlbuted rellably to lndlvldually
ldentlllable assets, lncludlng the value ol stall, knowhow and posltlon ln the communlty, as well as expected synergles lrom the
merger wlth the Oanske Eank Group.
Natlonal lrlsh Eank Northern Eank Other acqulsltlons
lalr value at
the tlme ol
acqulsltlon
Carrylng
amount belore
acqulsltlon
lalr value at
the tlme ol
acqulsltlon
Carrylng
amount belore
acqulsltlon
lalr value at
the tlme ol
acqulsltlon
Carrylng
amount belore
acqulsltlon
Oue lrom credlt
lnstltutlons B,1^7 B,1^7 S,190 S,190 LS L^
lnvestment securltles Z,0SS Z,0^1 L L
Eank loans and advances ZS,Z71 ZS,LZL L^,S99 L^,SS^
lntanglble assets 1,ZZB Z0S 1 1
1anglble assets ^9B SZ^ ^LZ ^LB 1Z 1Z
Other assets L,B1S L,ZS^ 1,ZS^ 1,L10 SZ S^
1otal assets ^B,1S9 ^S,L77 ZS,0^S Z^,^ZZ 9^ 9^
Oue to credlt lnstltutlons S99 S99 1Z,^Z1 1Z,^09 L L
Oeposlts Z7,S10 Z7,S10 17,SS1 17,SS1
Bubordlnated debt 1,000 1,000 S9S S9S
Other llabllltles S,SS9 Z,BSL 1,ZSS B91 S1 S1
1otal llabllltles ^^,77B ^Z,071 ZZ,1ZZ ZL,S^7 SZ SZ
Net assets acqulred Z,Z91 Z,L0S 1,91Z 1,7BS Z1 Z1
1he llgures were calculated ust belore the date ol acqulsltlon ln accordance wlth the accountlng pollcles ol the companles. Oevlatlons
ln the accountlng pollcles lrom the llPB were lmmaterlal. 1he amounts were translated lnto Oanlsh kroner at the exchange rate pre
valllng at the tlme ol consolldatlon.
!"#$% !&'()%*$&+()*&,-"./&
Note [OKr mJ
ZB !"#$%"&'($)%*"+'
lartles wlth
slgnlllcant lnlluence
Assoclated
undertaklngs Eoard ol Olrectors Lxecutlve Eoard
L00S L00S L00S L00S L00S L00S L00S L00S
Loans and loan
commltments 1L,9S^ 11,^1^ L,07B SL1 BL ZB 11 L
Becurltles and derlvatlves L,Z0L Z,^7^ L,70^ 9,^10
Oeposlts 1,7B7 L,0^S L00 SZ L^ LS 1B S
Oerlvatlves 1ZB Z7^
Guarantees lssued 1,L1S ^,0B0
Guarantees recelved 1^7 1 L
Becurlty recelved ^,LS^ B9 1^ LZ 11 7 L
Becurlty provlded ^ ^
lnterest lncome 19L B1 B 1 1
lnterest expense 1BS 119 S Z 1
lee lncome S 7 L 1
lee expenses
Other lncome 1S 19 Z Z
Other expenses
Pelated partles wlth slgnlllcant lnlluence are shareholders wlth holdlngs exceedlng L0% ol the share capltal ol Oanske Eank A/B [see
llst ln Management!s reportJ. Notes L1 and LL show a llst ol assoclated undertaklngs. 1he Eoard ol Olrectors and the Lxecutlve Eoard
columns comprlse the personal lacllltles, deposlts, etc. ol members ol the Eoard ol Olrectors and the Lxecutlve Eoard and thelr de
pendents. Note B specllles the remuneratlon and shareholdlngs ol the management.
Oanske Eank A/B acts as the bank ol a number ol lts related partles wlthln the Group. layment servlces, tradlng ln securltles, etc., ln
vestment and placement ol surplus llquldlty and provlslon ol shortterm and longterm lundlng are the prlmary servlces provlded by
Oanske Eank A/B.
lurthermore, Oanlca lenslon manages the employer penslon plans ol a number ol related partles, and Oanske Capltal manages the
assets ol a number ol the Group!s penslon lunds.
1he above llgures do not lnclude debt to related partles ln the lorm ol lssued notes. Buch notes are bearer securltles, and conse
quently the Group does not know the ldentlty ol the holders.
1ransactlons wlth related partles are conducted on an arm!s length basls.
!"#$%&!&'()%*$&+()*&,-"./&
!
Note [OKr mJ
!
Z9 ,$*)'-$#."'/0'0*1$12*$#'*1+%).3"1%+
llnanclal lnstruments are carrled on the balance sheet at thelr lalr value or at amortlsed cost. 1he lnterest rate rlsk on certaln llnan
clal lnstruments measured at amortlsed cost ls hedged by derlvatlves [see note 1SJ. 1hese hedglng derlvatlves are carrled ln accord
ance wlth the provlslons governlng lalr value hedge accountlng, l.e. at amortlsed cost less the lalr value ol the hedged lnterest rate
rlsk. 1he table below shows the lalr value ol all llnanclal lnstruments and thelr carrylng amount on the balance sheet.

1he lalr value ls the amount lor whlch a llnanclal asset could be exchanged or a llnanclal llablllty settled, between knowledgeable, wlll
lng partles. ll an actlve market exlsts, the market prlce ls applled. ll an actlve market does not exlst, whlch ls the case lor a number ol
llnanclal assets and llabllltles, a dlscounted cash llow or generally accepted estlmatlon and valuatlon technlques based on market
condltlons at the balance sheet date are used lnstead to calculate an estlmated value.

Generally, the Group applles valuatlon technlques to O1C derlvatlves, unllsted tradlng portlollo assets and llabllltles as well as unllsted
llnanclal lnvestment securltles. 1he most lrequently used valuatlon and estlmatlon technlques lnclude the prlclng ol transactlons wlth
luture settlement, swap models that apply present value calculatlons, credlt prlclng models and optlons models, such as Elack 8
Bcholes lormulas.

1he lalr value approxlmatlon ol llnanclal lnstruments wlth varlable lnterest rates ls amortlsed cost less lmpalrment losses. 1hls
means that the lalr value does not necessarlly rellect changes ln credlt quallty.

Most ol the Group!s llnanclal assets and llabllltles measured at lalr value are recognlsed on the basls ol publlcly quoted prlces or mar
ket condltlons on the balance sheet date. lor a descrlptlon ol the recognltlon ol mortgage loans at lalr value, see note 19. llnanclal ln
vestment securltles [see note 1SJ lnclude unllsted shares measured at lalr value uslng the lalr value guldellnes ol LVCA [the Luropean
lrlvate Lqulty 8 Venture Capltal AssoclatlonJ. 1hese valuatlon guldellnes are based on the estlmated lalr value ol unllsted shares,
whlch ls calculated as the prlce at whlch an asset could be exchanged between knowledgeable, wllllng partles.
!
Carrylng Carrylng
amount lalr value amount lalr value
L00S L00S L00S L00S
llnanclal assets
Cash ln hand and demand deposlts wlth central banks 1L,Z19 1L,Z19 1Z,BB1 1Z,BB1
Oue lrom credlt lnstltutlons and central banks L7S,LSB L7S,L70 L7^,91B L7^,91B
1radlng portlollo assets ^90,9S^ ^90,9S^ ^^^,SL1 ^^^,SL1
llnanclal lnvestment securltles LS,ZZB LS,ZS7 LB,71L LB,S9S
Assets held lor sale 1,79S 1,B1^ L0S LSS
Eank loans and advances 1,0S^,ZLL 1,0S^,Z07 BL9,S0Z BL9,S0Z
Mortgage loans S0L,SB^ S0L,SB^ SS9,09L SS9,09L
Assets under pooled schemes and unltllnked lnvestment contracts Z9,S0L Z9,S0L ZS,S7S ZS,S7S
Assets under lnsurance contracts 19^,Z0L 19^,Z0L 1BB,Z^L 1BB,Z^L
1otal L,S97,^BS L,S97,S09 L,ZB^,9S0 L,ZB^,99^

llnanclal llabllltles
Oue to credlt lnstltutlons and central banks SS^,S^9 SS^,SSB ^7S,ZSZ ^7S,ZSZ
1radlng portlollo llabllltles LZS,SL^ LZS,SL^ L1L,0^L L1L,0^L
Llabllltles held lor sale BBB BBB
Oeposlts 70L,9^Z 70L,9^Z SZ1,1B^ SZ1,1B^
lssued mortgage bonds ^B^,L17 ^B^,L17 ^ZB,S7S ^ZB,S7S
Oeposlts under pooled schemes and unltllnked lnvestment contracts ^S,9BZ ^S,9BZ ^L,LB7 ^L,LB7
Llabllltles under lnsurance contracts L1S,79Z L1S,79Z L1L,ZLB L1L,ZLB
Other lssued bonds L9Z,7ZS L9^,^S7 LS1,099 LS^,S77
Bubordlnated debt ^B,9S1 S0,9B^ ^Z,BZ7 ^S,107
1otal L,S9^,SB^ L,S97,ZS7 L,Z07,B1S L,Z1Z,SSZ

!"#$%&!&'()%*$&+()*&,-"./&
!

!
4)/.('5/#&*16+'$1&'.1&")%$7*16+'
!
Bhare capltal Net prollt Bhareholders' equlty Bhare capltal
[thousandsJ [OKr mJ [OKr mJ [%J
8$1+7"'9$17':;<='>/("15$6"1' OKK S,9BB,0^Z 1Z,S^S 9S,17L

>)"&*%'*1+%*%.%*/1+'
Pealkredlt Oanmark A/B, Copenhagen OKK SZ0,000 L,ZSS ZZ,1SS 100
home a/s, Copenhagen OKK 1S,000 100
Omegadane BAPL, larls LP B 100
OOE lnvest Llmlted, London GEl 1ZZ,LLZ LZ 7S 100
Northern Eank Llmlted, Eellast GEl 9^,000 199 Z,LS^ 100
1he company has 1^ subsldlarles
Natlonal lrlsh Eank Llmlted, Oublln LP B^,7BS 1Z0 L,9SZ 100
1he company has S subsldlarles
OOE lokus lnvest AB, 1rondhelm NOK L,0S0,000 9S0 7,1LL 100
lokus Eank ABA, 1rondhelm NOK L,7^9,SS7 100
1he company has Z subsldlarles
Oanske Eank lnternatlonal B.A., Luxembourg LP 90,SLS ZZ0 1,ZS7 100
1he company has L subsldlarles
Oanske Eank lolska B.A., varsaw lLN ^L,LLS LZ ^1S 100
OOE lnvest AE, Llnkplng BLK 100,000 Z1 B77 100

?1+.)$12"'/(")$%*/1+'
lorslkrlngsselskabet Oanlca, Bkadelorslkrlngs
aktleselskab al 1999, Copenhagen
OKK 1,000,000 1,L1S 1S,S7^ 100
Oanlca lenslon, Llvslorslkrlngsaktleselskab, Copenhagen
Oanlca lensonslorslkrlng AB, 1rondhelm

?1-"+%3"1%'/(")$%*/1+='"%2@'
Oanske Markets lnc., Oelaware BO L,000 Z L^ 100
Nordanla llnans A/B, Elrkerod OKK 10,000 17B B7S 100
Oanske Corporatlon, Oelaware BO ^ 1 100
Oanske lrlvate Lqulty A/B, Copenhagen OKK S,000 Z0 SZ 100
Oanske Capltal llnland Oy, Helslnkl LP 1,000 ^1 B1 100
1he company has 1 subsldlary
KHE Vl A/B, Copenhagen OKK 111,700 ^7 LZZ 100
Medlcon Valley Capltal l K/B, Copenhagen BLK LL0,77S 1Z 100 7S
Medlcon Valley Capltal ll K/B, Copenhagen BLK S^,B1S ^ L1 99
Lendomsaktleselskabet VlrumVang, Copenhagen OKK L,000 1B 17L 100
Oanske lund llc., Oublln Z00 100
1he company has S lunds
llve companles have no actlvltles L,S00 ^ 100

A%5")'/(")$%*/1+'
lolonlus lnc., London LS
lolonlus Ltd., London BO 1 S Z
Other operatlons lnclude operatlons that are consolldated ln the accounts because the Group controls these operatlons through management
agreements, etc.

