PresentationClaus JensenHead of Investor Relations Good afternoon, and welcome to Danske Bank's Q4 2025 Pre-Close Call. My name is Claus Ingar Jensen and I'm Head of Investor Relations. With me, I have Olav Jørgensen and Nicolai Tvernø from our IR team. Please note that this call is being recorded for compliance reasons, and the script used for this call will be published on the Investor Relations website after the call. Given that we conduct this call via Teams, please be aware that if you want to ask ques ...

Danske Bank Q4 2025 Pre-Close Call Summary Company Overview - **Company**: Danske Bank (OTCPK:DNKE.Y) - **Date of Call**: January 08, 2026 Key Points Macroeconomic Environment - Euro area growth prospects for 2025 are better than expected despite tariff announcements and geopolitical uncertainty [2] - Nordic economies are expected to improve in 2026, driven by rising real incomes and investments [2] - Danish economy shows solid Q4 performance with low unemployment and growing real wages, but low consumer confidence may dampen spending [3] Financial Performance - **Net Interest Income (NII)**: A non-recurring benefit of approximately DKK 0.2 billion is expected to be booked in Q4 due to tax assessments [3] - **Central Bank Policy Rates**: ECB expected to maintain a policy rate of 2% in 2026; Riksbanken and Norway's bank also expected to keep rates unchanged [4] - **Lending Volumes**: Overall credit demand remained stable in Q4, with a day effect estimated at DKK 65-DKK 70 million [4] Currency and Funding - Currency fluctuations noted: Swedish krona appreciated by 2% against Danish krona; Norwegian krona depreciated by 1% [5] - Wholesale funding issuance reached DKK 90 billion, exceeding the full-year plan of DKK 60 billion-DKK 80 billion [5] Fee Income and Trading - Fee income diversified, benefiting from healthy corporate activity; performance fees in Q4 2024 were DKK 0.7 billion [7] - Trading income expected to be lower due to typical year-end customer activity [8] Insurance Activities - A net negative P&L effect of around DKK 200 million expected in Q4 due to model calibration for health and accident claims [9] - Full-year income expectations for normalized net insurance income revised below guidance of DKK 1.4 billion-DKK 1.6 billion [9] Costs and Impairments - Total costs for the year expected to be just shy of DKK 26 billion; loan impairment guidance remains at no more than DKK 600 million [10] Capital and Risk Management - Temporary CT1 reduction of around 40 basis points expected to continue reflecting in Q4 numbers [11] - Market risk remains subject to volatility; growing lending volumes may increase credit risk [12] Regulatory and Political Environment - Discussions around potential fee gaps and overcharging by banks noted, especially in light of upcoming elections in 2026 [17][18] - No immediate decisions on government proposals regarding CRE risk rates in Denmark [15] Upcoming Events - Silent period begins on January 15; annual report to be published on February 5, 2026 [13] Additional Insights - Pre-funding for 2026 wholesale funding is a standard procedure to capitalize on market opportunities [19]