Danske Bank Plc Group`s January - June 2017:
Solid performance across businesses
Danske Bank Finland`s* core business continued to perform solidly in January-June 2017. The Finnish economy grew faster than previously forecasted, and the Bank`s lending increased to both personal and corporate customers. Lending to small and medium sized corporate customers increased by 6 %, with healthy demand across business sectors. Consumer interest in mortgages continued record high, and the volume of new granted mortgages grew by 13 % compared to previous year.
Total income for Danske Bank`s operations in Finland for January - June 2017 amounted to EUR 324.8 million (EUR 316.9 million in H1 2016), up 3 % compared to previous year. The growth was mainly due to increase in net interest income. Operating expenses were flat, and profit before taxes increased by 6 % to EUR 138.7 million.
"During the first half of the year we saw continued solid performance across business units. Net interest income development is on a good track, driven by steady growth in lending in combination with lower funding costs" said Risto Tornivaara, CEO of Danske Bank Plc.
Mobile payments gained good traction during the period. MobilePay downloads increased with more than 50% to over 500.000. MobilePay`s position as Finland`s leading mobile payment solution was further strengthened by the launch of Finland`s first small business mobile payment solution and new payment provider partnership agreements which brought MobilePay to over 10.000 online shops.
*Includes Danske Bank Plc Group and the Helsinki Branch of Danske Bank A/S.
Financial Highlights of Danske Bank`s operations in Finland
In addition to Danske Bank Plc, Danske Bank`s operations in Finland include the Helsinki branch of Danske Bank A/S.
| EUR millions | H1 2017 | H1 2016 | Change | YTD 2016 |
| Net interest income | 178.1 | 161.3 | 10.4% | 331.5 |
| Net fee income | 126.8 | 132.5 | -4.3% | 257.8 |
| Net trading income | 13.1 | 17.9 | -26.8% | 16.4 |
| Other income | 6.8 | 5.2 | 30.4% | 12.2 |
| Total income | 324.8 | 316.9 | 2.5% | 617.9 |
| Operating expenses | 184.1 | 183.5 | 0.3% | 375.4 |
| Profit before loan impairment charges | 140.7 | 133.4 | 5.5% | 242.5 |
| Loan impairment charges | 2.0 | 2.6 | -22.6% | 1.3 |
| Profit before tax | 138.7 | 130.8 | 6.0% | 241.2 |
| C/I-ratio, % | 56.7% | 57.9% | -1.2% | 60.8% |
| Loans | 22 102.5 | 21 552.0 | 2.6% | 21 397.3 |
| Deposits | 20 269.5 | 19 035.1 | 6.5% | 18 576.8 |
Danske Bank Plc Group`s Financial Highlights
| EUR millions | H1 2017 | H1 2016 | Change | YDT 2016 |
| Net interest income | 158.1 | 145.8 | 8.4% | 296.1 |
| Net fee income | 113.8 | 116.4 | -2.2% | 230.3 |
| Net trading income | 12.0 | 16.8 | -28.6% | 14.4 |
| Other income | 11.9 | 10.1 | 17.7% | 22.4 |
| Total income | 295.8 | 289.1 | 2.3% | 563.1 |
| Operating expenses | 173.5 | 170.8 | 1.6% | 351.7 |
| Profit before loan impairment charges | 122.3 | 118.3 | 3.3% | 211.5 |
| Loan impairment charges | 2.1 | 2.6 | -19.6% | 1.2 |
| Profit before tax | 120.2 | 115.7 | 3.9% | 210.3 |
| C/I-ratio, % | 58.7% | 59.2% | -0.5% | 62.4% |
| ROE, % | 7.5% | 7.5% | 0.0% | 6.7% |
| Total capital ratio, % * | 21.8% | 19.5% | 2.3% | 20.0% |
| Common equity tier 1 capital ratio, % * | 21.8% | 18.6% | 3.2% | 19.2% |
| FTE at the end of period | 1 588 | 1 736 | -8.5% | 1 594 |
| Loans | 20 912.3 | 20 309.2 | 3.0% | 20 235.1 |
| Deposits | 17 700.8 | 17 065.2 | 3.7% | 16 635.5 |
| Total equity | 2 562.0 | 2 550.3 | 0.5% | 2 626.2 |
| Total balance sheet | 29 827.0 | 30 174.6 | -1.2% | 28 962.1 |
*Danske Bank Plc`s profit after taxes for January-June is not included in Tier 1 distributable capital in solvency calculations at the end of June 2017.