All credlt lnstltutlons and lnsurance operatlons under supervlslon by natlonal lBAs are subect to local statutory provlslons on requlred capl
tal base. 1hese provlslons restrlct dlvldend payout.

lorslkrlngsselskabet Oanlca Bkadelorslkrlngsaktleselskab al 1999 ls the parent company ol Oanlca lenslon. Oanlca lenslon ls a llle lnsur
ance company and the parent company ol a llle lnsurance group. 1he group has an obllgatlon to certaln pollcyholders to restrlct translers to
equlty ll the percentage by whlch the solvency margln exceeds the statutory solvency requlrement ls hlgher than the percentage malntalned by
Btatsanstalten lor Llvslorslkrlng [now Oanlca lenslonJ prlor to the prlvatlsatlon ol thls company ln 1990. ln addltlon, lt ls the lntentlon not to
dlstrlbute dlvldends lor a perlod ol at least LS years lrom 1990. laldup share capltal may, however, be dlstrlbuted, and lnterest thereon may
be dlstrlbuted alter L000.
LP
OKK
BO
!"#$% !&'()%*$&+()*&,-"./&
8"0*1*%*/1+'/0'7"B'0*1$12*$#')$%*/+'
C"B'0*1$12*$#')$%*/' ' ' 8"0*1*%*/1'
Net prollt lor the year per share, OKr Net prollt lor the year dlvlded by the average number ol shares outstandlng durlng the year
Olluted net prollt lor the year per share, Net prollt lor the year dlvlded by the average number ol shares outstandlng durlng the year, lncludlng
OKr dllutlve ellect ol share optlons and condltlonal shares allotted as sharebased payment
Net prollt lor the year as % Net prollt lor the year dlvlded by average shareholders! equlty durlng the year
ol average shareholders! equlty
Cost/lncome ratlo Operatlng expenses dlvlded by total lncome
Bolvency ratlo 1otal capltal base, less statutory deductlons dlvlded by rlskwelghted ltems
Core [tler 1J capltal ratlo Core [tler 1J capltal, lncludlng hybrld core capltal, less statutory deductlons dlvlded by rlskwelghted
ltems
Core [tler 1J capltal Core [tler 1J capltal conslsts prlmarlly ol paldup share capltal and retalned earnlngs less lntanglble
assets.
Hybrld core capltal Hybrld core capltal conslsts ol loans that lorm part ol the core [tler 1J capltal. 1hls means that hybrld
core capltal ls used to cover losses ll the shareholders! equlty ls lost.
Capltal base 1he capltal base conslsts ol shareholders! equlty and supplementary capltal, less deductlons, such as
deductlon lor goodwlll. Bupplementary capltal may not account lor more than hall ol the capltal base.
Bupplementary capltal Bupplementary capltal conslsts ol subordlnated loan capltal that lulllls certaln requlrements " lor
example, the lender cannot clalm prepayment ol the loan capltal ll the Group delaults on lts payment
obllgatlon.
Plskwelghted ltems 1otal welghted assets and ollbalancesheet ltems not lncluded ln the tradlng portlollo and welghted
assets wlth market rlsk ln the tradlng portlollo calculated ln accordance wlth the capltal adequacy
rules lssued by the Oanlsh lBA
Olvldend per share, OKr lroposed dlvldend ol the net prollt lor the year dlvlded by the number ol lssued shares at the end ol the
year
Bhare prlce at Oecember Z1 1he prlce [all tradesJ ol Oanske Eank shares at the end ol the year
Eook value per share, OKr Bhareholders! equlty at Oecember Z1 dlvlded by the number ol shares outstandlng at the end ol the
year
Number ol lulltlme equlvalent stall Number ol lulltlmeequlvalent stall [parttlme stall translated lnto lulltlme stallJ at the end ol the year
at Oecember Z1
!"#$%&!&01%*&2()(3$2$)#&"4&'()%*$&+()*&,-"./&
!

!
!*+7'"D(/+.)"'
1he Oanske Eank Group ls exposed to a number ol rlsks, whlch lt manages at dlllerent organlsatlonal levels.

1he maln categorles ol rlsk are.
!! Credlt rlsk. 1he rlsk ol losses because counterpartles lall to meet all or part ol thelr obllgatlons towards the Group.
!! Market rlsk. 1he rlsk ol losses because the market value ol the Group!s assets and llabllltles wlll vary wlth changes ln market condltlons.
!! Llquldlty rlsk. 1he rlsk ol losses because the Group!s normal llquldlty reserves are not sulllclent to meet lts obllgatlons.
!! Operatlonal rlsk. 1he rlsk ol losses owlng to dellclent or erroneous lnternal procedures, human or system errors, or external events.
!! Euslness rlsk. 1he rlsk ol losses emanatlng lrom changes ln external clrcumstances or events that harm the Group!s lmage or earnlngs.
!! Llle lnsurance rlsk. 1he rlsk that Oanlca lenslon sullers losses due to modest returns on customers! lnvestment securltles and actuarlal
assumptlons that do not hold true.
!! lenslon rlsk. 1he rlsk ol a penslon shortlall ln the Group!s penslon plans whlch means that lt wlll have to make addltlonal contrlbutlons to
cover lts penslon obllgatlons towards current and lormer employees.

1he Annual Peport L00S contalns quantltatlve lnlormatlon about the Group!s credlt, market, llquldlty, lnsurance and penslon rlsks. Addltlonal
lnlormatlon about rlsk management at the Oanske Eank Group ls avallable at the Group!s veb slte www.danskebank.com/lr.

1he veb slte descrlbes the dlstrlbutlon ol rlsk management responslbllltles wlthln the Group and provldes lnlormatlon about the types ol rlsk
not quantllled ln the Annual Peport.

Oanlca lenslon ls a whollyowned subsldlary ol the Oanske Eank Group. ln accordance wlth Oanlsh law and the executlve order on the contrl
butlon prlnclple, Oanlca lenslon has notllled the Oanlsh lBA ol lts prollt pollcy. 1he contrlbutlon prlnclple and the prollt pollcy mean that
pollcyholders both recelve the return on allocated assets and take on the assoclated rlsk. Assets are allocated to pollcyholders to ensure
customers! guaranteed benellts. Market rlsk, etc. on assets and llabllltles allocated to pollcyholders are therelore not consolldated ln the
lollowlng tables but are treated ln the sectlon on llle lnsurance rlsk.
'
'

!"#$% !&01%*&2()(3$2$)#&"4&'()%*$&+()*&,-"./&
[OKr mJ
>)"&*%')*+7'
1he Oanske Eank Group alms to develop longterm relatlonshlps wlth lts customers. 1he grantlng ol a credlt laclllty ls based on the Group!s
lnslght lnto the customer!s llnanclal posltlon, whlch ls revlewed regularly to assess whether the basls lor the grantlng ol credlt has changed. ln
lts assessment, the Group measures whether the laclllty matches the credlt quallty and llnanclal posltlon ol the customer. lurthermore, the
customer must be able to demonstrate ln all probablllty the ablllty to repay the debt. ll the term ol a credlt laclllty ls longer than llve years, lt
must generally be consldered to ask the customer to provlde securlty. 1he Group ls cautlous about grantlng credlt lacllltles to buslnesses and
lndlvlduals ll the Group wlll obvlously have practlcal dllllcultles malntalnlng contact wlth the customer. 1he Group ls also partlcularly carelul ln
lts grantlng ol credlts to buslnesses ln troubled or cycllcal lndustrles.
>)"&*%'"D(/+.)"'
1he credlt exposure ls calculated on the basls ol selected ltems on and oll the balance sheet.
L00S L00S
Ealance sheet ltems
Oemand deposlts wlth central banks L,S09 S,SB9
Oue lrom credlt lnstltutlons and central banks L7S,LSB L7^,91B
Eank loans and advances 1,0S^,ZLL BL9,S0Z
Mortgage loans S0L,SB^ SS9,09L
Ollbalance sheet ltems
Guarantees B0,SSB B1,099
Loan commltments < 1 year 1^0,LSZ 97,10L
Loan commltments > 1 year 119,ZL0 10Z,71S
1otal L,L7^,9L^ 1,9S1,11B
1radlng actlvltles
1radlng portlollo assets ^90,9S^ ^^^,SL1
llnanclal lnvestment securltles LS,ZZB LB,71L
1otal S17,L9L ^7Z,LZZ
Credlt exposure lncludes ltems wlth credlt rlsk that lorm part ol the Group!s core banklng operatlons. 1radlng actlvltles lncludes ltems wlth
credlt rlsk that lorm part ol lts tradlngrelated actlvltles.
>)"&*%'"D(/+.)"'!'%)$&*16'$2%*-*%*"+'
L00S L00S
Eonds ZSZ,71S Z1B,9BZ
Bhares ^,0^B S,ZSL
Oerlvatlves wlth posltlve market value 1^9,SL9 1^B,BBB
1otal S17,L9L ^7Z,LZZ
Eonds
L00S L00S
Non Non
lnvestment lnvestment lnvestment lnvestment
grade grade 1otal grade grade 1otal
Government bonds S^,Z01 S^,Z01 10S,LZ7 LZ 10S,LS0
Mortgage bonds LSB,B09 S7 LSB,B7S 1B1,0^9 ^B^ 1B1,SZZ
Other bonds ZB,7^S 1,79L ^0,SZB Z1,S^L S^B ZL,190
1otal ZS1,BSS 1,BS9 ZSZ,71S Z17,9LB 1,0SS Z1B,9BZ
Eonds ln the portlollo are lssued by lssuers resldent ln Oenmark [S1%, agalnst SS% ln L00SJ, other Luropean countrles [^S%, agalnst ^L% ln
L00SJ and the rest ol the world [Z%, agalnst Z% ln L00SJ.
!"#$%&!&01%*&2()(3$2$)#&"4&'()%*$&+()*&,-"./&
!
[OKr mJ
!
Oerlvatlves wlth posltlve market value
L00S L00S
Eelore nettlng Alter nettlng Eelore nettlng Alter nettlng
Credlt lnstltutlons 1L1,1L0 1S,9S7 117,77^ 1B,9BB
llnanclals 1B,SSL B,SSB L0,7B7 7,7B1
lndustrlals ^,11S Z,SS1 L,9L^ L,LS0
Other S,7^1 Z,S^9 7,^0Z S,^01
1otal 1^9,SL9 ZL,71S 1^B,BBB Z^,^L0
'
:++"%'2#$++"+'
1he table below shows the credlt exposure ol the Group!s core banklng buslness broken down by asset class, as dellned ln the Capltal Pe
qulrements Olrectlve [CPOJ. Credlt exposure ls broken down by asset class based on a classlllcatlon ol each slngle customer. ln the table that
breaks down exposure by geographlcal area, customers are classllled at group level. 1he dlllerence means that, lor example, counterpartles
that lorm part ol large llnanclal lnstltutlons wlll be classllled as lnstltutlons only ll they are ln lact deslgnated as credlt lnstltutlons. Other
counterpartles that lorm part ol such groups [lncludlng holdlng companlesJ wlll be classllled as Corporate customers.
!
[OKr mJ L00S L00S
Petall, personal customers 70S,900 SSL,^^S
Petall, buslness customers SS,SZL ^S,91Z
Corporate customers BSL,0^7 719,SS7
lnstltutlons SZ7,^9B ^S9,71S
Governments S7,LS9 S1,B99
Becurltlsatlon S^,SBB L1,SB7
1otal L,L7^,9L^ 1,9S1,11B

1he Lxposure broken down by lndustry table shows the Group!s credlt exposure broken down by lndustry uslng an adusted Global lndustry
Classlllcatlon Btandard [GlCBJ.
!
ED(/+.)"'F)/7"1'&/G1'FB'*1&.+%)B'H4?><I'
L00S
Petall, Petall,
L00S L00S personal
customers
buslness
customers
Corporate
customers
lnstltu
tlons Governments
Becurltl
satlon 1otal 1otal
Petall customers 70S,900 70S,900 S1S,Z1L
Pental houslng companles, etc. B,1SB 100,ZS7 10B,SLS 1ZS,L0S
Government Z^,^0L Z^,^0L ^^,1S9
Credlt lnstltutlons L9S,LBZ LL,BS7 S,9^B ZLS,0BB ZZZ,1^7
llnanclals 10,LBS Z7S,L^^ L^1,L1S ^B,7Z^ S7S,^79 ^LZ,B07
Lnergy B^ 7,^1B 7,S0L S,S9L
Materlals 1,L^S ZS,Z9S Z7,S^1 Z7,100
lndustrlals 9,ZZ1 1^S,B7Z 1SS,L0^ 1LS,SB9
Consumer dlscretlonary and
consumer staples LZ,B7^ 1^S,07S S 1S9,9SS 1B7,07^
Health care 1,SS0 L0,S99 LL,LS9 19,Z9S
l1 77L 10,10S 10,B7B 9,B0B
1elecommunlcatlons L7 7,SL^ 7,SS1 7,9SS
tllltles 1,1BS 11,ZSS 1L,S^0 1Z,97^
1otal 70S,900 SS,SZL BSL,0^7 SZ7,^9B S7,LS9 S^,SBB L,L7^,9L^ 1,9S1,11B

