Danske Bank A/S

Strong Q3 performance; guidance narrowed (good) - Q3 record RoE 15.1% and cost-to-income 43.9%, tracking full-year target <45%. - Core income grew 9% YoY with disciplined costs and strong credit quality. - Full-year net profit guidance narrowed to DKK 24–25bn, driven by improved outlook for impairments (risk cost easing).

Credit quality improving; impairment outlook cut (good / “surprising” vs prior) - Q3 net reversals of impairments: DKK +200m; YTD impairment charges only DKK 65m. - Full-year impairment guidance revised to no higher than DKK 600m (from ~DKK 1bn previously), implying ~3 bps cost of risk. - Still prudent: scenarios include geopolitical risk, trade tensions, and market volatility, with overlays (incl. agriculture political tail risks).

Net interest income (NII) resilient; rate-sensitivity updated (mixed: good momentum, but earnings can be volatile) - NII up 4% YoY; Q3 improved deposit margins and resilient volumes; structural hedge described as a stabilizer. - Reaffirmed NII expectation: slightly above DKK 38bn for FY 2026 (based on current market-implied rates; no further hike until late 2026). - Updated rate sensitivity (all else equal): a +25 bps adds about +DKK 400m (yr1), +DKK 350m (yr2), +DKK 100m (yr3); a -25 bps impacts roughly -DKK 550m, -DKK 250m, -DKK 100m across the same horizon.