!"#$% !&01%*&2()(3$2$)#&"4&'()%*$&+()*&,-"./&
[OKr mJ
1he Lxposure broken down by geographlcal area table shows the Group!s credlt exposure broken down by customers! country ol resldence.
llnanclal customers lnclude credlt lnstltutlons and other lnstltutlons wlthln the llnanclal servlces lndustry not supervlsed by local lBAs.
ED(/+.)"'F)/7"1'&/G1'FB'6"/6)$(5*2$#'$)"$'
L00S L00S
llnanclal
customers
Nonllnanclal
customers 1otal %
llnanclal
customers
Nonllnanclal
customers 1otal %
Luropean nlon 7B1,L09 1,1S0,700 1,9^1,909 BS.^ S7L,77S 1,09^,S11 1,SS7,LB7 BS.0
lncludlng. Oenmark 19Z,1S9 BBL,7^0 1,07S,909 ^7.Z 1S7,997 B^Z,0S9 1,011,0SS S1.S
Germany 17,B90 17,L0S ZS,09S 1.S 1Z,90^ 1L,BLZ LS,7L7 1.^
Pepubllc ol lreland LB,S^0 ^0,010 SB,SS0 Z.0 11,B71 LS,77^ ZB,S^S L.0
Bweden 10S,BZ1 1LS,SZ9 LZ1,^70 10.L 7S,19B 111,B79 1BB,077 9.S
K ZBB,SL1 S^,ZS1 ^SL,BBL 19.9 LS0,19S 70,9SB ZL1,1SZ 1S.^
Lastern Lurope 1,011 ^SB 1,^S9 0.1 SS1 ZS0 1,011 0.1
Pest ol Lurope S7,7^L 97,^70 1SS,L1L S.B S0,09L B9,LZ7 1^9,ZL9 7.S
lncludlng. Norway ^9,B11 9S,B^0 1^S,SS1 S.^ SL,S1^ B^,777 1Z7,L91 7.0
North Amerlca 1S0,907 11,11^ 1SL,0L1 7.1 11S,SS9 1S,^7S 1ZL,0^^ S.B
Central and Bouth Amerlca 1,9Z0 ZS1 L,L91 0.1 71S 1,S1L L,LL7 0.1
Alrlca S09 ZZB B^7 0.0 LL0 1SZ ZBZ 0.0
Asla 7,^^S L,0L9 9,^7S 0.^ S,B^0 1,SS7 B,^07 0.^
Oceanla B1Z BB7 1,700 0.1 91 ZZ9 ^Z0 0.0
1otal 1,001,SS7 1,L7Z,ZS7 L,L7^,9L^ 100.0 7SS,9S^ 1,L0^,1S^ 1,9S1,11B 100.0
!$%*16'/0'2.+%/3")+
1he Oanske Eank Group monltors exposures to ldentlly slgns ol weakness ln the llnanclal posltlon ol customers as early as posslble. 1he
asslgnment and update ol ratlngs on the basls ol lnlormatlon about the customers lorm part ol the Group!s credlt procedures.
1he ratlng ol customers ls a process managed by the Group!s credlt department. 1he advlsers provlde lactual data about thelr customers, but
they cannot lnlluence the classlllcatlon ol the customers. 1he process ls deslgned to make ratlng declslons lndependent ol the advlsers. 1he
Group asslgns credlt scores to customers that are not rated, lncludlng personal customers. On the basls ol lts customer data, the Group has
developed a number ol statlstlcal models to predlct the probablllty ol customers! delault on thelr obllgatlons to the Group.
1he Group applles a scale that comprlses ten ratlng categorles. Patlng categorles 1 to ^ largely correspond to the lnvestment grade level ol
the external ratlng agencles, whereas ratlng categorles S and S correspond to the sublnvestment grade level, although the credlt rlsk ol
customers ln these categorles ls acceptable. Many ol the Group!s small buslness customers are asslgned a ratlng wlthln one ol these catego
rles. Categorles 7 and B comprlse customers wlth an lncreased rlsk. 1he Group closely monltors lts relatlonshlp wlth these customers. Pat
lngs 9 and 10 are asslgned to customers that pose a conslderable rlsk to the Group and customers who have delaulted on thelr obllgatlons.
Average lO expresses the probablllty ol delault ol each ratlng category.
1he Group regularly revlews the ablllty ol lts ratlng and credlt scorlng systems to grade customers by rlsk and to predlct the probablllty ol
delault.
>)"&*%'"D(/+.)"'F)/7"1'&/G1'FB')$%*16'2$%"6/)B'
L00S Petall, Petall,
Patlng category
Avg.
lO
personal
customers
buslness
customers
Corporate
customers lnstltutlons Governments Becurltlsatlon 1otal
1 0.01 S,9S0 S7,Z70 ZZ,SBS 719 107,SZS
L 0.01 SZ,9S9 L70,ZBZ L0,^7B Z7,ZS^ Z9L,1B^
Z 0.0Z ZB0,SS9 SS^ 7S,9ZL 1L^,Z^7 197 10,990 S9L,SB9
^ 0.10 1Z0,ZB1 LS,LZ7 LSL,S0^ ZS,L00 BB S,S19 ^S0,0L9
S 0.LS 9B,0^S ^,B07 LL1,^S0 ^,^BS LBS S ZL9,0BB
S 0.SZ S0,BZ9 1^,SL7 L0S,0SL Z^,S97 L,0ZS 1 Z1B,1SL
7 1.9^ ZL,7L0 7,SZZ LB,0SS 977 SBS S9,9B1
B 9.9^ Z,^1L L,S17 S,1LB 1ZZ 1 1L,191
9 LS.^S LLS ZB BZZ S 1,10Z
10 100.00 S1B 109 1,1Z^ 1 1,BSL
1otal 70S,900 SS,SZL BSL,0^7 SZ7,^9B S7,LS9 S^,SBB L,L7^,9L^
!"#$% !&01%*&2()(3$2$)#&"4&'()%*$&+()*&,-"./&
[OKr mJ
>)"&*%'"D(/+.)"'F)/7"1'&/G1'FB')$%*16'2$%"6/)B'
L00S Petall, Petall,
Patlng category
Avg.
lO
personal
customers
buslness
customers
Corporate
1 0.01 7,LLS 9Z,SB7 ZL,01Z 9^ 1ZL,9L0
L 0.0^ S^,^9^ L0S,7SL 1S,SS0 1L,SBL Z00,^9B
Z 0.07 L77,SBS SS SL,Z1S 10Z,^ZZ 1S9 S,LZ9 ^ZB,B9B
^ 0.1Z 1BZ,00L 19,ZL^ LSZ,B09 ^Z,9SB L0L Z,ZBZ S1Z,S7B
S 0.LZ ^S,7S0 Z,0S9 179,ZLL 11,99S LSL L^0,^09
S 0.^1 S9,S0B B,B^S 117,ZB7 ^,BZZ L,SS^ 1B9 19Z,^LS
7 1.ZB SS,B90 10,S7L LS,S91 Z,SSZ 1ZS 10S,9S1
B S.L7 1B,001 Z,S1S S,700 1,17B L LB,^97
9 L0.00 BL7 Z^B L,L1S Z0S Z,S97
10 100.00 S7L 7^ 1,Z9S L L,1^^
1otal SSL,^^S ^S,91Z 719,SS7 ^S9,71S S1,B99 L1,SB7 1,9S1,11B
>/12"1%)$%*/1')$%*/+'
As part ol lts credlt rlsk management, the Oanske Eank Group ldentllles concentratlon ratlos that may pose a rlsk to lts credlt portlollo. As
part ol lts buslness strategy, the Group dlvldes lts portlollo ol credlt lacllltles lnto three overall categorles. loans to Oanlsh resldents, mortgage
loans and loans to llnanclal customers.
nder sectlon 1^S ol the Oanlsh llnanclal Euslness Act, lacllltles wlth a slngle customer or a group ol mutually related customers, excludlng
partlcularly secure clalms, may not exceed LS% ol the capltal base. Moreover, the sum ol lacllltles whlch each exceed 10% ol the capltal base,
excludlng partlcularly secure clalms, may not exceed B00% ol the capltal base. 1he Group submlts quarterly reports to the Oanlsh lBA on lts
compllance wlth these rules. lts acqulsltlon ol the Bampo Eank group lncreased the Oanske Eank Group!s laclllty wlth the Bampo group by
OKrZ0.Lbn. 1he temporary noncompllance wlth the maxlmum llmlts was approved by the Oanlsh lBA. Otherwlse, the Group dld not have
lacllltles that exceeded these llmlts.
1he table below shows credlt exposures to groups whlch each exceed 10% ol the capltal base broken down by thelr share ol the capltal base.
>)"&*%'"D(/+.)"'
L00S L00S
Number ol
groups 1otal laclllty
laclllty, excl.
partlcularly
secure clalms
Number ol
groups 1otal laclllty
laclllty, excl.
partlcularly
secure clalms
laclllty >L0% ol capltal base 1 Z^,S70 ZL,0S0 1 L0,ZZ1 L0,Z01
laclllty between 10% and L0% ol capltal base 10 ^11,S9B 1SZ,00B 1L S1^,7S0 1SZ,SS7
!"#$% !&01%*&2()(3$2$)#&"4&'()%*$&+()*&,-"./&
[OKr mJ
<"2.)*%B'
1he Group applles the varlous lnstruments avallable to reduce the rlsk on lndlvldual transactlons, lncludlng securlty ln the lorm ol physlcal
assets, nettlng agreements and guarantees.
Becurlty ls provlded lor a number ol loan types to comply wlth statutory provlslons or market practlce, as ls the case ln the mortgage llnance
market. 1he most lmportant lnstruments to reduce rlsk are charges, guarantees and nettlng agreements. 1he types ol securlty most lre
quently provlded are real property, llnanclal assets [shares and bondsJ and motor vehlcles.
1he Group assesses the value ol securlty provlded on an ongolng basls. 1he Group calculates the value as the prlce an asset would letch at a
lorced sale, less deductlons rellectlng selllng costs and the perlod over whlch the asset wlll be up lor sale. 1he Group has prepared models to
automatlcally estlmate the value ol the most regular types ol securlty. As regards securlty lor whlch the Group has not devlsed a model, data
are retrleved manually.
L00S
Petall, Petall,
personal
customers
buslness
customers
Corporate
customers lnstltutlons Governments Becurltlsatlon
L00S
1otal
L00S
1otal
Credlt exposure 70S,900 SS,SZL BSL,0^7 SZ7,^9B S7,LS9 S^,SBB L,L7^,9L^ 1,9S1,11B
Value ol securlty S^0,SLS ^9,0Z7 ^L9,177 Z00,S0S ZL,BSL ^0,ZSB 1,Z9L,^7S 1,ZZ1,7B0
1otal unsecured
credlt exposure 1SS,Z7^ 7,^9S ^ZL,B70 LZS,99Z L^,Z97 1^,ZL0 BBL,^^9 SL9,ZZB
JB("+'/0'+"2.)*%B'
Petall, Petall,
L00S
personal
customers
buslness
customers
Corporate
Peal property SLS,711 LS,^71 LLZ,SSL 1,0SS 9SS 1,B1^ 779,SS9
Eank accounts 7^L L0Z S,1^9 107 S,L01
Custody accounts/securltles L,B^7 Z71 1^9,SBS LS0,91S Z0,079 1S,S^9 ^S0,Z^S
Vehlcles L,71Z 10,B19 SZ9 LS1 1^,ZLL
Lqulpment 77 ^90 7,1LS S9 7,7S1
Vessels/alrcralt SS ^S 1L,77^ 1L,BBS
Guarantees Z,711 ^,1S9 1L,SBZ ZL,9^S SLS S^,0LZ
Other assets Z,SS9 7,^7B 17,SS0 S,^LZ 1,0SL LL,00S S7,L77
1otal S^0,SLS ^9,0Z7 ^L9,177 Z00,S0S ZL,BSL ^0,ZSB 1,Z9L,^7S
K1+"2.)"&'+5$)"'/0'"D(/+.)"'F)/7"1'&/G1'FB')$%*16'2$%"6/)B
L00S Credlt nsecured share ol exposure [%J Avg. unsecured
Patlng category exposure 010 10LS LSS0 S07S 7S100 share ol exposure
1 107,SZS ^L,^9^ B,9S1 1,1ZL SS,0^B SS.S
L Z9L,1B^ 1S9,ZB9 ^1,SS0 1B,L9S 79L 17L,1SB ^B.S
Z S9L,SB9 Z7S,SZ^ S0,9^1 ZS,101 B,^S^ 111,S^9 LS.B
^ ^S0,0L9 L^0,9Z0 LS,Z9Z 1S,0^S B,0ZZ 1SB,SLB ZB.L
S ZL9,0BB 1B1,^0L 1S,ZS7 19,^9^ S,9SS 10S,BB0 ZS.S
S Z1B,1SL 1^9,17S 1Z,110 LZ,SZ^ S,S1B 1LS,BLS ^Z.9
7 S9,9B1 LB,9L7 ^,1BS ^,077 L,091 Z0,700 ^7.7
B 1L,191 ^,LZ0 S7Z S9B 9^Z S,S^7 S^.9
9 1,10Z ZSS Z1 BZ 111 SLL 77.L
10 1,BSL 97L 91 1L0 101 S7B 7S.S
1otal L,L7^,9L^ 1,1B^,S09 171,L9Z 11B,S79 Z^,00B 7SS,SZS Z9.^
!"#$% !&'(%)&*+,+-$*$,#&".&/+,%)$&0+,)&12"34&
[OKr mJ
L00S Credlt nsecured share ol exposure [%J Avg. unsecured
Patlng category exposure 010 10LS LSS0 S07S 7S100 share ol exposure
1 1ZL,9L0 SS,17^ BS 1^Z 10 S7,S0B SS.^
L Z00,^9B L1Z,SSZ LB,B^1 ZZ,L1L 1L,BS1 1L,0^1 1B.7
Z ^ZB,B9B L^^,ZS0 S^,9SS ^Z,9LS L1,^99 7^,1SB LS.S
^ S1Z,S7B ZS9,9^1 19,1SS 1S,LLL S,911 11L,^^9 L^.9
S L^0,^09 1LL,71L 1^,017 LZ,11S 7,S97 7L,9SB Z9.L
S 19Z,^LS B1,9SL 10,1LS 1S,L^0 9,ZLS 7S,7B^ ^S.9
7 10S,9S1 ^L,BZ1 B,Z09 11,Z^9 ^,LL^ ^0,LZB ^^.S
B LB,^97 S,90S 1,7^Z ^,ZZ9 L,01S 1Z,^9^ 7L.1
9 Z,S97 1,^S0 197 ^S9 SB 1,S1Z Z1.S
10 L,1^^ ^0S 11S L^9 SB 1,Z0S Z1.L
1otal 1,9S1,11B 1,1Z9,LB^ 1Z7,SSZ 1^7,LS^ S^,SS9 ^7L,^SB ZL.1
!""#$%&'()%''#*&+),-#.(&)/#$&),0)1&/*2+-0)
1he allowance account lncludes all lmpalrment charges lor Eank loans and advances, Mortgage loans, Oue lrom credlt lnstltutlons and central
banks and lrovlslons lor losses on guarantees.
Credlt lndlvldual Collectlve
L00S exposure lmpalrment lmpalrment 1otal
Petall customers 70S,900 ^0^ 1BB S9L
Pental houslng companles, etc. 10B,SLS L1 L1
Government Z^,^0L
Credlt lnstltutlons ZLS,0BB 1 1
llnanclals S7S,^79 S0S 117 7LL
Lnergy 7,S0L 1 1
Materlals Z7,S^1 11L 107 L19
lndustrlals 1SS,L0^ 1,0^9 1S9 1,L1B
Consumer dlscretlonary and consumer staples 1S9,9SS 99S LS9 1,LS^
Health care LL,LS9 LS 9 Z^
l1 10,B7B 10S 17 1LZ
1elecommunlcatlons 7,SS1 S ^ 9
tllltles 1L,S^0
1otal L,L7^,9L^ Z,ZL^ BB0 ^,L0^
Credlt lndlvldual Collectlve
L00S exposure lmpalrment lmpalrment 1otal
Petall customers S1S,Z1L ^S7 101 SSB
Pental houslng companles, etc. 1ZS,L0S 1S L 1B
Government ^^,1S9 11S 11S
Credlt lnstltutlons ZZZ,1^7 9 9
llnanclals ^LZ,B07 S9Z 1LB BL1
Lnergy S,S9L 1 1
Materlals Z7,100 1Z^ LL 1SS
lndustrlals 1LS,SB9 1,^1B 1B7 1,S0S
Consumer dlscretlonary and consumer staples 1B7,07^ 1,17S Z9^ 1,SS9
Health care 19,Z9S S 1L 1B
l1 9,B0B 1SS 1B 17Z
1elecommunlcatlons 7,9SS S 1 S
tllltles 1Z,97^
1otal 1,9S1,11B ^,1BS BSS S,0S0
!"#$%&!&'(%)&*+,+-$*$,#&".&/+,%)$&0+,)&12"34&
!
[OKr mJ
!
!""#$%&'()%''#*&+),-#.(&)/#$&),0)+03()#4)153%1-5(&+)

L00S L00S
lndlvldual Collectlve lndlvldual Collectlve
lmpalrment lmpalrment 1otal lmpalrment lmpalrment 1otal
At January 1 ^,1BS BSS S,0S0 S,^S^ 1,1SL S,S1S
lmpalrment charges, etc. 1,^ZS ^7L 1,907 L,BS0 L7Z Z,1LZ
Peversal ol lmpalrment charges L,L7L S11 L,7BZ ^,LBB SSL ^,BS0
Other ltems L^ S^ Z0 1S9 L 1S1
At Oecember Z1 Z,ZL^ BB0 ^,L0^ ^,1BS BSS S,0S0

!""#$%&'()%''#*&+),-#.(&)/#$&),0)153%1-5(&+)-(%2#&)61&/171/*%")153%1-5(&+)'8%-9(2:)
!
L00S L00S
Lxposure belore Lxposure belore
lmpalrment lmpalrment lmpalrment lmpalrment
Eankruptcy BBB SSL S9B SL1
Collectlon/suspenslon ol payments ^1^ L^0 1,^SS 7LB
Composltlon/restructurlng ol debt 7^B Z10 ^91 ZSZ
Other llnanclal dllllcultles ^,LSS L,LLL Z,9^S L,S7Z
1otal S,Z1S Z,ZL^ S,S99 ^,1BS

ln L00S, lnterest lncome lrom lndlvldually lmpalred llnanclal assets amounted to OKrLS^m [OKrZL^mJ.
!
;%2+)/*()%5#*&+2) Petall, Petall,
personal
customers
buslness
customers
Corporate
customers lnstltutlons Governments Becurltlsatlon
L00S
1otal
L00S
1otal
last due lor up to Z0 days 110 19 11^ L L^S L17
last due lor Z1 to S0 days 17 ^ 1^ 1 ZS 1S
last due lor S1 to 90 days 10 L 11 L LS S
last due lor more than 90 days SL 11 LB 1 9L 7L
1otal 1B9 ZS 1S7 S Z9B Z10

!"#$%&!&'(%)&*+,+-$*$,#&".&/+,%)$&0+,)&12"34&
!
[OKr mJ
!
<%-.(+)-12.)
1he Group!s lnterest rate, currency and equlty exposures are subect to market rlsk. Market rlsk depends on general and speclllc changes ln
market condltlons.

1he Group uses both conventlonal rlsk measures and sophlstlcated lnternal mathematlcal and statlstlcal measures, such as ValueatPlsk
[VaPJ, to calculate lts market rlsk. VaP ls a statlstlcal measure ol the maxlmum loss that the Group may lncur on lts portlollos over a certaln
perlod ol tlme at a certaln conlldence level. VaP quantllles the posslble loss under normal market condltlons. One ol the maor strengths ol
thls measure ls that lt provldes an aggregate measurement ol all rlsk types that lactors ln the correlatlon structure ol the llnanclal markets.

Market rlsk conslsts ol three elements.
! lnterest rate rlsk, whlch ls the rlsk ol losses because ol changes ln lnterest rates
! Lxchange rate rlsk, whlch ls the rlsk ol losses on the Group's posltlons ln lorelgn currency because ol changes ln exchange rates
! Lqulty market rlsk, whlch ls the rlsk ol losses because ol changes ln equlty prlces

1he table below shows the market rlsk ol the Oanske Eank Group at the end ol L00S and L00S calculated on the basls ol conventlonal rlsk
measures.
!
<%-.(+)-12.) L00S L00S
lnterest rate rlsk 9^S S0B
Lqulty market rlsk, llsted shares 1,S11 1,17Z
Lqulty market rlsk, unllsted shares Z,1BS Z,ZB1
lorelgn exchange lndlcator L B S

1he exchange rate rlsk, whlch ls measured on the basls ol Oanlsh kroner, was modest throughout L00S. At the end ol the year, the rlsk was
OKr7.Sm uslng lorelgn exchange lndlcator L ol the Oanlsh lBA [L00S. OKrSmJ. 1he lndlcator quantllles the exchange rate rlsk and expresses
at a conlldence level ol 99%, the maxlmum loss the Group would lncur, assumlng that lt dld not change lts currency posltlons ln the course ol
the lollowlng 10 days.

1he breakdown ol lnterest rate rlsk by maturlty below ls calculated at yearend on the basls ol a change ln lnterest rates ol one percentage
polnt.
!
< 1 year 1Z years Z7 years 711 years > 11 years 1otal
lnterest rate rlsk L00S 1,LS1 SS 9BL 71 SS0 9^S
lnterest rate rlsk L00S LB ZS1 11Z 11Z ZSS S0B

At the end ol L00S, the Group!s value at rlsk amounted to OKr1B1m [L00S. OKrL0ZmJ. 1he amount ls the maxlmum amount that the Group
would lose at a conlldence level ol 99%, assumlng that the exposure was malntalned lor 10 days. 1he Group!s value at rlsk re
malned modest throughout L00S. 1he table below shows the Group!s 10day value at rlsk at a conlldence level ol 99%, whlch ls used lor
measurlng the Group!s capltal requlrement. 1he table breaks down the value at rlsk by rlsk type, and lt shows the dlverslllcatlon galn ol uslng
VaP as an lnstrument to measure rlsk, lnstead ol assesslng the varlous rlsks lndlvldually.
!
L00S L00S
=0)-12.)'%+(9#-0) Avg. VaP Mlnlmum VaP Maxlmum VaP Oec. Z1 Avg. VaP Mlnlmum VaP Maxlmum VaP Oec. Z1
lnterest rate 170 1Z1 LS9 B^ 1L1 7S L1B 1ZL
Lxchange rate 1^ 19 1L 10 1S 10 1S 7
Lqulty market 199 1L1 ^LB 1S7 1Z^ BS 1SL 1ZS
Olverslllcatlon galn 11S 1LS 1SB B0 91 SS 10Z 71
1otal VaP LS7 1^S SZ1 1B1 179 10S L9L L0Z

statlstlcally
,
!"#$%&!&'(%)&*+,+-$*$,#&".&/+,%)$&0+,)&12"34&
!
[OKr mJ
!
=%'.)+(2+1&9)%&/)2+-(22)+(2+1&9)
1he Group conducts back tests on a dally basls to document that lnternal models used to measure market rlsk are sulllclently rellable. Eack
tests compare the losses calculated by the model wlth actual losses lncurred and hypothetlcal losses assumlng unchanged exposure and
changes ln market prlces.

1he Group conducts stress tests and scenarlo analyses to measure lts rlsk ol loss under unusual market condltlons.

Btress tests based on worstcase scenarlos usually lnvolve a comblnatlon ol hlstorlcal events, whereas ad hoc scenarlos may rellect current
or luture events.

1he table below shows the ellect on prollts ol extreme, but not necessarlly very llkely, shocks to current posltlons. 1he analysls was conducted
on the basls ol a stress test wlth a change ln lnterest rates ol +/L% as recommended by the Easel Commlttee. 1he Group comblned thls
scenarlo wlth a lall ln equlty prlces ol L0% and changes ln exchange rates ol +/10%.
!
Plsk category Change ln lactors Lllect on prollts L00S Lllect on prollts L00S
Lqulty market L0% SZZ ^B^
Lxchange rate +10/10% 7S/+7S LS/+LS
lnterest rate +L/L% ^SL/+SSS 1,9LB/+L,S^Z

!"#$%&!&'(%)&*+,+-$*$,#&".&/+,%)$&0+,)&12"34&
!
[OKr mJ
!
>1?*1/1+0)-12.)
Llquldlty rlsk ls dellned as the rlsk ol losses because
! the Group!s lundlng costs lncrease more than expected
! lack ol lundlng prevents the Group lrom establlshlng new buslness
! lack ol lundlng wlll ultlmately prevent the Group lrom meetlng lts obllgatlons

Llquldlty management at the Oanske Eank Group ls based on monltorlng and managlng operatlonal and structural llquldlty rlsks ln varlous
scenarlos.

1he operatlonal llquldlty rlsk ol the Group ls managed on the basls ol llmlts approved by the management. 1hese llmlts requlre that the Group!s
shortterm llquldlty be posltlve. Llquldlty ls determlned on the basls ol the Group!s known luture recelpts and payments under transactlons
already entered lnto.

1he management ol operatlonal llquldlty rlsk alms prlmarlly at ensurlng that the Group always has a llquldlty buller that ls able, ln the short
term, to absorb the net ellects ol transactlons made and expected changes ln llquldlty.

1he table below breaks down the llnanclal assets and llabllltles ol the Group by contractual due date.
!
@1&%&'1%")%22(+2)
L00S 0Z months Z1L months 1S years > S years 1otal
Cash ln hand and demand deposlts wlth central banks 1L,Z19 1L,Z19
Oue lrom credlt lnstltutlons and central banks LSL,L91 19,^^9 L,7L1 B07 L7S,LSB
Eonds 71,7B1 ZS,S1Z 1^S,790 BS,7SS ZZ9,B^0
Oerlvatlves wlth posltlve lalr value LS,^0B LS,S70 ^S,SLB S0,9LZ 1^9,SL9
Eank loans and advances S^0,1B^ 170,79Z 1L9,907 L1Z,^ZB 1,0S^,ZLL
Mortgage loans 1S,B79 10,991 S9,^^L S1S,L7L S0L,SB^
1otal 917,BSL LS^,Z1S ZB^,^BB BS7,19S L,^ZZ,BSL
L00S
Cash ln hand and demand deposlts wlth central banks 1Z,BB1 1Z,BB1
Oue lrom credlt lnstltutlons and central banks LSB,SBB 1L,^^7 L,0S0 1,BZZ L7^,91B
Eonds SZ,^ZB ^S,BL^ 1L0,09S 7Z,SSS L9L,91L
Oerlvatlves wlth posltlve lalr value SB,SSL 1^,S09 ZS,01B Z9,709 1^B,BBB
Eank loans and advances ^10,7BS 1Z0,S19 110,SSZ 177,S^S BL9,S0Z
Mortgage loans 19,ZS1 11,^1^ S^,SS7 ^7Z,SS0 SS9,09L
1otal B1^,S9S L1^,91Z ZZZ,ZBZ 7SS,^0Z L,1L9,L9^

!"#$% !&'(%)&*+,+-$*$,#&".&/+,%)$&0+,)&12"34&
[OKr mJ
@1&%&'1%")"1%,1"1+1(2)
L00S 0Z months Z1L months 1S years > S years 1otal
Oue to credlt lnstltutlons and central banks S^L,BSS L1,SS0 1ZZ SS^,S^9
Oeposlts SS1,^10 Z0,101 Z,7SS 7,S7S 70L,9^Z
1radlng portlollo llabllltles ^S,^9S ZS,SB9 7S,7ZL 7B,S07 LZS,SL^
lssued mortgage bonds SB,L01 1L9,BZZ 17B,19Z 117,990 ^B^,L17
Other llabllltles SL,71Z SS,BB0 1S9,9SZ 1S,190 L9Z,7ZS
Bubordlnated debt B,SLS ^0,^LS ^B,9S1
1otal 1,ZS0,SBS LB^,0SZ ^LS,L9L LS9,BB9 L,ZZ0,9L0
L00S
Oue to credlt lnstltutlons and central banks ^L^,ZSB Z1,710 1S,9^S Z,Z^9 ^7S,ZSZ
Oeposlts S0B,0Z0 11,97S Z,BZL 7,Z^7 SZ1,1B^
1radlng portlollo llabllltles 11S,^7^ 1B,1Z0 ZB,B9B ZB,S^0 L1L,0^L
lssued mortgage bonds 79,ZS9 11Z,1S9 1Z7,000 109,1^7 ^ZB,S7S
Other llabllltles 1L^,Z71 Z7,0S^ 79,^^9 10,L1S LS1,099
Bubordlnated debt S,S9S ZB,L^1 ^Z,BZ7
1otal 1,ZSL,S9L L1L,0^B LB1,7L1 L0S,BZ9 L,0SZ,L00
A+-*'+*-%")"1?*1/1+0)-12.)
1he Group manages lts structural llquldlty rlsk on the basls ol a set ol targets to mlnlmlse the longterm llquldlty mlsmatch and to ensure that
lt does not create an unnecessarlly large need lor lundlng ln the luture. 1he Group uses gap analyses to manage the structural llquldlty rlsk.
1hls type ol analysls ls based on a breakdown by maturlty ol assets, llabllltles and ollbalancesheet ltems and on the contractual due dates ol
the products. vhen calculatlng structural llquldlty rlsk, the Group takes lnto account that some balance sheet ltems ln lact have maturltles
that devlate materlally lrom the contractual due dates.
Oecember Z1 [OKr bnJ < 1 month 1Z months Z1L months 1S years S10 years >10 years
L00S S^ ZS S Z1 9Z B1
L00S 7Z 9 B S0 10L SL
!"#$%&!&'(%)&*+,+-$*$,#&".&/+,%)$&0+,)&12"34&
!

!
>14()1&2*-%&'()-12.)
1he Group!s llle lnsurance rlsk conslsts ol llnanclal rlsk [market rlsk and credlt rlskJ and actual lnsurance rlsks attrlbutable to Oanlca lenslon.

1he)llnanclal rlsk)ls related to the rlsk that, ln the event ol modest returns on customers! lnvestment securltles, the collectlve bonus potentlal
and the bonus potentlal ol paldup pollcles are lnsulllclent to cover customers! guaranteed benellts.

1he most lmportant lactor as regards conventlonal llle lnsurance products ls the relatlon between lnvestment securltles and llle lnsurance
obllgatlons. ll the year!s returns on customers! lnvestment securltles are lnadequate to cover the customers! guaranteed return, the neces
sary strengthenlng ol llle lnsurance obllgatlons, etc., the shortlall ls covered llrst by the collectlve bonus potentlal and then by the bonus poten
tlal ol paldup pollcles. ll these bonus potentlals are lnsulllclent to cover the shortlall, lunds are allocated lrom shareholders! equlty.

1o ensure correspondence between the return on customers! lnvestment securltles and the customers! guaranteed benellts, the Group monl
tors the llnanclal rlsk and has set llmlts lor maxlmum market and lnterest rate rlsks. Btress tests are conducted regularly to ensure that
Oanlca ls able to wlthstand a lall ln equlty prlces ol Z0%, a decllne ol S0% or an lncrease ol L.S percentage polnts ln lnterest rates.

1he credlt rlsk ol Oanlca!s bond portlollo ls modest slnce the portlollo conslsts prlmarlly ol government and mortgage bonds rated AAA by the
lnternatlonal ratlng agencles. lndlvldual rlsks are llmlted, and securlty has been provlded lor the value ol derlvatlves hedglng lnterest rate rlsk.

Llquldlty rlsk ls also modest. Large parts ol the lnvestment securltles conslst ol ultrallquld llsted bonds and llquld lorelgn equltles.

lnsurance rlsks are llnked to trends ln mortallty, dlsablllty, crltlcal lllness, etc. lor example, an lncrease ln llle expectancy allects the tlme
durlng whlch benellts are payable under certaln penslon plans, whereas the trends ln mortallty, slckness and recoverles allect llle lnsurance
and dlsablllty benellts.

1he varlous rlsk elements are subect to ongolng actuarlal assessment lor the purpose ol calculatlng lnsurance obllgatlons and maklng rele
vant buslness adustments. Llle lnsurance obllgatlons are calculated accordlng to expected luture mortallty. Llle lnsurance expenses are
covered by the collectlve bonus potentlal. ll the bonus potentlal ls lnsulllclent to cover all expenses, lunds wlll be allocated lrom shareholders!
equlty.

As regards dlsablllty lnsurance, lnsurance obllgatlons are calculated on estlmates ol recoverles and ol reopenlngs ol old clalms. Lstlmates are
based on data lrom Oanlca!s portlollo ol lnsurance contracts, and they are updated regularly. 1he results ol Oanlca!s health and accldent
buslness, crltlcal lllness and other types ol buslness lorm part ol the prollt lor the year. 1he trend ln the results ol these types ol buslness ls
managed prlmarlly through premlum adustments.

1o reduce the lnsurance rlsk, a small portlon ol the rlsks related to mortallty and dlsablllty ls covered by relnsurance arrangements. lurther
more, Oanlca has hedged the rlsk ol dlsasters.

!"#$%&!&'(%)&*+,+-$*$,#&".&/+,%)$&0+,)&12"34&
!

!
A(&21+171+0)%&%"0212)
1he sensltlvlty lndlcators show the ellect on Oanlca lenslon!s equlty, the collectlve bonus potentlal and the bonus potentlal ol benellts under
paldup pollcles generated by separate changes ln lnterest rates, equlty prlces, real property prlces and actuarlal assumptlons ln connectlon
wlth the calculatlon ol llle lnsurance obllgatlons. ll the bonus potentlal ls lnadequate to cover the pollcyholders! share ol the ellect, the shortlall
wlll be covered by lunds allocated lrom shareholders! equlty. !
L00S
[OKr bnJ Lllect on equlty
Maxlmum ellect on
collectlve bonus potentlal
Maxlmum ellect on bonus
potentlal ol paldup pollcles 1otal ellect
lncrease ln lnterest rates ol 0.7
ol a percentage polnt 0.1 0.7 Z.S L.7
Oecllne ln lnterest rates ol 0.7
ol a percentage polnt 0.1 1.S Z.S 1.9
Oecllne ln equlty prlces ol 1L% 0.Z ^.S ^.B
Oecllne ln real property prlces ol B% 0.1 1.1 1.L
Change ln lorelgn exchange rates
wlth a 0.S% 10day probablllty 0.^ 0.^
Loss on counterpartles ol B% 1.1 1.1
lall ln mortallty ol 10% 1.^ 0.1 1.S
lncrease ln mortallty ol 10% 1.L 0.L 1.^
lncrease ln dlsablllty ol 10% 0.L 0.L
1he llle lnsurance provlslons assume an lncrease ln llle expectancy ol nearly three years compared wlth the assumptlons made at the tlme the
pollcles were taken out [L00S. ust over two yearsJ.
1he sensltlvlty lndlcators apply to the rlsk lncurred by Oanlca lenslon only and not to the rlsk lncurred by the subsldlarles ol the lnsurance
group. A slmultaneous lncrease ln lnterest rates ol 0.7 ol a percentage polnt, a decllne ln equlty prlces ol 1L%, a decllne ln real property prlces
ol B% and a loss on counterpartles ol B% would reduce shareholders! equlty by OKr0.7bn, lncludlng the ellect on subsldlarles, and the collectlve
bonus potentlal by OKrS.1bn.!
L00S
[OKr bnJ Lllect on equlty
Maxlmum ellect on
collectlve bonus potentlal
Maxlmum ellect on bonus
potentlal ol paldup pollcles 1otal ellect
lncrease ln lnterest rates ol 0.7
ol a percentage polnt 0.1 L.0 Z.L 1.1
Oecllne ln lnterest rates ol 0.7
ol a percentage polnt 0.1 L.^ Z.1 0.S
Oecllne ln equlty prlces ol 1L% Z.1 Z.1
Oecllne ln real property prlces ol B% 0.1 1.0 1.1
Change ln lorelgn exchange rates
wlth a 0.S% 10day probablllty 0.Z 0.Z
Loss on counterpartles ol B% 0.1 1.1 1.L
lall ln mortallty ol 10% 1.S 0.1 1.7
lncrease ln mortallty ol 10% 1.^ 0.1 1.S
lncrease ln dlsablllty ol 10% 0.Z 0.Z
!
;(&21#&)-12.)
1he Group!s penslon rlsk ls the rlsk ol a penslon shortlall ln the Group!s dellned benellt plans whlch means that lt wlll have to make addltlonal
contrlbutlons to cover lts penslon obllgatlons towards current and lormer employees.

1he Group alms to reduce lts penslon rlsk on dellned benellt plans ln the same way as lt seeks to reduce other rlsks. 1he use ol llnanclal de
rlvatlves to ellmlnate part ol the lnllatlon and lnterest rate rlsks ls a cornerstone ol the Group's rlsk management. Ey matchlng expected luture
penslon benellts wlth the return on derlvatlves and the matchlng assets, the Group mlnlmlses lts penslon rlsk.

1he hlgh complexlty ol lts penslon obllgatlons means that the Group does not use lts normal llmlt structure to lollow up on penslon rlsk. ln
stead, the Group manages the market rlsk ol penslon plans on the basls ol speclal lollowup and monltorlng prlnclples, socalled buslness
obectlves. 1he Group has lormulated procedures to be lollowed ln the case ol devlatlons lrom these obectlves. Ouarterly rlsk reports lollow
up on the obectlves, and they analyse the llnanclal status ol the lndlvldual plans on the basls ol sensltlvlty analyses and the measurlng ol
ValueatPlsk [VaPJ. lurthermore, the Group has llxed llmlts lor acceptable rlsk exposure levels.

VaP ls calculated at a conlldence level ol 99.97% and a tlme horlzon ol one year. 1he calculatlon ls adusted lor lnllatlon rlsk, whlch allects
measurement ln the long term. Consequently, the llgures shown are longterm values at rlsk. At the end ol L00S, the value at rlsk [longterm
levelJ was OKr^,7S1m [L00S. OKr^,B7BmJ.

Note ZZ provldes addltlonal lnlormatlon about the Group!s dellned benellt plans.
!"#$%&!&'(%)&*+,+-$*$,#&".&/+,%)$&0+,)&12"34&
!

!
B7(&+2)%4+(-)+8(),%"%&'()28((+)/%+()
)
Oanske Eank's purchase ol Bampo Eank was approved at the end ol January L007, whlch means that Bampo Eank was not consolldated ln the
L00S accounts ol Oanske Eank. Management's report shows the prellmlnary breakdown ol the purchase prlce lnto lalr value ol net assets,
lntanglble assets and goodwlll. 1he Group wlll publlsh llnanclal hlghllghts lor L00S lor the pro lorma consolldated Group once the purchase
ls complete and Bampo Eank has presented lts accounts lor L00S and the openlng balance sheet.
)
At the end ol January, Oanske Eank Group declded to gather the actlvltles ol EG Eank and Oanske Eank Oenmark ln a slngle banklng dlvlslon
wlth the name Oanske Eank. 1he two brands have become so slmllar that there are no longer good grounds lor malntalnlng two separate
banklng operatlons. 1he change wlll mean that S0 branch olllces ol EG Eank and Oanske Eank wlll merge lnto Z0 branches durlng the sprlng.
1he merger ol the two dlvlslons ls expected to entall a oneoll expendlture ol OKrL7Sm. 1he Group expects to be able to save OKrZ00m each year
through the merger, wlth lull accountlng ellect ln L010. ln L007, the merger ls expected to be costneutral.

[OKr mJ )
!
1he accounts ol the larent Company, Oanske Eank A/B, are prepared ln accordance wlth the Oanlsh llnanclal Euslness Act and the executlve
order ol the Oanlsh lBA on llnanclal reports ol credlt lnstltutlons, etc. 1he rules are ldentlcal to the Group!s valuatlon prlnclples under llPB
wlth the exceptlons that domlclle property owned by the larent Company ls recognlsed at lts estlmated lalr value and that the corrldor method
ls not applled to penslon obllgatlons. Holdlngs ln subsldlary undertaklngs are valued uslng the equlty method, and tax payable by the undertak
lngs ls expensed under lncome lrom assoclated and subsldlary undertaklngs. 1he lormat ol the larent Company accounts ls not ldentlcal to
the lormat ol the consolldated accounts prepared ln accordance wlth llPB.

As the Group!s accountlng pollcles explaln, the recognltlon ol certaln lnsurance contracts was adusted wlth ellect lrom January 1, L00S.
Comparatlve llgures lor L00^ and L00S have been restated. 1he adustment reduced the larent Company!s lncome lrom assoclated and
subsldlary undertaklngs by OKr199m ln L00S and OKr1Z7m ln L00S. 1he new accountlng pollcles that took ellect on January 1, L00S,
lowered holdlngs ln assoclated undertaklngs and shareholders! equlty by OKr^L1m.

1he table shows the dlllerences between the consolldated accounts presented ln accordance wlth llPB and the data reported to the Oanlsh
lBA wlth respect to net prollt and shareholders! equlty.

!
Bhareholders' Bhareholders'
Net prollt Net prollt equlty equlty
L00S L00S Oec. Z1, L00S Oec. Z1, L00S
Group accounts accordlng to llPB 1Z,S^S 1L,SBS 9S,17L 7^,0B9
Oomlclle property Z^ L0^ 1,Z^L 990
lenslon obllgatlons SSB ^LL Z^ SZ^
1ax ellect 1Z1 1S^ B 1^1
Mlnorlty lnterests 1L ^ Z,001 L,99L
Group accounts accordlng to the rules ol the Oanlsh lBA 1Z,9S0 1L,L09 99,SS7 77,S7B
Mlnorlty lnterests accordlng to the rules ol the Oanlsh lBA Z,0^B Z,0^0
larent company accounts accordlng to the rules ol
the Oanlsh lBA 1Z,9S0 1L,L09 9S,S09 7^,SZB

Accordlng to the rules ol the Oanlsh lBA, mlnorlty lnterests lnclude speclal reserves ln assoclated undertaklngs consolldated on a pro
rata

basls.

Annual accounts of the Parent Company, Danske Bank A/S
!"#$%&'()*)&%&")'!'+*"(,&'-*",'./0'
L lnterest lncome S^,S7S SL,7SS
Z lnterest expense SZ,01S ZB,B1^
Net lnterest lncome 11,SS1 1Z,9^L
Olvldends lrom shares, etc. 117 70
^ lee and commlsslon lncome B,ZS7 7,B9S
lees and commlsslons pald 1,70^ 1,^^7
Net lnterest and lee lncome 1B,^Z1 L0,^S1
S Value adustments ^,1S^ 1SS
Other operatlng lncome 1,SS^ 1,Z77
S Btall costs and admlnlstratlve expenses 11,L97 11,1^^
Amortlsatlon and depreclatlon 1,S00 1,^^7
Other operatlng expenses
lmpalrment charges lor loans and advances, etc. L07 1,1SL
lncome lrom assoclated and subsldlary undertaklngs S,S71 ^,90B
lrollt belore tax 17,1Z0 1S,^BL
B 1ax Z,170 Z,L7Z
Net prollt lor the year 1Z,9S0 1L,L09
lroposed prollt allocatlon
Lqulty method reserve S,7S0 ^,Z01
Olvldends lor L00S S,^1S S,ZBZ
lrollt brought lorward L,79^ 1,SLS
1otal 1Z,9S0 1L,L09
-*1*"#&'(2&&)'!'+*"(,&'-*",'./0'
ABBL1B
Cash ln hand and demand deposlts wlth central banks ^,9^S B,77S
9 Oue lrom credlt lnstltutlons and central banks ZSL,BSZ Z7B,^S^
10 Loans and other amounts due at amortlsed cost B1B,SZ0 S^1,Z07
Eonds at lalr value Z9S,LSL ZZ1,0S^
1S Eonds at amortlsed cost LLZ LLZ
Bhares, etc. Z,S9S ^,77L
Holdlngs ln assoclated undertaklngs BSZ 97^
Holdlngs ln subsldlary undertaklngs SS,S01 S0,LZS
1S Assets under pooled schemes ZB,LSL ZS,1SS
lntanglble assets S,^Z9 S,1^B
Land and bulldlngs ^,^BZ ^,070
1L lnvestment property BZ 11L
1L Oomlclle property ^,^00 Z,9SB
1Z Other tanglble assets Z,^^S L,9ZB
Current tax assets L0 ^S
1^ Oelerred tax assets ^1
Assets temporarlly taken over 9
17 Other assets 1SL,090 1S0,7SZ
lrepayments 1,B97 L,1^0
1otal assets 1,BS9,S07 1,SZB,1LS
LlAElLl1lLB ANO LOl1/
AMON1B OL
1B Oue to credlt lnstltutlons and central banks S90,L11 ^B7,0ZZ
19 Oeposlts and other amounts due SS0,7L^ SL^,SS7
Oeposlts under pooled schemes ^0,0^S Z7,7L1
L0 lssued mortgage bonds at amortlsed cost L77,B^B LZS,119
Current tax llabllltles 11S ZB0
L1 Other llabllltles LSS,SBB LZL,S0^
Oelerred lncome BL1 SBL
1otal amounts due 1,7LS,^S^ 1,S1B,09S
lPOVlBlONB lOP LlAElLl1lLB
lrovlslons lor penslons and slmllar obllgatlons ^SS S9B
1^ lrovlslons lor delerred tax B1Z S^0
11 lrovlslons lor losses on guarantees 19B 17Z
Other provlslons lor llabllltles ^B 1^^
1otal provlslons lor llabllltles 1,S1S 1,SSS
BEOPOlNA1LO OLE1
LL Bubordlnated debt ^S,0L9 ^Z,BZ7
BHAPLHOLOLPB' LOl1/
Bhare capltal S,9BB S,ZBZ
Accumulated value adustments 99B SSL
Lqulty method reserve 1S,SS0 10,B10
lrollt brought lorward 71,9SZ SS,79Z
1otal shareholders' equlty 9S,S09 7^,SZB
lncludlng proposed dlvldends S,^1S S,ZBZ
1otal llabllltles and equlty 1,BS9,S07 1,SZB,1LS
3*45)*1'!'+*"(,&'-*",'./0'

[OKr mJ
!
!"#$%"&'
Bhare lorelgn currency Pevaluatlon Lqulty method lrollt brought 1otal 1otal
capltal translatlon reserve reserve reserve lorward L00S L00S
Bhareholders' equlty at January 1 S,ZBZ 1L SS^ 11,LZ1 SS,79Z 7S,0S9 S7,SS9
Adustment ol accountlng pollcles
lor lnsurance contracts wrltten by
subsldlary undertaklngs ^L1 ^L1 LB^
at January 1 S,ZBZ 1L SS^ 10,B10 SS,79Z 7^,SZB S7,L7S
1ranslatlon ol lorelgn unlts 171 171 70S
lorelgn unlt hedges 1^9 1^9 SBS
lalr value adustment ol domlclle property ZS1 ZL ZBZ L1S
1ax on entrles on shareholders' equlty 1B 1B 9^
ln the lncome statement LL ZS1 ZL 1B ZB7 1^1
Net prollt lor the year S,71B B,L^L 1Z,9S0 1L,L09
1otal lncome LL ZS1 S,7S0 B,LL^ 1^,Z^7 1L,ZS0
Olvldends pald S,LS^ S,LS^ ^,9L9
lncrease ln share capltal S0S 1^,0SS 1^,S71
Lxpenses lor lncrease ln share capltal 1ZL 1ZL
Acqulsltlon ol own shares 19,9LS 19,9LS 1S,B97
Bale ol own shares 19,001 19,001 1S,S17
Bharebased payment 1S^ 1S^ 10^
Lmployee shares 11B
Peversal on acqulsltlon L7 L7
Bhareholders' equlty at Oecember Z1 S,9BB 10 9BB 1S,SS0 71,9SZ 9S,S09 7^,SZB
At the end ol L00S, the share capltal was made up ol S9B,B0^,L7S shares ol a nomlnal value ol OKr10 each. All shares carry the same
rlghts, there ls thus only one class ol shares. lnlormatlon about the holders ol Oanske Eank shares ls avallable ln Management!s report.
()*'+,"-.+',.&/'01'%,.'2"-.*%'!34#"*15'6"*+7.'8"*7'9:;' Nomlnal lrop. ol Bales/purchase
Number ol value share capltal prlce
shares [OKr mJ [%J [OKr mJ
Holdlng at January 1, L00S B,ZL^,1BS BZ 1.17
Acqulred ln L00S 97,Z7^,77L 97^ 1S.LS 1S,7S7
Bold ln L00S 9S,7^S,S9B 9S7 1S.1S 1S,S7L
Holdlng at Oecember Z1, L00S B,9SL,LS9 90 1.^0
Acqulred ln L00S BS,^ZL,^S9 BS^ 1L.LZ 19,71L
Bold ln L00S BZ,0^S,SS1 BZ0 11.BB 1B,910
Holdlng at Oecember Z1, L00S 11,ZZB,1S7 11^ 1.SZ
Acqulsltlons ln L00S comprlsed shares lor the tradlng portlollo and lnvestments on behall ol customers.
6"*+7.'8"*7'+,"-.+',.&/'01'+<0+$/$"-1'<*/.-%"7$*=+' Nomlnal lrop. ol Bales/purchase
Number ol value share capltal prlce
shares [OKr mJ [%J [OKr mJ
Holdlng at January 1, L00S L,1B9,S70 LL 0.Z1
Acqulred ln L00S 701,SB1 7 0.11 1^0
Bold ln L00S L^^,000 L 0.0^ ^S
Holdlng at Oecember Z1, L00S L,S^7,1S1 L7 0.^1
Acqulred ln L00S 917,Z00 9 0.1Z L1^
Bold ln L00S ZBS,1Z1 ^ 0.0S 91
Holdlng at Oecember Z1, L00S Z,179,ZL0 ZL 0.^S
Acqulsltlons ln L00S and L00S conslsted excluslvely ol lnvestments on behall ol customers.
3*45)*1 !'+*"(,&'-*",'./0'
[OKr mJ L00S L00S
!"#$%"&'0"+.'"*/'+3&>.*?1'-"%$3'
Bhareholders' equlty 9S,S09 7^,SZB
Adustment ol accountlng pollcles L00S, reversal ^L1
lntanglble assets S,^Z9 S,1^7
Oelerred tax assets ^1
Core [tler 1J capltal, less statutory deductlons BZ,SSS S1,BL^
Hybrld core capltal 11,^19 S,Z7S
Core [tler 1J capltal, lncludlng hybrld core capltal, less statutory deductlons 9S,0BS SB,L00
Bubordlnated debt, excludlng hybrld core capltal Z^,707 ZS,9SZ
Btatutory deductlon lor lnsurance subsldlarles ^,L97 B,LS^
Other statutory deductlons Z7 ZB
Capltal base, less statutory deductlons 1LS,^^S 9S,SLS
Plskwelghted ltems
not lncluded ln tradlng portlollo 71L,S9^ SB1,L7^
wlth market rlsk ln tradlng portlollo SB,^7Z SS,SBZ
1otal rlskwelghted ltems 7B1,0S7 SZS,9S7

Core [tler 1J capltal ratlo, % 10.7 9.7
Core [tler 1J capltal ratlo, lncludlng hybrld core capltal, % 1L.L 10.7
Bolvency ratlo, % 1S.L 1S.L
Mlnlmum capltal requlrement ol B% ol rlskwelghted ltems SL,^BS S0,9S7
Capltal base and solvency ratlo lor L00S are calculated ln accordance wlth the rules ol the Oanlsh lBA ln lorce at that tlme.
6$)&('!'+*"(,&'-*",'./0'

!
1 @.%'$*%.-.+%'"*/'A..'$*?34.'"*/'>"&<.'"/B<+%4.*%+'0-37.*'/3)*'01'0<+$*.++'+.=4.*%'
Eanklng Actlvltles 1B,SB9 17,^SZ
Oanske Markets L,SZ^ L,ZSS
Oanske Capltal S91 S^^
Other SB1 17^
1otal LL,S9S L0,SLS

Eroken down by geographlcal segment
Oenmark 1B,1B9 1S,SB9
llnland 171 1^7
Germany LSL LLL
Norway 170 109
loland LZ
Bweden L,9^L L,Z7Z
K BZB 9SL
B LL^
1otal LL,S9S L0,SLS

Geographlcal segmentatlon ls based on the locatlon where the lndlvldual transactlons are recorded. 1he llgures lor Oenmark lnclude
llnance costs related to lnvestments ln lorelgn actlvltles.
!
L C*%.-.+%'$*?34.'
Peverse transactlons wlth credlt lnstltutlons and central banks ^,B7B S,L7Z
Credlt lnstltutlons and central banks 1^,S^^ 10,77S
Peverse loans B,7ZZ S,000
Loans, advances and other amounts due LZ,Z99 17,S0S
Eonds B,ZSZ 1L,0ZZ
Oerlvatlves ^,7^S L,1SZ
Currency contracts S,^9Z Z,L07
lnterest rate contracts 7^B 1,0^^
Other lnterest lncome L^ S
1otal S^,S7S SL,7SS
!
Z C*%.-.+%'.D#.*+.'
Pepo transactlons wlth credlt lnstltutlons and central banks Z,^B1 ^,SSL
Credlt lnstltutlons and central banks L^,S^L 17,^S9
Pepo deposlts Z,1S1 1,S70
Oeposlts and other amounts due B,SBL S,7S7
lssued bonds 10,79S S,91L
Bubordlnated debt L,07S L,01L
Other lnterest expenses 1B7 ZLL
1otal SZ,01S ZB,B1^
!
^ E..'"*/'?344$++$3*'$*?34.'
Becurltles tradlng and custody account lees ^,0^B Z,^B^
layment servlces lees 1,Z7^ 1,ZZS
Loan lees 1,Z7Z 1,L^L
Guarantee commlsslons 71Z 77S
Other lees and commlsslons B^9 1,0S0
1otal B,ZS7 7,B9S

6$)&( !'+*"(,&'-*",'./0'
S F"&<.'"/B<+%4.*%+'
Loans and advances at lalr value 1,110 ZLZ
Eonds 971 L,ZL0
Bhares, etc. 7^7 BLS
lnvestment property ^B 100
Currency 9Z1 1,19L
Oerlvatlves 1,9BS 1,910
Assets under pooled schemes 1,^S0 ^,LBS
Oeposlts under pooled schemes 1,S97 ^,^SL
Other assets B0^ Z9B
Other llabllltles 1,BS7 L,0BB
1otal ^,1S^ 1SS
S ;%"AA'?3+%+'"*/'"/4$*$+%-"%$>.'.D#.*+.+'
Pemuneratlon ol the Lxecutlve Eoard and the Eoard ol Olrectors
Lxecutlve Eoard 1^ 10
Eoard ol Olrectors 9 B
1otal LZ 1B
Btall costs
Balarles S,LZ^ S,1S0
lenslons SS^ 9S0
llnanclal servlces employer tax, etc. B79 7Z1
1otal 7,S77 7,B^1
Other admlnlstratlve expenses Z,S97 Z,LBS
1otal stall costs and admlnlstratlve expenses 11,L97 11,1^^
Number ol lulltlme equlvalent stall [avg.J 1Z,^^S 1Z,LS0
1he consolldated accounts [note BJ contaln addltlonal lnlormatlon about remuneratlon ol the Lxecutlve Eoard and the Eoard ol Olrectors.
7 9</$%'A..+'
1otal lees to the accountlng llrms elected by the general meetlng
whlch perlorm the statutory audlt 11 10
lees lor nonaudlt servlces lncluded ln precedlng ltem ^ Z
B G"D
Calculated tax charge lor the year L,917 L,7SL
Other delerred tax ZZS S0S
Adustment ol prloryear tax charge BZ L0
Lowerlng ol tax rate L^
1ax on lmpalrment charges lor loans and advances, etc. L0
1otal Z,170 Z,L7Z
Lllectlve tax rate % %
Oanlsh tax rate LB.0 LB.0
Nontaxable lncome and nondeductlble expenses 0.7 0.L
Olllerence between tax rates ol lorelgn unlts and Oanlsh tax rate 0.Z 0.S
Adustment ol prloryear tax charge 0.7 0.L
Lowerlng ol tax rate 0.L
1ax on lmpalrment charges lor loans and advances, etc. 0.L
Lllectlve tax rate LS.9 LB.S
ol whlch lncluded under lncome lrom assoclated and subsldlary undertaklngs B.^ 7.7
1otal 1B.S L0.B
6$)&( !'+*"(,&'-*",'./0'
9 6<.'A-34'?-./$%'$*+%$%<%$3*+'"*/'?.*%-"&'0"*7+'
Oemand deposlts LL,^LS L^,1ZS
p to Z months L99,9B9 ZL0,7S9
lrom Z months to 1 year LL,170 L0,1LB
lrom 1 to S years 1S,SLZ 9,SBB
Over S years L,7SS Z,7^Z
1otal ZSL,BSZ Z7B,^S^
Oue lrom credlt lnstltutlons L9S,90^ L7S,17L
1erm deposlts wlth central banks SS,9S9 10L,L9L
1otal ZSL,BSZ Z7B,^S^
lncludlng reverse transactlons 1SZ,BSL 1BB,BS7
10 H3"*+'"*/'3%,.-'"43<*%+'/<.'"%'"43-%$+./'?3+%'
Oemand deposlts S9,07S S7,LBB
p to Z months ^LL,B9L ZL0,^S^
lrom Z months to 1 year 11S,B17 B7,B00
lrom 1 to S years B1,ZBZ S9,71^
Over S years 1L9,ZSL 10S,0S1
1otal B1B,SZ0 S^1,Z07
lncludlng reverse transactlons L9^,SSS L09,7ZL
H3"*+'"*/'=<"-"*%..+'0-37.*'/3)*'01'+.?%3-'"*/'$*/<+%-1' % %
lubllc sector Z.L ^.0
Corporate sector
Agrlculture, huntlng and lorestry 1.0 1.1
llsherles 0.0 0.0
Manulacturlng lndustrles, extractlon ol
raw materlals, utllltles 9.0 10.L
Eulldlng and constructlon 1.L 1.1
1rade, restaurants and hotels ^.0 ^.Z
1ransport, mall and telephone L.7 L.S
Credlt, llnance and lnsurance ^9.S ^7.Z
lroperty admlnlstratlon, purchase and sale, and buslness servlces 9.B B.B
Other 0.0 0.0
1otal corporate sector 77.L 7S.Z
Petall customers 19.S L0.7
1otal 100.0 100.0
6$)&( !'+*"(,&'-*",'./0'
Note [OKr mJ
11 C4#"$-4.*%'?,"-=.+'A3-'&3"*+5'"/>"*?.+'
"*/'=<"-"*%..+5'.%?I'
Loans, advances Loans, advances Other Other
and guarantees, and guarantees, amounts due, amounts due,
lndlvldual collectlve lndlvldual collectlve
lmpalrment lmpalrment lmpalrment lmpalrment 1otal
lmpalrment charges at January 1, L00S Z,LB7 77Z 9 ^,0S9
lmpalrment charges durlng the year 1,1L^ ZS1 1,^7S
Peversal ol lmpalrment charges 1,S7S ^SS 7 L,1Z9
Other changes LB ^B 1 7S
lmpalrment charges at Oecember Z1, L00S L,7SZ 71S 1 Z,^B0

lmpalrment charges at January 1, L00S ^,SSB 1,0^7 9 S,SL^
lmpalrment charges durlng the year L,190 LSB L,^^B
Peversal ol lmpalrment charges Z,SLB SZZ ^,0S1
Other changes S7 1 SB
lmpalrment charges at Oecember Z1, L00S Z,LB7 77Z 9 ^,0S9

L00S L00S
1otal loans, advances and other amounts due [lncludlng portlollosJ wlth obectlve evldence ol lm
palrment belore lmpalrment [the amount does not lnclude loans, advances and other amounts due
recognlsed at nllJ 1Z,711 19,0SL
Carrylng amount net ol lmpalrment charges 11,7SS 17,01S
1L C*>.+%4.*%'"*/'/34$?$&.'#-3#.-%1'
L00S L00S
lnvestment Oomlclle lnvestment Oomlclle
property property property property
lalr value/revaluatlon at January 1 11L Z,9SB S^B ^,L09
Addltlons, lncludlng property lmprovement expendlture Z 7 1Z S
Olsposals ^L ^^ ^S7 SS1
Amortlsatlon and depreclatlon L7 L9
Value adustment not recognlsed ln the lncome statement ZS1 1BB
Value adustment recognlsed ln the lncome statement 10 1SS B S^
Other changes 11 B1
lalr value/revaluatlon at Oecember Z1 BZ ^,^00 11L Z,9SB
1he value ol real property ls assessed by the Group's valuers.
6$)&( !'+*"(,&'-*",'./0'
1Z (%,.-'%"*=$0&.'"++.%+'
Cost at January 1 S,S00 ^,9BL
lorelgn currency translatlon S L
Addltlons, lncludlng property lmprovement expendlture 1,S91 1,SSB
Olsposals 9SB 9^B
1ranslers to other ltems
Cost at Oecember Z1 S,ZZB S,S00
Oepreclatlon and lmpalrment charges at January 1 L,SSL L,S1S
lorelgn currency translatlon 1 7
Oepreclatlon 777 70S
lmpalrment charges
Oepreclatlon ol and lmpalrment charges lor assets sold S^S SSL
Peversal ol prloryear lmpalrment charges
Oepreclatlon and lmpalrment charges at Oecember Z1 L,B9Z L,SSL
Carrylng amount at Oecember Z1 Z,^^S L,9ZB
1^ !,"*=.'$*'/.A.--./'%"D'
L00S At Jan. 1
lorelgn currency
translatlon
Pecognlsed ln
prollt lor the year
Pecognlsed ln
shareholders' equlty At Oec. Z1
lntanglble assets 1SB 7B LZS
1anglble assets 9Z9 1LS 1,0SS
Becurltles 1BZ Z7 LL0
lrovlslons lor obllgatlons ZSZ 119 LZ^
1ax loss carrylorwards
Other SL LB Z^
1otal ^99 Z1^ B1Z
lncludlng adustment ol prloryear tax charges LL
L00S
lntanglble assets ^7 111 1SB
1anglble assets ZBL SS7 9Z9
Becurltles Z^ 1^9 1BZ
lrovlslons lor obllgatlons S9L LZ9 ZSZ
1ax loss carrylorwards
Other 1Z7 11S ^0 SL
1otal ZZ^ B7Z ^0 ^99
lncludlng adustment ol prloryear tax charges Z9L
6.A.--./'%"D'
Oelerred tax assets ^1
lrovlslons lor delerred tax B1Z S^0
Oelerred tax, net B1Z ^99
1S 83*/+'"%'"43-%$+./'?3+%'
1he lalr value ol heldtomaturlty assets totals LL^ LL^
1he carrylng amount ol heldtomaturlty assets totals LLZ LLZ
6$)&( !'+*"(,&'-*",'./0'
1S 9++.%+'<*/.-'#33&./'+?,.4.+'
Eonds at lalr value L1,10S L1,7^7
Bhares 1L,9SL 1L,1LZ
nlt trust certlllcates ^,71B L,S^Z
Cash deposlts, etc. 1,LS1 1,L0B
1otal assets belore ellmlnatlon ^0,0^S Z7,7L1
Own shares BLS S99
Other lnternal balances 9SB 9S7
1otal ZB,LSL ZS,1SS
17 (%,.-'"++.%+'
losltlve lalr value ol derlvatlves 1^7,7LL 1^7,Z19
Other assets 1^,ZSB 1Z,^^^
1otal 1SL,090 1S0,7SZ
1B 6<.'%3'?-./$%'$*+%$%<%$3*+'"*/'?.*%-"&'0"*7+'
Amounts payable on demand ^7,0^L ^1,S09
p to Z months SL1,SBS ^LZ,7S1
lrom Z months to 1 year L1,ZS^ L1,1ZL
lrom 1 to S years 1L9 SZ7
Over S years ^
1otal S90,L11 ^B7,0ZZ
lncludlng repo transactlons 1Z9,1Z0 BS,Z^S
19 6.#3+$%+'"*/'3%,.-'"43<*%+'/<.'
On demand L7S,S9Z L^1,L70
1erm deposlts S,Z9Z S,SL7
1lme deposlts 1S7,LS7 1S1,BLB
Pepo deposlts 10^,0^^ 9S,BBL
Bpeclal deposlts 1B,^L7 1B,1S0
1otal SS0,7L^ SL^,SS7
On demand L7S,S9Z L^1,L70
p to Z months L^9,0ZZ LSZ,SSZ
lrom Z months to 1 year L^,BZ7 9,1Z1
lrom 1 to S years Z,SBL Z,Z^9
Over S years 7,S79 7,Z^^
1otal SS0,7L^ SL^,SS7
L0 C++<./'03*/+'"%'"43-%$+./'?3+%'
On demand
p to Z months 9L,0ZB 11B,BSZ
lrom Z months to 1 year S9,Z0Z ZL,BZ^
lrom 1 to S years 10S,1LZ 7Z,S97
Over S years 10,ZB^ 9,BZS
1otal L77,B^B LZS,119
L1 (%,.-'&$"0$&$%$.+'
Negatlve lalr value ol derlvatlves 1^L,ZBB 1^9,LS^
Other llabllltles 11Z,Z00 BZ,LS0
1otal LSS,SBB LZL,S0^
!"#$% !&'()%*$&+()*&,-.&
Note [OKr mJ
LL !"#$%&'()*+&,&+#*
Bubordlnated debt conslsts ol llabllltles ln the lorm ol subordlnated loan capltal and hybrld core capltal whlch, ln the event ol Oanske
Eank!s voluntary or compulsory wlndlngup, wlll not be repald untll alter the clalms ol ordlnary credltors have been met. Bubordlnated
debt ls lncluded ln the capltal base, etc. ln accordance wlth sectlons 1L^, 1ZL and 1ZS ol the Oanlsh llnanclal Euslness Act.
lrlnclpal lnterest Pedemptlon L00S L00S
Currency [mllllonJ rate lssued Maturlty prlce [OKr mJ [OKr mJ
Pedeemed loans 1,B97
Jl/ 10,000 S.Z00 199L 1^.09.L010 100 ^7S SZ7
BO S00 7.^00 1997 1S.0S.L010 100 L,BZ1 Z,1SL
LP 700 S.7S0 L001 LS.0Z.1011 100 S,L19 S,LLZ
LP ^00 S.B7S L00L LS.0Z.L01S 100 L,9BL L,9B^
LP S00 S.1LS L00L 1L.11.L01L 100 Z,7LB Z,7Z0
LP S00 ^.LS0 L00Z L0.0S.L01S 100 Z,7LB Z,7Z0
NOK 1,770 var. L00Z LS.0S.L01^ 100 1,S0L 1,SS^
GEl ZS0 S.Z7S L00Z L9.09.L0L1 100 Z,BBS Z,B10
NOK S00 var. L00Z 1S.0L.L01^ 100 ^SZ ^S7
BLK 7S0 var. L00^ LL.1L.L01Z 100 S19 S9S
LP 700 ^.100 L00S 1S.0Z.L01B 100 S,L19 S,LLZ
LP S00 var. L00S 09.09.L01Z 100 Z,7LB Z,7Z0
NOK SZS var. L00S LL.0Z.L01^ 100 ^B^ S00
Bubordlnated debt, excludlng hybrld core capltal Z^,9S^ Z7,L^Z
Hybrld core capltal
BO 7S0 S.91^ L00^ lerpetual 100 ^,L^S ^,7^Z
GEl 1S0 S.SSZ L00S lerpetual 100 1,SSS 1,SZZ
GEl S00 S.SB^ L00S lerpetual 100 S,SSL
1otal hybrld core capltal 11,^S^ S,Z7S
Nomlnal subordlnated debt ^S,^1B ^Z,S19
Hedglng ol lnterest rate rlsk at lalr value 9S 1,SZB
Holdlng ol own bonds L9Z 1,ZL0
1otal subordlnated debt ^S,0L9 ^Z,BZ7
lnterest, etc. on subordlnated debt added durlng the year break down as lollows
lnterest L,07S L,01L
Lxtraordlnary repayments 1,B97 L,7Z^
Lstabllshment and repayment costs LL Z9
Amount lncluded ln the capltal base at Oecember Z1 ^S,1LS ^L,ZL9
1he consolldated accounts [note ZLJ contaln addltlonal lnlormatlon about subordlnated debt and terms ol contract.
!"#$% !&'()%*$&+()*&,-.&
LZ -..+*.,&+/$.'*+&,).,.+0"%'*1
At the end ol L00S, Oanske Eank A/B had deposlted securltles worth OKrLLS,00Sm wlth Oanlsh and lnternatlonal clearlng centres,
etc. as securlty. ln L00S, the correspondlng amount was OKr197,LBLm.
Assets sold ln repo transactlons
Eonds at lalr value LZB,BSL 179,BBB
Bhares, etc. 19^ 1S
1otal LZ9,0^S 179,90Z
1otal securlty deposlted lor subsldlary undertaklngs S,^Z1 S,7LS
L^ 2$(*'(3+(*,4')#'4'*'+.
Owlng to lts slze and buslness volume, Oanske Eank A/B ls contlnually a party to varlous lawsults. 1he Eank does not expect the out
comes ol the cases pendlng to have any materlal ellect on lts llnanclal posltlon.
1he Eank ls olntly and severally llable lor the prloryear corporatlon tax ol companles that were olntly taxed belore January 1, L00S.
vlth ellect lrom January 1, L00S, the olnt taxatlon comprlses all Oanlsh group companles. 1he Eank manages the olnt taxatlon and
ls llable only lor the tax payable by the Eank ltsell and amounts recelved lrom subsldlary undertaklngs ln payment ol the olnt corpora
tlon tax. 1he Eank ls reglstered olntly wlth all slgnlllcant, whollyowned Oanlsh subsldlary undertaklngs lor llnanclal servlces employer
tax and VA1 lor whlch lt ls olntly and severally llable.
5")%)(*++.,)(&,$*6+%,4')#'4'*'+.,
Guarantees, etc.
llnanclal guarantees 1S,11S 1S,LB9
Mortgage llnance guarantees ^L,^B^ ^0,101
Peglstratlon and remortgaglng guarantees 1S,L^Z 1S,SZ7
Other guarantees 1B7,^1L 1BS,S09
1otal LS1,LSS LSB,^ZS
Other llabllltles
lrrevocable loan commltments shorter than 1 year 1^0,LSZ 9S,0L9
lrrevocable loan commltments longer than 1 year 10B,L^1 9S,L1S
Bales wlth an optlon to repurchase
Other obllgatlons 7L^ B17
1otal L^9,L1B 19L,0S1
1he consolldated accounts contaln addltlonal lnlormatlon about contlngent llabllltles.
LS 7+4)*+&,/)%*'+.,
Assoclated Bubsldlary
undertaklngs undertaklngs
L00S L00S L00S L00S
Assets
Oue lrom credlt lnstltutlons and central banks 1,90S ZZ 10B,LSS 1L0,7LL
Loans, advances and other amounts due at amortlsed cost 100 ^L B,190 B,1BB
Eonds at lalr value 10Z,0L0 7S,S09
1otal L,00S 7S L19,^7S L0^,^19
Llabllltles
Oue to credlt lnstltutlons and central banks L,ZZ^ 7S1 ^^,Z19 LB,^BB
Oeposlts and other amounts due 1ZB 17 Z10 1,099
lssued bonds 99,BL7 101,SZS
1otal L,^7L 7SB 1^^,^SS 1Z1,1LL
!"#$% !&'()%*$&+()*&,-.&
Note [OKr mJ
LS Oanske Eank A/B acts as the bank ol lts subsldlary undertaklngs. layment servlces, tradlng ln securltles, lnvestment and placement
[cont!dJ ol surplus llquldlty and provlslon ol shortterm and longterm llnanclng are the prlmary servlces provlded by Oanske Eank A/B. ln
addltlon, Oanske Eank A/B and lts subsldlary undertaklngs recelve lnterest on holdlngs, ll any, ol llsted bonds lssued by Pealkredlt
Oanmark A/B. 1he accounts ol the Oanske Eank Group specllles the Group!s holdlngs ol own mortgage bonds.
Moreover, Oanske Eank A/B handles l1 operatlons and development, HP admlnlstratlon, loglstlcs, marketlng and other admlnlstratlve
actlvltles lor lts subsldlary undertaklngs. 1he Eank recelved a lee ol OKr1,L^7m lor lts servlces ln L00S [L00S. OKr1,00SmJ.
ln L00S, Oanske Eank A/B entered lnto the lollowlng slgnlllcant transactlons wlth lts subsldlary undertaklngs.
! Bale ol lnsurance pollcles and portlollo management on behall ol the Oanlca group lor whlch Oanske Eank A/B recelved a lee ol
OKrL0^m [L00S. OKrL0ZmJ.
! Arrangement ol mortgage loans and provlslon ol guarantees on behall ol the Pealkredlt Oanmark group lor whlch Oanske Eank
A/B recelved a lee ol OKr7S7m [L00S. OKrB11mJ.
! Pelerral ol customers and property assessments by Pealkredlt Oanmark A/B lor whlch Oanske Eank A/B pald a lee ol OKr11Sm
[L00S. OKr1Z9mJ.
! ln L00S, Oanske Eank A/B sold real property, lncludlng owneroccupled llats, ln the amount ol OKrBSSm to Oantop Lendomme
ApB and ONl Lendomme A/B, whlch are both assoclated undertaklngs ol Oanlca Lendomsselskab A/B.
1ransactlons wlth related partles, lncludlng subsldlary undertaklngs, are settled on market terms or on a costrelmbursement basls.
1he consolldated accounts lnclude addltlonal lnlormatlon about transactlons wlth related partles.
LS 8$)(.9,+*0:,*$,*6+,;)()3+;+(*,
Loans, advances, loan commltments,
pledges, suretles and guarantees Avg. lnterest rate L00S Avg. lnterest rate L00S L00S L00S
Lxecutlve Eoard ^.B Z
Eoard ol Olrectors S.S S.S 7Z LZ
L7 <+&3'(3,$=,%'.>,
L00S L00S
Carrylng Amortlsed/ Carrylng Amortlsed/
amount notlonal value amount notlonal value
Assets
Loans and advances S9,1BZ S9,S7B 97,LBS 9S,101
llnanclal lnstruments hedglng lnterest rate rlsk
Oerlvatlves ZB9 SS,ZLS 7B^ 9L,S7^
Llabllltles
Oeposlts 7,ZZ0 7,ZZ^ ^0,1Z0 Z9,9SB
Oue to credlt lnstltutlons ZL7,L17 ZL7,Z91 LSL,79^ LSL,BS7
lssued bonds L77,B^B L77,719 LZ^,91^ LZS,11B
Bubordlnated debt ^S,0L9 ^S,0SZ ^Z,BZ7 ^L,L99
1otal SSB,^L^ SSB,^97 S71,S7S S70,L^L
llnanclal lnstruments hedglng lnterest rate rlsk
Oerlvatlves 1,SBB SS7,7S0 L,S9S ^BS,^0L
1he consolldated accounts lnclude addltlonal lnlormatlon about the hedglng ol rlsk.
!"#$%&!&'()%*$&+()*&,-.&

[OKr mJ , L00S L00S L00^ L00Z L00L
!
<?5<8?5<@!,
Net lnterest and lee lncome 1B,^Z1 L0,^S1 1B,BZL 19,9L7 1B,99^
Value adustments ^,1S^ 1SS SS ^Z9 1SS
Btall costs and admlnlstratlve expenses 11,L97 11,1^^ 11,^ZS 11,^L0 11,S^7
lmpalrment charges lor loans and advances, etc. L07 1,1SL S0L 1,^Z0 1,Z1L
lncome lrom assoclated
and subsldlary undertaklngs S,S71 ^,90B ^,^Z9 S,9ZB ^,SLB
Net prollt lor the year 1Z,9S0 1L,L09 B,9SB 9,LBS B,L^L
Loans and advances B1B,SZ0 S^1,Z07 S09,0S1 ^^L,^LB ^0^,ZB7
Bhareholders' equlty 9S,S09 7^,SZB S7,L7S S0,^S1 S0,Z19
1otal assets 1,BS9,S07 1,SZB,1LS 1,Z7B,9SL 1,1B7,S0S 1,1Z9,7^L
!
7-@?A!,
Bolvency ratlo, % 1S.L 1S.L 1^.S 1S.B 1S.0
Core [tler 1J capltal ratlo, % 1L.L 10.7 11.1 11.1 10.9
Peturn on equlty belore tax, % L0.0 L1.B 1S.S L1.S 19.0
Peturn on equlty alter tax, % 1S.Z 17.L 1Z.L 1S.^ 1^.0
Cost/lncome ratlo, OKr L.ZS L.ZS 1.B^ 1.9B 1.BZ
lnterest rate rlsk, % 0.^ 0.0 0.S L.L 1.S
lorelgn exchange posltlon, % 0.S 1.S L.L B.L Z.7
lorelgn exchange rlsk, % 0.0 0.0 0.0 0.1 0.1
Loans, advances and lmpalrment charges as % ol deposlts 1ZS.B 11^.7 10S.S 99.S 10^.9
Gearlng ol loans and advances B.S B.S 7.S 7.Z S.7
Growth ln loans and advances, % L7.S LS.0 1^.1 9.^ 1.7
Lxcess cover relatlve to the statutory llquldlty requlrement, % 1Z7.0 1S0.L 1B^.0 L1S.L 1BL.1
1otal amount ol large exposures, % 1S1.S 17Z.B 1S1.L 1^9.S 1^0.0
lmpalrment ratlo, % 0.0 0.1 0.0 0.L 0.L
Larnlngs per share, OKr L1.L 1B.S 1L.9 1L.9 11.Z
Eook value per share, OKr 1^0 117 100 BS BL
lroposed dlvldend per share, OKr 7.7S 10.00 7.BS S.SS ^.7S
Bhare prlce at Oecember Z1/earnlngs per share 11.B 11.9 1L.B 10.B 10.^
Bhare prlce at Oecember Z1/book value per share 1.7B 1.B9 1.S7 1.SZ 1.^Z

lor L00^L00S, ltems are valued ln accordance wlth the executlve order on llnanclal reports lssued by the Oanlsh lBA on November L1,
L00S. lor L00LL00Z, ltems are valued ln accordance wlth the rules ln lorce at that tlme. 1he ratlos are dellned ln the executlve order on
llnanclal reports ol credlt lnstltutlons, etc. lssued by the Oanlsh lBA.

!"#$%&!&'()%*$&+()*&,-.&

[OKr mJ ,
!
5%$"/,6$4&'(3.,)(&,"(&+%*)>'(3.!
Bhare capltal Net prollt Bhareholders' equlty Bhare capltal
[thousandsJ [OKr mJ [OKr mJ [%J
Oanske Eank A/B, Copenhagen OKK S,9BB,0^Z 1Z,9S0 9S,S09

2%+&'*,'(.*'*"*'$(.,
Pealkredlt Oanmark A/B, Copenhagen OKK SZ0,000 L,LSS ZZ,107 100
OOE lnvest Llmlted, London GEl 1ZZ,LLZ LZ 7S 100
Northern Eank Llmlted, Eellast GEl 9^,000 Z0B Z,ZLZ 100
Natlonal lrlsh Eank Llmlted, Oublln LP B^,7BS Z^S Z,0BS 100
OOE lokus lnvest AB, 1rondhelm NOK L,0S0,000 9SB 7,1LL 100
Oanske Eank lnternatlonal B.A., Luxembourg LP 90,SLS ZZ0 1,ZS7 100
Oanske Eank lolska B.A., varzaw lLN ^L,LLS LZ ^1S 100
OOE lnvest AE, Llnkplng BLK 100,000 Z1 B77 100

?(."%)(0+,$/+%)*'$(.,
lorslkrlngsselskabet Oanlca, Bkadelorslkrlngsaktleselskab
al 1999, Copenhagen OKK 1,000,000 1,L1S 1S,S7^ 100

?(B+.*;+(*,$/+%)*'$(.9,+*0:,
Oanske Markets lnc., Oelaware BO L,000 Z L^ 100
Nordanla llnans A/B, Elrkerod OKK 10,000 17B B7S 100
Oanske Corporatlon, Oelaware BO ^ 1 100
Oanske lrlvate Lqulty A/B, Copenhagen OKK S,000 Z0 SZ 100
Oanske Capltal llnland Oy, Helslnkl LP 1,000 ^1 B1 100
KHE Vl A/B, Copenhagen OKK 111,700 ^7 LZZ 100
Medlcon Valley Capltal ll K/B, Copenhagen BLK S^,17B ^ L1 99
Lendomsaktleselskabet VlrumVang, Copenhagen OKK L,000 1B 17L 100
Oanske lund llc., Oublln LP Z00 100
1he company has S lunds

A/+%)*'$(.,0$(.$4'&)*+&,$(,),/%$,%)*),#).'.,
Oanmarks Bklbskredlt A/B OKK ZZZ,ZZZ 79 L,1S^ L^
LP Pealkredlt A/B OKK 1S0,000 1L 1,077 Z1
,

This Annual Report is available at
www.danskebank.com
Photos: Morten Larsen, Scanpix and Gettyimages
Printed by: Fr. G. Knudtzons Bogtrykkeri A/S
Danske Bank A/S
Holmens Kanal 2-12
DK-1092 Kbenhavn K
Tel. +45 33 44 00 00
Danske Bank A/S
Holmens Kanal 212
DK - 1092 Copenhagen K
Tel. +45 33 44 00 00
www.danskebank.com
CVR-nr. 6112 62 28 Kbenhavn

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An n u a l Re p o r t 2006

2 DANSKE BANK ANNUAL REPORT 2006

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